Man 1 Mar 2013 The Guardian Nigeria by The Guardian Newspaper

From Abba Anwar, Kano TOTAL of 14 suspected A members of Boko Haram sect were killed at Layin ‘Yan Awaki, Unguwa Uku, in the Kano metropolis by the Joint Military Task Force (JTF) yesterday. It arrested other sus-

Soldiers kill 14 Boko Haram suspects in Kano, arrest others pects. In the early hours of yesterday, military men who were doing their normal cordonand-search at Unguwa Uku were shot at by gunmen. The

soldiers retaliated immediately, which led to the killing of the 14 suspects and arrest of others. The JTF spokesperson, Captain Ikedichi Iweha who dis-

cally-fabricated anti-machine guns. Two houses believed to be the hide-outs of the group were razed down by the JTF men. The Commandant of the 3rd

closed this to reporters, noted that a Golf car loaded with bombs was also intercepted. Some of the items recovered were 14 AK 47, many improvised explosive devices and lo-

Mechanised Brigade, Bukavu, Brig.-Gen. Iliasu Abba, visited the scene of the fight where the two houses were razed down. Members of the public were urged again to always support the authorities with useful information.

TheGuardian Conscience, Nurtured by Truth

Monday, April 1, 2013

Vol. 29, No. 12,513

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At Easter, Jonathan says no more outage in 2014 • Pope prays for peace in Nigeria, others •Govs, Adeboye, others urge patience, love • CAN cancels rally over insecurity in Jos From Mohammed Abubakar (Abuja), Bola Olajuwon, Chris Irekamba, Sunday Aikulola (Lagos), Isa Abdulsalami (Jos), Kelvin Ebiri (Port Harcourt) and Charles Ogugbuaja (Owerri) RESIDENT Goodluck P Jonathan yesterday re-stated his optimism that Nigeria would overcome its challenges, especially in the areas of erratic supply of electricity and insecurity caused by terrorism. He declared that outage in the country would be a thing of the past in 2014 because efforts were being made to achieve this target. The President’s remarks were contained in his speech during the Easter Sunday service at Our Saviour’s Church, Tafawa Balewa Square (TBS), Lagos. His words: “We have chalGeneral Overseer, The Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye (right); his wife, Folu; Mrs. Ifeanyi Adefarasin; and her husband/Founder, House on the Rock Church, Pastor Paul Adefarasin, during the House on the Rock Church Special Easter Sunday Service in Lagos… yesterday. PHOTO: FEMI ADEBESIN-KUTI

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Northern Senators, Reps okay deal on PIB MAJOR deal that may pave A the way for the passage of the Petroleum Industry Bill

• Independent agency to explore oil in the North • NNPC to lose oil exploration roles • Uncertainty trails corporation, Chinese $28.5b refinery projects

(PIB) has been struck in the two chambers of the National Assembly in favour of legislators from the northern part of

the country. Besides, it was learnt at the weekend that the proposed

From Azimazi Momoh Jimoh (Abuja) and Roseline Okere (Lagos)

construction of three refineries in Lagos, Kogi and Bayelsa states by the China State Con-

struction Engineering Corporation (CSCEC) Limited and Nigerian National Petroleum

Corporation (NNPC) is facing financial challenges. The new PIB deal which drew support from 58 members of the Northern Senators’ Forum and Members of the House of Representatives from the North involved an expansion of the bill to provide for the creation of an in-

dependent agency charged with the responsibility of vigorously looking out for petroleum oil in the North and other parts of the country beyond the Niger Delta region. A key problem that has been confronting the PIB in the two chambers is the suspicion that the legislative document

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THE GUARDIAN, Monday, April 1, 2013

2 NEWS

At Easter, govs, Adeboye urge patience, love, peace CONTINUED FROM PAGE 1 lenges as a nation, especially these days of terrorism. We are working very hard to make sure that terrorism does not divide Nigeria. “We have challenges as a nation but we must go where we want to go. As a president I promise I will do my best. We promise that we will stabilise power in this country. God willing, next year, they will not take light again, “ he said. Jonathan observed that the effects of terrorist attacks in the country could have been more devastating but for the fervent prayers of Nigerians for the peace and stability. He urged that this zeal should not be compromised. Jonathan, who also noted that Jesus Christ came to the world at a critical time of human existence, further urged Christians to imbibe the teachings of the Lord centred on love, peace and unity. Earlier in his sermon, the Vicar, Venerable Igein Isemede, spoke on the death and resurrection of Jesus Christ, stating that the facts were there for all to see. Accordingly, he urged Christians to purge their hearts of any wrongdoing as the death and resurrection of their Saviour had atoned for them. Also, in his Easter message, Jonathan felicitated with Christians. According to him, irrespective of religion or faith, all holidays provide a fresh opportunity to establish stronger bonds with families, friends and all those around for more enduring, harmonious and beneficial relationships. He said: “As we celebrate this

year’s Easter therefore, I urge all Nigerians to rededicate themselves to living in peace and oneness with all members of their communities no matter their ethnicity, religious beliefs or places of origin. “By now, it ought to be an accepted fact amongst us that our immense potential for greatness in the comity of nations derives in the main from our collective strength as a country of close to 170 million people and the acclaimed richness of our diverse human resources and natural endowments.” But he said that to successfully achieve the vision of becoming one of the most dominant nations on the global stage in the shortest possible time, Nigerians must stay together as a people and continue to effectively resist by all possible means, the evil machinations of global terrorists and their misguided domestic accomplices who seek to provoke turmoil, hatred and harmful divisions. Also, Pope Francis prayed for peace in Nigeria, “political solution” for crisis in Syria and “reconciliation” on the Korean peninsula in his first Easter Sunday message in front of a huge crowd in St. Peter’s Square. Latin America’s first pontiff issued an appeal for hostages held by militants in Nigeria and condemned human trafficking as “the most extensive form of slavery in this 21st century.” Francis also prayed for Nigeria “where great numbers of people, including children, are held hostage by terrorist

groups” - an apparent reference to a French family kidnapped in Cameroun and believed held by the Nigerian group, Boko Haram. The pope delivered his “Urbi et Orbi” blessing to Rome and the world from the same balcony of St. Peter’s Basilica where he made his first appearance after his momentous election to the papacy this month. The Plateau State Chapter of the Christian Association of Nigeria (CAN) yesterday abandoned the Easter Sunday rally scheduled to take place in the capital, Jos over alleged fear of violence. Journalists gathered that the Church of Christ in Nation (COCIN), advised its followers to stay away from the Easter

rally billed for the Rwang Pam stadium in the heart of the city. COCIN, which has its headquarters in the state, was on February 26, last year hit by some group of suicide bombers, which left behind scores of deaths and injuries with property destroyed at the premises of the church. During his pastoral greetings at the Easter Sunday English service, Rev. Alfred Daspan of the COCIN Nasarawa Gwom announced that members of the congregation had been advised not to attend any rally during the Easter celebration. House of Representatives Speaker Aminu Tambuwal called for mutual respect among adherents of various

faiths, saying this was the only guarantee for peaceful coexistence among different religions in the country. In his Easter message issued in Abuja yesterday, he urged all Nigerians to unite in confronting security threats and other development challenges facing the nation. The General Overseer of The Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye, urged Christians to always exercise patience if they want their prayers to be answered by God. Speaking at an Easter programme organised by House on the Rock Church in Lagos yesterday, he said the ways of God were different from those of men and this may sometimes hinder response

to requests instantly. But according to him, because God has not answered one’s request does not mean he has abandoned one. Adeboye further said Joseph in the Bible was a man of destiny from his childhood but because of patience he was able to overcome his challenges and emerge victorious. Governors Chibuike Amaechi (Rivers State), Godswill Akpabio (Akwa Ibom), Rochas Okorocha (Imo) and Theodore Orji (Abia) as well as a former Chairman of the Senate Committee on Appropriations, Senator Iyiola Omisore, also prayed for peaceful co-existence, unity and progress of the nation.

Mrs. Iyabo Ogen (left); her husband, Prof. Olukoya Ogen; former Ondo State Commissioner for Information, Eddy Olafeso; Editor, The Guardian, Martins Oloja and his wife, Helen, during the Ikale 2013 Distinguished Professional and Academic Award for Excellence to Ogen and Oloja at Okitipupa, Ondo State… at the weekend. PHOTO: AYODELE ADENIRAN

Uncertainty trails corporation, Chinese $28.5b refinery projects CONTINUED FROM PAGE 1

was scripted in favour of oilproducing regions in the Niger Delta, a belief that had created problems for the bill particularly among senators and members of the House of Representatives from the Northern part of the country. The clause that sought to give 10 per cent of profits in oil business to oil-producing communities had equally attracted vehement opposition from Northern legislators. A lawmaker from the North Eastern part of the country who has been part of the discussion that led to the brokering of the deal said: “The crux of the deal is that with increased oil exploration activities in other parts of the country particularly in the North, such largesse for oilcommunities producing would attract less criticism since it would eventually be extended to other areas where found.” is oil At the end of several meetings and consultations on how the PIB could be saved and passed without hurting feelings, it was resolved among Northern legislators in the two chambers that a separate bill be sponsored to make provision for extensive exploration of oil in the Chad Basin, Bauchi Basin, Sokoto Rima River Basin, Benue River Basin and other parts of the North where petroleum was suspected to be existing in commercial

quantity. A key member of the Northern Senators’ Forum was tipped to sponsor the Oil Exploration Agency Bill, which would eventually be merged with the PIB that was sent to the Senate by President GoodJonathan. luck The Guardian learnt that the senator tipped to sponsor the Oil Exploration Agency Bill had already submitted a draft copy to the Senate Committee on Rules and Business for it to be properly scheduled for first reading after the Easter break. Senate President David Mark, had while inaugurating the Senate joint-committee that would process the bill last week hinted that it would give priority attention to oil exploration in the North. “We also want to explore oil in some other parts of the country and not only in the Niger Delta as we are doing now. “There is no reason why we can’t find oil in the Northern part of the country. The PIB bill is a bill to unite the country and not divide it. It will open up the industry so that we can attract new investors,” stated. Mark In the House of Representatives, a Northern legislator had already sponsored a similar bill, which had been consolidated with the PIB and referred to a committee for further legislative work. The House version of the Oil Exploration Bill was spon-

sored by Kaka Kyari Gujbawu State). Bornu (PDP, It is titled “A Bill for an Act to establish the National New Frontier Exploration Agency, for the purpose of exploration and production of oil and gas in the frontier of Chad Basin, Dahomey Basin, Imo Basin, Benue Trough, Bauchi Basin and Sokoto Basin and for other matters connected therewith.” Gujbawu told The Guardian that the absence of exploration in other parts of the country was making the country to lose a huge revenue, adding that the Nigerian National Petroleum Corporation (NNPC) was already over-loaded with so many responsibilities that it had little time to devote to oil exploration. He said: “My understanding is that in the Chad Basin, the Niger Republic has already explored oil and has started selling oil, the same with Chad Republic. As at last year, from available information, Chad Republic has shipped its 111th lots of crude oil to the market. “Chinese companies are assisting Chad and Niger and they started exploration activities on their side of the basin in less than a decade ago and they have succeeded. Why have we not succeeded?” “In the Dahomey Basin, today, Ghana has started exploration and is selling crude to the international market. We have parts of the Dahomey

basin in Lagos and Ogun states. Nigeria is yet to start exploration on those sides. “So, we feel that the NNPC’s activities in the Niger Delta are so enormous that its hands are full that they do not have much time or resources to commit to the other basins. And people like me and others feel that there is the need for the government to establish a robust, autonomous oil exploration company to cater for the exploration of oil and gas in the inland basins in the other five zones of the country, hence my bill,” Gujbawu said. In a bid to expand production capacities and reduce the nation’s dependence on imported oil and gas products, the NNPC signed a Memorandum of Understanding (MoU) for the construction of three Greenfield refineries and a petrochemical plant estimated to cost $28.5 billion by the CSCEC Limited in 2010. Three years after the MoU was signed, the project is yet to scale to the next stage, as CSCEC Limited is yet to come up with a concrete plan for the financing of the project. The refineries, which were supposed to be located in Lekki Free Trade Zone, Lagos; Bayelsa and Kogi states respectively were expected to refine a total of 750,000 barrels per day of the nation’s crude oil. The project was expected to take a minimum of $28.5 bil-

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THE GUARDIAN, Monday, April 1, 2013

News Nigerian female scientists win UNESCO awards HE first female Head of Department at the University of Nigeria, Nsukka (UNN), Francisca Okeke, and an environmental biochemist from the University of Port Harcourt, Choba, Eucharia Nwaichi, have bagged the UNESCO L’Oreal Women in Science Partnership award for their contributions to the advancement of scientific knowledge in the country. The awardees were recognised in the Laureates and Fellows categories in Paris. Okeke bagged the 2013 Laureate award for her significant contributions to the study on climate change. She was the only recipient in that category from Africa and the Arab nations and the third Nigerian Laureate since the UNESCO-L’Oreal partnership was established in 1998. The second Nigerian, Nwaichi, joined 15 other young scientists in the International Fellows category. She was recognised for her research on Scientific Solution to Environmental Pollution.

Nigeria records five new polio cases By Chukwuma Muanya IGERIA was the only country N in the world that reported new cases of Wild Polio Virus (WPV) last week - all type one WPV (WPV1) from Borno and Yobe states, bringing the total number of WPV cases for 2013 to 10. According to the latest edition of the Weekly Polio Update published by the Global Polio Eradication Initiative (GPEI), the total number of WPV cases for 2012 remains 122. One of the cases from Borno is the most recent in the country and had onset of paralysis on February 24. No new cases of Circulating Vaccine Derived Polio Vaccine type two (cVDPV2) were reported in the past week. The total number of cVDPV2 cases for 2012 remains eight. The most re-

• Govt plans next immunisation plus days for April, May • How to control, reduce blood pressure, by WHO cent cVDPV2 case had onset of paralysis on November 24, 2012, from Kebbi. However, to address the situation, the Federal Government, through the National Primary Health Care Development Agency (NPHCDA), has scheduled the next Immunisation Plus Days (IPDs) for April and May, even as the Expert Review Committee on Polio Eradication and Routine Immunisation (ERC) met last week in Abuja. More so, as some parents worry about the sheer number of vaccines babies typically receive, a new study finds no evidence that more vaccinations increase the risk of autism.

Looking at about 1,000 United States (U.S.) children with or without autism, researchers at the Centers for Disease Control and Prevention (CDC), in a study published yesterday in Lancet, found no connection between early childhood vaccinations and autism risk. Children with autism and those without had the same total exposure to vaccine antigens - the substances in vaccines that trigger the immune system to develop infectionfighting antibodies. The findings, which appear online on March 29 in the Journal of Pediatrics, cast further doubt on a link between vaccines and

autism spectrum disorders - a group of developmental brain disorders that impair a child’s ability to communicate and socialise. Meanwhile, with balanced diet, reduced salt intake, avoidance of harmful use of alcohol, regular physical activity, healthy body weight and avoidance of tobacco, the risk of developing high blood pressure could be significantly reduced, the World Health Organisation (WHO) said yesterday. The advice came on the heels of the World Health Day, which comes up on April 7. WHO said in a statement that communitybased programmes, including

Delta commissioner clears DFU on Keyamo ELTA State Commissioner D for Information, Mr. Chike Ogeah, has described as shocking and “uncharitable” the interpretations by a political group, Delta Force United (DFU), to his personal advice to rights activist, Mr. Festus Keyamo. Reacting to the said DFU response in some national dailies last Friday, his Special Assistant, Mr. Pius Mordi, said the opinion was only an aspect of “sundry national issues as well as those relating to Delta State” that Ogeah spoke on. Ogeah maintained that, “as a lawyer, he appreciates the works of Mr. Keyamo as well as his inalienable right to seek public office through election,” but “the advice to shun politics Pope Francis waves to the crowd from the papamobile after the Easter celebrations on St Peter’s square, Vatican … yesterday.. AFP PHOTO /VINCENZO PINTO was personal and borne out of the perception that having carved a niche for himself within the human rights community, he should continue to serve society better with his ad- From Muyiwa Adeyemi, Ado Ekiti ished or included in the litiga- tune arrangements on how to mean the major actors, those vocacy role.” tion. He asked President compel them to commence who took the larger chunk of RESIDENT of the Nigeria Goodluck Jonathan to forget the implementation. the N1.3 trillion oil subsidy Labour Congress (NLC), the muted oil subsidy removal Speaking with journalists in money. They have to be punComrade Abduwaheed Omar, despite the denial from the Ado Ekiti at the weekend dur- ished to save this nation from FG begins N4.3b road has criticised the Federal Presidency, saying that any at- ing his visit, the NLC president embarrassment.” projects in Abia Government for the unsatis- tempt to implement the pol- posited that those being tried On the proposed removal of factory manner in which the icy, either overtly or covertly, for alleged culpability in the oil oil subsidy, Omar alleged that From Gordi Udeajah, Umuahia cases of alleged oil subsidy would be resisted by Nigerians. subsidy scam were minor par- only N270 billion out of the ONSTITUENTS of Abia North scams were being handled in He also warned the states that takers in the sleaze. According N1.3 trillion declared to have Senatorial District gathered the court. were yet to implement the him, “Labour is dissatisfied been expended on subsidy in Omar expressed regrets that N18,000 minimum wage to with the way the alleged loot- 2011 was discovered to have at the weekend to witness the flag-off of the construction of major actors in the alleged brace up for a titanic battle ers were being prosecuted. been appropriated, while the “When you talk of punish- rest slipped into the hands of two major roads linking Ohafia looting of about N1.3 trillion oil with the workers, stating that and Arochukwu by the Federal subsidy fund were not pun- labour unions would soon fine ment for these looters, we the oil cabals. Government. The roads are the 37km AbribaOhafia-Nkporo-Osso Edda Road awarded to Dutum Nigeria Limited at N2.1 billion, and the his judgment in a suit insti- uation could not be included, “since negotiations have been 32km Ohafia-Arochukwu Road By Gbenga Salau tuted by the coalition following as this will conflict with Section concluded and the contract warded Beeks Limited at N2.2 FEDERAL High Court in the refusal of PHCN to disclose 15 (a) and (b) of the Freedom of awarded, the disclosure of the billion. Abuja has ordered the Flagging off the projects, the Power Holding Company of to it details of the contract Information Act 2011 as regards information sought cannot by third parties” and “a final con- any stretch of the imagination Minister of Works, Mike Nigeria (PHCN) to disclose to award. Though PHCN provided some tract award document could reasonably be expected to interOnolememen, said the Federal the Nigerian Contract Government considered the Monitoring Coalition details of of the contract records re- not be attached as a third party fere with any contractual or other negotiations of the conimpact the road would have on the documents on a World quested by the coalition after is involved.” It also argued that since the tractor.” the lives of the users in decid- Bank-supported contract for Ademola had granted the coalition leave to institute the suit, it coalition was not a party to the He noted that PHCN failed to ing on the contract. the supply and installation of Represented by the Director of High Voltage Distribution continued to withhold some of contract, PHCN was not satisfy the conditions stated in Works, South-East zone, Mr. Systems (HVDS) in Abuja, Lagos the information, including the obliged to release the docu- Section 15 (1) (b) of the Freedom bid evaluation report for the ments to it as it runs contrary of Information Act and thereGodwin Eghieye, he solicited and Ibadan. contract process and the final to law and could interfere with fore was not entitled to the exthe support of the communiAccording to a statement by emption contained in the secties in the area to enable the the coalition, Justice A.F.A contract award document. the contract process. PHCN explained to the coaliDisagreeing with PHCN, how- tion. He further held that contractors deliver the job by Ademola issued the order in tion that, “a copy of the bid eval- ever, Ademola ruled that, PHCN’s processes and written the June 2014 deadline.

NLC criticises govt’s handling of fuel subsidy scam

regular health check-ups and targeted health promotion campaigns on healthy lifestyle, have contributed to a reduction in blood pressure and strokes in Japan. According to WHO, the main trigger for stroke is raised blood pressure - or hypertension. Stroke or “brain attack” occurs when blood circulation to the brain fails. Lack of blood and the resulting lack of oxygen coupled with bleeding into the brain can kill brain cells. This, in turn, can lead to disability or death. Stroke risk increases with age, but strokes can - and do - occur at any adult age. WHO stated: “High blood pressure - also known as raised blood pressure or hypertension - increases the risk of heart attacks, strokes and kidney failure. If left uncontrolled, high blood pressure can also cause blindness, irregularities of the heartbeat and heart failure. “The risk of developing these complications is higher in the presence of other cardiovascular risk factors such as diabetes. More than one in three adults worldwide have high blood pressure. The proportion increases with age, from one in 10 people in their 20s and 30s to five in 10 people in their 50s.

ICPC begins fraud checks in MDAs e-systems From Abosede Musari, Abuja HE Independent Corrupt T Practices and other related offences Commission (ICPC) said it has started its check on egovernance system’s mode of paying salaries in order to fish out ghost workers in the payroll systems of Ministries, Departments and Agencies (MDAs) across the country. A statement from the commission’s Head of Media, Mr. Folu Olamiti, quoted the ICPC Chairman, Ekpo Nta, as saying in a recent television interview that their operatives were already in the fields visiting various banks to check whether the “person whose name is on the nominal roll and on the pay roll in a particular ministry is the same person receiving it in the bank.” According to Nta, “clever internet experts” could insert a fake name at the pay roll section, do biometrics, send it by e-payment to your bank and somebody else picks it up.” He informed that ICPC operatives were currently authenticating the nominal and pay rolls in some banks since cashiers “now pay directly to the banks.”

Court orders PHCN to disclose contract details A

arguments lacked substance and were “frivolous, time-wasting and an abuse of court process, as they have no justification in denying the applicant the documents sought.” He, therefore, granted the application for a mandatory order compelling PHCN to immediately release to the coalition all contract documents so sought. He as well ordered PHCN and the AttorneyGeneral of the Federation to jointly and severally pay N20,000 in costs to the coalition.

THE GUARDIAN, Monday, April 1, 2013

NEWS | 5

Ekiti ACN, PDP trade blame as one dies in clash From Muyiwa Adeyemi, Ado-Ekiti HERE are claims and countT er-claims by the Peoples Democratic Party (PDP) and Action Congress of Nigeria (ACN) over the killing of Mr. Ayodele Jeje, believed to be a member of the PDP in Erijiyan in Ekiti West Local Council of state. the The PDP alleged that ACN members attacked their members while holding a meeting in a section of the town. It was also alleged that the mother of another member of the PDP in the community, Mr. Segun Adewumi, as well as Adewumi’s younger brother were also shot and injured in the violent clash between party men and they are now receiving treatment in an undisclosed hospital in AdoEkiti. However, the ACN has denied its members’ involvement, saying it was the case of a group in the state chapter of another. attacking PDP Ekiti State Chapter of the PDP in a statement by its chairMakanjuola Mr. man, Ogundipe, alleged that Jeje, Adewumi and others were attacked at a meeting convened to fine-tune their preparation “for a programme where Mr. Segun Adewumi wants to lead over 1,000 members of PDP.” to ACN Ogundipe, in the statement signed on his behalf by Femi Omolusi, said “many were injured and cars were damaged,” with sources saying that a leader of the PDP in the Clement Senator state, Awoyelu, was not spared as his cars were vandalised in the attack.

The Ekiti PDP chairman called on the Inspector-General of Police (IGP), Moto Abubakar, hammed intervene and also urged the state Commissioner of Police (CP), Sotonye Wakama, to bring the perpetrators to book. But the ACN in reaction denied that its members attacked the PDP members, saying it was rather a clash between members of two factions of the PDP in the area. Denying the incident, Chairman of the ACN in Ekiti State, Chief Olajide Awe who hails from the community, said it had nothing to do with his party, claiming that the buildup to the crisis had started since Thursday when some PDP members who belong to a former governor’s group clashed with members of another group in the party over a planned rally by the former community. the in According to Awe, situation in the community had been tensed since Thursday following the arrival of Chief Bolu Adewumi, who he said was the financier of the group and his younger brother, Mr. Segun Adewumi, who co-ordinates the affairs of the group. The ACN chairman denied that Segun Adewumi was a former member of his party. He however, confirmed that Adewumi had once indicated interest to contest for the House of Assembly under the ACN in the 2011 general election, claiming that “since he was not allowed to contest based on the fact that he is still a serving civil servant in Lagos State, he has not been working with the ACN in the town.”

Former Commonwealth Secretary-General, Emeka Anyaoku (left); Osun State Governor Rauf Aregbesola; Chief Adekunle Kasunmu; former Minister of Education, Oby Ezekwesili and Action Congress of Nigeria (ACN) National Leader, Senator Bola Tinubu, during the thanksgiving service to mark Anyaoku’s 80th birthday and 50th marriage anniversary at St. Andrew’s Church, Obosi, Anambra State… at the weekend. PHOTO: OSENI YUSUF

Independent agency to explore oil in the North CONTINUED FROM PAGE 2 lion with CSCEC contributing 80 per cent of the $11.3 billion equity finance through the Industrial and Commercial of China. The Guardian learnt at the weekend that the Chinese firm was not able to get the Federal Government’s commitment to issue a sovereign guarantee on the loan for financing from Industrial and Commercial Bank of China. Nigeria’s oil sector is oriented largely towards the export of crude oil, with the country’s refineries hardly in a position to meet the local demand for refined petroleum products. A more substantial promise came in 2010, when NNPC and CSCEC signed a Memorandum of Understanding (MoU) for a $28.5 billion project to construct three refineries, a well as a petrochemical plants. The refineries, which were to be situated in the Lagos Lekki Free Trade Zone, Bayelsa and Kogi states, were expected to begin in 2017 and have a capacity to produce 250,000 bpd each. It was learnt that plans were subsequently scaled back, reducing the total to 400,000 bpd, that is 200,000 for Lagos and 100,000 bpd each for the other two. The Industrial and Commercial Bank of China was to provide 80 per cent of the $11.3 billion equity finance, with NNPC supplying the remainder. Construction was initially set to begin in May 2011, but the date was moved to July

2012. A top official of NNPC told The Guardian yesterday that CSCEC was still talking with the corporation on the project. According to him, though a MoU was signed between CSCEC and NNPC, an agreement was not reached concerning the financing of the project and they were to furnish the corporation on how to fund it. He disclosed that the Chinese firm demanded a sovereign guarantee, which NNPC refused to grant the firm, and that this was one of the reasons for the delay of the project. He stated: “When we signed the MoU in 2010, the Chinese firm was to get back to us on how to finance it. They later came with the demand for sovereign guarantee but we refused to grant their request. This is because we believe that both parties should be ready to either gain or lose. We told them the Federal Government would provide an enabling environment for them to operate. “They also asked for equity swap, and we were not able to reach a concrete agreement with the Chinese firm. “But NNPC had approached the governors of the states, which the refineries were expected to be sited. The Lagos State governor gave us land to build the refinery. The Bayelsa State government also made land available to us. We could not reach an agreement with the Kogi State government concerning the issue of land.”

Chaplain to Prelate, Very Rev. Dan Agbese (left); Bishop of Tinubu Diocese, Rt. Rev. Sunday Oluyemisi Ogunlere; Prelate, Methodist Church of Nigeria, His Eminence, Dr. Sunday Ola Makinde and Proto Presbyter, Very Rev. Steve Tunde Adegbite, during the Easter Sunday Service at the Methodist Church, Tinubu, Lagos… yesterday. PHOTO: GABRIEL IKHAHON

Bakassi communities task FG on sea pirates From Anietie Akpan (Calabar) and Chido Okafor (Warri)

• Navy unfolds plan to tackle illegal bunkering, others

communities OASTAL C along the Bakassi waters leading to Cameroun and

territorial waters was a task that must be accomplished. A youth leader in Bakassi, Mr. Richard Edem, said: “Life is terrible here. We can no longer do our daily work as fishermen because of possible attacks by the sea pirates. We need the support of President Jonathan because he is a riverine man too and he knows what we talking about. “This is beyond what Cross River State government can do. Please help us to inform Mr. President that sea pirates are making life difficult for us to do our legitimate duties river.” this along A boat operator, Julius Okpara, who is idling away along the coast of Bakassi River, said: “There is little or nothing to do due to daily attacks by sea pirates and to make the matter worse, the boat that killed many people in the high sea recently is making travellers by water to be scared of this

Equatorial Guinea have raised alarm over the activities of sea pirates and urged the Federal Government to intervene. In fact, youths and others in the coastal areas have been rendered idle, as they cannot venture into the high sea for pirates. the of fear However, the Chief of Naval Staff (CNS), Vice Admiral Dele Ezeoba, has vowed to tackle illegal oil bunkering and insecurity head-on and called for attitudinal change among the rank and file of the force to enable his new plan address the problem. The CNS, who toured naval formations and facilities in Warri, Oghara and Sapele on a fact-finding mission, said Goodluck President Jonathan’s order that the Navy should check illegal bunkering and secure the nation’s

route. “We beg the Federal Government to make the water safe for us. Since they sold out Bakassi to Cameroun, this problem started but of recent, it is becoming unbearable.” Governor Liyel Imoke while receiving the Commander of the Nigerian Navy Victory Base in Calabar, Commodore James Oladipo and the Commander, 207 Mobility Group of the Nigeria Air Force said piracy along Bakassi and Akpayafe was the highest in the country and there was need for urgent federal attention. He called for urgent deployment of naval helicopters for policing. effective At the Naval Engineering College in Sapele, the CNS addressed officers and ratings, cautioning them against complicity. Calling for a change of attitude, Ezeoba said the bulk of

the bunkering and security problems that the Navy faced at present were from the axis. State Bayelsa The CNS said he decided to visit Bayelsa to physically assess the situation and see how the problems could be addressed. The naval chief, who later spoke briefly with reporters, said: “We have defined our operational guidelines and established parameters that will help us address the issue head-on. I can assure you that we are working on it and the result will begin to manifest as soon as possible. It requires a collective action that encompasses surveillance, response and enforcement and we are doing all that is humanly possible with the tacit support of the minister of defence, the guidance of the chief of defence staff, that army and the air force.”

THE GUARDIAN, Monday, April 1, 2013

6 NEWS

Why merger party may not oust PDP, by Bakare By Seye Olumide HE Convener, Save Nigeria T Group (SNG), Pastor Tunde Bakare, has expressed doubt over the possibility of the ongoing merger arrangement between the Action Congress of Nigeria (ACN), All Nigeria Peoples Party (ANPP), Congress for Progressive Change (CPC) and All Progressives Grand Alliance (APGA) to oust the ruling party. Speaking at a press briefing yesterday, Bakare said: “We must scrutinise the records and antecedents of those involved in the merger and find out if they have demonstrated such commitment to the development and growth of the nation in their past and various public appointments and positions. “Definitely, we need a vehicle to clear the mess in the country. I cannot see any hope in our future except a cleansing precedes it. There is no nation in the whole world where development comes before revolution. If God-fearing men are behind the merger, it will succeed; otherwise we should continue to look up to God for intervention.” Bakare also alleged a grand plan by the ruling Peoples Democratic Party (PDP) to subjugate Nigeria ahead of the 2015 elections. He said to actualise their plan, “The ruling party has entered into merger with the National Assembly, the Judiciary, the Nigerian Armed Forces, Independent National Electoral Commission and other public institutions ahead of the 2015 election.” He said going by the present state of political events “it is only by Divine intervention PDP could be ousted by any party in 2015. But I am sure that the Living God will not disappoint Nigerians by finding the best possible options to save the country from PDP.” He also said while we blame PDP for corruption, “there is the need for Nigerians to ask from each governor of every state, including those involved in the on-going merger arrangements, what they do with their monthly federal allocations.” Citing Lagos as example, Bakare said: “Has the billions of Internally Generated

Revenue (IGR) in Lagos translated to the benefits of average citizens of the state? We still provide water by ourselves, roads are still very bad, and we provide security and some other basic responsibilities of government ourselves. I believe when the time comes, God will show us the way out.” The cleric noted that Nigerians should continue to pray and hope in God for positive change. Recipient of the 2013 United States Women of Courage Award, Dr. Joe-OkeiOdumakin, also advised President Goodluck Jonathan against the plan to increase fuel pump price.

Deeper Life Bible Church Orchestra performing at the church’s Easter programme in Suleja, Niger State…yesterday

FCT area councils record N281m revenue allocation increase From Terhemba Daka, Abuja HEsix area councils of the T Federal Capital Territory (FCT) recorded an increase of N281,174,986.71 (13.4 per cent) revenue allocation for the month of February 2013. The area councils: Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje and Kwali, received a revenue allocation of N2,380,208,667.17 from the Federation Account for February compared with the sum of N2,099,033,680.46 received for January 2013. The acting Permanent Secretary, FCT, Alhaji Nuhu Ahmed, who disclosed this during the monthly FCT Area Councils’ Joint Account Allocation Committee Meeting, attributed the increment to the improved inflow from Value Added Tax (VAT) and the arrears of January budget augmentation. Ahmed, who represented the Chairperson of the FCT Area Councils’ Joint Account Allocation Committee and FCT Minister of State, Olajumoke Akinjide, disclosed that N1.041 billion was received for the five per cent VAT in February as against N1.007 billion in the preceding month. He gave the breakdown of the allocations from the Federation Account as: N731.26 million from Statutory Revenue Allocation, N56.77 million from Subsidy Reinvestment and Empowerment Programme (SURE-P) and N23.10 million being refund by the Nigerian National Petroleum Corporation.

Other allocations from the Federation Account were: N250.35 million being arrears of January 2013 budget augmentation and N277.09 million being differential between budget and actual. Of the N2.38 billion revenue allocation, Ahmed stated that the JAAC transferred N894.43 million to the FCT Universal Basic Education Board (UBEB) for payment of the primary school teachers’ salaries in the area councils; N95.04 million to FCT Area Councils’ Pensions Board (ACPB) being 15 per cent pensions fund as statutorily required and N23.80 million to FCT Area Councils’ Service Commission being one per cent training fund, also statutorily required. According to him, the net revenue allocation of N1.366 billion was distributed to the six Area Councils, with Abuja Municipal Area Council receiving the lion’s share of

N319.58 million, as against the sum of N242.75 received in January 2013. The FCT Area Councils’ Joint Account Allocation Committee also distributed N233.77 million to Gwagwalada Area Council; N218.94 million to Bwari Area Council; N205.91 million to Kuje Area Council; N194.79 million to Kwali Area Council and N193.92 million to Abaji Area Council. Gwagwalada, Bwari, Kuje, Kwali and Abaji got net revenue allocations of N190.38 million, N198.28 million, N167.92 million, N155.29 million and N157.94 million. On SURE-P funds, Abuja Municipal got highest allocation of N16.77 million, followed by Bwari (N9.28 million), Gwagwalada (N8.50 million), Kwali (N7.79 million), Kuje (N7.45 million) and Abaji (N6.96 million).

The JAAC meeting was attended by Kuje Area Council Chairman, Danladi Zhin; Bwari Area Council Chairman, Peter Ushafa; Gwagwalada Area Council Chairman, Zakari Angulu Dobi; Abuja Municipal Area Council Chairman, Micah Jiba; Abaji Area Council Chairman, Yahaya Muhammad, and Kwali Area Council Chairman, J.K. Shazin. Others at the meeting were: Director, Administration and Finance, Area Council Services Secretariat, Alhaji Yusuf Tsaiyabu; Director, Administration and Finance, Agriculture and Rural Development Secretariat, Mr. John Obiahu; Director of Satellite Towns’ Development Agency, Alhaji Tukur Ibrahim Bakori; Auditor General for FCT Area Councils, Fred Omaka, and officials of the Treasury Department in FCT, among others.

Fire razes Jigawa education ministry From John Akubo, Dutse QUIPMENT, learning and teaching aids worth billions of naira at the main store of the Jigawa State Ministry of Education, Science and Technology located at Government Commercial Secondary School, Dutse, has been razed by fire. The fire incident, which happened at about 7:30 pm on Saturday, gutted thousands of computers for schools’ ICT centres, science laboratory equipment and other teach-

ing and learning materials worth billions of naira. The state Commissioner in the ministry, Professor Haruna Wakili, confirmed the incident, saying: “It was terrible and shocking”. Wakili explained that equipment worth millions of naira were burnt to ashes in the store as a result of the fire outbreak. According to him, the fire lasted for over three hours before help could come and it was brought under control. He commended fire-fighters

from the State Fire Service for their prompt intervention and their commitment at ensuring that the fire did not spread to other buildings in the school. The commissioner announced the formation of a ministerial committee under the chairmanship of the Permanent Secretary in the ministry, Malam Abdullahi Hudu, to investigate the cause of the incident, to ascertain the damages and to advise government on how best to tackle the matter.

Army warns personnel against extortion, oil theft From Lawrence Njoku, Enugu MBARRASSED by reports of E involvement of soldiers in extortion and oil bunkering, General Officer Commanding the 82 Division of the Nigerian Army, Enugu, Maj.Gen. Adebayor Olaniyi, has vowed to deal with any officer of the command found to have engaged in the action. Olaniyi, who described oil bunkerers as enemies of the country, said its involvement by any soldier was an act of sabotage, which must be dealt with accordingly. Addressing soldiers of the 103 Battalion, Awkananaw, Enugu State, during his famil-

iarisation visit on Saturday, he said soldiers taking bribes from commuters while performing their duty was not only a bad omen but also very damaging to the Nigerian Army. He said such attitude would always ridicule the Army and warned his men to desist henceforth. He said: “No soldier should get himself involved in extortion of money from motorists as you perform your duties. Secondly, you must not get yourself involved in oil bunkering, oil theft or pipeline vandalism. Do not collude with bunkerers who are enemies of this

country. They are actually enemies of this nation because oil is our largest source of revenue from which we are paid our salaries. We shall appropriate sanctions for anybody who engages in any of these practices”. He expressed satisfaction over the level of cleanliness of the 103 Battalion, stressing that it was necessary to avoid sicknesses. Olayini told the soldiers that their Commanding Officer, Lt.-Col. Mohamed Ibrahim, had earlier briefed him on the operational activities of battalion and other logistics problem.

“Let me first and foremost appreciate all of you for the wonderful jobs you are doing as regards internal security duties we have been saddled with in the recent past. “You will recall that the vision of the Chief of Army Staff, Lieutenant General Onyeabor Azubuike Ihejirika, Commander of the Order of the Federal Republic, is to transform the Nigerian Army better able to meet contemporary challenges confronting our dear nation. These include armed robbery, kidnapping, oil theft and pipeline vandalism and of course, cult activities among our youths”, he said.

He pointed out that as soldiers of the 82 Division and by extension Nigeria, they were saddled with the responsibility of protecting civilians and warned them not to intimidate them. “103 Battalion is a reputable unit in the Nigerian Army. You have taken part in so many peace-supporting operations and you have excelled, you are also not to molest or intimidate any civilian as you are wearing this uniform to protect them. Don’t assault any civilian because you are wearing uniform; you are to protect the civilian populace and not to intimidate them”, he stated.

Ex-Speaker canvasses pensions for heads of Legislatures From Gordi Udeajah, Umuahia S more sectors of the econoA my are embracing the pensions scheme, a call has gone that heads of the federal and state Legislatures be captured in the scheme. Former Speaker of the Abia State House of Assembly, Christopher Enweremadu, who expressed this opinion in a chat with The Guardian in Umuahia, said that Senate President/Speaker of House of Representatives and Speakers of state Houses of Assembly, heads of the federal and states’ Legislatures should be incorporated in the evolving pensions scheme within the public and private sectors of the economy.

New WTO helmsman emerges today From Oghogho Obayuwana, Foreign Affairs Editor HE hot contest for the posiT tion of the Director General (D-G) of the World Trade Organisation (WTO) reached its crescendo today and could lead to the subsequent emergence of a new helmsman widely expected to lead the fight to strengthen the global multilateral trading system. The selection process gathered momentum last month leading to the emergence of nine candidates earlier nominated by their respective governments to succeed the incumbent Director-General, Pascal Lamy, whose tenure of office expires on August 31 this year. Africa has two candidates: the Ghanaian Alan John Kwadwo Kyerematen and Amina Mohamed from Kenya. Others are Roberto Carvalho de Azevêdo (Brazil), Anabel González (Costa Rica), Mari Elka Pangestu (Indonesia), Tim Groser (New Zealand), Ahmad Thougan Hindawi (Jordan), Herminio Blanco (Mexico) and Taeho Bark (The Republic of Korea). Although Nigeria is not fielding any candidate, her presence as a leading member of the African group has made her one of the ‘beautiful brides’ being wooed by diplomats from countries fielding candidates knowing well that her backing of any candidate could swing the votes of other countries within and outside the region.

NEWS 7

THE GUARDIAN, Monday, April 1, 2013

Unions dissociate selves from planned Osun workers’ strike

Oyo AP, ACN want murder of Adigun’s guard probed

From Tunji Omofoye, Osogbo HERE is a fresh dimension to the warning strike declared to begin tomorrow in Osun State as a section of the organised labour yesterday dissociated itself from the planned action. The state chapter of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) had last Thursday served the state government notice of warning strike due to alleged failure by the government to implement the minimum wage across the board and other welfare matters. The labour unions that are against the strike include the Nigeria Union of Local Government Employees, Association of Senior Civil Servants of Nigeria and the Medical and Health Workers Union of Nigeria. The unions made their opposition to the strike known at a press conference held yesterday at NULGE Secretariat, Ilesa Road, Osogbo. The state chapter of the NLC and TUC had directed workers in the employ of the state government to embark on a fourday warning strike to press home their demand for full implementation of the new minimum wage. But while addressing the press conference in Osogbo, Akinyemi Olatunji, the state chairman of Association of Senior Civil Servants of Nigeria, gave a counter directive, saying, “all members of the association should ignore the call to strike by the NLC and TUC.” He claimed that the chairman, Joint Negotiating Council (JNC), Mr. Bayo Adejumo, who chaired the meeting where the strike order was given was not competent to preside over such meeting as he has already retired from the service of the Federal Government. He noted Adejumo lacks the competence to preside over any legitimate meeting of Osun workers as he retired as an employee of the Federal Government. “We must resist the attempt by a tiny and mischievous minority to use us to enrich themselves through the use of industrial and anarchistic tactics,” Olatunji said. He, therefore, directed all members of the association to report at their duty posts tomorrows and ignore the strike called by the NLC and TUC.

Dr Jonathan David, senior pastor, All Nations Sanctuary, Malaysia (left); Pastor Helen David, All Nations Sanctuary, Malaysia; Mrs Laide Bakare, president, Caring Heart Foundation; Dr Tunde Bakare, Serving Overseer, Latter Rain Assembly; Dr Joe Okei-Odumakin, Woman of Courage Award Recipient and Yinka Odumakin, spokesman, Save Nigeria Group (SNG), at the Latter Rain Assembly Ogba, Lagos …yesterday

FAAN, Bi-Courtney differ over N1.9b debt, hotel deal By Wole Shadare and Chika Goodluck-Ogazi I-COURTNEY Aviation Services Limited, operators of the ultra- modern Murtala Muhammed Airport (MMA2), has denied report that the Federal High Court in Lagos has dismissed its application to restrain FAAN and its agents from taking possession of the four-star hotel and conference centre at the airport following FAAN’s termination of the leases on the two projects. The company has also denied owing FAAN N1.9 billion, claiming that it is the agency that is actually owing Bi-Courtney. FAAN, through its spokesman, Yakubu Dati, in a statement yesterday, had alleged that Bi-Courtney filed the court application without notifying it “in its traditional style of getting court injunctions behind FAAN in virtually all the cases involving the two organisations.” Dati stated that the Bi-Courtney application, which he claimed was dismissed, was a desperate move by the company to frustrate efforts by FAAN to recover the said premises. Also yesterday, FAAN requested Bi-Courtney to pay the agency N1,968,634,455.95.00 said to

be debt incurred in the services it rendered to the domestic terminal of the MMA2. In another statement by Dati, FAAN stated that the figure represented the total amount owed the agency for services rendered to BiCourtney as spelt out in the concession agreement since September 8, 2007 when it began operating the terminal. The agency also alleged that Bi-Courtney rebuffed every attempt made by FAAN to recover the debt, including debt reconciliation meetings between officials of the two organisations. According to FAAN, these debts include: Aviation Security, N45,604,085.74; Fire/Safety Cost, N36,649,223.96; Marshalling N2,125,065.54; Electricity Cost, N252,038,510.006; Maintenance Band, N200,000,000.00; 5 percent Concession Fees, N726,900,069.00; REUT (Hotel), N97,200,000.00; SRC (Hotel), N9,720,000.00; Reut (Conference Hall), N73,860,219.00; and SRC (Conference Hall), N7,386,021.00, totaling N1,968,634,455.95. “It is important to state that since Bi-Courtney started operating the BOT terminal

in September 8, 2007, it has refused to make its audited account available to FAAN, in line with the terms of agreement for that concession, despite several reminder letters,” the agency alleged. In its reaction yesterday, the Corporate Communications Manager for Bi-Courtney, Steve Omolale-Ajulo chided FAAN for allegedly churning out lies to mislead the public. His words: “Two statements issued by the FAAN have been brought to our attention. In the first statement, FAAN claims that our application seeking to restrain it from interfering with our hotel and conference centre projects has been dismissed. They have made the statement without showing a copy of the court ruling, the title of the case, or even the date it was delivered. This is a figment of FAAN’s imagination and it is consistent with its desire to misinform the public. “For the avoidance of doubt, we are not in any way indebted to FAAN. On the contrary, FAAN is indebted to us. The Federal Government and its agencies, including FAAN, owe BASL over N132 billion in judgments debt. Our posi-

Amaechi warns against encroachment on UNIPORT land • To demolish illegal structures By Kelvin Ebiri, Port Harcourt OVERNOR Chibuike Amaechi has threatened to order demolition of structures illegally constructed on the land belonging to the University of Port Harcourt (UNIPORT), Rivers State. Amaechi, who promised to help the university halt the encroachment on its 3871.1 hectres of land acquired for the establishment of the institution in 1975, disclosed that the state government has paid N600 million for construction of a new Faculty of Humanities at the school. The governor spoke at the reunion dinner and award night organised by UNIPORT Alumni Association 86-88 class in Port Harcourt.

From Iyabo Lawal, Ibadan HE Accord Party (AP) and the Action Congress of Nigeria (ACN) in Oyo State yesterday called on the security agencies to fish out the assailants who invaded the residence of one of its chieftains, Ayodele Adigun, and killed his night guard. While condemning last Tuesday’s assassination plot on one of its chieftains, AP said the world is watching what becomes of the matter. In a statement by the state chairman of the party, Alhaji Bashiru Lawal, the party said although Adigun was not available when the assailants came, they nonetheless killed one of his guards, an action the party described as gruesome and barbaric. “Accord, as a discipline and law-abiding party, shares in the grief of the family of the murdered night guard and hopes that this is not the re-introduction of the past era of wanton killing of perceived political opponents. “This is because the target, Chief Adigun, is an unrepentant critic of the ACN administration in the state. The party recalled invasion of the Saki residence of Chief Micheal Koleoso penultimate week by operatives of ‘Operation Burst’ simply because ACN members were holding a solidarity rally in support of the party chieftain as the party leader in the state. “If the government can do this to one of its own, what can it not do to people in other parties, especially as the government has become afraid of its shadow as a result of its antipeople policies,” Lawal said. The ACN called on the Inspector General of Police to investigate the killing of Adigun’s guard. The party, in a statement by its Publicity Secretary, Dauda Kolawole, said the investigation became necessary to prevent turning the situation into a political propaganda.

The Vice Chancellor, Prof. Joseph Ajienka, had lamented that the institution was finding it difficult to embark on capital projects due to the encroachment into its land by indigenes of Aluu, Choba, Rumuosi and Alakahia communities. Amaechi who graduated from UNIPORT in 1987 and was honoured alongside the former governor of Bayelsa State, Timipre Sylvia and the Group Managing Director of Diamond Bank, Mazi Alex Otti, said he would ensure the enforcement of the Land Use Act to help the school regain its land. He promised to build a new convocation arena for UNIPORT. He urged the vice

chancellor to mobilise funds for fencing of the land that will be reclaimed from those who had encroached on it. Ajienka lauded the governor and other awardees for their contribution to the growth of the institution, stressing that all great universities are built by their alumni. He urged all former students to assist the school overcome some of its infrastructural challenges. He had expressed worry over security following the inability of the university to have unfretted access to the expansive parcel of land earmarked, surveyed and handed over to the Federal Government by the Rivers State government for the establishment of the university in 1975. The vice chancellor had recently declared that despite

the fact that the acquired land is in official gazette and a certificate of occupancy duly issued, the university does not have access to the land to execute vital infrastructural projects as envisaged by the founding fathers. Ajienka, who noted that the university has made some remarkable progress since its inception, revealed that effort was being made to establish a technology park on campus to further train scientists. Former Minister of Science and Technology, Dr. Abitimi Banigo, urged the alumni association never to relent in supporting the university realise the dream of being one of the best in the world.

tion has been confirmed by the arbitral proceedings and also court judgments.” He, however, explained that FAAN appealed against the court judgment and the appeal was dismissed, maintaining that there is no court judgment or order against Bi-Courtney. He maintained that all the judgments and orders were against FAAN. Omolale-Ajulo said, “to put a lie to FAAN’s propaganda, we quote from the judgment of the Federal High Court in Bi-Courtney vs. Attorney-General of the Federation, delivered on July 3, 2012, where the court stated as follows: ‘In the case before the court, we have seen gross, deliberate, calculated, heinous abuse of the court of law typified by the Federal Government of Nigeria, aided by the President, and assisted by the minister charged with responsibility for aviation matters.”

THE GUARDIAN, Monday, April 1, 2013

8 NEWS

Why oil theft persists, by PENGASSAN, IYC From Kelvin Ebiri, Port Harcourt

XCEPT the Federal E Government resolves to curb corruption in the oil industry, it will be impossible to stop oil theft in the Niger Delta, the Petroleum and Gas Senior Staff Association of Nigeria (PENGASSAN) and the Ijaw Youth Council (IYC) have said. Both associations said government needs to disband the Joint Task Force and the Nigeria Security and Civil Defence Corps (NSCDC) following their seeming failure to stem thriving oil theft, which cost the country an average of $25 million per day. PENGASSAN’s Industrial Relations Officer, Chika Onuegbu, said in Port Harcourt, Rivers State capital at the weekend, that with the illegal industry that makes above $25 million per day, it would be difficult for the government to stop oil theft if it fails to combat massive corruption raving the oil industry. Onuegbu, who is also chairman of the Trade Union Congress (TUC), Rivers State chapter, expressed fears that the current 250,000 barrels of crude oil per day being lost to illegal oil bunkering might increase because of the alleged inability of the JTF and NSCDC to stop what he described as thriving oil theft on Nigerian sea. “$25 million worth of crude oil is being stolen by the day. This has a lot of implications for the economy and the environment. The thieves don’t care about the economy. We may become like Colombia where organised crimes hold sway if government fails to deal decisively with those who steal our oil. They are not hidden,” he said. He argued that government must be up and doing and

Illegal oil bunkering has been on the increase because of the alleged complicity of the security agencies, who often collect gratification from the international syndicates stealing Nigeria’s oil not think that it is the responsibility of the oil companies to protect oil installations. He accused government of being hypocritical in the fight against oil theft following its failure to implement the recommendations of the committee chaired by former chairman of the Economic and Financial Crimes Commission, Nuhu Ribadu. “Government should show it is serious about fighting corruption in the oil sector. NSCDC set up to combat oil theft should be scrapped. NSCDC and JTF have failed as far as the issue of illegal oil bunkering is concerned,” he added. Similarly, the IYC President, Abiye Kurumiema, said it would be impossible to stop oil theft in the context of the current political economy prevailing in the country. He alleged that illegal oil bunkering has been on the increase because of the alleged complicity of the security agencies, who often collect gratification from the international syndicates stealing Nigeria’s oil. Kurumiema also accused the government of neighbouring Cameroun of supporting the activities of Nigerians who indulge in oil theft because it affords that country cheap petroleum products.

