TheGuardian Conscience, Nurtured by Truth
Monday, July 15, 2013
Vol. 29, No. 12,618
www.ngrguardiannews.com
N150
NLC rejects new electricity tariff From Collins Olayinka, Abuja ROM the Nigeria Labour Fcondemnation Congress (NLC) has come of the multiyear tariff designed by the Nigerian Electricity Regulatory Commission (NERC). In a statement yesterday in Abuja, the NLC President, Abdulwaheed Omar, said that the congress rejected the latest figures because of the epileptic electricity supply and the low purchasing power of the working people. The Congress said: “The previous year, the charge which was N225, has been arbitrarily increased to over N700. This review whether done suddenly or in advance is without justification or rationale and stands condemned as it will negate whatever gains (that are) expected to be recorded by the much-vaunted reform in the power sector.” It stated that it believed that the multi-year tariff structure as designed by the NERC, which was ‘tacitly’ approved CONTINUED ON PAGE 4
Former Chief Security Officer (CSO) to the late Head of State, Gen. Sani Abacha, Major Hamza Al-Mustapha (left) and leader of Oodua People’s Congress (OPC), Frederick Fasehun, during Mustapha’s arrival at the Malam Aminu Kano International Airport following his release by the Court of Appeal… yesterday.
I didn’t make third class degree, says Soyinka at 79 - Page 5
Fresh outrage at Rivers’ crisis From Saxone Akhaine, Bashir Bello (Kaduna), Abiodun Fanoro, Yetunde Ebosele, Kamal Tayo Oropo (Lagos), Ali Garba (Gombe), Alemma-Ozioruva Aliu (Benin City), Charles Akpeji (Jalingo) and Azimazi Momoh Jimoh (Abuja) TILL outraged at the crisis SStatethat is rocking the Rivers House of Assembly which resulted in fisticuffs last week, various stakeholders have proposed measures to restore peace to the leg-
• ACN, AP blame Presidency, task PSC on probe • NUPENG seeks removal, prosecution of CP • Speakers condemn bid to impeach colleague • ACF warns of danger to democracy • PDP accuses ACN of plotting to destabilise system islative chamber. Reacting to the crisis in which five of the 32-member House of Assembly attempt-
ed the impeachment of the Speaker, Otelemeba Dan Amachree, the Action Congress of Nigeria (ACN) and
the Accord Party (AP) yesterday blamed the Presidency for the development. The ACN called on the Police
Service Commission (PSC) to address the causes rather than the symptoms of the crisis in the state in its ongoing investigation into the role of the police in the House of Assembly fight last week. But, the leadership of the Peoples Democratic Party (PDP) has accused the ACN of plotting to destabilise the system on account of its renewed call for the impeachment of President Goodluck
Oil marketers threaten to halt fuel importation over non-payment of N50b subsidy arrears - Page 15
Jonathan over the recent crisis in Rivers State House of Assembly. PDP Acting National Publicity Secretary, Tony Caesar Okeke, in a statement issued in Abuja said such call was an indication that the opposition party indeed lacked direction and only sought to destabilize the polity. In a statement yesterday in Lagos by its National Publicity Secretary, Lai Mohammed, the party said the statement credited to the PSC Chairman, Mike Okiro, suggested that his agency was only inCONTINUED ON PAGE 4
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NLC urges govt to drop new electricity tariff CONTINUED FROM PAGE 1 by government, only protects the interest of investors in the electricity sector and has little or no consideration for consumers, most of whom are poor and incapable of paying. The Congress further said that it was indeed exploitative
and saddening that the review was not accompanied by commensurate improved services. “If anything, electricity service delivery has plummeted over the years with consumers compelled to pay exorbitant tariff rates for incompetence, poor service and fraud,” it said.
It said that judging from the yearly percentage increase (which covers a 15-year period in the first instance), it was predictable that less than 10 per cent of consumers would be able to pay the outrageous tariff in the next few years. According to NLC, the structuring of electricity tariffs that are unreasonable and
unaffordable has grave implications for the economy and the people. It stressed that the step was a sad commentary on the electricity reform process, as it questioned the transparency, viability and ability to deliver in the interest of the nation. The Congress therefore warned against sheepish at-
tempts to duplicate the electricity reform process elsewhere as well as the attendant corruption. It said: “A viable power sector is key to revamping and repositioning the economy. Accordingly, nothing should be done to undermine this objective. However, a reform process which does not carry
along its people or protect their interest has only one direction to go – the abyss – and stands condemnable.” The Congress therefore called on the Federal Government to direct NERC to urgently retrace its steps and review downward the entire multi-year tariff structure in the interest of the people.
ACN, AP blame Presidency, task PSC on probe of Rivers crisis CONTINUED FROM PAGE 1 terested in the role of the police in last week’s clashes rather than how the police hierarchy in the state wantonly allowed them simply because it “was acting to protect certain interests at the expense of public interest.” The party insisted, in line with its earlier statement, that President Goodluck Jonathan could not be absolved of blame over the crisis, much as his aides and party have struggled to distance him from it. AP, through its National Secretary, Samson Isibor, has called on the National Assembly to commence impeachment moves against President Jonathan, alleging that he was intolerant of opposition , a development which spells danger for the nation’s growing democracy. Isibor, who spoke in Benin, asked all lovers of democracy to rise against “arm-twisting by the Presidency to secure second term ticket,” and further alleged that the crisis in Rivers was an offshoot of the controversial Governors’ Forum (NGF) election. Reacting on the issue yesterday, the National Union of Petroleum and Natural Gas
Workers (NUPENG) called for the arrest, removal and prosecution of the state’s Commissioner of Police, Joseph Mbu Joseph, over his alleged poor handling of the security situation in the state. According to a statement from NUPENG President, Igwe Achese, the Inspector-General of Police (IGP), Mohammed Abubakar, should be held responsible for his “failure to address the issue of loss of lives and damage to property in Rivers State,” because the police in the state under Mbu “have failed in their primary duty to protect lives and property and it is rather unfortunate.” Describing the incident at the House of Assembly as unfortunate, NUPENG called on the Federal Government to quickly intervene and allow justice, equity and fair-play to prevail, and vowed to take necessary steps to protect its members and all Nigerians in the state, “as the security of lives and property can no longer be guaranteed by the police.” Also, leaders of Arewa Consultative Forum (ACF) warned at the weekend that the situation portends great danger to the nation’s democracy if allowed to persist. ACF National Publicity Secretary, Anthony
Sani, blamed Jonathan for watching the ugly event degenerate, stating that as leader of the PDP and the country’s President, it behooves him to intervene and end the political crisis. Sani, who described the crisis as a national problem, said the unfortunate political logjam started with the governors’ forum election, which Governor Rotimi Amaechi was said to have won, and later extended to the House of Assembly, where five legislators purportedly impeached the Speaker. The ACF chieftain said: “I don’t want to know if Jonathan is responsible for the crisis in Rivers State or not, but what we should understand is that he is the one that gives direction to all issues in the country. If the President presides over a divided people of this country, then there is no hope.” According to him, irrespective of those instigating the crisis, the National Assembly has decided to live up to its responsibility to put an end to the issue to prevent damage to the nation’s democratic practice. And rising in defence of constitutional provisions for the impeachment of elected office holders in the country, the
Conference of Speakers of State Legislators has condemned the alleged removal of Amachree as Speaker of the Rivers House of Assembly, stating that it was unconstitutional and an enormous threat to the country’s nascent democracy. In an interview with reporters at the weekend, Chairman of the Conference and Speaker of Gombe House of Assembly, Inuwa Garba, said the action of the five legislators contravened Section 92 (2) c of the 1999 Constitution as amended. He noted that Assembly speakers could only be removed from office by twothirds votes of the entire members, and not five out of 32 as in the case of the Rivers House. Garba further called on the National Assembly to reinstate Amachree and save the country’s democracy from derailment, adding that the National Assembly should immediately commence constitutional process against the five legislators to deter others who may be nursing the same ambition. He equally enjoined the police in Rivers State to provide adequate security at the House to ensure smooth legislative activities.
In Benin City yesterday, the African Network for Environment and Economic Justice (ANEEJ) alleged that the Presidency, despite denials, should be held responsible for the crisis in Rivers State. Its Executive Director, Rev David Ugolor, called on Nigerians not to keep mum on the crisis, saying it has a lot to do with who becomes President in 2015. He likened the situation to the political crises that rocked Plateau, Ekiti and Anambra states, which snowballed into the impeachment of the then state governors. Already, a non-governmental organisation, Global Alliance for the Defence of Democracy and Rule of Law, has petitioned Senate President David Mark to urgently intervene in the crisis in order to save democracy. In an open letter to the National Assembly by its national co-ordinator, Chief Titus Adewumi, the group said it made an independent investigation into the Rivers’ crisis and “faulted President Jonathan for cowardly declaring an unannounced unilateral, unconstitutional state of emergency in the state.” Besides, the Taraba State chapter of the Nigeria Union of Journalists (NUJ) has tasked public office holders in the country to hold tenaciously to the rule of law, describing as shameful the crisis in Rivers House. In its statement during its congress yesterday in Jalingo,
the union urged the IGP to urgently remove the state commissioner of police. In the statement by Solomon Adjiduku and Charles Akpeji, the NUJ also condemned the Federal Government’s continued refusal to honour its pact with the Academic Staff Union of Universities (ASUU), thereby causing incessant strikes. On his part, the Founder of Oodua People’s Congress (OPC), Frederick Fasehun, has asked militants in the Niger Delta region, as well as security agencies, to steer clear of the political crisis in Rivers State and allow politicians to solve their own problems. In a statement issued in Lagos at the weekend, Fasehun also endorsed the resolution of the House of Representatives to take over the legislative functions of the Rivers Assembly. However, he insisted that Governor Amaechi must accord due honour to President Jonathan despite their personal differences, noting: “What you sow you reap. Sow respect and you reap respect; sow dishonour and you reap dishonour. Not only the Holy Books, even good home training teaches this and the governor ought to know.” He described the move by the Federal House to take over the functions of the Rivers Assembly as “a creative initiative that would guarantee that the state legislature was not hijacked by either opponents or propoCONTINUED ON PAGE 6
THE GUARDIAN, Monday, July 15, 2013
NEWS 5
News Senate postpones planned meeting with govs, others
NLNG, NIMASA end face off
HE Senate yesterday announced postponement of its earlier scheduled public meeting with the 36 state governors, the petroleum minister and other relevant stakeholders in the petroleum industry regarding the Petroleum Industry Bill (PIB). The postponement was to allow the Senate conclude work on the constitution amendment exercise. Senate President, David Mark, had informed the lawmakers last Thursday that final voting on the constitution amendments would be taken this Tuesday. According to him, “the joint committee public meeting with the state governors and other stakeholders will now hold on Thursday and Friday, rather than the TuesdayWednesday we had earlier scheduled.
HE prolonged face off beT tween the Nigeria Liquefied Natural Gas Ltd (NLNG) and
By Sulaimon Salau
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India Community in Nigeria during the 2013 yearly SRI Jagannath Ratti Yatra celebration in Lagos.
PHOTO: OSENI YUSUF
I didn’t make third class degree, says Soyinka From Charles Coffie Gyamfi, Abeokuta OBEL Laureate, Prof. N Wole Soyinka, yesterday counseled Nigerian children not to be discouraged by the recent killing of 46 school children in Yobe State by suspected Boko Haram members, but to strive for knowledge so as to “conquer ignorance”. Soyinka who spoke in Abeokuta, Ogun State capital, also charged the President Goodluck Jonathan-led Federal Government as well as the state governments to eliminate barriers and create conducive environment for every Nigerian child to have access to qualitative education. The Nobel Laureate spoke at his private residence, when he hosted 79 secondary school students across the country as part of activities marking his 79th birthday. The event, tagged: “Memoirs of our future”, was organised by a Lagos-based multimedia company, Zmirage, in conjunction with the Ogun State government. While advising students not to be discouraged by certain negative happenings in the country, Soyinka urged them to draw inspiration from the life of a 16-year-old Pakistani girl, Malala Yousafzai, who was shot in the head on October 9, 2012 by Taliban fighters over her campaign for girl-child education in Pakistan. Soyinka, who fielded questions from all his 79 guests who participated in an essay competition to commemorate his birthday, said Nigerian students must not allow themselves to be overwhelmed by negative happenings in the country but should see it as a stepping
• Explains how he missed being a journalist • Marks 79th birthday • Laments killing of school kids stone to strive for excellence at all times. “Don’t be satisfied with failure but rather strive to excel in all your endeavours,” he said. The literary icon also asked the federal and state governments to obtain the speech of Malala and make it available to all libraries, schools and archives to serve as reference point for upcoming generations. His words: “It (situation) looks very negative and hopeless. We must not allow ourselves to be discouraged. And the fact that people are still going to schools in those areas (violence-prone areas of northern Nigeria) shows
that we should not be discouraged. You are not a complete human being if you are not educated, schooled or cultured. “No matter what goes around you, you (students) must insist on your education. I am demanding from governors and the federal government to obtain the speech of that young girl (Malala), burn it into CDs (compact discs) and make it available to all libraries, schools and archives.” On his non-believe in any religion, Soyinka said he believes religion should be a private thing. He stressed the need for inter-religious tolerance among all
Nigerians. He also used the occasion to debunk age-long speculation that he got third class in the university, declaring that he actually had Second Class Upper and not third class as widely believed, explaining that he had kept silent over the years on the matter but decided to open up for the sake of the children as a mark of respect for them. On his role model, Soyinka, described his first teacher (one Mr. Olagbaju) as his role model, even as he explained that there was no mystery behind his grey hair. On his aspiration in life, the literary giant pointed out that he would have loved to become an architect, musician or a pilot. “I would have loved to be an architect, or a musician, but not an amateur, a trained one. When I
left school, I wanted to be a journalist. I actually sat for an exam to be absolved in Daily Times, but after the exam, I was told that I wrote a short story and not a news story. So, I was not taken. Thank goodness, I did not become a journalist,” he added. Earlier at the Government House, Abeokuta, Governor Ibikunle Amosun urged the students not to relent in their educational pursuits. The governor, who described Soyinka as “a world citizen,” also advised the participants in the essay competition to emulate the life of Soyinka and to be more studious. Amosun commended the organisers and restated the commitment of the state government towards supporting the celebration of the life of the nobel laureate.
Nigerian Maritime Administration and Safety Agency (NIMASA), has been laid to rest. A statement made available to The Guardian by NLNG yesterday said the gas company has paid the money, while NIMASA has also lifted the blockade on July 12, 2013, at exactly 10.00 a.m. The statement signed by General Manager, External Relations of NLNG, Kudo Eresia-Eke, said the prolonged interpretation of the NLNG Act was duly presided over by a Federal High Court, which upheld its exparte order against the Attorney General of the Federation (AGF) and all other agents, including NIMASA. The suit was filed by the AGF and the Global West (GW) and NIMASA. According to Eresia-Eke, the court held that the Federal Government is a necessary party in the action to the extent that the NLNG Act is a product of a direct agreement between NLNG shareholders and the Federal Government, which the AGF represented. The statement read in part: “The court also held that NIMASA’s complaint that it ought to have been joined in the action went to no issue as it could not have had better legal representation in the suit than the AGF’s legal representation of it. “The court also ruled that GW, though a private company and agent of NIMASA, a disclosed principal, was also a party in the action to the extent that allegations were made against it in the originating summons before the court. “The court also held that the contempt proceedings initiated against GW and NIMASA did not comply with the rules of the FHC and thus set them aside and upheld the contempt proceedings against the AGF.
Al-Mustapha arrives in Kano, lawyers differ on appeal time From Isa Abdulsalami Ahovi (Jos), Joseph Onyekwere (Lagos), Murtala Mohhammed and Abba Anwar (Kano) S Nigerians continue to reA act to the release of the former Chief Security Officer (CSO) to the late Gen. Sani Abacha, Hamza Al-Mustapha, and an aide to the late Chief Moshood Abiola, Lateef Sofolohan by the Court of Appeal, some lawyers have differed on the time allowed in law within which Lagos State government can file notice of appeal at the Supreme Court against the judgment. Former president of the Nigerian Bar Association (NBA), Chief Wole Olanipekun (SAN), said the state could appeal the decision if they are
• ‘He can’t go back to Army’ • ‘Let military decide his fate’ not satisfied with the judgment within 90 days. Also, another Lagos-based lawyer, Theophilus Akanwa, said “the respondent (Lagos State) has an opportunity to approach the Supreme Court within 90 days from the date of delivery of the judgment to set aside the Court of Appeal judgment. “While the court of appeal judgment subsists, especially without any order staying same, Al-Mustapha has his total freedom. His going home is in compliance with the court of appeal judgment and until same is set aside,” he said. But another Lagos based lawyer, and partner,
Perchstone & Graeys, Folabi Kuti said the statutory time allowed by law within which Lagos can appeal the decision is 30 days. Kuti said according to the clear lettering and intent of Section 27 (2) (b) of the Supreme Court Act, Lagos State, if unsatisfied with the Court of Appeal’s judgment reversing the lower court’s decision and entering, in its stead, a verdict of acquittal of the substantive offence of murder and complicity/conspiracy relating thereto, now has 30 days to give a notice of appeal against the judgment of the Court of Appeal under reference. “I trust that the Lagos State
government will review this carefully and make an appropriate decision either to exercise a constitutional right of appeal to the Supreme Court in the circumstance, or draw a convenient curtains at this stage.” Meanwhile, Al- Mustapha yesterday arrived Aminu Kano International Airport, Kano exactly 12.10 p.m. in M-Bety 328 private jet amidst heavy security. He was accompanied by leader of Oodua People’s Congress (OPC), Dr. Fedric Fasheun, Muhammed Sani Abacha and some of his family members. He was greeted by thousands of youths who
already took over the entire routes leading to Ibrahim Taiwo, Katsina and Airport roads. He visited Governor Rabi’u Musa Kwankwaso during which he said he had forgiven all those that had hand in his incarceration. “It appears to me like a dream. Way back in 1998, I was here at Kano Government House in tattered cloth with chains all over me and I was then taken to my residence where they searched my house thoroughly. Here I am, the same Al-Mustapha, coming to Kano Government House as a free man and with happiness all over my face and the faces of relations, friends and other well wishers,” he said.
THE GUARDIAN, Monday, July 15, 2013
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CNPP urges caution on trade with China From Lawrence Njoku Enugu HE Conference of Nigerian T Political Parties (CNPP) has urged President Goodluck Jonathan to exercise some caution in his rapprochement with the Chinese government, explaining that every colonial master had always attached some strings to economic aids. In a statement in Enugu yesterday by its National Publicity Secretary, Osita Okechukwu, CNPP urged Jonathan to beware of Chinese quest for neocolonialism in Africa. The statement, which welcomed the increased rapprochement with China, added however, that exercising caution had become necessary now that President Barack Obama had not extended an olive branch to his administration. CNPP added: “Jonathan should be cautious, less hasty or desperate in the rapprochement with the Chinese, especially now that President Barack Obama seems to have not extended olive branch to his regime. “It is the candid view of the Conference of Nigerian Political Parties (CNPP) that the history of colonialism has not changed and that every colonial master whether British, American or Chinese attach strings to aids and hence fuel her domestic economic growth.” The statement continued: “It is pertinent that our foreign policy objective should be structured for the long-term and not short- term goals, while we remain introspective in the utilisation of our natural resources. “For the avoidance of doubt, some are celebrating the tremendous rise of ChinaNigeria bilateral trade relations from $2 billion in 2002 to $13 billion in 2012; forgetting that Chinese cheap and fake products not only dominate the trade but stifle our local industries.” Recalling the speech of President Jonathan where he explained that Chinese had been
instrumental to supporting Nigeria with financial support and investments, CNPP said that the Chinese had not been transparent. CNPP said: “In 2006, Chief Olusegun Obasanjo, then president, awarded the narrow gauge 1,315 km Kano-Lagos Rail Track to China Civil Engineering Corporation (CCEC) at a whopping cost of $8.3 billion, while the Chinese awarded 4,000km BeijingLhasa modern gauge to the Canadians and Germans at $4.2 billion. “In March 2006, Abuja Fast Rail was awarded to Guandong Xinguang International Group at $2.5 billion. ZTE was awarded in 2007 $750 million CCTV project for major cities in the country to curb insecurity.”
Former Commonwealth Secretary-General, Emeka Anyaoku (left); President, Torchbearers Society, Justice Samuel Ilori (rtd) and Bishop, Diocese of Lagos West (Anglican Communion), Rt. Rev. James Odedeji, during a lecture organised by the Society and delivered by Anyaoku with the theme God in my Life at PHOTO: ISAAC TAIWO Archbishop Vining Memorial Church Cathedral in Lagos… yesterday.