Deputy Chancellor, Ibadan Diocese (Anglican Communion), Bolaji Ayorinde (left); Bishop of Ibadan Diocese (Anglican Communion), Most Rev. Joseph Akinfenwa; Provost, Cathedral of Saint James The Great, Rev. Titus Olayinka and other officiating ministers at the Easter Sunday service at Saint James Cathedral Oke-Bola, Ibadan …yesterday PHOTO: NAJEEM RAHEEM

Anambra indigenes seek security for kinsmen in Kano, others From Chuks Collins, Awka

GROUP, Anambra A Grassroots Change Initiative (AGCI), has called on the Federal Government and President Goodluck Jonathan to exhibit practical commitment to ensuring security of the lives of Anambra indigenes living in the northern part of the country. In a statement issued at the end of its one-day meeting held in Awka at the weekend, the organisation described the sectarian killings in the North, particularly the Kano bus bombings, as satanic and barbaric. In the statement read to journalists by its Coordinator, Mr. Tony Ezekwelu, the group said the organisation would be forced to call on all Anambra State indigenes in the affected areas to return home if no serious or adequate steps

are taken to protect their lives and property. “While we sympathise with the bereaved and the surviving victims. We want to state that we can no longer take excuses for these killings, which appear targeted at our people. The people of Anambra State constitute more than three quarters of the victims,” the statement noted. The group also condemned the “Ezu River killing” and called on the state and Federal Governments to step up their investigations to unveil the identities of the victims and those behind the killings and bring them to book. According to Ezekwelu, “We shall not keep quiet until they tell us who did it and why”. The group decried non-conduct of local council election in Anambra and called on the state government to

do it without any further delay. “The non-conduct of the local council election is unfortunate, illegal and inhuman. We are, therefore, calling on the Anambra State government to ensure the conduct of free and fair local council election. “There is no excuse for not conducting the election in 14 years. Government can settle all outstanding cases out-of-court. The election is important for good governance and development of the state,” the statement said. The coordinator said the initiative was established to provide a framework for socio-economic, political empowerment and functional democracy for sustainable development of Anambra State through wholesome networking of all segments of the state down to the smallest communities.

How Lagos PDP crisis confirmed abuse of SURE-P funds, by ACN HE Action Congress of T Nigeria (ACN) has said the crisis that is allegedly tearing apart the Lagos branch of the Peoples Democratic Party (PDP) over the sharing of SURE-P funds among its members has vindicated its (ACN) stand that the funds meant to cushion the effects of fuel subsidy removal have now become a 2015 campaign war chest for President Goodluck Jonathan. In a statement issued in Lagos yesterday by its National Publicity Secretary, Alhaji Lai Mohammed, ACN said when it alleged abuse of the SURE-P funds, in a statement on February 3, 2013, the Federal Government, as well as SURE-P managers denied it and called the party (ACN) unprintable names. ‘’Today, the truth has prevailed as the PDP members have confirmed that the SURE-P funds are being

shared among them across the federation. ‘’Thanks to the alleged hijacking of the SURE-P funds meant for the PDP members in Lagos State by the Bode George faction and the crisis that it has generated, the nation can now see that the Jonathan administration has willfully converted the money accruing from SURE-P to campaign funds,” the party said. According to ACN, “This is a very serious violation of the constitution, because the State Implementation Committee (SIC), a body not recognised by law, has been set up to distribute the SURE-P largesse to PDP members in all the states. Recall that money being spent on fuel subsidies was in the past taken out of the Federation Account, hence it is money that would have been divided among the three-tiers of government in accordance with the rev-

‘Thanks to the alleged hijacking of the SURE-P funds meant for the PDP members in Lagos State by the Bode George faction and the crisis that it has generated, the nation can now see that the Jonathan administration has willfully converted the money accruing from SURE-P to campaign funds enue allocation formula. ‘’But by virtue of the SUREP arrangement, parts of the funds are now available for the Federal Government to share freely by approving contracts, programmes and activities in accordance with its whims and caprices. The PDP-controlled government has now seen the accruing huge funds as money which may well be spent with special favour for its cronies and party affiliates, without regard to the constitution.’’ The party said to buttress its point on the alleged abuse of the SURE-P funds, “most - if not all - state coor-

dinators for President Jonathan’s campaign in 2011 are also the current state coordinators for SUREP”, adding that “this is not a mere coincidence but a well-orchestrated attempt to give the Jonathan campaign an unfair head-start ahead of 2015 - with public funds”. On the crisis in Lagos PDP over the SURE-P largesse, ACN said a public statement by a faction of the PDP in Lagos has let the cat out of the bag. The PDP factional statement was said to have stated partly that ‘’Bode Oyedele cannot coordinate Sure-P in Lagos State. We

reject him. He has packed all Bode George’s agents as Sure-P beneficiaries. Is this the objective of Sure-P? ‘’In Eti-Osa, there are names of criminals as beneficiaries, especially in Ward HI. This is a waste of subsidy money and defeating the objective of the programme. There are responsible eminent citizens who should be contacted to verify and screen the submission of names for beneficiaries but Bode George’s loyalists are putting names of touts and miscreants for his own personal agenda. We won’t allow this to happen. We intend to go to court to obtain an order to dissolve the state executive if the caretaker committee won’t do it.’’ ACN said from the statement above by members of the PDP themselves, no one should be left in any doubt that the SURE-P funds have now become campaign funds for PDP ahead of 2015.

NSCDC arrests electricity cable vandal From Leo Sobechi, Abakaliki AD Chukwu Onyekachi, 28, succeeded in his latest attempt, it would have been the 70th time he had successfully vandalised electricity cables and equipment belonging to the Power Holding Company of Nigeria (PHCN) in different parts of the country. But luck ran out of the man from Okofia Village, Ezza-East Development Centre in EzzaSouth Local Council of Ebonyi State, when he was arrested on Saturday by some officers of the Nigeria Security and Civil Defence Corps (NSCDC), Ebonyi State Command. Onyekachi, while confessing to engaging in similar criminal ventures in Anambra State before coming to his village, revealed that his operation at Ezza-East Development Centre made it the 70th time he had vandalised PHCN cables in the country. The NSCDC Public Relations Officer, Mr. Emmanuel Nwali, who addressed journalists on the arrest, said the suspect sustained various degrees of “lacerations on his belly, hands and face as a result of the electric shock he received while attempting to steal a size 18-bolt from the high tension transmission cable behind Ezza-East Development Centre in the state.”

Japan, IITA, Babalola varsity sign pact on cassava productions From Iyabo Lawal, Ibadan HE Japanese Embassy in T Nigeria, in collaboration with the International Institute of Tropical Agriculture (IITA) and Afe Babalola University, AdoEkiti, has signed a memorandum of understanding (MoU) on cassava production and processing with Agbekoya farmers in Ekiti State. The Deputy Director General (Partnerships and Capacity Development), IITA, Dr. Kenton Dashiell, who spoke at the ceremony, said IITA would provide 600 bundles of improved cassava cuttings to the association in addition to training 30 farmers on the use of cassava processing machines and 10 others on machine maintenance. Dashiell noted that the Japanese Embassy would provide two cassava processing centres while ABUAD would offer monitoring/training services.

THE GUARDIAN, Monday, April 1, 2013

WorldReport South Africans pray for ailing Mandela OUTH Africans said prayers Schurch during Easter Sunday services for ailing Nelson Mandela who was spending his fourth day in hospital being treated for recurring pneumonia. The prayers came as Mandela remained in hospital for a fourth day yesterday after South African officials said the anti-apartheid hero was making steady progress following treatment for a recurrence of pneumonia. But at a packed Regina Mundi Roman Catholic Church in Soweto, a former pivotal point in the resistance against apartheid, believers were asked to pray for his recovery. “Yes, we are concerned that he is ailing, and he is getting worse, naturally we should be concerned,” Father Sebastian Rossouw, an assistant parish priest, told an Easter Sunday service. “But I think at this time rather pray that God should

heal him but also to remember what he stood for, and continues to stand for.” The frail 94-year-old, one of the towering figures of modern history, was admitted late Wednesday for his third hospitalisation in four months. Doctors drained a build-up of fluid, known as a pleural effusion or “water on the lungs”, that had developed from the lung infection. “I think many of us are concerned, and I think this is the question in the back of many of our minds, when is the end? Is he going to die? “ said Rossouw at the Regina Mundi church which had given shelter to anti-apartheid activists. “As I said, that is not what we should concern ourselves with. We should rather celebrate what he stood for, and what he continues to stand for, that he has been an icon of peace, an icon of service,” Rossouw told thousands of parishioners at Soweto’s largest Catholic Church.

Pope Francis holds a jersey of Argentina’s San Lorenzo football team offered to him by a faithful in the crowd during the Easter celebrations on St Peter’s square at the Vatican…yesterday. PHOTO: AFP

Sombre Easter for Syria’s Christians

Calm returns to Kenya after electoral suit’s ruling sparks riots

HRISTIANS in Syria yesterC day marked a sombre Easter, many having to

OLICE authorities in Kenya P maintained tight security yesterday as calm returned after a court ruling upholding Uhuru Kenyatta’s presidential election win sparked anger among his rival’s supporters and leading to riots that left two people dead. Prime Minister Raila Odinga had challenged the result of the March 4 polls, hoping for a rerun. But while he begrudgingly accepted the Supreme Court’s decision on Saturday, youths in his strongholds were enraged. A report by Agence France Presse (AFP) indicated that riots broke out immediately after the ruling, leaving two dead in the city of Kisumu, said Joseph Ole Tito, police chief for the western Nyanza region. Sporadic clashes were also reported in Nairobi’s Mathare slum yesterday morning with police firing tear gas at youths who had pelted them with stones. But calm had been restored by early afternoon as security forces maintained a strong presence in and around Mathare, home to many of

Odinga’s supporters. Calm had also returned to western Kenya, another Odinga bastion, although many shops in the main city of Kisumu remained boarded up after Saturday’s looting. Emmanuel Owako, a local Red Cross coordinator said a total of 24 people in the western region had been admitted to hospital with injuries after the rioting and about 15 of them had gunshot wounds.

The vast majority had been discharged by yesterday. There were few cars on the roads with residents preferring to walk to and from church yesterday after several vehicles were damaged on Saturday by stone-throwing youths.

“In Kisumu ... the situation has been contained and business is resuming to normal,” Kenya’s police chief David Kimaiyo told AFP. “We have an adequate number of police officers in all parts of the country including in those troubled areas,” he said.

Prime Minister Raila Odinga had challenged the result of the March 4 polls, hoping for a rerun. But while he begrudgingly accepted the Supreme Court’s decision on Saturday, youths in his strongholds were enraged.

Govt, French forces battle militants in Mali IMBUKTU yesterday witT nessed a new round of fierce fighting as Malian soldiers backed by French fighter jets battled Islamist rebels after insurgents used a car bomb as cover to infiltrate the northern desert town overnight. The French-led offensive in Mali has pushed a mix of Islamists out of their northern strongholds and remote mountain bases but the militants have hit back with several suicide attacks. About three Malian soldiers

were injured in Sunday’s fighting in the ancient Saharan trading hub 1,000 km (600 miles) north of the capital Bamako, and residents were forced to take shelter indoors, Mali army Captain Modibo Naman Traore said. “It started after a suicide car bombing around 2200 (6:00 p.m. EDT), that served to distract the military and allow a group of jihadists to infiltrate the city by night,” he said. “The fighting is heavy and it is ongoing. We are in the

process of encircling them.” Bilal Toure, a member of Timbuktu’s crisis committee set up after the town was recaptured from Islamist control in January, said he saw a French plane firing on the rebel positions. Officials did not say how many rebels were in the town. The attack reflected the challenge of securing Mali as France prepares to reduce its troop presence and hand over to the ill-equipped Malian army and a more-than 7,000strong regional African force.

Maduro vows to probe Hugo Chavez’s death ENEZUELA’S Acting V President Nicolas Maduro yesterday disclosed that his late mentor and boss, Hugo Chavez, had fought for his life “until the last second” and called for a probe into the leader’s death. Maduro told Agence France Presse (AFP) in an exclusive interview yesterday that Chavez “until the last second of his life, believed that he would live and he wanted to live.”

A visibly emotional Maduro recalled how he had visited Chavez in the military hospital on March 5 intending to discuss matters of state with the ailing leader, who had not appeared in public since December. “I was carrying a red folder with all of these pending decisions. I thought I would spend the day discussing various topics. So there I was with the folder. And there he

was, probably thinking the same thing.” “He always wanted to live. He had this gigantic optimism and faith in life,” Maduro said. Hours later, the government announced the death of Chavez, a larger-than-life presence who governed oilrich Venezuela for 14 years and came to embody a resurgent Latin American left. Until the end, the government kept a tight lid on infor-

mation about Chavez’s health, never disclosing the type or location of his cancer and insisting he was still carrying out his official duties. From December until his death, Chavez – once a ubiquitous presence on state TV and radio – was neither seen nor heard from in public, heightening tensions in the weeks leading up to his passing. Maduro reiterated his intention to launch an investigation into Chavez’s death.

observe the holy day in areas devastated by Syria’s conflict, including in the northern hamlet of Ghassaniyeh. In the capital Damascus, where fighting between rebels and regime forces has engulfed districts on the outskirts of the city, the atmosphere was similarly sombre. State television showed footage of Easter services in the capital, some of them sparsely attended. The Orthodox Christians of Syria celebrate Easter in May. At its peak, Syria’s Christians numbered around 1.8 million, approximately five percent of the population. They have remained largely out of the armed revolt which erupted after a crackdown on anti-government protests in 2011. The Christian town on the edge of Idlib province was

once home to some 10,000 residents, all of them Catholics except six Muslim families. Ghassaniyeh is now a ghost town, with no more than 15 of its residents left. “We’re weren’t able to celebrate either the Passion or the Crucifixion, we didn’t dare to leave our homes,” 88-year-old Giorgio told AFP, referring to religious ceremonies on Good Friday. But Giorgio, one of the last residents left in the town, decided to make it to church for the Easter Sunday service. Dressed in a blue trousers, a beige jacket and traditional white headscarf, he marked the occasion with eight other residents, four nuns and two priests. “We are people of peace, not of war. We want peace for the whole world,” added Giorgio, whose children fled town when their homes were destroyed in shelling.

Anglican leader warns of ‘hero leader culture’ USTIN Welby, the new Jyesterday Archbishop of Canterbury, warned against “pinning hopes on individuals” to solve all of society’s problems. As part of his first Easter Sunday sermon, agency reports quoted Welby as saying that a “hero leader culture” in which all trust was placed in one person only led to false hope. He told worshippers at Canterbury Cathedral that failing to recognise human failure in any organisation was “naive” “Put not your trust in new leaders, better systems, new organisations or regulatory reorganisation,” Welby said. “They may well be good and necessary, but will to some degree fail. “Human sin means pinning hopes on individuals is always a mistake, and assuming that any organisation is able to have such good systems that human failure will be eliminated is naïve.”

He said: “Human fallibility recognised, God’s sovereignty trusted — these are also the only stable foundation for human beings in society.” The leader of the world’s 80 million Anglicans pointed to newspaper reports on Friday that only 40 per cent of churchgoers are convinced that he can resolve the problems of the Church of England. “I do hope that means the other 60 percent thought the idea was so barking mad that they did not answer the question,” Welby said. In a radio interview before the sermon, the archbishop said the Church of England must show it can manage disagreement “gracefully” over issues such as women bishops and gay marriage. Welby said the Church faced the “challenge” of showing society that its members can hold different views but still remain “gracefully and deeply committed to each other”.

THE GUARDIAN, Monday, April 1, 2013

Politics We need to separate criminal Boko Haram from political and religious ones, says Osuntokun A member of the Presidential Advisory Council on International Relations and Emeritus Professor of History and Strategic Studies, Ambassador Akinjide Osuntokun, wants the Federal Government to change its strategies in the war against terrorism. The former Nigerian envoy to Germany also spoke to TUNDE AKINOLA on some foreign and domestic policy issues.

• For lack of funds, Nigeria should shut some foreign missions

HAT is your assessment of the conduct of W Nigeria’s foreign policy and its image under the present administration?

Honestly, I think the image of Nigeria has not diminished under the current administration. The foreign policy of Nigeria is essentially on economic diplomacy, which was the foreign policy paradigm established during the Babangida years. This is the idea of putting the foreign policy behind the domestic economic development; basically attracting foreign investment and doing everything to make the environment friendly to foreign investors. The personnel running the present foreign policy are professionals, and well-trained in their own rights. I must also say that even when you have experts running the foreign policy of a particular country, the foreign policy is the policy of the president on seat. What I am saying in essence is that every other person helping the president to run the foreign policy is a mere adviser. For instance, I function as a member of the Presidential Advisory Council on International Relations, headed by Chief Emeka Anyaoku, and we serve at the president’s pleasure. Everyone of us, whether it is the Foreign Ministry or Presidential Advisory Council on International Relations serves in an advisory capacity. The president of a country determines the foreign policy; that is why he takes the glory of its success. There is continuity in the foreign policy of any country. The national interest of Nigeria is permanent, but the way to achieve this might vary from regime to regime. You will agree with me that with the incidence of Boko Haram, and the problems in the Niger Delta, which is being resolved, there have been challenges because there is a nexus between domestic and foreign policies. If a country is not doing well at home, it cannot be expected to do well abroad. It cannot be respected outside and it cannot carry the same weight it would if there were no problems at home. Unfortunately, there are domestic problems: problems of insecurity, corruption — all sorts of terrible problems that have been plaguing the country. People all over the world are reading these developments and that is why you have people asking questions on what is going on. The Americans are not very happy about the recent presidential pardon granted by this administration to some people in this country and this a domestic issue but it has foreign policy dimensions. What signal does this reaction from the international community send? The signal is obvious: that the United States (U.S.) and the European Union (EU) are not happy about it. Foreign policy is a matter of perception. They perceive the pardon as glorifying corruption, which the administration claims to be fighting. This is what they feel about the whole issue and these are friendly and not hostile countries; so, it is healthy if they express their perception on what is going on in Nigeria. What informed your recent call for the reduction in Nigeria’s foreign missions? The reasons are simple: you put your money where your mouth is. If we do not have enough funds to run the numerous missions we have, we should reduce them to whatever number we can manage. It serves no purpose to have missions that are not well-funded in various countries because it turns into embarrassment to the country. The essence of having missions is to project the

Osuntokun

country’s image. If you do not have money to service all the missions, it is of no use. Some of them are indebted to their host countries; they cannot even afford to pay the diplomats and the local staff who are nationals of foreign countries. They tell the newspapers in their countries and this tarnishes the image of Nigeria. Imagine Nigerian missions owing electricity, telephone and garbage collection bills! If you do not have the resources, you cut the cloth according to your size. So, my idea is, if we are not going to increase the percentage of funds allocated to the country’s foreign missions, then, we should reduce the amount of missions so as to merge the amount that is available. It serves no purpose if your missions are distressed and not properly equipped. The basis of my suggestion is that if we are not increasing the quantum of money we are giving these missions, then, we should reduce them. Could you shed more light on the logic behind the prisoner swap policy between Nigeria and the United Kingdom (UK)? There are a lot of Nigerians in the UK. Some do not have proper training while some are not even trained; yet, they want to make a living. This makes them take to economic crimes and these, in the long run, translate into Nigerians congesting the British prisons. The Nigerian and the British governments have been discussing this matter for over a decade, to send many of our nationals to serve their terms (in Nigeria). Initially, we got stuck when the prisoners said they did not want to come to Nigeria to complete their terms. And you could understand the plight of a young or even an old Nigerian, who is in a British jail. By the way, British prisoners are paid allowances. So, when he collects the allowance and comes back to Nigeria and throws a big party, nobody will know he had been in jail. But when you ask him or her to come and serve their terms in Nigeria, you know that is a kind of humiliation. Nigerians also said the prisons at home are not up-to-date. To be sincere, our prisons are like killing fields. When people go into our prisons, you wonder if they can be rehabilitated at all. The chances of surviving our prisons are very

low. The rooms are congested and not well-ventilated; at times, they are windowless. So, God forbid, if anyone has to go to prison in England and asked to come to Nigerian prison, he would say no. What the British government is trying to do is support the building of modern prisons in Nigeria. The standards may not be comparable to what they have over there in the UK but at least, we would have something close. I personally believe this policy would be a deterrent to the criminality of our people in the UK. If they are aware that they would be sent back to serve their jail terms in Nigeria, there will be no reason for them to get their hands into mostly economic crimes. Some people believe the policy was borne out of attempts to cut financial costs of servicing inmates by the UK government… No, I do not think so. If there is any benefit in this, it will be definitely favour Nigeria. The British government is giving our Department of Prisons money to modernise and even to build new prisons. It does not have anything to do with the current economic situation in Europe. What are the repercussions of Nigeria’s proximity to Mali, being a conflict zone? We cannot choose our neighbours; likewise, we cannot choose our relations. You brother is your brother even if he is a criminal. But there is a problem. The Yoruba have one saying that in order to prevent your house from being burnt, whenever you see fire burning down your neighbour’s house, help in putting out the fire. This is happening in the case of Mali. We are in the same sub-region, the same Economic Community of West African States (ECOWAS). We share culture with them. If you know a little bit of Nigerian history, Islam came from the East into Nigeria and also from the West. So, we share a lot of things in common ranging from culture, religion and above all, African brotherhood. If something is happening in Mali, it has repercussions here. We have been told that some of our Boko Haram leaders were actually trained and armed in Mali before they infiltrated into Nigeria. We have a stake in the peace and pacification of Mali and precisely, this is why we have our troops there.

Do you support dialogue between the Federal Government and the Boko Haram sect? I do. I have said that I support dialogue or whatever you call it. I am a student of history; there has been no conflict in the world that was solved on the battlefield alone. Whenever a war is fought, one person wins while the other party loses. Even when someone has lost, we still need to declare armistice and have a peace conference. Instead of waiting till there is more destruction, why can’t we embark on dialogue and negotiations right from the beginning? I am not saying we should give up arms; what I mean is that it is possible to fight, and at the same time negotiate. But the problem the Federal Government has is to identify the leaders of Boko Haram; I personally believe they can be identified. At one forum, I did say what we call Boko Haram are three movements in one. There is political, religious and criminal Boko Haram. Some burglars only hide under the name, Boko Haram, to steal money; and in the process of robbing and stealing from banks, they start shouting, ‘Allahu Akbar.’ They are mere criminals. What we need to do is to separate the criminal ones from the political and religious ones. We could have a negotiation that could detach each variant of Boko Haram from one another, so we can brutally face the criminal Boko Haram. Is amnesty, as advocated by the Sultan of Sokoto, necessary for the sect? I support the amnesty. It should be given hand-in-hand with the military and police action; that is what is called the carrots and stick approach. You throw in some carrots to induce them, some of them will buy into these carrots, come out and surrender themselves; and those that do not surrender should be pursued. What the Sultan said is almost the same thing as I have said. The Sultan said they should declare amnesty and those in the caves should come out and surrender and they should be accepted. The terms of negotiation should be discussed and they should go after those that have refused to heed to the calls. So, it is possible to have amnesty and pacification go handin-hand. Considering the nature of the sect’s demands, how do you think the Federal Government would negotiate on these grounds? In a conflict, everyone has maximum and minimum demands. When you are in a conflict, you do not expect to win totally. The Boko Haram wants to Islamise the entire of Nigeria, which is not possible. It is not attainable even in the northern parts of the country, not to talk of the whole country. That is their maximum demand and if you put pressure on them, they will go for their minimum demand and this is where negotiations will come in. The Boko Haram sect may be ideologically driven, but I do not believe they are fools because they know what they are doing. I know the problem of identifying them is an issue for the government because the president has said it that he could not negotiate with “ghosts” or people he does not see and he is right. It is the duty of intelligence to find out who these Boko Haram people are and their leaders and they should try and bring them out for negotiations. If they cannot negotiate with them openly, they can negotiate with them clandestinely. As I am talking to you, the most powerful country in the world is fighting a war against the Taliban sect in Afghanistan; yet, as the war is going on, there are negotiations going on between them in Dubai or somewhere in the Middle East. The same thing is what I am talking about; you can fight them and at the same time engage in negotiations with them. But I am in total support of what the Sultan is suggesting and anything that will work. What are the practical and specific policies you suggest the government should take concerning the Boko Haram issue? Negotiate and as well as continue with the pacification. You know, a two-way approach: negotiate and declare amnesty with those ready to surrender and engage military action on those that refused.

POLITICS 11

THE GUARDIAN, Monday, April 1, 2013

Nnamani wants anti-graft agencies strengthened From Iyabo Lawal, Ibadan ORMER Senate President, Ken Nnamani has called for the independence of the nation’s anti-graft agencies. Specifically, he said the Economic and Financial Crimes Commission (EFCC), as presently constituted, was a mere tool in the hands of the president. Delivering the Centenary Lecture marking the 100th anniversary of Ibadan Grammar School, he said the law establishing the commission was defective. His lecture was titled, Nigeria’s transformation and the leadership lessons from contemporary issues of national interest. According to him: “The anticorruption agencies in the country should be given freedom to do their job without interference. Unfortunately, there is a big lacuna in the law creating the EFCC. “Unlike the ICPC where the chairman can be fired by the president only with the consent of two-thirds majority of the National Assembly, the EFCC boss can unilaterally get fired by the president.” He recalled that the Senate under his leadership made attempts to reverse the law but

it never worked. “When we were in the Senate, we made conscious effort to reverse the law,” he said. “We noticed that the EFCC was a mere tool in the hand of the president. We passed the bill but it was not signed into law.” Nnamani called on the present leadership in the National Assembly to take up the challenge and revisit the issue so as to put the anti-graft war in good stead. On the theme of the occasion, the former Senate President said to put the nation on a sound footing of development, there was the need for a transformational leader. “We have not yet conquered poverty; kidnapping is still rife as well as robbery,” he said. “The menace of Boko Haram still stares us in the face. “We say that there are potentials in Nigeria. Possession of mere potentials is not sufficient for us to succeed. Nigeria requires good leadership to radically transform the nation. “It is encouraging that most of the state governors are now making significant contributions in transforming the states.” In his address, Governor Abiola Ajimobi restated the

need for stakeholders support for education, pointing out that government alone could not solely fund education. Ajimobi, who was represented by his deputy, Moses Alake Adeyemo said: “In any nation, the support of the public is very crucial. It is important to pay attention to primary and secondary education because it provides good foundation.” The governor charged the students to show appreciation by making good use of facilities provided by the old students. The National President, Ibadan Grammar School Old Students’ Association, Prof. Charles Aworh, said that the association embarked on infrastructural development of the school to boost quality education. Among those present on the occasion were Dr. Mike Adenuga; Senator Femi Lanlehin; Ambassador Olu Sanu; the Alake of Egbaland, Oba Adedotun Gbadebo; Prof. Akin Mabogunje and Prof. Oladapo Afolabi. A book, A hundred Years of Ibadan Grammar School (1913 to 2013), was launched as part of the activities marking the occasion.

Taraba Group accuses Oshiomhole of imposition of candidates • ACN vows to rout opposition parties While it remains a fact that the issue of one man selecting candidates to run our local polls negates the principle of fair play and justice, we are surprised to learn that our Comrade Governor, who we rallied round to bring to power as a result of his firm belief that the act of imposing candidates on the people by previous governments was adversely responsible for the underdevelopment of the state, could now turn round and allow himself to be caught in the web.

My successor in the hand of God, says Akpabio • FG owes Akwa Ibom N130bn on road projects execution From Nkechi Onyedika, Uyo STENSIBLY drawing a parallel to his emergence as a candidate and eventual governor, M. Godswill Akpabio says his successor is in the hand of God. The Akwa Ibom State governor was commenting on the zoning of the governorship on the platform of the PDP in the next elections in the state. He said: “Zoning is in the hand of God. I am a product of the people. We were about 58 aspirants from different senatorial districts but the people knew what they wanted and they all said, ‘let’s God’s will be done.’ “Therefore, for those of you who are worried about succession, all I can answer you is that God’s will shall be done again.” The governor spoke in Uyo, during the town hall meeting to round off the Good Governance Tour of the state recently. He also alluded to how he ensured that politically disadvantaged got a senator in 2007, and how the Federal Government owes the state about N130 billion on road projects.

The governor told a live television broadcast how he struck out the name of the candidate that won the PDP primaries in 2007 for Ikot Ekpene senatorial district and replaced it with Senator Alloysius Etuk. He said his reason was that on since 1960, Ini/Ikono Local Government Area, where the Etuk hails from, had never produced a senator. His words: “I used my hand to strike out the name of the person who won before, and said it is important for me to give them (Ini/Ikono) a senator in 2007 and it produced Senator Alloysius Etuk. “Thereafter in 2011, I stood behind him and he was re-elected. He was the first man in my senatorial zone to be re-elected into the Nigerian Senate.” Akpabio, who was reacting to a question directed to him on why Ini/Ikono, as well as Eket from where oil is produced in the state, were being marginalised in terms of developmental projects. Putting such questions down as being sponsored by the opposition, Akpabio, however, tried to correct himself on the

said picking of Etuk as a senator. He said: “When I said I made Alloysius Etuk to become a senator in 2007, let me explain so that you don’t think that I wrote his name and he became a senator. “What happened was that during the primaries, the Peoples Democratic Party (PDP) zoned the Senate to his senatorial district and he emerged victorious in the primaries. “We presented him during the National Assembly election and he won. In 2011, with my support, he scored the highest number of votes by any senator in the National Assembly.” Jokingly, the governor asked Senator Etuk, “I hope they respect you in the National Assembly (for that high number of votes)?” On road projects in the state, Governor Akpabio disclosed that the Federal Government owes Akwa Ibom about N130 billion. According to him, the state government executed the roads on behalf of the central government.

Anambra PDP kick-starts processes for 2013 guber race From Uzoma Nzeagwu, Awka NAMBRA State chapter of the A Peoples Democratic Party (PDP) has started the process of

repositioning the party for the forthcoming governorship and general elections in the state. The state party chairman, Mr. Ken Emeakayi, outlined the programmes in Awka a meeting with the state executive and 21 council area coordinators of the state Emeakayi said the strategy was to move the party forward to include fresh registration of members from all factions. Thus, a monitoring committee, headed by a former Chief Judge of Anambra, Justice Paul Obidigbo with Mr. Okey Muoaroh, as secretary, was empanelled to harmonise the factions. Consequently, a harmonisation rally was held on Saturday; and would be followed by a

stakeholders’ meeting within a fortnight. According to Emeakayi: “Our meeting today (last Wednesday) is towards unveiling our programmes for the 2013/2014 elections. We want to harmonise all factions in a bid to make PDP a one, united family. “We have secured an authentic PDP register — to ensure that no individual hijacks the party in future elections. “We are planning and strategising towards the governorship election; we have been working behind the scene and we will make our stand known to the public soon.” He said the PDP was set to provide continued leadership for Nigeria and Anambra in particular, and would join in supporting the Jonathan administration to provide democracy dividends to people of the state. Emeakayi likened the crisis in

the state chapter of the party to what he termed “factory noise,” but quickly added that it was for progress and “serves as a measure in testing the strength of members.” He said that after going through all reconciliation and registration processes, members would expect transparent, free and fair primaries, regretting that most people left the party after tainted primaries. “Members have assured that under a free and fair contest, whoever emerges elected for any position will receive total support from other members,” he added. He waved off challenges from other political parties like the APGA and the emerging APC, maintaining that the PDP would take over Government House, Awka, in 2013, “to reestablish the supremacy of PDP in Anambra.”

Oshiomhole

From Alemma-Ozioruva Aliu (Benin City) and Charles Akpeji (Jalingo) S the April 20 local council elections in A Edo State draw closer, a non-governmental organisation, known as the Afemai Youth Association (AYA) expressed dissatisfaction with alleged undue imposition of candidates. In a statement to newsmen in Jalingo, the secretary of the Taraba-based association, Matthew Osiapi, said contrary to expectation, the Edo State Governor, Comrade Adams Oshiomhole resorted to selecting candidates for the elections. He said it was a shocking development, as the governor was seen as a major proponent of one man, one vote and a core antagonist of godfatherism in Nigerian politics. Meanwhile, the Action Congress of Nigeria (ACN) in Etsako Central council of the state has vowed to rout the opposition parties at the elections, even as its candidate, Emmanuel Momoh, promised “people friendly programmes” if elected chairman of the council. He stated this position when he flagged off his campaign for the election in Ekperi, where he pledged to take development to the grassroots, as he knows “what the people want” and was prepared to provide for them. However, explaining that some dissatisfied contestants in the council primary election had protested the outcome and unsatisfactory role of the governor, the Afemai Youths Association said it was prepared to expose the game plan of those who may want to create disaffection and under-develop the region (South-South) politically. Stressing that its interest in the socio-political development of Edo State “cannot be compromised,” the group’s statement reads in part: “The association note with ill- feeling the hatched racket, which led to imposing unpopular candidates on the electorate in some local government areas of our state. “While it remains a fact that the issue of one man selecting candidates to run our local polls negates the principle of fair play and justice, we are surprised to learn that our Comrade Governor, who we rallied round to bring to power as a result of his firm belief that the act of imposing candidates on the people by previous governments was adversely responsible for the underdevelopment of the state, could now turn round and allow himself to be caught in the web.” It noted that available evidence reveals that some of the ‘party flagbearer’ for the April 20 local government polls lost out during the primaries. The group lamented that the ACN, “which is

being adored by the people of Afemai land in view of the laudable programmes of the state governor,” may begin to lose its grip under the present circumstances. “For any meaningful political development to be recorded in a nation, the voice of the electorate must be respected and not to give in to sentiment and use of force,” it said. The association called on party faithful to resist any form of imposition of candidates on the people, as such action amounted to deprivation of one’s political freedom. “We do not expect the people of Afemai to keep mute over injustice,” it said. “Justice, they say comes through expression of the mind, as posited by Marxists, who believe that in an unjust society, every on- looker is either a coward or a traitor.” The statement added that results of primaries in Etsako-East and Owan, among others, “which were upturned by reason of force,” should be readjusted to favour those who won the primaries. The group enjoined aggrieved candidates to seek legal redress, as the Judiciary is seen as the last hope of the oppressed. For now, the leader of the ACN in Etsako Central and a lawmaker in the State House of Assembly, Johnson Oghuma, while flagging of the party campaign, said he was confident its candidate would defeat the other political parties in the contest. He said the party’s achievement under the leadership of Governor Oshiomhole would guarantee victory for the party, as demonstrated in the 2012 governorship election in the state. On the position of the Peoples Democratic Party (PDP) that it would win the election, Oghuma said: “Were they (PDP) not there in 2007, were they not there in 2012, were they not there in the last election? “There is no PDP in this local government; this local government belongs to the Action Congress of Nigeria. Whether you are a Chief of Staff to the President or not, we are not afraid. “We will meet in the field and we will always defeat the PDP in this local government.” Oghuma continued, rubbing the stark reality: “In the last governorship election, we have 18/18 (ANC won all 18 councils); in this local government, we will have 10 over 10 (wards). “There is no ward we have not touched in this local government in terms of development and you can go and verify that for yourself. “There were House of Assembly members that had represented us before but you can see the difference now.” Oghuma added: “And I know that this man (Momoh) we are presenting to the people right now is capable and able; I know him right from school and he is detribalised Nigerian, who does not discriminate against anybody and that is why we are presenting him. He said the candidate was different from former chairmen of the local government, enjoining the electorate to “give him three months and come back and see what he will do, whether in terms of infrastructural development, employment, water provision and so many others.”

THE GUARDIAN, Monday, April 1, 2013

TheMetroSection One year after, collapsed church still in ruins • 22 parishioners died when the church caved in in Benue From Joseph Wantu, Makurdi T was exactly a year ago last Saturday when St. Roberts Catholic Church, Adamgbe, in Vandeikya local council in Benue state collapsed, killing 22 worshipers and injured 37 others on the Eve of Easter. Today, the ill-fated church is still in shambles in spite of the Federal and state donations and other gestures from well meaning individuals and organizations to rebuild it. The Guardian has good knowledge about the promise made by the Federal Government through the Executive Secretary of National Emergency Management Agency (NEMA) to supply all the necessary materials required in rebuilding the collapsed church. It was also revealed that the agency donated some building materials including some bundles of zinc, nails, cement as well as building planks for the reconstruction of the church. Apart from these donations, another major contribution was made to the tune of N10 million by the Bauchi State Government for the wellbeing of families that lost their loved ones during the incident.. Embarking on the assessment of the collapsed church then, Governor Gabriel Suswam also promised members of the community that his administration would take responsibility for all the burial expenses of all the dead victims as well as undertake the payment of hospital bills of the injured parishioners; the promises the governor is confirmed to have accomplished. Suswam as a mark of remembrance for the 22 worshipers, mostly women and children, further promised that his administration would

Kehinde Simpson dies at 62 R. Kehinde Adekunle M Okikiolu Simpson has died at the age of 62. He was a Solicitor with specialization in Capital Market Law and Principal Partner at Kehinde Simpson & Co. (Solicitors and Advocates.) He attended CMS Grammar School Lagos, University of Ibadan, University of Ife, University of Lagos, Nigerian Law School, Lagos and London School of Economics & Political Science. He will be buried on Thursday, April 4, at Atan Cemetery, Yaba, after a funeral service at Good News Baptist Church at 11.00am. He is survived by his wife, Oladayo and three children.

The collapsed church...last year

aptly embark on the electrification of the community, construction of the road leading to the church as well as facilitate the completion of the health center project in Adamgbe village. A visit to the village revealed that the governor has lived up to his promise as his local government gubernatorial officer, Hon. Dominic Ucha, told The Guardian that the grading of the road leading to Adamgbe village has been completed and compacting was ongoing. Ucha added that electricity has also been taken to the village and a borehole dug in the premises of the

church by the governor to alleviate the sufferings of the people but declined comments as to why the Church had remained grounded. However, the Reverend Father in charge of the Mission, Fr. Cosmos Jooli, who spoke with some press men recently, acknowledged the receipt of some materials from the Federal Government but stated that the zinc and wood are not quite befitting to be used for church construction, noting that the temporary kiosk constructed for use was the singular effort of the church committee. An indigene of the area who pleaded anonymity expressed disgust over the manner the building of the church

has been handled lamenting that even if governments were not forth coming, the Catholic Diocese under which the Mission falls should have done something. He expressed that fears that now that rains have started coming, many members of the congregation of the Mission may shift base to other churches around. It was, however, not feasible to get comments from the Bishop in charge of the Diocese to know why the building of the church has continued to remain at the foundation level, in spite of several donations that has kept flowing in.

Ebonyi govt orders disbursement of cash to flood victims From Leo Sobechi, Abakaliki RESH burst of hope came for victims of last year’s flood devastation in Ebonyi State as the state government, last weekend, mandated the AccountantGeneral, Mr. Edwin Igbele, to commence the disbursement of various amounts in cheques to all those affected by the flood disaster that destroyed farmlands, crops and property worth millions of naira in the state. However, the state government regretted that the delay in disbursement of the intervention fund was occasioned by discrepancies in the list presented by the State Emergency Management Agency, (SEMA) and those from affected local councils stressing that after painstaking scrutiny, it decided to adopt the list compiled by the Councils as most appropriate for the

Briefs

exercise. The State Commissioner for Information and Orientation, Mr. Chike Onwe, who disclosed this while briefing journalists, said a total of N400m, will be disbursed to all the affected local councils based on the extent of loss experienced by individuals in the affected communities. Speaking further on the delay in the disbursement, Onwe argued that the funds would have come at no better time than now since, according to him, various communities were already preparing to be part of this year’s planting season in the state. “N400 million will be disbursed to the victims on the basis or extent of loss by individuals. Government has directed the office of the Accountant General to start disbursing cheques to the affected local councils. The discrepancies between SEMA and the lists given by

local councils were part of the reason for the delay in the disbursement exercise; government wanted to be guided on the appropriate basis for the disbursement and that only those affected would benefit from the funds,” he noted. Onwe said the state Executive Council decided to adopt the list given by the local councils instead of that from SEMA because the figure submitted by SEMA did not contain the list and extent of damage experienced by affected victims of the flood. He added: “All the Ministries, Departments and Agencies have been directed to urgently go through their files on Exco decision so as to guide government on issues resolved and not implemented. They are to liaise with their Permanent Secretaries to ensure that government does not take a decision and not live up to it.”

Photonews

Plateau State Governor, David Jonah Jang and his wife (left), Niger State Governor, Babangida Aliu and his wife, Hajiya Jummai , the couple, DSP Timothy Jamberlang and his wife, Maryann during their wedding at the ECWA Int’l Conference Centre in Jos...on Saturday. Jamberlang is ADC to Governor Aliu.

Catholic faithful at Sacred Heart Catholic Church, Gwagwalada, Abuja, renewing their Baptism promise and belief in resurrection of Christ during Easter vigil on Saturday PHOTOS: NAN

Simpson

Proton gets ISO certificate ROTON Security Services P Limited, a leading private security firm, has been certified by the Standards Organisation of Nigeria (SON) with NIS ISO: 9001:2008 quality award. The official presentation of the certificate by SON will take place at its corporate office at 10, Jibowu Street, Yaba Lagos on Thursday, April 4, 2013 at noon. The Managing Director, Mr. Michael Igbodipe, said: The award of is a result of painstaking efforts by the company in ensuring that its valued customers are provided with quality of services that are compared to the best in the world".

Lucy Ikuero dies at 82 RS. Lucy Ikuero (nee OsM arenkhoe), a community leader of Isi, in Uhunmwode Local Council of Edo State, has died at the age of 82. A service of songs holds on Thursday, April 4, at the Osayande compound, on Eguaeholor, Isi at 5pm, while the funeral service holds on Friday, April 5 at 9am at St. Bernard Catholic Church, Eguaeholor, Isi to be followed by interment. Guests will be entertained at Isi Primary School compound, Eguaeholor, Isi. She is survived by her brothers, sisters, children, grand children and great grand children.

Ikuero

METRO 13

THE GUARDIAN, Monday, April 1, 2013

Lions Club raises fund to build home for cancer patients in LUTH By Isaac Taiwo

OT relenting in its commitment to touch lives and put smiles on the faces of

the less-privileged, Lions Club International, District 404B, recently organized a golf tournament to raise funds for

the construction of a 20-room Mercy Home Project for cancer patients at the Lagos University Teaching Hospital

Lady captain, Funke Majekodunmi (left), Agbogun, Golf Captain, Tayo Babalakin, Ted Iwere and immediate past Chairman, Ikoyi Club 1938, Richard Giwa Osagie at the event. PHOTO: ISAAC TAIWO

(LUTH), Idi-Araba, Lagos. Speaking during the ceremony at Ikoyi Club 1938, the District Governor, Stella Agbogun, said the Golf tournament was organized principally to raise money for the project in LUTH. “I wish to reiterate that the motto of our club is “We Serve”. This means that wherever there is disaster, problems among others, we are always there to lend a helping hand.” She recalled: “There was this day, I was passing through the Therapy Department in LUTH and the entire place looked miserable.” “Though focus for my tenure is “Hope for Nigerian Child”, passion for patients in the Therapy Department has compelled me to also add

By Eniola Daniel HE Pastor-in-charge of Christ Apostolic Church (CAC), Odubanjo Centre, Ketu District Headquarters of the World Soul Winning Evangelical Ministry (WOSEM), Pastor Laoye Adejare has charged Christians globally to emulate the legacy of the late founder of the church, Evangelist Timothy Oluwole Obadare who passed on last month. Adejare admonished members of the church not to be sad over the founder’s demise, adding that the late

Senator Lee Maeba celebrating his birhday with hs family and friends. With them are Chief Edwin Clark (left), Peoples Democratic Party Chairman, Alhaji Bamanga Tukur and Senator Ibrahim Mantu at the event

Alake of Egbaland, Oba Adedotun Gbadebo (left); Chairman, Globacom, Chief Mike Adenuga, Senator Ken Nnamadi and Deputy Governor of Oyo State, Chief Moses Adeyemo at the commissioning of Information Communication Technology (ICT) centre donated by Mike Adenuga to mark centenary celebrations of Ibadan Grammar PHOTO: NAJEEM RAHEEM

Managing Director of Lagos Metropolitan Area Transport Authority (LAMATA), Dr. Dayo Mobereola (second left) explaining a point at a press conference in Lagos. With him from L-R are Deputy Director, Safeguard, Professor Olukayode Taiwo, Director of Roads, Engr. Funsho Elulade and Director of Public Transport, Engr. Olugbenga

LAWMA begins distribution of wheeler bins that possess receipts for the payment of their Land-use Charge.” According to him: “The distribution started in 2009 to ensure that every house imbibes the culture of waste containerisation as stipulated by the Sanitation Law (section 12 of Lagos State of

Nigeria Official Gazette), which states that “Every owner or occupier of a tenement shall provide a covered dustbin as may be specified by the authority outside the tenement for the disposal of waste. Contravention of the law attracts a fine of N5, 000 or three months imprisonment.”

spiritual leader lived a worthy life of emulation and dedication to soul winning evangelism. In his remarks, Assistant Pastor Tunde Filani urged the members to continue to build on what the founder did. “Don’t stop what Baba has been doing for the sake of the gospel and we should not be sad for so long. Even though the founder is dead, his work speaks volume and he will be remembered for many years,” he said. He implored members to do all their best not to allow

Ogun High Court gives ruling on dispute over Alakenne stool From Charles Coffie Gyamfi, Abeokuta FFORTS by the Ogun state government to declare the Alakenne of Ikenne stool vacant suffered a setback at the weekend as an Ogun State High Court sitting in Sagamu ruled that “the stool is not yet vacant.” The last king in Ikenne, Alakenne of Ikenne, Oba Gilbert Awomuti joined his ancestors in 1984 and since then, efforts to fill the vacant stool had not been successful due to several disputes over who occupies the stool. But in May 2011, 29 years after the demise of the last king, the kingmakers elected Oba Adeyinka Onakade whose election was approved and he was given the instrument of office by the immediate past government of Otunba Gbenga Daniel. But in November 2011, the government stopped paying Oba Onakade’s salary. In December 2011, the king said he discovered that the government had delisted his name from the re-constituted State Council of Obas (monarchs) and declared the stool vacant. Before then the Government had stopped paying his salary. Oba Onakade, therefore, took the state Attorney-General and Commissioner for Chieftaincy Affairs who took the action on behalf of the government to court, challenging the government’s action. Through his counsel, Alhaji Dauda Adeyinka Adeniji, the claimant sought among others a declaration that: Listing of the Alakenne stool as vacant “On page 15 of the programme of inauguration of the re-constituted Council of Obas in Ogun state as null and void and of no effect”. An order setting aside the listing of Alakenne of Ikenne

the authority has begun another phase of the distribution of wheeler bins. It is aimed at sustaining the drive for a cleaner environment and are “ made available as an incentive to tenements

on the fact that it had served as a form of awareness of what Lions Club was all about as evidenced by the large turnout of golfers running to 200 players. “We cannot do it all alone, hence, we solicit for those who have money to remember those who were born like them and do not have. That money you are lavishing is certainly meant for those born like you who do not have. You are to share what God committed into your hands with others who do not have, which is what Lionism is all about. “I advise people to spend their time and money for humanity by associating with Lions Club and by ensuring that money is expended to assist the less privileged” he said..

Emulate Obadare’s legacy, clergy charges Christians

Photonews

HE Lagos Waste ManageT ment Authority (LAWMA) , Mr. Ola Oresanya said that

care for cancer victims, moreso as the Consultant in the Department asked me if there was anything we could do for them. This is the reason we are raising up this structure named Mercy Home for cancer patients.” “This is why we are soliciting for those who have this money to give it out to help their fellow human beings that are unfortunate to find themselves where they are. “We are raising up a structure that will habour not less than 16 patients with a reception” Agbogun said. She expressed appreciation to Golfers and members of Ikoyi Club for their support and prayed for them. The Chairman, Organising Committee, Tunji Oni hinged the success of the tournament

stool as vacant An order of perpetual injunction restraining the defendants from making use of the listing of the Alakenne stool as vacant. The defendants (AttorneyGeneral and Commissioner for Local Government and Chieftaincy Affairs) did not file any counter affidavit against the claims of the claimant. They, however, raised a preliminary objection, insisting that the case was statue barred by virtue of the provision of the Public Officers Protection Law of Ogun state (2006). They also argued that the defendants are Public Officers of Ogun state hence they are protected by the Public Protection Act. But in his argument the plaintiff’s counsel, among others, insisted that the defendants are not public officers as they claimed but political appointees. Citing a portion of the 1999 constitution he insisted that the defendants are only regarded as public officers for the purposes of the “Code of Conduct only” and not under the provision of public officers Protection Law. Justice E.O. Osinuga dismissed the defendant’s preliminary objection, on grounds that it lacked merit. Citing many legal authorities, including that of the Supreme court to back up his ruling, Justice Osinuga ruled that the defendants are servants of the state Governor and are therefore politicians and not public officers and not protected under the Public Protection Act. The case was adjourned for 21 days from the day of the ruling to allow the defendants to file their defence. Mrs. Araba Adejoke, state counsel appeared for the defendants.

the gospel and all what Obadare lived for to die with him, adding that, “when Baba was still alive we expected him to be everywhere and wanted him to be with us anytime we called on him. But Baba is no more and can’t be with us any longer as he used to be. Obadare came, fought and conquered the world,” he said.

Briefs Theresa Ogedegbe dies EDICAL Director, CedarM crest Hospitals, Abuja, Dr. Felix Ogedegbe, has lost his mother, Theresa Ogedegbe. She will be buried on April 5, 2013. A Service of Songs /lying-instate holds on Thursday, April 4 at Ogedegbe Quarters, Okuta – Ebelle, in Igueben Local Council of Edo State at 4.00p.m. At 10.00a.m., on Friday, April 5, there will be cultural displays and traditional dances. At 2.00p.m, the body will depart Okuta-Ebelle for Idemudia Uzaka’s compound, Ubierumun, Uromi for interment. There will be entertainment of guests in a social party on Saturday, April 6, at Okuta – Ebelle and thanksgiving at Celestial Church of Christ, Wire Road Benin City on April 7, 2013. She had a brilliant career with the Edo State Health Management Board, retiring as a Chief Nursing Officer. She is survived by her husband, Felix Ogedegbe, children and grand children among whom are: Josa Ogedegbe, and Dr. Felix Ogedegbe.

Gladys Odiadi for burial rites for Mrs. Gladys FtheUNERAL Blacky Odiadi, who died at age of 71, begin with a Christian/traditional wake on Thursday, April 11 at her residence on Isikisi Road, Ibusa, Delta State at6.00p.m. She will be buried on Friday April 12, 2013, after a Funeral Mass at St Augustine Catholic Church, Ibusa. She was a trader and businesswomen who lived mostly in Lagos and other parts of Nigeria. She is survived by her husband, children and grandchildren among whom is Tony Odiadi, a Lagos-based legal practitioner.