Boko Haram’s rejection of ceasefire vindicates Oritsejafor, says northern CAN From Saxone Akhaine (Kaduna) and Tunde Akinola (Lagos)
Groups applaud re-election
FFICIALS of the Christian O Association of Nigeria (CAN) of the 19 northern
bers of the group came up with peace overtures only to be denied or rebuffed by the acclaimed leader of the sect, Ibrahim Shekau. Last week’s comments by Oritsejafor drew the ire of the leading northern organisation, the Arewa Consultative Council (ACF) and the coalition of northern politicians, academics, professionals and businessmen, among others. Public Relations Officer (PRO) of Northern CAN, Sunday Oibe, while speaking with newsmen yesterday, argued: “The pronouncement by Shekau, the real leader of Boko Haram, has come to vindicate CAN and our national leader, Pastor Ayo Oritsejafor. Today, Boko Haram’s number one man has come to speak with scorn and contempt against the ceasefire agreement and the said feeling of remorse over their thirst for the blood of Christians and some few Muslims who go against their interest”.
states and the Federal Capital Territory (FCT) yesterday said that the President of CAN, Pastor Ayo Oritsejafor, has been vindicated for expressing doubts over the reported ceasefire deal reached between the Islamist terrorists group, Boko Haram, and the Federal Government. The Chairman, Presidential Committee on Dialogue and Peaceful Resolution of Security Challenges in the North, Kabiru Turaki, had last Monday announced the deal, while adding that the group, which had claimed the mass murder of at least 4,000 persons since 2009, had asked for forgiveness from its surviving victims. But CAN under the leadership of Oritsejafor said it doubted the credibility of the claim, saying that Boko Haram was too extreme and divided to have endorsed the ceasefire deal. Oritsejafor recalled past situations when certain mem-
“Just as CAN had warned, the amnesty committee (Presidential Committee on Dialogue and Peaceful Resolution of Security Challenges in the North) was useless. Now, it has lied to Nigerians for want of any result.” Oibe explained further: “Shekau said that more schools and more people will be killed for learning and teaching western education in schools in the North. He is the real Boko Haram boss and his threat must be taken seriously.” “That is contrary to views of some top Christian clergy who are apologists of Boko Haram together with some northern leaders, clerics and elite. All their advice to government on this issue has failed”. “We in Northern CAN believe that the amnesty committee is useless and has failed. It lied to Nigerians about this ceasefire just to fool President
Goodluck Jonathan to expand its tenure so that they can grab more money.” “All those giving President Goodluck unwise advice are either doing it for self-serving seasons, or are trying to deceive him into a blunder that will not only destroy him politically, but jeopardise the corporate existence of Nigeria.” “We want to advise our Christian brothers in vulnerable places to be extra-vigilant, including other non-Christians who may be target of the demonic antics of Boko Haram.” “Northern CAN is calling for the immediate disbandment of the amnesty committee. All monies that would be squandered on the committee should be put into supporting the joint task force and vulnerable communities in affected states. Enough of this jamboree with scarce public funds. Enough of hypocrisy.” Meanwhile, the Christian Association of Nigerian-Americans (CANA) and Youth Wing Christian Association of Nige-
ria (YOWICAN) yesterday congratulated Pastor Oritsejafor on his re-election as CAN chief. A statement jointly signed by CANA Executive Director, Pastor Laolu Akande and YOWICAN Assistant General Secretary and Chairman, Diaspora Committee, Rev. John Pofi, noted that the Minister of Special Duties and Chairman of the Presidential Amnesty Committee on Dialogue and Peaceful Resolution of Security Challenges in the North, Kabiru Turaki, must create a sense of public confidence in the purported breakthrough in the committee’s assignment by clearing public doubts on the ceasefire deal. The groups said: “As we have always noted that we are not opposed to a political solution to the Boko Haram crisis, we are a people of faith, and therefore a people of reconciliation who will welcome a ceasefire, if it is for real, but the evidence of this right now is still at best very sketchy.”
impeachment of President Goodluck Jonathan over the recent developments in Rivers State House of Assembly. This is indeed a sign that the ACN is bereft of direction, plagued by inadequate understanding of the laws and only seeks to destabilise the polity for selfish reasons. “For the avoidance of doubt, President Goodluck Jonathan has nothing to do with the activities of Rivers State House of Assembly and has no link whatsoever in the recent developments in that legislative house. “Much as we do not condone the violence witnessed recently in Rivers State House of Assembly, it is imperative to point out that brawls are usual phenomena in parliaments and on no occasion has any reasonable person called for the impeachment of the President of a country as a result of legislative brawls”, the statement said.
The party recalled the fracas in Ogun State House of Assembly earlier this year during which the mace was destroyed and noted that nobody called for the impeachment of Governor Ibikunle Amosun. The PDP gave examples of recent brawls in legislative houses across the world, including that of Ukraine Parliament in March 2013, Taiwanese Parliament in June 2013, Venezuela Parliament in May 2013, Turkey Parliament in March 2013, Jordanian Parliament in March 2013; the Georgia lawmakers’ brawl in the United States (U.S.), during a TV-Show in February 2013, among others, and pointed out that nobody called for the impeachment of the Presidents of those countries on account of the brawls. The PDP, however, reiterated its call on its members in Rivers State to maintain decorum, remain law-abiding and be calm.
ACF warns of danger to democracy CONTINUED FROM PAGE 4 nents of the embattled Governor Rotimi Amaechi.” According to him, the violence that followed the purported impeachment of the Speaker on the floor of the House clearly robbed the legislature of the power to continue in office. Recalling that police had in 2003 compromised their neutrality in the case of former Governor Chris Ngige, Fasehun lamented that history appeared to be repeating itself in Rivers and it could endanger the nation’s democracy. And reacting to reports that Niger Delta militants and cultists had invaded the state pursuant to launching an onslaught against some persons, he warned that it would be a dangerous move, stating: “Violence can only beget more violence. The intervention of militants will result in a vicious cycle of reprisal attacks. No matter how such a con-
frontation turns out, it will be a lose-lose situation for the peace-loving people of Rivers State who stand to pay a heavy price for any breakdown in the society.” According to the OPC founder, the situation in Rivers justified calls for the convening of a Sovereign National Conference (SNC). However, he insisted that the security of the governor must remain sacrosanct. Stating that it does not in any way lend support to the violence recently witnessed in Rivers State House of Assembly, the PDP said brawls were common features in parliaments across the world and wondered how and why President Jonathan could be held liable for the recent fray in Rivers House of Assembly. The statement said: “Our attention has been drawn to the renewed call by the opposition Action Congress of Nigeria (ACN) for the
THE GUARDIAN, Monday, July 15, 2013
Lagos sets new rule for communication masts By Adeyemi Adepetun HE Lagos State government has come up with a new set of standards for the installation of communications masts in the state. However, the new standards will not affect telecommunications firms, which are the highest users of masts in the state and Nigeria as a whole. According to Lagos government, the telecommunications firms were not affected because they have since been building and erecting masts to international standards, using the approved specifications and quality of steel materials. But those mainly affected by the new masts installation standards in the state are the banks, Internet Service Providers (ISPs), and other Small and Medium Enterprises (SMEs) that are using communication masts for their businesses. General Manager, Urban Furniture Regulatory Unit (UFRU), Mr. Joe Igbokwe, at the weekend in Lagos said all communication masts in the state must be erected with galvanised steel materials and must be between 30 metres and 50 metres high. UFRU is the Lagos Government Agency, under the Ministry of Physical Planning and Urban Development that is responsible for the regulation of masts installation in the state. The galvanised steel material, according to Igbokwe replaces the hollow pipes that were hitherto used by banks and ISPs in installing masts in the state. Igbokwe said the new standards became imperative, owing to the coastal nature of Lagos, coupled with the global climate change.
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Abia wants review of revenue allocation formula From Gordi Udeajah, Umuahia BIA State government has A called for the introduction of a new revenue allocation formula based on the present realities, saying that several formulae that have been used were opposed. The government’s position was submitted through the Deputy Governor, Chief Emeka Ananaba at the sensitisation forum organised in Umuahia by the Revenue Mobilisation and Fiscal Commission on the review of the revenue allocation formula. The state proposed a new formula that will reduce the current Federal Government allocation from 52. 68 per cent to 45 per cent, that of state governments to be increased to 32 per cent from the current 26.72 per cent while that of local government will also increase from 20.60 per cent to 23 per cent. Abia also posited that the present 13 per cent derivation rate from the mineral revenue be increased to 20 per cent” in recognition of the enormous environmental degradation to the areas concerned”.
NEWS
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Malaria vaccine ready in 2015, says WHO From Emeka Anuforo, Abuja, Chukwuma Muanya and Wole Oyebade, Lagos ROM the World Health Organisation (WHO) came cheering news at the weekend that finally a vaccine for malaria may just be three years away. The WHO said at the weekend that malaria vaccine trials are on-going on 11 sites across seven countries in Africa indicated remarkable progress, with signals that the world might have its first successful malaria vaccine by the year 2015. Experts say a malaria vaccine
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• Jonathan launches AU initiative on HIV/AIDS, Malaria, TB today • Ethiopia hosts regional centre for diseases control might offer the greatest hope of achieving significantly improved malaria control, particularly in Africa, where the ecological habitat is such that effective mosquito control has proved difficult or impossible to maintain. World Health Organisation’s Director in charge of Global Malaria Programme, Dr. Robert Newman broke this cheering news to The Guardian on the sidelines of the ongoing African Union
Abuja + 12 Special Summit on HIV/AIDS, Tuberculosis and Malaria. He stressed that there was no successful vaccine yet for malaria treatment, stressing that scientists have been on a search for a very long time. Newman said: “We should remember that most of the vaccines are against viruses bacteria. There are no vaccines as it is today for use against parasitic disease. There is a trial against malaria
vaccine on-going in eleven sites in seven countries in Africa. The name of that vaccine is RLTSS and preliminary results have shown efficacy in different age groups of anywhere and with 55 per cent efficiency in preventing malaria. If you think about the number of cases of malaria, the public health benefit of that could be amazing. “But, the trial is not finished yet. That trial will finish in having data available in 2014.
Omole unfolds agenda as new LAUTECH council boss From Tunji Omofoye, Osogbo HE Pro-Chancellor and chairman, Governing Council of Ladoke Akintola University of Technology (LAUTECH), Ogbomoso, Oyo State, Prof. Wale Omole has stated his determination to pilot the affairs of the council in a way that would take the university to greater heights. He gave the assurance on Friday at the Council Chamber, Senate Building of the university where Visitors to the university, Governor Abiola Ajimobi of Oyo State and his Osun State counterpart, Rauf Aregbesola inaugurated the 8th Governing Council of the university. The assurance came just as the visitors to the university tasked the institution management to work assiduously and return the university to its high standard. The former Vice Chancellor of Obafemi Awolowo University (OAU), Ile-Ife and chairman, Editorial Board of The Guardian, who spoke on behalf of other members of the Council, said they would lead by example and ensure that all organs of the university community adhere strictly to its core values. His words: “It is imperative for the Council to take the lead and govern by example of excellence and serve as role model for all the organs of the university. All efforts and activities on campus must recognise and adhere strictly to the core values of excellence, accountability, transparency, social responsibility, equity and justice”. Omole expressed gratitude to the Visitors for the confidence reposed in the council members saying, “It is indeed a great honour to be given this onerous assignment and responsibility that you believe we will discharge creditably”. “We will like to assure you that with undaunted determination, commitment to excellence and the blessed assurance from the Almighty God, you will both be proud of your decision and efforts at the end of the day”, he said. He said the university must live up to its bidding in all aspects particularly in the area of technology to enable it contribute its quota to the body of knowledge, skill and add value to its immediate and global community.
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He said that to achieve the objective, all members of the university must embrace, admire and breathe technology, saying doing so would serve as encouragement to the students. In his speech, Aregbesola urged the university authorities to come up with a modality to address properly the challenges facing tertiary institutions including funding, production of skillful graduates and cultism. Insisting that universities must impact positively on the society, he urged the people of Oyo and Osun not to allow selfish interest divide them over the ownership of the university but to work in unity in order to achieve common purpose to enhance development. Aregbesola, who noted LAUTECH was doing well until the period the locust set in, expressed joy that the administration, which created ownership crisis at the
university, was rejected through democratic means, saying that the people should never allow them to come to governance again. Also speaking at the occasion, Governor Ajimobi said Oyo and Osun states had resolved to work together and sustain LAUTECH saying, doing so would further strengthen Yoruba heritage and help in raising the stake of the university to world standard. Describing Omole as an accomplished academic, he noted that the quest to increase the tempo of development and growth of the university informed the decision to appoint him chairman of the Governing Council and Asiwaju Bola Ahmed Tinubu the Chancellor of the institution. The governor saluted the courage of Oyo and Osun people for standing resolutely against the destruction of the university saying that
they should always support the university to achieve its lofty objectives. Earlier in his speech, the Acting Vice Chancellor of the university, Prof. Adeniyi Sulaiman Gbadegesin thanked stakeholders for their support in overcoming the recent crisis. The VC enumerated the achievements recorded since July 2011 when his administration came on board, including stabilisation of the system, improved infrastructural development, staff welfare development, improved learning environment sustenance of the prime position of the university and building responsible studentship and unionism.
WHO is therefore, tracking the progress very carefully. We have experts committed to this. There are people who are looking at this.” Executive Director of the Roll Back Malaria Partnership, Dr. Fatoumata Nafo-Traoré said at the Abuja+12 Special Summit at the weekend that malaria deaths in Africa were down by one-third, compared to year 2000. “More than a million lives have been saved from malaria since year 2000, most of them among African children under five years of age,” she noted. She went on: “But we cannot rest on our oars. African countries continue to face many challenges, both financial and technical. To make rapid progress towards the 2015 malaria targets, we need to hit our enemy hard in its strongholds in sub-Saharan Africa while keeping up the fight elsewhere on the continent. Meanwhile, in a renewed attempt to tackle Acquired Immune Deficiency Syndrome (AIDS)-related deaths in the country, President Goodluck Jonathan will today launch a new initiative on HIV infection and eradication. The President will reveal his strategic plans as he opens the Abuja+12 African Union special summit on AIDS, Tuberculosis, malaria and other infectious diseases, at the International Conference Centre (ICC), Abuja.
THE GUARDIAN, Monday, July 15, 2013
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ACN suspends Rep, 12 others for alleged anti-party activities From Charles Coffie-Gyamfi Abeokuta
• It’s a ruse, says victim
CHOING the need for discipline, the Action Congress of Nigeria (ACN) in YewaSouth Local Council Area of Ogun State has okayed the suspension of a member of the House of Representatives, representing Yewa South/Ipokia Federal Constituency, Abiodun Akinlade and 12 others, in the council area for alleged antiparty activities. The affected persons were earlier suspended by their various wards. A statement by secretary of the party in the local council, Mr. Sunday Areola, in Abeokuta yesterday indicated that Akinlade, the chairman of the party in YewaSouth Local Council, Yahya Idowu, Jelili Idowu, Amoke Haruna, Kamoru Hamsat, all from Owode Ward 1, were suspended. Others include: Chairman, Owode Ward 2, Yisa Asorowo; Chairman, Oke-Oda Ward, Atanda Ogundele; Vice Chairman, Oke-Odan Ward, Isaac Singbenu; Secretary, Oke-Odan Ward, Fatai Bamidele and woman leader in Oke-Odan Ward, among others . Though Akinlade could not be reached despite several efforts, Idowu described the decision as a “political coup de tat’’. He argued that the party leadership at the council level, which suspended them, did not go through due process and, therefore, its decision was null void. The statement read in part:
“The meeting (that suspended them), which was attended by 79 members of the party, including the party’s leaders, elders and the executive members in Yewa-South Local Council, condemned the attitude of the affected members, which contravened the ethics and norms that are acceptable to the
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party and resolved unequivocally without prejudice to suspend them indefinitely”. It added: “The ACN leaders unanimously agreed to take this action to affirm the party’s supremacy over and above any person or group of persons and to maintain discipline in the party. The party thereafter mandated its Vice
Chairman, Ayo Olanrewaju, to act as chairman henceforth. “The affected persons, among others, were alleged to have secretly defected to the Labour Party (LP) in the state. In fact, Akinlade was alleged to be one of the four governorship aspirants of the LP in the 2015 polls”. Idowu insisted that he would continue to act as chairman of the party in the local coun-
cil, saying: “Until a disciplinary committee invites us and listens to our side of the story, we will not talk”. He added: “It is a political coup de tat to remove me and Akinlade, they said we belong to LP but the question is: where are our LP cards? It is a gang up, we will be silent for now waiting for the state chairman Alhaji Tajudeen Bello to give direction on the purported suspension”.
‘We’ll continue to protect Urhobo interests’ By Joe Adiorho ETERMINED to remain a vocal voice, the Urhobo Social Club (USC) in Lagos has reiterated its determination to protect Urhobo nation’s political interest and encourage her economic empowerment. It also called for re-orientation of values among the Urhobo people. The new President of the club, Simeon Ohwofa, made this pledge in his inaugural speech during his swearing-in. Ohwofa, who praised his predecessor, Emmanuel Evue, for his excellent stewardship and for initiating very wonderful programmes that are the primary tools for USC’s new engagement, said: “The era of docility and standing on the sideline when matters of political and social development are being pursued is over.” According to him, USC would engage other Urhobo elite clubs in Lagos, Abuja, home and abroad on issues and actions geared towards protecting and uplifting Urhobo political interest.
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Ohwofa, who noted that the club, which will celebrate its 40th anniversary this year, had entered a new era (the Generation of internet, social media and digital broadcasting), stated that it would also initiate discussions with the Urhobo Progress Union (UPU), Ukokor’Ivie and other elite organisations on how best to work Urhobo back into economic reckoning in a comity of ethnic nationalities. “We remember with nostalgia the Ibru Organisation and
Mosheshe Fisheries, to mention a few Urhobo-owned companies that provided wealth, employment and pride to our people. Can we have modern day industrialists/businessmen and technocrats?”, he asked. He, however, told the gathering that it was still possible, but it would be with cooperation and communication among the Urhobo. He also said the club would work closely with the UPU and the royal fathers in strategic planning and executions of
developmental programmes. On value re-orientation among the Urhobo people, Ohwofa lamented that “In Delta State and in Urhobo land, criminality has taken centre stage, “and issues of thuggery and kidnapping are robbing our youths and people of the much-desired employment opportunities.” Earlier in his valedictory speech, Evue thanked members of the club for the support that led to the success of his two tenures.
Baba Suwe appeals against quashing monetary award By Joseph Onyekwere COMEDIAN, Babatunde Omidina, popularly known as Baba Suwe, has lodged an appeal at the Supreme Court against the decision of the Court of Appeal, Lagos Division, which
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nullified the N25 million monetary compensation awarded to him by a Lagos High Court. The monetary award was made in his favour against the National Drug Law Enforcement Agency (NDLEA). The notice of appeal filed by his counsel, Bamidele Aturu, on Friday, is praying the apex court to set aside the decision of the appeal court and uphold that of the trial court, which awarded monetary compensation to him. The Appeal Court had on May 31 quashed the judgment of the lower court, which ordered the NDLEA to pay him N25 million as compensation for detaining him for several days over allegation of drug trafficking. Justice Yetunde Idowu of a Lagos High Court, Ikeja, had awarded the compensation (amount) to the comedian. But the appellate court, in its judgment delivered by Justice Rita Pemu, considered all the three vital grounds of appeal in favour of the appellant (NDLEA). The NDLEA had, in its appeal, asked the court to allow the appeal and set aside the judgment of the lower court. Justice Pemu, in her lead judgment, unanimously adopted by two other justices, namely: Chima Nweze and F. O. Akinbami, described the N25 million damages awarded to Baba Suwe as erroneous, oppressive and superfluous. Justice Pemu held that even though the trial judge had discretion to award costs in a fundamental human right suit, such award of damages must be based on law and not arbitrary. In addition, the appellate court held that the lower court judge erred in law when it ordered NDLEA to pay Baba Suwe N25 million as compensation and that the appellant should publish a public apology in two widely read national newspapers. Justice Pemu said: “Damages
must be based on law, even though it is at the discretion of the trial judge. The award of N25 million to the respondent was based on wrong premises and it is uncalled for.” She further held that no evidence was placed before the court to warrant such outrageous award, adding that the court ought not to have overburdened NDLEA with such award of damages. On whether the NDLEA had reasonable causes to detain Baba Suwe from the day of his arrest (October 12, 2011) till October 21, 2011, when the Federal High Court order to detain him was obtained, Justice Pemu held that the agency was justified to do so. She added that the appellant placed before the lower court documentary evidence and exhibits being results of various scans conducted on Baba Suwe, which justified his detention for several days over allegation of drug trafficking. On whether the Lagos State High Court has jurisdiction to entertain the suit filed by the respondent (Baba Suwe), Justice Pemu held that based on the pleadings before the trial judge, it is the Federal High Court that has constitutional jurisdiction to entertain the suit and not the state High Court. NDLEA had in its eight-page notice of appeal, signed by Femi Oloruntoba, stated that the trial judge erred in law when she held that NDLEA was not justified to detain Baba Suwe from the day of his arrest (October 12, 2011) till October 21, 2011, when the Federal High Court order to detain him was obtained. The appellant further stated that the trial judge erred in law and misdirected herself on facts when she held that the act of the NDLEA in detaining Baba Suwe for nine days was a flagrant abuse and infringement on his fundamental human right.
Kaduna to demolish weak buildings From Bashir Bello, Kaduna HE Kaduna government has directed the State Public Works Agency (KAPWA), in collaboration with other professional agencies, to pull down any dilapidated building. KAPWA’s General Manager, Tanimu Badmasi Abubakar, disclosed this while speaking with reporters at the weekend. According to Abubakar, the government had set up a committee saddled with the responsibility of demolishing dilapidated buildings in the state. The panel includes: members of the Council of Registered Engineers of Nigeria (COREN), Nigeria Institute of Building, Nigeria Institute of Architects and KAPWA. The development followed the collapse of a three-storey building in Hadeja Road in Kaduna on Thursday, which claimed four lives with others sustaining injuries. Abubakar, who disclosed this at the scene of the collapsed building, said it was very pathetic and painful that landlords and caretakers throw caution to the wind and erect anything as buildings just to get people to occupy them.
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Yero blames parents for moral decay From Saxone Akhaine, Kaduna ORRIED by the worsening societal ills, Kaduna State governor, Mukthar Ramalan Yero, has attributed the ugly trend in the country to the blind quest for wealth by parents who are supposed to inculcate sound moral values in their children. The governor spoke at the weekend during the 2013 Annual Ramadan Lecture in Kaduna, pointing out that some parents have practically sold the future of their children to the blind quest for wealth accumulation, which had resulted to collapsed family values.
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How to end ASUU, govt feud, by VC From Mohammmed Abubakar (Abuja) and Alemma-Ozioruva Aliu (Benin -City) S the industrial action embarked on by the Academic Staff Union of Universities (ASUU) entered its third week today, the Vice Chancellor, Wellspring University in Edo State, Prof. Godson Igborgbor, has called on the Federal Government and the striking teachers to display a high level of sincerity on the negotiation table. Meanwhile, students, under the aegis of National Association of Nigerian University Students (NANUS), at the weekend, lamented the on-going ASUU strike, saying students were at the receiving end of the crisis. Speaking with journalists at the weekend shortly after a facility tour of the school, Igborgbor said the government had at several times in the past reneged on agreements because it always agreed on what it was not sure were possible or not for it to meet.