Odiadi

TheGuardian

THE GUARDIAN, Monday, April 1,

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 Hugo Chavez and Venezuela’s future

S Venezuelans prepare to elect a new president on April 14 following the A death of their charismatic President for 14 years, Hugo Chavez, a new chapter in the country’s history is about to begin. Whatever happens, Venezuela will

never be the same again. Chavez’s passage on March 5 has set the stage for a worldwide display of emotions for a man who was loved and hated with almost equal passion by friends and foes. During his reign, Chavez became a cult figure on the international scene. Millions of his supporters would remember him as a symbol of hope to the poor in his society, many of whom he affected closely and positively with his style and oil wealth-financed populist policies. Subsidized food and free health to neglected slums, a sense of belonging to the poor, and, of course, his antiUnited States’ rhetoric endeared him to millions of his compatriots and others around the world. That disposition also won him sworn critics who saw in him a dictator; a manipulator of democratic processes, whose statist economics was seen as a monumental waste of Venezuela’s oil revenues. Nevertheless, the world will miss Chavez as an ardent revolutionary and social crusader who empowered the downtrodden in his country. El Commandante (the Commander) Chavez, a former army paratrooper who rose to fame in a failed coup in 1992 however struggled with cancer in his last two years, a health status that overshadowed his presidency and forced him to shuttle between his country and Cuba for medical attention. He was so gravely ill he could not be sworn into office in early January after his fourth presidential election victory. The country’s leadership in Chavez’s absence reasonably managed the illness. However, the claim spearheaded by Maduro, who is now the acting president, that foreign agents infected Chavez with the debilitating condition is confounding and self-serving. The strength with which Chavez pursued his ideas is inspiring, perhaps legendary to the average Venezuelan. Chavez almost equated himself with the state as he was once quoted thus: “I won’t fail you…Because Chavez doesn’t lie. Because Chavez doesn’t sell out. Because Chavez is the people. Because Chavez is truth. Because all of you are Chavez. We all are.” Chavistas, as his supporters are called, found succour in his fiery leadership and in Chavismo – the name given to the left wing political ideology based on ideas and style of Chavez, they found inspiration. His revolutionary bent also provided committed allies across the shores in Cuba, in far away Iran and other places. His life is a pointer to the necessity of having a leader who could stand up for the people to defend a cause, right or wrong. He championed the poor by moving many out of poverty, although his detractors would argue he actually left them worse off. There are claims he left the country with a 13 per cent inflation rate. With a military background, he started as a dictator but eventually won elections in a democracy. It is on record though that he caused a re-writing of his country’s electoral laws to permit him contest over four times. It was in fact feared that but for death, he would have sought to be president for life. Once, he was abducted and overthrown by some elements but his charismatic pull got him back within days following a popular protest for his restoration. Such was the allure of Chavez, 58, whose humble roots saw him being raised by his grandmother in a house with a mud floor in rural Venezuela. Later in his life, he exhibited human frailties. Twice he was married and twice he divorced, even though that would not be a hindrance to his mission in life. He had four daughters. He evoked almost religious passion among the poor who identified with his folksy charm and determination to put the oil wealth at their service. His propoor policy made oil become the cheapest commodity (equivalent of N9 per litre) in Venezuela; no shortages was ever recorded either. Some Third World countries that could not pay for oil benefitted from his large heart. A social reformer, Chavez placed Venezuela in the vanguard of developing nations seeking more equitable and just international economic order (he tried a Bank of the South to rival the western-supported Bretton Woods institutions) and actively promoted Venezuelan engagement in Africa by providing scholarships, training and other capacity building measures. Despite cutting the picture of a man of the people, Chavez’s death drew jeers from Venezuelan immigrants in the U.S. who hoped for a change in their home land, in the belief that Chavez’s administration slowed down Venezuela’s development. The human rights community had also castigated him for politicizing the judiciary while undermining the democratic system of checks and balances. Overall, his impact on the reduction of inequalities in Venezuela and in the adjoining countries will remain significant for a long time. The choice of a new leader in the next two weeks will show whether the ideas of the charming populist will endure, as his anointed successor, Vice President Nicolas Maduro squares up against tested opposition Henrique Capriles, the centrist leader and state governor who lost to Chavez last October. Chavez taught many in the world a lesson or two on charismatic leadership. Venezuelans may keep his ideas or chose a tack different from his brand of populism on April 14, but by conducting that election successfully and ensuring a smooth transition to a post-Chavez era, they would have proven to the world that there was a leader but, more importantly, there is a country.

LETTERS

Presidential pardon for ex-convicts IR Contrary to popular reaction, I did not receive the Snews of the presidential pardon granted Diepreye Alamieyeseigha and others with surprise. I saw it coming before now and I would have been surprised if he was not granted a state pardon. I had told friends a long time ago when Bode George’s release from incarceration was celebrated with pomp and pageantry. Some people even tried to explain his incarceration by saying that people like Mandela, Awolowo and other great icons were once prisoners, but proponents of such school of thought failed to draw a distinction between political imprisonment and conviction based on abuse of office. Diepreye Alamieyeseigha’s pardon is an open endorsement of corruption and an incentive to thieves to continue stealing because the chances of getting caught is getting slimmer day by day. The sweet relief of the plea bargain arrangement and the fact that former thieves can get presidential pardon will not only worsen corruption but will take it to the crescendo. In saner climes, Alamieyeseigha would have buried his head in shame for the rest of his life as people would not ordinarily want to associate with him, but unfor-

tunately that is not true about our dear country. Here, the value system makes us celebrate money more than character and material possessions more than a good name. Gone are those days when civil servants and politicians did everything possible to maintain a good reputation. President Jonathan has let Nigerians down by this singular act. You don’t need any spark of brilliance to know that one of the major cogs in the wheel of progress in the country is corruption and Mr. President has openly endorsed this by this pardon. President Goodluck should remember that history is made when events happen and that history will judge him for what he has done. His penchant for being in

the good books of everyone will do him and the nation more harm than good. A good leader should strive to be respected rather than loved. Transformational leadership requires the leader to sometimes step on toes in a bid to transform a nation. The president definitely needs some more lessons on leadership and he needs to be reminded that there is something called posterity. It is too late to start blaming Nigerians for ‘electing’ President Jonathan but we must ensure that going forward, any leader that wants to govern us must engage Nigerians on a number of issues especially the leader’s stance on corruption. •Ireti Ishola, Lagos.

A literary giant signs off IR: A true nationalist is writer. Just as your famous gone, one who really words in Anthills of the Sbelieved in Nigeria. Chinua Savanna, “While we do our Achebe was an internationally acclaimed author and towering man of letters, a man of the people, whose fiction helped to revive African literature, a literary and political beacon that influences generations of African writers as well as many in the West. It is impossible for an Iroko tree to fall and the forest remains quiet, so the world mourns Africa’s greatest

good works let us not forget that the real solution lies in a world in which charity will have become unnecessary.” Adieu, Prof. Achebe, Africa will miss you, Nigeria will miss your brilliance, and you would remain evergreen in the hearts of Nigerian youths; your works remain written with golden pen. • Adamu Cedrick, IBB University, Lapai.

THE GUARDIAN, Monday, April 1, 2013

BUSINESS 15

Business Interview: Bonds market becoming more exciting to Ghanians (P44) UBA wins awards in Cameroon, Senegal wO country subsidiaries of T United Bank for Africa Plc have emerged the ‘Best

Managing Director, CFAO Equipment, Francois Saget (left); Country Manager, Steve Faderin; Managing Director, CFAOAutomobile, Tim Maguire and his counterpart from CFAO Motors. Oliver Levigne at the PHOTO: FEMI ADEBESIN-KUTI briefing to officially unveil the CFAO Group’s newest subsidiary in Lagos, last week.

Nigeria’s real sector growth prospects gloomy, uncertain, says report By Femi Adekoya xCEPT the Federal Government addresses some of the unfriendly business policies in the country, the nation’s goal of reviving its industrial sector may soon become a mirage, going by the data provided by the Lagos Chamber of Commerce and Industry (LCCI) in its Business Confidence Index (BCI) for the second quarter. The report also stated that the nation’s trade with other countries may suffer, with stunted potential for local business’ growth. Although, the report showed a modest improve-

The BCI, which assessed the peculiar factors that impact domestic business outcomes in Nigeria in 14 sectors, 37 sub-sectors, showed a gloomy outlook for 2013, noting that stating that real sector’s growth is largely constrained by rising socio-economic uncertainties. ment of 16.5 per cent from the 10.5 per cent it achieved in the first quarter of 2013, the BCI scores for the two periods continued to trail far below the 50 per cent global confidence threshold. According to the LCCI, some of the factors for the slowpaced growth were attrib-

uted to the fact that investors and business leaders are still wary about the state of the economy and the unfriendly business environment in the country. Specifically, the BCI, which assessed the peculiar factors that impact domestic business outcomes in Nigeria in

14 sectors, 37 sub-sectors, showed a gloomy outlook for 2013, noting that stating that real sector’s growth is largely constrained by rising socioeconomic uncertainties. According to the research findings, the factors that weakened the index score include poor access to credit; inhibitive tendencies of monitoring and regulatory agencies; sustained insecurity situation across the country; dwindling public power supply; and budget approval/implementation crisis. The report further showed

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Group urges quick resolution of cement firm’s crisis From Mattias Okwe, Assistant Business Editor, Abuja PROFESSIONAL body, Ezza Ezekuna professionals (LEAD) of South local council has called on President Goodluck Jonathan and the Ebonyi State government to resolve lingering issues surrounding the privatisation of Nigerian Cement Company (Nigercem). The group said the quick resolution of controversies surrounding the company’s privatisation for its early operation was necessary because of the enormous economic and social benefit to the host communities. The group, which reviewed

the state of affairs at the company and the controversies, which made it moribund, urged all parties concern to resolve the matter in the interest of the host communities. It said Ibeto, which is believed to have acquired the 60 per cent share of the company should be allowed and encouraged to revamp the factory as a core investor. “The resumption of operations at NIGERCEM will bring enormous economic and social benefits to the host communities, Ebonyi State and the country at large, hence all hands must be on deck to resolve the matter amicably as soon as

possible.” This call is contained in a communiqué issued at the weekend in Abuja by the Group at the end of a conference on NIGERCEM. The communiqué made available to newsmen was signed by Bennard I. Odo (PhD) and Ben-Bright Mkpuma on behalf of the Group. It condemned the situation where a strategic core investor - Ibeto Group of Companies was been denied access to the facility to restore revamp the plant and resume production. According to the group, the continued degeneration of the facility constitutes a waste of resources and a dis-

service particularly to the Ebonyi people. It therefore urged the state Governor Martin Elechi to rise above primordial sentiments and allow reason to prevail The communiqué reads in part: “The attention of the League of Ezza Ezekuna Professionals (LEAP) has been drawn to the ongoing dispute between the Governor Martin Elechi-led Ebonyi State government and the Ibeto Group of Companies over the latter’s acquisition of the controlling equity interest in the Nigerian Cement Company, Nkalagu. “The LEAP, being a key

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Banks’ in their respective countries. UBA Cameroon and UBA Senegal on March 19, 2013 were named ‘world’s Best Banks in 2013’ in their respective countries by Global Finance magazine in New York. Global Finance magazine is the world’s leading corporate finance magazine with readers across 160 countries, focusing on C-suite level management, Corporates and selected financial institutions and international investors. Global Finance editors with inputs from industry analysts, corporate executives and banking consultants, selected the best emerging markets banks in the region and in 29 countries using such criteria such as growth in assets, profitability, strategic relationships, customer service, competitive pricing,

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ThE GUARDIAN, Monday, April 1, 2013

16 BUSINESS

Cyprus confirms heavy losses for major bank customers AJOR depositors in M Cyprus’s biggest bank will lose around 60 percent of savings over 100,000 euros, its central bank confirmed on Saturday, sharpening the terms of a bailout that has shaken European banks but saved the island from bankruptcy. Initial signs that big depositors in Bank of Cyprus would take a hit of 30 to 40 percent the first time the euro zone has made bank customers contribute to a bailout - had already unnerved investors in European lenders this week. But the official decree published on Saturday confirmed a Reuters report a day earlier that the bank would give depositors shares worth just 37.5 percent of savings over 100,000 euros. The rest of such holdings might never be paid back. The toughening of the terms sends a clear signal that the

bailout means the end of Cyprus as a hub for offshore finance and could accelerate economic decline on the island and bring steeper job losses. Banks reopened to relative calm on Thursday after the imposition of the first capital controls the euro has seen since it was launched a decade ago. The streets of Nicosia were filled with crowds relaxing in its cafes and bars on Saturday, but popular anger was not hard to find. “Europe shouldn’t have allowed this disaster to happen here. Cyprus was paradise and they’ve turned it into hell,” said Tryfonas Neokleous, owner of a clothes shop on a cobbled street in the center of the city. he said he didn’t except business to pick up even now that the banks were open again after an almost two-week shutdown. “I don’t expect anything and I

don’t hope for anything anymore. People are going to spend their money on food and everything else they’ve been deprived of the last 15 days.” There are no signs for now that bank customers in other struggling euro zone countries like Greece, Italy or Spain taking fright at the precedent set by the bailout. “Cyprus is and will remain a special one-off case,” German Finance Minister Wolfgang Schaeuble told German massselling daily Bild. “Savings accounts in Europe are safe.” European officials have worked hard this week to stress that the island’s bailout was a unique case - after a sug-

gestion by Eurogroup chairman Jeroen Dijsselbloem that the rescue would serve as a model for future crises rattled European financial markets. “Together in the Eurogroup we decided to have the owners and creditors take part in the costs of the rescue - in other words those who helped cause the crisis,” said Schaeuble, one of the architects of the euro zone’s response to a debt crisis now in its fourth year. “Cyprus’s economy will now go through a long and painful period of adjustment. But then it will pay back the loan.” Cypriot President Nicos Anastasiades said on Friday that the 10-billion euro ($13 billion) bailout had contained

the risk of national bankruptcy and would prevent it from leaving the euro. Cypriots, however, are angry at the price attached to the rescue - the winding down of the island’s second-largest bank, Cyprus Popular Bank, also known as Laiki, and an unprecedented raid on deposits over 100,000 euros. “We’re numb. People are numb. But their hidden hope is that something good will happen eventually,” said Pantelis Panayotou, 70, a jeweler whose stands in his shop are half empty. The island has seen none of the angry street violence that frequently erupts in Greece but peaceful protests by stu-

dents and bank workers have become an almost daily occurrence. At least 2,000 students protested outside parliament this week. Etyk, a bank workers’ union, called a rally outside parliament for Thursday to protest against potential job cuts and a hit on their pension funds. Under the terms of Saturday’s decree, the assets of Laiki will be transferred to Bank of Cyprus. At Bank of Cyprus, about 22.5 percent of deposits over 100,000 euros will attract no interest. The remaining 40 percent will continue to attract interest, but will not be repaid unless the bank does well.

Report predicts gloomy real sector’s growth CONTINUED FROM PAGE 15 that macroeconomic factors such as the exchange rate and inflation rate exerted neutral influence on the second quarter 2013 BCI score. “The neutral impact of macroeconomic prices on businesses at this time is informed by the relative stability achieved over the last few months. however, the downside remains that the current stabilisation of prices through monetary tightening has been achieved at the expense of investment, employment, output and growth. “The business environment remains largely constrained by rising socioeconomic uncertainties. This has kept the BCI scores trailing far below the global optimum levels. “however, with the progress made so far on the privatization of the Nation’s power sector, the commencement of the implementation of the 2013 budgets across the states and the federal capital, as well as the new momentum given to the consideration of the Petroleum Industry Bill by the National Assembly, we look to see how far this will reflect in the outcome of our Q3-2013 BCI survey and outcome.” A review of activities within the sectors showed that the real sector – agriculture, manufacturing and solid mineral, reversed the negative confidence they posted in the first

quarter of 2013 survey by joining other sectors on the positive confidence trajectory. “Notwithstanding, the real sectors remain at the bottom leader with very low confidence levels at seven per cent, five per cent and two per cent scores respectively. Impressively, hotel/restaurant, IT/telecoms, finance and professional services sectors continue to lead the sectors with the highest confidence levels at 35 per cent, 27 per cent, 21 per cent and 17 per cent respectively,” the report stated. The report further showed that businesses located in the South West region of the country are the most confident with BCI score of 38 per cent, followed by companies operating in the South East and South South with BCI score of 29 per cent and 19 per cent respectively. “Expectedly, businesses located in North East, North West and North Central sustained negative confidence at BCI score of -2 per cent, 1.5per cent and -0.1per cent respectively. “While we note the resilience of businesses operating in the southern Nigeria for keeping up amid increasing threats, the worsening security situation may have caused severe setback to businesses and potential investment particularly in the North and the country in general”, the report added.

Chairman, Seven Energy International, Phillip Ihenacho (left); Executive Director, Corporate Banking, United Bank for Africa Plc (UBA); Ifeatu Onejeme and ; Managing Director, Accugas, Stephen Tierney, during the signing ceremony of Accugas $225 million refinancing and e Expansion facility, arranged by UBA and four other Banks in Lagos, last week.

Transport stakeholders laud fund approval for new roads By Taiwo Hassan TAkEhOLDERS in the transport sector have commended the Federal Government for its pro-active measure in approving more funds for the construction, rehabilitation and reconstruction of 13 critical roads projects nationwide. They said that it would definitely boost trade facilitation and reduce vehicles operating cost in the country if completed within the construction schedules. The Federal Executive Council (FEC) approved N47.8 billion for the construction, rehabilitation and reconstruction of 13 road projects nationwide at its meeting in Abuja last week.

Logistics expert and Managing Director, Multimix Academy, Obiora Madu said that the FEC’s decision to approve the fund was critical to road transport integration, adding that it was a step in the right direction. Madu, however, was pessimistic about the completion date of the approved road projects, adding that since the Federal Government has demonstrated its readiness towards constructing new roads, it is now left in the hands of the construction companies that will do the projects to convince Nigerians about their commitment towards the completion of the

Group wants Nkalagu cement crisis resolved CONTINUED FROM PAGE 15 stakeholder in Ebonyi State, is constrained to intervene to ensure the expeditious resolution of this matter. It is our firm belief that instead of allowing the crisis to degenerate further, all hands must be on deck to resolve this crisis in the overall interest of our state. “LEAP, after a review of the issue in dispute, was able to ascertain the following facts as the crux of the matter: • that in the year 2002, the Federal Government of Nigeria (FGN), as part of the privatisation programme wanted to sell-off its equity shares in Nigercem to the private sector; • that at the time FGN wanted to sell its stake in

Nigercem, it had only10.5 per cent shares of Nigercem, the five eastern states had 60 per cent while the general public held the balance of 29.5 per cent; • that the then governors of the five eastern states: Dr. Sam Egwu of Ebonyi State, Dr. Chimaroke Nnamani of Enugu State, Dr. Chinwoke Mbadinuju of Anambra State, Chief Achike Udenwa of Imo State and Chief Orji Uzor kalu of Abia State, declined to give the FGN the power of attorney to sell their shares and opted to set up a joint committee to carry out the privatisation themselves; • that upon this development, the FGN then gave the five eastern states the power

of attorney to dispose-off its own 10.5 per cent equity stake in Nigercem; • that a technical committee on privatisation, which was set-up by the five eastern states and chaired by Chief Erondu from Abia State, selected Eastern Bulkcem Nigeria Limited (EBNL) as the core investor and sold 70.5 per cent of the shares to them, while the balance remained in the hands of the general public; • that the Ebonyi State government later sought for and received 10 per cent shares from the core investor, which it duly paid for; • that since the sale, no progress has been made in rehabilitating the moribund factory and the Ebonyi State

government has been in dispute with the core investor with no end in sight on the amicable resolution of the matter; • that Governor Elechi, while presenting his 2010 budget to the Ebonyi State house of Assembly stated, that Nigercem was dead and foreclosed the possibility of the company being revamped; • that it was in this state of affairs that Ibeto Group stepped into the matter and acquired EBNL from who and when?; and • that the Ibeto Group has made a commitment to the host community and the Ebonyi State government that it will get Nigercem up and running within six months of effective takeover.

projects. “It is left for those contractors that are given the job to exercise speed towards the completion date of the projects. We have had so many projects being abandoned in the past without recourse to see them in reality. But in all honesty, if these projects are carried out faithfully as they have said, obviously, it will go a long way in developing the transport sector and logistics business in the country, especially it will prevents road accident and reduce logistics cost,” Madu said. To Federal Roads Safety

Commission (FRSC), the new road construction, rehabilitation and reconstruction was good for economic development, but their survey indicated that newer roads constructed now record higher fatal accidents, due to over-speeding by motorists. According to the Corps Marshal and Chief Executive Officer, Osita Chidoka, investigations however, by the commission during its survey showed that high mortality occur on these new roads, but backed the Federal Government on the approved funds for the new roads.

UBA wins awards in Cameroon, Senegal CONTINUED FROM PAGE 15 and innovative products to determine eventual winners. Late last year, UBA Cameroon and UBA Senegal won the Bank of the Year Awards in their respective countries at the Banker Awards 2012, organized by The Banker Magazine; a publication of The Financial Times. They have replicated the feat again in 2013 with another international magazine. “These and similar awards confirm the increasing influence of our country subsidiaries in Africa, engineering growth and development through financial intermediation and providing banking services in easy and convenient ways to the benefit of our customers and other stakeholders” said Group Managing Director/CEO UBA, Phillips Oduoza, in reaction

to the announcement. Managing Director of UBA Senegal, Mrs. Amie Sow, said she was delighted at the award and commended the staff for their diligence and hard work. “we are poised to taking UBA Senegal to a greater level for the benefit of Senegal and Africa” she enthused. The same sentiments were expressed by the Managing Director of UBA Cameroon, Georges Wega. “This couldn’t have come at a better time, coming in the thick of our five year anniversary celebrations. We thank the Cameroonian banking public for embracing us whole heatedly and the UBA Group for the support and leadership direction.” The list of the selected top performers in the emerging markets, covers banks in Latin America, Central & Eastern Europe, Asia-Pacific,

THE GUARDIAN, Monday, April 1, 2013

BUSINESS

Food Crisis: Expert canvasses organic agric practice From Abiodun Fagbemi, Ilorin.

N agricultural expert from Moor Plantation Ibadan, Jonathan Babatola, has canvassed the practice of organic agriculture as the panacea to food crisis in Nigeria. He defined organic agriculture as an overall system of farm management and food production that combines best environmental practices for food production. He spoke last week at Landmark University, Omu Aran in Irepodun Local Council Area of Kwara State.

Babatola, who delivered a lecture at the university said Nigerian traditional farming systems were by and large organic by default, adding there must be conscious change from growing seeds that are not high yielding to the cultivation of modern seeds with high yielding capability. He added, “the concept and scope of organic agriculture today has transcended these traditional systems. There is need now to teach farmers and value chain operators the principles, guideline, standards certification processed and trade

or organic agriculture. “This is because unlike conventional agriculture, quality assurance, reliability and trust is crucial for products, handlers and market operators. Nigeria has a total of 923,768 square kilometers land area. Only 8,000 ha (2011) are under organic cultivation. “ Babatola canvassed an organic agriculture programme for the Landmark University adding that the proposition should integrate teaching and practice so that the students of the faculty after graduation could take to farming as a

full time occupation. He added, “this is important because the current farmers in Nigeria are within the age bracket of 54 and 60. Less than five per cent of Nigeria population is above 60 (2006 Census). With the products of the College of Agriculture, Landmark will become the bridge to the promised land.” Besides, he urged the University to encourage multi-disciplinary research projects in Organic Agriculture, which would in turn lead to increasing knowledge, and positively impact on human health.

Client Sales Executive, IBM West Africa, Mrs. Gladys Agwai (left); Executive Director, Operations and Technology, Keystone Bank, Mr. Ademola Adewale; Country General Manger, IBM West Africa, Mr. Taiwo Otiti, and Executive Director, Lagos and West, Keystone Bank, Mrs. Yvonne Isichei, during the Keystone Bank/IBM joint press conference on “Leveraging Technology for Service Delivery”, in Lagos.

Glo begins network overhaul, expansion By Adeyemi Adepetun ELECOMMUNICATIONS service provider, Globacom, has commenced network expansion and technical network upgrade project that will improve the quality of service on the network. The development, according to the company’s Group Chief Operating Officer (COO), Mohamed Jameel, at the weekend in Lagos was part of the 10th anniversary celebration. Jameel said that Glo was carrying out the investment in order to upscale the network to the latest technology for global telecommunications. He explained that the massive expansion project, which has already started, involves network upgrade and overhaul of infrastructure across the country as well as expansion and densification projects that will on completion within the next one year enable the network to cater for its existing and potential subscribers. “This will make Globacom the number one network in terms of investment,” Jameel stated. The project includes building of new switches, increasing of mobile switching centres to ease congestion and construction of additional 4,000 km of optic fibre cable, which will complement the existing fibre optic facility, which is the most extensive fibre coverage of Nigeria. Glo has state-of-the-art IP/MPLS

and TDM technologies (30 gigabyte capacity) to meet requirements of enterprise customers, video, voice and data services. The TDM network is being upgraded to a fully integrated Generalised Multi-protocol Label Switching (GMPLS). The COO in a statement said part of the upgrade also includes the installation new base stations and densification of existing ones, setting up of three new mini call centers across the country to take care of vast increase in subscriber figures and upgrade of the radio access network which will ensure that data customers enjoy unparalleled speed and reliability. “We are building a brand new network based on latest technology and adequate capacity to cater for our growing subscriber base. The project will include the optimization of the existing Base Transceiver Stations (BTS) both 2G and 3G for High Speed data transmission, full integration of our backbone infrastructure with the Glo 1 international submarine cable and upgrade of the high capacity IP-based radio access network which will ensure that our data cus-

tomers enjoy unparalleled speed and reliability. “We are also deepening network reception across the country as we accelerate the pace of planned rollout of base stations. Virtually every Nigerian community will benefit from the network upgrade. All major cities and medium-size cities will have 3G coverage to ensure that the quality of high speed internet service and data transfers will be similar to what you will find anywhere in Europe or America,” Jameel added. “This is in line with our commitment to provide our customers world-class information, communication and technology (ICT) services through constant deployment of latest technologies. We will stay committed to our corporate promise at inception that Globacom would build a robust ICT network infrastructure that is comparable with the best in the world, and would consistently deliver value to its esteemed customers,” the COO stated. “With leading telecoms equipment vendors like Alcatel Lucent, Huawei, ZTE and Ericsson as partners, we are determined to put in place the most robust and

the best Voice and Data network in Africa. The upgrade will lead to significant improvement in the quality of voice, increase the speed of data services and installation of new platforms for innovations in service provision,” he added.

Govt, stakeholders to brainstorm over national report HE Office of the Senior T Special Assistant to the President on Millennium Development Goals, OSSAPMDGS will hold a national workshop for the preparation of a national report that will be presented by the Nigerian Country team led by Dr. Precious Gbeneol, Senior Special Assistant to the President on MDGs as Nigeria’s National Voluntary Presentation, NVP at the High Level Substantive Session of the Economic and Social Council (ECOSOC) during the Annual Ministerial Review (AMR) in Geneva in July, 2013. Deputy Director, Communications OSSAPMDGs, Mrs. Ken Offie, who revealed this in a statement, said the workshop will hold between April 4 to 5 and the Chida International Hotel in Abuja. According to Offie, critical inputs from stakeholders from cross-cutting sectors locally and from the relevant United Nations entities will form the core contents of the NVP to be delivered at the ECOSOC forum. The workshop, which is being organized in collaboration with the Ministry of Science and Technology and the Ministry of Culture and Tourism will have a keynote address delivered by the Minister of National Planning, Dr Shamsuddeen

Usman. It will also have in attendance representatives from the 36 states and FCT, stakeholders in the related sectors and members of the public to ensure inclusive deliberations. Nigeria, the only country invited to the forum from Africa has in line with the theme of the international event, already indicated that it will highlight its use of science and technology, especially, the Nigerian MDGs Information System it developed in conjunction with the Earth Institute of Columbia University and United Nations Country Team as a guide for the investment of the annual USD1bn negotiated as Debt Relief from the Paris Club for pro-poor activities in the report it will present to the forum. “While emphasis will be placed on the accomplishments and challenges encountered in the implementation of National Development Strategies and Policies as stated in the guidelines for the preparation of the National Report, we intend to highlight the utility of the Nigerian MDGs Information System in both the Report and the National Voluntary Presentation as a crucial tool that has had impact on the implementation of Internationally Agreed Development Goals (IADGs), including the Millennium Development Goals in Nigeria”, Gbeneol said.

THE GUARDIAN, Monday, April 1, 2013

18 BUSINESS

Access Bank renews commitment to women empowerment S part of measures to promote gender empowerA ment and equality in the country, Access Bank Plc has renewed its commitment towards providing funds and training for women under its women empowerment initiatives. The bank renewed this commitment few days ago, at the International Women’s Day commemorative event organised by the Women Empowerment Principles Leadership Group (WEPLG), which coincided with the 5th edition of the Equality Means Business meeting in New York. At the Women Empowerment Principle Leadership Group meeting which is a part of the United Nations efforts on women empowerment, Access Bank represented by its Head, Group Human Resources, Bolaji Agbede, stated that the bank, through several initiatives embarked upon, hopes to boost women empowerment and gender equality within the organisation and the Nigerian society. In her presentation during the feedback session to the UN Secretary General, Ban kiMoon, on the 2013 WEPs, Agbede listed the creation of Access Women Network as one of the organisational initiatives created to support and encourage women in the employment of the Bank. She added that “Outside Access Bank’s strong intermediation role in providing funding and training for women entrepreneurs through our partnership with the International Finance Corporation, we are equally aware of the challenges of career women and growing women, and consequently created the Access Women Network platform for women within our organisation to help them attain their personal goals and aspirations through mentoring and support. “The only Nigerian bank that has signed on to the Women Empowerment Principles (WEPs) launched in 2009, Access Bank has continued to demonstrate leadership in the area of Women Empowerment.

Director General, Securities and Exchange Commission (SEC), Arunma Oteh (right); Executive Commissioner, Legal and Enforcement, Sa’adatu Bello and Executive Commissioner Operations, Mounir Gwarzo, at the 2013 first quarter Capital Market Committee meeting held in Lagos… over the weekend

NIGCOMSAT laments under-utilisation of facilities From Itunu Ajayi, Abuja HE Nigeria Communications Satellite (NIGCOMSAT) has called on the Federal Government to provide the enabling environmrnt needed for the production of information and technology products locally. The agency said at the weekend that the call had become necessary in order to sustain the efforts of the Chief Olusegun Obasanjo led government that established it (NIGCOMSAT). The Managing Director of NIGCOMSAT, Tinnasaniyu Ahmed-Rufai, made this call in Abuja during a facility tour of the agency by the House committee on information and national orientation led by its Chairman, Buba Jubril.

Ahmed-Rufai explained to the committee that past government invested so much in the facility now lying fallow. He said the institutions of government that are supposed to benefit in the establishment of the centre have not show any sign of interest to utilise the available facilities. His words: “Government has invested a lot of money in the facility, the satellite alone is about $250 billion, this satellite was launched over a year ago, but unfortunately most of the key institution of government in particular that are supposed to quickly take advantage of these facilities are yet to come on board. We can be a unifying signal carrier for all the broadcasting institutions in Nigeria, this

Sokoto, firm partner over cement plant From Eric Meya, Sokoto N a bid to fully exploit the Imajor limestone and gypsum, two raw materials needed for the production of cement, which are abundant in Sokoto State, the state government last week signed a Memorandum of Understanding (MoU) for the establishment of a joint cement mini-plant. The Commissioner for Solid Minerals Development, Malam Dahiru Maishanu Yabo, signed on behalf of the state government while Michael T. Bjorn, signed on behalf of the Consortium of Brewtech Nigeria Limited and Saboo Group of Industries. The commissioner said that the ceremony marked the effective takeoff of his ministry and a fulfillment of Governor Aliyu Magatakarda Wamakko’s vision to industrialise Sokoto state. According to him, the proposed mini-plant would source all its raw materials

locally saying that the state, which already hosts the Cement Company of Northern Nigeria (CCNN) has the capacity to sustain ten more cement plants for the next eighty years. He said that the proposed mini-plant would produce 300 tons or 10 trailer loads of cement daily but would have total installed capacity of 900 tons or 30 trailer loads of cement daily. Enumerating the benefits of the project, the commissioner said that apart from giving direct employment to abut 200 people and the multiplier effect, there would also be transfer of technology to the people of the state who would eventually run the plant. He however said that the state government would encourage private investors to buy into the project as the state government may only end up with about 20 per cent equity participation. In his remarks, Bjorn, who is the project manager of

Brewtech Nigeria Limited, said that the construction of the plant would take about 18 months when the details have been worked out. He said that his company had been operating in Nigeria for the past forty years and had 25 industrial projects to its credit.

we are going to do in partnership with NTA and voice of Nigeria. “There is also the broadband policy of the government in which we can play important role and also the cashless policy of the CBN. In all these initiatives of government, the fact that a national satellite should be used is very imperative, at the moment; most of our commercial transactions are done on a private and commercial networks. This means that in the event of anything, what is known as e-warfare can be used against the country. And in the event of any adversity which we don’t pray for, the only communication services that will be available is the satellite, because the first thing the enemy will target is to break off every communication network on ground, when this is achieved, the control system and all military formations would no longer be functional as they would not be able to receive command and this spells doom for such country. “The issue of national satellite has strategic importance and this explains why the then president Obasanjo drove this project himself.

This was his initiative and he built this project out of advice from Bill Gates and the outgoing president of China.” The managing director said that proper utilisation of the centre would create more jobs and increase the GDP of the country. He called of appropriate legislation to back up the agency in order for the culture of the Nigeria to be preserved noting that there are lots of social implications issues in the area of broadcasting to warranty that such should be done on a national infrastructure and not on commercial or privately owned ones. “Our plea is for the House committee to help us so that relevant institutions like NTA can come on board and also for us to be part of the analog migration because being part of it is a responsibility that we can deliver adequately. The whole idea is to enhance the DGP of the nation by making services local so that Nigerians would not be paying for the new era of broadcasting and all the money is going outside. If these facilities are utilised, apart from justifying the investment of the govern-

ment in the satellite, we are also able to create more employment for our people and also have control of what actually goes out there. If there is no resolution or any legislative backing, then anybody can do whatever they like and people will feel that they can just go out there and bring any cheap product to the country”. In his response the Chairman, House Committee on Information and National Orientation, Buba Jubril, said the committee would do all in its capacity to ensure that broadcasting institutions especially the government owed ones utilises the infrastructure available at the agency. His words: “This committee has the responsibility to oversight broadcast stations particularly the voice of Nigeria, the NBC, NTA and others. These institutions are in the best position to utilise the facilities here particularly in respect to digitization scheme that is ongoing and is hoped to be achieved by 2015. We would contact those concerned and see how the robust partnership can be achieved.

Stanbic IBTC set to deepen bank’s presence through brand campaign By Helen Oji TANBIC IBTC Bank, a member of Stanbic IBTC Holdings, has launched a nationwide brand repositioning campaign which seek to deepen and strengthen the bank’s presence in the market place, through provision of products and services that impact positively on people’s lives and businesses. Speaking at a ceremony in Lagos at the weekend, Chief Executive Officer, Stanbic IBTC Holdings, Mrs. Sola David-Borha, said the cam-

paign was designed in order to display how both existing and potential customers can benefit from a new opportunities in banking, adding that the central theme of the campaign was a pledge by the institution to help individuals and businesses achieve their goals using actions, products and services that deliver exceptional value. The campaign, which kicks offs on April 2, 2013, according to her, would run for six months. With Stanbic IBTC Group consummated a holding

structure, the bank, according to her, was poised to deliver quality services to customers. To this effect, she said the group has put in place a highly talented and motivated workforce to ensures that the right people are positioned to attend to customers’ needs. “This repositioning campaign reflects our group’s vision, strategy and values, which are underpinned by the unique ability to connect with our customers who would appreciate our uncommon commitment to

moving them forward, whatever may be their goals,” says David-Borha. She said the bank would remain dynamic and innovative in line with the consumers’ changing preferences while re-aligning its operations in response to market trends. “As a niche player in Nigeria and Africa through our parent company, Standard Bank, it is only logical that we must be a change leader and adapt to meet the needs of our consumers.

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THE GUARDIAN, Monday, April 1, 2013

Zamfara partners Russian firm on mineral exploration From Isah Ibrahim, Gusau ORRIED by the over dependence on the federal allocation for smooth operation of its activities, the Zamfara State government has signed a memorandum of understanding with a Russian-based company for the exploration of abundant solid mineral resources in the state. Speaking with The Guardian in Gusau, the state capital, after the state executive council meeting last week in Gusau, the state’s Commissioner for Information, Alhaji Ibrahim Muhammad Birnin Magaji, said the decision was part of the government determination to diversify its major source of income for the development of the state. According to him, part of

the agreement was the allocation of 1000 hectares of land in the abundant minerals deposit of the state, saying that, the state was among the few states with highest commercial quantity of different mineral resources in the country. “We are in talking terms with international organisations, international bodies, and private investors at least in the area of solid minerals exploration, as well as agriculture. Only recently, a Russian company approaches us and we are in talking term with them. When they came in, they saw a very arable land waiting for exploitation, a memorandum of understanding was even signed,” said Birnin Magaji “The state executive council

has agreed to give them about 1000 hectares of land, so that they will start the development and let us see what will happened. So, these are some of the initiatives embarked upon by the state governor with a view to having a sought of economic means of survival so that, the good people of Zamfara State will see reason with diversification of the economy, he declared. On roads, the commissioner explained that, the council has also approved contract for the reconstruction of a 39 kilometre along GusauKaura Namoda road to Mother Cat company and 50 per cent of the total sum was given to the contractor, adding that, the project would be completed within 18 months.

First Bank designs personalised payment card to support cash-lite policy By Helen Oji tion via First Bank’s official ever changing needs of our IRST Bank Nigeria Plc has website, using personal pic- customers. In so doing, we Fcards”, designed “expressions on ture of self, loved ones or pay particular attention to most cherished celebrating the individualithe first personalised that payment card in Nigeria. Chief Executive Officer of First Bank of Nigeria Limited, Bisi Onasanya, at the launch of the product at the weekend in Lagos, explained that it was another innovative offering from First Bank aimed at consolidating its efforts in supporting the CBN cash-lite policy, following the recent launch of FirstMonie that caters for millions of Nigeria’s unbanked citizens. “We initiated this product to personally and emotionally engage our customers across all segments and inherently encourage card usage, particularly within the youth segment as the key drivers of the economy in the nearest future. “Introduction of this product is an indication that First Bank as the leading brand in Nigeria is “youth-centric” and highly sensitive to the desires of her customers which include the craving for recognition of individuality, global identity and personalised service. “Expressions on Cards” is self-service banking, where customers of the bank are empowered to initiate customised debit card requests conveniently from any loca-

moment. At First Bank, we would keep developing bespoke products and services aimed at addressing specific needs of our discerning customers.” he added. Aside being a personalised card, “Expressions on cards”, according to the First Bank boss, it maintains a high level of security feature in the payment card industry – Chip and Pin, noting that it is also denominated in Naira and can be used for domestic and international transactions wherever the MasterCard logo is displayed. Head, Marketing and Corporate Communications of the bank, Mrs. Folake AniMumuney, said the emergence of “Expressions on Cards” is yet another indication that First Bank was committed to providing exciting products for our teeming customers, especially the youth. “Indeed, as the leading bank brand in Nigeria, we are proud of our unwavering dynamism and “youthcentricity”, and our consistent evolution as a one-stop financial services centre dedicated to meeting the

ty of our customers through personalised products, like the “Expressions on Cards. “We recognise that the introduction of this personalised Mastercard by First Bank is an innovation, which transcends demographic boundaries, premised upon the universal consumer insight we have identified - that regardless of age, we are all emotional beings and everyone appreciates the empowerment to express their individuality, this time around through pictures. Pictures or images, as you would agree, portray expressions better than thousands of words”. Renan Arce Basteris, Technical Consultant, Gemalto, world leader in digital security and card customisation said First Bank recognises the value of card customisation, noting that “what started out as a Gut feel to offer a new and creative service to their customers, evolved into a well understood value proposition that drives payment cards front of the wallet and differentiates First Bank significantly in a fiercely competitive marketplace.

Firm plans 30-day free bus ride for Lagosians LG communications has RLG Country Director, Tosin Lagos metropolis, which are R concluded plans to offer Laju Ilesanmi, who explained Ikorodu-CMS, OkokomaikoLagosians, a free ride on the the rationale behind the gesMile 12, Oshodi-Ikotun Egbe Bus Rapid Transit (BRT) System of the Lagos State government as from tomorrow., Although, the free service will be available on selected routes within the metropolis, it will last for 30 days. The initiative, according to the organisers is designed to add value to the lives of Lagosians and also serve as an extension of the company’s tag line, ‘Proudly Yours’, a CSR initiative. On hand to launch the commencement of the Free BRT Bus Ride, which would easily be identified by RLGs full wrap-around colour branding, is the Lagos Sector Commander of the Federal Road Safety Corp (FRSC), Usebong Akpabio,

ture, disclosed that “RLG Free BRT Bus Ride is a major corporate social responsibility (CSR) project for the RLG brand to encourage safe driving culture amongst Lagosians and also educate Lagosians about the various road signs commonly in use on our roads and the meaning of each.” Aside this, he noted that there is the need to assist commuters, at least, within a given period in order to demonstrate the bond existing between the company and generality of Nigerians by assuaging the stress of transport fares on their pockets. To this end, he stated that RLG has branded BRT buses on four major routes within

and CMS-Ajah. He promised that the buses will convey passengers to and fro along these destinations for free within the 30-Day period with a lot of funfair and that a lot of educative package awaits them. The Chief Operating Officer (COO), Taiwo Latilo, also explained that the company would equally seize the opportunity to introduce some of the latest products of the RLG brand which is of the highest quality to Lagosians, not only that, Latilo added: “We will educate the masses of Lagos on various road signs in order to appreciate that safe driving and commuting is the hallmark of a mega city.”

THE GUARDIAN, Monday, April 1, 2013 Published in association with

InvestmentWatch TRUSTEESHIP Introduction Nthis Easter edition of INVESTMENT ONE education series, we shall highlight the processes and the benefits of having professionals help you in planning and managing your wealth under a trust as well as acquaint you with INVESTMENT ONE’s core services to enrich your choices and broaden your investment perspective. Trusts Trusts funds are often misconstrued by many people as the exclusive preserve of the wealthy, thereby missing out on the immense benefits this financial tool can serve in ameliorating the needs of many. A trust is a legal arrangement whereby property or assets are held by a person or company (trustee) for the benefit of a specific person, group of people or organization(knownasthebeneficiaries).Atrustconventionallyariseswhenpropertyistransferredbyone party to be held by another party for the benefit of a third party, although it is also possible for a legal owner to create a trust of property without transferring it to anyone else, simply by declaring that the property will henceforth be held for the benefit of the beneficiary. Put in another way a trust is created by a person (settlor or donor) who transfers some or all of his property to a trustee who holds that trust property for the benefit of the beneficiaries. There may be a single trustee or multiple co-trustees as well as single beneficiary or multiple beneficiaries. The settlor may himself be a beneficiary. In Nigeria, trust is governed by laws of the land which providetheframe-workforthetermsof thetrustdeed or instrument, which are usually in writing. A trustee has many rights and responsibilities. These vary from trust to trust depending on the type of the trust. Benefits of establishing a Trust: •Protectsyourassets(thatyouoryourbusinessowns) from creditors, or any potential loss of those assets to creditors (if the business runs into trouble • Enables you to arrange proper estate planning to efficiently manage your estate taxes. • Avoid probate upon death by transferring your assets into a family trust while you are alive. • Confers power on the trustee to manage your assets should you become unable to oversee them yourself. • Ensures that your assets are transferred to the intended beneficiaries and fosters provision for children or family members who lack the financial know how to manage the assets. Types of Trust INVESTMENT ONE trust services offering include; Corporate trust, Public trust, Private trust and Living trust. Private Trust A testamentary or after-death trust will come into existence, usually by the operation of a Will after a person's death. The assets to fund these trusts must usually go through the probate (validating a Will) process. A living trust or inter vivos on the other hand, is a trust made while the person establishing the trust is still alive. Living trusts come in two forms: revocable or irrevocable. The most popular type of trust is the revocable living trust, which permits the individual to make changes to the trust during his or her life-time whilst still retaining control of the assets. An advantage of revocable trusts is that it avoids the often lengthy probate process. With an irrevocable trust, ownership of the assets is turned over to the trustee. The trust becomes, for tax purposes, a separate entity, and the asset cannot be

removed, nor can changes be made by the grantor. Wealthy individuals with large estates often use this type of trust to reduce estate taxes and avoid probate. Corporate Trust A corporate trust is a trust set up for the administration of a company’s debt (whether bond/debenture issues or bank loans). The trustee ensures that the company performs its covenants to the bondholders/debenture holders and its lenders (beneficiaries of the trust). The corporate trustee enforces the security issued by the company on behalf of the beneficiaries. Public Trust Public trust is created for the promotion of public welfare. Public trusts are usually created as charitable trust (defined below). However, Public trusts have also been used in Mutual funds and /or unit trust schemes to protect the interest of investors (beneficiaries) in these schemes. Specific uses of Trust It’s important to ascertain what specific purpose a trust vehicle would accomplish before setting it up. The following are some of the many uses of trusts: • A family or living trust is a trust set up to benefit members of your family. The purpose of the family trust is for you to progressively transfer your assets to the trust, so that legally you own no assets yourself, whilst, through the trust, you still have some control over, and get the benefit of, these assets. You can set up a family trust either while you are still alive (by a declarationof trustcontainedinatrustdeed)orwhen you die (by the terms of your will). • A spendthrift trust is a trust created to protect your beneficiary if he/she is too young or does not have the requisite ability to handle money. The trust gives an independent trustee full authority to make decisions as to how the trust funds may be spent for the benefit of the beneficiary. Creditors of the beneficiary generally cannot reach the funds in the trust, and the funds are not actually under the control of the beneficiary. • A charitable trust is an irrevocable trust established for charitable purposes, it may be set up inter vivos, during a donor's life, as part of a trust or Will at death, as testamentary. • A life insurance trust is an irrevocable and nonamendable trust. Upon the death of the insured, the trustee invests the insurance proceeds and administers the trust for one or more beneficiaries. An insurance trust empowers the trustee to lend money to or purchase assets from the estate. If the trust owns insurance on the life of a married person, the noninsured spouse and children are often beneficiaries of the insurance trust. • An asset-protection trust is any form of trust which provides for funds to be held on a discretionary basis and covers a wide spectrum of legal structures. Such trusts are set up in an attempt to avoid or mitigate the effects of taxation, divorce and bankruptcy on the beneficiary. • A special needs trust is created to ensure that beneficiaries who are disabled or mentally ill can enjoy the use of property which is intended to be held for their benefit. • A blind trust is a financial arrangement often used by high-ranking government officials to shield themselves from allegations that their personal financial concerns influence official actions. A trustee invests an official's money without disclosing specific assets in the portfolio. This prevents the underlying asset owner (“the Settlor”), while in an official public capacity, from being charged with favouring companies in which he owns stock or has an interest.

Blind Trusts have been used by political office holders including Presidents of the United States and political leaders around the world. Advantages of Blind Trust • Likelihood of any appearance of impropriety in policy decisions affecting the investment is avoided or reduced • It offers asset protection in that the settlor is “divorced” from the assets with the benefit that those assets in the trust are not available to his creditors Disadvantages of Blind Trust • The Settlor has no control over the trust assets as full discretion is given to the Trustee • The Settlor is barred from having any knowledge of the Trust’s holdings or assets to avoid any appearance of impropriety in dealing with those companies in which he has assets as a public officer • The Settlor is also precluded from receiving any regular updates on transfers of and sale of the assets in the Blind Trust Roles of Trustees A trustee can be an individual (natural person) or a corporate legal entity (a company/artificial person). Please note that reference to word “he/she” includes a company. • A trustee stands in a "fiduciary" role with respect to the beneficiaries of the trust, both the current beneficiaries and any named beneficiaries to receive trust assets upon the death of those entitled to income or principal. A trustee’s fiduciary role means that careful attention must be paid to the trust investments and disbursements of the trust funds. • He has a duty not to delegate his duties to another person-any duty which calls on him to exercise skill and judgment. This duty does not prohibit him from hiring professional experts such as lawyers, estate valuers and accountants to evaluate the investments for their suitability to the trust and its objects. • The trustee has the duty to treat all of the beneficiaries impartially. He must not favour one beneficiary over another. If he is unable to remain impartial, and exercise his trustee duties in good faith, he may be held liable for loss or damage suffered by the beneficiary. • He owes a duty of loyalty to the beneficiaries to administer the trust solely in their best interests, and put aside his own self-interests. His personal interest must not conflict with the interest of the beneficiaries. • He has a duty to separate and set aside the trust property and is required to keep the trust property separate from his own property. If the trustee should co-mingle his property with the trust's property, he may be held liable for any losses that could result from the co-mingling and breach of trust. Benefits of using a Professional Trustee The choice of appointing an individual or institution (Professional trustee) to be responsible for investing and managing or distributing your estate is one of the most important business decisions in executing an estate plan and preserving your family heritage. The following are the benefits of selecting a Professional trustee to manage your assets and estate: • A Professional trustee is better equipped with requisite skills to manage your investment, tax, and interpersonal issues. • Professional trustees have continuity because the company as a business entity does not rely on an individual’s life span, but continues to administer the settlors’ estate or interest long after the contracting parties may have passed away. • Professionaltrusteesarebetterplacedtomakefuture amendmentstothedeclarationof thetruststhatcould

be necessary to achieve the objects of the trust. Trust Deed Atrustdeedisthelegaldocumentgoverningthetrust and the terms and conditions under which the trustee,settlorandbeneficiariesmakeuseof thetrust assets, their investment and distribution. The trust deed must be read carefully, both now and when any questions arise. The Trust Deed must serve as road map to be followed, whether about when and how to distribute income and principal or what reports need to be made to beneficiaries. INVESTMENT ONE Trust Services At INVESTMENT ONE,weofferthe followingtrust services: • Private Trust We help our clients set up trust whereby their wealth and asset are transferred to the trustee for the benefit of the desired beneficiaries. Under private trust, we help our clients establish appropriate estate planning devices in accordance with their expressed wishes. This gives you the additional advantage of your wishes being carried out perfectly without fear or favour. As professional asset managers, we offer you sound and prudent management of your assets as we help you to accumulate more wealth through prudent investment for you and your successive generations. We also provide investment management services; securities market advice and securities brokerage services; investment strategy; portfolio and real estate management; and safekeeping of valuable assets. • Living Trust Our living trust (inter vivos trust) package will help you structure how your wealth should be managed in your lifetime and distributed after your death. A living trust presents you with numerous advantages such as confidentiality as details of your trust are not subject to public scrutiny thereby making it more difficult for third parties to challenge the distribution of your estate; the legal formalities of a Will are dispensed with. • Corporate Trust We act as debenture trustee or security trustee in syndicated lending transactions, protecting the interest of the lenders (banks) in the borrowing company’s secured assets and ensuring that covenants and undertakings by the borrowing company are regularly complied with. We also enforce security in the event that the borrowing company fails or defaults in its obligations to the lenders. • Public Trust Our role in mutual funds, unit trust schemes and real estate investment trusts, is to protect the interest of the unit holders by exercising oversight functions over the activities of the fund managers and ensuring their compliance with the Investment and Securities Act, the rules and regulations made pursuant thereto and the Trust Deed in particular. We also act as bond trustee to local and international Bond Issues by making certain that interest payments and principal repayments are met by the Issuer as they fall due and the issuer performs its obligations without fail. We represent the interest of note holders in note issuance programmes as the note trustee. A well-structured trust deed by a professional trustee can provide you with sound and prudent management of your assets as well as help you accumulate more wealth to ensure peace of mind for you and

Your decision to call a professional investment adviser may just be what you need to enable you properly apply your investment plans towards achieving your investment objective. Please join us next week Monday to learn more on how you can successfully navigate the investment waters. Kindly let us know if you have found this article useful. Please contact us at: enquiries@investment-one.com. You can download related articles on INVESTMENT ONE education series at www.investment-one.com

INTERNATIONAL ECONOMY 21

THE GUARDIAN, Monday, April 1, 2013

Employment figure rises in 42 U.S. states AYROLLS grew in 42 P United States (U.S.) states in February and the unemployment rate fell in 22, showing the labor market improved in a broad swath of the world’s largest economy. Texas led with an 80,600 hiring increase, the biggest in data going back to 1982, followed by California with 41,200, according to figures from the Labor Department in Washington. Rhode Island, Vermont, California and New Jersey showed the biggest declines in unemployment rates. Employers hired 236,000 workers in February, almost

twice the 119,000 increase a month earlier, and figures from the Labour Department showed earlier this month. The figures help explain why consumer spending, which accounts for about 70 per cent of the economy, has been holding up in the face of a two percentage-point increase in the payroll tax. “Labor market conditions continue to improve,” Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit, said before the report. “The consumer has shown a lot of resilience.” Price is the top forecaster of employment

for the past two years, according to data compiled by Bloomberg. Connecticut and Nevada showed the biggest declines in employment last month, the report showed. Even as the jump in employment pushed California’s jobless rate down to 9.6 per cent, it still tied Mississippi and Nevada as the highest in the nation. North Dakota’s rate remained the lowest, at 3.3 per cent. Two states, Illinois and Wisconsin, showed statistically significant increases in the unemployment rate, the report said.

Nationally, the unemployment rate fell to 7.7 per cent in February, a four-year low, from 7.9 per cent in the prior month, a Labor Department report showed earlier this month. The February state data are due on April 19. State and local employment data are derived independently from the national statistics, which are typically released on the first Friday of every month. The state figures are subject to larger sampling errors because they come from smaller surveys, making the national figures more reliable, according to the gov-

Fed Chairman Ben S. Bernanke said last week the central bank would alter monthly buying in response to gains in the job market, underscoring a need for flexibility. He said further gains would be needed to be sure ‘this is not a temporary improvement.’ ernment’s Bureau of Labor Statistics. Federal Reserve officials have said they are waiting for “substantial” gains in the labour market before they put the brakes on monthly purchases of $85 billion in Treasuries and mortgage-backed securities.