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THE GUARDIAN, Monday, July 15, 2013
Elechi sacks aide From Leo Sobechi, Abakaliki OVERNOR Martin Elechi of Ebonyi State at the weekend sacked his Special Adviser on Primary Health, Dr. Nora Aloh, for acts parallel to the mandate of her office. Aloh, whose removal took effect from Saturday July 13, 2013, was also directed to hand over all government’s property in her possession to the relevant authorities. The sack, which was contained in a statement by the Chief Press Secretary to the Governor, Dr. Onyekachi Eni, explained that Aloh was relieved of her position for “acts inconsistent with the mandate of her office and she forthwith ceases to be a member of the State Executive Council”. However, it was revealed that Aloh was sacked for her alleged desperation for public office, especially in the light of her rumoured interest in the chairmanship position of Ezza-North Local Council in the September 28, 2013 polls.
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Imo hands over Concorde Hotel to new managers From Charles Ogugbuaja, Owerri O reinvigorate the Imo T State government-owned five-star hotel, Concorde, the state government has handed over its management to a South African firm, Silver Star Hospitality Company. Briefing journalists during a dinner/launch of website of the outfit in Owerri at the weekend, the Director of Sales and Marketing, Mr. Ekene Nnabuihe, said the refurbishment of the hotel has been completed, urging the public to patronise the hotel. Nnabuihe said: “The hotel is currently under the management of Silver Star Hospitality in partnership with Eurotech, a local engineering company.” He also debunked claims in some quarters that the hotel was in a state of disrepair, expressing hope that with the present promotional room rate of N17,500, facilities in place would motivate any willing lodger. Also speaking, General Manager of the hotel, Mr. Roland Fehlinger, said they would offer the best of their services to the public.
Kwara to upgrade 120 schools From Abiodun Fagbemi, Ilorin OR better services, Kwara State government is to upgrade 120 secondary schools in the state to meet global standards for infrastructure, teaching and pupil-teacher ratio. Governor Abdulfatah Ahmed, who disclosed this during an interaction with the state wing of the Nigeria Union of Teachers (NUT), said the move was designed to enhance the quality of education and teaching standards in the state schools in line with the education reform programmes, Every Child Counts, which was introduced by the previous administration.
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Diaspora remittance hit N3.36tr in 2012, says govt From Karls Tsokar, Abuja HE Federal Government T has said Nigerians in the Diaspora remitted N3.36 trillion (US$21 billion) in the last one year, as 15 million Nigerian citizens are living abroad, legitimately registered and gainfully employed. Secretary to the Government of the Federation (SGF), Anyim Pius Anyim, while delivering an address at a press briefing to herald the upcoming Diaspora Day/Conference in Abuja at the weekend, said: “From available records, Nigerians in Diaspora remitted about 21 billion U.S. dollars...which is the highest in Africa. This figure does not include unrecorded sums sent through individuals”. “Our records also show that there are more than 15 million Nigerians, legal migrants with the requisite papers, who are in other countries abroad, legitimately engaged in one vocation or the other, most of them professionals, businessmen, experts in dif-
ferent fields, earning a living through legitimate endeavours, all over the world”, he said. The SGF said the institutionalisation of the National Diaspora Day in 2005 was in recognition of their “worthy contributions” to national development and “to create a platform for Nigerian professionals and experts in the Diaspora and their counterparts at home to come together for productive dialogue, effective engagement and interaction, with a view to contributing to solutions
to some of our development challenges”. While emphasising government’s commitment to support and encourage Nigerians in the Diaspora to enable them participate actively in national affairs, thus the decision to allow collaboration between Nigerian National Volunteer Service (NNVS), International Organisation for Migration and other stakeholders to draft a national policy on Nigerian Diaspora. Anyim said the 2013 Diaspora Day/Conference coincides
with the Centenary celebration and would offer them the opportunity to participate in the activities, programmes and projects for the occasion. “One of the Centenary legacy projects that would be of interest to them is the Centenary City. The city is conceived to be a modern one with world-class infrastructure and facilities. Being a private sector-driven project... I want to specially invite Nigerians in the Diaspora to take full advantage of the business opportunities the
Dickson’s aide faults NUJ on gov’s alleged travels From Willie Etim, Yenagoa OVERNOR Seriake G Dickson’s Chief Press Secretary, Mr. Daniel Iwariso Markso, has dismissed, as mischievous and wicked, an allegation that his long and persistent absence from the state (Bayelsa), has made him a “junketer”.
The state chapter of the Nigeria Union of Journalists (NUJ) had last week accused Dickson of frequent travels outside Bayelsa and urged him to remain in the state to ascertain the problems affecting different communities with a view to solving them. But in a statement in
Yenagoa, the state capital, Markson said the claims that Dickson was often outside the state was a lie and mischievous, adding: “Dickson is not a junketer but rather, has raised the bar of good governance in the state in all ramifications and yardsticks.” According to him, the allegation of junketing was
My Pikin convicts seek freedom pending hearing of appeal By Joseph Onyekwere HE convicted producers of T the controversial teething mixture, My Pikin, have prayed the Court of Appeal, Lagos Division, to depart from the rules of the court and consider their freedom pending the determination of their appeal. Justice Okechukwu Okeke, now retired, of the Federal High Court, Lagos, had on May 17, 2013, in his judgment, found guilty and convicted the appellants, Egbele Austin Eromosele and Adeyemo Abiodun to seven years’ imprisonment while ruling that their firm, Barewa Pharmaceuticals Limited, be wound up and assets forfeited to the Federal Government. The judge found them guilty of conspiracy to and sale of dangerous drugs. At the resumed proceedings
Centenary City will offer to invest and own profitable businesses in Abuja”, he said. The House Committee Chairperson on Diaspora, Abike Dabiri-Erewa, said the occasion, which usually holds on July 25 every year, would be held from July 22 to 27 and would feature youth empowerment programmes, capacity building workshops, medical missions, Diaspora conference and review of the Diaspora policy and the launch of the House Committee on Diaspora’s magazine, among others.
of the matter at the weekend, counsel to the convicts, Mr. Osaro Eghobamien (SAN), moved the motion for departure from the rules of court, arguing that it would be in the interest of justice in the circumstances of the case, and in furtherance of the Court of Appeal Practice Directions 2013 to allow for an expeditious hearing of the matter. He referred the court to paragraphs of the affidavits of urgency and the other affidavits in support of the application, urging the court to exercise its discretion to grant the application, especially as the appellants’ brief has already been filed. But the respondent’s counsel, Mr. Jeff Kadiri, opposed the applications. The respondent, National Agency for Food and Drug Administration and Control (NAFDAC), filed and
served their counter-affidavits in opposition to the pending motions to the appellants, stating among other things, that they intended to file a cross-appeal in the instant appeal. Kadiri further argued that the respondents were not involved in the compilation of the record of appeal before the court and as such, he argued that the motion and the record in its entirety be dismissed. In urging the court to discountenance the counter-affidavits, Eghobamien cited various legal authorities to contra-
dict the arguments of opposing counsel. He argued that it is the position of the law that where the respondents are not in agreement with the contents of the record of appeal, they maintain the prerogative to file additional records of appeal. Arguing the motion for bail pending the determination of the substantive appeal, he highlighted the conditions, which the court would ordinarily require to be present before granting an application for bail. He stressed that same had been met by the appellants in the case.
made by critics of the government “and mischief makers for want of something to say.” He added that such allegations weren’t new and challenged those making them to prove such claims. “This is not the first time such a report is being peddled. Those behind it are doing it out of clear mischief. And we know them. To them everything is politics even when it is so glaring that the government of the day is working round the clock and changing the face of Bayelsa State,” he said. “The mischief makers typically blow things out of proportion and their aim is to distract the governor and seek undue relevance. We realised this from our first day in office and, therefore, cannot fall for such antics,” he added: He further stressed: “The same governor, who was falsely accused of spending more time out of the state, works harder than everyone, even to the detriment of his own health”.
THEGUARDIAN, GUARDIAN,Monday, Monday, July June15, 6,2013 2011 THE
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TaxWatch IN PARTNERSHIP WITH
TheGuardian Conscience Nurtured by Truth
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Transfer pricing - Base erosion and profit shifting (BEPS) In today’s world, aggressive tax avoidance is the new tax evasion
By Taiwo Oyedele
Taxpayers, corporate and individuals must pay attention to their tax affairs now more than ever before and must temper their appetite for aggressive tax planning with a pinch of morality to ensure that a fair amount of their profits is paid in taxes in locations where their business functions are performed.
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IONEL Messi, the Argentine footballer who plays as a forward for La Liga club FC Barcelona and the Argentina national team, is without a doubt one of the World’s best footballers of all time. Added to his extra ordinary talent is his decent and friendly disposition which has endeared him to many fans around the world. Very likeable indeed but may be not to the taxman, at least in Spain, where he has been accused of tax evasion. Messi has been resident in Barcelona since 2000 and gained Spanish citizenship in 2005. It was alleged that Messi and his father Jorge avoided pay-
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ing millions of euros in back taxes on Messi's image rights income through complex overseas structures in Uruguay, Belize and Switzerland. Messi is reported to have earned $41.3 million in 2013 up to June, $20.3 million from his club salary and $21 million in endorsements. The prosecutor claims that Messi used shell companies in low tax jurisdictions and tax haven to avoid paying tax on his image rights earnings. According to a statement credited to Messi in response to the allegation, he said "It is something that surprises us because we have never committed any offence.” Unfortunately it seems the taxman has changed the goal post such that tax avoidance, which is essentially tax planning within the ambits of the law, is now being considered as tax evasion which is criminal. Dolce and Gabbana were recently convicted of tax evasion in Italy under more or less similar circumstances. As the world becomes more borderless and physical locations of business activities become less relevant, governments around the world are battling to keep their traditional tax base in the face of stiff tax competitions among nations. Intuitively every rational person wants to minimize their tax bill hence the continuous search for legitimate tax planning by exploiting loopholes in the tax laws.
Unfortunately, the line between illegality (tax evasion) and legitimate tax planning (tax avoidance) is becoming thinner by the day. G8, the group of eighth of the world’s most developed countries met recently to discuss key issues including Tax, Trade and Transparency. The entire discuss around “Tax” centered on transfer pricing whereby multinationals and high net worth individuals are accused of shifting their profits from countries where their business activities are conducted into low tax jurisdiction or worse still into tax havens. Corporations, big or small and especially multinationals, are expected to contribute into government funding by way of taxes. In Europe and particularly in the UK, some of the multinationals recently accused of transfer mispricing include Google, Facebook, Starbucks and Amazon. Although parliament agreed that these corporations did not violate any laws it however questioned their morality with respect to the payment of their fair share of tax. This raises another question of whether it is wrong to avoid paying taxes legally if you can. The major cause of base erosion and profit shifting (BEPS) is that as businesses have become more sophisticated and complex, tax rules remain largely the same in the 21st century as they were in the pre indus-
trialization era. It is common sense that you cannot expect tax rules designed to address traditional commerce to adequately tackle today’s economic environment of global businesses characterised by information and communication technologies. The fluidity of intellectual property coupled with the ease of risk portability and the delivery of digital goods and services mean that tax arbitrage is not only easier but also economically attractive. In addition, competitiveness and the quest for super efficiency in the face of harsh economic conditions is making shared service centers, cap-
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tive insurance, central procurement and other arrangements more popular with the potential to result in base erosion and profit shifting. The OECD has been working on BEPS, which is likely to change how we view tax planning since it is becoming apparent that aggressive tax avoidance may now be viewed as tax evasion thereby attracting not just a civil sanction but also a criminal liability. The OECD’s BEPS project is looking at whether and why multinationals’ taxable profits are being allocated to locations different from those where the actual business activity takes place. This effort is being followed and supported by the G20. In June 2012, the G20 Leaders in their declaration at Los Cabos said “… we reiterate the need to prevent base erosion and profit shifting and we will follow with attention the ongoing work of the OECD in this area” Also there are moves to introduce more transparency around taxation by global organisations through the adoption of country by country reporting. It is said that African countries lose more money to transfer mispricing that to corruption so the focus on this important subject is only going to become more intense. Nigeria, Ghana, Angola, Kenya, Malawi, Namibia, South Africa, Uganda and Zambia are some of the countries in Africa that have introduced formal
transfer pricing rules with more expected in the coming years. Taxpayers, corporate and individuals must therefore pay sufficient attention to their tax affairs now more than ever before and must temper their appetite for aggressive tax planning with a pinch of morality to ensure that a fair amount of their profits is paid in taxes in locations where their business functions are performed. Whilst it is generally agreed that governments should avoid excessive or double taxation which is anti-investment, taxpayers also should not seek to achieve double non taxation. Sometimes it not just about tax, it is also about fair trade as transfer mispricing and the attendant artificially low taxes will confer undue advantage on the benefiting organisations to the detriment of others.
Taiwo Oyedele is a Partner and Head of Tax and Corporate Advisory at PwC Nigeria. He is a regular writer and public speaker on accounting and tax matters. To get regular updates and in-depth analyses on tax matters visit Taiwo’s blog to subscribe at www.pwc.com/nigeriataxblog. Subscription is free!
THE GUARDIAN, Monday, July 15, 2013
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Politics APC will dominate four geo-political zones, says Mohammed Alhaji Lai Mohammed, National Publicity Secretary of the Action Congress of Nigeria (ACN), in this encounter says that given a levelplaying ground, the yet-to-be registered All Progressives Congress (APC) would triumph over the ruling Peoples Democratic Party (PDP) at all levels of election in 2015. He also fielded questions on the motive behind the reported N2.4 billion contract given to the Oodua Peoples Congress (OPC) to police oil pipelines in the Southwest; the state of emergency rule in the Northwest and proposed amnesty to Boko Haram. He spoke to OBIRE ONAKEMU. Iit appears the ACN is poised to extend its frontiers in the country via the ongoing merger plan with other parties? ES, undoubtedly; and hopefully, any moment from now, we would cease to exist as a political party. As at today, the ACN, CPC and the ANPP have met the provisions of the Electoral Act. When two or more parties are coming to merge, they must, among other things, hold a special convention of their parties. The ACN, CPC and the ANPP have met with the requirements of the law, which is special resolution of the parties like: the proposed name, the constitution, and the manifesto. And the leaders of the party must be approved at that special convention of the various parties. As at today, the ACN, CPC and the ANPP have complied with those values. The next step is for the three parties writing letters to the INEC jointly and signed by the respective chairmen, respective secretaries and respective treasurers to that effect. And there is a point that we should lay out clearly with this merger. Not only the ACN but the CPC and ANPP would now cease to exist and become a bigger party with wider tentacles all over Nigeria. How would you task the INEC on the APC merger? We actually have no problems with INEC. We have followed due process and complied with the regulations in line with the Constitution and the Electoral Act. And we are confident that INEC would approve of the merger. Contrary to the distraction and the retrogression that are being generated around the merger, we have no reason to say that the merger wouldn’t be approved by INEC because we follow the Electoral Act. Each of the merging parties invited INEC to observe its convention. The merging parties have complied with the electoral portion of the INEC and therefore, we have no reason to believe that we wouldn’t be registered by INEC or that the merger wouldn’t be approved. How do you see the dissolution of the ANPP into the APC? There is no difference between the procedure by which ANPP, ACN and CPC would dissolve into the APC. They all fall into the same procedure. They all look at the relevant position of the Electoral Act; they have had their conventions and the three of them are going to write a joint letter. So, it’s nothing different from the manner and procedure in which the ANPP would dissolve into APC to that of ACN and
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CPC legally and technically. But if what you mean is whether we are very sure as to the sincerity of purpose of the ANPP in this merger, our answer is that so far, we have no reason to be uncomfortable with the ANPP. All that I’m saying is that there is no difference in the procedures and methods of the ACN, ANPP or CPC dissolving into the APC. The three parties would write a joint letter to INEC, to be signed by their respective secretaries, chairmen and treasurers. So, that is the manner to which they are going to dissolve into the APC. Do you consider INEC meeting the expectation of all parties in terms of electoral standards? Well, I would first of all encourage INEC to create a level-playing ground for everybody. And one of the most transparent manners to do so is to ensure that with the coming elections, the biometrics of every voter is captured in the registration exercise. And when we are voting, the biometrics particulars of every individual would be used to prevent multiple voting and other electoral irregularities. In that way, INEC would be seen to be above board. But if we don’t adopt this biometric system, then, the present system, as it is, would be liable and vulnerable to a lot of abuse. It seems that with what is going on with this merger, the ruling PDP has a survival war to fight in 2015. Does the APC stand a chance to challenge the PDP for the presidency in 2015? Undoubtedly, we are very confident that God willing, if there is a level-playing ground, the APC is going to triumph over the PDP. Not just challenge but to displace the PDP, not just at the presidential level but at the National Assembly and at the state level. With the merger coming up, the new APC would be the dominant party in at least four of the geopolitical zones with serious presence even in the South-South zone. So, clearly, I don’t see any challenge from the PDP unless there is no free and fair election or there is no election at all. PDP can survive in 2015 is only miracle! What is your stand on the N2.4 billion contract allegedly given to the OPC to police pipelines? So far, we are the ones that raised the issue, which the Oodua Peoples Congress (OPC) denied. But our position is very clear on this matter. We said any corporate body — any person in Nigeria — is entitled to bid for and be awarded a contract as long as such contracts are legitimate. However, there are strong objections when such patronage is meant to favour one political party against the other, most especially against information that the contract for the N2.4 billion monthly would be awarded for pipelines security for the OPC to form a political party to destabilise the polity in the Southwest. We have no quarrel with anybody forming a political party, as long as it meets the criteria of INEC and relevant laws. But we take strong objection to a situation whereby the government would be funding a group directly or indirectly at the expense of another political party. That is our position! You are claiming that the contract is a bid to lure the OPC so as to truncate the leadership position of the ACN in the Southwest? The truth of the matter is that we are not in a position for the ACN to be caged but the good thing is that if our information is correct, about 35,000 youths would be employed ostensibly to protect these pipelines. But these 35,000 young men, in realLai Mohammed ity, would
be used to destabilise the polity and there would be serious problems not only for ACN, but also for the whole country. How would you react to Otunba Gani Adams’ accusation that you are trying to dent the image of the OPC and the advantage given the body based on the said commonwealth? I’m not even aware of that accusation but that cannot be correct. If anybody is following the ACN and our public intervention in politics, they know that when a similar contract was given to High Chief Government Tompolo’s company, we also raised that same objection on the ground that there is nowhere in the world that the security of maritime domain is given to private companies. Therefore, when a similar issue arose more than 15 months ago — we treated issues not just one but with some people condemning that particular act. Secondly, we are not even aware that Tompolo is forming a political party to destabilise the SouthSouth or the Southeast. If we were aware of that, we would also condemn it. But make no mistake about it; we have no issue with anybody being given any contract, as long as it is legitimate. But we would take up such objections where state funds — the commonwealth funds — are used to give advantage to one political party over the other(s). The state of emergency rule declared in the Northeast of the country has been on for some months. Can it end the insurgency? Our position in this matter is very clear. We have been largely misunderstood. I think people are harping more on sentiments and emotions. What is all these about? For instance, we said we are opposed to this open-ended extravagance. And again, we are not taken in by the fact that democratic structures have been reduced because what we have today in those states where there is declaration of state of emergency, we have two governments — the de facto government led by the army and the Nigerian government led by the government there. And the question is who supersedes? Who is in charge? This is because what we have is a diarchy in which the military is fully in control. No doubt, everywhere in the world, we solve this problem with dialogue. You can bomb everybody out of existence but at the end of the day, you still have to come down to tackle the problem, to face the problem so as to
resolve it. What we are seeing is that two pictures are on the line; probably, the pictures would become clearer. What is happening in Nigeria is not an external war; this is a war against your own people. How do we ensure that most of the civilians in the areas are not victims? As at today, thousands of people have migrated from Borno, Adamawa and Yobe states. Some moved to neighbouring states and others to neighbouring countries. We have always condemned any killing; we always condemned any violence. And the records are there! Even when other political parties are advertising their things, would come out frontally to condemn extra- judicial killings whether it is on the part of government or on the part of any militia groups. But our position on the emergency rule is that: is force the solution to this problem? Time will tell! Are you convinced that amnesty to Boko Haram would be an automatic solution to the insurgency? Amnesty, or whatever name you call it — engagement, dialogue is the only solution to this problem. You must engage them; you must dialogue with them; you must find the real cause of this problem. Dialogue is not ruled out. And like I said before, time will tell. But it’s like Boko Haram wants Islamisation of Nigeria at all costs? Nobody would support that! It’s a very unreasonable demand on the part of Boko Haram. There are leaders in Borno State; there are leaders in Adamawa State; there are leaders in Yobe State, and there are leaders all over Nigeria. Consult with them; collaborate with them; work with them. Don’t dismiss them outright; they may have a role to play in this matter. The intention of Boko Haram to Islamise Nigeria is a voice of an extremist organisation and we must make them understand that that would not work. It would not even work in other regions. They need to come to a roundtable and heed the voice of the government of the day.
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THE GUARDIAN, Monday, July 15, 2013
TheMetroSection ‘If I am set free, I’ll not come to Lagos again’
Briefs Estate residents seek action against flood
• RSS arrests underground cable thief, Lagos State officials for stealing diesel
AYS after Lagos State govD ernment announced it has taken some precautionary
The suspects
The cables and garlons of diesels
By Odita Sunday ONSTANT patrol of some dark spots in Lagos metropolis, especially the Third Mainland Bridge by the Rapid Response Squad (RRS) of the Lagos State Police Command, yielded result at the weekend as a kingpin in Underground telecommunications cable vandalism and two officials of Lagos State Electricity Board, who connived with criminals to steal government diesel and electricity equipment were arrested. The suspects were arrested by a team of RRS men led by the Commander, Akeem Odumosu, an Assistant Commissioner of Police, while on patrol at midnight. The suspects who were paraded by the Lagos State Police command spokesperson, Ngozi Braide, a Deputy Superintendent of Police (DSP) at the command headquarters, GRA, Ikeja at the weekend told newsmen that “it was temptation” that led them into the crime.