White House

… As consumer spending peaks in five months ONSUMER spending climbed in February by C the most in five months and confidence unexpectedly improved in March, showing jobmarket gains are helping Americans overcome tax increases and concern about federal budget cuts. Purchases, which account for about 70 per cent of the economy, rose 0.7 per cent after a 0.4 per cent advance the prior month that was bigger than previously estimated, according to Commerce Department data in Washington. Another report showed consumer sentiment advanced to a four-month high. Record stock prices and rising home values combined with gains in wages are helping households repair finances left in shreds by the recession, making it easier to cope with a two percentage-point increase in the payroll tax. The pickup in spending at retailers including Macy’s Inc. (M) is giving the world’s largest economy a boost just as efforts to narrow the budget deficit prompt government cutbacks. “The economy is in a very good place right now ahead of the fiscal restraint,” said Chris Rupkey, chief financial economist at Bank of TokyoMitsubishi UFJ Ltd. in New York. “There are no signs in the data that the expiration of the payroll-tax cut is affecting consumers whatsoever. This recovery is sustainable.” Consumer confidence climbed this month as Americans grew more optimistic about the outlook for the economy. The Thomson Reuters/University of Michigan’s final March sentiment index rose to 78.6, exceeding all estimates in a Bloomberg survey, from 77.6 in February. The 6.8-point revision from a preliminary March reading of 71.8, released two weeks ago, was the largest on record, according to econo-

mists at JPMorgan Chase and Co. and Barclays Plc in New York. Economists projected a final reading of 72.6, according to the Bloomberg survey median. “Consumers discounted the administration’s warning about economic catastrophe following the cuts in federal spending, and consumers have renewed their expectations that job gains will accelerate in the months ahead,” Richard Curtin, the sentiment survey’s chief economist, said in a statement. The gauge of expectations six months from now, which more closely projects the direction of consumer spending, also advanced to a fourmonth high. The group’s index of current conditions, which measures whether Americans think it’s a good time to make big investments and gauges consumers’ views of their personal finances, matched November as the strongest reading since January 2008. Last month’s increase in consumer spending beat the median forecast of a 0.6 percent rise in a Bloomberg survey of 78 economists. Some merchants are projecting the pace of sales will be sustained. Macy’s, the second-largest U.S. department-store chain, said sales at stores open at least a year will rise 3.5 percent this year, after growing 3.7 percent in 2012. “We think the customer is OK, not particularly strong, not particularly weak,” Karen Hoguet, chief financial officer at Cincinnati, Ohio-based Macy’s, said at a March 14 conference. “We look at the momentum we have coming into the year and we feel quite confident.” At the same time, “that doesn’t mean that we’re not cognizant of all that’s going on in Washington and what’s gone on with the payroll tax,” she said. Figures at the weekend from the Labor Department showed payrolls climbed in 42

states in February, while the jobless rate dropped in 22. Texas led with an 80,600 hiring increase, the biggest in data going back to 1982, followed by California with 41,200. Rhode Island, Vermont, California and New Jersey showed the biggest declines in unemployment rates. The Commerce Department’s report showed incomes increased 1.1 percent, exceeding the 0.8 per cent advance projected by economists surveyed. The gain in February followed a 3.7 per cent drop the prior month that reflected, in part, the higher payroll tax rate. The saving rate increased to 2.6 per cent from 2.2 per cent in January, which was the lowest since August 2007. Wages and salaries climbed 0.6 percent after falling 0.6 per cent. Figures for both months were reduced by $15 billion at a yearly rate, reflecting the impact of the accelerated bonuses paid out last year before tax rates climbed. Disposable income, or the money left over after taxes, rose 0.7 per cent after adjusting for inflation. It dropped 4 percent in the prior month. Adjusting consumer spending for inflation, which renders the figures used to calculate gross domestic product, purchases rose 0.3 per cent for a second month, report showed. An index of prices tied to spending patterns increased 1.3 per cent from February 2012, the same as in January. The gain is below the Federal Reserve’s goal of keeping inflation around two per cent, leaving policy makers room to keep pumping money into financial markets to spur growth and reduce unemployment. The so-called core measure, which excludes food and fuel costs, rose 0.1 percent from the prior month, and was also up 1.3 percent from February 2012. The economy grew at a 0.4 per cent annual rate

in the fourth quarter, following a 3.1 percent gain in the previous three months, revised figures showed. The fourth-quarter slowdown was due to the biggest slump in military spending since 1972 and slower inventory building. Consumer purchases rose at a 1.8 percent rate, revised down from a prior estimate of 2.1 per cent. Economic growth will move up to a 2 percent rate in the first quarter, according to the median estimate of 73 economists surveyed by Bloomberg from March 8 to March 13. Incomes are being buoyed by payroll growth. Employers added a net 236,000 workers in February after a 119,000 increase the prior month. Average hourly earnings climbed 2.1 percent from February 2012, matching the yearover-year gains in the previous two months as the strongest since Williams-Sonoma Inc. (WSM) is among retailers enjoying a pickup in sales. Same-store purchases at the San Franciscobased company’s West Elm home-goods chain increased 19 per cent in the fiscal fourth quarter, while sales at Pottery Barn Kids advanced 7.7 per cent. Spending on big-ticket items like automobiles is also growing as households replace older vehicles and take advantage of low borrowing costs. Cars and light trucks sold at a 15.3 million yearly rate in February after a 15.2 million pace the prior month, Ward’s Automotive Group data showed. Rising stock prices and a recovering housing market are helping boost household finances. The Standard & Poor’s 500 Index closed at a record high of 1,569.19. The S&P/Case-Shiller of property values in 20 U.S. cities jumped 8.1 percent in the 12 months to January, the biggest year-to-year gain since June 2006.

THE GUARDIAN, Monday, April 1, 2013

Insurance Insurers solicit stakeholders’ support to drive retail market of basic infrastrucLtheACK ture in different parts of country, poor perception of insurance business, are some of the factors insurers gave as militating against retail insurance market distribution in the country. Operators speaking at different forum in the industry, acknowledged the importance of the industry as risk bearer, pleaded with stakeholders to support the efforts of the National

Insurance Commission (NAICOM) road map to deepen insurance penetration in the country, presently put at less than six per cent. According to the risk managers, although it is in the interest of the government and entire citizenry to support the development of the insurance industry, because of its strategic role in the economy, access to insurance is still very low particularly in the rural areas, as more than 40 per cent of

Nigerians do not have any knowledge of what insurance is all about and its benefits. The Group Managing Director, Mutual Benefits Assurance Plc, Akin Ogunbiyi, speaking of the positive role of insurance in promoting economic ventures and investments, explained that insurance anywhere in the world especially in developed countries of the world were actually tools for wealth creation, and

there was really no growth or development that could actually come unless the insurance industry was strong, reliable and was able to play the role as major mover of the economy. Besides, he said, the Nigerian economy was a rent economy where everything depended on the Federal Government, everything depended on the national budget, but if the national economy had to witness the growth and

Ag. Managing Director, Trustfund Pensions Plc, Mrs. Helen Da-Souza and Company Secretary/Legal Adviser, Malam Musa Nasr, attending to customers at the company’s nationwide Customers Day, at the Federal Secretariat, Abuja ... at the weekend.

Insurers worldwide focus on reducing costs

AVING experienced a H decline in profitability as a result of the global financial

crisis, insurance companies worldwide are refocusing their internal operations, with attention on reducing costs and improving the efficiency of their business processes through transforming policy administration, according to the Capgemini and Efma 2012 World Insurance Report released today. The 2012 World Insurance Report explores ways insurers can dissect their business to identify opportunities that will make fundamental and lasting improvements to their core operations. It draws on research insights from 19 markets including: Australia, Austria, Belgium, Brazil, Canada, Denmark, France, Germany, Hong Kong, India, Italy, the Netherlands, Philippines, Singapore, Spain, Switzerland, the United Kingdom, the United States and Vietnam. Based on a comprehensive body of research, the report features an exclusive Business Agility1 and

Policy Administration Transformation Survey conducted via in-depth interviews with 71 insurance executives. The report draws three clear conclusions: Managing costs and efficiencies are critical levers of Insurers’ performance, Insurers indicate policy administration as their next priority, Making investments in several policy administration sub-functions is important for insurers to achieve business agility in the years

ahead Costs and Efficiencies Are the Critical Levers of Performance Today: Although premium volumes are rising in some markets, few insurers are in a competitive position to raise rates. Additionally, many insurers face the difficult task of growing the top line as customers increasingly focus on price and the industry’s commoditization. Insurers, especially in non-life (i.e. Property & Casualty), need

to achieve sustained performance in the coming years and emphasize key components of underwriting performance. They also need to consider ways to minimize claims, acquisition and other operational costs while growing their business. Core operational functions, such as policy administration, offer one of the few remaining areas in which transformation can deliver both cost savings and customer benefits.

Standard Alliance directors undergo IFRS training HE Management of T Standard Alliance Insurance Plc and its sister company, Standard Alliance Life Assurance Limited, in line with their culture of regularly updating their key officers on best industry practices, have concluded an International Financial Reporting Standard and Enterprise Risk Management training for their directors, audit committee members and key management staff in a two-day

session held in Lagos. A release signed by the underwriting companies’ Group Corporate Communications Manager, Mr. Nelson Egboboh, at the weekend explained that “the training was important to make our directors, audit committee members and key management staff conversant with the IFRS and risk management practices.” The two-day training session was strategic, noting that with

this training, we are sure of raising and making our standard of handling financial reporting and risk management issues a template for the insurance industry in Nigeria. It would be recalled that the Financial Reporting Council of Nigeria and the National Insurance Commission (NAICOM) make it mandatory for companies to train their directors and other key management staff to enhance their knowledge about inter-

development it desired, the private sector had to be well mobilised through enabling environment, through policies and programmes that would actually allow direct foreign investment to be channeled to the right sectors of the economy. According to him, because of the important role in the economy, we need the support of everybody to support NAICOM to implement the Market Development and Restructuring Initiatives (MDRI) particularly in the rural areas of this country. To this end, he said, Mutual has set aside N1 billion as project seed fund for products, product distribution and customer service. Besides, our study two years ago identified that access to insurance was a major problem, thus Mutual targets 200 new offices slated for opening between 2012 to 2015, 32 opened in 2012, the number to reach 70 by December, 2013 to bring existing and new offices of Mutual nationwide to 96 by December, 2013. The Managing Director and chief executive, Riskguard Africa, Chief Yemi Soladoye, in his remark said it will interesting to know that we have been misled for so many years believing that Nigerians do not like insurance, the report revealed that 40 per cent of Nigerians do not have any opinion about what insurance is all about either negative or positive. He said that there are basic problems of access to insurance usage, the mortgage

sector has not seen the usefulness of insurance in their business. Low level of awareness is another problem and the irrelevant products in the market. He said: “When you look at other country’s insurance law and compare with our Insurance Act, the insurance regulator has self executing power which enables them to handle any company that may breach any part of the insurance law. When you read our own insurance law, it acts as another body. The law enforcement agents do not know the importance of the insurance activities, as far as motor insurance is concerned. There is no education on the side of the people and until all these is addressed, when the law is reviewed and the regulator have some reasonable level of autonomy, when it has executing power in the market, then we will be there” According to him, our law is narrow and restrictive in so many areas, though it has been reviewed now but until the new one is out, it does not give the regulator any power to execute. Look through the relevant parts of the law, the stages the regulator will go through before it can withdraw the licence of an operator, it will take NAICOM five months before the process is completed to revoke the licence of an operator. Thereafter, the Minister of Finance can still reverse the decision. Essentially, a regulator in that kind of environment will see the exercise as a career-threatening venture.

NAICOM facilitates N1.2b claims settlement in 2012 TOTAL of N1,220,645,790.09 A claims were settled through the intervention of the National Insurance Commission (NAICOM) in 2012 involving a total of 52 cases. This is heartwarming and a message to policyholders that they now have a listening ears in NAICOM. NAICOM intervention in claims dispute resolution related to Motor, Marine and Life insurances as well as Bond Issues and Pension matters. The complaints were received from individual policyholders, beneficiaries, government agencies, SERVICOM, Legal Aid Council and Public Complaints Commission. During the year, the Complaints Bureau handled a total of 349 cases, 86 of which were fresh complaints with the remaining 263 being ongoing cases. The increase in the number of complaints received was as a result of the various publicity campaigns embarked upon by the Commission, which has made members of the public, and, in particular, policyhold-

ers to be more informed of the Commission’s window of dispute resolution, which is not only effective but timely. The Complaints Bureau discharges its responsibilities either through correspondences with the insurance companies’ involved or through adjudication. During the year under review, a total of nine adjudication meetings were held while majority of the disputes resolved were through correspondences. It is noteworthy that the response and cooperation of insurance companies involved in any dispute with policyholders has been very encouraging. During the year, not less than 85 per cent of the insurance institutions responded to queries or directives issued by the Commission for claims settlement. The Complaints Bureau is the Unit solely responsible for receiving and processing complaints against insurance companies for non-settlement claims in the Commission.

THE GUARDIAN, Monday, April 1 , 2013

Stockwatch In association with Lead Capital

Stock Market Report for the week Friday, 22nd March to Wednesday 27th March, 2013 n this week, the total vol- ANNOUNCEMENT AJOR equity markets around the I14.20% ume depreciated by globe moved downwards as their M URING the period under review, thirty four and value traded various indexes lost marginal points. In (34) stocks recorded price appreciation D depreciated by 28.18%. A our universe of sample equity markets; compared to twenty (20) that depreciated in the S & P 500 and Dow Jones gained points by 0.32% and 0.33% respectively, while the NASDAQ lost points by 0.05% at the end of last week. In Europe, The German Dax, FTSE 100 and France CAC 40 lost points by 1.53%, 0.84% and 2.11% respectively. In the Asia/Pacific region, Hangseng gained points by 1.08%, while the Nikkei 225 and BSE Sensex lost points by 1.12% and 0.47% respectively. In Brazil, the Bovespa lost point by 0.64% while Russia’s RTS INDEX lost points by 2.95%. On the local setting, NSE ASI closed at 33,468.88 recording 0.32% appreciation at the end of the week’s trading.

turnover of 1.45 billion units of shares valued at N13.05 billion was recorded, in contrast to a turnover of 1.69billion units of shares worth N18.17 billion that was recorded in the previous week. Volume this week was driven by activities in the shares of UNITYBNK, ACCESS, WEMABANK, UBA, ZENITHBANK, TRANSCORP, GUARANTY, CUSTODYINS, NPFMCRFBK and FBNH.

the previous week, WEMABANK was first on the top gainers chart to close with 29.85%, followed by LIVESTOCK with 20.85%, OKOMUOIL with 19.66%, AIRSERVICE with 16.05%, MCNICHOLS with 9.52% and NESTLE with 8.05%. Other gainers in the top ten categories were WAPIC with 6.72%, BERGER with 6.43%, JAPAULOIL with 6.25% and MANSARD with 5.20%. On the flip side, thirty nine (39) stocks depreciated in price last week compared to forty eight (48) that depreciated a week ago. CCNN led on the price losers’ table with 16.67%, followed by IPWA by 16.47%, AFRIPRUD by 10.05%, PZ by 9.38%, PAINTCOM by 9.38%, VITAFOAM by 9.33%, UBCAP by 7.52%, UNITYBANK by 5.95%, UBA by 5.51% and TRANSCORP by 5.37%.

24 STOCKWATCH

THE GUARDIAN, Monday, April 1, 2013

Lead Capital Stock Valuation

COMPANY’S RESULT

CONTINUE ON PAGE 41

THE GUARDIAN, Monday, April 1, 2013

Homes & Property French agency, Lagos plan new solid waste, slum upgrading schemes Page 26

Govt has to create avenue to ease approval, permitting processes, says UPDC boss Page 36

Mainland Park: Pentagon pledges affordable properties Page 27

Mortgage operators hail new CBN deadline for PMBs’ consolidation Mortgage Finance By Chinedum Uwaegbulam, Assistant Housing & Environment Editor ITH the mortgage secW tor still caught in a battle for survival, triggering fresh changes now sweeping through the housing finance sub-sector, promoters of the Primary Mortgage Banks (PMBs) have lauded the Central Bank of Nigeria (CBN) for dousing the tension that engulfed the sector by effecting a change in the deadline for compliance with new minimum capital requirements. The development, which came last week through a circular signed by the Director, CBN’s Other Financial Institutions Supervision Department, Mr. Olufemi Fabamwo to all PMBs directors and shareholders extended the deadline for compliance with the Revised Guidelines for Primary Mortgage Banks (PMBs) from April 30, 2013 to December 31, 2013. According to CBN, the shift in date is meant, “ to afford all affected PMBs sufficient time to exercise any of the options for capital raising, business combination and downscaling. All PMBs are once again strongly advised to conduct due diligence and seek professional advice

CBN Governor, Lamido Sanusi

MBAN President, Femi Johnson

Mortgage firms already fleshing up their operations in the housing finance industry, in line with the new guideline byCBN to upgrade their minimum paid up capital to N2.5 billion or N5 billion, heeved a sigh of relief last week with the eight months extension granted to the sector in exercising any of the options and to conclude the processes before the new deadline in order to allow sufficient time for capital verification and necessary regulatory approvals.

The circular also stated that “all directors, particularly the Managing Directors/CEOs of all PMBs are again reminded that prior approval of the CBN is required before the disposal

of assets of the bank, as they will be held jointly and severally liable for any asset stripping.” Under the fresh guidelines, mortgage firms have been categorized into National

and State mortgage firms, while the National PMIs are allowed to operate in any or all parts of the federation after the payment of a new N5 billion minimum paid up capital, the State PMIs are restricted to only one state at the payment of N2.5 billion. The announcement of the shift in deadline has come just a month to the initial

deadline, and thus, most mortgage banks have already met the new stipulated minimum capital. The CBN, even though they had April 30th 2013 as the initial deadline, had requested that Mortgage Banks should recapitalise fully by the end of March in order to give them (CBN) the whole of April for the verification of the capital raised, as such most mortgage banks had raised their capital already bearing in mind the 31st of March requested by CBN. President, Mortgage Banking Association of Nigeria (MBAN), Mr. Femi Johnson told The Guardian that the shift in deadline for the recapitalisation of Mortgage banks is a welcome development, as it means that most mortgage banks will remain after the capital raising exercise, as it affords them more time to conclude on their plans. “The mortgage banks more favoured are those undergoing some form of business combination by way of mergers or acquisitions. As we know, the new laws stipulate that whether a company is quoted or not, the Security and Exchange Commission (SEC) must approve any form of business combination, as such, the process would require a

CONTINUED ON PAGE 30

Experts lament exclusion of low-income earners in Lagos housing schemes Housing By Tunde Alao, Emmanuel Badejo and Tosin Fodeke ILL low-income earners W have a veritable portion in the numerous housing

An estate in Lagos

estates being undertaken by the Lagos State Government? Do their take home pay enough to make them clinch one of the homes built or under construction by the administration of Governor Babatunde Fashola? These and other questions are repeatedly being asked as experts, who, after reviewing the housing projects throughout the state, concluded that lowincome earners might loose out in the long run. But the state has debunked the claim, saying its steps towards providing homes for her citizens, is in good fate and direction, such that

The conclusion of the experts is that despite the continues slogan of housing provision by the Lagos State Government, low-income earners seem to be excluded in the housing schemes, therefore calling for mass production of estate, using alternative building materials will ensure inclusion of all cadre of the people qualified to key into its housing largesse. Provision of affordable housing has been said to be one of the cardinal programmes of Governor Fashola, an administration that has more than 15 housing estates, both completed and ongoing ones on its stable. These estates are of various house types, ranging from 3-1 Bedroom flats, to one bedroom apartment. Indeed, the geometrical proportion of population growth in the metropolitan

Lagos has not helped matter, as the provision of urban infrastructure and housing to meet this demand is, not at commensurate level. This has further heightens acute shortage of housing to the teeming population with Lagos alone accounting for about 5 million deficit representing 31 per cent of the estimated national housing deficit of 18 million. No doubt, the extent of the housing shortage in Lagos is enormous. The inadequacies are farreaching and the deficit is

CONTINUED ON PAGE 30

26 HOMES&PROPERTY

THE GUARDIAN, Monday, April 1, 2013

Makoko...a slum in Lagos

French agency, Lagos plan new solid waste, slum upgrading schemes Urban Renewal By Chinedum Uwaegbulam

FRESH vista for development is underway in A Lagos, especially within a select group of slum settlements and urban area, which will ensure an improved standard of living; solid wastes disposal in an environmentally and socially satisfactory manner. The new initiative, The Guardian learnt is being promoted by Lagos State

The initiative includes support to the Lagos State Urban Renewal Authority (LASURA) for upgrading of one or several areas within five largest and oldest slums in Lagos, which together host between 900,000 and 1.1 million inhabitants - Ajegunle, Badia, Amukoko, Makoko and Bariga. Government, through the Federal Government and financed under the French Development Agency (FDA) urban projects for Slum Upgrading and Solid Waste Management. Recently, Federal Government approved another FDA’s loan facility

of over $77 million for urban water project in Lagos and Cross River States. “Cross River State will receive take $43.92m while Lagos State is billed to receive $33.83m.The loan is being given on concessionary ground to

these two states to rehabilitate Urban Water Works in Lagos and Cross River states. But under the new funding, Lagos intends to apply part of the proceeds for the Needs Assessment and Feasibility Study for an

New NIQS Abuja exco tasked on transparency in projects’ execution Professional Practice EMBERS of the M Nigerian Institute of Quantity Surveyors (NIQS), Federal Capital Territory (FCT) has elected a new executive to run its affairs. At the occasion, Mr. Mohammed Abba, the newly inaugurated chairman and Senate members of the NIQS FCT Chapter to pursue transparency in construction projects in the country. The call was made at the investiture of the Chairman and Senate members held in Abuja. The President of the NIQS, Mr. Agele Alufohai in his Goodwill message themed: “I Have a Dream”, said the newly inaugurated

Chairman and the senate members have a special role to play in the institute, saying that surveyors want 2013 to be a watershed, a turning point in their contribution to national economic development. “If surveyors aspirations of national transformation is to be anything more than a dream, they need to impress it on the political and bureaucratic managers of our economy and specifically, of infrastructure projects. Surveyors have to join developed and emerging economies and make the engagement of cost management professionals in procurement routine” Alufohai said. In a related development, NIQS president has stated

that the provision of more fundamental infrastructure such as roads, bridges and ports will generate thousands of jobs, making existing economic activities more efficient and attract more investment into the economy. He stated this at the 43rd Annual Conference of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Alufohai urged all professional associations to join forces in order to move the country forward. He also urged the government to implement policies that will multiply the flow of private and public investments into infrastructure and strengthen Nigeria’s Public Private Partnership

Alufohai

(PPP). “It is regrettable that PPP deals are not being announced despite formal Government commitment to building infrastructure through PPPs,” he said.

intervention by FDA in the urban sector in Lagos, which consists three comp o n e n t s : ONE: Support to the Lagos State Urban Renewal Authority (LASURA) for upgrading of one or several areas within five largest and oldest slums in Lagos, which together host between 900,000 and 1.1 million inhabitants: Ajegunle, Badia, Amukoko, Makoko and Bariga. TWO: Support to the Lagos Waste Management Authority (LAWMA) for the construction of solid waste management facilities for the whole city and improvement of solid waste management into the five selected slums where the public service is impeded by lack of accessib i l i t y ; THREE: Support to the programme management activities by the Development Partnership Department (DPD) of Lagos Stale, in order to ensure coordination of the two components and communication among the various ministries and implementing agencies. Amongst other services that will be provided through the project include, the preparation of a diagnosis and a needs assessment on the urban renewal, and solid waste management components, which will give elements of arbitration to refine the scope of the p r o j e c t ; Sources disclosed that for

each slum within the scope of the urban renewal component, a ‘Slum Development Plan’, to be considered as an urban upgrading redevelopment action plan that will include a portfolio of ‘Intervention Packages’, that is to say single investment projects or intervent i o n s . Similarly, there will be a ‘facility development programme’ for the solid waste management component, to be considered as an action plan that will include a portfolio of ‘Investment Packages’, like infrastructural investment p r o j e c t s . There will also be ‘program operational manual’ which should describe for each component the processes and systems for the program implementation including legal, financial and technical aspects, roles and responsibilities of the stakeholders at the different stages of the program preparation and implementation; The development plan will also have ‘capacity building plan’ for the stakeholders to ensure adequate management and coordination of the program, as well as the durability of its impacts as well as preliminary design studies, programme design and tender documents, up to the point whereby the programme can be tendered and implemented.

THE GUARDIAN, Monday, April 1, 2013

Prime Estates Mainland Park: Pentagon pledges affordable properties Housing By Olawunmi Ojo AGOS-BASED property firm, Pentagon Real Estate Investment Limited has consolidated its drive to ease the housing challenge in the country through the provision of affordable housing to Nigerians in its Mainland Park. Designed for high networth and medium income level residents, the estate, which is segmented into two forms, is located at Mowe, along Lagos-Ibadan Expressway about 48km from Lagos, just after Redemption Camp and opposite the proposed University of Management Sciences. The first, the developed property segment, which comprises of 1, 000 units of 3, 4-bedroom, duplexes and apartments buildings, sits on 70 hectares. On the other hand, the serviced plots segment, which is about 4,000 plots, is bought by individual suscribers who, in turn, are building structures in compliance with guidelines and layout designed by the private developer. Already, about 50 units of developed houses have been completed and fully suscribed to. The purchase price of the least top-of-therange finished houses goes for N12.5 while the highest, which is a detached duplex with all rooms ensuite and with Boys-Quarters goes for N29.5million. The project, which is in its second year, has a six-year building projection. Recently, the company presented land allocation papers to some subscribers under its site and services scheme at the Mainland Park. Proposed amenities include underground

One of the recently completed units at the Mainland Park, Mowe, Ogun State recently According to Pentagon’s two forms: Mainland Park chief executive officer, Mr City and Mainland Park Kennedy Okoruwa, in line Regal. The residential with the mission of the scheme aims at offering for company to ensure people sale, serviced plots and properties. reside in excellent environ- developed ment, hectares of lands Ownership of land under with full legal documents PREIL scheme is without are acquired, planned into stress. Payments are made efficient layouts and pack- flexible and affordable with no cause for anxiety as aged for sale. “The plots are organized to lands are free of encumensure spacious buildable brances and possesses the Certificate of areas, quality landscape Global and working security that Occupancy,” Okoruwa said. Okoruwa added that the goes with decent communal life. The development Mainland Park Regal is a structure for the estate is in home ownership scheme

cabling, tarred road, drainage network, street lights, 24-hour security, and CCTV cameras. According to the promoters “Mainland Park is a unique city that must be experienced. It offers a distinct neighbourhood life that harborus superb residential, recreational, and commercial facilities, in addition to amazing infrastructural tentacles that welcomes a population of visionary people with high premium on excellence and quality.”

that enables people to own a dwelling of their own in the face of the protracted challenges of the housing market. “The estate provides the appropriate blending for all aspects of interactive human activities which include residential, commercial, educational, institutional, and recreational, inclusive of services. Its proactive transition from dream to decision and to domain is centered at maximizing users’ satisfaction in terms of cost, time and quality.

“It is a rich package of treasured buildings and state-of-the-art infrastructure in a sustainable environment The conceptual layout of the estate allows for openness and flexibility in the zoning of buildings and infrastructures, the circulation concept encourages unhindered traffic flow both ingress and egress, for people and services. The general atmosphere guarantees adequate security under a very efficient management system.”

28 HOMES&PROPERTY

THE GUARDIAN, Monday, April 1, 2013

Lopec Engineering leads Epe-Marina shoreline project contract The state government plans to harness the tourism potential of Epe and it’s environ through meaningful developmental projects such as luxury real estate scheme and recreational facilities, which will boosting real estate development in the corridor

Contracts Stories by Tunde Alao XPECTED to jumpstart tourism and real estate business in the township among other things, the Lagos State Government has finally commenced a major infrastructural redevelopment scheme, known as Epe-Marina Waterfront Project, located within the old settlement in Epe. Conceived by the Lagos State Ministry of Works and Infrastructure, the scheme is designed, among others, to facilitate a luxury real estate scheme within the waterfront, targeted at the highest socioeconomic group of consumers. It is also to provide recreational opportunities and to boost tourism potential of the Epe Lagoon, which stretches for more than 25 kilometres eastward from Ejinrin, another river-rine community of historical significance in Lagos State. Already, the multi-million naira’ contract for the waterfront project had been awarded to Lopec Engineering and Construction Company, an

Some of the materials for the Shoreline project

indigenous Nigerian contractor. The location for the first phase of the project is historical, as it was said to be a place where a Lagos Oba, King Kosoko, berthed when he came to Epe in 1851, after running away from the colonial masters in Lagos Island. Already, sand filling and piling of about 1.1 kilometre in length and 100 metres in depth is ongoing, with various types of building materials on site. The contractor is expected to

provide shoreline protection, creation of recreational park and other amenities capable of attracting potential investors. Speaking on the project, Commissioner for Works and Infrastructure, Dr. Kadri Obafemi Hamzat, said the site represents a tourist attraction as well as historical issues, adding that what government intends to do is to harness the tourism potential of Epe and its environ through meaningful developmental projects such as development of

tourism sites and support hospitality businesses. The Commissioner at the site hinted that Governor Babatunde Fashola’s administration had decided to directly engage the communities through the traditional institutions to forestall delays in the execution of projects designed to bring infrastructural development to their domains. “It was in this context that we meet with some leading traditional rulers, including Oba Kamorudeen Animashaun, the

Oloja of Epe; Oba Babatunde Isola, Elejinrin of Ejirin and Oba Sefiu Adewale, Olu of Epe. They unanimously pledge to support the government in its determination to bring immediate development to Epe Division”. Hamzat explained that government hopes to harness the economic and tourism potential of Epe axis, as he called on communities where government projects are being located to embrace the projects in the overall interest of the state.

According to him, the essence of the project is to attract business to Epe thereby discouraging congestion in central Lagos, noting that the project, on completion would attract investors in real estate development. The Commissioner, while admitting that there had been challenges that had delayed the take off of the Marina shoreline reclamation, however, said he was happy that all the knotty issues had been resolved.

World Bank’s N1.5b intervention project gives Agege facelift Projects MID growing concern on A the increasing number of urban slum and squatter settlements, Lagos authorities have intervened in one of the blighted areas in Agege through the World bank’ slum upgrading scheme. The World Bank project involves improving the physical environment of slums. This includes improving and/or installing basic infrastructure like water, sanitation, waste collection, access roads and footpaths, and storm drainage. The project demonstrates that basic services to slums can be provided at a realistic cost if done right. According to World Bank, “slums are the products of failed policies, bad governance, corruption, inappropriate regulation, dysfunctional land markets, unresponsive financial systems, and a fundamental lack of political will. Upgrading of existing slum and squatter settlements addresses the backlog of urban neglect.” In the Agege, the project is also investing in the construction of Primary Healthcare Centres, Citizen Mediation Centres and Schools in Agege Local Government Council Area and the Orile Agege Local Council Development Area (LCDA). Last week, some of the projects were commissioned. In Lagos, the project is being executed by the Lagos Metropolitan Development and Governance Programme (LMGDP). The projects recently completed are 16 standard roads in Agege Local Government Area,

Abimbola Street, Agege, Lagos last week that covers Abimbola Street, Adenle, Ayeni, Church, Olusanya, Oremeji, Owo and Salawu Streets respectively, while Salimote Street, Soretire, Oyewole, Oguntade, Arigbanla and Ajiboye comprised the reconstructed streets in Orile Agege LCDA at the cost of N1,461,699,541.53. The Roads were built by an indigenous contractor, Laralek Ultimate Limited, a Lagos based civil engineering company.

Expressing their happiness on the projects, the Chairman, Community Development Committee (CDC), in Agege LGA, Mr. Toyin Balogun, specifically singled out the construction of Olusanya Street as “one of the best thing that would happened to the community”. Stressing the importance of the road, Balogun hinted that one of the major problems that confront the community on annual basis is flood. “But

with the completion of Olusanya Street including the drainage facilities, Agege is no longer afraid of rain”. The CDC chairman also extolled the management of LMDGP for the proposed construction of block of schools in the area. Expressed similar view, Bishop Julius Babatunde, while commended the efforts of the organization on the provision of the amenities, said the

health care centre, road projects and the proposed block of classrooms would obliterate the toga of blighted area that Agege has been wearing for a long time. At Orile Agege, CDC Chairman, Mr. Funsho Akindehin urged the LMDGP to hasten the completion of the classrooms to be constructed in Oyewole area and Methodist School. “While we are expressing the

gratitude’s of the community member to the LMDGP and the Governor of Lagos State, we want to specifically asked for the construction of Ogundele and Olowookere Streets. Speaking on the activities of his organization, the LMDGP Communications consultant, Mr. Mike Ilesanmi, said that projects involve continued participation of beneficiaries and community groups in implementation. “It is generally recognized that such grassroots participation is vital to the sustainability of the investment. There are ongoing and continuous series of consultative workshops with organized private sector, staff, and civil society as well as participation from LGs, state agencies, traditional leaders, Community Development Associations CDAs, academics, and urban practitioners to further define the roles and functional mechanisms for participation for a much needed broad debate on policy issues that affect all stakeholders in the metropolitan area”, he said, adding that such forums are targeted to policy and academic audiences and are positive steps in the State Government’s effort to engage citizens in developmental dialogue. He said that in line with the World Bank’ policy, the services developed are what people want and which they are willing to pay for; and the primary approach used in the upgrading include providing basic infrastructure and facilities without demolishing existing settlements or relocating the people.

THE GUARDIAN, Monday, April 1, 2013

HOMES&PROPERTY 29

‘Recession increases relevance of property taxes globally’ Professional Practice OUNTRIES around the C world are becoming increasingly reliant on property taxes as a major funding source for government services, according to property and tax professionals. Nearly 170 countries have a least one tax on property and over 100 have at least one recurrent tax on immovable property, according to the director, International Property Tax Institute, Gerry Divaris. He told a seminar in Los Angeles that the complex nature of property taxes often leads to blank stares and confusion among taxpayers but they are such an important source of revenue they are here to stay. Industry professionals and corporate taxpayers

The seminar hears that despite the pressures that many countries face, some property tax systems are far more developed than others. Canada, Australia and the US are among those considered advanced and generate strong revenue with a common interest in property tax attended the event co-sponsored by the IPTI and the Royal Institution of Chartered Surveyors at the offices of Ernst & Young. “Although property tax is probably the most unpopular tax on the planet, it is one of the more important taxes we have around. It has a bad name because it has such an in your face feel, but if properly deployed and properly utilised it can be really helpful,” explained Divaris. The seminar heard that

while the impact of the global recession has increased the importance of property tax, it has also created problems for individuals, corporate taxpayers, and governments. In the US as well as other countries, the economic recession, which caused mass unemployment, has made it difficult for people to pay for many of their expenses, including property taxes. In addition, businesses have seen a decline in revenue, making it more difficult to pay overhead, such as payroll and proper-

ty taxes. As a result, governments have experienced increased pressure as they are facing shortfalls in revenue, but increased demands for services. ‘Regardless of the country, we all have the same hurdles to overcome. We all have issues of economic factors, legislation, jurisprudence and valuation,’ Divaris added. The seminar hears that despite the pressures that many countries face, some property tax systems are far more developed than oth-

ers. Canada, Australia and the US are among those considered advanced and generate strong revenue, according to Divaris. The current state of property tax and assessment in the US is currently hotly debated due to a scandal in California which saw the arrest of Los Angeles County Tax Assessor John Noguez last year on charges of lowering property tax bills in exchange for campaign contributions, allegedly costing the county over $1 million in property tax revenue. Also charged were deputy assessor Mark McNeil and Noguez tax agent Ramin S a l a r i . Peter Kotschedoff, of the California Alliance of Taxpayer Advocates (CATA), a trade association representing the property tax

consulting industry, has been active in supporting or opposing actual or proposed legislation that affects taxpayers, property tax consultants and attorneys. With an eye toward improving property tax transparency, Kotschedoff said that CATA is currently supporting a proposed bill called Assembly Bill 1151, which requires property tax consultants to register with the California Secretary of State. “The climate over the past year will lead to a more controlled environment within the property tax arena,” Kotschedoff explained. Divaris said that the scandal underscores the fact that practitioners globally need to stay plugged in and understand the ongoing changes throughout the industry.

THE GUARDIAN, Monday, April 1, 2013

30 HOMES&PROPERTY

‘Low-income earners’ exclusion in housing schemes worrisome’

One of Lagos State’s newly completed estates

CONTINUED FROM PAGE 25 both quantitative and qualitative; even those households with shelter are often subjected to inhabiting woefully deficient structures as demonstrated in the multiplication of slums from 42 in 1985 to over 100. To stem the housing crisis, the Lagos State Government had a documented history of housing provision from the days of Lagos Executive Development Board [LEDB] in 1950’s. LEDB was able to delivered 4, 502 housing units, within 17 years, from 1955 to 1972 when it was dissolved with the population rising from 1.4 million in 1963 to 3.5 million in 1975. In 1972, the functions of LEDB were transferred to Lagos State Development and Property Corporation [LSDPC] as the sole agency responsible for the provision of Housing in Lagos State. Since its inception in 1972, LSDPC has been saddled with the execution of gigantic low-cost housing

program of the early eighties which yielded close to 10, 000 units. In 1979 under the leadership of Alhaji L. K. Jakande, LSDPC took a dynamic and elaborate turn with emphasis on low cost flats to cater for the needs of the low-income earners. Government realized that only the supply of housing units on a large-scale either through Government or by individuals themselves could reduce the chronic shortages. By 1992, about 17, 000 units were built in several locations which included Abesan 4, 272 units, Amuwo Odofin 2, 068, Iba 1, 560 Ijaye 812, Ijeh 62, Isolo 3, 632, Ojokoro 534. Thus between 1972 and 1999, LSDPC was able to deliver 20, 120 housing units while 1, 818 housing units were delivered from 2000 to 2010. In recent times the Ministry of Housing and Lagos Building and Investment Company [LBIC] did commence direct construction of houses in Lagos

thus compromising the mandate of LSDPC. The Ministry of Housing has constructed 18 housing estates with others under construction. The total units of this strategy are less than 5, 000 units while the LBIC intervention will yield less than 1, 500 units. Aside the direct construction approach, the Ministry and other government agencies adopted other options of delivering houses to the citizens, among which are public private partnership in housing delivery, urban renewal and regeneration program, establishment of new towns, provision of site and service scheme. The combined stock of all these strategies is less than 5, 000 units per annum in a state requiring 500, 000 units per annum to bridge the deficit of estimated 5 million over the next 10 years. Even, the recently launched Lagos Cooperative Home Ownership Incentive Scheme [Lagos – CHOIS], in

collaboration with the private sector, is expected to deliver 10, 000 housing units over the next few years at unaffordable rate of N11.6 million for a 2 bedroom apartment. While the houses for the upper income segment of the society has never been in short supply, housing for the poor has remained a vexed issue with various government programs unable to meet the deficit. Managing Director of UAC Property Development Company Plc, Mr. Hakeem Ogunniran, said affordable housing for the low-income earners is another big challenge confronting the nation’s housing industry, a situation that demands strong partnership between the public and private sectors to solve. According, low cost estates in this era of heavy investment on infrastructure, will be difficult to deliver except the processes to land acquisition are reviewed as well as governments should ensure ade-

Why CBN granted extension to PMBs, MBAN CONTINUED FROM PAGE 25 minimum of four months to c o n c l u d e . Johnson said: “The shift in deadline was necessitated by the fact that the President and the Minister of Finance/CME are very passionate about building the housing and housing finance sectors in Nigeria, and thus are coming up with various initiatives to achieve this. They want to increase the number of mortgage loans from the current 20,000 loans to over 200,000 loans within the next five years. “One of the new initiatives is the Nigeria Mortgage Refinancing Company

(NMRC) which is being set up to be a secondary mortgage bank that will refinance mortgages originated by mortgage banks and commercial banks. The World Bank has already pledged the sum of $300 million as a 40-year loan with a low interest rate to this company, and the company will be primarily owned by Mortgage Banks and Commercial banks, with a start up capital of N6 billion and it will be private sector owned and operated. According to him, “the President needs all mortgage banks on hand to ensure the success of this turn around initiative, as without mortgage banks to

originate these loans, there would be no loans for the NMRC to refinance when it commences operations, thus the CBN thought it wise to support this vision of the President by extending the deadline, in order to ensure that more mortgage banks are able to remain in b u s i n e s s . ” Johnson who doubles as the Managing Director, Homebase Mortgage Limited noted that “the same extension of deadline granted to Mortgage Banks also applies to Micro Finance Banks who have national licences and are allowed to open branches in all States in Nigeria, and whose minimum capital

was raised from N1 billion to N2 billion. The unit micro finance banks and single State micro finance banks whose minimum capital is N20 million and N100 million were not affected by the issue of raising additional capital.” An elated MBAN Executive Secretary, Mr. Kayode Omotosho refuted the notion that their members were not prepared to meet the earlier compliance date. He said: “It is not that our member- PMBs were not prepared for it, but we were working hard towards meeting the deadline, to ensure compliance, and so as not to leave room for any unforeseen circumstances.”

quate provision of infrastructure. Similarly, Chairman, Nigerian Institution of Quantity Surveyors (NIQS), Lagos Chapter, Mr. Olayemi Shonubi, said affordable housing would continue to be a mirage not only to Lagosians, but Nigerians, as interest rates of few mortgage facilities available are overbearing, stressing the need to review downward the rates. To him, high cost of building materials is another reason, why lowincome earners would be excluded from the state’s housing provision. “The state government will have the excuse of high cost of building materials when it comes to affordable housing but the truth is that there are alternatives’ building materials, which if all stakeholders in the industry come together to deliberate on will impact a lot.” He urged state governments to consider alternatives in its housing projects. Also, Mrs. Esther Thontteth, said various problems including persistent population increase, inadequate housing provision, usage of aesthetic building materials, inability of financial institution to fund long term housing programmes, misappropriation of fund meant for the masses and uncontrolled urban growth pattern, adding that these have necessitated failure of public housing delivery programmes and housing deficit in the country, especially Lagos State, as their present efforts have proved to be inadequate. “For instance, there is a construction of residential flats by Lagos State government in conjunction with Lagos Homes at Wempco, Ogba area of Lagos. This said flats are not affordable to the low income cadre as some staff of LSDPC (Lagos State Development Property

Corporation) were interviewed as to the affordability of the said construction but information got stipulated that for a staff to subscribe to the scheme, your take home pay must not be less than N80, 000/month, This is around level 12 cadre upward. How then can this housing be affordable to low income earners whose take home at times is less than N18, 000 minimum wage? This type of housing construction is practically unaffordable for the low income cadre.” Thontteth, an estate surveyor and valuer, among others suggested a housing subsidy to bridge the gap between cost and price for low-income earners . “In affordable housing, price is one of the most fundamental factors affecting affordability of housing hence, the need for re-introduction of housing subsidy for the low income groups. Also Lagos State should look into social housing for the masses, which are non-profit oriented as this has once been done by the former governor of Lagos State; Hon. Lateef Jakande. This is the only measure that can solve the low income housing in Lagos and the country as a whole.” In the same vein, an estate surveyor, who pleaded to remain anonymous, bemoaned the poor performance of the Lagos state authorities towards making its already built houses available to the masses. He further revealed that his firm has been fruitlessly battling with the Lagos State Investment Company (LBIC) to which he paid about N5 million since 2009. He stated that his case was not an isolated one but was one among many others, who have been battling for their hard earned cash, as their fate remains uncertain.

THE GUARDIAN, Monday, April 1, 2013

34 HOMES&PROPERTY

Imperatives of funding in public infrastructural development Discourse NFRASTRUCTURE services Ieconomic form the bedrock of all sociodevelopment in a country, and are a key indicator of a nation’s developmental status and the wellbeing of her citizens. These sentiments are also shared by the World Economic Forum (WEF), the World Bank and a number of international development institutions. According to the World Development Report, a one per cent increase in the stock of infrastructure is associated with a one per cent increase in the Gross Domestic Product across all countries. Specifically, for every dollar spent on public infrastructure investment, the gross domestic product of the country will increase by approximately US$ 0.05 to US$ 0.25. Competitive economic advantage therefore clearly depends on a country’s infrastructure vision and longterm planning. At present, Nigeria’s stock of basic infrastructure falls far short of the minimum required for meeting the demands of a 21st-century global economy. It had remained grossly inadequate, obsolete, dilapidated and poorly maintained. Water supply, sewerage, sanitation, drainage, roads, electricity, waste disposal and most urban infrastructure, have not kept pace with population growth and rapid urbanization. Indeed, Nigeria’s diminished competitiveness could be directly attributable to the abysmal level of infrastructure development in the country. The impact of Nigeria’s infrastructure deficit has been enormous and quite devastating. Of the numerous challenges militating against the adequate provision of infrastructural services in Nigeria, those of long term finance and inappropriate funding methods posed the most daunting. In aggregate terms, the annual budget, which hitherto provided the funding for infrastructure in Nigeria has not only proved completely inadequate, and may in fact be partly responsible for the dismal state of infrastructure in the country. The current practice of spreading the limited funds available through the budget for capital projects across a large number of projects, results largely in project abandonment. Only very few projects are ever completed and often at multiples of the original cost and at scandalous extension in the completion time. Infrastructure projects are lumpy, meaning that they are large, immobile and space specific. They are long lasting, often with life span measures in decades and centuries, and construction often running into years. They often have maturities of between 5 years and 40 years, reflective of both the length of the construction period and the productive life of the underlying asset that is created. As large amounts of money are typically invested for long periods, the underlying risks, typically arising from such variety of factors as demand uncertainty, environmental surprises, technological obsolescence, policy summersaults and political uncertainties, are also quite high. The existence of infrastructure in a society raises the quality of life by creating amenities, providing consumption goods and

The recently completed Lagos Admiralty Bridge in Ikoyi, Lagos

Nigeria’s infrastructure deficit has stymied its economic growth, restricted productivity and limited its competitiveness, says Director General, Infrastructure Concession Regulatory Commission, Dr. Ghaji Bello in a paper presented at the 43rd Annual Conference of the Nigerian Institution of Estate Surveyors and Valuers, recently. He argued that the situation has impacted negatively on the cost of doing business, investment and capital inflow into the country. contributing to macroeconomic stability. It does this through such mechanisms as reductions in costs, competitiveness in the international market, domestic market development, structural changes in the economy, improvement in welfare and living conditions. infrastructure exerts a catalytic effect on all development in a country. A closer examination of these mechanisms reveals the ubiquity of infrastructure development: With respect to Cost Reduction, infrastructure development contributes to the growth of the economy through its effects on production, investment and employment. Productive activities in the real sector utilize infrastructure such as electricity, telecommunications, water, and transport services as intermediate inputs. A 1988 survey of manufacturing establishments in Nigeria reported that infrastructure accounts for about nine per cent of variable costs, with half of this share going to electric power. Where the manufacturing establishments are unable to realize the benefit of efficient generation of infrastructure services, either because the services are absolutely unavailable or provided so unreliably as to be virtually unavailable, as is the case with Nigeria, the firm is forced to seek higher cost alternatives which invariably have unfavorable impacts on profits and level of production achieved. According to the Manufacturers Association of Nigeria (MAN), the cost of power and electricity input alone ranges from 44 per cent to 70 per cent of variable cost in Nigeria. Infrastructure impact the competitiveness of a country’s goods and services in the international market. Globalization has transformed the traditional organization of production

and marketing to the management of logistics. This is with a view to achieving cost savings in inventory and working capital and permitting rapid response to changing consumer demands. The result has been intensified competition in finance, trade and investment. As an example, For instance, order cycle times during the 1980s in the OECD countries fell by up to 80 percent on account of increased efficiency. More than 60 percent of production and sales in these markets are now processed directly to order. The net effect of the drastic reduction in transportation costs has been to lower the cost of doing business, increase global competitiveness, increase profitability, incomes, employment and the cost, service and quality of international trade. Where does Nigeria stand in global competitiveness with the parlous state of our road network ? A third identifiable channel through which infrastructural development contributes to economic growth is through the impact on domestic market development. Empirical studies in developing countries have reached the conclusion that rural (farm to market) roads have a major effect in improving marketing opportunities and reducing transaction costs. The marketing of agricultural commodities, excluding the stages of processing, often account for 25-60 percent of final prices for foodstuffs in developing countries, with about half of the marketing costs attributable to transport. In Nigeria, for example, 30-40 percent of the market price of agricultural produce, particularly food crops, consists mainly of transport costs and other incidental services. Estimates have it that farm to market costs on the rural road network are three times as high as what

they could be with satisfactory road rehabilitation and subsequent maintenance. Infrastructure development in any country results in positive Structural Changes in the Economy through economic diversification, technological innovation, and the structure of production and consumption. As with industry, infrastructure has direct effects on production costs and profitability of agriculture, as well as creates significant structural changes on the rural economy. For instance, a study on the impact of improved rural roads in Colombia documented not only increases in agricultural production, but also greater use of credit and alternative non-farm employment, resulting in higher overall earnings. Improved rural roads in Thailand, with attendant reduction in transport cost, was found to shift local demand away from some cheap locally-produced goods as costs of competing manufactured consumer goods were reduced. However, the improved roads were found to contribute more nonfarm jobs than were lost. More than ever before, infrastructure provides the key to modern technology in practically all sectors. Although the changes in markets and production brought about by the railroad and electric power in the past are significant enough, these are humbled by the recent advances in informatics, digital technology, telecommunications and the growth of the internet. These technologies underlie a very large share of production and distribution activities in secondary and tertiary sectors of the modem economy, including commerce, banking, government, and culture and tourism. Financing Infrastructure Financing for day-to-day manufacturing, expansion and modernization projects usu-

Bello ally embarked on by companies, significantly differ from the financing of infrastructure projects in many ways. The financing requirement for a large infrastructure project with lengthy construction periods and productive life, huge initial financial outlay, high project risk and low real return to investment can hardly be met by either traditional or corporate budgetary financing. Making a 25-year loan to a project company has a limited appeal for a commercial bank that will prefer shorter term lending at much higher rates. Financing infrastructure projects from direct budgetary allocation has also proved equally unsatisfactory. Traditionally, government has been the sole financier of infrastructure projects and has often taken responsibility for implementation, operations and maintenance as well. The national fiscal budgets have therefore been the principal sources of financing infrastructure development. In Nigeria, it is the norm to wait for a capital infusion through the fiscal budget to rehabilitate or replace, rather than maintain the infrastructure. However, declining financial resources is making this option less feasible, thereby accelerating infrastructure deterioration. Funding infrastructure through budgetary allocation is volatile and rarely meets crucial infrastructure expenditure requirements in a timely and adequate manner. In times of austerity capital outlay for infrastructure usually receives a larger brunt of fiscal retrenchment than recurrent expendi-

ture. Budgetary financing of infrastructure also has the greater potential for mismanagement and unwholesome practices. There is therefore a gradual recognition that this may not be the best way to execute/finance these projects. Such considerations as cost efficiency, equity, allocation efficiency and fiscal prudence, have increasingly played a role in determining the financing methods that will meet the need of modern, efficient infrastructure that delivers cost effective public services for accelerated and sustained economic growth. First, privately implemented and managed projects are likely to have a better record of delivering services, which are cheaper, and of a higher quality. Second, as hardly any infrastructure project uniformly benefits the entire population of the country, it may be more appropriate to impose user charges which recovers the cost of providing these services directly from the user rather than from the country as a whole. If users are to be charged a fair price then the project acquires a purely commercial character, with the government then needing to play the role of a facilitator only. Third, since users are likely to pay for services that they need the most, private participation and risk-return management has the added benefit that scarce resources are automatically directed towards those areas where the need is the greatest. Finally, due to their large initial outlays, infrastructure projects largely generate fiscal deficits that are often unsustainable. Alternative for funding Infrastructure Public Sector Funding Enhanced Statutory Allocation This mode of funding presupposes the front-loading of the regular budgetary allocation of an identified priority project for 2-3 years (depending on the expected construction period of the asset) on the basis of the expected statutory budgetary allocation for that project for the next 5-7 years. That way, there will be sufficient resources within the expected construction period of the asset to ensure its timely completion Viability Gap Funding Projects, classified and justifiable as public goods, frequently fail the commercial viability test, even where strong economic and technical reasons exist for the private sector engagement. Very often, the upfront capital costs of infrastructure development can exceed the capacity of private investors and discourage private financing. The Viability Gap Funding (VGF) is one of the instruments that the FGN could deploy to address this constraint. The Viability Gap Fund provides public capital to fill funding gaps required to make infrastructure projects commercially viable and bankable, thus increasing the appetite for private sector investment. A VGF can provide up-front funding to cover a certain amount of a project’s capital cost (capital subsidies or grants). The viability fund can also provide government payments over the life of the project (operational subsidies). This is particularly relevant for PPP projects in sectors where user-fee contributions are likely to be insufficient to cover total project costs. TO BE CONTINUED...