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One of the suspects, Opeyemi Adeolu, who was the only cable vandal arrested by the RRS personnel, said his other colleagues took to their heels immediately they sighted police patrol vehicle. He said he was not able to run, hence he was caught that fateful night. “Those my friends called me on June 31 to join them and do some night work on Apongbon Bridge. My own duty was to watch out for police and give them signs, so they entered a hole there in Apongbon and started cutting the cables. I am also the one that looked after the cable on the expressway. Unfortunately for me, I did not know when RRS men arrived the scene without using their siren, so I was caught and my friends escaped. “Help me beg police to leave me, if I am free from this case, I will go to my village in Osun State and they will never
see me in Lagos again,” Opeyemi said amidst tears. Two Lagos State officials were also paraded for conniving with thieves to rob Lagos State Electricity Board of diesel and other materials used to provide power supply to major infrastructure in the state. One of the suspects, who identified himself as Mamman, is a 32-year-old security personnel from Gombe State. He said it was temptation that led him to connive with thieves to steal diesel kept in their custody. He said: “I am the engine operator in Lagos State Electricity Board. On July 1, 2013, the security guard and I connived with criminals to steal some jerry cans of diesel. In the process of loading it in the vehicle that night, we were arrested by RRS. Actually, it was temptation that led me into this. My salary is N30, 000.” Another suspect, Anthony Omoatama
PHOTOS: ODITA SUNDAY
said: “It was my colleague, Cletus, that brought this idea to me. But he ran away with the driver and we were caught. The Rapid Response Squad, an arm of the Lagos State Police Command, was set up to respond to emergencies within the state, speedily. The RRS carries out regular patrol of the state and have various “pinning-down points” across the city especially on Third Mainland Bridge and other lonely bridges in the metropolis. The RRS said it responds to distress calls made to 767 and 112 respectively. Lagos State police spokesperson, Braide said: “We want to emphasize that Lagos is still a no-go area for criminals and for those of them attempting to come back to Lagos, our arsenals are still very much on ground. We are re-oiling our arsenals and re-strategizing so that they have no space to operate.”
Police arrest four pipeline vandals, kill robbers in Sagamu, Lagos By Odita Sunday PERATIVES of the InspecO tor General of Police Special Task Force on Anti-Pipeline Vandalism Unit, Force Headquarters Annex, Obalende, Lagos, have arrested four suspected pipeline vandals. The suspects, identified as Ismailia Adetoro, 40, Raufu Odoniyi, 39, Oyedeji Salim, 22, and Tobi Olalekan, 25, were arrested at Sagamu area of Ogun state. The police anti-oil theft team, The Guardian learnt,
also impounded a truck with Registration Number XP453SMK containing 33,000 litres of Premium Motor Spirit (PMS), popularly called ‘fuel’. Confirming the arrest, Assistant Commissioner of Police, Friday Ibadin, who is in charge of the Task Force, said there were reports on June 27, 2013 that the suspects who have been regular visitors at that spot, were siphoning Petroleum products from Nigeria National Petroleum Corporation (NNPC) pipeline.
The suspects: Adetoro, Odoniyi, Salim and Olalekan
Policemen led by Sector Commander, DSP Onaghise Osayande, were immediately sent to the scene and they were arrested just as they were about to leave the spot after filling their truck with stolen 33,000litres of Nigeria peoples’ oil. “Ismaila, popularly known as Commissioner, has been on our wanted list. Investigation revealed that despite the fact that he was helping the police to track down vandals; he was also involved in pipeline vandalism. The fight against
PHOTO: ODITA SUNDAY
pipeline vandalism is a collective responsibility of every Nigerian and we should assist law enforcement agents to help protect our natural resources,” said Osayande. At the police station, Ismailia lamented that he decided to go back to crime when police failed to review his compensation as an informant. “I was a pipeline vandal years ago but when I discovered the danger, I decided to stop. I volunteered to alert the police anytime I discovered any illegal act in Sagamu. I kept to my promise and in return, I was compensated. But the truth is that I am a family man with so many responsibilities, and what I was offered could not improve my living standard. My vulcanizing business is no longer booming and I decided to go back to the same business.” “I called Alhaji and asked him to include me in his next deal. Unfortunately, it was in that deal that the police arrested us. I am sorry and ready to help the police for free, if I am released. It is the Devil and family problem that has landed me in this problem,” he confessed. Another suspect, Oyedeji, lamented that he woke up in the bush and had no choice but to join them. “I am a n assistant driver. I
normally sleep inside the truck at the close of work. On that day, I woke up and discovered that we were in a bush somewhere in Sagamu. I helped them to load the truck. I had no choice but to help my boss.” Another suspect, Olalekan who pleaded for pardon said he was lured into the business because of the “easy money” that was involved,” Olalekan said. Meanwhile, the Lagos State Police Command yesterday killed three suspected armed robbers in Lagos. The command, however, lost one of its men, a police corporal, to the bullets of the hoodlums. Five members of the robbery gang were said to have been arrested by the State Anti-Robbery Squad (SARS) led by its commander, Abba Kyari, a Superintendent of police (SP) Lagos State police boss, Alhaji Umar Abubakar Manko, who confirmed the incident to The Guardian noted that his men responded swiftly and killed three of the suspects and arrested five of them. “We lost one of our men during firing, we killed three of the robbers and arrested five of them. We are on the trail of other members of the gang. Let me use this opportunity to warn all criminals in Lagos that that their days are numbered.”
measures to guard against flooding, residents of Wemabod Housing Estate, Satellite Town, have appealed to the governor, Babatunde Fashola (SAN), and the state Ministry for the Environment, to save the community from being immersed by the flood. In a SOS letter to the governor, a senior citizen and resident of the area, Abu Omale, said the reason for the persistent flood whenever it rains is due to inadequate drainage. He, therefore, implored government to extend the drainage in front of the estate to Holy Family Junction, along Buba Marwa road before diverting it for easy flow into the canal. “The area is a short distance. The extension will commence from Wemabod, NITEL, through Oriade Local Council office gate and stop at Holy Family junction. This will definitely reduce the flood currently experienced in the area,” he noted.
TFC donates to Igbobi, orphanges in Lagos S part of its corporate social A responsibility (CSR), the Tastee Fried Chicken (TFC), recently visited and made donations to the National Orthopedic Hospital, Igbobi, Arrow of God Orphanage, Ajah, and Centre for Destitute Empowerment, Idimu. These homes were duly selected as beneficiaries of the Tastee Fried Chicken’s second quarter donation for 2013. Food items such as garri, rice, vegetable oil, bathing soap, toilet rolls among others, were given to the homes. The initiative, which began since the establishment of Tastee in 1996, has consistently given out food items to shelter homes and the less- privileged. A statement by the Executive Director Mr. Olubunmi Adedayo, said: “The Community Engagement Award recently given to us by the Capital Finance International (cfi.co) has continued to spur us with a passion to render service and continually meet the needs of the helpless in our society today.”
Firm gives N.5m to SPAN N line with its corporate soIChellarams cial responsibility (CSR), Plc has donated N500,000 to four members of the Special Persons Association of Nigeria (SPAN) to cater for their educational pursuit. SPAN is an umbrella body for the physically challenged, visually impaired, deaf and dumb and autistic children. Making the donation, third of such in a five-year scholarship support in Lagos, the Group Chief Information Officer, Dr. Harbhajan Batth, said: “In fulfilling its mission statement as a responsible, responsive, competitive and quality driven company, Chellarams would always engage in CSR activities that would impact on the society positively.” SPAN coordinator, Chidi Nwankwo, thanked the organisation for being a reliable partner in the last 10 years through its continued support.
THE GUARDIAN, Monday, July 15, 2013
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14 | THE GUARDIAN, Monday, July 15, 2013
TheGuardian 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 The civil service and flight of values IGERIA’S civil service has certainly suffered a serial debasement of its values, N desecration of ethics and, especially, erosion of professionalism exemplified by crass incompetence and flagrant disregard for rules and regulations by government employees. A re-orientation and renaissance, therefore, is a necessity if the engine of government, which the civil service is, would run smoothly and efficiently. At no other time than now does the Nigerian civil service need such a rediscovery. Difficult as it may be to pin-point at what stage the decline set in, the fact is that the problem predates the present administration. Being so old a problem and being now so entrenched, it would take a drastic approach and strong political will to halt the drift and stabilize the ship. The recent ban on civil servants from accepting chieftaincy titles and other sundry awards (except after retirement or disengagement from service) is therefore laudable as one of many steps towards a rebirth. Head of Service Alhaji Bukar Goni Aji is indeed very right to say that such vain glorification as accepting awards or titles by civil servants is inimical to the principles of anonymity, integrity and political neutrality. However, there is nothing novel about the directive which failed to take cognisance of the White Paper on Allison Ayida panel report of 1995 – itself a derivative of Dotun Philips’s of 1993/94 – a section of which forbids civil servants from taking chieftaincy titles. A lack of institutional memory is apparent here. It was also an attempt then to scale up efficiency in the service. But as it is with most of government’s laudable moves, it was good only for the archives. Now that Goni Aji has dug it up, a thorough enforcement of this rule would serve Nigeria well. As an institution, the civil service is the real driving engine of governments where efficient service delivery, discipline, integrity, political neutrality of public servants are sacrosanct – to enhance public confidence. These and other cherished values and ethics including loyalty and patriotism, probity and accountability, modesty and even tidiness in work environment make the civil service the place of choice for any nation’s best hands. It is therefore necessary not only to return to these age-long values but also stress that this particular directive on titles and vanities which are at the root of corruption in the service must be enforced and sustained. Civil servants are not politicians and, therefore, cannot be competing with the latter on acquisition of titles or on insensitive display of wealth, against common sense or service rules. There must be decency in everything they do as public servants and as professionals. The country yearns for the old order in the civil service which witnessed the highest level of discipline and professionalism and provided necessary support for the government of the day. Today, many top civil servants are not only shady businessmen; they openly participate in these deals and are not ashamed to flaunt the proceeds therefrom. With their ill-gotten wealth and obscene display of same through the practice of arranging social events especially weddings of daughters or sons in choice locations outside the shores of the country, it is doubtful if Nigerian civil servants can still lay claim to integrity and professionalism. The absurdity of their conducts in service could be gleaned from another directive to Ministries, Departments and Agencies (MDAs) to check the unauthorised use of siren, covered number plates and unregistered vehicles which the government believes constitute security threats. Because civil servants are part of a larger societal picture, the scenario painted by these developments should be seen as part of the tragedy of the country, going by the lifestyles of successive leaders who, by their words and deeds, encourage or even personify corruption. Service to the people or adherence to the oath of office is secondary. To say that the decadence has reached a new level even in the civil service would be an understatement. And it is a scourge which cannot be left unaddressed. That the system is today accommodating elements who are not afraid to loot the treasury shamelessly in their craze to be listed among the elite or to pursue political interests, calls for serious concern. With their stupendous wealth, proceeds of corrupt practices, such officials go for chieftaincy titles to assuage their vanities. As a result of the corruption of many in the civil service, other loyal and honest public servants have not only been deprived of their entitlements and thrown into post-service life penury, the institution is even nearing total destruction. Besides, such negative influences on the service have not been sanctioned publicly to serve as a deterrent to potential breaches. This laxity is also directly or indirectly flowing from the conduct of those in leadership positions who definitely have not been too exemplary role models. Presidents are particularly guilty as they have not always sent the right signals. Olusegun Obasanjo’s fund-raising for his library while in power is an example. President Goodluck Jonathan’s acceptance of a questionable gift of a renovated community church the other day and another fund-raising in his homestead remain bad examples of how to entrench values in the public service. For the civil service, certainly, the identified inadequacies are a pointer to the need to reposition it for the years ahead. But the entire public service, especially the political or elective offices, need an overhaul in composition and orientation. Otherwise, the present administration’s much-touted transformation agenda would be nothing more than another slogan.
LETTERS
Agric minister can do more Dr. Akinwumi Adesina, The ongoing registration of There was so much noise on casSandIR:theRural Minister of Agriculture farmers might not meet with sava/cassava flour initiative. The Development, is a good and desired result. To the gentle man, urbane and polished. Nobody needs to doubt his level of intelligence. Each time I listen or read about him my conclusion has always been ‘so so talk no action”. He has been “working hard” to make sure cheap and affordable food is available on our tables but his effort is yet to translate into reality – I might be wrong. To me there is even more hunger in the land than before. He has come up with a lot of reforms – more of theories than practical. He has depended so much on contractors and consultants than his workers probably he believes that the former can do better. Probably he believes that civil servants are lazy, unproductive, incompetent.
best of my knowledge most people being registered as farmers are non-farmers. Everything has been politicised. I have seen officials of the ministry registering farmers in the cities whereas the real farmers are in the rural areas. I have seen situations where the father, the mother and the children are registered individually as farmers so that all of them can benefit from the largesse the government is promising – free fertilizer, etc. Recently, the minister promised to collaborate with private sector to produce high-energy food – from combination of maize, sorghum and soya. Fine, but what came to mind is “this man has come again”.
Anambra needs election schedule The non-release of ing game under the guise of SshipIR:Anambra State governor- vast time provided by the elecelection timetable toral act and embrace transamounts to political negligence and playing waiting game in order to accommodate some political interests before going public with the Anambra State gubernatorial election timetable. The Independent Electoral Commission (INEC) should urgently publish the election timetable within the week or at most, next week. As an unbiased electoral umpire, Prof. Athahiru Jega (INEC chairman) and his commission must extricate selves from all sorts of wait-
parency and resoluteness in executing its responsibility in a timely manner that guarantees timely fairness to all candidates and interested parties. Failure of Prof. Athahiru Jega and his commission to release the timetable by next week would prompt the belief that Jega lacks democratic integrity, necessary in piloting the nation’s electoral responsibilities impartially and I will not hesitate to call for his immediate resignation. •Udo Udeogaranya, Anambra State.
initiative was about using cassava flour to produce bread. The presidency was fully involved in this and yet years after nobody is seeing cassava bread in the market or anywhere. Maybe the bread available only in Abuja. The earlier those in government stopped deceiving the rest of us and get down to real business the better. On food production, will it be too much on the part of government to collaborate with the private sector in order to establish thousands of hectares of farmlands all over the country with incentives and enabling environment provided? Even states and local councils can concentrate on crops where they have economic advantage. The teeming unemployed Nigerian youth can key into such projects where they can have meaningful living and yet contribute to development of agricultural sector. The NYSC scheme also comes to mind; some of the youth corps members (particularly those that read agriculture) can be drafted into such ventures. The eggheads in government (the Abuja elite) are very good at reeling out figures and economic indices to convince the rest of us that everything is okay and the economy is growing and booming, sound and healthy, yet more Nigerians go to bed hungry and remain unemployed. Enough of this charade and self-glorification, they are not more Nigerian that the rest of us. Ologun Freeman Benin City.
THE GUARDIAN, Monday, July 15, 2013
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Business Unconventional oil sources may impact global energy market dynamics, says Igiehon P.54
Oil marketers threaten to halt fuel importation over non-payment of N50b subsidy arrears By Roseline Okere FRESH fuel supply crisis A may soon engulf the nation’s economy, as the country’s fuel marketers, under the aegis Major Oil Marketers Association of Nigeria (MOMAN) have threatened to halt the commodity’s importation, over alleged non-payment of due subsidy on imported fuel in the first quarter of this year, amounting to over N50 billion. Global fuel stock may however be on the increase as the
• Unveil plans to reduce workforce • IEA projects phenomenal rise in global refining capacity International Energy Agency (IEA) has projected a growth of refining capacity by 9.5 million barrels per day (bpd) from this year to 2018, on assessed economic expansion, especially in Asian countries. The oil marketers, beside the threat, have already started making plans to embark on reduction of workforce due to fund paucity accentuated by non-payment of subsidy
arrears by government. Though the Ministry of Finance claimed to have released fresh N56.80 billion as subsidy claims to oil marketers, which it said, brought the total amount released so far for the 2013 fiscal period to N192.50 billion, The Guardian gathered at the weekend, that the marketers had only received N9.4 billion as subsidy on imported products for the first quarter of the
year. Besides, The Guardian learnt that some marketers were yet to receive payment for subsidy from 2011 to 2013. For instance, the government is yet to complete subsidy payment to Mobil from 2011 to 2013. The company has only received N2 billion with outstanding N8.5 billion. Also, NIPCO has only received N7 billion out of the N17 billion; Forte oil received N2 bil-
President, Nigeria British Chamber of Commerce, Chukwuemeka Awagu (left); Immediate Past Chairman, Nigerian Economic Summit Group, Mazi Sam Ohuabunwa; Coordinator, Community of Agricultural Stakeholders of Nigeria, Sotonye Anga and Group Chief Executive Officer, Primlaks Group of Companies, Ravi Hemani, at the AgricExpo 2013 event in Lagos, at the weekend.
CBN plans automation of trade transaction documents By Chijioke Nelson HE Central Bank of Nigeria T (CBN) has unfolded plans to automate the remaining foreign exchange forms, following the successful take-off of automated form M. The documents are Form ‘A’ issued for invisible trade transactions; Form NXP’ for export; and NCX for non-commercial exports. The Director, Trade and Exchange Department CBN, Alhaji Batani Musa, who made the disclosure at the GT Bank Settlement Customers’ Forum in Lagos at the weekend, added that the process of full automation of the forms has already started. Musa, while delivering his paper titled: “Fostering Trade in Nigeria: Responsibilities of
stakeholders” noted that trade is never completely executed until items of trade are delivered. “The clearance process at the ports, including airports and land borders must be efficient to reduce additional cost in doing business as well as port congestion,” he said. He noted that settlement process constitutes another challenge in international trade if not property structured, aiding that to realize the benefits, certain rules – local and international, need to be observed by parties involved. Musa urged trades and parties involved to contribute their quota by way of operating in line with the regulations of trade as far as declaration of goods and services are concerned to ensure smooth set-
tlement. “Settlement has an important role to play in international trade, especially as banks are the major institution responsible for settlement of trade transactions except where such trades are done informally. The GTB’s forum, according to the Managing Director of the bank, Segun Agbaje, was a deliberate effort “to engage with our regulators. It is for our customers to liaise with key stakeholders- the Customs, the warehousing agents, the clearing agents and port terminal operators. A paper from the Nigeria InterBank Settlement System (NIBSS), noted that the future of payment system in the country, which is directly linked to the settlement process in
trade, is bright. According to the paper titled: “The Future of Payments in Nigeria,” the adoption of Point of Sale devices will increase from 27 per cent to over 60 per cent, offsite Automated Teller Machines and Kiosks will be in fashion; interest-based payments will increase; and cash will still remain ‘king,’ though with reduced dominance. The paper also explained that the future payments’ prospect is high as West Africa becomes an integrated payment network and financial inclusion becomes more about the customers than the banks or government, while unique identification is implemented using biometrics, meaning that personal and credit information will be readily available, among other things.
lion for this year with outstanding N5.6 billion; Oando, which is being owned N26.7 billion, has not received anything at all. Executive Secretary of MOMAN, Thomas Olawore, who confirmed the development to journalists in Lagos at the weekend, said that the marketers are planning to halt importation of fuel. “We are actually planning to reduce our staff strength due to our inability to continue to finance fuel importation and I don’t think this is good at all for the country. “Our capacity to import has greatly reduced, meaning that it could get to a point where we can no more be able to do so. “Some banks have started to complain about non-payment. But many of them are busy calculating their interests, which the marketers are expected to pay. Apart from the interest, the foreign exchange rate is also affecting our reserve. Some times, we buy product at a certain amount and by the time we are to make payment, the exchange rate would have
escalated. We cannot pass this extra cost to the consumers because the sector is deregulated. “So, with these challenges, it becomes very tough to continue in business. The real issue is that whether we will continue to import or not, we want the government to pay us subsidy arrears”. He said it was in the best interest of the nation for the government to pay the subsidy, stressing that it would enable marketers to import more fuel for domestic consumption. “Marketers have in the past five months tried to sustain importation in order to ensure there was adequate fuel supply in all parts of the nation because of patriotism. But it could get to a point where we may not be able to import anymore.” Executive Secretary, Petroleum Product Pricing Regulatory Agency (PPPRA), Reginald Stanley, attributed non-payment of oil subsidy to marketers since the beginning of the 2013 fiscal year to foreign exchange differential claims by marketers.
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Minister seeks measures against cybercrime to promote e-commerce By Faith Oparaugo and Synthyche Boman OING by the business momentum emanating from various e-commerce activities in the country, the Minister of Communications Technology, Mrs. Omobola Johnson has called for stringent measures against increasing cybercrime activities in the country. Johnson, who called for more broadband infrastructure to accelerate e-commerce growth in the country, noted that online loopholes, that will make the system vulnerable for hackers and cybercriminals should be tackled. The minister, who spoke at the weekend in Lagos, at the one year anniversary of Jumia, a leading e-commerce firm in Nigeria, said that that the country requires high level of cooperation among players in the fight against cybercrimes, stressing that coming together of people to collaborate to grow the market would allow for a bigger stakes for all in the future. According to her, e-commerce requires that issue of cyber security should be taken serious, adding that the Ministry is determined to innovate and requires handshake of diverse Internet security and forensic intelligence to contain cyber traitors. Johnson disclosed that broadband infrastructure penetration in Nigeria is still abysmally low despite various facilities in the country. She however, said that this is a high priority growth area for the government and the
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Information and Communication Technology (ICT) industry. Johnson, in her keynote address titled: “E-Commerce and Information Communications Technology – An Engine for Job Creation and Economic Growth”, said improving the broadband infrastructure in Nigeria is highly imperative to driving the entire ecommerce value chain. According to her, “we need to ensure that the Internet structure is relevant”. She noted that a developing ecosystem is a driver of tremendous opportunity, adding that the youths are needed to use the Internet to promote local brand for a suc-
• Commends Jumia on growth in Nigeria cessful ecosystem in the society. She explained that the country is predominantly a cash based society with up to 64 per cent of adult population classified as unbanked, “but significant proportion of unbanked population is bankable. We need to increase the confidence of people in the Nigerian communication sector to willingness to increase investment infrastructure.” She stressed that Nigeria needs to improve on its human capital development by implementing initiative to build local capacity that will create more ICT jobs for the
country, “we are really focusing on driving the local content”, she added. Johnson, further said that the sector has the capacity to significantly extend reach of wholesale and retail trade in the country, stressing that ecommerce ecosystem is a catalyst for increasing local content in the Nigerian ICT industry. She applauded the e-commerce drives made by Jumia.com in her first year in Nigeria, stressing that the company has registered the country’s presence in the comity of e-commerce nations.