THE GUARDIAN, Monday, April 1, 2013

HOMES&PROPERTY 35

Russian, Indian demand for prime Dubai property pushes Palm’s ‘Rajasthan palaces’ up by 40% Real Estate ENEWED investor confiR dence in the Dubai property market has driven prices for properties in The Grandeur Residences on Palm Jumeirah by over 40 per cent. “Prices had touched a low of Dh1,400 per square foot about 18 months ago, but are now well over Dh1,800 per sqft due to increased investor interest for properties on the Palm,” Rajesh Rao, General Manager Sales, ETA Star Property Developers, told Emirates 24|7. Russians and Indians top the list of buyers in the project. Data analysed by Emirates 24|7 from various online listing reveals average asking prices ranges between Dh1,800 and Dh,2000 per sqft for these fully furnished apartments. The handover of the project, modeled on the archetypal palaces of Rajasthan, commenced late last year. “We have handed over 70 apartments till date and there are over 40 families have moved in. Property Owners are coming to take possession of their units,” Rao disclosed. Chief Executive Officer, PropSquare Real Estate, Parvees Gafur, stated: “Prices in the project have been increasing over the years . The construction quality is good and they are still quite reasonably priced in comparison to other properties on the Palm.” Speaking to this website, Igor Shein, a Russian, who had come to take handover of his apartment, said: “Dubai is a great place. It’s a holiday

Aerial view of Palm Jumeirah, Dubai

home for me. We are pampered here in terms that we get a fully-furnished apartment at a far lesser price than what we pay for a property in Russia.” The Wealth Report 2013, produced by Knight Frank, a global property company, has revealed that Dubai’s prime luxury properties are much

lower than those in Monaco, the world’s most expensive residential property market 10 times lower, in fact. Prices for properties in Dubai ranged between $520 and $580 per sqft in the fourth quarter 2012 compared to prices of between $5,350 and $5,920 per sqft in Monaco during the same period last

year. In order to comply with the regulatory requirements, ETA Star has commenced the process of setting up an interim owners association. The developer has also introduced a rental pool system to maximise returns of the owners. The project is currently managed by Reliance Facilities

Management. The Grandeur Residences consists of 229 one-, two- and three-bedroom apartments, located in the Mughal and Maurya blocks, including five beach-front signature villas. Although a number of retail units were initially planned, the developer later converted them into studio apartments.

The project comes equipped with amenities such as spa, swimming pools, health club, restaurants, helipad, tennis court and 24-hour security and a concierge.The Grandeur Residences is one section of the Dh1.2 billion project. The other part is the Taj Exotica Resort & Spa, which is still in its early construction stage.

World mayors pledge to tackle violence, crime in cities Urban Development AYORS from across the M globe met recently at the United Nations, New York, where the main outcome was their stated determination to make cities free from violence and crime. Global studies show that 60 per cent of all urban residents in developing countries have been victims of crime at least once over the past five years, 70per cent of them in Latin America and Africa. Studies showed that 63per cent of women never went out at night alone. In South Africa, for instance, 79 per cent of women felt most unsafe in public spaces, whilst in Cairo, 40per cent of girls reported that they felt unsafe in public spaces. The meeting was held in the framework of the Steering Committee of the Global Network on Safer Cities (GNSC) to dialogue with the United Nations and other international, national and local partners for developing and implementing a global agenda for a safer and sustainable future for our people and our world. Result of the dialogue was an outcome statement on actions towards enhancing the role of local authorities on safer cities. The document reaffirms mayors’ determination to make cities and their public spaces free from violence by focusing on the vulnerable and at-risk populations and improving urban planning, management and governance. Under-Secretary-General and Executive Director of UN-

Mayors at the Steering Committee of the Global Network on Safer Cities held in New York, recently

Result of the dialogue was an outcome statement on actions towards enhancing the role of local authorities on safer cities. The document reaffirms mayors’ determination to make cities and their public spaces free from violence by focusing on the vulnerable and at-risk populations and improving urban planning, management and governance Habitat, Dr. Joan Clos said: Crime and the fear of crime is one of the most influential factors in our daily lives, dictating where we choose to live, how we behave, where to go and where to work. There is a great need to address violence in city streets and other public spaces and to understand the role urban design,

planning and management play in minimizing risks as well as changing perceptions of insecurity”. The Global Network on Safer Cities (GNSC) is an initiative of UN-Habitat with safety, thus contributing towards securing the urban advantage for all. It is created within the framework of the World

Urban Campaign, the World Living Platform of UN-Habitat on cities for sharing and learning initiatives, actions and policies driving positive change. The GNSC finds its relevance from the necessity to put together and systematize different experiences existing around the world on urban

crime and violence, with the aim of advocating for safer cities and local crime prevention. The platform was constituted in September 2012, at the Sixth Session of the World Urban Forum held in Naples, Italy. The Steering Committee of the GNSC was constituted as a leadership body to serve the purpose of strengthening the international dialogue. It is led by local government representatives and members of the Habitat agenda partners. Participants in the First Steering Committee include Mr. Marcelo Ebrard Casaubon, Chairman of the Steering

Committee and former Mayor of Mexico City (Mexico); Mr. Antonio Villaraigosa, Mayor of Los Angeles (USA); Ms. Annise Parker, Mayor of Houston (USA); Norman Quijano Gonzalez, Mayor of San Salvador (El Salvador); Gustavo Petro, Mayor of Bogota (Colombia); Bilal Hamad, Mayor of Beirut (Lebanon); Parks Tau, Mayor of Johannesburg (South Africa); Francois Amichia, Mayor of Treichville-Abidjan (Ivory Coast); Guillermo Pinto, Mayor of Matosinhos (Portugal), and Mr. Roberto Porto, Secretary of Urban Safety of Sao Paulo (Brazil).

THE GUARDIAN, Monday, April 1, 2013

PropertyInterview Govt has to create avenue to ease approval, permitting processes, says UPDC boss UAC Property Development Company (UPDC) has been in the news recently for the right reasons, being a frontline real estate player spreading its tentacles in both residential and commercial development. The latest in its kitty is the Real Estate Investment Trusts (REITs). The company, which formerly operated as a support unit for UACN Group, was excised in 1997 due to dwindling fortunes of property business, that affected the Group. The excision gave birth to UPDC, which got listed on Nigerian Stock Exchange (NSE) in April 1998. Three years ago, HAKEEM OGUNNIRAN, a lawyer, chartered secretary and arbitrator, took over the helms of affairs as the Managing Director. His tenure has witnessed a beehive of activities in the housing industry. Called to the Nigerian Bar in 1985, a former lecturer at the University of Lagos, he joined UAC of Nigeria Plc as Manager, Legal Services and was later appointed as Western Area Manager and Marketing Manager respectively of GBO/MDS Division of UACN. He is the immediate past Divisional Managing Director of MDS Logistics Division and the immediate Past President and Chairman of Council of the Institute of Chartered Secretaries and Administrators of Nigeria. In this interview with The Guardian’s EMMANUEL BADEJO, Ogunniran said having a trusted and deliverable REITs is key to construction industry growth and provision of homes in the country. Excerpts: Property Interview ince you assumed the position of the Schanged, Managing Director of UPDC, what has in comparison with what you met on ground three years ago? As you know UPDC is a very strong company, well structured, and having a very strong brand in the property market. What I have tried to do basically over the past three years is to consolidate on our position in the market by keeping to the customers’ specification of quality, time and project delivery. We try to ensure that we satisfy our customers by delivering our projects on time. We have standardized our processes. We have generally tried to create a business, which moves with the dynamics of the market. No doubt to maintain your brand in the market, you would have had and perhaps still having some challenges. Can we know some of these? Real estate is very challenging industry for so many reasons. There are a lot of macro factors that are really beyond the operators. The legal regime is not very friendly. Approval and permitting processes are too complex. Sometimes, as a developer, you are like a mini-local government, providing all the basic infrastructure, your own – water, road, sewage treatment plant, water treatment plant, and all these added to the cost of construction make the industry much more challenging. Besides, the industry has so many opportunities and what we have tried to do is look beyond those challenges and tap the opportunities by creating business models that can make us stay at the top in the construction market. How can you describe the Nigerian property market? Nigerian property market is a very vast one. The market, which suffered serious setback between 2007 and 2009 but witnessed substantial recovery in the past two and half years. Also, if you look at the market very well, you’ll agree with me that it has been growing at between 11 and 12 per cent in the last five years. But in terms of the potentials, it is still presently contributing below 2.5 per cent to the GDP. This is far below to what is obtained in other growing economies, where the construction sector contributes between 25 and 30 per cent to GDP. This shows that there are enormous opportunities, which we must unlock and all the stakeholders should see beyond the challenges so as to tap the opportunities. These opportunities

are in all the segments. In the retail segment for instance, it is largely underserved. There are about three to four malls in Lagos, when the state can conveniently take 20 malls. There is need for a revolution in this segment. All the malls built in this country have done quite well. We are also building our own mall in Lagos, which groundbreaking takes off soon. Already, we have gotten approval and all necessary documentations are being put in place. In the commercial segment, there is acute shortage of office space and in view of the rising international franchise in Nigeria, there will continue to be a demand for that kind of accommodation. The industrial sector appears to have been totally neglected. Developers are not playing any game in that sector, though it is a very major area. If you look at the way the shopping malls are emerging, these by and large, these malls would be served by industrial buildings like warehouses but it is pity that, nobody seems not to pay attention to this segment. And if you look at the residential segment, there is huge opportunity, particularly for the middle class cadre. You recently launched your Real Estate Investment Trusts (REITs), after much work had gone into it. What difference will it make on your business? In terms of how we got to this point, the reality of the matter is that to deepen the real estate market in this country, we need to create more investment outlets for different funds available and with the challenges in the equity market, though just recovering, we need to give people alternatives. One of the things REITs does is to create this opportunity. We also know that it is difficult for people to build houses on their own and the REITs offers individuals’ indirect opportunity for this to happen. Let me quickly clear this: There is a misconception that, REITs is meant for institutional investors, this is not true. REITs is designed for retail investors. For us as business, we decided to take the initiative. Ours is very innovative and we had to work with the regulators to create the structure. On its impact on our business, the REITs will help to unlock our assets; it will put cash in our hand so that we can vigorously pursue our robust outline of projects. The REITs gives non-debt capital with which we can pursue our goals and developmental objectives. Through our REITs, we are selling 60per cent share of some of our properties. What that means is that once you buy into this REITs, you are entitled to all

UPDC’s Managing Director Hakeen Ogunniran

Ogunniran benefits accruing, you are part owner of these property. One unique thing about our REITs is that it is fully backed by underlining assets from the beginning. Is not as if we are coming to the market to raise money to build the property. The buildings are there, fully tenanted, so investors have the opportunity to make up their minds to determine whether or not they will want to invest in these assets. In this REITs, there is guarantee income, earning certainty. This makes our REITs to

be fundamentally different from what we have had in the past. One of the benefits of our REITs is immediate income; assets to cash, as some of the properties, rentals had already been collected in advance. So from day one, the REITs has capital income and cash to do other things. The other benefit of the REITs is that it provides a ready outlet for the any developer in the industry. The REITs is not only to buy from UPDC, it can CONTINUED ON PAGE 37

THE GUARDIAN, Monday, April 1, 2013

HOMES&PROPOERTY 37

UPDC tasks govt on approval, permitting processes CONTINUED FROM PAGE 36

also acquire from any other developer in the market. With your presence in Lagos, Port Harcourt and Abuja, most of the estates are luxury projects. Does UPDC have plans to build low-income homes? Well, my answer to that will be in two folds. One, in the past, our developments have been in Lagos, Port Harcourt and Abuja, but we are looking at other cities. What we did two years ago was to categorise Nigeria into A, B, C. A consists of Lagos, Abuja and Port Harcourt, and now we are already prospecting into other category. As I speak, we are considering Asaba, Ibadan and other cities in Nigeria. Basically, what we are trying to do is to complement the developmental efforts of the country at the same time. Indeed, we’ve seen the need to spread out, and very soon we would be seen in other cities. As far as the category of the estate we build, before now our developmental efforts were concentrated mainly n luxury homes and premium but in the past few years we have looked at classic apartment and we will soon introduce a new product that would be targeted at the mixed segment of the populace. For affordable or low-income housing, that is another ball game altogether, which has to be undertaken in conjunction with the government. We have also realized that there is an opportunity in the mixed segment, which we are currently prying into. Some experts have been calling for alternative building materials in production of houses. What is UPDC’s stand on this? It is an area that we have looked at and we have tactically made up our mind on it. Sooner than expected, we are going to launch a product in that direction. But let me keep this to my chest for now. Really, that is way to go. We need to employ new technology to enable us roll out more homes faster than we are doing now. There several tested models all over the world. We have taken a look at most of them, we have made our choice, and like I said very soon we shall come out on this. There have cases of construction/building projects being abandoned. As a player in the industry, how do you think this scenario could be checked? I think there are so many factors that lead to projects abandonment. One of them is that a lot of developers bite more than they can chew. What we done at UPDC is that when we have a very large project, we compartmentalise them into phases. When we finish one phase, we move to another phase and we ensure that we don’t take more than what we can take at a time on any project. Take for instance, our Aboyade Cole project, which we segmented into four phases. The entire project would have gulped about N30billion. We knew there was no way we could take on the entire project at once. But to deliver, we divided into four phases. We have done phase one, which is the residential complex. We have done phase two, which is the commercial complex, and now we are going to phase three, and we have gotten approval for phase four. Another project in Abuja, we are doing phase one now and now that we are getting to conclude phase one, we can then move to phase two. My suggestion is that contractor should embrace the idea of lots sliding, take a big project and break it down into chewable parts. Again, another thing that had happened in the past is that typically real estate in a medium to long term investment and that is why we are floating the REITs. If you have a big project, you need a longterm fund to deliver. If you take a shortterm loan, you will run into problem. For some people, they do just do a fire point calculation, expecting the off-takers, and the off-takers may not come as soon as planned, else you need to have plan B, which many developers fail to do. What is your view on mortgage institution in Nigeria? My view is that mortgage is non-existence in this country, though a lot of banks are trying to do something but it is a function of a lot of funds they also have. The funds they have are expensive and the tenor is short. So, when you say

you grant mortgages within the space of two to three years, that is not mortgages in the real sense of it. Retail finance is a major problem and I think that unless we solve this problem, it might be difficult for people to own their own homes. Another problem with mortgage firms is that a lot of them do more development than originating mortgages but with the reform going on, that I believe will push them to originate more mortgages. Now, they are compelled to focus on their business of mortgage origination. With the new institution the Federal Government is floating, that will create liquidity in that market. Even now when the Primary Mortgage Institutions originate, they have no outlets into which they can off load, but with the efforts of the Federal Government, I think we are going to have better result in this sector. How has UPDC been helping smaller construction companies in Nigeria to grow? Though a lot of these firms are not good, notwithstanding, there some of them that are doing so well. We have been helping in building their capacity. I could mention some of the good medium scale indigenous construction companies and we are already working with some of them. There is serious housing gap, as it has been, Nigeria lacks 16 million housing units. Curiously, more estates are being built without significant reduction in the housing shortage. Why? I think the 16 million is empirical through various researches, which have been before coming to that figure. When somebody of Prof. Akin Mabogunje’s standing, comes up with a figure, you cannot but take it hook, line and sinker. Besides, the population has been growing too. If you take all the developers in Nigeria, I doubt if we deliver 1,000 housing units in a year, though I do not have my details. I know what we do annually; I know what our competitors do annually; Federal Housing Authority (FHA), in the last 30 to 40 years, has it done up to 400 hundred houses? I doubt! Even for those who are building, how many of these houses are being delivered? The type of Jakande houses! It is only now under Fashola that we are witnessing constant delivery of houses and remember, the formal sector to which we belong accounts only to 15 percent to the total housing segment. We have undertaken a major research in that direction. We need to attack the problems directly. One of such is access to land. It is practically impossible for you to have a land without any encumbrance. Under our own due diligence, if you offer me a land that is clean, I will be worried. Because we also assume there is always a problem over every parcel of land and that is a major setback. Another one is land title. In this country, there is no point in the transaction chain, where you can say you have a title that is totally indefeasible. Also, infrastructure, as real estate development follows infrastructure. When you have a scenario where you spend about 70 percent of your annual budget on recurrent expenditure and 30 per cent on capital expenditure, this is worrisome. As a developer, if I have to go to a place to build my own roads, water, that will continuously have adverse impact on the total project. We are doing a project in Abuja, where we have to spend about 30 percent of the project cost on infrastructure, that is unacceptable; it should not be more than 2 or 3 per cent. So, there is a fundamental problem. Also, there is no access to long-term funds in this country. What they have done in other clime is to create a vehicle where developers can draw long term funds. You can invest and know that within 15 to 20 years, you can start to recoup your investment. Which of our banks can give such loans in Nigeria? I have not seen one. To cushion this effect, we had to issue a bond in 2010, but that is a five-year bond. That is why we floated REITs. The challenges are enormous. Government has to create avenue to ease approval and permitting processes. In Lagos State for instance, they have done well in the area of approval and permitting processes and other states must follow suit, while Lagos should continue to build on what it had begun. The system

THE GUARDIAN, Monday, April 1, 2013

The Environment Military experts raise concerns over security risks VER 100 countries now O regard climate change as a national security concern and

Lt.Gen. Azubuike Ihejirika, Chief of Army Staff

Hadiza Mailafia, Minister of Environment

The study reveals a growing concern among military experts over conflicts that could break out as a result of drought, resource scarcity and various extreme weather events, and the problem spans political or ideological divides. potential threat multiplier in the sense that it will add stress in parts of the world where people already have problems in terms of food and water shortages – and health problems,” he told RTCC. “The consequences of a changing climate adds to the stresses, particularly in a belt that runs in a belt north and south of the Equator – Africa, Middle East and on into Asia. “You could argue in Northern Europe it doesn’t affect us, but the reality is we live in a globalised world, and we are dependent on what happens in other parts of the world for our own wellbeing and prosperity.” Morisetti, who sees the

engagement of the security establishment in this issue as critical, has an ally in the head of US Pacific Command, Admiral Sam Locklear, who recently warned that climate change could “cripple the security environment” in his area of operations. “In many nations the armed forces are the most respected arm of government, and their action on climate change can raise awareness throughout a country,” ASP’s Andrew Holland told the Inter Press Service. The military is often called on to pick up the pieces in national emergencies – evidenced in the UK this week where Royal Navy helicopters have

dropped food to farming communities stranded by heavy snowfalls. And yet a report by the Australian Strategic Policy Institute (ASPI) published on Monday indicates that even the most advanced forces can struggle when faced with extreme weather events. This year the Australian Defence Force (ADF) was brought in to help combat bushfires sweeping through parts of the country as a result of searing temperatures. In 2011 it was called upon to help evacuate citizens stranded as a result of the floods in Brisbane. “The ADF of course have been heavily involved in deploying to regional disasters, but one of

the points that the report makes is that Defence will need to factor in concurrent disasters,” ASPI deputy director Antony Bergin told ABC. “While we’ve been pretty good at dealing with offshore disasters without anything happening on the home front, I think we’re now going to see the ADF really stretched in dealing with extreme weather events in the region and at home.” Often the military needs to prepare better for how it could be directly affected by extreme weather. In 1992, Hurricane Andrew nearly wiped out Homestead Air Force Base in Florida while Hurricane Katrina in 2005 destroyed 95per cent of Keesler Air Force Base in Mississippi. Given the politically sensitive nature of climate change, efforts to draw attention to its CONTINUED ON PAGE 40

EU tasks U.N. on summits’ results, urges more action Climate Change EWER United Nations (UN) Fincentives climate summits and more through carbon pricing could speed up international efforts to slow the pace of global warming, a draft European Commission paper seen by Reuters says. U.N. climate talks have yet to recover from a disastrous Copenhagen summit in 2009 when talks ended in failure and subsequent annual meetings have been heavily criticized for dragging on for weeks yet achieving little. The most recent summit in Doha in December was unable to agree anything that would have an immediate impact on rising greenhouse gas emissions. Instead, it laid out steps towards a new global deal, scheduled to be agreed in 2015

The Environment HE planet’s Least T Developed Countries (LDC) say they have lost patience

Climate Change are taking steps to assess their ability to manage new threats. That’s the key finding of a new report by US analysts American Security Project (ASP) who also warn many African and Middle East nations have not fully appreciated the potential risks of rising temperatures. “The states share the view that climate change and its effects should no longer be treated purely as an environmental threat, but rather a full-blown national security issue,” says author Xander Vagg. Based on analysis of 155 countries’ defence strategies, the study reveals a growing concern among military experts over conflicts that could break out as a result of drought, resource scarcity and various extreme weather events. The consensus in defence establishments is interesting as it spans political or ideological divides. Military leaders in nations as diverse as China, Kiribati, Rwanda, Canada and Belarus are all in agreement on the threat climate change poses. Despite well-publicised scepticism over climate science and the costs of making a transition to a low carbon energy system, the UK’s 2010 Strategic Defence Review and USA’s Quadrennial Defense Review warn that unchecked rises in temperatures will have a devastating impact on the global economy. China’s 2010 Defense White Paper lists global warming as one of several “non-traditional” security threats, while Russia’s 2009 National Security Strategy refers to constraints on biodiversity and water. The UK’s new chief climate diplomat Neil Morisetti is also a Rear Admiral in the Royal Navy, who commanded the aircraft carrier HMS Invincible in 2004. “Climate change will act as a

Poor nations to ‘take lead’ at talks

The 2015 Agreement will need to address the challenge of attracting the participation of all major economies, including the U.S., China, India and Brazil that have so far resisted legally-binding commitments to reduce their greenhouse gas emissions and to enter into force from 2020. The European Union has sought to lead with a set of green energy targets, including a goal to cut carbon emissions by 20 percent by 2020 versus 1990 levels and an EU-wide Emissions Trading Scheme (ETS). A draft paper from the Commission, the EU executive, on shaping the next years of international climate change policy raises the idea of less frequent summits. “Their open-ended participation and decision-making by consensus often results in only

agreeing on the lowest common denominator. Moreover, the costs of this negotiating process are considerable,” the Commission paper said. Measures to make U.N. negotiations more effective could include getting rid of the rule that requires all decisions to be agreed by a consensus of nearly 200 nations and “revisiting the frequency” of the annual summits, while continuing smaller, technical meetings. The Commission does not comment on unpublished drafts. However, EU officials have said the document will be debated by environment min-

isters next month. Apart from tackling the U.N. process, the Commission also says increased focus on marketbased instruments would help by providing “cost-effective” incentives to a lower-carbon society. The European Union’s ETS, the world’s biggest carbon market, has collapsed to a series of record lows under a surplus of emissions allowances generated by recession. Against the backdrop of financial crisis and worries about energy costs, the Commission has been struggling to push

through reforms to strengthen the market, but still says the ETS is central to EU environment policy. Looking ahead to a 2015 UN deal, the Commission says it must include all countries and be binding. The 1997 Kyoto Protocol on tackling climate change excluded emerging economies, some of which are now richer than the poorest parts of the European Union. The United States never ratified the deal, which expired at the end of 2012. “The 2015 Agreement will need to address the challenge of attracting the participation of all major economies, including the U.S., China, India and Brazil that have so far resisted legallybinding commitments to reduce their greenhouse gas emissions,” the document said.

with the glacial pace of the UN climate change talks and plan to set their own agenda. Representatives from the 49strong LDC group met in Kathmandu over the weekend to discuss a response to the ‘Doha Gateway’ agreed at the last round of UN talks in December 2012. LDC nations, who include some of the world’s most climate vulnerable states, repeated their concerns that the emission reduction and financial pledges from developed nations are unsatisfactory. In the aftermath of the 2012 Doha climate negotiations chairman Pa Ousman Jarju told RTCC the status quo was “inadequate”, while Nauru Minister of Foreign Affairs Kieren Keke said it was “difficult to see how the process could continue”. The group’s new chair Prakash Mathema says they will now take a more assertive stance at the next round of talks, scheduled to start in Bonn at the end of April. “The adoption of 2015 treaty will prove daunting. However, it is my belief that in meeting these challenges, we should adopt a new mantra in the international climate arena,” he said. “In our quest to secure a future of climate safety, we must move from an ‘after you’ mentality to a perspective that says, follow us!” Gambia negotiator Pa Ousman Jarju expressed frustration at the glacial pace of climate talks during the 2012 Doha summit While the LDC’s individual nations boast little economic or political muscle, collectively they act as the conscience of the UN climate process together with the small island states – a point Mathema alluded to in his closing speech. “The LDCs occupy a unique position in the climate negotiations: we are amongst the most vulnerable; we are amongst the least responsible; and despite this we have already started to put in place some of the most ambitious climate change policies,” he said. “We should, therefore, use our position to change the international focus and perception of climate change.” Mathema added: “We can no longer wait expectantly with the attitude of ‘after you.’ Instead, we must stride boldly forward with the mind-set of ‘follow us.’ “It is time the LDCs became the deal makers. It is time we shaped the agenda and the decisions, instead of having them shaped for us.” The EU alliance with the LDCs during the 2011 talks in Durban was viewed as critical in forcing India, China and to an extent the USA to commit to signing a new deal on climate change in 2015.

THE GUARDIAN, Monday, April 1, 2013

THE ENVIRONMENT 39

The gully erosion at the Niger Delta skill acqusition centre, Cross River state...recently

Erosion destroys N’Delta skill acquisition centre The Environment From Anietie Akpan, Calabar ENEWED efforts to pacify R and engage youths of the Niger Delta region in meaningful activities through a N2 billion Federal Government’s Niger Delta skills Acquisition Centre in Cross River State may be jeopardize due to the threat gully erosion at the site. Given the extent of threat at the Ikot Nakanda in Akpabuyo Local Government Area site, if something urgently is not done the centre may be

The contractor to the Federal Government’s Niger Delta skills Acquisition Centre in Cross River State said variation in the contract is inevitable and the deadline set for them is realizable, but government should address challenges facing the site such as erosion menace. washed away and the August deadline date for the completion and commissioning of the project is doubtful due to the challenges at hand. Just like the East West road, which was hurriedly awarded, it was disclosed that the skill acquisition centre was equally hurriedly awarded in 2010 by the Yar’adua’s administration under the former minister, Chief Ufot

Ekaette but implemented by the Goodluck Administration with Godsday Orubebe as the minister. The project comes with a conference Centre, hostel, ICT centre, Olympic standard swimming pool, indoor games, gallery and staff quarters among others. The Project Site, Mr. Godwin Emorikin, an engineer in a

chat with some journalists said, “the problem of terrain is a huge challenge here. As you can see the land is threatened by gully erosion that is almost dividing the site into two. “The condition of the land itself was not made known to government before it paid and the gully is moving into the village. Don’t forget that we are going into the

raining season, which is torrent when it commences here. “Another challenge we have here is the problem of fund, which government is holding and they are giving us completion date without making a commensurate fund available. How do we marry the delay in payment and completion target given with this huge challenge of gully that has almost taken over the whole site? “On our part, the deadline date is realizable but we want government to address these challenges, this erosion problem should be a

National commission underway as Rivers gets water policy Sanitation From Kelvin Ebiri, Port Harcourt ETERMINED to improve D service delivery in the water sector, Rivers State authorities have introduces a new vision for water governance geared at ensuring adequate supply of potable to every community within the state. In same vein, the Federal Government said it has almost finalize work on the National Water Resources Bill and is addressing governance and service delivery issues through the establishment of some policies and institutional frameworks such as updating of the national water resources master plan and the establishment of the Nigeria Integrated Water Resources Management Commission (NIWRMC). The state governor, Chibuike Amaechi who inaugurated the water sector coordination committee during the Rivers State Water Sector Development Conference with the theme: “Improving Service Delivery through Better Cooperation”, in Port Harcourt,

Plans are afoot to implement the road map for water resources development in the country with a view to putting the country back on track to achieving the Millennium Development Goals for 2015 and the Africa Water Vision in 2025. Part of the vision is the establishment of the Nigeria Integrated Water Resources Management Commission said his administration’s rural and urban water scheme will provide potable water to the people. He described as regrettable the fact that people still drink rain water in some communities of the State. He stressed that the citizens expect government to provide them potable water and appealed to the Africa Development Bank to provide the State government the loan it is seeking to addressing challenges in the water sector. “We need to take water to the people, you and I who are in government, we hold this money in trust for the people, we make decisions on behalf of the people and one of the decisions they expect us to make is to give them clean, potable water” he said. Addressing participants at the Rivers State water sector

development conference which held in Port Harcourt, the Minister of Water Resources, Mrs. Sarah Ochekpe, said her ministry has articulated a blue-print to implement the road map for water resources development in Nigeria with a view to putting the country back on track to achieving the Millennium Development Goals for 2015 and the Africa Water Vision in 2025. She explained that the NIWRMC was established to vet and regulate all proposed developments in the water resources hydrological catchment areas of the country. The commission, according to her, will also use practical management instruments to macro plan and manage water resources of the country at catchment levels in an inte-

grated manner as well as foster partnership and cooperation using suitable forum for all stakeholders to ensure equity, economic efficiency and environmental sustainability. Ochekpe lauded Rivers State for its water reform initiative and enjoined the State’s water coordination committee inaugurated at the summit, liaise with the NIWRMC for effective and robust management and execution of the identified interventions and investments in their catchment areas. On her part, the United Nations Water Supply and Sanitation Collaborative Council (WSSCC) national coordinator, Ms. Priscilla Achakpa, said the agency is developing a three year strategic water plan for Nigeria. When completed, she said it

will give direction to what it should be funding in Nigerian water sector from 2013-2016. Achakpa noted that access to safe water and adequate sanitation are still very serious challenge in Nigeria. According to her, national access to improved sanitation and potable water supply is projected at 63 percent and 75 percent respectively by 2015 from the current level of 32 percent and 58 percent respectively. She said WSSCC is committed to supporting the achievement of sustainable water supply and sanitation and hygiene for all people as exemplified in its country funding of $5 million US Dollars to Benue and Cross River States through the Federal Ministry of Water Resources. The State Commissioner for Water Resources and Rural Development, Patricia SimonHart explained that the Rivers State Government has resolved to reform the state’s water sector in order to offer sound water governance and deliver efficient service to the people.

separate contract, but we are doing our palliative measures to make the work going, however, variation into this contract sum is inevitable”. The representative of the consultant of the project, Sunday Abu-Somuan said: “the gully came as a result of the way and manner in which the contract was awarded. The consultant was not allowed to inspect the project site by the community before the Federal Government through the Ministry of Niger Delta paid them. By the time we saw the mountain they described as a surface table land, the payment had been made and government said we must continue with the work. “It is like fighting nature and the result is what you are seeing today. In fact, we have to redesign some of the original plan and the work-inprogress of the building is going on as planned but the erosion is a challenge. It is as bad as you can see it yourself.” One of the contractors Alabi Aderemi said all the buildings of staff quarters, ICT and indoor games are 95per cent completed but however pointed out that, the ICT building is being threatened by the feasible gully erosion. “The current of water is high here and as you can see, the ICT building is being threatened by the gully”, he said. The Minster of Niger Delta Affairs, Dr. Godsday Orubebe during his recent visit to the state, confirmed the erosion threat pointing out that, “government did not consider the erosion plan when the project was awarded. We are going to look into it. It is before the ministry, it is not about variation alone, the contract of that gully erosion will be awarded separately.”

40 THE ENVIRONMENT

THE GUARDIAN, Monday, April 1, 2013

World Bank’s partnership breaths new life into carbon markets The Environment ACED with the growing scientific evidence on the dangers of climate change, over 30 countries have held talks in an attempt to breathe new life into the world’s struggling carbon markets. From China to Costa Rica, Turkey to South Africa, government officials are sharing new ideas, experiences and plans on domestic emissions trading, carbon taxes, and other innovative market instruments to tackle climate change. These discussions are taking place at the fifth global meeting of the Partnership for Market Readiness (PMR) – a coalition of developed and developing countries that began working together in 2010. “This growing group of likeminded first movers is building the carbon markets of the future,” said Vice President for Sustainable Development at the World Bank, Rachel Kyte. “With its knowledge and financial support, the PMR supports the assessments, design, and implementation of carbon pricing instruments. A predictable price on carbon will drive investment in clean, green growth, and reveal the real cost of carbon-polluting activi t i e s . ” “While the countries in the PMR see that this bottom up approach is working and hope that others will join the fold, at some point the world will need the supporting infrastructure to ensure exchangeability of carbon assets.” Kyte continued. “At least 35 countries, 18 subnational jurisdictions in the U.S. and Canada, and the seven Chinese cities and provinces – covering about one-third of China’s GDP – will soon be participating in emissions trading systems. Connecting these markets has to be a priority.” The PMR is made up of a dozen contributing participants, such as the United States, Australia, Japan, the European Commission and other European countries, and 16 implementing countries, including China, Chile, Mexico and Costa Rica, the first four countries to receive grant financing from the PMR in support of their carbon market readiness proposals. Addressing the meeting today, Deputy Director of the

Ogba Zoo and Nature Park in Edo State covered in mud...recently

Ogba nature Park under threat, seeks Edo govt assistance Conservation By Andrew Iro Okungbowa F the signals emanating IOgba from the management of Zoo and Nature Park, Benin City, Edo State, are anything to go by, the nature and eco-tourism enclave is in danger of going under, arising from environmental degradation and neglect by the Edo State Government, which has refused to honour its commitment to reviving the once famed nature home. The source of its recent concern, according to its management - BENZOPA, an NonGovernmental Organisation (NGO) is the fallout of the flooding of the zoo on November 6, 2012, as a result of the excavation of gutters in front of the Zoo in the course of ongoing rehabilitation of Airport Road. This excavation was reported to have created a wide portion on the embankment, which allowed floodwaters to sweep the mountains of construction materials piled along the road that smashed through the zoo fences in several section, wrecking extensive havoc on the facility. Damaged was not only caused to the facilities but many of its habitats were said to be affected with some of the animals buried in mud while some escaped and later recaptured. The entire premises was also inaccessible due to piles of debris – boulders, stones, sand, mud and filth that were deposited by the floodwaters, resulting in the temporary closure of the zoo for properly clean up and assessment of damage. This development, the source said was brought to the attention of the state government, which led to some officials of the Ministry of Environment, alongside the

Four months after, no financial assistance has come to the group either from the government or the construction company, leaving the management to contend with the enormity of the devastation, which the management puts at running into millions of naira to regain the environment, replenish its diminished livestock, reconstruct some of its affected recreation facilities Project Consultant, visiting the zoo on December 8, 2012 to assess the place at the end of which assistance was promised the management to mitigate the damage done. But four months on, no help is yet to come the way of the zoo either from the government or the construction company, leaving the management to contend with the enormity of the devastation, which the management puts at running into millions of naira to regain the environment, replenish its diminished livestock, and reconstruct some of its affected recreation facilities as well as it affected fence work. This present state of affairs, the source revealed has left the natural enclave, which spans 750 acres in a precarious situation as ‘‘the zoo has been surviving under a very harsh operational circumstances,’’ said the management source. Some of the contending perennial issues threatening the continued existence of the zoo, which was created in 1966 by the then, Midwest Government now Edo State Government from the existing Ogba Forest Reserve, include the following: the prolonged delay in the provision of a proper access road; devastating community encroachment resulting from government’s inadvertent de-acquisition of a large expanse of the Zoo. This has lingered for over 10 years without any solution in sight; high overhead and running costs with little or no institutional; and failure of successive administration in

the state to honour its commitment when this management team was signed on under the Public – Private Partnership initiative of the state government over a decade ago. Since taking over the management of the zoo, the source said it has not received any form of financial or technical assistance from the state government rather it has struggled on its own to meet with its obligations in the face of so many challenges. To save the zoo from further degradation and pillage of its flora and fauna and going into extinction in no distance time, as the management can no longer continue to shoulder the enormous financial burden of keeping the zoo afloat, let alone of forcing development as expected, it is making a passionate appeal to the state government and other well – meaning environmental groups, donor agencies to come to the rescue of this once famous natural and leisure spot, which is now almost a shadow of its past glory. ‘‘The recent flooding disaster is a veritable state of emergency for this popular heritage of Edo State. The group, therefore is sending a save our soul message to the Governor for urgent assistance for the zoo and deal with other pending issues that will help the zoo become operational, ‘pleaded the management source. In its heydays, the zoo was a highly regarded attraction attracting thousands of people, especially school children

and holiday makers. It had a rich stock of animals in captive then ranging from lions, chimpanzee, monkey, tortoise, rock python guinea fowl, peal fowl to snake and boasted well – cultivated and manicured expansive landscaped grounds for picnic, pristine forest and safari trails, river and other recreation facilities for children as well. It cut a picture of idyllic enclave for retreat, educational resort for scientific researches, good and captivating natural scenery for cinematography and photo ops and restaurant among other cherished facilities. BENZOPA on coming onboard had plans to returned to its formal state by replenishing and restocking it natural habitats and improving on it both scientific and leisure ambience. Part of it proposed project included BENZOPA Village Resort, a 50 room eco – lodge, amusement park, multiple event centre, shopping mall and upgraded zoo infrastructure to boot. But all of this has remained a pipe dream as it has not been able to muscle the huge financial outlay needed for the project. What it appeared to have done since then is to safeguard what has been left of it natural habitats, keep poachers off the ground to a certain level and bring in some form of leisure activities. All of these seemed to have helped in attracting some level of patronage and attention to the zoo.

The World Bank’s Partnership for Market Readiness programme is delivering climate solutions such as assessments, design, and implementation of carbon pricing instruments. A predictable price on carbon will drive investment in clean, green growth, and reveal the real cost of carbon-polluting activities China National Development and Reform Commission, Wang Shu said, “China is determined to pursue low carbon development. Addressing climate change is an important opportunity for transformation to a green and low carbon economy. We believe market-based instruments, such as carbon emissions trading, is an efficient approach to achieving this. China hopes to develop its own carbon market with the support of the PMR, an experience that will provide other countries with lessons l e a r n e d . ” The PMR provides a platform for developed and developing countries alike to learn from one another’s experiences and explore and implement innovative approaches to greenhouse gas mitigation. “For Costa Rica, the development of new market instruments and, in particular, the development of a domestic carbon market, is a strategic approach to support local action towards carbon neutrality by 2021,” René Castro Salazar, Costa Rica Minister of Environment and Energy. “This is a voluntary commitment incorporated into our national climate change strategy that seeks to align lowcarbon growth and eco-competitiveness by our industry in a post 2020 world.” At this week’s meeting, the grant recipients each presented their readiness proposals, explaining how they plan to implement specific marketbased approaches to reduce greenhouse gas emissions and combat climate change. There is a diversity of approach, with each country choosing its own path, but with the common objective of lowering emissions.

EU tasks U.N. on climate change CONTINUED FROM PAGE 38 security implications have proved problematic. A move by the UK and Pakistan to have climate change debated at UN Security Council level at the start of this year was rejected by Russia and China – despite military leaders in both countries recognising the threats. But the evidence base is building. In February the think tank American Progress released a study examining links between the Arab Spring and climate change. One of the most interesting observations was the connection between China’s dreadful wheat harvest in 2010 and the toppling of President Hosni Mubarak. “Government legitimacy and civil society in Egypt were upset by protests that focused on poverty, bread, and politi-

cal discontent,” author Troy Sternberg contends. “The doubling of global wheat prices – from $157/metric ton in June 2010 to $326/metric ton in February 2011 – thus significantly impacted the country’s food supply and availability. He adds: “This is particularly pertinent to Egypt, a country that spends three per cent of its gross domestic product on wheat subsidies and that experienced the 1977 “bread intifada” that killed 77 people and the bread riots in 2008.” And as former State Department head of planning Anne-Marie Slaughter notes in the report’s preface, while it is impossible to make direct links between climate change and conflict: “the interplay of factors that will demand an increasing amount of our attention going forward”, a fact not lost on military establishments across the planet.

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THE GUARDIAN, Monday, April 1, 2013

42 STOCKWATCH

Industrial clusters and their implications for local economic policy INTRODUCTION HY some national and regional economies grow faster than others is an enduring and difficult question. The question attracts contributions from economists and a range of other people, and preoccupies governments and policy-makers of nearly all colours. Easily the most influential theory in recent times has been Michael Porter’s account of localized industrial ‘clusters’. This is set out in his 1990 book ‘The Competitive Advantage of Nations’. At the heart of Porter’s theory is the notion of ‘clusters’ as geographically concentrated industrial sectors. These consist of a number of rival companies around which are grouped complementary and supporting supplier companies and associated institutions. Geographical proximity allows interaction and efficient flows of goods, services, ideas, and skills. This yields high levels of productivity growth and rapid rates of innovation in both processes and products. PORTER’S THEORY Porter’s definition of competitiveness derives from his earlier work on business strategy. Put simply, it revolves around high productivity – itself an outcome of successful innovation in processes or products, or both. Firms should seek to continually innovate in creating value for their customers. The desirable path for a national economy to follow is in high value-added activities that rely on high levels of expertise and skill, and which are able, and need to, pay high wages. The question he asks in his 1990 book is why are some nations are better at doing this than others? Or, more precisely, why have some countries succeeded in gaining competitive advantage in particular industries. The answer was in his concept of ‘clusters’. In these, successful firms in particular countries are not isolated cases but belong to successful groups of rival firms within industries. These groups of firms, together with the associated businesses they attract at various stages in the supply chain, are termed ‘clusters’. Porter saw high productivity growth as the outcome of a ‘diamond’ of four factors: • Firm strategy, structure, and rivalry • Factor conditions (input) • Demand conditions • The presence of related and supporting industries. Whether or not an industrial cluster exists in a locality does not hinge on the mere presence of firms of a similar type in an area. This is a common mistake. It is in the nature of the interactions between the four elements of the ‘Porter diamond’ within an area that properly determines the existence of a cluster. The most important of these interactions is that of competitive rivalry between firms. The importance of competitive rivalry is probably the most distinctive part of Porter’s theory. The geographic proximity of leading rivals within an industry intensifies the relationships between the four elements of the diamond. Paradoxically, however, an element of collaboration between firms is also an important ingredient of cluster success. Firms of a similar type might support trade or professional associations. These can maintain and upgrade standards in skills and products, lobby local or regional governments for investment in appropriate public goods or support collective marketing activities. For example, the successful Italian tile industry was supported by vigorous promotional activity by its trade association. TYPES OF CLUSTERS By Development Following development of the concept of interorganizational networks in Germany and practical development of clusters in the United Kingdom; many perceive there to be four methods by which a cluster can be identified: • Geographical cluster - as stated above • Sectoral clusters (a cluster of businesses operating together from within the same commercial sector • Horizontal cluster (interconnections between businesses at a sharing of resources level e.g. knowledge management) • Vertical cluster (i.e. a supply chain cluster) • It is also expected - particularly in the German model of organizational networks - that interconnected businesses must interact and have firm actions within at least two separate levels of the organizations concerned. By Knowledge Several types of business clusters can, based on different kinds of knowledge, are recognized: • High-tech clusters - These clusters are high technology-oriented, well adapted to the knowledge economy, and typically have as a core renowned universities and research centers like Silicon Valley. • Historic know-how-based clusters - These are based on more traditional activities that maintain their advantage in know-how over the years, and for some of them, over the centuries. They are often industry specific. For example: London as financial center. • Factor endowment clusters - They are created because a comparative advantage they might have linked to a geographical position. For example, wine production clusters because of sunny regions surrounded by mountains, where good grapes can grow. This is like certain areas in France, Spain, Chile or California. • Low-cost manufacturing clusters - These clusters have typically emerged in developing countries within particular industries, such as automotive production, electronics, or textiles. Examples include electronics clusters in Mexico (e.g. Guadalajara) and Argentina (e.g. Cordoba). Cluster firms typically serve clients in developed countries. • Knowledge services clusters - Like low-cost manufacturing clusters,

these clusters have emerged typically in developing countries. They have been characterized by the availability of lower-cost skills and expertise serving a growing global demand for increasingly commoditized (i.e. standardized, less firm-specific) knowledge services, e.g. software development, engineering support, analytical services INDUSTRIAL CLUSTERS AS A VEHICLE FOR GROWTH AND PROSPERITY NIGERIA The quest by the current Nigeria administration1 for economic growth and industrialization through national economic development prospects hinge on entrepreneurial energy of vibrant Micro, Small and Medium Enterprises (MSMEs) as most big business concern grew from small scale to become big icons and as they grow, they protect the economy from the geographical cost-benefit permutations of a few multinationals who are ever prepared to close up their businesses and relocates at the slightest provocation or appearance of economic downturn. Also, MSMEs make for better utilisation of indigenous resources since considerable low capital outlay required for setting up MSMEs enable them to convert minimal resources into productive ventures. This is also in line with the quest of most developing countries of the world today that are determined to join the league of industrial nations because of the positive influences and gains envisaged to derive from such moves. Despite industrial promotional measures of successive governments, minimal positive results have been achieved and the industrial sector remains poorly developed. One of the main factors contributing to this situation has been the absence of rational and coherent policy framework for industrial development that is officially adopted, implemented and monitored by stakeholders. Over the years, various government ministries, departments and agencies (MDAs) tended to implement industrial programmes in looselycoordinated manner, as there was no deliberate framework of synergy and monitoring. Moreover, industries are worst affected by difficult business environment since they have limited financial, technical and human resources capabilities to overcome bottlenecks to business and investments. In trying to remedy the situation the present administration initiated a drive to put an end to these long standing constraints. This drive also has led to the establishment of a Free Trade Zone2 (FTZ) and Export Processing Zones (EPZ) at various centres in Nigeria. A cursory look at economic and industrial activities within the country show a concentration of industrial activities in South West to the tune of (60%) sixty percent. The other geo-political zones share the remaining balance of (40%) forty percent. This obviously shows that other parts of Nigeria are disadvantaged in terms of industrialization and economic development. The poor state of public infrastructure other parts of Nigeria discourages prospective entrepreneurs from establishing small-scale industries that form the pivot of industrial development as demonstrated elsewhere. The Critical Question Therefore Is What Do We Do To Bring about Rapid Industrialization In most parts Nigeria? Experts in developmental economics and industrialization have suggested that underdeveloped economics should adopt the option of establishing ‘Industrial Clusters’ in view of the fact that they have the potential for rapid industrial and economic development. They are quick to point out that ‘Industrial Clusters’ offer the following advantages: • It is a significant form of industrial organization for small-scale manufacturing. • Clustering promotes different types of inter-firm linkages. • Clustering is identified with diverse forms of social networks which are associated with personal ties and the notions of trust and reciprocity in competitive behaviour. • Clusters are not a planned intervention yet the state has a role in promoting it. Limitations of industrial clusters in Nigeria are also highlighted in available literature: • Generally, in contrast to global trend of clusters development, African clusters have not been able to go beyond producing for local markets. • This could be as a result of neglect or ineffective policy design on one hand, or absence of institutional backing on the other. • Poor infrastructure such as electricity, roads and water increase the cost of doing business because potential cluster operators are constrained to provide these services by themselves.

• It is difficult for small scale enterprises to grow in an environment where civil and commercial laws are very weak. • Banks and formal credit institutions have problems in giving loans to small scale enterprises in clusters. Securities obtained for credit guarantee by small enterprises are sometimes not adequate or even nonexistent. References are made to the phenomenal successes of Industrial Clusters in different countries and industrial regions of the world. In Latin America, the Brazilian Shoe Cluster of Snios Valley is a notable example. Brazil is one of the world’s leading producers of leather shoes and the bulk of her export-oriented leather shoes are produced in the Sinos valley industrial cluster.Three factors are particularly germane to Sinos Valleys’ economic success. These are: • First, backward linkages that shoe producers have with local suppliers of inputs, machinery and producer services; • Second, forward linkages between producers and buyers, especially export agents; and • Third, the strategic intervention of local support institutions in facilitating the cluster’s ability to move into higher value added product markets. In the same vein, the Pakistan, an export oriented industrial cluster that produces surgical instruments exists in Siatkot. Siatkot Surgical Instrument Industrial Clusters is a huge success because the producers in the cluster struggled to meet higher standards required by export market. It also made extensive use of blueprints, drawings and technical experts brought from Britain as well as the setting up of a technical institution for training workers with the support of the federal government. The Surgical Instruments Manufacturers Association (SIMA) lobbies the Paklstan government for financial and technical support and hired quality assurance consultancy firm to upgrade and train local enterprises. This enabled them to begin to meet ISQ quality standards by employing Good Manufacturing Practices (GMP). In East Asian Clusters, the successful imitation and assimilation of foreign technologies, the formation of geographically dense industrial clusters consisting of a large number of small enterprises producing similar and related products and the advent of multifaceted innovations leading to a great leap forward in the industrial structures were the critical success factors. The successful development of Japanese industries became the model in other East Asian countries such as China and Taiwan. Back home in Nigeria, the Nnewi Automotive Parts Industrial Cluster is a huge success story. It is a very good example of how an informal cluster can survive and succeed without government support in terms of provision of essential public utilities. It exports automotive parts to countries in the West African sub-region as well as other international destinations. Its key critical success factors include active participation of private industry associations such as Nnewi Chamber of Commerce, Industry, Mines and Agriculture and the Nigerian Association of Small Scale Industries, a social – cultural milieu characterized by competitiveness, high entrepreneurial spirit as well as investment in training and capacity to imitate and assimilate foreign technology. Above all, the Nnewi cluster made an independent effort to provide the necessary infrastructural support when the state failed to do so. The lessons to be learned from these clusters are embedded in the synopsis of their key success factors: • Backward linkages the clusters have with local supplier of inputs of machinery and services. • Forward linkages between producers and buyers. • Strategic intervention of local support institutions. • Meeting higher product standards required by the export market • Employing good manufacturing practices (GMP) • Imitation and assimilation of foreign technologies. • Overcoming infrastructural hurdles, should the state fail to provide basic facilities. • The role of professional and trade associations in providing information, solving problems and lobbying for support. • Continuous capacity building in form of training and education. CONCLUSION A 2006 study on the leather industry in Kano succeeded in elucidating factors militating against exports and productivity of Nigerian leather industry concentrated at the Kano industrial cluster. The study found out that given the relatively small size of majority of the enterprises in the Nigerian leather industry, these enterprises are in a very vulnerable position due to high and increasing operational costs (indirect cost). Administrative barriers are very significant while regulatory procedures are quite burdensome leaving them open to excessive corruption. This implies that not being able to export by these enterprises located in Kano industrial cluster is as a result of indirect costs while capital stock, employment level and availability of raw materials contribute positively to export propensity. Major obstacles to business operations and growth (ranked according to severity) are inadequate infrastructure, access to credit, high utility costs, and official corruption, while regulations regarding labor and maintaining ownership of a business were regarded as minor. For most categories of obstacles (e.g. bureaucratic burden, foreign currency regulations, tax regulations or high taxes, and corruption), large enterprises identified themselves as more constrained than smaller firms, while the smaller firms felt more constrained in new business registration and ownership regulations. In a situation where all these obstacles abound even in the industrial clusters where lots of incentives and an enabling environment are said to have been taken care of, it shows that either the policy implementation with regards to the promotion of industrial export and growth in the industrial clusters are poorly carried out or that the claims are mere rhetoric.

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THE GUARDIAN, Monday, April 1, 2013

Japan plans world’s first LNG futures within two years the biggest buyer of JtoAPAN, liquefied natural gas, plans list the world’s first futures contract for the super-cooled fuel on the Tokyo Commodity Exchange within two years. The futures will be for cash settlement in dollars and based on an index price for spot LNG cargoes delivered to Japan, Takashi Ishizaki, the director for the commerce policy division at the Ministry of Economy, Trade and Industry, said by phone. While the contracts won’t be for physical delivery, they will allow Exchange Futures for Physical, or so-called EFP, transactions that enable traders to swap their futures positions for a physical holding. LNG futures will allow consumers and producers to hedge against price swings, while challenging the current method of linking the fuel’s cost to oil. That’s more important after Japan’s bill for LNG climbed to a record last year, helping push the nation’s trade deficit to an all-time high, as it switched to thermal electricity generation after the shutdown of its nuclear plants. The Tokyo Commodity Exchange, or Tocom, will consider how to implement the contract after a council set up by the ministry agreed with the proposal, Ishizaki said after the meeting in Tokyo. “We always seek opportunities to list new futures contracts, although it takes time to develop,” Tadashi Ezaki, the president of Tocom, the nation’s largest commodity exchange, said in an interview in Tokyo. “We are keen to create a market that meets the needs of domestic and oversees investors.” Japan paid six trillion yen ($64 billion) for a record 87.3 mil-

lion metric tons of LNG last year, customs data show. The gas, which is chilled to a liquid for transport by tanker, cost an average $16.70 per million British thermal units, or almost six times as much as the $2.83 average price of U.S. gas traded on the New York Mercantile Exchange last year. All but two of the nation’s 50 atomic reactors are still shut pending safety checks after the March 2011 earthquake that caused a meltdown at Tokyo Electric Power Co.’s Fukushima plant. The country’s trade deficit was 6.9 trillion yen in 2012. The trade ministry wants a future for cash settlement rather than physical delivery to attract traders who don’t have access to infrastructure such as regasification terminals, according to Ishizaki. It also plans to encourage LNG buyers in South Korea and Taiwan to participate to increase liquidity, he said. The government will ask Singapore, which is vying to become Asia’s LNG trading hub, and the U.S., which is becoming an exporter of shale-gas-derived LNG to Japan, to list a similar contract. The trade ministry, which oversees energy policy and commodity futures trading, set up the council in November to consider the possible listing of the contracts. The council includes officials from Mitsubishi Corp. (8058), Mitsui & Co. (8031), Sumitomo Corp., Goldman Sachs Group Inc., JX Nippon Oil & Energy Corp, Tokyo Electric, Tokyo Gas Co. and Inpex Corp. The ministry may begin publishing its own spot price assessments that can be used for the LNG futures, Ishizaki said, without giving a time frame.

Pollution-laden city of Beijing at the weekend

China to tackle Beijing pollution crisis with $16b HINA will spend 100 bilC lion yuan ($16 billion) over three years to deal with Beijing’s pollution, an official newspaper reported on Friday, as the government tries to defuse mounting public anger over environmental degradation. Beijing’s government has pledged to improve sewage disposal, garbage treatment and air quality, as well as crack down on illegal construction, the China Daily newspaper said, citing a

three-year plan released on Thursday. Air quality in Beijing, a city of around 20 million people, has mostly stayed above “very unhealthy” and “hazardous” levels since the beginning of this year. Pollution was one of the key themes at the recent National Party Congress, where China’s new leaders were confirmed. Many Chinese feel the government lacks bite when it comes to enforcing policies

designed to protect the environment. Beijing’s plan includes laying or upgrading 1,290 km (800 miles) of sewage pipeline, building five garbage incineration plants, setting up 47 water recycling plants and upgrading 20 sewage disposal plants, said China Daily. Beijing Mayor Wang Anshun called on the government to allow the private sector to participate in

these investments. The government also plans to curb illegal construction and land use, and will compile a list of illegal buildings for demolition next year, Beijing Deputy Mayor Wang Wei told China Daily. Most of China’s major cities are plagued by pollution of one sort or another. Earlier this month thousands of dead pigs were found floating in one of Shanghai’s main water sources.

Blackberry reports surprise profit after cutting expenses LACKBERRY (BBRY), B which is attempting a comeback with a new lineup of smartphones, reported a surprise profit in the fourth quarter after embarking on a cost-cutting program last year, even as sales continued to trail projections. Excluding some costs, profit was 22 cents in the period, the Waterloo, Ontario-based company said in a statement. That compared with an average estimate for a loss of 30 cents a share, according to data compiled by Bloomberg. The company said it expects to “approach break-even financial results” this quarter as well, defying predictions for another loss. The company’s return to profitability “is clearly ahead of schedule,” said Kevin Stadtler, president of Fort Worth, Texas- based Stadtler Capital Management, which owns about 60,000 Blackberry shares. “The company is making real progress and the Blackberry 10 product cycle has just begun.” The company, formerly known as Research In Motion Ltd (BB)., is counting on the Blackberry 10 lineup to make itself a contender to Apple Inc. (AAPL) and Samsung Electronics Co., letting it reverse a sales

decline and maintain profitability. To stay on track, the company will need the Z10 touch-screen model and the Q10, which has a physical keyboard, to be well received, said Pierre Ferragu, a Sanford C. Bernstein & Co. analyst. “A strong Blackberry 10 debut should set the company up for a profitable first quarter,” said Ferragu, who is based in London and rates the stock the equivalent of a buy. “Initial corporate demand will be strong.” The stock was little changed today, closing at $14.45 in New York. The shares have more than doubled in the past six months, fueled by optimism that Blackberry can regain competitiveness. Still, only seven of 45 analysts who track the stock rate it a buy. The gap between its current share price and analysts’ average price target is the largest of any major company in Canada. The company also said today that co-founder Mike Lazaridis, a former co-CEO, is stepping down as a director and vice chairman of BlackBerry. He passed the CEO reins to Thorsten Heins in January 2012 after the one-time industry leader lost market share to Apple and Google Inc.’s Android. As part of his turnaround

plan, Heins initiated a costcutting program last year to save $1 billion in annual costs. He eliminated 5,000 workers, sold off one of the company’s private jets, and cut the number of manufacturing sites from 10 to four. The company said today it now has about 12,700 employees. “Not only are we seeing the benefits of our financial results from our cost-reduction program, we’re seeing a new attitude and a cultural shift in the company,” Heins said on a conference call with analysts. “We continue to look at how to innovate faster and how to do things more efficiently.” Reviving sales is proving more challenging. Revenue in the fiscal fourth quarter, which ended March 2, fell to $2.68 billion, missing the average projection of $2.83 billion. The company shipped about 1 million BlackBerry 10 devices in the period, compared with the 1.1 million average estimate of 10 analysts. It shipped six million smartphones in total, missing the 6.9 million estimate. Interpreting sales data from the quarter is difficult because of the staggered introduction of the Z10. The phone went on sale in the UK on Jan. 31, in Canada on Feb. 5, and then across Asia and Europe in the follow-

ing weeks. It didn’t arrive in the U.S. until March 22, three weeks after the end of the quarter. Analysts’ early impressions of the Z10’s debut in the U.S., Blackberry’s biggest market, were mixed. Goldman Sachs Group Inc.’s Simona Jankowski cut her rating on the stock to neutral, based

on what she described as “tepid” sales at AT&T Inc (T). Peter Misek of Jefferies & Co. said AT&T’s corporate clients are showing “significant interest” in the phone and “could account for a meaningful portion of demand.” He advises buying the shares. Sales in the U.S. continue

to slide as a share of BlackBerry revenue. They accounted for about 14 per cent of total sales last quarter, down from 19 per cent three months earlier. The company’s global subscriber base also fell, dropping to 76 million from 79 million.

Cyprus says threat contained, no plan to leave euro HE president of Cyprus T said on Friday the risk of bankruptcy had been contained and the country had no intention of leaving the euro, in a speech laden with criticism of Europe’s currency union for “experimenting” with the island’s fate. Conservative leader Nicos Anastasiades spoke a day after banks reopened following an almost twoweek shutdown imposed as the country raced to clinch a rescue package from the European Union. Officials slapped firm limits on transactions to avert a run on deposits by worried Cypriots and wealthy foreign investors. In the end the reopening of the banks was largely quiet on Thursday, with Cypriots queuing calmly for the €300 they were permitted to withdraw. Anastasiades said the

restrictions on transactions - unprecedented in the currency bloc since euro coins and banknotes entered circulation in 2002 - would be gradually lifted. He gave no time frame. Cyprus’s difficulties have sent jitters around the fragile single European currency zone, and the imposition of capital controls has led economists to warn that a second-class “Cyprus euro” could emerge, with funds trapped on the island less valuable than euros that can be freely spent abroad. In a speech to civil servants in the capital, Nicosia, Anastasiades hit out at banking authorities in Cyprus and Europe for pouring money into a crippled Cypriot bank that now faces closure under the €10 billion ($13 billion) bailout plan that averted

the immediate risk of financial meltdown. “How serious were those authorities that permitted the financing of a bankrupt bank to the highest possible amount?” Anastasiades said. “I don’t want to say more,” he added. “Now is not the time to say who bears more or less of the blame.” Anastasiades clinched the last-ditch bailout in Brussels five days ago, but has faced a backlash from Cypriots angry at the price that came with it - the winding down of the island’s second-largest bank, Cyprus Popular Bank or Laiki, and an unprecedented raid on deposits over €100,000 that could spell the end of Cyprus as a hub for offshore finance. The country faces steep job losses and a prolonged and deep recession.

THE GUARDIAN, Monday, April 1, 2013

BusinessInterview Bonds market becoming more exciting to Ghanians, says Antwi The Ghana Stock Exchange (GSE) is the principal stock exchange of Ghana. The exchange was incorporated in July 1989 with trading commencing in 1990. It currently has about 36 listed companies and 2 corporate bonds. All types of securities can be listed. Criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency. The GSE is located in Accra. Adu Anane Antwi is the DirectorGeneral of Securities and Exchange Commission of Ghana. In this interview with BUKKY OLAJIDE, Antwi bares his mind on how he is making the Exchange more relevant. Excerpts: Ghana Stock Exchange is relatively young, with fewer securities than Nigeria. But what is the growth story so far ? INCE its inception, the GSE’s listings have been included in the main index, the GSE AllShare Index. There was a time the GSE was the sixth best index in the emerging stock market, with a capital appreciation of 116 per cent per cent. It also became the best index performing stock market among all emerging markets, gaining 124.3 per cent in its index level. Sometimes, index growth was a disappointing, partly because of high inflation and interest rates. The manufacturing and brewing sectors currently dominate the exchange. A distant third is the banking sector while other listed companies fall into the insurance, mining and petroleum sectors. Most of the listed companies on the GSE are Ghanaian but there are some other multinationals. In terms of performance, we have not been doing well in the past, but last year, we did well. We attained about 28 per cent returns, and that was a better performance because of government bonds, which has been over performing. The stock market seems to be better than bonds even though at some point in time, people were shifting resources from the stock market to government bonds. The Ghana Stock Exchange recorded nine per cent return in the first quarter of the year. In other words, investors who bought securities on the exchange between January and March could realize that margin of appreciation in the value of their shares. The appreciation, though marginal, compared to previous return, is still better than other investments like treasury bills and the interest that you would have realized on your bank deposits in a year. Are there steps being taken to make the Exchange more relevant? There is eight per cent withholding tax on dividend income for all investors. Capital gains on securities listed on the exchange will also remain exempted from tax until 2015. The exemption of capital gains applies to all investors on the Exchange. There are no exchange control regulations on the remittance of original investment capital, capital gains, dividends, interest payments, returns and other related earnings. Potential changes at the exchange include the introduction of automated trading and the listing of some state banks. The Bank of Ghana plans the development of mutual funds, unit trusts and municipal bonds at a subsequent date. These changes are aimed at making the exchange more relevant, efficient and effective. The exchange was also involved in preparing the draft law on collective investment vehicles. It seems that West African markets are experiencing the same challenges as it were, because

Antwi

For Small and Medium Enterprises, for now, what we have done at the Stock Exchange is to develop what we call Ghana alternative market, that is, to encourage listing for SMEs. There are some incentives for listing which have been relaxed for them. in Nigeria, there was also a shift from equities to bonds. So what is the concentration of equities especially on large cap companies, because in Ghana, you have some other equities taking a bigger chunk of trade. What is there in Ghana to encourage SMEs ? Yes, a particular company was having the whole of market capitalization. That is a risk because if one company has more than 50 per cent of your market, it is a risk because as soon as that company has problem, the whole market begins to have problem. For Small and Medium Enterprises, for now, what we have done at the Stock Exchange is to develop what we call Ghana alternative market, which is, to encourage listing for SMEs. There are some incentives for listing which have been relaxed for them. For instance, if you have to get some three or five years account, that has been reduced. There is a mortgage fund which has been set up in support of venture capital transfer to give them the financing for their transaction cost and then they will give back when due. Again, we have also ensured that these SMEs that are coming up are given to the Stock Exchange as opposed to underwriting the securities so that from day one, there is no question of “I went to the market and I was unsuccessful” so that underwriting has been a rule that we have incorporated in the listing processes for SMEs. The idea is to make sure that we can encourage more of these SMEs. They are also to raise just some few level of capital, not so much. There are a few number of Shareholders so many of these things have been brought together by giving to them as incentives and benefits to these companies to list. Apart from that, we are also talking to companies that are big enough We have what we call “clan 100” which is the assessment done by Investment Promotion Centre and we believe that many of the compa-

nies in this “clan 100” are potential companies that must come to the market so we are talking to this clan 100. In fact, we are organizing a conference in May, part of which we are devoting for workshops for this clan 100 for those that have not listed but still have potential to list and sell the idea and benefit of listing. As one of the major markets of West Africa, what do you think should be Ghana’s role in African Middle East Regional Committee ? We share common aspiration and ideas. So, we needed to articulate our consensus if that will be helpful. For us, Ghana will play the role that is expected of it in terms of cooperation, making sure that we participate effectively in AMERC programmes in terms of contribution and ensure that we have the right voice in AMERC to be able to have our consensus. So we will continue to be involved in all the programmes of AMERC because that is a platform for us to air our views and contribute towards development of the entire market What are the steps taken to reform the financial system to attract investors into the Ghanaian economy. The establishment of the Central Securities Depository (CSD) is a vision embodied in Ghana’s Financial Sector Strategic Plan (FINSSP), which sought to attract investors into the Ghanaian economy. The National Bond Market Committee was established. Arising out of its work the said Committee advised the Government to support the Bank of Ghana and the Ghana Stock Exchange to set up an automated securities depository and clearing and settlement system in Ghana. In other words, a Central Securities Depository with the stated objective of facilitating investment activities. Bank of Ghana spearheaded the establishment of the Central Securities Depository (CSD) alongside the introduction of an Electronic Auction system to handle the issue, custody, dealing and

redemption of government securities. This led to the establishment of an implementation committee to supervise the smooth implementation of a Central Securities Depository (CSD) to cater for all securities in Ghana. Membership was drawn from Ministry of Finance, Bank of Ghana and Ghana Stock Exchange. What are the objectives of the Central Securities Depositories ? The objectives of the Central Securities Depository are mainly to provide a central depository of securities in Ghana where records of beneficial ownership of debt and equity instruments will be kept in electronic form and to undertake clearing and settlement by book entry of equity and debt instruments. The objectives also included providing for the placement of physical certificates into the depository and the complete changeover from physical certificates representing ownership to the book entry format. What is the Exchange doing to assist the government with housing issues that seem to be a major problem in Ghana? The Security and Exchange Commission (SEC) of Ghana began the development of regulations to guide the establishment of a fund meant to help raise money from within the country to finance the construction of houses for the people. It will be known as the Real Estate Investment Funds, which will be floated on the Ghana Stock Exchange (GSE) for the public to buy. We are doing this because we believe that we can use the capital market to raise funds to undertake housing projects that can benefit all of us. When fully operational, there might not be any need for the government to go out in search of funds for such projects. In view of the failed attempts to source funds for housing projects, we intended to reduce the serious housing deficit in the country; the time has come for the government to look within. This fund will not be a unit trust as in the case of many on the market but it will be in the form of shares so that when one sells off his/her shares, there will be another buyer and that means that the fund will not be affected. The housing deficit in the country is estimated at about 1.5 million, a situation, which is giving landlords a field day because of the high rent charges. There have been many attempts in the past by governments to bridge the gap but the challenge had been how to raise funds from donors and other investors to be able to carry out any meaningful housing project. Since the Social Security and National Insurance Trust (SSNIT) washed its hands off such projects, it has become a major bane for governments. The hundreds of housing units constructed in parts of the country have been left at the mercy of the weather and squatters for lack of funds, while the attempt by the present government to construct 10,000 housing units throughout the country also ended up being hoax; also as a result of lack of dedicated finance and other contractual anomalies. This, among many others things, is aggravating the housing problem in the country and making those who cannot afford the expensive ones priced in United States dollars, vulnerable in the society. With the fund, the nightmare in finding dedicated funds from within to undertake such expensive projects will be a thing of the past. Subsequently, the reviewed Securities Industry Law meant to bring it up to international standards and best practices was currently before Parliament for passage into law.

The Security and Exchange Commission (SEC) of Ghana began the development of regulations to guide the establishment of a fund meant to help raise money from within the country to finance the construction of houses for the people.

BUSINESS INTERVIEW 45

THE GUARDIAN, Monday, April 1, 2013

Nigeria’s privatisation lacks merit, says Adeyemi THE Public Service International (PSI) is an international labour body for the unions operating in public service worldwide. In this interview with COLLINS OLAYINKA of our Abuja Bureau, the President of PSI Africa, Peters Adeyemi explains the new focus of the international labour body on the continent, amongst other labour related issues.

Not many people know PSI as an international labour body. Could you explain what PSI means and its mandates? UBLIC Service International (PSI) is a labour international organisation that works in the promotion of efficient public service. In Africa, PSI is a force to be reckoned with because we have considerable affiliates in different parts of the continent and in the Arab countries as well. In Africa, Nigeria is a dominant force as well especially in the English speaking East and West. PSI is very visible on issues that affect civil servants across the globe. These public services include those in municipal, education, health, electricity, water and other utilities’ providers. The major focus of public service in the last couple of years is what is referred to as ‘Quality Public Service’. This is about enhancing the quality of services that public servants render across the world. Side by side with this is the struggle against neo-colonial policies of our various governments particularly in Africa about wanting to privatize every public utility such as water and electricity. In Nigeria, we have affiliates such as the Nigeria Civil Service Union (NCSU), Medical and Health Workers Union of Nigeria (MHWUN), National Association of Nigeria Nurses and Midwives (NANNM), Non Academic Staff Union and Associated Institutions (NASU), National Union of Electricity Employees (NUEE), Amalgamated Union of Public Corporation, Civil Service Technical and Recreational Services Employees, Nigeria Union of Local Government Employees and Nigeria Union of Civil Service Secretariat Stenographic Workers. Fundamentally, the strongest unions in Nigeria perhaps with the exception of Nigeria Union of Teachers (NUT) are all in PSI. The entire world today is shrinking by the day from a global community into a global hamlet where country lives interdependent on each other. Therefore, there is hardly anything any trade union organization can achieve without collaboration either national, regionally or globally. That is why we find that the relevance of trade centres are becoming more pronounced because of the policies of governments that cut across the mass of the people. There are policies that are in place in various countries now that cut across the scope of various unions. When policies that are deemed inimical to the welfare of workers are introduced, there is need for either a central trade organization, regional or international to mount formidable resistance to such policies. So, the importance of networking and international solidarity is extremely important to the contin-

into mass looting of our treasuries. PSI believes that it is erroneous for anybody to say that government has no business in business. We have seen in countries even in Africa where governments have demonstrated that it has good reasons to be in business and making money for the good of the people. For instance, South Africa has a functional and flourishing Airline business and more visible is Ethiopia, which virtually runs its economy with money made from the Ethiopia Airlines. No matter what we say whether they are in private hands what is important is the fact that they are driven by governments. Are these not governments? Where is Nigeria in this? PSI is of the opinion that the Nigeria’s privatization exercise lacks merit and it is an attempt to cheat the mass of the people by selling government properties to a few super-rich government anointed people. PSI has fought against this in different parts of the world to say that handling over people’s properties and heritage to a selected few who had been made rich through government patronage only to begin a process of disengaging workers or recruiting workers on more or less servitude conditionality.

Adeyemi

ued relevance of trade unions worldwide. Has PSI ever intervened in any industrial matter in Nigeria? The PSI intervened in the attempt at privatising the power sector in supporting the struggles of the electricity union to ensure a wholesale privatization was not allowed. Such intervention was predicated on the work that had been done in other countries of the world. All of that enhanced the approach and knowledge with which the resistance process was driven. As the electricity union had benefited from that so other sectors are benefitting from the global expertise of PSI. The public service sector also benefitted from PSI on issues that have to do with the restructuring of the public service, which was not peculiar to Nigeria. We found most times that governments embark on reforms of public service with the sole aim of

reducing the workforce. The thinking of governments especially in Africa is the belief that workers consume the lion share of resources that are spent on the civil service hence the need to reform the service in order to cut down on these expenditures. The PSI has come with different types of campaigns putting the peculiarities of various countries into focus by enhancing the approach with the international exposure and knowledge acquired from the experiences of what has transpired from one country to another. Governments have various fora where they meet such as the ECOWAS and AU for instance for African governments where they meet to package various programmes and policies which impart on the lives of the people the govern, so also it is very important to have unions meet regularly

PSI believes that it is erroneous for anybody to say that government has not business in business. We have seen in countries even in Africa where governments have demonstrated that it has good reasons to be in business and making money for the good of the people

using various platforms where retrogressive policies can be rejected. What is PSI’s position on privatization as government policy to increase efficiency of public owned enterprises? PSI has insisted that while it is desirable to save costs that cannot be done at the expense of jobs. Government has to create the environment to create jobs and in our clime, where the informal sector is completely non-existence because of government inability to ensure stability of power provision. Instability of power provision has rendered the power sector virtually nonexistent. Regular power supply will ensure graduating students need not look for jobs in government ministries. They can operate in the informal sector with small capital and make end meet there. PSI in insisting that governments across the world especially Africa cannot close their eyes to massive corruption that is perpetrated by elected officials and their few collaborators in the public service and make the entire civil servants to pay the price for government ineffectiveness and inefficiency that have resulted

Why do you think PSI is relevant to labour unions in Nigeria? The PSI for us in Nigeria and Africa, is extremely relevant because every day we are confronted with policies that are directed against the survival of our members. We think that working with PSI will not only expand our knowledge, but will also enhance our skill as to how we engage our government in addressing the emerging industrial issues. Presently, the health workers have been on collision course with the government because there have been attempts by medical doctors to subdue the role of other medical workers. PSI is opposed to this and will collaborate with all the unions in the health sector to ensure that all health workers in the sector are treated equally and accorded professional respect they deserve. We are also working with the municipal workers to ensure that the money voted to local government councils get there and also used to provide infrastructure to the people at that level of government. The PSI is also mounting pressure to resist the privatization of water by governments. What would governments be left to provide for the people if they are allowed to privatize water? What should the continent expect from you as the President of PSI Africa? My aim as the President of PSI Africa is to increase the relevance of the continent in PSI. In the past, though we have been part of PSI, we have been very passive because we have not had leaders that are proactive. African affiliates in PSI, prior to my coming have been extremely dependent on donations from developed countries of the world. I have insisted that Africans must not present themselves as beggars in PSI. I insisted that we must pay our financial dues. For any union to have a voice at any global union, such a union must be up to date in the payment of its dues. Gone are the days when we wait for foreign unions to bring projects to us; we have decided that we will henceforth run our own show only inviting outsiders as observers.

BondWatch DLM BOND WATCH: APRIL 1, 2013

THE June 6, 2011 THEGUARDIAN, GUARDIAN,Monday, Monday, April 1, 2013

Published in association with (Regulated by the Securities & Exchange Commission of Nigeria)

THE GUARDIAN, Monday, April 1, 2013

Oil & GasWeekly ENI Declares Force Majeure On Bayelsa State Swamp Area Activities

Remi Aiyela, Editor-in-Chief

editor@NOGintelligence.com www.NOGintelligence.com

uPSTREAM NEWS

TALIANenergy major ENI said on Saturday it had susIState pended its activities in the Swamp Area in Bayelsa in southern Nigeria and ordered the closure of its onshore activities in the State. The company said the decision was made due to the intensified bunkering it was experiencing, consisting of the sabotage of pipelines and the theft of crude oil. They said the levels have now reached unsustainable levels regarding both personal safety and damage to the environment. The company, which has been in Nigeria for over 50 years, has over 154,000 barrels of oil per day (bpd) production of although in the Swamp Area, covered by the declaration of force majeure, its production is about 35,000 to 40,000 bpd. The company said the level of theft and losses due to the sabotage had now reached up to 60 per cent of its production. “The decision was taken due to an intensification of bunkering activities, or sabotage of the pipelines,” the company said in a statement. The loss to the Nigerian nation due to oil theft has been estimated at around $7 billion a year. The oil theft is reported to have reached unprecedented levels and is reported to be conducted by highly organised gangs.

MIDSTREAM NEWS Petrobras To Sell $5bn Nigerian Oil Assets move widely interpreted as a clear departure from IingNa foreign markets and considered strategic in realisthe Brazilian government’s aspiration for the country to become self-sufficient in energy, the country’s state-owned oil company, Petrobras is planning to sell its stakes in Nigerian oil fields to raise cash for domestic projects. The state-controlled company, formally known as Petroleo Brasileiro SA, has hired Standard Chartered Bank to manage the deal that may fetch up to $5 billion, sources close to the deal informed the Reuters news agency. Asian oil majors are said to be watching the development with interest, a move that could see an increase in their presence in the Delta region, given their interest in accessing producing assets as a way of gaining securing crude oil supplies. Private equity funds are also interested, banking sources said. Petrobras will sell its 8 per cent stake in the Nigerian offshore Agbami deepwater field, which is operated by United States energy firm Chevron and its 20 per cent share of the offshore Akpo field. The giant Agbami Field is one of the largest deepwater oil offshore discoveries in Nigeria with estimated reserves of 900 million barrels. Crude oil production began from the field in 2008 with a peak production of 250,000 barrels per day (bpd). The cornerstone of the development is one of the world’s largest floating production, storage and offloading (FPSO) vessels. Key components of the FPSO were fabricated in Nigeria, setting a benchmark for using Nigerian goods, labor and services. Agbami represents not only a new source of energy supply, but also provides employment and economic opportunities for Nigeria. Akpo, which began production in 2009 is located 200 kilometres offshore Nigeria in Oil Mining Lease (OML 130) in water depths ranging from 1,250 to 1,480 meters. Its proved and probable reserves are estimated at 620 million barrels of condensate and more than 28 billion cubic meters of gas. With its huge gas reserves, the field has been described as a gas field with oil. It produces to a 310-meter-long, 61-meter-wide and 31-meterhighFPSOweighing100,000metrictonsanddesigned to process 185,000 barrels of condensate and 15 million cubic meters of gas a day and to store up to two million barrels of condensate. Petrobras, which began operations in Nigeria in deep waters off the Niger Delta coast is divesting the assets in a bid to concentrate on exploration and production closer to home. It is now trying to raise funds for the $237 billion that it is expected to spend on developing domestic oil and gas assets. The company’s cash flow has been hampered by the fact that it is subsidising local consumption of gasoline and diesel, which the Brazilian government is keeping artificially low through government subsidies. Petrobras is expecting to help Brazil become self sufficient in oil and gas, as well as refined products. It hopes to double its current oil and gas production within a few years to about 5.2 million barrels of oil equivalent a day. Following the divestment, it is reported that the company will focus on exploration off the coast of Brazil in the subsalt region. The deep sea region is thought to contain billions of barrels of crude oil. It is not yet known whether the assets will be sold piecemeal or in one lot. Neither Standard Chartered nor Petrobras would comment on the reports. International oil and companies (IOCs) have been divesting their onshore assets in Nigeria in the last two years or so, a move that is reported to have yielded them over the $7 billion. Last year, the ConocoPhillips Nigerian assets were sold in one large lot, netting the company $1.8 billion.

NlNG Signs $1.6bn Ship-Building Contract With Samsung, Hyundai

SUBSIDIARyof the Nigerian LNG Limited, Bonny Gas A Transport (BGT) has signed a ship-building contract worth $1.6billion with South Korea’s Samsung Heavy Industries and Hyundai. The deal, which was sealed in London involves the construction of six new vessels for BGT. The Acting General Manager, External Relations, BGT, Dr. Kudo Eresia-Eke, said about the deal: “The six vessels, four from Samsung and two from Hyundai, which have a combined capacity of 1,053, 000 cubic metres, will increase BGT’s overall shipping capacity by 17 per cent.” “The new ships, which will replace BGT’s six oldest vessels were ordered through retained earnings from BGT, additional borrowings from an existing facility and new vessels debt provided by a combination of Korean Export Credit Agencies, international, regional and local commercial banks,” he added. He said the tankers would be delivered over a period of nine months from October 2015 to June 2016. The deal, according to him, entails BGT supporting more development of Nigerian content through the utilisation of local manpower, services and materials in all elements of the value chain in support of LNG’s commitment to increased local productivity. “This is in advancement of government’s aspiration to increase the country’s participation in the maintenance and repair of large ocean going vessels,” EresiaEke said. BGT was established in 1989 to provide shipping capacity for NLNG projects. It directly owns 13 of the 24 vessels, which deliver liquefied natural gas for Nigeria LNG to customers across the world. The remaining 11 vessels are owned via long-term leases. The company had said last year it would seek international loans to expand the operations of its shipping subsidiary, Bonny Gas Transport Limited, which has 24 LNG ships. It was said to be seeking a $1.6 billion loan, which France’s BNP Paribas and Guaranty Trust Bank Plc were brokering to fund the acquisition of the new vessels. A bank industry source had previously hinted that the loan would be medium-to-long term, with the deal expected to be sealed by the end of March. NLNG is a Nigerian joint venture company whose shareholders are the Nigerian National Petroleum Corporation - 49 per cent; Shell Gas B.V. - 25.6 per cent; Total LNG Nigeria Limited - 15 per cent; and Eni International - 10.4 per cent. NLNG was set up more than two decades ago to harness Nigeria’s natural gas resources and produce liquefied natural gas and natural gas liquids for export.

DOWNSTREAM NEWS OPEC Daily Basket Price Stood At $106.79 A Barrel Wednesday 27th March

HE price of OPEC basket of twelve crudes stood at T $106.79 a barrel on Wednesday, compared with $105.86 the previous day.

Meanwhile, Reuters has revealed that OPEC output is down to a 16-month low. According to shipping data and other sources, crude oil supply from OPEC is set to average 30.18 million barrels per day (bpd) for March, down from 30.42 million bpd in February. The report is putting the drop in supply partly down to

the force majeure declaration for part of the month after the Nembe Creek pipeline leak. Introduced on 16 June 2005, the new OPEC Reference Basket is currently made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), IranHeavy(IslamicRepublicofIran),BasraLight(Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela ).

in association with

REGulATORY NEWS

FINANCIAl NEWS Senate Joint Committee On Petroleum Industry Bill Inaugurated

HEprogress of the Petroleum Industry Bill remains T on course with the inauguration of the Senate Joint Committee on the Petroleum Industry Bill (PIB) in

KPMG: Investments In Oil and Gas Assets Accounted For Significant M&A DEAl VAluE Q2&3 2013

HE oil and gas sector accounted for a significant T portion of total deal value in Q2 and A3 of 2012 due totheactivitiesofindigenousandforeignplayersseeking to acquire oil and gas assets of various International Oil Companies (IOCs). Mergers and Acquisitions (M&A) transactions in Nigeria showed significant activity in Q2 and Q3 2012 following a lull in deal making in Q1 2012. The consumer goods sector witnessed the highest number of deals due to activities of key local and international trade buyers in Q2 and Q3 2012. The financial services industry also witnessed a number of deals due to policy reforms of the CBN. The total value of mergers and acquisitions (M&A) transactions in Nigeria increased remarkably by 379 per cent to $7.415 billion in 2012, compared to the $1.548 billion recorded in 2011, the report by KPMG has showed. Shell was involved in the largest deal by value in Q2 and Q3 2012 following the disposal of its interest in Oil Mining Lease (OML) 30, OML 34 and OML 40. Consequently, local and international players acquired various interests in these OMLs. The disposals of these onshore fields were carried out in order to streamline operations the report said. The big ticket oil and gas deals were the acquisition of a 45% interest in OML 30 Heritage Oil Plc Oil and Gas for $850 million; Oando Energy Resources’ acquisition of the ConocoPhillips assets for $1.8 billion; ND Western’s acquisition of Shell Petroleum Development’s (SPDC) 34 per cent interest in OML 34 for $400 million; and the acquisition of SPDC’s 30 per cent interest in OML 40 by Elcrest Exploration and Production Nigeria Limited for $102 million. The company predicts growth in indigenous participation in upstream oil and gas activities due to the Local Content Development Act and the disposal of assets by IOCs in line with operational strategies. However they expect a reduction in investments by players due to delays in the enactment of the Petroleum Industry Bill. The company says: “big ticket deals are expected to continue to occur in the oil and gas sector due to acquisition of IOC’s oil and gas assets by local and other international players.” The announcement of the upcoming Petrobras divestment will dwarf the deals of 2012 and will significantly boost the 2013 oil and gas deal value.

Four Banks In $225m Gas Pipeline Deal

IRSTBank of Nigeria Limited (FBN), United Bank for FStanbic Africa (UBA), First City Monument Bank (FCMB) and IBTC have jointly sealed a gas infrastructure financing deal worth about $225 million with Accugas Limited, a subsidiary of Seven Energy International Limited. Details of the deal, which was sealed recently by the banks in Lagos, indicate that the facility is to be utilised towards refinancing the existing $55 million debt secured for the Akwa Ibom gas pipeline project, with the balance of $170 million to be used towards partfinancingthecostofexpandingitsgasprocessingfacilities and building a new gas pipeline to supply gas to the Calabar National Integrated Power Project power plant. Speaking on the transaction, the Managing Director and Chief Executive Officer of FBN Capital Limited, Kayode Akinkugbe, said: “FBN Capital is very proud of the instrumental role it played in assisting Accugas to structure and arrange the financing for the project.” “The successful signing of this financing shows that lenders see Accugas as a robust project that will bring sound economic benefits to Nigeria,” he continued. Akinkugbe said the bank, as the global facility coordinator Bank for the project is committed to supporting innovative transactions, especially those that can open new boundaries for investment opportunities. He noted that there is a huge gap in terms of funding in Nigeria, adding that the bank is willing to be at the forefront in terms of financing developmental projects. “We have identified Seven Energy International, Accugas as the institution we want to support. We are willing to support average innovative transactions that can open new boundaries and we have made significant strides in creating flexibility and funding for Accugas.”

Abuja. The Joint Committee, which was inaugurated by the Senate President, Chief David Mark, will be cochaired by Senator Dahiru Umaru and Senator Emmanuel Paulker who already serves on the Senate Committee on Petroleum Upstream. The Senate Joint Committee on the PIB includes the Senate Committees on Petroleum Resources (Upstream and Downstream), Gas, Legal and Judicial Matters and Human Rights. Speaking at the inauguration, Senator Mark said: “We are taking this Bill seriously. The world is changing so fast. So is the petroleum industry. This is not a new Bill but a review of the Bill to meet with international best practices.” He called on Nigerians to co-operate with the committee by coming forward with suggestions, advice and recommendations for moving the industry forward.Hesaid:“Nigeriansarepatrioticenoughtoknow that what we are doing is in the best interest of all Nigerians. We have to update the Bill so that we can encourage investors. The Bill is a win-win situation for all the parties involved.” He stressed that the Bill must show transparency in the industry so that investors can see that they will get a return on their investments. Senator Mark also stressed the need to explore other parts of the country not just the Niger Delta. He said that the Bill would open up the industry and attract new investors. The joint committee is expected to take six weeks to submit its report to Senate.

NNPC’s $5.6 Billion Pipeline Protection Contracts To Be Probed

S the House of Representatives’ Committee on A Finance battles the Nigerian National Petroleum Corporation (NNPC) over allegations of failure to

remit certain funds to the Federation Account, the national oil company is in fresh trouble over the award of contracts worth N5.6 billion for the protection of pipelines to some private companies, some believed to be owned by ex-Niger Delta militants. Consequently, the House of Representatives has mandated its Committees on Interior, National Security and Intelligence as well as Petroleum Resources (Upstream) to conduct an investigation into the oil pipeline protection contracts NNPC awarded to firms linked to ex-militants from the Niger Delta. It was not clear if the controversial oil pipeline protection contracts under investigation involve the one awarded to Global West Vessel Specialist Limited (GWVSL), a firm believed to be owned by a former leader of the Movement for the Emancipation of the Niger Delta (MEND), Chief Government Ekpemupolo, popularly known as Tompolo. The contract is said to be worth $103.4 million for the supply of 20 vessels to secure the waterways. The pipeline protection contracts were awarded to ex-Niger Delta militants in a deal meant to solicit their cooperation and provide jobs for them after they had accepted the Federal Government’s amnesty in 2009. However, law-makers believe the contracts have failed to achieve their objective as oil theft and illicit bunkering in the region have been on the increase in recent months. They now accuse the Federal Government of awarding the contracts to security firms through NNPC in spite of the fact that the responsibility of pipeline protectionfallsunderthepurviewoftheNigerianSecurity and Civil Defence Corps (NSCDC). In a motion sponsored by Hon. Robinson Uwak (PDP/ Akwa Ibom), the lawmaker said the action was a violation of the NSCDC Act 2003 and amounted to an encroachment on the statutory responsibility of the NSCDC. Senator Uwak said that Section 3 (1) of the Act, states: “The Nigeria Security and Civil Defence Corps (NSDC) shall maintain 24 hours surveillance over infrastructure, sites and projects of the federal, states and local governments.” Furthermore, he said, the NSCDC has powers to arrest without a warrant, detain, investigate and institute legal proceedings against any person who is reasonably suspected to have committed an offence under the Act or involved in any transmission lines, or oil pipelines, Nigeria Postal Service (NIPOST) cables, equipment, water board pipes and equipment vandalism. Uwak said that in spite of this provision in the law, the Federal Government had embarked on spending billions of naira annually on oil pipelines protection contracts. Uwak said the contracts were in violation of the Act, insisting that the amount of money being spent on contracts could be further invested in the NSCDC, enabling them to do the job they are supposed to do.

THE GUARDIAN, Monday, April 1, 2013

NigeriaCapitalMarket NSE Daily Summary (Equities) as at Friday PRICE LIST OF SYMBOLS TRADED FOR 27/3/2013

CAPITAL MARKET 49

THE GUARDIAN, Monday, April 1, 2013

NSE Daily Summary (Equities) as at 27/3/2013

PRICE GAINERS

LOSERS

NSE extends filing dates of accounts for listed firms By Bukky Olajide and Helen Oji S part of its efforts to address the challenges faced by listed entities in meeting their mandatory periodic filing obligations with the Exchange for fiscal 2012 Audited Accounts and 2013 Interim Accounts, the Nigerian Stock Exchange (NSE) has announced that it would grant all listed entities an extended filing date from the due date of the required financial periodic submissions. According to a statement

by the NSE, the intervention was to ensure listed companies present statutory requirement accurately. The new announcement, according to the report, offers a fresh assurance to businesses and advisors affected by the early adoption of International Financial Reporting Standards (IFRS) and levels of regulatory approvals, which now includes Financial Reporting Council (FRC). “In response to the challenges being experienced by

listed entities in meeting their regulatory periodic filing obligations with The Exchange for fiscal 2012 Audited Accounts and 2013 Interim Accounts, the Nigerian Stock Exchange (NSE) has confirmed on Thursday March 28, 2013 that it will exercise discretion by granting all listed entities an extended filing date from the due date of the required financial periodic submissions.” The General Manager, Legal and Regulation

Division of The NSE, Ms. Tinu Awe, said in the statement, “the Exchange is in consultation with FRC and other Primary Regulators. While we believe that the timely disclosure of financial information is critical to stakeholders in the capital market as well as investors, the challenges which the entities are facing are germane”. Awe explained that during this period, the NSE will not apply the tag ‘Below Listings Standard’ (BLS)

beside the names of entities on the X-Compliance Report which is published on the website. She added that the Exchange would also forbear from imposing sanctions in terms of financial penalties. The nation’s bourse had recently introduced the XCompliance Report in mid2011 as a transparency initiative of the Exchange to maintain market integrity and protect the investors by providing compliance relat-

ed information on all listed companies. Companies listed on the Exchange are therefore required to adhere to high disclosure standards, which are prescribed in the listing rules of the NSE. Financial information, which is periodic disclosure and ongoing material events disclosure are also to be released to the Exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market.

THE GUARDIAN, Monday, April 1, 2013

GlobalStocks IPOs raise $20b as Pfizer to Goldman ride rally NITIAL public offerings Iglobally raised almost $20 billion in the first quarter, as companies from Pfizer Inc. (PFE) to Goldman Sachs Group Inc. took advantage of a rally in stock markets to sell businesses. IPOs generated 18 per cent more than in the year-ago period, led by Pfizer’s $2.6 billion sale of its animal-health unit Zoetis Inc. (ZTS) and Goldman Sachs’s offering of shares in German apartment landlord LEG Immobilien AG, according to data compiled by Bloomberg as of March 27. Initial offerings declined to about half the level of the fourth quarter, when companies raised about $37 billion. “We’re in a world where investors believe in repair and global recovery,” said Evan Damast, global head of equity syndicate at Morgan Stanley in New York. “While there are still a handful of skeptics proceeding with caution, the global investor base is very receptive to growth stories.” The Dow Jones Industrial Average climbed to a record this month and the MSCI World Index rose to its highest in almost five years. Sustained gains may help ease the biggest global backlog of IPOs since at least 2007, encouraging companies including Bausch & Lomb Holdings Inc. and China’s Alibaba Group Holding Ltd. to pursue offerings as soon as this year. The U.S. led IPO fundraising in the first quarter, with companies raising $8.91 billion, 44 per cent more than a year ago, data compiled by Bloomberg show. European companies generated $3.66 billion, a 25 percent increase. Asia was the biggest market to post a decline, with IPOs slumping 59 per cent to $2.88 billion. IPOs are likely to gather pace in the second quarter as companies across more industries proceed with sales and more private-equity firms seek to exit investments, said Mary Ann Deignan, head of Americas equity capital markets at Charlotte, North Carolina-based Bank of America Corp. “This may be the beginning of another golden age for IPOs,” said Deignan. “It’s an incredibly broad market.”

Companies in industries ranging from energy to technology, homebuilding and real estate went public in the first quarter, emboldened by the projected economic recovery and the least volatile market in six years. The VIX, a measure of volatility in U.S. stocks, has lost 45 per cent since the end of 2011. Blackstone Group LP’s Pinnacle Foods Inc., the maker of Hungry-Man frozen dinners and Birds Eye frozen vegetables, raised $580 million in an IPO yesterday. Other buyout firms are also looking to sell investments as they seek to raise new funds. Warburg Pincus LLC’s Bausch & Lomb and Madison Dearborn Partners LLC’s CDW Corp. both filed to go public last week, while Bain Capital LLC and TPG Capital’s Quintiles Transnational Holdings Inc. filed to raise $600 million in February. Global economic growth will accelerate to 2.4 per cent this year from 2.3 per cent in 2012, according to economists surveyed by Bloomberg. China, where growth slipped last year, will tick up to 8.1 percent from 7.8 per cent, and Europe will move from contraction to expansion, according to the survey data. “Money is continuing to flow into equities from fixed income as investors globally look for yield,” said Klaus Hessberger, co-head of equity capital markets for Europe, the Middle East and Africa at JPMorgan Chase & Co. in London. U.S. investors funneled at least $65 billion into equity mutual funds since the beginning of the year, according to data from the Washington-based Investment Company Institute compiled by Bloomberg. Estimated cash flows into equity funds have eclipsed additions to bond funds from the beginning of the year through March 20, the data show. Investors had pulled money out of equities for 19 of the 20 months before January. “We have seen globally a resiliency to the equity markets,” said Paul Donahue, cohead of Americas equity capital markets at Morgan Stanley in New York. “IPOs are delivering returns to the

buy side in excess of key relevant benchmarks like the S&P 500.” IPOs worldwide posted average returns of 17 per cent in the quarter, led by the U.S., with a 25 per cent average return, data compiled by Bloomberg show. By comparison, the S&P 500 has gained 10 percent and the MSCI World has risen more than six per cent. There are more than $165 billion of IPOs in the pipeline globally, according to data from Ipreo, a New York-based provider of market information. The pipeline of deals in Europe, the Middle East and Africa has risen more than fivefold since the end of last year to $34.2 billion, including an offering of shares in France Telecom SA and Deutsche Telekom AG’s

Everything Everywhere Ltd., a company with an estimated value of $15.7 billion, the data show. Four of the five largest IPOs this quarter came from Europe, including LEG Immobilien’s $1.6 billion initial offering in January and Esure Group Plc’s more than $914 million sale in London this month, data compiled by Bloomberg show. “An improved macro environment and low volatility levels mean banks’ risk appetite to underwrite transactions is robust,” said Edward Sankey, global cohead of equity syndicate at Deutsche Bank AG. IPOs in Asia, meanwhile, suffered the worst quarter in nearly four years, slumping to $2.9 billion, as Hong Kong deals dried up and mainland

offers were curbed as regulators sought to change listing rules to better protect investors. Still, IPOs in the region are likely to pick up in the next quarter, said Jeff Zajkowski, head of Asia Pacific equity capital markets at JPMorgan. “There’s been a noticeable recovery in the risk appetite for investors in Asian equities,” said Zajkowski. “The Hong Kong IPO market is recovering and we expect increased IPO issuance in the second quarter.” Chinese companies are planning initial sales in Hong Kong, which may raise more than $4 billion in the second quarter. China Galaxy Securities Co., a brokerage backed by the country’s sovereign wealth fund, plans to seek about $1.5 billion, while

Sinopec Engineering (Group) Co., a unit of the country’s biggest refiner, may start marketing a $1.5 billion offering in April, people familiar with the matter said earlier this month. While the IPO recovery could be derailed by macroeconomic risks such as a worsening of the sovereign debt crisis in Europe, the strength of investor demand for equities has so far bolstered the market, said David Hermer, head of Americas equity capital markets at Credit Suisse Group AG. “The broader market is proving remarkably resilient to news that generally in recent years might have derailed it,” Hermer said. “We’re seeing huge interest. The amount of money people are looking to put to

New York Stock Exchange

Investors shun Europe, emerging market funds as Q1 nears end NVESTORS bailed out of both European and Iweek emerging market equities going into the last of the first quarter over worries involving Cyprus’s bailout and its impact on the euro zone crisis, EPFR Global data showed Friday. Funds dedicated to Russia, which is exposed to declining commodity prices and the euro zone crisis, had their worst week since the third quarter of 2011, while emerging Europe equity funds saw over $100 million pulled out for the second week running, according to weekly EPFR data through Wednesday. “With the messy end-game of the Cyprus bailout dealing a blow to the notion that the worst may be over for the euro zone and fueling fears of similar events in Slovenia or Hungary, redemptions from EPFR Global-tracked Emerging Markets equity funds jumped to a 29week high heading into the final days of March,” Cameron Brandt, director of research at EPFR,

said in a statement. A European deal to save Cyprus’s banking system has roiled global markets in recent weeks. The bailout package has put intense pressure on the relationship between the euro zone member’s government and the banking sector, which faces severe contraction and job losses. EM equity funds suffered net outflows of $1.58 billion, their biggest weekly redemption since early September. Not coincidentally, investors poured money into bond funds, their favorite flight-to-quality assets. United States (U.S.) bond funds accounted for the bulk of the $3.72 billion that flowed into EPFR global-tracked bond funds during the week ending March 27, Brandt said, adding that flows into short-term U.S. government bond funds hit a 47-week high. “There was evidence of a slight increase in risk

appetite among fixed income investors,” he added. Flows into emerging markets bond funds climbed to a five-week high and approached the $1 billion mark for high-yield bond funds, EPFR said. Funds specializing in bank loan debt took in over $1 billion for the eighth week year-to-date, EPFR added. Conversely, Europe bond funds saw the biggest outflows among the major bond fund groups with Italy, Spain and Switzerland bond funds the only regional country fund groups to see any fresh money. “Appetite for Swedish debt, which peaked coming into the first quarter, has faded with Sweden bond funds posting back to back weekly outflows for the first time since September,” Brandt said. Municipal bond funds extended their longest outflow streak since the third quarter of 2011 as

Detroit’s new state-appointed emergency manager started work. Still, it wasn’t all doom-and-gloom for equities in the latest week. U.S. equity funds took in fresh money for the fourth consecutive week, their longest inflow streak since the fourth quarter of 2011, with actively managed funds outgaining ETFs for the first time since the third week of January. Small and mid-cap equity funds again attracted the bulk of the inflows, EPFR said. Among the Latin America country fund groups, Mexico equity funds continued to stand out “thanks to Mexico’s linkage to the U.S. economy and hopes that President Pena Nieto’s administration will push through some long overdue structural reforms curbing major oligopolies and opening up key sectors to foreign investment,” Brandt said. The $406 million they took in was the highest in over a decade.

THE GUARDIAN, Monday, April 1, 2013

Opinion Easter and the Nigerian society By George Ehusani ASTER is celebration of the resurrection of Jesus Christ. The innocent Son of God suffered a brutal crucifixion that was the climax of a short but remarkable life of commitment to love, truth, justice, humility, mercy, compassion, purity, peace and non-violence. In the course of passionately preaching and living out the truth as he knew it, condemning the injustices of the day and promoting a religion that emphasizes the spirit rather than the letter of the law, Jesus came in regular conflict with the status quo and those who benefited from it. Jesus was betrayed by one of his own disciples. He was denied by his closest associate. He was handed over to the Roman authorities by the chief priests of his religion. And he was condemned to death by Pilate the Governor. Death by crucifixion was the greatest symbol of the rejection of Jesus and everything he stood for by the religious and political authorities of the day. And to highlight this point even more, the crucifixion took place outside the walls of the city of Jerusalem. There is however a dramatic twist to the story of Jesus. Three days after the gruesome event of Calvary, the disciples reported that he had risen from the dead as he said he would, and some witnesses confessed that they had indeed seen him alive. This unprecedented event

and the devotion that followed it marked the beginning of Christianity as we know it. The resurrection of Jesus is for believers a powerful testimony to the ultimate victory of good over evil, the eventual triumph of light over darkness, and the much hoped-for conquest of wickedness, aggression, violence and death by the forces of love, peace, nonviolence and life. The Easter season therefore time to rekindle hope in suffering people everywhere, that evil will not continue to prevail; that truth cannot be silenced for ever; that all appearances to the contrary notwithstanding, ultimate victory belongs to the good, the just and the bearer of truth. The life and teaching, and the death and resurrection of Jesus Christ put together, are a lesson on the efficacy of humility, service, self-sacrifice and true love, by which one is prepared to die not only for one’s friends but also for the higher values of truth and justice. Indeed Easter teaches that there are values worth defending to the point of death; that human life can be readily and voluntarily sacrificed for the sake of love and in defense of truth and justice. Nigerians can learn a whole lot from the supreme sacrifice of Jesus Christ and the glorious outcome of this sacrifice. Jesus taught his followers that those who seek to be first must make themselves last and servant of all. He stooped down to wash the feet of his disciples. Though he had the chance to be rich beyond

The life and teaching, and the death and resurrection of Jesus Christ put together, are a lesson on the efficacy of humility, service, self-sacrifice and true love, by which one is prepared to die not only for one’s friends but also for the higher values of truth and justice. Indeed Easter teaches that there are values worth defending to the point of death; that human life can be readily and voluntarily sacrificed for the sake of love and in defense of truth and justice. measure, he chose to be in solidarity with the poor, the weak, the sick, the widow, the orphan and all the marginalized people. And finally he accepted a humiliating death on the Cross in order that his people may enjoy abundant life. These are powerful lessons, which Nigerian men and women of all creeds and ideological persuasions need to imbibe. The death and resurrection of Jesus challenges incumbent and aspiring leaders in Nigeria to abandon the path of selfishness and greed, and the inordinate ambition for power at whatever cost, which have been the bane of our socio-political history. With Jesus’ commitment to a life of love, humility, service and sacrifice eventually vindicated by the event of the Resurrection, and celebrated annually at this time by believers through the course of history, Easter challenges Christians and non-Christians alike to embrace those higher values exemplified in Jesus that guarantee ultimate fulfillment for individuals and lasting peace for societies.

In the midst of widespread criminality and corruption that thrive side by side with a vibrant display of religiosity in our land, Easter challenges Nigerians to take a close look at our social morality that is clearly at variance with our robust religious enterprise. The contradiction is a major source of embarrassment to our nation, and thoughtful Nigerians must spare some moments during this season to reflect upon it. The core of religion as taught by Jesus Christ whose resurrection we celebrate at this time, is not the outward display of empty ritualism where Nigerian worshippers seem to excel beyond all else. Beyond the popular crusades, prayer vigils, dry fast and miracle explosions, Jesus calls his disciples to the practice of authentic religion that is to be found in a passionate commitment to love, truth, justice, honesty, mercy, forgiveness and self-sacrifice. • Reverend Father Ehusani is a former Secretary General of the Catholic Secretariat of Nigeria.