According to her, although Nigeria’s local ICT industry has received tremendous boost in the recent past; unfortunately, it is still dominated by foreign skills and brands, noting that Jumia with various initiatives has shown that potentials inherent in e-commerce can deepen job creation, e-payment and digitization. “Jumia has done prety well in the past one year, growing from nothing to something amazing. The industry, we know now can generate millions of jobs. And as a government it is our hope that the multi-million naira potentials of this industry will be tapped into in no distant time,” she said. Earlier in a welcome address,
Tunde Kehinde and Raphael Afaedor, co-founders and Managing Directors, Jumia Nigeria, said the company welcomes 100,000 unique visitors daily, making it the fourth most viewed local content site in the country, with a daily subscriber base of over 250,000 people, served over 500,000 customers, adding that Jumia’s social media community fans have hit 500,000. “Jumia is currently headquartered in its brand new state of the art 90,000 square feet ecommerce campus located in Lagos. With rapid growth in delivered across Nigeria, the Company further introduced pick-up stations across six locations in the country with many more in the offing.
NAHCO receives shareholders’ nod to raise N25b for business diversification, expansion By Helen Oji IGERIAN Aviation N Handling Company Plc (NAHCO Aviance) has received shareholders’ approval to raise about N25 billion from the capital market to finance its diversification programme. The approval from shareholders to raise fresh capital not exceeding N25 billion from the capital market was received at the company’s 32nd yearly general meeting held in Abuja on Friday. NAHCO, a diversified enterprise with interests in aviation cargo, aircraft handling, crew and passenger transportation service delivery, is embarking on diversification
and expansion programme. According to the company, the fund would be utilized into ventures like power, free trade zone, and business expansion into other African countries. The funds, according to the shareholders, could be raised through the issuance of corporate bonds, or other capital market instruments or in any manner the directors dimmed fit locally or internationally. The shareholders commended the payment of dividend of N369 million, which translates into 25 kobo per share for the 2012 despite the challenges the aviation sector faced in 2012. Speaking at the meeting, the
Chairman of the company, Mallam Suleiman Yahyah said the company was able to improve on its revenue, amid harsh economic environment. According to him, revenue rose from N7.142 billion to N7.404 billion, while profit after tax stood at N732 million compared with N807 million in 2011. “Our profit was also a reflection of the full implementation of the new International Financial Reporting Standard (IFRS) and the necessary adjustments and impairment that ensued. The company, however, improved its cash reserves ratios to 14 per cent in 2012 from 11 per cent in 2011, from efficiency gains equiva-
lent to additional savings of N520 million in 2012,” he said. Based on the performance, the company directors proposed a dividend of 25 kobo due to every shareholders of the company. Yahyah told the shareholders that the company’s investment of N2billion in the ultramodern warehouse in Lagos was beginning to yield desired fruits as NAHCO handled 100,498 tonnes of cargo in 2012 compared with 85,300tonnes in 2011. On the company’s expansion project in African, he said the company has been granted a 10 year licence to operate ground handling and cargo services in Liberia. “As we celebrate the Liberia
milestone and conclude plans to commence operations in this important and strategic market, we shall finalise similar licences in three other West African countries soon to enable us up our Africa operations,” he said. He explained NAHCO Energy and Power Limited (NEPL) was on course in the quest for obtaining electricity distribution licence in line with the Federal Government’s privatisation programme, adding that NEPL has a new technical partner, BSES Rajdhani Power Limited, a subsidiary of India’s Reliance Group, which he said has been working with the company on the Kaduna bid strategy.
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Benefits of agric transformation agenda, by Adesina By Helen Oji ITH the agriculture secW tor’s transformation agenda targeted at producing at least 20 million metric tonnes of food for the country by 2015 and generating about three million jobs from the entire value chain
of the sector, the ministry has announced that the initiative has reduced to the barest minimum the high per cent of total budget spent on food importation on a yearly basis. Speaking at the flag-off of AgrikExpo Exhibition in Lagos, the Minister of
Agriculture, Dr. Akinwunmi Adesina, expressed worry on the huge amount expended on food importation in Nigeria on a yearly basis. Specifically, Adesina explained that Nigeria spent about $11 billion (N1.7 trillion) on food importation yearly, which according to
him, is 37 per cent of the total 2012 budget of about N4.9 trillion. Adesina, who was represented by Dr. Sotoye Anga at the occasion, submitted that Nigeria, has embarked on an ambitious Agricultural Transformation Agenda and food production expansion,
• As groups task govt on 10 per cent budgetary allocation to agric From John Okeke, Abuja S Nigeria joined the rest of A the world yesterday to commemorate the world population day, the civil society groups, Fresh and Young Brains Development Initiative (FBIN) and Oxfam Group (OG) have urged the Federal Government to fulfill its pledge on 10 per cent budgetary allocation to agriculture to address the challenges of food security in the country Meanwhile, at the second
ordinary assembly of the African Union in Maputo Mozambique in July, 2003, African Heads of States and Government endorsed the “Maputo Declaration on Agriculture and Food Security in Africa “ where the Ministers of Agriculture, entitled by heads of their State, committed themselves to allocate at least 10 per cent of national budgetary resources for agriculture and rural development within five years The country director of
Fidelity Bank raises stake on transport sector development By Chijioke Nelson Bank Plc said that it FlionIDELITY had invested over N15 bilin various businesses in the transport sector of the economy, as part of its efforts to contribute to the nation’s development agenda. The bank’s Executive Director (ED), Corporate Banking, John Obi, who made the disclosure at the financial institution’s transport customers’ interactive session, said that transport sector was a very critical part of any economy. “The level of our investment compared to our overall portfolio in the industry has reached about 10 per cent of the market share when compared to other banks’ exposure to transport sector. This would be about N16 billion to N17 billion. “For goods and services to be moved across the country, it is necessary to develop the sector. Goods cannot be manufactured and kept in a warehouse. Its only when they are delivered to consumers that the goals can be said to have been achieved. That is why we are investing in that sector of the economy. “We are having an interactive session with our customers in the transport division of the bank. We decided to bring them together to share experience, know their perceptions of our services and for us to communicate to them about their performances in return, as regards the business we are financing for them,” he said. According to him, the forum was necessary because it was one of the ways of keeping abreast with what the customers are doing. For the Chairman/Chief Executive Officer of GPC Energy and Logistics Limited, Elvis Okonji, the relationship with Fidelity Bank had been a great one. “To date, they have disbursed N1.5 billion to our company in the last two years. The financial institution has demystified the idea of accessing loans
only when you know or meet the maaging director or ED. Okonji said that transport business had not started in the country, as its development was still at very low level. “The rail system is just coming up, even though we are not so sure. Maybe, in the next five to 10 years or more, it might pick up. For today, we are only trying to define what transport means. “I hope that government will look at the rail system and ensure that the acclaimed proposals will be implemented to the letter, then we may be getting there. In fact, the road network is the problem of the nation’s transportation system. “But when the road is poor and the rail system is not working, how can there be efficient transport system? This sector is one of the major boosts to economic development and opens the economy,” he said. Also, the Managing Director/Chief Executive Officer of ABC Transport Plc, Frank Nneji, noted that the major challenges besetting the sector border on the environment in which the business operates, like the road network, occasional scarcity of fuel, security, multiple taxes, touting, among others. “The road network in particular, which is more like a raw material in our business, is at a pitiable state and once the road is bad, the business is bad. Bad road increases journey time, maintenance and other operational costs. Some parts of the country cannot be accessed due to security issues and these impacts on our turnover, loan performance, profitability and survival. Nneji said that his company and Fidelity Bank are stakeholders, having been in almost 15 years of successful engagement, explaining that the forum was of immense benefit to all, as transport business is a specific one, with unique needs.
Oxfam Group (OG) Dr. Oluchi Okoye said that signing an agreement without an implementation aggravates the situation Okoye also stressed that with the rapid increase in Nigeria population there is need for an increase investment in agriculture adding that more investment in the sector will ensure the food security in the country Her words: “ Our leaders have gone and signed 10 per cent
budget allocation in agriculture in Maputo without us seeing the implementation. A time will come when Nigeria population will grow and there will be no food to take care of them. The face of hunger is the face of an African child. So more investment in Agriculture will enable farmers to get goods to market, learn more sustainable and productive farming method thereby ensuring food security in the country.”
aimed at reversing the initial trend of weakening the economy and strengthening the economy of other nations. He pointed out that the transformation agenda would develop new investment models that will help propel Africa’s agriculture and unlock wealth and opportunities for millions of farmers in the country. “Nigeria agriculture is a new era because a lot has changed. We have put an end to the corruption in procurement and distribution of fertilizers and food production. It was because a plan was on ground to boost agricultural production that we had enough food to eat during the flooding and that was why we did not go through food crises during the period. “Today million of farmers can be reached on their mobile phones to get input
supply and fertilizer. The federal government has done quite a lot and we want to do more. There hope for Nigerian Agricultural sector because it is a big market. We initiated food import substitution and currently, we grow our rice currently in Nigeria, there by enhancing job creation,” he said. He expressed the need to create a enabling framework that would drive agricultural revolution in Nigeria, adding that this would enable youths to discover the attractiveness and prospects in agricultural production. The President, Nigeria America Chamber of Commerce, Mazi Sam Ohuabunwa, explained that agricultural products’ expansion has resuscitated the growth of non-oil products, as well as increased the availability of raw materials for industries.
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InvestmentWatch Commom terms in equities market Introduction S the window of opportunities beckons to investors desiring to invest in the equities market, prospective investors who may wish to be part of the current rally will do well to familiarise themselves with the basic terminologies of investing in the stock market to enable them make informed investment decisions. In furtherance of GTBAM’s investment education objective, we shall in the course of this edition highlight terms that will serve as a guide to non-savvy investors who wish to deploy their funds to the stock market. Stocks A stock is a representation of the portion or part of a company that an investor owns. When an investor buys a stock, he or she is referred to as a shareholder or a stockholder because the payment affords the investor a small percentage of everything that that company owns e.g. Buildings, equipment, computers, etc. Holding the stock of a company also gives an investor the right to make decisions that may influence the company. Returns on investment depend on the success or failure of that company. Stocks fall into two main categories made of ordinary shares and preference shares: Ordinary shares Ordinary shares include those traded privately as well as shares that trade on the various public stock exchanges. Ordinary shares have a stated "par value", but the true value of an ordinary share is based on the price obtained through market forces, the value of the underlying business and investor sentiment toward the company. They have voting right but bear the liability of the company and in the event of a winding up. Preference Shares This class of shares affords an investor ownership in a company that has a higher claim on the assets and earnings than ordinary stock. Preferred stock generally has a dividend that must be paid out before dividends to ordinary stockholders and the shares usually do not have voting rights. Shares are available to investors in the primary market through private placements, public offers and secondary market. These transactions are brokered by stock broking firms who earn commission. Primary Market The primary market affords investors the first opportunity to acquire new issues on the securities exchange. It enables companies, governments and other groups obtain financing through debt or equity based securities. Primary markets are facilitated by underwriting groups, which consist of investment banks that will set a beginning price range for a given security and then oversee its sale directly to investors. Secondary Market In the secondary market, investors purchase securities or assets from other investors, rather than from issuing companies themselves. In any secondary market trade, the cash proceeds
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go to an investor rather than to the underlying company/ entity directly. Private Placement This involves sale of securities to a few, select investors as a way of raising capital. Private placement is the opposite of a public issue, in which securities are made available for sale on the open market and the placement does not have to be registered with the Securities and Exchange Commission. Investors involved in private placements are usually large banks, mutual funds, insurance companies and pension funds. Share certificate Shares certificates are issued to investors who buy shares as proof that they own the shares. The value printed on the certificate, usually small compared with the share price quoted on the stock exchange, is the nominal or par, value of the shares (their price at the time they were originally issued). It is unrelated to the current market value of the shares, and is required only for legal reasons. The Central Securities Clearing System Limited holds share certificates electronically (in dematerialized form) for investors to cut down paper work and also ease buying and selling of shares. Par Value - The nominal or face value of a security (Usually much lower than the security's market value). Defensive Stocks You have probably heard or come across the term “Defensive Stocks”. These are stocks that are usually found in sectors that are immune to recessions and economic slowdowns. They comprise suppliers of essential goods and services - such as pharmaceuticals, utilities and consumer staples - that consumers cannot forgo even during difficult economic times. They remain stable during difficult phases of the business and economy cycle, providing constant dividend and stable earnings irrespective of the general state of the market. Defensive stocks are also known as “non-cyclical” stocks because during recessions or market contraction they tend to outperform the market; however during a period of expansion in the market they tend to perform below the market because demand does not increase as rapidly as the expansion. Cyclical Stocks These are stocks that are sensitive to economic fluctuations and inclined to correlate with the overall trajectory of the business or economy cycle. They are also known as cyclical stocks because they have very strong performance in an expanding economy and this trend makes the price of cyclical companies to lead to an upturn or downturn in the economy. Cyclical stocks relate typically to stocks of companies that sell discretionary items that consumers can afford to buy more of in a booming economy and cut back during a recession. These stocks move independently according to variety of a number of market conditions. Some industries, such as travel and luxury goods, are very sensitive to economic up-and-downs. The
stock of companies in these industries, known as cyclical, may suffer decreased profits and tend to lose market value in times of economic hardship, as people try to cut down on unnecessary expenses. Growth Stocks These are stocks issued by companies expanding speedily over a long period of time due to several factors including technological feats or innovation, a shift in strategy, movement into new markets, acquisitions, and so on. Due to the fact that growth companies often receive intense media and investor attention, their stock prices may be higher than their current profits seem to warrant. This is because investors are buying the stock based on potential for future earnings, not on a history of past results. If the stock fulfils expectations, even investors who pay high prices may realize a profit. Since companies may take big risks to expand, however, growth stocks may be very volatile, or subject to rapid price swings. Value stocks The term refers to stocks that trade for less than their intrinsic values. Typically, value investors select stocks with lower-than-average price-tobook or price-to-earnings ratios and/or high dividend yields. They seek stocks of companies that they believe the market has undervalued. They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond with the company's long-term fundamentals. A central concept to value stocks is that of "margin of safety". This entails that an investor must buy at a big enough discount to allow some room for error in your estimation of value. Stockbroker A stockbroker is a person or a firm who performs transactions in financial instruments as an agent of his or its clients. Floor Brokers There are two main types: Commission brokers, employed by brokerage houses, buy and sell securities on the floor for the general public. Independent floor brokers work for themselves. Day Trader Stock trader who holds positions in securities for a very short time (from minutes to hours) and makes numerous trades each day. Most trades are entered and closed out within the same day. Blue-Chip Stock These are stocks of well-established and financially sound companies that have demonstrated its ability to pay dividends in both good and bad times. These stocks are usually less risky than other stocks. Stock Split Stock split involves the division of a company's outstanding ordinary shares into a larger number of ordinary shares. A three-for-one split by a company with one million shares outstanding results in three million shares outstanding. Each holder of 100 shares before the split would have 300 shares after the split, but his
or her proportionate equity in the company would remain the same - each unit would just be smaller. Sometimes when a stock price gets very high, companies may decide to split the stock to bring its price down. One reason to do this is that a very high stock price can intimidate investors who fear there is little room for growth, or what is known as price appreciation. Stock may also go through a reverse split, whereby a company with very low-priced stock reduces the total number of shares to increase the share price. For example, in a reverse split you might receive one new share for every five old shares. Options Is a rights to buy (call) or sell (put) a fixed amount of stock at a specified price within a particular period of time. Stop Order This is an order to buy a stock at a price above or sell at a price below the current market. Stop buy orders are generally used to limit loss or protect unrealized profits on a short sale. Stop sell orders (also known as stop loss orders) are generally used to protect unrealized profits or limit loss on a holding. Market Order An order to buy or sell a specific number of shares at the best available price once the order is received in the marketplace. Normally, a market order is executed at the quoted price given before the order was entered or at a price quite close to the quote. Limit Order This is an order to buy or sell a security at a price specified by the client. The order can be executed only at the specified price or better. It sets the maximum price the client is willing to pay as a buyer, and the minimum price he is willing to accept as a seller. Bid/offer spread When an investor asks a broker what price the shares of a company are trading at in the market, he will quote two prices: the bid price is the price at which an investor can sell the shares, and the offer price is the price at which he or she can buy them. The former figure is always lower than the latter, and the difference between them is the spread. Bull Market A continuous rise in stock prices over time is called a bull market. Rising prices typically attract more buyers into the market, and the increased demand, in turn, drives prices higher still. Speculators often add to this upward pressure by purchasing shares in the expectation they will be able to sell them later to other buyers at even higher prices. Bear markets This occurs when the market is moving downwards in a sustained way because speculative fever can no longer be sustained, prices start to fall. If enough investors become worried about falling prices, they may rush to sell their shares, adding to downward momentum. This is called a "bear" market.
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Insurance Stakeholders laud strategic initiatives to deepen insurance By Joshua Nse
… As NAICOM opens new zonal office in Ilorin
HE quest to deepen insurT ance penetration in Nigeria through the Market
from N157 billion in 2010 to N250 billion last year, which resulted in an increase in the ratio of premium to GDP from 0.5 per cent to 0.7 per cent. The Commissioner for Insurance, Fola Daniel, speaking during the commissioning of the NorthCentral zonal office of the commission in Ilorin, recently attributed the improvement recorded in the industry to the MDRI initiatives. He said: “The commission in its quest to deepen insurance penetration in our country established a developmental platform called
Development and Restructuring Initiatives (MDRI) may have begun to impact positive improvements in the operation of the industry. This indication was given by the National Insurance Commission (NAICOM), which confirmed that through the establishment of the development platform four years ago, the number of policyholders increased from 500,000 in 2010 to 1,500,000 in 2012. Besides, industry gross premium income went up
the Market Development and Restructuring Initiative. The programme is in line with the Federal Government’s FSS2020 development framework and has amongst its goals – to promote public understanding of insurance mechanism, build confidence in the Nigerian insurance market, grow the gross premium income, increase insurance density and contribution to GDP, and ensure enforcement and monitoring of compulsory insurances in Nigeria. According to him, the outcome of these efforts by the commission is already being felt in the industry
and by extension, the economy. For instance, he said increase in the number of policyholders from 500,000 in 2010 to 1,500,000 in 2012, gross premium income increased from N157 billion in 2010 to N250 billion last year, had resulted in an increase in the ratio of premium to GDP from 0.5 per cent to 0.7 per cent. Also collaboration with PENCOM to develop the annuities market, companies with foreign equity increased from three to 10, generating substantial foreign direct investment,
increase in local capacity for oil and gas risks from 10 per cent to 48 per cent, and commencement of implementation of section 50 of the insurance Act 2003 which has improved financial assets of operators. Performing the commissioning on behalf of the Kwara State, Governor Abdulfatah Ahmad, the Deputy Governor Peter Kishra commended the commission on the choice of Ilorin to locate its NorthCentral zonal office and thus, pledged the full support and collaboration of the Kwara State government in the discharge of NAICOM’s statutory responsibilities within the zone. He also noted that the presence of the commission in the state is an added boost to the infrastructural development, job creation and economic growth of the State. The office, which is located at the Federal Mortgage
Bank of Nigeria building on Asa Dam Road, Ilorin will serve the entire NorthCentral zone comprising Kwara, Kogi, Benue, Plateau, Nasarawa and Niger states respectively. The Managing Director/CEO, Riskguard Africa, and consultant to the commission, Remi Soladoye, in his remark congratulated the commission for the new office zone, adding the biggest achievement of the MDRI is the fact that the Nigerian insurance industry now has a united focus. “You are very clear of where we are going, you are very clear about the milestones you want to achieve. Before the MDRI, it was the operators that were leading the regulators, but the reverse is the case now. In the next few years, insurance industry in Nigeria will be leading the other financial services industry just like what is happening globally”, he said.
Avon HMO promises new standards in health insurance NHIS’s passion under the leadership of Dr. Abdulrahman Sambo, for our country will launch its brand with an Nigeria, to achieve universal array of products and services health insurance coverage. to the market. Working together with all The event to be held at the stakeholders, we believe this is possible sooner rather than ultra-modern Intercontinental Hotel, later. We want to add meanVictoria Island, Lagos on ingful value to the many peoThursday, July 25, 2013, will ple who will use our services, set the tone for how Avon so that we are touching lives, HMO plans to engage with even as we do our part to key stakeholders and part- improve Nigeria’s healthcare ners, including governments industry.” Avon HMO offers health and senior public officials; leading corporate organisa- insurance plans, health risk occupational tions; key SMEs as well as assessment, Healthcare professionals and health management, employee well-being and other servicproviders. Speaking at a press confer- es to individuals, families, ence in Lagos, Avon HMO’s groups, companies and the CEO, Mrs. Simbo Ukiri, said government. Its full range of the company aims to be the carefully designed health preferred choice for health- plans provides increasing levcare solutions, and will set els of care, which cover typical new standards in the indus- ailments and procedures that try…new standards by way of are treatable within and outNigeria. real value to clients, enrolled side members and providers; as “We have in our team some of well as new standards in serv- the best and most experiice delivery. enced professionals you can She said: “Avon HMO has find in this sector. Our partadopted a completely differ- ner provider network, which ent approach. We want our is still growing, covers all clients, enrolled members medical specialty areas and and partners to know that we includes over 300 hospitals, listen, and that we have the clinics and referral centres right people, skills and tech- spread across the 36 states nology to meet their health- and major local government care needs at the right price areas in Nigeria”, said Ukiri. Avon HMO is a member of and in the most responsive and efficient manner. Heirs Holdings, the invest“We don’t simply sell health ment company chaired by plans; we give clients and businessman and philanthromembers access to health- pist, Tony O. Elumelu. Heirs care solutions that are rele- Holdings is committed to the vant to their needs, improv- economic transformation of ing quality of life and pro- Africa through investments in moting soundness of mind strategic economic sectors: and body which accelerates financial services, power, oil & productivity and enhances gas, real estate & hospitality, the creation of wealth.” agribusiness and healthcare. According to her, “we share Avon HMO is a part of the company’s strategic portfolio. VON Healthcare Limited A (Avon HMO), a health management organisation
Vice-Chairman, Nigerian Insurers Association (NIA), Godwin Wiggie(right); Director-General, Olorundare Thomas; Managing Director and Chief Executive Officer, WAPIC Insurance Plc/Honourary Treasurer of NIA, Segun Balogun, at the 45th yearly general meeting of the association held in Lagos.