Chinua Achebe: A mix-bag of memory By Eddie Mbadiwe OLUMES have already been written and a lot more is still to V come on the life and times of Professor Chinua Achebe. His works will last as long as English literature with an African slant is taught worldwide. Chinua’s death has re-emphasised what I always told my students. The only person who can immortalise you is YOU and you better do it in your lifetime. Chinua will be certainly pleased with all the encomia and sometimes controversy following his glorious exit. This exit looks like it was preplanned. I read `Things Fall Apart’ not as compulsory study at Government Secondary School, Owerri many years ago. Since then I have also read other books by Achebe, notably Anthills of the Savannah, Arrow of God, The Trouble with Nigeria and his latest There was a country. Being a scientist and not an artist, I consider myself not qualified to write a critique of Achebe’s work. However, I know that at various times since leaving Ibadan, I have been present at discussions by other Ibadan Alumnae artists including my friends Prof. Isidore Okpewho (now living in the States); late Flora Nwapa (trailblazer); late Dr. Stanley Macebuh (first class mind). One thing that nobody can dispute is that Achebe planted African literature solidly, prominently and permanently on the world stage. This tribute is different from the myriad of what I call the `protocol ones’ that have filled our newspapers in recent days. This has a personal angle. When I graduated from Ibadan, the drums of the civil war were already rumbling loud and clear. It was a few months later that the shells started landing in Gakcem and Obolo Afor. The full blown war saw me working for Research and Production in Biafra. When the war ended, I did a brief stint with Imperial Chemical Industries, Apapa, which I found monotonous. I was lucky thereafter to land a job as Assistant Lecturer in Biochemistry at the University of Nigeria, Nsukka. At that time, the scars of war were very visible all over Nsukka and the university was in dire straits financially. The university seemed to be dithering. Chinua was professor in the department of English. It was in this staid and boring environment that a group of pro-

This tribute is different from the myriad of what I call the `protocol ones’ that have filled our newspapers in recent days. This has a personal angle. When I graduated from Ibadan, the drums of the civil war were already rumbling loud and clear. It was a few months later that the shells started landing in Gakcem and Obolo Afor. The full blown war saw me working for Research and Production in Biafra. When the war ended, I did a brief stint with Imperial Chemical Industries, Apapa, which I found monotonous.

active lecturers – Chimere Ikoku, Ikenna Nzimiro, Mang Obasi, Chinua Achebe, Emmanuel Obiechina, Okey Emordi, started producing an in-house magazine called `NSUKKA SCOPE’. The mission of the scope was to move UNN forward as quickly as possible and by all means. After the first publication, Chimere Ikoku invited me to join the group and that was my first close contact with Chinua Achebe who was editor. Nsukkascope was red-hot potato, which got snatched up as soon as it hit the newsstand. I found that the editor, Chinua was very particular about time and deadlines for submission of scripts. This presumably was a carry-over from his student days at Government College Umuahia. He also had an eye for details and a commitment to a better university working environment. He spoke passionately about the potential stored up at Nsukka. UNN was the melting pot of all those who had fled from Ibadan, Lagos and to a lesser extent Zaria at the outbreak of hostilities. UNN being an insular university more or less at land’s end, life on campus sometimes got boring to put it mildly. The young lecturers from time to time put together social events. One cannot remember seeing Chinua at any of those. He was so engrossed with his work. I can also count on my fingers, the number of times I saw him at the Senior Staff Club. I should know because I was the social secretary. My next close-up with Chinua was when politics returned. We used to meet and discuss at the chancellor’s lodge – New Haven Enugu. The chancellor of course was Dr. Arthur Nwankwo who was very prominent in Aminu Kano’s PRP. Chinua had very strong views about the direction Nigeria should go but his romance with politics yielded no dividends. The chancellor’s lodge was a hot bed of renaissance politics and among other regular visitors were late Ikemba Nnewi Chief Emeka Odumegwu Ojukwu, Professor George Obiozor, et al. Soon after this, his terrible car accident happened and he was flown first to England and later the United States. One is thankful that Chinua survived that crash to be able to continue writing though now from a wheel chair. Anybody who did not have the resources and connections available to Achebe would have surely died from that crash. It was that bad. Our paths did not cross after that for I left for the U.K for my self-improvement. Some four years ago, Professor Godson Osuji as co-ordinator got in touch with me and others and proposed what we now call `Professor Agu Ogan Distinguished Lecture Series’. This is like a pay-back return to UNN by lecturers and students of Biochemistry who either worked with or passed through Professor Ogan. Many of these were now professors in different part of the world. Professor Osuji requested that I contact Chinua to be Chairman of the series. Of course, we all knew Chinua would not be physically present but I still made the call. Chinua in his characteristic soft-spoken, modest way thanked us for what he said was a noble and novel idea. Accordingly, to him it was uncharacteristic of Nigerians to want to give back for having passed through a place, the claim is that their strength pulled them. He wished us well and accepted to be chairman. That was vantage Chinua.

It will be inappropriate and in a way cowardly to end this short tribute without saying a word or two about the controversy surrounding Achebe’s latest and last book There Was A Country. In the lives of all great men, there is always the hand of fate and so it is with Chinua. The writing and publication of There was a country are not mere coincidences! The reason people engage in pains-taking research (not examinations) in reputable universities is first and foremost to seek out the truth and in the process make a contribution (no matter how small) to the vast body of knowledge. The price for this endeavour could be a doctorate degree. One hopes Nigerian universities will guard this tradition jealously. In the true spirit of scholarship we must read There was a country against this background. Facts are sacred and comments are free. Chinua Achebe in what he called A Personal History of Biafra reported events as he saw them. The main bone of contention from Achebe’s critics is what he wrote about Chief Obafemi Awolowo. Chief Obafemi Awolowo is very high in my list of heroes. As a secondary school student, I left school without an exit to go watch Chief Obafemi Awolowo land in his helicopter at St. Philips School, Arondizuogu and deliver a campaign speech. He had been warned not to make that trip but he ignored the warning. That was in the DPNC days of my late uncle Dr. K. O Mbadiwe. Chief Awolowo’s courage was simply phenomenal and he surrounded himself with some of the best brains in the land – Chief F.R.A Williams, Tony Enahoro, Chief Shonibare, S.G Ikoku, J.S Tarka, etc. Chief Awolowo’s commitment and defence of the Yoruba nation cannot be faulted. Every Yoruba man to an extent is a beneficiary of Chief Awolowo’s vision in education – UPE, healthcare, rural water and electrification. With hindsight, one wonders if Nigeria would not have been better off if the other regional leaders followed in his footsteps. It is possible we would have ended up with a strong working confederation called Nigeria. However, the fact remains that Chief Awolowo either said or wrote that `Starvation is a legitimate instrument of war’. It is also on record that at the end of the war, every Easterner who had money in any bank received £20 irrespective of his deposit. We will be doing a great disservice to knowledge by wishing away these facts. I also agree with those who say that we have moved on from those positions but you cannot vilify Chinua for recording history as it unfolded. Chinua has translated to immortality but in the interest of knowledge and scholarship those spitting fire at Chinua should have another read of his book. They may be in a better position to sift facts of history from the deductions made by Chinua. To Christie his devoted wife of many years and her children, I offer my sincere condolences and pray that God will bless and welcome Chinua to his bosom. Adieu Chinua! • Dr. Mbadiwe is a member of the House of Representatives.

THE GUARDIAN, Monday, April 1, 2013

Opinion Ashikiwe: The Motor-Park Economist By Uzor Uzoatu URS was a meeting of minds on the OP-ED pages of The Guardian in the 1980s. He signed off his articles as “Motor-Park Economist” while I signed off my pieces as “Peasant Theatre Director”. I was in wonder why a “motor-park economist” wrote in a language that could only be grasped by only seasoned professors. I did not have to wonder for a long time before we met physically in the same office as pioneer staff of the African Guardian magazine. The man was then known as Ashikiwe Adione-Egom but was later in life addressed as “Pastor Luke” and Peter Alexander Egom. The news-feature magazine African Guardian, with Ted Iwere as editor and Andy Akporugo as editor-in-chief, had in my humble opinion the most distinguished staff ever gathered anywhere, notably Eddie Iroh, Sully Abu, Pini Jason, Greg Obong-Oshotse, Okey Ndibe, Ada Momah, Ngozi Ojidoh, Kingsley Osadolor, Fred Ohwahwa, Joni Akpederi, Emmanuel Aguariavwodo, Stanley Amah, Ola Alakija, Seun Sonoiki, George Ola Davies etc. Of course, Ashikiwe who always wore short knickers to the office stood out. It was inevitable, as arranged by Editor Ted Iwere, that the “motor-park professor” and the “peasant theatre rustic” would somewhat “clash”. Ashikiwe as the head of the economic team had anchored a cover story on the Organisation of Petroleum Exporting Countries (OPEC) against the background of falling oil prices that threatened the very existence of Nigeria in the early days of Military President Ibrahim Babangida’s regime in 1986. Ashikiwe’s report was worthy of a professorial dissertation but Editor Iwere felt it could not be understood by

the common reader. I was then summoned by the editor to write the cover story in a language that the average magazine reader could get along with. I could not say no, for in the business, the editor’s word is final. It took me a very long night to get to grips with the meat of Ashikiwe’s offering, before I finally settled down to write the cover story. I refrained from putting my byline on the story so as not to draw the ire of Ashikiwe. When the magazine was published I found out that Editor Iwere had put my name smack as the writer of the cover story. I promptly decided to make myself very scarce from Ashikiwe’s presence. I was indeed very surprised when he eventually caught sight of me and embraced me, advising me that I had a style that suited literary writing, which will bode me well in writing novels. He then bought me lunch at the Guardian canteen. He instantly adopted me as his bosom brother, sharing his salary with me, for he had no need for money, as he told me. I had to believe him because he was living in the hotel! I cannot forget the day Ashikiwe came to the office, not in his trademark shorts, but in this bespoke black suit complete with tie and a red kerchief jutting out of the breast pocket. He was waiting for me, and promptly accosted me. “You poet, I’ve been waiting for you,” he said, dragging me along. “Follow me, I’m going to propose.” I followed him to the Guardian canteen but I did not see any lady he was about to propose to. He kept buying drinks until very late in the night without making the announced proposal. I came back to the office the very next morn-

He quickly built up a solid reputation on the pages of The Guardian when it was set up in 1983 and then became a foundation member of The African Guardian magazine in 1985. He later became the editor-in-chief of Financial Post newspaper and Business in ECOWAS magazine. ing only to see Ashikiwe in an even more breathtaking suit with an elegant white lady, a Dane, as his companion. There was no need for words. We had a very silent lunch thereafter before he departed with the ever-smiling lady. Born in Ukala-Okpunor in Oshimili North LGA of Delta State, Ashikiwe saw himself as “a full-blooded Igbo” that runs counter to the identity crisis of some of his Anioma brethren. He was a star student and athlete at Kings College, Lagos. He took his educational pursuit to the esteemed, Downing College of Cambridge University in England where he used to share honours with the British champion and latterday novelist Jeffery Archer, author of The Prodigal Daughter, in the 100 metres dash. He left Cambridge University in June 1966, and flew into Lagos after the July 29, 1966 counter-coup in which the Igbo were routinely killed. He was detained for seven months at Ikoyi and Kirikiri prisons from July 18, 1967 to March 14, 1968. He then flew out of Nigeria for Europe on April 18, 1968. He spent 14 years in Denmark and Tanzania, reading and teaching Social Anthropology and Economics. He alongside other pursuits served as an adviser to the Tanzanian Central Bank under the watch of then President Julius Nyerere before returning to Nigeria for good late in 1982. He quickly built up a solid reputation on the

pages of The Guardian when it was set up in 1983 and then became a foundation member of The African Guardian magazine in 1985. He later became the editor-in-chief of Financial Post newspaper and Business in ECOWAS magazine. A devout Catholic, he had occasion to branch out into Pentecostalism and served as Pastor Luke at the Ibru Centre in Agbarha-Otor. He later returned to Catholicism of course. He became attached to the Nigerian Institute of International Affairs, Lagos and ran a book publishing concern on the side. He was celebrated as the character Ashiki by his former colleague Okey Ndibe in the novel Arrows of Rain published in the esteemed Heinemann African Writers Series. He wrote his 2002 book Globalization at the Crossroads: Capitalism or Communalism with the name Luke Adione-Egom while the 2007 book Economic Mind of God bore the name of Peter Alexander Egom. The latter book was dedicated to his grandchildren Laerke, Magnus and Kasper. He had a liking for living in hotels, and even on his bed at the Lagos University Teaching Hospital (LUTH), Idi-Araba, Lagos he retained his sense of humour to the very last, telling his friend Tam Fiofori who had come visiting that cancer of the prostrate was unkind to have denied him the God-given ability to walk! • Uzoatu was a pioneer staff member of the African Guardian magazine.

Not quite a reckless governor By Etim Etim ITHIN the stormy politics of the Peoples Democratic Party W (PDP), it was expected that Governor Godswill Akpabio would sooner or later walk into an ambush. He has assumed a towering profile and an influential figure in the ruling party. A close ally and keen supporter of President Jonathan’s, Akpabio’s enthusiastic support of Jonathan’s re election naturally put him on collision path with a few other governors. As the chairman of PDP Governor’s Forum, Akpabio’s briefs include whittling down the capacity of the larger body, the fractious and noisy NGF, which had increasingly become antagonistic to the president. He was largely adjudged as the right man for the job, especially given his style and substance. But when Akpabio announced with gusto that his task also included ridding the PDP of Judases, it was apparent that he had unwittingly drawn a line in the sand. The ruling party itself is not noted for an iota of civility and so by last week Akpabio’s PR machinery was on overdrive to blunt off a barrage of scathing and scurrilous media attacks launched against him. Newspaper articles, editorials, TV talk shows and radio phoneins were all focused on the governor all of last week. The battle will surely get more brutal as we get closer to the political season. The central theme of the criticisms is that the governor is reckless in managing the state’s finances because he gave a car gift to a music star and his wife and bought lunch for N6 million for party delegates at a meeting in Port Harcourt. If these are what created the media hysteria of the last one week, it has exposed a major weakness of this very important institution in Nigeria – its susceptibility to manipulation. A governor spends public monies based on the state’s appropriation law (or the budget). In Akwa Ibom State, the law permits the chief executive to spend on donations, charities and gifts. Typically, the legislation does not specify the beneficiaries and the specific amount,

Since the core aim of these sponsored attacks is to ridicule the governor and make him less effective, the media should be smart enough to stay away above the fray. By falling for the manipulation of deceitful and selfish power seekers, our journalists have actually demeaned themselves.

but it is expected that the governor will exercise reasonableness, care and acute sense propriety in dispensing his generosity. Emotional and generous to fault, the governor has lived up to this expectation. If, however, critics could point at any genuine circumstance in which Chief Akpabio might have given more than necessary, Akwa Ibom people are wont to see it more as a mistake than misconduct. In the last six years, we have appraised this governor on the basis of broad and far-reaching KPIs (key performance indicators) and our collective verdict is that he had done well. Even corporate organisations have budgets for donation and charities, sometime grouped under its corporate social responsibility (CSR). As a Corporate Affairs Manager for two big banks between 2000 and 2006, it was my lot to prepare the budgets and spend money on the banks’ CSR. A good CSR generates enormous goodwill for a business and ensures mutual understanding between the company and the community. So when a company provides potable water, build schools and hospitals and other amenities for a community, it naturally expects that the community will intrinsically become its ambassador, defending its policies and supporting its operations whenever it matters. By attending Tuface’s traditional wedding in Eket and announcing the car gift, Governor Akpabio was indirectly making the musician an important ally of the state and his administration. Mr Innocent Idibia has chosen to marry an Akwa Ibom girl and courteously extended an invitation to the governor. Should Chief Akpabio have declined the invitation or attended the event without a gift? Many have noted that Mr. Idibia has many cars and so did not need an additional SUV. So the governor should have donated a space shuttle? Brands pay heavily for celebrity endorsement. Only an inept leader will fail to take a full advantage of a star wedding in his domain. This is, however, different from Governor Fashola bankrolling the wedding of Tinubu’s son or ACN governors contributing N10 billion to pay for the 60th birthday celebrations of the Asiwaju himself. These are not CSR, and that is why it is so baffling that our political pundits and investigative journalists did not beam their searchlight on it. Since the core aim of these sponsored attacks is to ridicule the governor and make him less effective, the media should be smart enough to stay away above the fray. By falling for the manipulation of deceitful and selfish power seekers, our journalists have actually demeaned themselves. The pattern of the media commentaries clearly suggests that they are mischievous, jaundiced, politically motivated and sponsored. The

Punch’s editorial was just a synthesis of bile. Last year, the Akpabio administration spent millions to support the Nigerian Guild of Editors conference in Uyo. Many senior editors from the newspaper attended and benefitted from the governor’s legendary generosity. None of the columnists that attended the conference turned down his offer. A few years ago, some Lagos-based journalists came to Uyo for a meeting. Somewhere in Abia State on their way back, they were kidnapped. It was reported that the journalists lost N3 million to the bandits. In all the extensive media coverage of the unfortunate incident, our columnists did not ask how the reporters got the N3 million cash that Sunday morning. But the governor’s donation of only N6 million for lunch for over 1,000 party delegates in Port Harcourt has become the focus of baleful editorials and columns. Are PDP delegates less human than journalists? Are the governor’s kind gestures tolerable only when our media pundits are the sole beneficiaries? When the Boko Haram insurgents bombed a church on Christmas Day in 2011 and killed several innocent and hapless worshippers, Chief Akpabio rushed there with a N50 million gift and words of comfort. Our punctilious opinion writers did not mention this. In fact, they even failed to notice that the northern governors, some of whom are now jostling for presidential ticket, stood aside unconcerned. Akpabio’s new stature is obviously a source of discomfiture to many of his peers. His strong support for the president, himself a bête noir of a kind, has made him many enemies within his party. They are now fighting back. I understand that a huge amount of money has been voted to wage a ‘shock and awe’ media war against the governor in the next few months, ‘just to cut him to size’, as a political editor said last week. There are also plans to rehash old petitions and fabrications in order to malign Chief Akpabio and weigh him down. The media should be very circumspect in jumping into a fight they are not party to. Politicians ultimately sort out themselves after every election, but a damaged media suffers irreparable loss. No matter how big the inducements are, journalists always lose their integrity, reputation and respect when they are manipulated to publish untruths. It is so painful to see a reputable newspaper house succumb so easily to the lucre of politics. Chief Akpabio will also have to moderate his public statements and show enormous restraints whenever he handles the microphone. Every word he utters and every decision he takes will be subject to microscopic analysis for uneasy lies in the head that wears the crown. • Etim lives in Uyo.

THE GUARDIAN, Monday, April 1, 2013

Media

Representative of the Governor of Kaduna State, Commissioner for Information, Mallam Saidu Adamu; (left) awardee, Anike Agbaje-Williams and the Chairman of the occasion, Chief Kenny Martins at the weekend… in Lagos

Chairman of the occasion, Chief Kenny Martins presenting a post humous award to late Hubert Ogunde, received by the Artistic Director, Dance, National Troupe of Nigeria (NTN), Arnold Udoka… PHOTOS: CHARLES OKOLO

‘Broadcasting should be more rewarding’ By Gbenga Salau

NIKE Agbaje-Williams is a woman many A envy, not just because of her enviable record as the first lady to appear on television screen in Africa, but also due to the dexterity with which she presented her programmes and news as a broadcaster. She has since retired but none of her children went into broadcasting, the profession she gave all of her life, having spent over three decades before retiring. Although she came into broadcasting by accident, she said she never encouraged any of her children to pick up the profession because the reward system is too discouraging, noting that “Broadcasting squeezes everything out of you; all it gives you is a pat on the back, with ‘that was a good show’”. She stated this in Lagos at the weekend in a chat after her induction into the Hall of Fame for Broadcasting and Performing Arts (HFBPA). Besides Agbaje-Williams, other inductees in the broadcasting industry were Benson Idonije, Jide Odumosu, Lekan Ogunbanwo, Julie Coker, Ahmad Isah, Chief Raymond Dokpesi, Hon. Abike Dabiri Erewa, Chief Peter Igho, Gen. Ibrahim Babangida and Alhaji Bawa Garba while Chief Obafemi Awolowo, Segun Olusola and Ernest Okonkwo were post humously inducted. While commenting on the honour done her by being inducted into the Hall of Fame, Agbaje-Williams declared that the honour was ordained by God, adding, “I did not think I deserve any award because the award I am waiting for is that when I depart this world I get an award in heaven. And I pray that you will all be able to get an award in heaven. When you behave well on earth, you get an award in heaven.” She, however, thanked God for laying it in the heart of the organisers to reward after she left the scene many years ago, saying, “I do not see my self as anything because the bible says we are dust on the face of the earth but because they have decided to award me today, I pray that we all receive awards in Jesus name and no matter how far you all go, may your children excel. “A parent cannot say he or she is successful unless her children excel and I thank God for my late husband, who was at a time the Chief Justice of Oyo State and today three of my children are lawyers with one of them as Assistant District Attorney-General in the United States and I thank God for him. Do not say you are successful unless your children do better. Your children must excel.” Agbaje-Williams was not affirmative on whether she enjoyed her time as a broadcaster, only saying, “I will not say I did and I will not say I didn’t because when there is a

curfew and I have to go to work, I will be driving a lone at night; security men will point guns at me, barking, ‘stop there, stop there’, and I will have to stop in the night and it is a good thing that no bullet escaped. “When they asked, ‘where are you going’ and I tell them I have to read the news, they will say, ‘go, go’. There was a day I went to interview all the Kings of Oyo State and I was coming back home and these hunters who go looking for animals pointed a gun at me, ordering me to stop. I told them we were broadcasters that we went to interview kings. “If a bullet had escaped from their guns, where would I be today? I did not encourage any of my children to go into broadcasting because it is a kind of job that squeezes everything out of you. All you get is ‘that was a good story’ and that is. And in broadcasting, you are good as your last performance. So, no matter how well they say you are good, you must do better next time. So, I did not encourage them”. She, however, disclosed that her husband encouraged and motivated her, saying he was very supportive: “I have a husband who was understanding even with my pregnancies. I will say I have to go to work and he would take me to work. There was a day we were doing all night broadcast and I was about seven months pregnant. My boss and I were in the studio and my husband came at night around 12 midnight and he was looking at us in the control room and my boss asked, ‘who was that’ and I said ‘that is my husband’, and he said ‘what does he want’, and I said ‘I do not know’. My boss said, ‘carry your stomach and go’. I would have stayed all night to do that broadcast”. On how she felt being called the first lady of the tube, Agbaje-Williams opined that she did not give it a thought because she didn’t see herself as anything, adding, “Because if you have read my book, I said I never planned to go into broadcasting at all. When I had my first baby, I wanted to be a full time housemother. It is in the book I wrote after I retired, entitled, The magnitude of God, Reflection of His Grace and Glory. “It was a Permanent Secretary in the Ministry of Information, who informed me about a new television station that was about to be set up in Oyo State then. He asked me to apply and I said they do not want people like me. He mounted pressure on me and I went for the interview. “As soon as I was interviewed, the only one white man on the panel asked when I’d like to start and within me I felt, ‘is it that easy’ and I said September and I gave them the date and I started in September. When we started training, it was from 9am until

News is important; they should not be cutting into news because they want to make money but that is the situation today. I do not like it but I do not know, maybe many people like it evening everyday and it was not easy but I thanked God for the way in which He enabled me to perform and I thank God for my children too. “They are not in broadcasting; they are in the legal profession and the only one in this country is a pharmacist. And I did not want to marry a lawyer. I did not like law at all but God packaged a lawyer in a wonderful, mysterious way and I thank God for everything”. Doing a comparison of broadcast practice then and now, Agbaje-Williams said that standards were falling, noting that in her days, the news programme starts with commercials at the beginning, then the news and the commercials at the end but that today it was not so, noting, “Every three to five minutes is sliced with commercials. News is supposed to be grade A broadcast but today the way they slice in commercials is very distracting. “News is important; they should not be cutting into news because they want to make money but that is the situation today. I do not like it but I do not know, maybe many people like it. The main thing is that you are uninvited guest in the homes of your viewers and you present to your viewers what they want and not what you want because you want money so you are putting the commercials, which are very distracting. Today, you are listening to very important news, and they break in with something; it is not good”. Her words of advice for upcoming broadcaster is to keep putting in their best and not dress to insult their viewers, adding, “They should put on their very best. The way some people dress on television is questionable; I do not like it. Some people wear mini skirt and you see everything. I don’t like it. Some people are enjoying it but what can I do? I have retired so many years ago. And there are better people in the offices today. But I think you are uninvited guest, so you put in your best behaviour and best appearance”. OVERNOR of Kaduna State, Alhaji G Mukhtar Yero, who was represented by the Commissioner for Information, Mallam Saidu Adamu, commended the organisers of the Hall of Fame as a platform to appreciate the contributions of practitioners, who were being honoured and a motivation for

upcoming professionals. He stated, “Whatever you do, people are watching you and we tend to understand that without the media, so many things would have gone wrong. And by the time those who have laboured in making sure that they provide us with the basic information that we need by watching television or listen to the radio, it is important that we appreciate their contribution and a way to motivate them and encourage upcoming practitioners. And I am sure that this is why the governor has sent me here. “I believe it is being done at the right time; it is long overdue because we should have started this as far back as 1980, but as the saying goes, ‘to be late is better than never’ and now that this organisation has started this Hall of Fame, I want to believe that a lot of people will come to recognise its importance. “It makes me happy because at one time, I was a radio presenter before joining politics. And when I see this happening, I feel that one day I would be one of those that will be awarded. “Secondly, one of my boys that I trained is one of those to be awarded tonight. I was happy that one of my products is being honoured and being recognised as one of those who have contributed to this industry. So, I feel highly honoured and happy.” Chairman of the day, Chief Kenny Martins said he felt honoured as chairman of the occasion because some of the awardees were people he looked up as personal role models. He noted, “It is always fit and proper that people who have worked very hard and made personal sacrifices for the good of their country are remembered and honoured by a grateful nation or their professional colleagues, long after they have left office. It is also gratifying for one to realise that broadcasters, through whom some of the strongest criticisms were delivered to some of the inductees today when they were in public office, is also the medium that have selected them for induction into the Hall of Fame. This is the greatest proof that broadcasters habour no bad feeling towards any person in public office. They merely do their work without fear or favour”. He applauded the organisers for putting together the programme. However, the event was marked by low turnout of guests perhaps because of the Easter celebration. It is hoped that organisers would improve next time upon the lapses noticed in this first outing so as to deliver a great show to broadcasters, who are themselves great show-promoters!

ThE GUARDIAN, Monday, April 1, 2013

Jijiwa joins AIB exco hE Director General, Voice of Nigeria, Mallam T Abubakr Jijiwa has been elected into the sixmember executive committee of the

Senior Legal Officer, CPC, Mr. Emeka Odom, Scientific Officer, CPC, Mrs Adaora Omego and Chair, MAN Organizing Committee, Mrs Abimbola Ezeaku, at the maiden edition of Market Awards Nigeria Stakeholder Forum on Consumer Rights and Awards Dinner.

Rewards of consumer-friendly business operations Awards By Gbenga Salau

hAIRMAN of Neimeth C Nigeria Limited, Mazi Sam Ohuabunwa, has said that any organisation that hopes to compete globally must adequately cater for the interest and rights of consumers. he said this in Lagos at the maiden edition of Market Awards Nigeria (MAN) organized by how Much @ eMarket Limited to reward organisations providing better values for their clients. Ohuabunwa noted that Nigerian organisations were now consumer-conscious and it should continue as customers were beginning to demand for their rights and organisations know that the clients were critical partners for business to success. he also said that the era where Nigerian consumers were treated like beggars with no choice was fading away. At the ceremony, apart from the various awards presented in two categories; product/service awards and consumer-friendly awards, there was a special recognition award to the Executive Vice-Chairman of Nigerian

Communications Commission, Dr. Eugene Juwah for his remarkable consumer-friendly improvements in the telecoms sector. In the customer-friendly category, Automobile Dealership of the year 2012 went to Elizade/Toyota; Electronic/Appliance outfit of the year was carted home by LG Electronic; Pharmaceutical Outfit of the year was won by Emzor Limited; Chemical Paint company of the year went to Dulux; Children-friendly out of the year was won by MTN; Financial Institution (Bank) was got by GTB Bank, while AIICO won the insurance segment; Petroleum Product outlet of the year went to Oando. In the product/service category; Toyota went home as the Automobile of the year; Milo as the Beverage Drink of the year; CocaCola as the Soft Drink of the year; Shoprite as the retail outlet of the year; Peak Milk as the Most Appealing product packaging of the year. Also, the Restaurant/fast food of the year went to Mr. Biggs; Arik Air smiled home as the International Airline of the year; MTN went home as the telecom service

provider of the year; Indomie got consumer product of the year while the Financial institution of the year went to First Bank. Chairperson of the Market Awards Nigeria Organising Committee, Mrs. Patience Ezeaku, said that the forum, which was in two parts, a discussion forum was meant to draw attention and raise the consciousness about consumers’ rights and the award, to appreciate firms for being consumerfriendly. She congratulated each of the recipients of the awards as it represented their compelling commitments and drive towards better consumer care and concern. Ezeaku disclosed that to arrive at the winners, there was a poll conducted among consumers in the six geopolitical zones within the country. Communication Manager of Nigerian Bottling Company Limited (NBC) Mrs. Yomi Onakoya, commended the organisers and the customers who participated in the polls for finding them worthy. She promised that her organisation would not relent, as the award would be a motivation to provide better service.

‘Experiential marketing may hit advertising budget, reshape industry’ ITh the projected 35 per cent surge in W global experiential marketing budgets by 2015, the nation’s marketing communication industry may soon join the league of the nations in the quest to reach customers, cut operations costs and make significant profit. The spokesperson for Redbutton International, Funmilayo Elliott, said that the increase in the experiential marketing budget would signify a slight restructure of conventional advertising budgets, with the need to re-strategise and benefit fully from the new trend. She also said there is a rising hope, as growing convergent technologies will keep encouraging digital-experiential bodies to invest in real-time to ensure consumer connection points. Experiential marketing, alternatively called customer-experience marketing, is an attempt to connect consumers with brands through personal and memorable ways. It emphasises the idea of communicating the essence of a brand through a personalised experience. Experiential marketing gives customers an opportunity to engage and interact with brands, products, and services in sensory ways that provide the “icing on the cake”.

The system marks the departure from telling people about features of a product or service to letting them experience the benefits for themselves. To further strengthen the industry and position the players strategically, given the new trend, Redbutton International is organizing a two-day national conference in Lagos, with the theme: “The Experiential Marketing ParadigmWhat Today is saying about Tomorrow”. Elliott said the conference, which details are contained in www.xmc.com.ng, will discuss trends in the marketing communications industry and how experiential marketing is set to take center stage. “The link between conventional, digital and experiential marketing as exists in international communities will also be exposed and discussed. There will be exhibition points for brands to showcase their products and services. “Experiential Marketing is now one of the major marketing communication tools that have gained strong grounds globally, during the recession. Most brands are seeking ingenious means of saving operations and marketing costs, while making significant impact in the market,” she added.

Association for International Broadcasting (AIB) after a global online voting among broadcasting players and stakeholders. Others elected to the committee are Mark Bunting of BBC Global News; John Maguire of AEF/F24/RFI, Klaus Bergmann of DW; Margarita Simonyan of RT and Lindsey Oliver of Bloomberg. The notice of his election was contained in an email message from the CEO of AIB, Simon Spanswick, sent to all the newly elected members. It reads: “Dear Abubakar, We have just tallied up and checked the voting for the AIB Executive Committee and I am delighted to tell you that you have been elected. “Others elected to the Executive Committee are Mark Bunting of BBC Global News, John Maguire of AEF/F24/RFI, Klaus Bergmann of DW, Margarita Simonyan of RT, and Lindsey Oliver of Bloomberg. “We will be in touch after Easter to arrange the first meeting which is going to be a conference call, ideally before the end of April.” Jijiwa is also currently the chairman of the Broadcasting Organizations of Nigeria (BON). Between 2006 and 2010, he served a two-term as the President of the Commonwealth Broadcasting Association (CBA). Over the years, Jijiwa has distinguished himself as a strong advocate of responsible public service broadcasting, just as he places high premium on training and re-training of broadcasters to be able to meet the challenges of the of the rapidly evolving media environment driven by new information and communication technology and demand multi-platform delivery of media contents. his latest project in Nigeria is to ensure that

the Voice of Nigeria Training Centre becomes an international broadcast resource centre of excellence which would be unrivalled in Africa in broadcast production, technology and management training, tapping into local and international resources and networks, including the AIB where a number of VON producers have won awards for their outputs recently. The Association for International Broadcasting (AIB) is the industry association that represents and supports international television and radio broadcasters. Founded in 1993, the AIB has developed into a truly global organisation whose membership extends from New Zealand through to Canada and the USA. The AIB provides its members with market intelligence, lobbying, networking and marketing support. It publishes a quarterly print magazine, The Channel, that has a regular subscriber base of more than 5,600 senior executives in broadcasting and electronic media organisations in over 120 countries. The body also produces regular electronic news-letters that reach the desktops of more than 14,000 people worldwide. The AIB has an immense collection of data about broadcasting and electronic media covering territories throughout the world. As part of its role to support the broadcasting industry, the AIB publishes a yearly Directory of Global Broadcasting with extracts of its data concerning broadcasters, regulators and key personnel. The AIB is a not-for-profit organisation with its headquarters in the United Kingdom. It is governed by an Executive Council of six members elected from the AIB’s membership. The AIB’s permanent staff is led by Chief Executive, Simon Spanswick.

Hon. Abike Dabiri; Mallam Jijiwa and Chief Raymond Dokpesi at a forum on broadcasting

Naija Meal… brand extension from UAC Restaurant By Gbenga Salau N order to ensure that its brand keeps exciting its customers, UAC Restaurant, through its Mr. Bigg’s outlets, has unveiled Naija Meal. Naija Meal is the normal Mr. Biggs rice meal though with a sizeable chicken chunk and a slight price slash. Managing Director of UAC Restaurants, Mr. Derrick Van houten, said that Naija Meal is a value meal specially designed with the typical Nigerian man in mind, adding, “We understand that our customers need a wholesome meal that will take care of their needs at an affordable price.” According to houten, the meal is not a new formulation as the company was offering the same great tasting meal with the normal portion of rice with a smaller but sizeable chicken

piece. he said that the product would be available in all the 170 restaurants of the company across Nigeria. “Innovation remains our watchword as a business and we will continue to respond to the changing needs of our customers at all times. The meal does not replace our current quarter chicken rice meals so the fans of the quarter chicken meals can still enjoy them any time. “Like we always do at every given opportunity, we appreciate all our loyal consumers and pledge our commitment to continuously deliver only the best products.” Asked if the meal was targeted at getting new customers, the Marketing Manager, Mrs. Nnena AzukaOnwuka, said that the

organisation has noticed that as a result of dwindling disposable income, which is a global issue, some of its existing customers are finding it a little bit difficult to afford the regular meal. “So you find that rather than buy two packs of meal, they are buying a pack of meal and some other snacks and we do not want that to continue to happen. That is why we brought in this meal. And if they want our tasty snacks, they can also comfortably have that, but we do not want any impediment. “Thus you find that we are catering for our existing customers and those customers out there who feel that they cannot walk in and buy this meal because it is out of reach. So it is a twoway thing.”

THe GUARDIAN, Monday, April 1, 2013

How to rescue dwindling creativity in Nigeria’s ad scene Review By Gregory Austin Nwakunor

He third edition of BrandiQ, a new but fast T rising brand focused international magazine is currently circulating, drawing attention to several issues including the reason creativity is dwindling in Nigeria’s advertising industry. Speaking on the level of creativity in advertising in the magazine’s current edition, Sir Steve Bamidele Omojafor, Chairman of Zenith Bank Plc. and Group Chairman, STB McCann, seen by many creative persons as a living legend in the field of advertising, reveals that the level of creativity in europe is higher than what is found in Africa, and Nigeria in particular because of specific reasons. According to Sir Omojafor, “looking at creativity in Africa, europe, Australia, Asia, Canada we discovered that, the bulk of creative people in these places may not have gone beyond the equivalent of our secondary school certificate. But the environment in which they operate is so wonderful, the exposure to technology is high, the environment is clean, so this makes all the difference. The little kid in england is already being faced with how to understand symbols, colours, movement across the universe. “At that early age, their brain is challenged than what you have in Nigeria here. We may need to also admit that the intelligence quotient over there is arguably more than what we have here. The typical Briton or American doesn’t necessarily have to go to the university to excel. They leave secondary school and go straight into the creative world and by the time they have spent 5 to10years, they become genius. At that stage, they don’t have to be taught the difference between this

APCON Registrar, Alhaji Garba Bello Kankarofi (right); and Executive Secretary, Broadcasting Organisation of Nigeria (BON), Segun Olaleye at a forum on advertising

equipment and the other. Also, the clients they work with over there are very exposed. The people that they work for are not people that you must reduce everything to the barest little thing for them to understand. Here, in those days, if you advertise a bank without seeing the customer and a manager shaking hand, you have not advertised anything. If

Country Representative of The Banker, Financial Times Group U.K. London, Kunle Ogedengbe (left); Secretary General, Africa Public Relations Association (APRA), Yomi Badejo-Okusanya; and coordinator, APRA Summit, Kayode Yeku at the Lagos briefing on APRA’s First Africa Public Relations & Strategic Communication Summit holding in Addis Ababa, Ethiopia in May... last Tuesday PHOTO: FEMI ADEBESIN-KUTI

‘Why ad agencies should change business model’ He Chief executive Officer T of Verdant Zeal, a leading marketing communication agency, Mr. Tunji Olugbodi, has said to ensure that the future of advertising remains in advertising, admen needs to change their business model. Speaking at the first edition of The Sunday Brunch against the backdrop of various challenges plummeting the fortune of most ad agencies such as economic crunch, over-demanding clients, global affiliation rifts, Olugbodi tasked ad agencies especially the young practitioners to look inward and embrace a business model that will absorb challenges being faced. The Sunday Brunch brings industry leaders various sectors of the economy to dis-

cuss and address challenges facing young professionals from a chosen field of discourse. During the first edition tagged: The Future of Advertising is not in Advertising, Olugbodi tasked admen to get trained not only in creative but also on how to manage resources and business generally. “You need to be trained in the art of managing money and business. Buildigng a great ad agency goes beyond being creative. No matter how creative you are, you need to be able to manage your business, resources, personnel and so on,” he said. He also advised young admen aiming to start up to also diversify when they make money from jobs.

Citing the case of Verdant Zeal, Olugbodi who turned 50 last Monday, said further, “When you make money, invest in properties. When we started at Verdant Zeal, a lot of banks shot their doors. Now, they are begging us for account. When we made money from jobs, we bought properties. So, when you have got a great job that is worth it, you can use it as collateral.” He, however, challenged the industry with the growth in Nollywood and the Nigerian musical scene, which have received global rating and acceptance. Olugbodi said for advertising to reach this level, the industry creative eggheads should be original in their creatives rather than copying western style of speaking among others.

you advertise a detergent and you don’t show the foam covering virtually the entire screen, then you haven’t done it. But over there, they don’t need all that.” On the assumption that lack of exposure of Nigerian creative agencies to international awards can be one of the things affecting creativity in the advertising industry, Omojafor said, “It is a combination of many things. Nigerians don’t enter for some of those awards because we under estimate ourselves; also, the cost of entering for those awards don’t come cheap and a lot of agencies can’t afford it. even the LAIF award that we organise here in Nigeria, how many agencies are participating? They are not entering because they take a look at themselves, their material resources and decide against entering for the award. even if you have the materials, you are supposed to part with N250, 000 for an entry and if you want to enter for about four that is already a million. How many agencies have the heart to do this? They simply pull out. So, it is still our own local problem. So, even without going to Canes, Blue lions or any other international awards, we can recreate our self locally. I don’t even subscribe to jumping into the world arena when, internally we are still trying to find our feet. I think what you should do is that after our local LAIF Award, some of the award winning materials should be sent for Canes Award. You say an agency won 17 awards in LAIF competition, it shouldn’t stop there. The AAAN should work in conjunction with the agencies that won to pick the best three or four materials and present them in international creative award competitions. If the cost is too high, let the AAAN, in conjunction with the agency invest side by side to enter at least five creative materials in a year. I don’t think AAAN is showing enough interest in all these international awards. They just talk and stop at the LAIF award without doing anything extra. They should spearhead the participation of Nigerian agencies in international awards. ” Still analysing the issue of declining creativity in the media in this age dominated by digital technologies and intense competition, editor of The Guardian, Mr. Martins Oloja, identified the lapse in the country’s university system. In his words, “The university system is supposed to be the pathfinder that everybody in the society will use for creativity and research. The university system is for teaching, developing ideas and research. Look at the university in any country and you will see their level of development. For instance, the United States is the No. 1 economy in the world, and when you rate the 10 best universities in the world, eight are in the United States; two will usually be in the United Kingdom. “In Africa, look at the economic development, South Africa is No. 1 in Africa, and when you rate the 10 best universities in Africa, eight are in South Africa, two in egypt. The best university in Nigeria is like number 40 in Africa; it used to be 30 but now it is 40 despite all the noise that people are making. We have no sense of urgency, no sense of concern on the part of people that are in charge of policies and politics. That is why we are at this low level of development and creativity including the media.” Speaking further, he said, “you cannot divorce development of a country from the

development of the curricula of the university. It is the university that is called the pacesetter. It is the university professors that develop countries, philosopher kings, and they are the ones that are doing the research for people that are developing for Apple, Samsung, etc. These things are not miracles; they are from researchers in the universities. When you develop a concept, you take to the laboratory and it is from the university. And so as long as our university system in Nigeria is like this, we will continue to grope in the dark - we would continue to wait for miracles.” The current uneasy calm pervading the camp of local creative agencies in Nigeria came under the focus by the editor, Usukuma Ntia, in this edition of the magazine. The editor noted that Nigeria’s creative industry is on the verge of experiencing values implosion over the new advertising reforms that seek to control the involvement of foreigners in Nigeria’s Advertising industry. In the editor’s word, “A few years back foreign agency affiliation was generally regarded as a strong parameter of growth in the industry. The trend was that a local agency will approach international agency with congruent vision. The international agency, in turn, vets the local agency’s credentials to know what they have done in terms of creativity and business growth. In essence, where the two organizations are able to agree, they can begin to talk about the terms of the affiliations and what each party will bring to the table in other to make it a win-win situation. Now that these foreign affiliates seeing that local affiliates have been using these affiliations to get business and by extension make big money: that it is possible to take a quantum leap of 100 per cent growth in one year in the Nigerian economy, and with new investment laws consigning the indigenization decree of 1972 to the dustbin, they are emboldened and motivated to open shop directly in the country. Some of the foreign advertising agencies are known to have demanded massive controlling shares of their Nigerian affiliates”. This extensive X-ray of Nigeria’s creative industry is indeed the cover story of the current edition of the magazine. This cover takes a look at the new APCON reforms, the instrument created to checkmate these menacing foreign marauders. It is, indeed, a comprehensive and balanced presentation aimed at stimulating stability in Nigeria’s advertising industry. However, this edition of BrandiQ is not just about creativity and APCON reforms. There is a special focus on the brand of the moment in Nigeria’s energy sector, Network Oil & Gas. In its usual character, the magazine has also lined up quality interviews with outstanding players in marketing communications. excellent and incisive features and articles are also part of this bumper package. The special pull-out of the publication that has generated so much interest among students and young practitioners, Marcomm Tutorial is also served in this edition, as a special delight for young readers in the creative world.

THE GUARDIAN, Monday, April 1, 2013

Sports Nigeria Premier Football League

Ajagun makes best 11, as Egypt lifts AYC trophy

Pillars record another away win, 3SC, Heartland also win By Christian Okpara EFENDING champion, Kano Pillars, won its second away game of the fiveweek old 2012/2013 season, when it defeated ABS Football Club 3-2 at the Ilorin Township Stadium. The game started on a fast note with Nafiu Ibrahim scoring the qucikest goal of the season when he headed in a corner in the first minute to give Pillars the lead. ABS was still trying to come to grips with the fast paced attack of the Kano team when Gambo Mohammed made it 2-0 in the seventh minute. The Ilorin side had the opportunity to pull one back in the 21st minute, but Rahman could only direct his header straight to Pillars’ goalkeeper, Theophilus Afolokhai. The first half ended with Pillars holding on to its 2-0 lead. On resumption for the second half, a more purposeful ABS took the game to the visitors, but Pillars’ defence held tight until the 70th minute when a well-struck free kick by Ichul Lawson from 20 yards reduced the tally. The goal boosted the Saraki boys, who went all out in search of the equaliser, but they were undone by poor marksmanship and the res-

olute Pillars’ defence. Buhari Musa took the game beyond ABS in the 88th minute with a long-range effort. However, rather than extinguish the fire in the Ilorin boys, the goal added steam to their quest to get something out of the match. Their efforts were rewarded in the 92nd minute when the referee awarded a penalty against Pillars, and Lawson duly converted it to reduce the tally to 3-2. But try as they could, ABS could not muster another goal, leaving Pillars on top of the table with 12 points from five games. In Uyo, it was a goal feast for homers, Akwa United, which thrashed Bayelsa United 3-0, while Heartland went one better by beating Gombe United 4-0 in Owerri. 3SC defeated Wikki Tourists 3-2 in Ibadan, with Rangers running away with a 3-1 victory over Kwara United at the Nnamdi Azikiwe Stadium, E n u g u . The Port Harcourt local derby ended goalless between Sharks and Dolphins, but Nasarawa United was 3-1, better than Kaduna United at the Ahmadu Bello Stadium. Enyimba of Aba was held to a goalless draw by 10-man Warri Wolves, just as Nembe City defeated El-Kanemi Warriors 2-1.

Zenith Bank basketball: First Bank tops Group B • First Deepwater wins Group A By Adeyinka Adedipe IRST Bank Basketball Club of Lagos took charge of Group B after winning its seven game in the first phase of the Zenith Bank Basketball League, which ended yesterday in Abuja. Also, First Deepwater defeated Subshine Stars t56-44 t0 top Group B. The Elephants Girls, as First Bank is fondly called, defeated Plateau Rocks 74-42 to end up with a 100 per cent record and look forward to continue the winning streak in the second phase that starts in Asaba, Delta State on Tuesday. While appreciating the efforts of the players, Coach of the team, Adewunmi Aderemi said that he was still not satisfied with the performance of his players. He said his players have only displayed 30 per cent of their ability and was looking forward to them exploding in Asaba. “I will give them 30 per cent for their performance in the first phase. We defeated all the teams in the group but we are still not at our best. We cannot rest on oars now

IGERIA’S Flying Eagles N Captain, Abduljaleel Ajagun has been listed among the best

because there are still many games to play,” he added. Aderemi stated that preparation for the second phase would begin immediately while the league would also serve as preparation for the continental championship. He noted that the preparation for the first phase was top-notch but the players were yet to show what they have learnt on the court. To win the league, Aderemi said the team must improve in defence while the offensive players who are new in the team would have to play together to achieve better results. Aderemi is aware of the threat posed by his team’s biggest rival, First Deepwater but stated that playing them in the final eight play off could be an advantage. “I think it an advantage for both teams as we leave our best for last. “What both teams are doing now is watching each other’s game and planning for the what might be the title decider. I am, however, sure that tactics will change when we both meet. What my team has to do is play harder and take the chances that comes their way.”

Ecstatic 110m hurdles boys’ gold medalist, Atunma Ifeanyichukwu Andrew, jubilates after winning the race at the just concluded Warri 2013 African Youth Athletics Championship.

11, as Egypt defeated Ghana to become the new champion of the African Youth Championship (AYC) held in Algeria. Ajagun, who dazzled at the championship, joined others from Egypt, Mali, Algeria and Ghana to complete the best 11 at the tournament. However, Flying Eagles’ defender, Goy Aliyu was also listed in the eight-man substitute for the best players of the competition. Meanwhile, Egypt won their fourth CAF U-20 Championship title at the weekend after a 5-4 penalty shoot-out victory over Ghana in the final played at Ahmed Zabana stadium in Oran. The two sides had played a 1-1 draw in regulation time. Also, Nigeria retaliated their 10 group loss to Mali as the Ajagun-inspired team beat the Malians 2-1 at the third place match. Speaking after the match, Flying Eagles Coach, John Obuh said, “I did my best to win the 3rd place. We are pleased with this third place finish even though we wanted to defend our title. We started slowly unlike Mali who came out of the blocks flying in this tournament. But tonight we improved and we will keep trying to improve and make more effort. My team played well tonight and we showed our true abilities.” “I believe this tournament was played at a good standard which is higher than the last edition. I can tell you for sure that the Mali we met two years ago was not as strong as this one. I think African coaches have been doing a commendable job with these teams and in any case l regard them as talented and are better placed and knowledgeable about the environment of the teams better than expatriates coaches,” he added.

Team Nigeria wins maiden African Youths Athletics Championship From Gowon Akpodonor, Warri EAM Nigeria fulfilled its promise by topping the medals table at the maiden Africa Youth Athletics Championship, which ended yesterday in Warri, Delta State. Team Nigeria hauled a total of 13 gold, 10 silver and 12 bronze medals, with Egypt taking the second spot with eight gold, six silver and two bronze medals, while Ethiopia finished third with six gold, 13 silver and six bronze medals.

Kenya was fourth with five gold, four silver and two bronze medals, just as The Gambia got two gold to occupy the fifth position ahead of Eritrea (one gold, one silver and one bronze) and Morocco (one gold and two bronze medal). On Friday, Egypt shot into the lead on the medals’ table with seven gold medals ahead of Team Nigeria’s five. But the situation changed yesterday when Nigerian athletes began to haul medals in their areas of specialisation.

It all began with the 400m hurdles for girls, where Onome Nathaniel picked the gold ahead of her compatriot, Kadiri Serah Aderonke, who got the silver for Nigeria. Team Nigeria also got the gold in the girls’ javelin event, just as the country won in both the male and female 200m race. Africa’s fastest young athlete, Divine Oduduru won the gold in the male 200m race at a time of 21.06 seconds, just as Team Nigeria also won gold in the girls’ triple jump event, 110m boys hurdles and

the medley relay for girls. Kenya won gold in the 800m boys race, just as Ethiopia held sway in both the five-kilometer walk race for girls, 10km walk race for boys, 1500m race for girls and 3000m race for boys. Yesterday’s closing ceremony attracted top officials of the Confederation of African Athletics, including the President, Hamad Kalkaba Malboum, President of Nigeria Olympic Committee (NOC), Sani Ndanusa, among others.

Akanni wants Flying Eagles overhauled By Adeyinka Adedipe HE Flying Eagles’ Coach, John Obuh has been advised to beef up his team if he hopes to do well at the World Youth Championship (WYC) as the team confronts Korea Republic, Portugal and Cuba in Turkey. Former international, Waidi Akanni, who gave this advice, said that Nigeria’s inability to defend its title at the just concluded African Youth Championship in Algeria was a big setback.

He said that the group doesn’t look too tough save for the presence of the Portuguese team. He, however, stated that the Flying Eagles must be in top form to make an appreciable impact in the competition. “We saw what happened in Algeria where the Flying Eagles failed to defend their title and could only finish third behind Egypt and Ghana. So, what this means is that the team is not yet a finished product. The coach can

bring in new players to see how they can improve his team.’ Akanni stated that players, who could fit into the team abound in the country and called on Obuh to take his search to the nook and crannies of the country. He also noted that the team lacked good strikers but said the strikers could only excel if they had good supplies from the midfielder. “I believe the inability of the strikers to score may be

attributed to the way they link up with the midfielders. But those, who do not give enough to the team should be replaced.” He expressed optimism over Nigeria chances of progressing to the knock out stages but warned that the team must approach all the games with the seriousness they deserve. He also commended Jeleel Ajagun for making the AYC’s first 11 noting that he must improve his game to take the team to the top at the WYC.