Law Union and Rock adopts sector operational model Union and Rock LedAW Insurance Plc, has adopta sector operational model, which will make it able to create different departments to provide efficient services for different sectors and individuals in the economy. The firm said this strategy became imperative to ensure that it offered efficient services to its clients. Besides, the move will also ensure that the company offered unique insurance solutions along the sector’s value chain. The Managing Director of the company, Mrs. Toyin Ogunseye, said the model will also enable the organisation align its offerings with the unique needs of the sectors of the economy. According to her, these departments are well equipped to make insurance more accessible and bring the firm’s innovative products to the insuring public. The managing director said the departments were
equipped with professionals who can offer the best services to the clients, adding that the company was interested in satisfying the insuring public through good products offering and efficient services. Ogunseye said that the sector model was also adopted in the business development and technical divisions of the firm.
She pointed out that this would ensure smooth and seamless operations in the company’s daily activities. “We are taking all these steps because we are interested in delivering quality insurance solutions to the doorsteps of our clients,” she said. According to her, Law Union and Rock Insurance said the move was part of
the company’s ongoing reorganisation and restructuring process as well as the implementation of its strategic initiative. It noted that the organisation will be able to align its offerings to the unique needs of different sectors of the economy as a result of the adoption of the sectoral model.
ARM Pension Managers records N3b revenue previous year. RM Pension Managers effect of new inflow of pen- the The investment returns A (PFA) Ltd recorded rev- sion funds and strong enues of N3.02 billion dur- investment performance. achieved by the ARM ing the financial year ended February 28th, 2013, which represents 33 per cent growth from previous year. Profit before tax and profit after tax for the year stood at N1.43 billion and N1.04 billion respectively, representing growth rates of 51.2 per cent and 78.4 per cent respectively from the previous year. This strong performance was driven by the combined
Overall, pension funds under management grew by 45.9 per cent to N264.6 billion as at February 28, 2013, from N181.3 billion the previous year. This performance translated into earnings per share of 88 kobo, compared to 49 kobo recorded the previous year. The company also proposed a dividend per share of 60 kobo, a 20 per cent increase from the 50k paid
Pension Managers’ RSA Fund and ARM Pension Managers’ Retiree Fund were among the best in the industry for the 2012 calendar year, with 15.51 per cent and 14.42 per cent net growth, respectively. With over N285 billion under management as at June 30, 2013, ARM Pension Managers is one of the leading pension fund administrators in Nigeria.
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Stockwatch In association with Lead Capital
Stock Market Report for the week Friday, 5th July to Thursday 11th July, 2013 ajor equity markets around the M globe moved upwards as their various indexes gained marginal points. In our universe of sample equity markets; the NASDAQ, S & P 500 and Dow Jones gained points by 2.24%, 2.30% and 2.02% respectively at the end of last week. In Europe, The FTSE 100, German Dax and France CAC 40 gained points by 4.42%, 3.03% and 3.74% respectively. In the Asia/Pacific region, Nikkei 225, Hangseng and BSE Sensex gained points by 3.24%, 4.73% and 1.37% respectively. In Brazil, the Bovespa gained point by 0.98% while Russia’s RTS INDEX gained points by 0.87%. On the local setting, NSE ASI closed at 37,327.66 recording 2.24% appreciation at the end of the week’s trading.
In the week, the total volume appreciated by 269.34% and value traded depreciated by 33.09%. A turnover of 7.83 billion units of shares valued at N16.52 billion was recorded, in contrast to a turnover of 2.12 billion units of shares worth N24.69 billion that was recorded in the previous week. Volume this week was driven by activities in the shares of UBA, TRANSCORP, GUARANTY, UBCAP, FBNH, AIICO, ACCESS, ZENITHBANK, NEM and UNITYBANK.
ANNOUNCEMENT URING the period under review, thirty five (35) D stocks recorded price appreciation compared to forty four (44) that depreciated in the previous week, CAP was first on the top gainers chart to close with 14.22%, followed by WAPCO with 11.60%, WAPIC with 11.11%, BETAGLAS with 10.00%, MOBIL with 10.00% and FO with 9.95%. Other gainers in the top ten categories were NASCON with 9.76%, DANGSUGAR with 8.30%, JBERGER with 7.72% and MRS with 6.74%. On the flip side, forty three (43) stocks depreciated in price last week compared to thirty one (31) that depreciated a week ago. COURTVILLE led on the price losers’ table with 22.50%, followed by GLAXOSMITH by 10.00%, TRANSEXPR by 9.96%, CHELLARAM by 9.82%, LEARNAFRICA by 8.99%, LIVESTOCK by 8.35%, ROYALEX by 8.33%, UBCAP by 8.33%, MAYBAKER by 7.92% and RTBRISCOE by 7.78%.
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COMPANY’S RESULT
Weekly Lead Equity Ratings
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Homes & Property
Federal Secretariat, Ikoyi, Lagos
Defence Building, Lagos
NECOM House, Lagos
How to revive Federal govt abandoned properties, by experts Real Estate By Chinedum Uwaegbulam and Tunde Alao ITH the shortage of commercial office spaces, and rents hitting the roof in most cities, property experts, especially estate surveyors, architects and structural engineers are calling for resurrection of abandoned Federal Government buildings nationwide through a public private partnership initiative. They said that the properties littered all over the country can be a cash cow for the Government if properly harnessed and professionals are involved in their resuscitation. In fact, the built environment experts recommend that a consortium of professionals should be assembled to take a census of government buildings, unravel the true state of the buildings, and potentials for commercialisation or partial commercialisation. It is known fact that Nigeria property market has continued
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After several years of waiting on the sidelines, professionals have voiced their discontent on the monumental abandonment of real estate resources belonging to the Federal authorities, which is supposed to be a cash cow for government and agencies. They say, the private investors and housing professionals should be offered opportunity to turnaround the prime properties to address recent surge in demand for residential and office spaces to be a safe havens, while cities like Lagos, Kano, Abuja and PorHarcourt have retained the ability to lure both local and foreign investors. According to Knight Frank’s newly released Africa Report 2013, demand for high quality residential and commercial property continues to grow across Africa on the back of the continent’s sustained strong economic growth and rising wealth. It says that Africa’s mega cities like Lagos are increasingly becoming the drivers of its economic growth and, as a result, are attracting growing interest from occupiers, developers and investors. In the office sector, for instance, the report noted that key cities
Collapsed buildings: Engineers seek outsourcing, vetting of structural drawings Page 32
such as Lagos have severe shortages of high quality space built to the specifications expected by international companies. This scarcity of supply has led to extremely high rents in some cities, particularly where there is strong demand for office space from international occupiers from the oil and gas sector. Indeed, prime office rents in Lagos are amongst the highest in the world. The Guardian investigation revealed that some of the buildings owned by the Federal government’s Ministries, Departments and Agencies (MDAs) are lying fallow or under utilised in cities like Lagos, following the formal movement of seat of power to Abuja in 1991, some of the struc-
tures have been abandoned or run- down, leaving several of the floors or sections unoccupied. Among the buildings that have become a source concern to property experts are Federal Mortgage Bank of Nigeria (FMBN) building on Marina Street, Defence building, which got burnt and plans to fully rehabilitate it’s has fallen apart, National Assembly Complex at Tafawa Balewa Square, 37-storey NECOM House on Marina Street and Federal Secretariat building, both structures have been enmeshed in controversy, Glass House located at Okesuna Street, which once housed the Federal Ministry of Works and Housing; the Nigerian National Petroleum Corporation Complex in Ikoyi as well as the
Work begins on Abuja’s N12.8b Promenade estate Page 33
former Supreme Court building – all in Lagos Island. There is also the Navy Headquarters on Marina, which formerly housed the Ministry of Foreign Affairs, the uncompleted17-storey building at Okokomaiko area, off the LagosBadagry Expressway, former NTA building on Awolowo Road, Ikoyi, former head quarters of Federal Ministry of Finance, located at 14, Broad Street, former Printing Press Office, located at 5, Broad Street in Central Lagos Business District. The experts believe that the government should tap into the big prospects in the property market to muscle funds from abandoned real estate assets by inviting the private sector investors through a due process to resuscitate the structures for office or residential purposes, and create job opportunities for professionals in the housing sector. Infact, housing experts say the government have turned blind eye on wealth and resources
that could generate annual income to its coffers. Immediate past president, Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr. Bode Adediji, lamented, “Nigerian has been living in a culture of endemic waste, whether in terms of property, other resources. We have not been prudent in the way we manager asset and resources. The dynamics of properties, in terms of their acquisition, development, utilization and management are beyond, the comprehension and husbandry of the present cadre of civil servants.” Adediji who was part of the team that took preliminary inventory of Federal Government assets during Olusegun Obasanjo administration and further coordinated 50 firms of estate surveyors to value Federal government assets in Lagos, said: “ All this took place ten years ago, subsequent governments have not CONTINUED ON PAGE 39
Architects canvass new options for sustainable Page 47 housing
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Collapsed buildings: Engineers seek outsourcing, vetting of structural drawings Professional Practice By Tunde Alao S desirable as the step by the Lagos State Government in setting up Tribunal of Inquiry into collapsed building in the state can be, structural engineers have said their inputs are very pivotal to stopping the menace common in the metropolis. Coming under the Nigerian Institution of Structural Engineers (NIStructE), the professionals said if meaningful results could be attained, it was high-time for the state government to started outsourcing the processes of checking the structural engineering calculations, drawings and specifications submitted for approval by developers in the state to them for vetting. According to NIStructE’s president, Mr. Busola Awojobi, said this is imperative, as it is being done in the developed clime. In the institution’s 18-page memorandum, jointly submitted by the members of the institution, Dr. Busola Awojobi and Dr. Isaac Akiije titled: “Use Corporate Structural Engineers to Curb Incidences of Collapsed Buildings”, highlighted some measures that are considered germane to stem the ugly trend of building collapse. “To corroborate the opinions expressed by other professionals in the built-environment, structural engineers are hereby proposing solu-
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Rubbles of the building that collapsed at Ebute Metta, Lagos, last week
Following the shortage of qualified and competent professionals in the state’s Ministry of Physical Planning and Urban Development, structural engineers are suggesting retraining of civil and structural engineers to improve their competency and efficiency as well as involvement of those in private practice in vetting of drawings tions to the well-known problem of shortage of qualified and competent professionals, particularly the overwhelmed civil engineers currently working in the state’s Ministry of Physical Planning and Urban Development”. The institution also offered to train the ministry’s civil and structural engineers and those in other state govern-
ment ministries in order to improve their competency and efficiency. The training, they said, if approved may also be extended to the local government civil engineers and technical staff. NISstrucT’s reaction was as a result of the outcome of the stakeholders’ meeting organised by the members of the
Tribunal of Inquiry into collapsed building in the state inaugurated by Governor Babatunde Fashola of Lagos State recently, with an appeal to Lagos residents to report to the government any building, which they suspect to be unsafe or whose structural integrity is in doubt. Structural engineers were of the opinion that during the
three months within which members of the tribunal are to enquire into the causes of collapsed buildings in the Lagos, especially, the recent incidents and look into the quality of building materials and building methods employed, their inputs would be of immense value. “Besides, part of the committee’s mandate to inspect existing buildings and housing estates in the state and make recommendations on measures to prevent reoccurrence of building collapse is equally of great necessity. To advise on roles by person(s) involved
in the construction of such collapsed buildings and into the question of whether or not they have acted professionally and if not to recommend appropriate legal sanction and to recommend other measures necessary to prevent further building collapses in the state are all in good faith, but involvement of structural engineers would help in solving the problem”. In his remarks during the ceremony, Governor Fashola advocated for community action, noting that, “It is time for community action. Any building that you suspect to be unsafe, whose structural integrity is in question, come out and say something, write to us, complain to me, complain to the Commissioner, complain to any public officer that you know. We will act, we will check and we will respond”, he said. The Governor also appealed to citizens not to risk their lives as a result of pressures of accommodation, pointing out that it would serve no good purpose for anyone to go into a building that would later turn into a mass grave for the residents. “Over the years, building collapse has been an incident that has challenged our capacity to protect life and property. It has been an environment of mixed blessings”, the Governor said, adding that cases of loss of life, especially resulting from building collapse, have always been a cause for deep sorrow within the government because it is avoidable.
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Prime Estates Work begins on Abuja’s N12.8b Promenade estate Projects By Tosin Fodeke N Abuja-based property development firm, Urban Shelter in partnership with the Kano State government, has begun a housing project, which will provide 600 residential units at the Lokogoma area of the Federal Capital Territory (FCT). The project, tagged Promenade estate, will cost about N12.8 billion and consists of residential estate including one-bedroom flats to five bedroom duplexes in eighth quadrants across a 200,000 square metre land. The estate, in addition to the residential accommodation makes provision for a commercial spaces. Officials of the firm explained to The Guardian that the estate offers flexible and functional designs, which are key components in its architectural layout. They also stated that the housing project would go a long way in providing shelter and consolidating efforts in job creation and poverty alleviation. They stated: “Space and energy efficiency, public space integration, excellent landscaping as well as functional overall plan are prevalent. The design is purposely modern in keeping with Nigeria’s changing and more sophisti-
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Illustration of the proposed Promenade estate, Abuja cated tastes, while keeping on various efficient construcsynergy of the natural envi- tion systems” ronment and also capitalizing The ninth quadrant, called
the Square provides versatile retail, work/sports and play areas. The centralized yet
open plan communal ground allows for shopping neighborhood green creation areas
and formal office space blending a friendly setting to meet family needs.
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Safetrust targets N2.5b shareholders’ fund Mortgage Finance NE of the nation’s priO mary mortgage banks (PMBs), Safetrust Savings and Loans Limited has moved to raise its current shareholders fund from N2.016 billion to N2.566 billion. The new fund is in conformity with the Central Bank of Nigeria (CBN) directive that all PMBs must recapitalize to N2.5billion for State Operating License or N5billion for the National License. The bank is seeking to increase its shareholders’ fund to operate the State license. The Executive Director of the Bank, Mr. Akintayo Oloko also announced at the Annual general Meeting (AgM), the Bank’s offering to existing shareholders by way of rights issue, one unit of additional shares to two units of existing shareholdings. The bank is issuing additional 550 million share units at N1.00 per share. The right issue ends on July 31, 2013. recently, the bank declared a Profit After Tax of N404, 260,000 for the year ended December 31, 2012. This figure represents a 244.17 percent increase as against the figures achieved for 2011, which stood at N117, 458,000. The declaration was made in a statement issued by the Managing Director, Mr. Yinka Adeola at the AgM of the PMI held recently. Another significant achievement made by the PMI was a vast increase of the Earnings per share from 11kobo in 2011 to 38kobo in 2012, which indicates that the PMI’s Brand is attractive to investors. Another significant high-
light of the Bank’s activities for the year 2012 financial was the approval of the International Financial reporting Standards (IFrS) Audited Financial Statement for the period ended 31st December 2012. The Bank’s 2012-year end financial Statement also witnessed an increase in the Bank transfers to general reserve by 44.70 percent from N179, 752,000 in 2011 to N260, 064,000 in 2012. The Bank’s shareholders’ fund also increased by 19 percent from N1, 694,879 in 2011 to N2, 016,933 in 2012. The CBN’s approval of the accounts was obtained on the 17th of May 2013. Safetrust, which was incorporated in 1993, and managed by a nine-man board of directors with Mr. Akin Opeodu as Chairman. Chairman of Trustbond Mortgage Bank Plc, Etigwe Uwa (left), Managing Director, Mr. Adeniyi Akinlusi and Company Secretary, Mark Okoye during the unveiling of the bank’s new identity in Lagos, last week PHOTO: SUNDAY AKINLOLU
IHSL becomes Trustbond Mortgage, unveils new identity Mortgage Finance MArTINg from a successSIntercontinental ful acquisition of Homes Savings and Loans Plc (IHSL), the new core investor group known as Interrec has finally changed the name of the Primary Mortgage Bank (PMB) to Trustbond Mortgage Bank Plc and also unveiled a new corporate identity. Interrec had acquired Access Bank's 51.88 per cents shares in IHSL, in line with regulatory directives to banks to divest from subsidiaries. This the second time, Intercontinental Homes is undergoing restructuring exercise. In June 2003, Partnership Savings and Loans Limited (PSL) was acquired by gateway Bank
Plc and later through mergers and acquisitions became a subsidiary of Intercontinental Bank Plc. Chairman of Trustbond Mortgage, Etigwe Uwa explained that a fundamental provision of the share sale and purchase agreement is that IHSL would change it's name not later than six months after the completion of the agreement. “The core management of the bank has not changed significantly.This is the same management team which creditably run the affairs of
the bank from the inception and grown it's shareholders fund from N106 million to N4.7 billion today in six years; inspite of the upheavals and challenges it faced in the wake of the banking reforms of 2009, which affected it's parent company adversely ," he said. Uwa disclosed that the new ownership and management of the bank is poised to continue to nurture and retain the trust of customers, shareholders and regulators. "Preserving your trust is our bond."
He said that the shareholders has endorsed plans to increase the share capital of the bank from N10billion and the first phase of the process will be through private placements. About N1 billion is targeted for in the first stage of the placement. The Managing Director, Trustbond Mortgage, Mr. Adeniyi Akinlusi said the bank have put in place requisite products, structures, systems and people to deliver qualitative service to enable Nigerian actualize their aspirations of home ownership.
Among the products are HomePlan Account, which is designed to enable customers save towards owning their own home by saving periodically over a period of time to qualify for a loan. The loan can be used to buy a piece of land or built-up property or to finance building construction. Another product, Akinlusi presented at the media forum is i-Home account that allows Corporates satisfy collective employee housing needs without undue administrative and interest expens-
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Lagos gets procurement journal, website Contracts By Tunde Alao O ensure vendors of good and services take advantage of its procurement process, the Lagos State office of Public Procurement Agency (PPA) has introduced an in-house journal and website. Apart from creating general awareness about the agency, the new journal and website would equally enhance transparency, efficiency, accountability and value for money in the area of public procurement and asset disposal. Governor Babatunde Raji
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Fashola, who spoke at the formal launching of the Procurement Journal and activation of the website held at the Adeyemi Bero Auditorium Alausa Ikeja, urged the public to buy into the initiative. Fashola, represented by the Commissioner for Science and Technology, Mr. Adebiyi Mabadeje, said the Lagos State Public Procurement Law, 2011, was enacted as part of a broad public sector reform process undertaken by the administration to improve efficiency in the conduct of Government business and delivery of service to the cit-
izenry. He said: “Procurement Journal is a one – stop- shop which will advertise contract opportunities by the publication of Invitation for Bids and Expressions of Interest for contracts within the open competitive threshold. He noted, adding that “the details of contracts awarded by government will also be published periodically in the Journal, making the whole system much more transparent”. He also noted that the MDAS have the responsibility to comply with the relevant provisions of the law with respect to disclosing all necessary information required to enhance competitive bidding while urging the new crop of procurement officers to live up to
expectation by upholding the strict code of conduct for their profession. Earlier, the agency’s General Manager, Mr. Akin Onimole, an engineer, stated that the public procurement reform is a fundamental aspect of the State’s Governance and Public Finance Management Reform System. The objectives, amongst others, include: the application of fair, competitive, value for money standards and practices, for procurement and disposal of public assets and services; and the creation of opportunities for the citizenry, particularly small and medium scale enterprises to participate in the economic opportunities and benefits of public procurement.
Global Homes plans London summit Housing T E R N A T I O N A L INHomes/property magazine
has announced plans to stage a summit in London to boost opportunities in the housing and other sectors of the economy. The Minister of Lands Housing Urban and Development, Ms Amal pepple will be leading some delegation in the housing sector while Executive Secretary And Chief Executive Officer, Nigeria Investment Promotion Commission, Mustafa Bello will also be in attendance. Packaged by Global Homes Magazine, the event, tagged, “ Investment Opportunity” is presenting an incredible series of participants –a fusion of brilliant professionals ,experience and knowledgeable participants. Accordingly, the planed summit is billed to be held at the London Stock Exchange Headquarters in September. The plans for this summit were unveiled to the media, stakeholders and global homes magazine readers at an exclusive press conference in Lagos recently. Speaking at the media event, publisher and editorin- chief, Global Homes Magazine, Roni Akins said the primary objective of the event is to create awareness and investment opportunities for companies and organizations both in Nigeria and the United Kingdom in the areas of housing. On this historic day, bridges will be built across housing, finance, trade and investment divides as participants will also meet and discuss with organizations such as yours on the various investment opportunities that may be available to them, especially with a series of key speeches, interactive breakout seasons and networking breaks, at the end of which the event would have empowered delegates with the knowledge and required tools to make the necessary strategic investment decisions. She stated that initial survey of the Nigerian market conducted revealed showed some companies may be able and willing to access available capital from the market, but unfortunately, due to a plethora of reasons including limited information they are unable to take the required strategic decisions that may assist them in achieving these desires.
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Why we embarked on urban renewal in nine cities, by Aregbesola Urban Development From Tunji Omofoye, Osogbo SUN authorities last week explained the reasons behind its partnership with the United Nations Human Settlement Programme (UNHABITAT) for structure plans in the state. State Governor, Rauf Aregbeola said that scheme is part of his urban renewal policy, which is hinged on the conviction that the socio-economic transfor-
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RELAN urges govt to abrogate Land Use Act Housing EEN as one of the clogs in the SEstate wheel of development, Real Lawyers Association of Nigeria (RELAN) has called on President Goodluck Jonathan to expedite action on the abrogation of the Land Use Act of 1978. RELAN in a statement last week was reacting to Jonathan’s speech in Abuja during a day summit organised by the RockeFeller Foundation as part of its centenary celebration. The theme was ‘’Realizing the potential of Agriculture in Africa”. According to the property lawyers, the president’s towards reviewing the constitution should be commended but priority should be given to the Land Use Act. RELAN’s Vice-President (Operations) Mr. Adekunle Omotola noted that the Federal Government’s commitment was in line with the view of his association during its first National Summit on Land Use Act in Abuja in 2009 and the recent one in Lagos in June this year. Omotola observed that, “RELAN was not unaware that to remove the Land Use Act, it must conform with section 9 of the 1999 Constitution of the Federal Republic of Nigeria as amended. “We are also aware that the plenary session of the Senate and the House of Representatives are currently debating the report of Senator Ike Ekeremadu and Emeka Ihedioha led committees on the amendment of the constitution”. He added that, “We are gratified that for President Jonathan to have publicly declared that the Land Use Act will be removed is a right step in the right direction.“ Omotola further said that Indeed, President Goodluck Jonathan’s commitment is a continuation of the concrete step taken by his immediate predecessor in office, Late President Umaru Musa Yar’Adua who forwarded a bill to the National Assembly for amendment of some sections of the Act in 2009. “ It is our view that a practical approach by the government to remove the Act is to ensure that the Act wears a human face and to be consistence with democratic norms and ideals.” RELAN therefore urged “the Federal Government to liaise with the National Assembly, the Governors and the State Houses of Assembly with a view to facilitate the removal of the Land Use Act from the constitution, because by so doing the government must have achieved one of its aims to make Vision 2020 a reality”.
mation of Osun can only thrive in an orderly and well-managed environment. Speaking at the at the official kick-off of city consultation on structure plans for nine cities in Osun, held in Ereja square in Ilesa last week, he stressed that the city consultation programme is designed to carry people along in formulating and implementing government policies. According to him, “This participatory and inclusive approach to governance has been a major source of our strength thus far. To this end, for the past seven months, we have been working with seasoned professionals in the building industry to identify the critical issues and fashion out implementation strategies towards an effective management of these cities.” The governor told the audience”.
Aregbesola pointed out that urbanisation, which signposts uneven socio-economic developments, comes with a plethora of peculiar challenges to healthy living and habitation. He added that before the inception of his administration, physical planning in the state was not accorded the required attention, noting that developmental projects occurred by happenstance. His words, “A lot of people put up buildings without obtaining approval for their plans. Many of those who obtained approval do not follow it. Many others build in non-designated area. Others modify illegally while others convert residential areas into business premises without the supporting infrastructure. “Others encroach on road setbacks to put up kiosks, containers or even outright
building, in flagrant violation of regulations. These abuses make our environment look uniform in ugliness, without pattern or rhyme,” he said. Aregbesola held that the cities to be affected by the urban renewal projects are nine cities in the state, which includes: Osogbo, Ilesa, Ile-Ife, Ikire, Ejigbo, Ede, Iwo, Ikirun and IlaOrangun. He noted that, “For a start, the O’Renewal exercise covers a kilometre radius from the Oba’s Palace, regarded as the centre of town in each city. In Osogbo it will cover a radius of two kilometres. With the huge physical and social development projects going on across the State, Osun will in the near future become a modern city of note in the SouthWest Region.” The UNHABITAT Country Manager, Mallam Kabir Yari, said the programme
looks into the future up to 2034 (a 20-year plan), which will develop the cities in the same standard that can be found in any city of the world. The UNHABITAT representative said the programme is based and implemented through what is termed Rapid Urban Sustainability System. He added that the system would curb proliferation of slums and promote sustainable livelihood. Speaking earlier, the Commissioner for Land and Physical Planning, Mr. Muyiwa Ige, in his remark commended the effort of the government and the cooperation received from the UN HABITAT. Ige said since the beginning of the programme in August 2012, cities in the state have been wearing new look. He disclosed that the UN HABITAT consultant architects are putting finishing
touches on the master plan of the nine cities that the programme captures. He noted that the plan being drawn by the UN HABITAT is a vision looking into 20 years development. “For the development to be realised, the people affected in the development must be consulted and allowed to contribute to the final plan. This is why government is organising the stakeholders’ forum in the towns to undergo renewal,” Ige said. In his own remark, the Executive Secretary of Ilesha West Local Government, Alhaji Adesiji Isa Azeez, thanked the government for the inclusion of Ilesa in the urban renewal programme. He said development should be the ultimate in the agenda of the people and so they must be prepared to make sacrifices for the success of the programme.
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HOMES&PROPERTY
Experts seek consortium of professionals to investigate govt assets CONTINUED FROM PAGE 31 attempted any comprehensive postmortem to unravel the degree of success and challenges that has attended to that unprecedented asset and management disposal programme of the Obasanjo regime.” He advocated that Government should set up a consortium of built environment professionals to investigate of the remaining assets belonging to federal Government, parastatals and to ascertain current structural state and degree of their utilization, bearing in mind that the bulk of it’s users have long ago gotten bigger offices, especially in Abuja, what are the potentials inherent in these properties - their lettability or outright disposal. Mr. Akin Olawore, an estate surveyor and valuer, described the seeming abandonment of the buildings as “ Investment Sink” as they have become incapable of generate wealth. Olawore who is the Executive Director, African Real Estate Society, advised that they should be sold to investors for commercial purposes. “The properties may be sold to the interested developers, or in the alternative, entered into partnership with private developers in form of partnership, while land would be government’s equity. In this instance, the properties may be redeveloped, either as office accommodation or residential accommodation”, advised Olawore. The African President, International Real Estate Federation (FIABCI), Mr. Chudi Ubosi, traced the problem to lack of continuity in government policies, and “how we waste our resources.” He collab-
orated Olawore views: “The government should determine that the properties are no longer relevant to their needs, plans and policies, thereafter, these properties should be sold or leased out to interested parties who may want to use them for other purposes commercial or social.” Olawore also noted that because of centrality of their proximity to Ikoyi, Victoria Island and the Mainland, the buildings would be useful for the development as Downtown Residential Apartments, adding that these apartments may not necessarily be large, but comfortable enough to accommodate working class groups in the axis. However, he was pessimistic of the workability of the suggestion, saying that two things must be on ground: political will and legal framework that can guarantee investors fund. “Most of the problem in this clime is the lack of political will. Immediately there is changes in administration, agreement will change, thus stalling the progress of the project and investors’ funds would be in jeopardy”, he said, citing the example of the Defence Building where some investors had made move, but the project stopped abruptly. Former President, Nigerian Institution of Structural Engineer (NIStructE), Dr. Victor Oyenuga, was also of the view that continued abandonment of the buildings may not only deprive the Federal government of huge revenue earnings, but would also subject the properties to decay. “Non-usage of the buildings is not only a loss to the Federal government, but there is all possibility of getting dilapidated,
hence, resulting to structural defect. This in return would affect the revenue that would have accrued to the government if converted into profitable usage”. Oyenuga, while likened the current state of those buildings to an abandoned vehicle, said such vehicle after being left unused for long would be malfunctioning one way or the other. “So, it would be proper if something reasonable is done to them to avoid their total collapse”. But Mrs. Bisi Olumide of the Department of Architecture, University of Lagos, suggested that the old Federal printing press, old Federal secretariat and the health inspectorate building and a few others should be preserved. According to Olumide, “beyond their economic value, it is essential that we preserve our architectural heritage,” and recalled that the incidents of the past have contributed to where we are today as a people. She noted that although, the current trend is to demolish old buildings, especially when such structures are in prime areas, believing that virtually, everywhere in Lagos Island is a prime area. “We must not forget the value of history”, she said, adding that “it is for this reason that a comprehensive restoration should be launched for these buildings and other similar components of our architectural history for the purpose of acknowledging our growth as a nation.” She recommended that these buildings should be converted to museums, libraries, exhibition centre that could be enjoyed by Nigerians of all ages.
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SPECIAL FOCUS ON PROLIFIC MORTGAGE INSTITUTIONS IN NIGERIA – PART ONE The establishment of the Federal Mortgage Bank of Nigeria (FMBN) and the subsequent promulgation of the Mortgage Institution Decree which provided a framework for the establishment of Primary Mortgage Institutions by the private sector has gone a long way at providing affordable housing for many Nigerians though there is still a huge deficit in the provision of affordable housing across the country. The penetration of the industry by the private sector no doubt has been a blessing. This has become evident in the improvement of the mortgage banking sector as it continues to provide opportunities for current and potential players with the FMBN championing this cause. However, the industry is yet to contribute any significant quota to the Gross Domestic Product of the country which explains the various challenges surrounding the growth of the industry. In this report, experts in the industry have helped to shed light on these challenges and the way forward.
CORPORATE GOVERNANCE AND FUNDING BANE OF THE MORTGAGE INDUSTRY Mr. Jude Nwachukwu, Managing Director/CEO, Mortgages PHB Limited ORTGAGES PHB Limited, M one of the foremost private Primary Mortgage Institutions (PMIs) in Nigeria, commenced operations in 1993 and has been relevant in the Mortgage banking sector for over 20 years. Mortgages PHB Ltd (formerly Finacorp Building Society Ltd) was set up primarily to provide retail mortgage banking services to Nigerians from all walks of life. In spite of various industry challenges over the years, the bank has continued doggedly, contributing its quota and remaining highly relevant in the sector with record accomplishments in core and ancillary businesses. In a recent chat with The Guardian Newspapers, its Managing Director/CEO, Mr. Jude Nwachukwu took on some of the challenges facing the sector. Citing instances of neglect and poor regulatory policies,
he noted that most PMIs have spent more time either filing or responding to litigations by customers who hide behind weak lending policies and our slow judicial process to avoid paying back the loans for which they duly received offers and signed ac-
ceptance.Most PMIs are low in funding and have depended mostly on short term deposit funds for lending resulting in mismatch of funds. Mortgage lending by its capital intensive nature need proper and stable funding. Without mincing words, the
National Housing Fund (NHF) needs to function better than it had done in past years by facilitating housing delivery to contributors. The overriding objective of establishing the Fund is far from being achieved. Mention has to be made of the pivotal role the Central Bank of Nigeria is playing by its re-positioning of the PMIs through recent reforms, purposeful supervision and installation of a regime of responsible corporate governance. The National Housing Fund managed by the FMBN has failed to achieve its objective with homeownership in Nigeria standing at 10% or less compared with 82% in US, 78% in UK, 60% in China, 54% in Korea and 92% in Singapore. Mortgages PHB limited has thrived and made considerable impact where many have fallen by the way. The PMI ranks among the foremost in terms of its modest contributions to housing in Nigeria. These include the provision of fresh mortgage finance and re-financing facilities to Nigerians, access to NHF loans for on-lending to qualified banking public, direct and indirect funding of small estate developments, rent assistance to needy Nigerians with visible means of livelihood, funding of land acquisition for qualified customers, mortgage administration/guarantee schemes, etc. Our clientele base speaks volumes in this respect. Prior to the recent mortgage sector reforms, we made our mark in both commercial and private buildings - assisting to buy, build or renovate. We have played large in the National Housing Scheme since inception and have contributed our quota in direct mortgages investing in estates, markets and landed property. The mortgage banking industry in Nigeria has suffered great setbacks mostly in corporate governance and funding. Chiefly there has been a dearth of funding, details of which have earlier been touched. There is no place in the world where short term depositors’funds are used for mortgage lending which by its nature is long term. In part, the costs of funds which often come in double digits have had its adverse multiplier effects on mortgage lending as well as the performance of mortgage assets. The Government of Nigeria can help fast track the growth of the Mortgage industry by addressing the twin issues of poor funding and corporate governance in the sector. It must explore greater variety CONTINUED ON PAGE 43
AT INFINITY HOMES WE GIVE THE MENTALITY OF HOUSE OWNERSHIP Mr. Obaleye Olabanjo, Managing Director, Infinity Trust Mortgage Bank Plc INCE coming into the mortSInfinity gage industry in 2002, Trust Mortgage Bank Plc has become one of the leading mortgage institutions in Nigeria owing to its consistency in increasing returns on investment and the provision of modern housing at affordable rates while not reneging on the discharge of its social and corporate responsibilities. In a chat with the Managing Director, Mr. Obaleye Olabanjo, he disclosed that the Nigerian mortgage industry is far from where it ought to be having contributed less than 5 percent to the country’s GDP. He stressed on the need for the federal government to focus more on the housing sector as it does not only provide shelter for the citizenry but also a viable means of revenue generation and job creation. “Most of what we have around are future slums because they lack basic infrastructural facilities. Imagine a housing area with poor drainage, no road network, no refuse disposal system and no water supply; it will definitely become a slum in a matter of time. This is why there is need for active government participation in the industry. I commend the Minister of Finance, Dr. Ngozi Okonjo-Iweala for her efforts at developing the mortgage industry but there is still a lot to be done”, he emphasized. On how to bridge the huge gap in the demand and supply for housing in the country, Olabanjo explained that there is no country in the world that has reached equilibrium in this regard which is why there is deficit in housing all over the world. However, he explained that there is no concrete structure on ground for the mortgage industry to thrive in terms of funding. “The housing deficit in Nigeria is alarming because we don’t have the enabling structures
on ground. It took my father 15 years to build his house, but now we are saying that people should be able to get their own house within a year or even a month. Aside the National Housing Fund being managed by FMBN which is relatively low, we cannot do anything without going through the commercial banks which costs more and at this stage we should be having access to funds lower than the market rates. There will continue to be an imbalance except the policy makers put in place the right structures”, he stressed. He commended the FMBN for its management of the National Housing Fund and called on all stakeholders to give them more encouragement. According to him, “The NHF is a loveable platform for mortgage development but I will say things has practically improved since the new management at FMBN came on board, though the activities of FMBN is overwhelmed by the capacity of the market which makes it appear as if they are doing nothing because what they are doing is like a drop in the ocean compared with the huge housing deficit in the country. What is the capital base of FMBN? How many employers are contributing as and when due? To the best of my knowledge, FMBN is doing their best in accordance with the funds available to them, so they need to be more encouraged and more empowered to do more by recapitalizing them and giving them access to the secondary market.” It is no gainsaying that Infinity Mortgage has been living up to its vision of creating endless opportunities for house ownership in Nigeria having made thousands of Nigerians proud house owners since its inception in the mortgage industry in the last CONTINUED ON PAGE 43
THE GUARDIAN, Monday, July 15, 2013
43
SPECIAL FOCUS ON PROLIFIC MORTGAGE INSTITUTIONS IN NIGERIA – PART ONE
PROMOTING FOREIGN INVESTMENT IN HOUSING DEVELOPMENT
INFINITY TRUST MORTGAGE BANK PLC AUDITOR’S REPORT TO THE MEMBERS OF INFINITY TRUST MORTGAGE BANK PLC
ABRIDGED FINANCIAL STATEMENT STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER, 2012 2012
2011
=N=
=N=
Mr. Gimba Ya’u Kumo, Managing Director, Federal Mortgage Bank of
ASSETS
STABLISHED as a joint venE ture of the Commonwealth
Cash And Short Term Funds 1,248,317,168
2,612,435,849
Investments
1,204,790,600
371,796,000
Loan and Advances
688,361,842
701,817,043
Deferred Tax
96,040,321
38,753,395
Other Assets
105,755,151
134,251,059
Development Corporation, the Federal and Eastern Governments of Nigeria then known as the Nigeria Building Society, today, the Federal Mortgage Bank of Nigeria, FMBN, which is the apex mortgage institution in Nigeria has continued to champion the cause of affordable house ownership in the country and the development of a robust mortgage finance system for the country. Though there is still a huge deficit in the housing supply which no doubt informed President Goodluck Jonathan’s decision to recognise the provision of affordable housing in his transformation agenda as a strategy towards improving the wellbeing and productivity of the citizenry. To this effect, the FMBN has recorded positive turnaround in its business focus of providing affordable mortgage finance to low and medium income earners, increased national housing stock for mortgage-able assets, effective management of the National Housing Fund (NHF) and the expansion of mortgage finance to the informal sector. Under the leadership of Mr. Gimba Ya’u Kumo, the FMBN has been able to attract several international investors to help develop the Nigerian mortgage industry. One of such is Shelter Afrique which is extending a $100 million credit facility to support housing development in the country. Through this initiative, Shelter Afrique is providing a single digit loan of $50 to FMBN with a view to increasing the national housing stock and also provide affordable mortgage finance to Nigerians. The partnership recently provided an off-taker guarantee to some PMIs for a $10million long term credit facility for affordable housing finance.
Property, Plant & Equipment 2,288,205,239 5,631,470,321
LIABILITIES
Furthermore, the FMBN is also partnering with China Export and Credit Insurance Corporation (SINOSURE) and International Commercial Bank of China (ICBC). Under this partnership, SINOSURE is providing a single digit loan facility of $6 billion for housing development in Nigeria. The loan shall be given directly to chinese construction firms on instalmental basis of $1.5 billion, who are to build the houses under the supervision of FMBN. The FMBN shall also be responsible for creating mortgages over the housing units, collect mortgage repayments and use the proceeds of the repayment to pay back the loan over the tenure of the facility. Committed to revolutionalizing the housing sector by translating the National Housing Policy and the National Urban Development Policy into a roadmap for housing development in the country, FMBN has established a Joint Technical Committee (JTC) with the Nigeria Employers’ Consultative Association (NECA), Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to work out modalities for housing delivery to Nigerian workers.
The committee recommends the FMBN and NLC/TUC to drive the process of requesting state governments to provide five hectares of land and infrastructure for pilot housing scheme in each state. It also recommends the CBN to compel banks and insurance companies to comply with provisions of the NHF act while calling on the Federal Government to facilitate the utilization of investible pension funds in housing development. As part of the various innovations and strategies put in place to further develop the mortgage industry, the bank has introduced an NHF eCollection platform to capture NHF contributions by leveraging on I.T infrastructure of 23 commercial banks for seamless remittance of NHF deductions to FMBN. The development of the e-collection platform has commenced with a pilot scheme covering MDAs in the FCT. The bank has also made it possible for Nigerians in diaspora to participate in the NHF scheme by making their monthly contributions to the NHF scheme through which overseas contributors can take mortgage loans through PMIs to finance loans of their choice.
AT INFINITY HOMES WE GIVE THE MENTALITY OF HOUSE OWNERSHIP CONTINUED FROM PAGE 42 decade. “We have contributed significantly in the housing sector not by direct construction because we are not developers but in funding developers and in doing this you have to be very careful because there are quite a number of quarks out there and that is why there are so many abandoned projects all over the place. We have made many Nigerians house owners and we have been consistent in paying dividends to our shareholders. If you are not making profit, you won’t be able to pay dividends. Right now we are on the verge of being listed on the capital market because we want more people to partner with us.” He continued, “I am proud to say that there is no graduate who has spent five years in
2,305,900,131 6,164,953,477
this company that is not a house owner because we believe charity should begin at home. If we are providing affordable housing for the public, our staff should equally benefit from it. At Infinity Mortgage we give the mental-
ity of house ownership rather than remaining a tenant. There is nothing wrong if 70 per cent of Nigerians have their own house, it is very possible and that is why everybody must invest in housing”, he advised.
CORPORATE GOVERNANCE AND FUNDING BANE OF THE MORTGAGE INDUSTRY CONTINUED FROM PAGE 42 of funds to access and ways to access them without allowing personal interests to impede the process. Policies and regulatory approaches must be adopted to deal with limited funding and ensure that when these funds are made available the right persons
are available to manage the portfolio. Pension funds both in the private and public sectors of the economy have great potential if made available to the mortgage subsector. Additionally, Government can attract lowcost funds from foreign investors and donor agencies that could be applied to housing provision.
Deposit & Other Accts
482,790,062
2,147,892,947
Taxation
48,663,486
48,865,569
Other Liabilities
526,368,197 1,057,821,745
567,024,349 2,763,782,865
NET ASSETS
4,573,648,576
3,401,170,612
CAPITAL & RESERVES
=N=
=N=
10,000,000,000 ordinary Shares @ 50K Each
5,000,000,000 2,000,000,000
3,467,289,720 ordinary Shares @ 50K each
1,733,644,860
1,500,000,000
Share Premium
841,528,140
627,675,000
Deposit For Share
752,167,120
500,000,000
Statutory Reserve
272,775,565
169,371,115
Reserves
973,532,891 4,573,648,576
604,124,497 3,401,170,612
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER, 2012 2012
2011
=N=
=N=
Gross Earning
887,656,979
499,751,276
Income Before Tax
565,685,737
215,895,712
Taxation
(48,663,486)
(34,382,465)
Comprehensive IncomeNet Tax
517,022,251
181,513,247
Transfer to Statutoryreserve
(103,404,450)
(36,302,649)
Dividend Paid Retained Earnings
(81,680,091) 331,936,840
(17,106,448) 128,104,150
We have audited the accompanying financial statement of Infinity Trust Mortgage Bank Plc set out on pages 16 to 38 which comprise the statement of financial position as at 31 December 2012, the income statement, and statement of cash flows for the year then ended and a summary of significant accounting policies and other financial information. Directors’ Responsibility for the Financial Statements The Directors are responsible for the preparation and fair presentation of these financial statements in accordance with the Companies and Allied Matters Act, CAP C20 LFN 2004, and the banks and other relevant F i n a n c i a l Institutions Act, and for such internal control as the Directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. AUDITOR’S RESPONSIBILITY Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on auditing. Those standards require that we comply with ethical requirements and plan and performed the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosure in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risk of the material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in other to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also include evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statement present fairly, in all material aspects, the financial position of Infinity Trust Mortgage Plc as at 31 December 2012, and of its financial performance and cash flows for the year ended. Infinity Trust Mortgage kept proper books of account, which are in agreement with the statement of financial position and income, statement, in the manner required by the Companies and Allied Matters Act, CAP C20 LFN 2004, and in accordance with the Statements of Accounting Standards issued by the Financial Reporting Council of Nigeria. Report on Compliance with Banking Regulations Our examination of loans and advances was carried out in accordance with the prudential guidelines for licensed mortgage banks issued by the central Bank of N i g e r i a . In accordance with circular BSD/1/2004 issued by Central Bank of Nigeria, details of related party transactions are disclosed in the notes to the financial statements. Going Concern Based on the representation made by the directors regarding recapitalization, made injection of further funds; we are of the opinion that the “going” concern of the bank is not impaired. Contraventions No contravention of the provision of the Banks and other Financial Institutions Act, CAP B3 LFN 2004 and circulars of Central Bank of Nigeria was brought to our notice during the year ended 31 December, 2012.