SPORTS 57

THE GUARDIAN, Monday, April 1, 2013

HFN officials’ upbeat despite late preparation for World Challenge Trophy • Camping begins today By Adeyinka Adedipe IGERIAN teams resumed camping yesterday at Mayon Barracks, Yaba, in preparation for the World Challenge Trophy qualifiers, which begins in Djibouti on April 8. The camping was supposed to have commenced about a month ago, but paucity of funds truncated the idea. But now the Handball Federation of Nigeria (HFN) has received the National Sports Commission’s (NSC) pledge to support the team, hence the players were called to camp. With the latest development, Coach Adebayo Stephens, who will handle the female team, is optimistic that the teams would do well at the championship. “We would have loved a month in camp with the players but it wasn’t possible. “What we have to do now is to dwell more on technical and tactical aspects of the game so that the players can be aware of what to expect during matches. We will definitely do our best when we get to the competition venue,” he assured.

Stephen revealed that the players were advised to keep themselves in shape and avoid getting heavy because they would have to be agile to play at the top level, adding that the camping was similar to what happens with the Super Eagles team that sometimes have few days to prepare for crunch games. In the female team are Judith Ahmedu, Ada Okey, Rachael Ovetue, Ruth Jonah, Janet Hassan, Patience Okpe, Blessing Patrick, Bely Godwin, Jennifer Edeh, Blessing John, Olubunmi Bosa, Faith Inegbudum, Taiwo Raji and Mercy Samuel. The coaches are Adebayo Stephen (head coach) and Uzoh John (coach). The male team comprises Mudashiru Abdulmajjed, Jamilu Adamu, Aminu Chris Adamu, Bashir Mohammed, Hosea Titus, Emeka Obiano, Ali Ahmed, Abubakar Atabo, Bello Mubarak Salau, Obinna Ani, Musa Salihu, Nasiru Mohammed, Yahaya Owolabi and Andrew Ojo. The Head Coach for the team is Fidelis Obi, while Solomon Yola would assist

him. The teams’ Head of Delegation is Vice President, Hamza Musa and the federation’s Secretary General, Olusola Luke. Luke told The Guardian yesterday that the team would depart for Djibouti on Saturday and expressed optimism on the teams’ chances at the competition. President of the Federation, Yusuf Dauda, who expressed happiness over the support the teams got from the NSC, noted that Nigeria’s participation at the World Challenge Trophy qualifiers would aid the game’s growth in the country. He said, “attending this competition will further expose these teams that we are grooming for the future. The game is on the path of revival and we can only get to that destination if we develop the youth. “Without incorporating the youths in our plan, we will only be paying lip service to developing the game and I am sure that once these players get to compete at the international level, the experience they bring back would come in handy during the National Open championship that would come up later this year.”

Nigeria’s Oribamise, Babafemi shine at ITTF Junior, Cadet Open in Tunisia • Onaolapo leads Team Nigeria to AJC By Olalekan Okusan IGERIA yesterday showed that it still had the resources to compete effectively at the continental level at the International Table Tennis Federation (ITTF)sanctioned Junior and Cadet Open Championships holding in Tunisia, with the duo of Esther Tosin Oribamise and Babatunde Babafemi berthed in the last eight and four of the cadet singles event. The competition, which is a prelude to the ITTF African Junior Championship (AJC), has 116 players made up of 60 boys and 50 girls from 11 countries participating in the

four-day tournament. Although four players represented Nigeria at the competition, only Oribamise and Babafemi made significant impacts with their excellent performance in the cadet singles. The pair of Ahmed Osibanjo and Onyinyechi Mbah both failed to shine. In the cadet boys’ singles, Osibanjo lost all his matches to come last in Group Six, while Mbah, who finished second in Group Three of the girls’ cadet singles, was shown the exit in the round of 16 by Algeria’s Sannah Lagsir (11-13, 9-11, 11-8, 9-11). Unlike their counterparts, who could not excel in the championship, southpaw

Ibadan private schools get notice of NAPPS fiesta PPARENTLY bothered by A the dearth of competition among private schools, the National Association of Proprietors of Private Schools (NAPPS), Ibadan North chapter, has concluded plans to organise a sports event, tagged: ‘NAPPS 2013 Sports Fiesta,’ for their schools. The event has been tentatively fixed to hold from May 20 to 24. The Chairman of the Planning Committee, Isaac Friday, said the event was borne out of their desire to give their wards the platform to display their sporting talent in a competitive atmosphere, where outstanding ones would be discovered and nurtured to stardom. He said the event would feature athletics, where pupils would compete in 75 meters, 100m, 200m, 800m, 1500m

and 4x100m relay, adding that other track and field events including javelin, short-put, discus, high-jump, tug of war, pick the ball and football would also feature in the competition. According to Friday, participants have been classified into three categories, including junior, which comprises primary schools’ pupils from ages six to 10 years, intermediate which is for junior secondary school students from ages 11 to 13 years, while the senior category is basically for senior secondary schools students from ages of 14 to 16 and above. Schools from outside Ibadan North Council, according to the organisers, would also be invited for invitational relay race of the event where mouth-watering prizes would be won by outstanding performers.

Oribamise was superb in Group Six as she maintained a 100 per cent record to top the group ahead of others, while Babafemi emulated Oribamise by topping Group Four in the boys’ event. In the round of 16 matches played early yesterday, Oribamise continued her excellent display by whitewashing home girl, Ons Oueslati (11-9, 11-9, 11-9) to qualify for the quarterfinal stage. In the cadet boys’ singles, Babafemi dazzled table tennis buffs with his superb skills, which thrilled the Tunisian fans at the venue of the competition. Emerging as the best player in his group, Babafemi was pitched against Egypt’s Ahmed Elborhamy and he did not disappoint as he took the Egyptian to the cleaners with a 3-0 bashing (12-10, 11-7, 11-6).

Delta State Governor, Emmanuel Uduaghan (right); with the winners after presenting their medals in the boys’ 100 metres event at the just concluded Warri 2013 African Youth Athletics Championship.

Jossy Lad’s family commends UCH for reviving former Falcons’ coach HE family of the ailing forT mer Super Falcons Coach, Jossy Lad, has commended the management of University College Hospital (UCH) for reviving their bread winner, who had been receiving treatment at the hospital after he was diagnosed with a heart related ailment. Speaking with newsmen at the Southwest ward 3 of UCH where the 72-year-old sweat merchant was admitted, his first son, Wale Ladipo, thanked the Chief Medical Director of the hospital, Prof. Temitope Alonge, who he said, has shown great concern since his father arrived the hospital. “The CMD has shown great concern towards the health of my dad here, he has made it his daily routine to visit and examine him to know his state and he even pays for his medical tests from his personal pocket,” Wale noted. Meanwhile, following the recent visit of the Minister/Chairman of the National Sports Commission (NSC), Mallam Bolaji Abdullahi, to University College Hospital (UCH) where he donated cash for

the upkeep of the critically ill ex-international, the National Sport Commission has collaborated with an Ibadan based radio, Splash FM 105.5 to appeal to spirited sport loving Nigerians to raise funds for the treatment of the coach. This development has been commended by the Director General, National Sport Commission, Patrick Ekeji,

who described the gesture by the radio station, as a good omen, which is in line with the Federal Government’s Public Private Partnership (PPP) policy. He, therefore, appealed to other Nigerians to come to the aid of the first captain of the club (IICC) that won the first continental trophy for Nigeria in 1976.

UNILAG braces for NUGA Zone F preliminaries By Olalekan Okusan OST school, the University of Lagos (UNILAG), is at present shaping up for the preliminaries of the 2013 Nigeria University Games Association (NUGA) Zone F, which kicks off this month at the school’s Sports Complex. According to NUGA Zone F Co-ordinator, Cecilia Arinye, the institution is ready to host and top in all the events of the competition. There are 13 events to be competed for at the competition, and UNILAG will jostle for honours in 12 of the events, excluding handball. According to Arinye, the four-day preliminaries would serve as qualifiers for teams and individuals that would

Nigeria’s Junaid Abimbola, who won the silver medal, congratulates gold medalist, Odiong Edidiong Ofonime, after the 400 metres girls final at the Warri 2013 African Youth Athletics Championship, which ended yesterday.

represent the zone at the games. With the main event scheduled to hold at the Obafemi Awolowo University (OAU) Ile Ife, Osun, between June 3 and June 17, Arinye says the hosts would present the best athletes and teams at the competition. To James Aina, who is the school’s volleyball coach, UNILAG has the facilities to stage the qualifying series, which are key to selecting the most talented athletes for the zone in the 13 events. Revealing that cricket and hockey would be directly competed for by participating schools, Aina said two universities would qualify for each of the 13 events at the preliminaries to represent the zone at the games. “The last preliminaries was hosted by the University of Agriculture, Abeokuta (UNAAB) and UNILAG presented the largest contingent to the last NUGA Games held at UNIBEN. We are hopeful again that we will surely repeat same feat at home. We are fully prepared in the 12 events we will be competing in because the zone will want to present its best athletes for the main NUGA in June,” Aina said. Also speaking on the qualifiers, the Badminton Coach of Lagos State University (LASU), Owoyemi Idowu said the increase in the number of universities in the country and the need to get the best teams from the various zones for the games proper necessitated the preliminaries.

58 SPORTS

THE GUARDIAN, Monday, April 1, 2013

Again, Tiger claws his way I thought I could get away with whatever I wanted to… “I felt that I had worked hard my entire life and deserved to enjoy all the temptations around me. I felt I was entitled. Thanks to money and fame, I didn’t have to go far to find them. I was wrong. I was foolish

Woods

For the 11th time in his 17-year-old professional career and for the first time since October 30, 2010, Eldrick Tont “Tiger” Woods became first in the Official World Golf Ranking. Nicknamed, Tiger in honour of his father’s friend, Col. Vuong Dang Phong, who also bore the nickname Tiger, the golf superstar has displayed immense attributes of a real-life Tiger clawing his way back to reckoning after a storm. His historic return to grace after falling from it was completed by successfully defending his title and winning the 2013 Arnold Palmer Invitational at Bay Hill Club & Lodge last week. ENO-ABASI SUNDAY, takes a look at the golf legend’s dance with the stars, his dramatic fall to the earth and his eventual return to the zenith of his sport.

ARELY three years ago, Eldrick Tont “Tiger” Woods was havB ing the time of his life. Wherever he played on the surface of the earth, the world media would deploy their best men and equipment for coverage while co-competitors strategised and angled for other positions except the first, which was usually informally reserved for him. By dint of hard work occasioned by impeccable work ethic, Woods rose to become sport’s first billionaire and has been named by Forbes magazine as one of the highest-paid athletes in the world for several years. With success oozing from his endeavour as nectar from a sweet-smelling plant, some of the world’s greatest companies jostled for his attention and every tournament organiser wanted him to feature in his/ her event, even if it meant just walking across the golf course. On such occasion, lovers of the sport were never in short supply. And the legend, time and again would produce to the connoisseurs’ delight, moments of sheer genius. To date his achievements on the golf course, ranks him among the most successful golfers of all time. Woods turned professional in 1996, and by April the following year, he had already won his first major, the 1997 Masters, in a performance still described as record-breaking. By June of same year, he first berthed at the number one position in the world rankings. By the turn of the new millennium, Woods had become the

dominant force in the sport spending 264 weeks, (from August 1999 to September 2004) and 281 weeks from June 2005 to October 2010 as world number one. He only regained that position on Monday, March 25th replacing Rory McIlroy of Northern Ireland after he emerged victorious at the 2013 Arnold Palmer Invitational. Since he first earned the top spot in June 1997 and began dominating the sport in the 2000s, Woods has shattered numerous golf records. For instance, he has remained the world number one golfer for the most consecutive weeks and for the greatest total number of weeks of any golfer dead or alive. Over this period, he has been awarded Professional Golfers’ Association (PGA) Player of the Year a record 10 times and has won the Byron Nelson Award for lowest adjusted scoring average a record eight times. Apart from having under his belt, the record of leading the money list in nine different seasons, the American has won 14 professional major golf championships, since winning the first a few months after turning professional. Jack Nicklaus holds the record of the highest number of professional major golf wins and this stands at 18. Woods victory at the Arnold Palmer Invitational at Bay Hill, was the 77 PGA Tour events he was winning and this is second only to Sam Snead on the all-time list. This record effectively makes him to posses more career major wins and career PGA Tour wins than any other active golfer. Apart from being the youngest player to achieve the career Grand Slam, and the youngest and fastest to win 50 tournaments on tour, his long list of career records, also indicates that he is only the second golfer, after Nicklaus, to have achieved a career Grand Slam three times. Added to this, he has won 17 World Golf Championships, and won at least one of those events in each of the first 11 years after they began in 1999. What dovetailed to his fall from grace to grass began on November 25, 2009, when a tabloid, The National Enquirer, went to town with a story claiming that the golf superstar had an extramarital affair with Rachel Uchitel, a New York City nightclub manager. On November 27, only two days later, Woods was leaving home at about 2:30am in his Cadillac Escalade, a Sprots Utility Vehicle (SUV) when he collided with a fire hydrant, a tree, and several hedges on his street. After the incident for, which he received a ticket for careless driving, he was treated for minor facial lacerations. And after a groundswell of media speculation about the accident, he issued a statement on his website, where he took sole responsibility for the accident, which he also called a “private matter” and crediting his wife, Elin Nordegren for helping him from the car. Signs that there was more to come appeared on November 30, when the golfer announced that he would not be appearing at the Chevron World Challenge, his own charity golf tournament, nor any other tournaments in 2009, due to his injuries. That indeed marked the start of a five-month lay-off in late 2009. Things went down the hill swiftly for Woods. Following the release on December 2, 2010 of a voicemail message allegedly left by him for a mistress, by US Weekly, he released another statement in, which he admitted “transgressions” and apologised to “all of those who have supported (him) over the years”, while reiterating his and his family’s right to privacy. In the days that followed, over a dozen women surfaced and claimed in diverse media outlets to have slept with Woods. This forced him to, on December 11, 2010, release a third statement admitting to infidelity and apologising again. On that occasion, he also announced that he would be taking “an indefinite break from professional golf. Upon admitting infidelity, several companies, in the days and months that followed, re-evaluated their relationships with Woods with Accenture, AT&T, Gatorade and General Motors severing their sponsorship deals outright, while Gillette suspended advertising featuring the golf legend. Watchmaker, TAG Heuer dropped him from advertising in December 2009 and officially ended their deal when his contract expired in August 2011. Before this, Golf Digest magazine had suspended Woods’ monthly column starting with the February 2010 issue. But despite all he went through, sports equipment manufacturing firm, Nike stayed on to support him. Same applied to Electronic Arts, an outfit that was working with Woods on the game Tiger Woods PGA Tour Online, despite a December 2009 study showing estimated shareholder loss caused by the golfer’s sex scandal to be between $5b and $12b. As things continued to go awry for him, on February 19, 2010, Woods gave a tearful apology, where he informed the world he had commenced a 45-day sex therapy programme in December. At the media event, which took place at the PGA Tour headquarters at the TPC Sawgrass clubhouse in Florida, he admitted, “I knew my actions were wrong but I convinced myself that normal rules didn’t apply. I never thought about who I was hurting, instead I thought only about myself. I ran

THE GUARDIAN, Monday, April 1, 2013

SPORTS 59

out of the woods straight through the boundaries a married couple should live by. “I was unfaithful, I had affairs and I cheated. What I did was unacceptable, I hurt my wife, my kids, my mother, my wife’s family, my friends, my foundation and kids all around the world who admired me,” said the 14-time major winner. “I thought I could get away with whatever I wanted to. “I felt that I had worked hard my entire life and deserved to enjoy all the temptations around me. I felt I was entitled. Thanks to money and fame, I didn’t have to go far to find them. I was wrong. I was foolish,” he added at the briefing, which had about 40 people present including his mother, friends, colleagues and close associates excluding his estranged wife, Nordegren. Few weeks after the public apology, Woods who had been training in private, on March 16 announced that he would return to professional golf at the 2010 Masters Tournament on April 8, 2010. Barely five months after he announced he was returning to golf, his marriage to Miss Nordegren, which had guests like Oprah Winfrey and Bill Gates in attendance, was pronounced over as they divorced on August 23, 2010. With immense scandal in his private life, a litany of injuries, including four knee operations, an Achilles problem, as well as problems involving mastering a new swing, the former number one suffered a free fall starting with his descent to second place behind Lee Westwood in October 2010, after a combined 623 weeks at the top. About a year later, in November 2011, the billionaire golfer fell to a career-low of 58th in rankings. Whilst all these happened, his reputation suffered, his friends and sponsors deserted him in droves and the Tiger Woods Foundation, which handles his educational and charity engagements rocked. In the face of all these, he persevered. His journey back to the top effectively began at the tail end of 2011, when he managed to snap a career-long winless streak of 107 weeks, winning the Chevron World Challenge in December 2011. His victory at Bay Hill in March 2012, catapulted him to top 10, while his June 2012 victory at the Memorial Tournament put him back in top five. The year 2013 appeared to have fast-forwarded the return to glory of the golfer, who spoke at the first inauguration of American President, Barack Obama. Having opened the year with victory in the Farmers Insurance Open in La Jolla, California, he added another in the WGC-Cadillac Championship in Miami before the Arnold Palmer event at Bay Hill. “It was just a byproduct of hard work, patience and getting back to winning golf tournaments…I always play well here,” said Woods, who closed with a 2-under-par 70, when asked

Woods plays his second shot at the par 3, 17th hole during the first round of the 2013 Arnold Palmer Invitational at Bay Hill Golf and Country Club last month in Orlando, Florida. PHOTO: DAVID CANNON/AFP

Woods reacts after holing a putt for eagle at the par 5, 16th hole during the third round of the 2013 Arnold Palmer Invitational at Bay Hill Golf and Country Club PHOTO: DAVID CANNON/AFP how satisfying it was regaining the number one spot. has to win by 10 shots or whatever. ’’ Before Woods victory at Bay Hill, he had gone public with his Former PGA tour player and Consultant to the International relationship with Olympic ski champion, Lindsey Vonn rather Management Group, (IMG), Sam Logan, is another, who had than allowing paparazzi to make money off them by being the abiding faith in Woods ability to stage a comeback after the first to come up with the pictures. The athletes simultaneous- near collapse of his career. ly posted messages on their Facebook pages confirming they Logan, who is the consultant general manager at Le Meridien were in a relationship. Ibom Hotel and Golf Resort, Akwa Ibom State, in an earlier In explaining his decision to break with his traditional interview told The Guardian that “Woods still has the drive and approach at the Arnold Palmer Invitational event, he said, dedication, which are the key factors needed to excel in the “We’re very happy where we’re at, but also we wanted to limit game, so I am confident that he will return to the top in no the ‘stalkarazzi’ and all those sleazy websites that are out there time.” Indeed he has returned. following us. I’ve had situations where it’s been very dangerHowever, one thing that has proved to be counterproductive ous for my kids and the extent they’ll go to. We basically deval- in efforts celebrating Woods return to the zenith is the Nike ued the first photos. Unfortunately, that’s just the way it is in advertisement, which is causing a storm with its message our society right now, and we felt like it was the best thing to “winning takes care of everything.” do. I’m very happy about it.” Nike, one of the few sponsors that stood by Woods during and Fittingly, Vonn was among the first to congratulate Woods after the scandal that led to the collapse of his five-year-old after his latest victory when she tweeted “Number 1 !!!!!!!!!!!!” marriage did not waste any time in felicitating with Woods on after the two-stroke victory over Justin Rose. his coming out of the woods. Winner of two World Golf Championship events, the 2010 The father of two had long used the “winning takes care of WGC-Bridgestone Invitational and the 2012 WGC-Accenture everything” phrase in response to questions over his ranking, Match Play Championship, Hunter Myles Mahan, is of the but Nike’s use of the throw-away comment failed to strike the opinion that Woods dominance is returning, adding that the right cord in the minds of many of his followers and critics as 37-year-old has to win a major to validate his return to number reflected by comments on the social media, where many claim one in the world. the use of “everything” has erased his past infidelity. ‘’I think he’s the man once again, and he proved that last The advertisement, which has more than 8,000 likes, has week,’’ Mahan said Wednesday at the Houston Open. been shared by 2,000 people on Facebook even as many com‘’Everyone is waiting for the first major. I don’t know why ments have highlighted the poor phrasing given his marital they’re waiting for that. I think he’s done enough this year to transgressions. realise that he’s still really good, and he’s better than everyAs Mahan stated, “everyone is waiting for the first major to body else. He set the bar so high. I don’t know what is going to prove if Woods is really back to his invincible best. Only then make everyone go, ‘He’s back to that time.’ I don’t know if he will everyone conclude that Woods is the man to beat.”

Woods still has the drive and dedication, which are the key factors needed to excel in the game, so I am confident that he will return to the top in no time With his new love, Vonn Lindsey

THE GUARDIAN, Monday, April 1, 2013

English Premiership

Wenger sure of top-four spot for Arsenal RSENAL Manager, Arsene A Wenger has challenged his side to hold their nerve as they look to chase down Chelsea and Tottenham in the race for Champions League qualification. The Gunners chalked up a sixth win in the last eight Barclays Premier League games when they saw off relegation battlers Reading 4-1 at the Emirates Stadium in

what was Nigel Adkins’ first match in charge of the visitors. With Chelsea losing at Southampton, the Gunners are now just two points behind the Blues, and four off third-placed Tottenham on whom they hold a game in hand. There are bound to be plenty more twists and turns over the run-in, and Wenger

wants his side to focus on delivering their own top performances to secure the necessary final outcome at full time on May 19. “We have the experience, we have done it before and is what we want to do again,” said Wenger, whose side managed to overhaul Spurs last season and secure automatic qualification for the Champions League group

stages. “I am sure we will, but it demands a lot of dedication and nerves until the end.” Chelsea tackle Premier League leader, Manchester United in their FA Cup quarter-final replay tomorrow as part of a hectic fixture schedule in which they also will hope to progress in the Europa League. Wenger feels having so many key games in quick succession could work either way - but will not get overly concerned with how anyone else is set to perform. “It can be very positive if you

are on a good run and very negative if you are in bad form,” he said. “But let’s just take care of the way we play, take care of our spirit and give it our all.” Ivory Coast forward, Gervinho certainly did that against the Royals, firing the home side into an early lead in what was one of his best recent displays. The 25-year-old has polarised opinion among Gunners fans since his £11million move from Lille in July 2011, with a string of inconsistent displays. Wenger feels all of his cur-

rent squad have what it takes to help the club move forwards, although he will look to strengthen the group in the summer. “Gervinho did not play for his future [against Reading], he was just playing for his club, that is what every player does,” said Wenger. “We are a group of players, who want to go for it, and to go for it together. “Sometimes Gervinho plays, sometimes (Theo) Walcott, sometimes (Lukas) Podolski, but we can only do it if we all have the same target and do it together.”

Benitez stands by team selection HELSEA interim Manager, C Rafael Benitez has stood by his team selection for the

Arsenal’s Spanish midfielder, Mikel Arteta (left); vies with Reading’s Russian striker Pavel Pogrebnyak during the English Premier League match at the Emirates Stadium in north London, England, at the weekend. Arsenal won the game 4-1.

2-1 defeat at Southampton on Saturday as he prepares for Monday’s clash with Manchester United. The FA Cup quarter-final replay against United comes less than 48 hours after the Barclays Premier League loss against the Saints. Benitez made seven changes for the trip to St Mary’s, no doubt with an eye on Monday’s clash with Sir Alex Ferguson’s side in mind. The gamble backfired as goals from Jay Rodriguez and Rickie Lambert earned Southampton the victory, with returning skipper John Terry briefly levelling the scoreline in the first half. But Benitez reckons the

longevity of a Premier League season compared to the cut-and-thrust nature of knockout football means he had to shuffle his pack. “You have to make decisions and use the squad,” he said. “Southampton is a good team on one level and Manchester United is another team on another level. In the league, you have more games to play and will be going to the end. In the FA Cup you have one game and you will be out. “You have to find the balance for players who are playing more games or less games.” The defeat means Chelsea dropped below London rivals Tottenham into fourth place in the table but with five games in a two-

week period - including both legs of a Europa League quarter-final with Rubin Kazan - Benitez feels his side are still in the hunt for both a top-four finish and silverware. “I have confidence that we will finish in the top four and maybe we can win one or two trophies,” he added. “I have the belief and the confidence in these players because they have the quality and if they realise that we have to start games with the same intensity as the second half (against Southampton), we can beat anyone.” Chelsea have already played 54 games this season and the Blues’ players are no strangers to the rigours of playing midweek games off the back of league fixtures.

Mancini will keep Manchester City job, Ferguson reveals We must keep focus, Pardew charges Newcastle ALK of Roberto Mancini with a summer move to big “I don’t see any reason why LAN Pardew insists zone, close enough to bring is clear for all to see, with T leaving Manchester City spenders Monaco, but Mancini won’t be there again A Newcastle’s Europa owner Mike Ashley into a Cheick Tiote and Davide this summer is just specula- Ferguson remains confident next year.” sweat. League exploits cannot be nervous tion, according to Manchester United boss Sir Alex Ferguson. Mancini has presided over a hugely disappointing campaign, with City finishing bottom of its Champions League group and currently trailing United by 15 points in the Premier League. These setbacks have sparked reports linking the Italian

his old opponent will still be in the City dugout next season. “If a manager doesn’t win for a few games then he will hear all kinds of stuff,” Ferguson told reporters. “It goes with the territory, and Mancini will know that. I don’t think he’ll be worried about that. He knows what he’s capable of.

English Premiership Table Team P Man Utd 30 Man City 30 Tottenham 31 Chelsea 30 Arsenal 30 Everton 30 Liverpool 31 West Brom 31 Swansea 31 Fulham 29 West Ham 30 Southampton 31 Stoke 31 Norwich 31 Newcastle 31 Sunderland 31 Wigan 30 Aston Villa 31 QPR 30 Reading 31

GD 39 29 15 27 26 12 19 0 1 -4 -9 -9 -9 -19 -15 -10 -20 -26 -22 -25

Pts 77 62 57 55 53 51 48 44 40 36 36 34 34 34 33 31 30 30 23 23

City has been accused in some quarters of lacking the hunger to defend their Premier League title, and Ferguson admits the pain of last season’s failure is driving his team on to new heights. “It’s hard to retain the title,” he added. “We were disappointed last year because of the way we lost it. So we’ve had that focus. “The concentration, the team spirit, has been brilliant. So these are all advantages. We had the advantage of trying to recover from the disappointment of last season. “We have 26 players and you can only manage them if the players themselves buy into it. They have to understand changes have to be made. That is why we’ve been suc-

allowed to threaten their Premier League future. Although the Magpies were unable to repeat the consistency of last term’s outstanding top-flight form, their European adventure has brought a positive glow to their campaign. Thursday brings another eagerly anticipated trip to Portugal, for a meeting with two-time European Cup winners Benfica. Yet the glamour has been tarnished either side of the international break. A controversial defeat at Wigan has been followed by a four-goal hammering at Manchester City that leaves Pardew and his players just four points above the drop

So, while Pardew is looking forward to an outing in the Stadium of Light, concerns on the home front are pressing. “We have done well in the Europa League, but it can’t detract from the Premier League,” he said. “We have to make sure we are safe. We need two victories at least, and maybe a third or a fourth to get ourselves into a strong position.” Yet the drain on his players

Santon amongst the players to miss out through injury yesterday. “The Europa League is going to put us under pressure, because we are missing some big players at the moment,” said Pardew. “But we didn’t do ourselves any favours against City because we were not aggressive enough.” Apart from a brief flurry at the start of the second-half, Newcastle were outplayed throughout.

Benteke happy at Aston Villa, agent insists HRISTIAN Benteke has no C intention of leaving Aston Villa in the near future, according to his agent. Benteke has been a revelation since arriving from Genk for 8.3 million euros in the summer, scoring 22 goals for club and country over the course of the campaign. The 22-year-old’s displays have led to talk of a move to Serie A in the summer, with Inter believed to be keen on his signature, but agent Eric Kismet insists his client is more than happy to remain at Villa

Park. “I keep hearing that Christian dreams of playing for different clubs,” Kismet told the Sunday Mirror. “But why dream when he is living a fantastic reality at Aston Villa? He is certainly not thinking about leaving. “It is always impossible to predict the future, but at the moment I am 99 percent certain Christian will start next season with Aston Villa in the Premier League. “Paul Lambert, the club and the fans have all been very good to Christian and that means a lot to him.”

Aston Villa’s Scottish Manager, Paul Lambert reacts during the English Premier League match against Liverpool at Villa Park in Birmingham, West Midlands, England… yesterday. PHOTOS: AFP

SPORTS 61

THE GUARDIAN, Monday, April 1, 2013

Heineken begins UEFA Champions League trophy tour

Panathinaikos coach, Fabri, on borrowed time, say reports ANATHINAIKOS Coach, P Fabriciano Gonzalez Penelas future is under a cloud after the Spaniard’s stinging verbal attack on his players following a 1-0 home defeat to top-flight newcomers Platanias, according to local media reports yesterday. Saturday’s loss left The Greens in sixth place, three points behind PAS Giannina, who occupy the final place for the playoffs, which decide the European places at the end of the regular sea-

son. The 57-year-old Spaniard, well known for his animated touchline antics and sharp comments, heavily criticised the players in his post-match press conference, saying some of them did not deserve the shirt. “In this Panathinaikos squad there are players who do not have the blood or the balls to wear the shirt. We need to see who can keep wearing it ... some players went out on the pitch without understanding what exactly the team is playing

I’m back in top form, Robben claims RJEN Robben says he is “in we exploited them,” Robben A top form” again after star- told reporters. ring in Bayern Munich’s emphatic 9-2 Bundesliga victory over Hamburg on Saturday. Although the Bavarians were not crowned Bundesliga champions, with Borussia Dortmund defeating Stuttgart, they did cruise to a massive win at the Allianz Arena to put them within touching distance of the league title. Speaking after the match, the Netherlands winger claimed Jupp Heynckes’ rotation system was paying dividends for both himself and the rest of the squad. “The fans saw a great game. It was one of those weird games that you don’t experience often. We played very well, but Hamburg were also very weak and, quite frankly,

Robben

“It’s very good for the club now that there is a better squad at the coach’s disposal. It’s not just about the team on the pitch. “The players are demonstrating a better rhythm on the pitch and it makes you feel stronger. Now I am back in top form.” Xherdan Shaqiri took full advantage of a rare start against HSV as he struck for the opener and assisted on another goal and he hailed the versatility of the Bayern side after the game. “You can see that almost every player is interchangeable. That has certainly been our key to success,” Shaqiri said.

for,” he told reporters. “I am very upset. Managers have to analyse the situation and see, who deserves to stay in the team; to hit his hand on the table and make decisions. This is my opinion. I’m talking about all this now because I remained silent in the past. I tried to be polite as far as I did after the match with Mars. It’s time to see things clearly.” Fabri’s outburst has reportedly provoked anger among the players and the national sports press yesterday ran stories claiming that the coach would be jettisoned and that academy coach Gianns Vorontas would take charge until the end of the season. Panathinaikos have yet to make any official statements and could not be reached for comment by Reuters. Fabri replaced Argentinian Juan Roman Rocha on January 8, but the club have struggled with indifferent form amid a background of financial problems. To make matters worse, archrivals Olympiakos Piraeus have already wrapped up the title while the Greens have experienced their worst season on record. Their previous low came in the 1980/81 season when the team collected 13 victories, while this season the Greens have only picked up nine wins with only three match-

HILE the vast majority W of global audience still has to wait till May 25 to

“French Ligue 1 club Rennes will exercise their option to complete a permanent move for Jean Makoun in the summer transfer window. “The deal for an undisclosed fee will go through on July 1.” Makoun’s loan spell at Rennes was preceded by a season-long loan at Olympiakos, where he made 18 appearances and helped the team win the Greek Super League.

behold on television, the most coveted and keenly contested club trophy in the world, Heineken, the global sponsor of the UEFA Champions League, once again brings fans closer to the holy grail of football with the trophy tour. This is the seventh consecutive year that Heineken has undertaken the UEFA Champions League Trophy Tour. In 2009, Heineken presented the trophy to millions of Nigerians as it moved around various locations over a three-day tour in Lagos. Over 7,000 fans were at the open day event in Victoria Island before the trophy left for Egypt. The tour gave Nigerian fans a rare opportunity to be much closer and have a feel of the trophy. This year Heineken and the Revered UEFA Champions League trophy will be visiting Brazil, Congo and Indonesia to give fans the unique opportunity to interact with the famous trophy, the ultimate prize of the world’s most prestigious club football tournament. Two internationally renowned football greats, Bebeto, who won the FIFA World Cup with Brazil and Clarence Seedorf, Heineken ambassador and four-time winner of the UEFA Champions League trophy, were present at the first leg of the tour at the Casa Miranda Lagoon in Rio de Janeiro last weekend. Still to come are two Heineken ambassadors, Marcel Desailly on April 6 and 7 in Kinshasa, Congo, followed by Freddie Ljungberg on the April 13 in Jakarta, Indonesia. “The UEFA Champions League Trophy Tour is an annual event powered by Heineken and it takes place in different continents during the knockout phase. It is a travelling exhibition and trophy display, focusing on current players, coaches and matches to promote the tournament and its history,” the Marketing Director of Nigerian Breweries Plc, Walter Drenth explained last week.

Late in the game caretaker, Jordi Roura replaced the three amigos with Iniesta, Villa and Busquets, but the indifferent team, thinking probably ahead at Tuesday’s Champions League game at Paris Saint-

Germain, dropped two points and ruined Messi’s special day, allowing the modest hosts a goal they did not expect. Hopefully the saboteurs will be on the bench in Paris. • Culled from Yahoosports

Xavi

Makoun set to sign Rennes deal STON Villa has confirmed In a statement on the club’s A that midfielder, Jean official website, Aston Villa Xavi, Alba back for Barca’s PSG trip Makoun is set to leave Villa confirmed that the ARCELONA’S Xavi and leaders’ squad for their 2-2 Park and make his loan deal Cameroonian’s brief stay at Rennes permanent this the club is set to come to an BJordi Alba have both draw away to Celta Vigo in atsummer. end. recovered from hamstring strains and were included in their squad yesterday for the trip to play Paris St Germain in the Champions League quarter-finals. The duo returned injured from international duty with Spain - Alba after the World Cup qualifying draw with Finland a week ago, and Xavi after helping the world champions to get a 1-0 win away to France. They were left out of the

Liga on Saturday. Coach Tito Vilanova took charge of Sunday’s training session as he steadily works his way back into the job after two months in New York receiving cancer treatment. Vilanova returned to Barcelona last week and missed the Celta game but, all being well, is expected to travel to Paris with the team for Tuesday’s first leg.

The Cameroon international will sign for the French Ligue 1 outfit this summer for an undisclosed fee, having made 22 appearances for Les Rouges et Noirs since joining them on loan last summer. Makoun has struggled to hold down a place in the Villans squad and has made just seven Premier League appearances since arriving from Lyon for 6 million pounds in January 2011.

Messi sets fabulous “Tour De League” scoring record Tuesday he was gaspLupAST ing for air and throwing at halftime in La Paz’s 3,650-meter rarefied atmosphere during Argentina’s 1-1 draw with Bolivia in the FIFA 2014 World Cup qualifications. Wednesday he flew back to Barcelona and Thursday he was at practice, though he didn’t have to. Saturday he wore FC Barcelona’s captain armband for the first time in a league game. He scored a goal in the 73rd minute, almost giving his team a 2-1 victory. Lacking focus and an elementary sense of history his teammates found a way to spoil Lionel Messi’s day, allowing a late Celta Vigo goal for a 2-2 tie. But Messi’s goal set another record, one that most likely we won’t live to see duplicated. The Argentine wizard has now scored in 19 consecutive league games, meaning he has scored at least one goal against every one of the La Liga teams

since the streak started (against Mallorca) on November 11 last year. He scored 30 goals in these 19 games and has 43 goals in 29 La Liga matches. If he keeps up the pace he’s bound to surpass his own league record of 50 goals in one season set last year. Messi has scored almost half of Barcelona’s league goals (90) this campaign. He has more goals than 16 of the teams in the Spanish league. It’s time perhaps to stop comparing Messi to Pele and Maradona or other greats from the past. None of them can claim his feats. What Messi is doing is unique, unprecedented, impossible. It’s also time to stop comparing him to Cristiano Ronaldo, because it’s insulting. Ronaldo is a wonderful player, but Messi plays another game. He can only be compared to himself. What’s amazing, considering at what level he plays, is

that every year he’s better than the year before. He’s only 25, so probably he hasn’t peaked, but what he has done so far this season is enough to bring him the 5th straight FIFA Ballon d’Or. It’s been said that Messi is so prolific because he has the most wonderful football machine playing for him, Spain’s national team, world and european champion. That’s true, in general, when genial playmakers Xavi and Iniesta are on the field. It is also true that sometimes Messi keeps this thing afloat by himself. Against Celta Vigo he really had only young Christian Tello (fast, aggressive, “vertical”) on his side. The others were impostors in Barcelona uniform. The readers of the Catalan newspaper Sport gave 10 Barça players notes under 5 (on a scale from 1 to 10), and the team averaged 4.8. The most awful were those who were supposed to be

Messi Messi’s closest partners in Barça’s offensive output: Fabregas (3.2), a sad shadow of himself, Thiago (3.5) an arrogant, lazy and selfish sell-him-now player; and Alexis (3.5), forever a bust.

THE GUARDIAN, Monday, April 1, 2013

62 SPORTS

Hockey: Omotosho promises bigger SHI championship MPRESSED by the outcome IIndoor of the two-day NHF/SHI 5-Aside Tournament in Ilorin-Kwara State recently, sponsor, Rotarian Mike Omotosho, the chief insight officer of SHI has promised to make it an annual event. Speaking at the final of the tournament, the CEO of SHI (a non profit organisation), said he was looking forward to sponsoring a bigger and better tournament in the coming years. “I am quite happy with the way the tournament has gone and l want to say that l am committed to making it a yearly affair. I would also like to make it bigger and better organised next time,” Omotosho informed. Meanwhile Talba Hockey Team from Niger State has emerged winner of the maiden NHF/SHI Indoor 5-Aside Hockey Tournament. Talba defeated Union Bank Hockey side in the wellattended final 3-1 to lift the trophy and cash prize splashed on them by the sponsors. Edo Flickers also defeated achieved an emphatic victory over Kutigi Hockey Team, beating their opponent 5-2 in the third place match played before the final. In the female event, Edo Queens had the better of Kwara Female Team, beating

them 4-0 to cart home the winner’s trophy. In his remark, President of Nigeria Hockey Federation (NHF), Patrick Ukah reiterated plans of the federation to reignited hockey in all traditional hockey states, beginning with the just-ended SHI Indoor 5-Aside in Ilorin. “This is the first tournament in the now season and it is the beginning of many tournaments that would come back to ensuring that we recapture our traditional states. Plans have been concluded also to stage the Abba Buka Ibrahim Tournament while CMS Lagos and Government College Ibadan Old Boys are working round the clock to bring back the good old days of hockey in Nigeria,” added Ukah. The two-day tournament attracted top dignitaries led by CEO of SHI and key figures in Rotary Club of Ilorin and its environs. The hockey family in the state was led by N.O Ayilara, chairman, Kwara State Hockey Association. Other dignitaries present are General Secretary of the Nigeria Olympic Committee (NOC), Tunde Popoola, President, Nigeria Table Tennis Federation (NTTF) Abdulwahab Omotoshe and top guns in the Kwara State Sport Council.

DWB, Imoke Babes win 3x3 basketball tourney based DWB and Imoke LtheAGOS Babces of Calabar claimed top price for the boys and girls categories at the just concluded Uyo 3 x 3 Basketball Jam for the year 2013 as both teams smiled home with cash prizes of N100, 000 and N80, 000 respectively. The DWB side featuring Rosco Eze, Chigozie Ude and FIBA 3 x 3 ranked players Azuoma Dike and Godwin Ikonshul worked tirelessly to contain another FIBA 3 x 3 rated player, Victor Anthony, who led Alalibo Rolland and Kingsley Asan of Rocker Stars also of Lagos whom they defeating by 20 - 12 points to emerge champions. Dike, who also was adjudged the Most Valuable Player of the championship, which took place for three days, was a torn

Serena

Serena Williams sinks Sharapova for record sixth Miami title ORLD number one W Serena Williams fought back from a set down to beat Maria Sharapova 4-6 6-3 6-0 and win the Sony Open for a record sixth time at the weekend, as she continued her dominance over her closest rival. With the win, Williams, who struggled with her serve in the first two sets, becomes only the fourth woman in the Open era to win the same WTA tournament six times, joining Martina Navratilova, Chris Evert and Steffi Graf. “I finally have some record,” Williams said. “Like it’s really cool. I can’t seem to catch up with Margaret Court or Steffi or anything. I’m really happy to have something right

now, so it’s exciting. “Maria played really the best I have seen her play, and I think she was moving unbelievable and she was hitting winners from everywhere. .... How did I end up winning when I actually wasn’t on top of my game?” Second-ranked Sharapova has now lost to Williams in their last 11 meetings and has not beaten the American since her two victories in 2004. To add to the pain, the match was Sharapova’s fifth Miami final and her fifth defeat. “I had my chances. There’s no reason why I couldn’t win the match today,” said the Russian, who dismissed any suggestion of a psychological weakness against Williams.

“It was a step in the right direction and there’s no doubt that we’ll be playing many more times. There’s no doubt I’ll be able to beat her.” Sharapova, who won at Indian Wells earlier this month, took her great form into the opening set, almost breaking Williams in a marathon third game featuring some outstanding baseline rallies. The Russian, playing sparkling all-round tennis, got her reward when she broke to go 3-2, with a powerful backhand shot that Williams could only return to the net. Williams broke back straight away though, but a confident Sharapova took

advantage of some over-hitting from the American to break in the ninth game and served out to win the set. It looked as though Sharapova had a real chance to finally end her nine-year winless streak against the American but, as so often, Williams refound her game in the second. “I was just making so many errors and I just was like, ‘Serena, are you really going to get to the final and not play up to your potential?’” said Williams. After some entertaining exchanges, a double-fault from Sharapova handed Williams a break point and the Russian’s return to the net gave Williams a 5-3 lead

and she held to force the third set. The match turned decisively in Williams’ favor when Sharapova produced two double-faults to go down 3-0 in the third set and the Russian never was able to claw back from that position. “I was losing a little bit of pace on my ball which hurt me,” said Sharapova. “Against a player like Serena, you can’t really do that.” Williams, who has 15 Grand Slam singles titles, was happy to claim the record but was far from satisfied with her performance. “One of the first things I said (after the match) is I need that tape so I can go home and study it and train and try to get better,” she said.

in the flesh of the Rocker Stars as they could not stop him from shooting from any spot he found himself. Though, the Rocker Stars of Port-Harcourt fought hard to win the title but playing without a substitute and one player fouling out, Anthony could not find his feet as the DWB boys took proper advantage. For Dike, who had before now been voted the most Valuable Player of the Calabar Carnival 3 x 3 held in 2012 at the 13 Brigade Calabar expressed delight at his winning again. He noted that he was happy with the opportunities that the event has provided him. Light Bearers of Lagos picked the third place having defeated Word of Life team from Warri, Delta State. In the girls category, the Imoke Babes of Calabar once again proved that they are true champions as they left no one in that with their display beating third opponents also from Calabar, Fever in a game that ended 8 - 6 points. Again, it was keeping the promise made by the Imoke Captain, Agnes Ita before the event started that they want to remain champions. In deed the dream was fulfilled on the last day as she combined well with kid sister, Mary Ita, Terga Nsan and Udeme Ita to stop their opponents. Joe Edem, who led the Fever team could not believe that her team, which had Blessing Opufou, Bassey Orok and Makamba Bassey. Having led the Imoke girls to a second straight victory in the FIBA 3 x 3 basketball championship, captain of the team, Agnes Ita said that the intention of the team is to remain as the best in Nigeria. Blessing Opufou emerged the MVP for the girls’ category. However, Agnes Ita dominated the 3 points shoot out competition with a total of 10 points. The third place went to ASPAC Girls of Cotonou that defeated Unoma Queens of Uyo in overtime 13 - 12 points after tying 11 – 11 at full time.

SPORTS 63

THE GUARDIAN, Monday, April 1, 2013

League reforms versus corrupt strongholds By Harry Iwuala T doesn’t come as much surIattempts prise the surreptitious by some group to engineer confusion and derail the planned reform of the Nigeria Professional Football League, which only recently emerged from years of the worst kind of self-inflicted disruption. As one, who has extensive knowledge of the in fighting that ruined the management of the league these past four years, the appointment of the 13-member Interim Management Committee was an insightful step towards resolving the league crisis. I found myself agreeing with the Sports minister and dropped my suspicion of his earlier motives for insisting on the sacking of the Victor Rumson Baribote-led Board of the now defunct Nigeria Premier League (NPL) or is it Nigeria Football League (NFL) Limited Board. While the membership of the committee seems unwieldy, the quality and pedigree of the persons can hardly be faulted. The significance of their resource capacity can be gleaned in the report published recently detailing their destination and roadmap. For the first time since the inception of what has been tagged Premier League in the country, a direct attempt at administering football as a commercial venture has been presented. But it is natural to resist change, especially by a

few who has held the system hostage and feeding filthy fat on the sweat of young Nigerians. Let us examine the issues that seem to have been contentious starting with the alarm raised over the incorporation of the League Management Company (LMC). What emerges from most of the submissions made on social media is the question of ‘who granted the promoters of LMC the mandate to hold shares in trust for the clubs?’ The second that has been raised is about the ownership of the LMC. The recent clarification made through the release of a detailed report of their ‘reason d’être’ and activities so far by Mr. Nduka Irabor, exposed a huge gap in knowledge by most of those,, who have been commenting on the structure of LMC and their approach to managing the league. But some are also strictly out of mischief aimed at retaining the status quo. Some persons have also contended that the clubs ought to have come together to approve the incorporation of LMC and this flies in the face of the fact that it was the clubs in the first place that came together to dissolve their former executive committee. If recent development in the organisation of the league has run counter to expectations of the clubs, it is incumbent on the ‘Club Owners’ to take a common position and challenge the LMC.

Incorporation of a company doesn’t require a crowd and the reason for given mandate to anyone is for such persons to take decisions that will foster objectives of the mandate giver. But we are yet to hear complaints from the clubs, instead they have been participating in the 2013 season under the supervision of the LMC. It has been a surprise to read and hear arguments to the effect that Mr. Irabor and his team have hijacked the collective property of the clubs through the LMC. This position arose from incorporation document that showed that as chairman of LMC, he facilitated the registration process by assigning 20 per cent of the paid-up capital to his name. This obviously was an interim measure to secure the incorporation and more so avoid the legal challenges that led to the judgment to unwind the NFL. You can only become an active shareholder or director by making equity contributions in cash, service or machinery to the capitalisation of a business. What most of those crying wolf have missed is that the league has turned a phase to operate as a business and not the usual multi-purpose come-grab affair. As seen in the ruling by the respected Justice D. O. Okoruwa of the Abuja High Court in the case brought by Dr. Sam Sam Jaja against the NFF, NFL and some other individuals, “that the incorpora-

Heartland and Lobi Stars battling for honours last season. The LMC says it is working to reposition the Nigerian league. PHOTO: FEMI ADEBESIN-KUTI. tion of the 1st Defendant as a stakes in football manageAt this point that we seem to company with the 1st and 2nd ment through private placehave gotten the manageDefendant as the only sub- ments and subscription. ment issues of the league on scribers to its Memorandum The clubs and individuals the right pedestal, the clubs and Articles of Association is are free to buy up the remaincan be helped by making tantamount to incorporation ing 75 per cent and then we them take a queue from also by one person and thus illegal will hold the LMC Promoters taking the right steps and void in so far as the 1st accountable for returns on towards commercialisation. Defendant was not a legal per- the investment over an We should be speaking the son at the time of the sub- agreed period of time. right language of franchise scription to the Change is usually hard to presently and not bothering Memorandum and Articles of absorb, especially in a clime our heads over what constiAssociation.” where people have gotten tutes a league. We could have Perhaps those, who are wor- used to doing things in a parcalled it by whatever name ried about the stake of the ticular wrong but selfish way. that can be sold so far it clubs in LMC have failed to Why would anyone resist the attracts sponsors. It does not realise that the company has withdrawal of the league matter if it is called the only been 25 per cent capi- franchise from an organisaNigeria Football Conference talised going from the docu- tion, which has been declared or the Nigeria Football Club ment recently circulated. as not known to law? Challenge, etc but what matWhat happens to the remainAt this point in time, we ters is the perception we have ing 75 per cent? Is it not obvi- should be analysing the busiof it. ous that this is the time to ness objectives of LMC to see • Iwuala, a Sports Marketing properly dimension football how it can profit domestic and Media consultant, was a ownership and open the football, especially the playformer sponsorship manager at space for businesses to own ers through their clubs. Globacom Limited.

TheGuardian

Monday, April 1, 2013

Conscience, Nurtured by Truth

By Kolawole Oludamilare Dan

EING a holder of B. Agric. degree from one of Nigerian finest universities, I am familiar with the major agriculture fields such as agricultural economics, agricultural extension and rural development, agronomy, crop protection and animal science. However, years after graduation and having been let into how things are practically run in the society when it comes to agriculture, I have decided to coin out one last field of study in Agriculture that I was never taught while in school… ‘Agricultural Politics.’ The definition, if you will not mind to know is simply the using of Agriculture which is the occupation of the masses to bemuse the masses in order to win their support and ultimately their votes during elections. I have lost count on the number of times bags of fertilizer for example were politically used by politicians to influence decisions of poor farmers on who to vote and who not to vote for… and this goes for all other agricultural policies in this country. They are mostly politically motivated. I am sure am not the only one agonising over this line of thought. Maybe I am the only one who gets more puzzled anytime the government repeats one of their popular lines. We have heard ad infinitum that agriculture sector remains the only sector that can absorb the millions of youths now unemployed and underemployed in the country. This statement from the government has remained ‘political’ and not ‘developmental’ because there is no developed nation in the world that has agriculture sector as its biggest employer of labour. If Nigeria is hoping and willing to join the league of the first 20 developed countries in the world, then it should have a vision sharper than absorbing a gigantic portion of its population in agriculture. Rather, it should be more creative and determined to pay the price of turning the country into an industrialised nation where the most labour will be gainfully absorbed. The invention of efficient and clearcut agricultural machinery has demonstrated that more people on the farm are simply ‘old school’ and a sign of crudity in the economy. In the U.S. for example, only 1-2 per cent of the population feeds the remaining 98-99 per cent. This goes for all other developed nations where some even have less than 1 per cent on the farm. In Australia, each Australian farmer

To keep saying agriculture is the way out of unemployment in this country is to keep saying this country will remain poor in the midst of plenty. What will simply solve the problem of unemployment is industrialisation, where there can be mass training and retraining to produce what we consume/and export; to give value and dignity to lives by what we can do with our hands. What we need from the government is to open up the economy by creating an enabling and sustaining environment for development to naturally take its course.

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‘Agricultural politics’

I have lost count on the number of times bags of fertilizer for example were politically used by politicians to influence decisions of poor farmers on who to vote and who not to vote for… and this goes for all other agricultural policies in this country. They are mostly politically motivated.

Minister of Agriculture, Dr. Akinwumi Adesina

produces enough to feed 600 people, 150 at home and 450 overseas; Japan has less than 1 per cent of its population claiming to be farmers; Denmark has a population of 5.5 million people and produces food for 15 million people. The cost of industrialisation is ‘huge’ for this government because it will mean that they, the politicians, will be letting the economy

run itself without them having the sole power to influence it. We know that from their misconduct that our politicians do not want. It will also mean that expatriates who most times find it difficult in understanding the language corruption speaks will have to be involved in the building of our economy, especially agriculture. This also, our leaders do not want for the same reason of greed.

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OLOJA

ABC (ISSN NO 0189-5125)

Our leaders want to keep living like kings when in the real sense they were elected to be servants. In government today, everyone in all tiers, sectors and sub-sectors is a politician and it has to be that way for corruption to thrive. To keep saying agriculture is the way out of unemployment in this country is to keep saying this country will remain poor in the midst of plenty. What will simply solve the problem of unemployment is industrialisation, where there can be mass training and re-training to produce what we consume/and export; to give value and dignity to lives by what we can do with our hands. What we need from the government is to open up the economy by creating an enabling and sustaining environment for development to naturally take its course. A policy like the importation of phones for farmers when we can be trained to manufacture phones for everyone is certainly not the way to go. •Kolawole, Oludamilare Dan is a farmer and public speaker in Ibadan.