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HOMES & PROPERTY 45
THE GUARDIAN, Monday, July 15, 2013
Olumegbon family seeks I.G’s intervention as controversy trails Ajah land Land Matters By Emmanuel Badejo HIRTEEN years after the Supreme Court of Nigeria resolved a fierce legal battle over a fast developing settlement in Ajah, Lagos, controversy still rages on and consequently, one of the factions led by the Olumegbon of Ajah, Chief Fatai Lawal, is calling for justice and intervention by the police high command to restore permanent peace in his domain. The call, according to him, became imperative following a recent disruption of peace and tranquility of the choice community, which presently hosts the high and mighty in the country. Struggle for the soul of the area is locked within three families – the Olumegbon, Ogunsemo, and Ojupon. While the courts have endorsed the former as the overlord of the community, the Ojupon branch has rejected the verdict and this has consistently resulted to fracas during which lives, properties are regularly lost. In his reaction to the last dispute, which reports said left no fewer than six youths dead, Lawal, who was dissatisfied with the manner the neighboring police posts handled the lingering crisis, and therefore asked that the Inspector General of Police (IGP) to wade in. “We call on the Inspector General of Police to use his good office to investigate where did the bullets that were used in killing our people emanated from by ordering an autopsy of the deceased and carry out a full investigation on the matter so as to enable peace reign in our community.” Also speaking with The Guardian, spokesman for the Olumegbon family, Mr. Peter Fowoye, said there has been a lot of misconception around repeated controversy over Ajah land and as such that many have been to believe that the Olumegbon family has been the source, a claim, which he bluntly denied, saying the family had complied with all the obligations placed on it either by the court or the board of inquiry set up by the Lagos State Government. Fowoye who said by a judgment of the Supreme Court the Olumegbon family owns Ajah and Okun-Ajah land, wondered why the same family would be disrupting the peace of the fast developing community. But the Chief Executive Officer of Kaz Oil, Alhaji Kazeem
T
Controversy has continued to rage among parties claiming ownership right to a vast landed property in a sprawling settlement, known as Ajah, located along Lekki-Epe expressway in Lagos State. Salami, denied the claim that the Olumegbon family owns the land. “I have no business with Chief Fatai Olumegbon because we do not have anything in common. I am into oil and he is busy selling land that does not belong to him or his family. Salami, a chieftain in the Ojupon clan, said his family was not part of those Olumegbon sued, adding that even the judgment being touted is still subject to litigation as on Rev. (Evg.) Olatunde Ayotunde Alase is presently challenging the verdict. He added that those sued as defendants in the said suit did not have the power of attorney to represent his family or that of the Ogunsemo. In March 2003, an Ikeja High Court affirmed that the Olumegbon of Lagos, Chief Fatai Lawal Olumegbon, was the overlord of Ajah and dismissed the claim by the Ajiwe family, which settled on a porion of a 23.43 hectares of land located in Eti-Osa Local Government Area of the state. This was part of the terms of settlement reached among the parties including, the then Olumegbon of Lagos Chief Lamidi Yesufu Kalefo and Chief S.S. Ola Abereoje (for themselves and on behalf of Odugbese Abereoje and Olumegbon Chieftaincy families against Amida Adedeji Kareem, who was substituted for the late bale of Ajah-Ile, Chief Sulu Tijani Ojupon, latunji Apelehin Ojupon and Alhaji Sule Ogunsemo. The terms of settlement is as follow: “That various actions pending before the court and/or elsewhere in Lagos between both parties over the land situate and being at Aja in eti Osa Local Government Area of Lagos State, Nigeria be withdrawn and be finally discontinued. “That Ojupon and Ogunsemo families of Aja recognise and accept the Olumegbon Chieftaincy as represented by Chief Olumegbon of Lagos as overlord of the said Aja as reflected in the judgments in suit Nos. (a) 97/1896 – Chief
Ajah, Lagos recently Olumegbon Vs. Chief Ojomu and (b) 1/302/55 – Oba Onibeju Vs. Salumonu Oyebola. “That the Ojupon and the Ogunsemo families shall disclose to the Olumegbon Chieftaincy whatever area of the land at Aja has actually been sold or leased to any third party and correct amount collected in each case. “That the Ojupon and the Ogunsemo families shall disclose to the Olumegbon chieftaincy family the area of land at Aja which is now (then) free, undeveloped and unencumbered and that the parties shall jointly manage … matters affecting the rights and interests of Aja under a committee to be known as Aja Management Committee.” Also agreed was that the said committee will have five representatives from both Ojupon and Ogunsemo families and five representatives from Olumegbon family including Chief Olumegbon or his representative and that Chief Olumegbon shall preside over the meeting, who was also said to have a casting vote in the vent of parity of votes. In addition, it was agreed that a reigning Chief Olumegbon remains the authority to cap the bale of Aja and that the bale of Aja shall remain member of the Eti-Osa Local Government Council and of
Lagos disburses N55m to Ikosi/Ejinrin property owners Land Matters HE Lagos State Government T has released a total sum of N54.96 million as compensation to owners of landed properties that are affected by developmental activities in Agbowa/Owu Ikosi in Ikosi/Ejirin Local Council Development Area of the State. In a press statement signed by Alhaji Moshood Adebisi, a Director in Land Bureau, the compensation was as a result of the acquisition of their land as well as farm crops by the government. “The property in question was taken based on the principle of overriding public interest, which is in conformity
with the provisions of the Land Use Act. The Act stipulates that owners of landed properties as well as cash crops being acquired by the government for developmental purposes should be compensated”, said the statement. The compensation was paid to beneficiaries from OwuIkosi and Agbowa communities in Ikosi/Ejirin Local Council Development Area of the State. The Traditional Ruler of Imofa, High Chief Musilu Kasali, while receiving the compensation on behalf of the communities at Land Bureau premises, Alausa, expressed gratitudes of the communities to Governor Babatunde Raji Fashola for paying the
compensation. Besides, they lauded the relocation of Okobaba Sawmill from Ebute metta to Agbowa/Owu Ikosi in Ikosi/Ejirin Local Council Development Area of the State. Kasali who said the communities are happy about the development, expressed optimism that the project will enhance economic activities of the area. It was also said that government is intensifying efforts to process the compensation of other beneficiaries whose landed properties are affected by developmental programme and activities in the state.
the Chieftaincy Committee, Lagos State as reflected in the Bale of Aja Chieftaincy Declaration of 1958. Soon after the judgment, the Ojupon rejected the verdict and consequently appealed to the Court of Appeal and then to the Supreme Court. Their lordships, Salihu Alfa Belgore, Michael Ekundayo Ogundare, Uthman Mohammed, Samson Uwaifo and Akintola Ejiwunmi, as they then were, upheld the terms of settlement and dismissed the appeal. The judgment, instead of
installing peace into the sprawling city, however, led to more altercations, that resulted into loss of lives and properties. The situation made the Lagos State Government to constitute a panel of inquiry, led by retired Justice Moronkeji Onalaja to find out the remote cause of the communal clashes over Ajah land. They made their recommendations affecting all the parties including a redeployment of the then Divisional Police Officer (DPO).
Part of their recommendations was that to facilitate genuine rapprochement and lasting peace in the community, Government should direct the Olumegbon Chieftaincy family to release 50 hectares of land at Ajah to the various aggrieved families, adding that the Olumegbon should release one-quarter of whatever parcel of land it reclaimed within the contiguity of the waterfront to the aggrieved families.
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THE GUARDIAN, Monday, July 15, 2013
HOMES&PROPERTY 47
Architects canvass new options for sustainable housing The architects are advocating for green buildings, which could offer their owners and occupants’ financial benefits such as reduction in water and energy use and costs, opportunities for tax credits, approvals, and other regulatory incentives Professional Practice By Chinedum Uwaegbulam PPARENTLY spurred by new developments and growing complexity in the building and construction industry, professional architects are tendering fresh options to rescue architectural practice from the impact of oil and gas, especially in the Niger Delta region. The new move is being pioneered by Rivers state chapter of the Nigerian Institute of Architects (NIA), which last week also attracted architecture enthusiasts to a four-day- long discourse to update built environment experts with current technical skills and business competencies necessary to compete in today’s professional and business environment. The event was packaged by an integrated marketing communication, Niche Pr. Coming under the 2013 Architecture Week with the theme, Oil and Gas IndustryImpact on Architecture and Environment in Nigeria, they advocated for construction of green buildings, especially in the Niger Delta region where the effects of oils and gas is huge and devastating to a vast majority of the population. The chapter chairman, Mr. Emmanuel Dike said that green buildings can only be achieved through courtyard architecture while impacts of oil and gas can be reduced through the provision green areas in homes to absorb effects of climate change and washing of roofs to remove gaseous accumulations. “By the time, we have proper courtyard or green architecture, there will be increased outdoor space, converted from
A
indoor space, which will lead to lower energy bills,” he said. Dike said the economic boom associated with oil profit has given rise to increased building construction activities as many developers are financial empowered to carry out infrastructural development; while air pollution and acid rain corrodes the exposed surfaces of building, especially aluminium. The product acquires a layer of black soothing on the surface over time. According to him, the pollution of oil has brought a new attraction to the building industry as use of plastics is now the order of the day, due to corrosion resistant and various brilliant colours that adhere to modular coordination. Speaking on oil, gas and it’s relevance to green building, Chinwe Ohajuruka, an architect, noted that Rivers and Niger Delta should be a model for sustainable housing and infrastructure development in the country. She said that the surplus arising from oil subsidy removal could be used to address challenges of affordable housing in Rivers State. Ohajuruka pointed challenges facing affordable housing in Port Harcourt as land/ownership process, high cost and inefficient access, cumbersome ownership process, financing, no credit or finance system available to low income groups and low mortgage penetration. She stated that majority of prospective homeowners are denied access to National Housing Fund (NHF) due to low deposit mobilization, inability to track monthly income
Chairman, Rivers state chapter of the Nigerian Institute of Architects (NIA), Mr. Emmanuel Dike (left), Lagos Chapter chairman, Mr Ladi Lewis and NIA President, Mr. Ibrahim Haruna during the opening of 2013 Architecture Week in Port Harcourt, last week (informal sector) and lack of lar house; bio-climatically buildings usually require procedures usually result in formal titles to their land designed to suit its natural equipment installation of lower costs – to evaluate the environment; depends less holdings. more efficient versions such items that are purchased In the constructio industry, on fossil-fueled energy, as Heating, Ventilation and for the building; identify environmentally the architect said the system relies more on passive coolAir-Conditioning (HVAC) more has no formal homebuilders ing and renewable energy. and systems, which results friendly alternatives where and threatened by high cost to better energy perform- available such as laptops In Nigeria, she said the of building materials, limitance of a project, lower instead of desktops, estabed standardisation/technol- strategies could be to operations costs. She added lish a policy to purchase enhance natural ventilation ogy/sustainable practices. that more efficient use of these alternatives when feasible; She disclosed that green and lighting, install walls water results in lower con- economically buildings could offer their that do not absorb, retain or sumption costs and less establish regular goals for owners and occupants a transfer heat indoors, matewaste that usually results in paper reduction by sending documents electronically, number of financial bene- rials and colours that keep more profit. fits, including reductions in the building cool, landscap“With green buildings, it monitor and manage waste, water and energy use and ing that shades the buildshould no longer be busi- and recycle where possicosts, opportunities with ings and site, solar wind, bioness as usual. The manage- ble,” she said. Earlier, NIA President, Mr. respect to tax credits, gas and other renewable ment has to be aware of all approvals, and other regula- energy sources. the building purchases and Ibrahim Haruna commendOhajuruka said that the tory incentives; greater payments. The following ed the chapter for their foresight in staging the forum. worker productivity, health and satisfaction, improved brand image; and better community relations. The green building advocate made case for the building of Passive Houses - a house that uses 50 – 75 per cent less energy than a simi-
Cadwell unfolds new expansion plan, lifestyle home designs Real Estate AGOS-based independent Lestate and indigenous real company, Cadwell Limited has announced plans of continuing to develop timeless structures and preserving fixed asset that allows sustainable returns to investors. The company, which prides itself as an ultra luxury and lifestyle specialists, made the disclosure in a statement to mark its 12-year anniversary in property development and providing support services to the housing industry. It used the opportunity to explain a feature of Cadwell homes that utilises light. The maximization of daylight and space in the architectural designs are key design themes throughout all their homes. “Each home offers a stunning galleried entrance hall with remarkable space and benefit from impressive leather, glass or walnut staircase and at least two passenger and service elevators giving access to the floors
above. A unique attribute and feature, which is in keeping with the reputation of a Cadwell home, is its renowned creation of space and light. “Our design also features large windows at times from floor to ceiling and extralarge doors, tall ceilings and several roof lanterns, vast use of natural lime stones and brick cladding to adorn all their buildings together with crushed marble balustrades. Inside all the homes are generous bedrooms – all en-suite featuring full-length glazed windows, Porcelanosa sanitary ware, and a walk in dressing room, luxury fitted kitchens with a range of Siemens and Bosch appliances.” The company’s Chief Operating Officer, Olaseni Oguntoyinbo said:” We specialize in developing innovative and unparalleled luxury apartments, residences, homes and commercial outlets to serve our growing high-end clientele.” Olaseni concludes, “We finish very well because we get involved personally.”
Cadwell’s Director Olumuyiwa Owoturo said: “We have till date embarked on numerous luxury lifestyle projects and have an impressive property portfolio all of which are located in Lagos. We understand the business of luxury and believe that while maximizing return on investment, we do not encourage the overcrowding of space in order to stick to our tradition of an exclusive premium brand.” For Head of Corporate Development, Nekpen Emokape, “most properties will give you a Structure, whilst Cadwell Estates gives you an identity embedded in a lifestyle. Each has been styled with meticulous attention to detail and constructed to the very highest of standards using supreme quality materials and traditional craftsmanship, incorporating a specification synonymous with the marquee. Every Cadwell residence has its own distinctive appearance, seamlessly blending its neoclassic style with contemporary features.”
One of Cadwell’s homes in Lagos
THE GUARDIAN, Monday, July 15, 2013
48
TheEnvironment
A typical coal plant
Coal power plants: CDSC, ICEED alert govt on pollution, health impacts Climate Change By Chinedum Uwaegbulam WO foremost environT mental groups have raised concern on Federal Government’s proposed coal power stations, saying that the pollution and health hazards to be caused out weighs the anticipated benefits. The groups Communication for Development and Social Change (CDSC) and International Centre for Energy, Environment and Development (ICEED), Nigeria warn that acid gas, soot, and dust emissions from coal burning are, along with diesel engines, the biggest contributors to microscopic particulate pol-
Coal plants are the most polluting of all power stations and the World Resources Institute (WRI) identified 1,200 coal plants in planning across 59 countries, including Nigeria. Environment groups say federal authorities should consider clean alternatives that are environment-friendly lution that penetrates deep into the lungs and the bloodstream. “The pollution causes heart attacks and lung cancer, as well as increasing asthma attacks and other respiratory problems that harm the health of both children and adults.” More than 1,000 coal-fired power plants are being planned worldwide, new research has revealed. The huge planned expansion comes despite warnings from politicians, scientists and campaigners that the planet’s fast-rising carbon
emissions must peak within a few years if runaway climate change is to be avoided and that fossil fuel assets risk becoming worthless if international action on global warming moves forward. Coal plants are the most polluting of all power stations and the World Resources Institute (WRI) identified 1,200 coal plants in planning across 59 countries, including Nigeria, with about three-quarters in China and India. The capacity of the new plants adds up to 1,400GW to global green-
house gas emissions, the equivalent of adding another China – the world’s biggest emitter. Analysis of the emissions shows that air pollution from coal plants is now linked to more deaths than road traffic accidents in Poland, Romania, Bulgaria and the Czech Republic. In Germany and the UK, coalfired power stations are associated with nearly as many deaths as road accidents. Polish coal power plants were estimated to cause more than 5,000 premature
deaths in 2010. According to CDSC Campaign Officer, Christie Ihebom, air pollution from coal is linked to respiratory conditions – chronic obstructive pulmonary disease, asthma, lung cancer, and pneumonia. She said, the government should explore cleaner options, which provide less health impacts and environmental costs. Ihebom stated that the Nigerian government should adopt a renewable energy policy, which will ensure viable renewable and low-carbon alternatives. ICEED Executive Director, Mr. Ewah Eleri said: “The Nigerian economy requires significant expansion of electricity production to stimulate growth, create jobs and reduce poverty. It is impor-
New UN forum to boost sustainable development The Environment HE General Assembly has T established a new High-level Political Forum, which will replace the United Nations Commission on Sustainable Development, to boost efforts to tackle global economic, social and environmental challenges. In a resolution adopted by consensus, the 193-member Assembly emphasized the need for an improved and more effective institutional framework for sustainable development, and decided that the Forum should
provide “a dynamic platform for regular dialogue and for stocktaking and agenda-setting to advance that process.” The decision follows up on a key recommendation of ‘The Future We Want,’ the outcome document of last year’s UN Conference on Sustainable Development, known as Rio+20. “Establishing the Forum marks a major step forward in implementing ‘The Future We Want’,” said Secretary-General Ban Kimoon. “The Forum can provide the political leadership and action-oriented recommenda-
tions we need to follow up on all the Rio recommendations and meet urgent global economic, social and environmental challenges. “Countries must do their utmost to realize the Forum’s potential.” The Forum will convene annually at the ministerial level under the auspices of the UN Economic and Social Council (ECOSOC) and it will, every four years, bring together heads of State to provide added momentum for sustainable development. Its first meeting will be held in September, during the Assembly’s forthcoming 68th
session. The new body is tasked with providing political leadership, guidance and recommendations for sustainable development; reviewing progress in the implementation of related commitments; and enhancing integration of the three dimensions of sustainable development — economic, social and environmental. “We are simply not doing enough to meet the fundamental challenges of our time: to end extreme poverty in this generation and significantly narrow the global gap between rich and
poor, without inflicting irreparable damage to the environmental basis for our survival,” said General Assembly President Vuk Jeremiæ. “The new Forum must be more than just a meeting place — it must be the place where countries and civil society generate the momentum for change.” The Forum will replace the Commission on Sustainable Development, which was formed after the 1992 Earth Summit and helped to generate action on a range of issues that led to international agreements or treaties.
tant that we deliver this energy in a cost effective and sustainable manner. Today, natural gas and hydropower remain the most cost effective and one of the cleanest sources of power available to us. “The value chain for coal is today non-existent in Nigeria and the cost of developing it will be prohibitive. Therefore government’s plan to develop the dirtiest fuel for power generation in Nigeria does not make economic sense and will be wrongheaded.” Greenpeace in a recent report said: “Tens of thousands of kilogrammes of toxic metals such as mercury, lead, arsenic and cadmium are spewed out of the stacks, contributing to cancer risk and harming children’s development,” says, which does not emphasize the impact of coal burning on climate change. This is definitely not in line with a safe climate scenario – it would put us on a really dangerous trajectory,” said the WRI’s Ailun Yang, who compiled the report, considered to be the most comprehensive in the public domain. But she said new emissions limits proposed in the US and a voluntary cap on coal use in China could begin to turn the tide. “These policies would give really strong signals about the risks to the future financial performance of coal in climate policies.”
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ECOWAS agrees to phase-out inefficient incandescent lamps The Environment OVERNMENT representaG tives from the Economic Community of West African States (ECOWAS) have successfully established a regionally coordinated framework to transition to energy efficient lighting. The strategy identifies the complete phase-out of inefficient incandescent lamps by 2020, the latest. The Ministry of Energy and Mines of the Republic of Senegal agreed to sponsor all events of efficient lighting initiative, at the request of the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) in order to rally other ECOWAS member states. The announcement comes on the heels of a workshop for the development of a regional strategy for Energy Efficient lighting held from July 2-3, 2013 in Dakar, Senegal, hosted by the ECREEE and the United Nations Environment Programme (UNEP) en.lighten initiative, with support of the Club of National Agencies and Structures in Charge of Rural Electrification (Club-ER). The workshop raised awareness and built consensus on the various technical options available at regional and international levels for the development of a concrete regional efficient lighting strategy. Addressing gender issues was also on the agenda, as women are both the proponents and beneficiaries of positive changes in the energy sector. “The achievement of a permanent and sustainable transition to efficient lighting in ECOWAS countries is depend-
The ECOWAS efficient lighting initiative is part of the overall development goal for West Africa to improve access to modern, reliable and affordable energy services, energy security as well as the reduction of negative impacts on the energy system. ent on the development and implementation of national and regional efficient lighting strategies with an integrated policy approach, which incorporates global best practices,” said Mahama Kappiah, Executive Director of ECREEE. “We are pleased to partner with UNEP’s en.lighten initiative in the task of accelerating global market transformation
to environmentally sustainable lighting technologies.” A transition away from general service incandescent lamps to more efficient lighting would save the region an estimated US$ 220 million each year in energy costs. West African nations together could save a total of 2.4 terawatt hours of electricity, which is equivalent 6.7 per
cent of the total yearly energy consumption. The savings would be enough to power over 1.2 million households. ECREEE, as the leading organization in the field of renewable energy and energy efficiency in West Africa, launched the initiative on energy efficient lighting, as one of its priority programs as part of the ECOWAS Policy on Energy Efficiency adopted in Accra, Ghana in October 2012. The use of energy was identified as a fundamental component of achieving the UN Secretary-General’s “Sustainable Energy for All (SE4ALL)” objectives in the ECOWAS region. The UNEP en lighten initiative seeks to address the challenges of accelerating global
market transformation to environmentally sustainable lighting technologies by providing technical support for the phase-out of inefficient lighting. The ECOWAS efficient lighting initiative with en.lighten is part of the overall development goal for West Africa to improve access to modern, reliable and affordable energy services, energy security as well as the reduction of negative impacts on the energy system. “To achieve a permanent and sustainable transition to energy efficient lighting, regional efficient lighting strategies need to follow an integrated policy approach and incorporate global best practices,” said Gustavo Manez, Project Manager for the en.lighten
intiative. “We are pleased to see that consensus has been reached in the ECOWAS region for pertinent policy aspects such as minimum energy performance standards, supporting policies, monitoring, verification and enforcement activities, and the environmentally sound management of lighting products.” The meeting in Dakar follows a launch workshop held in Ouagadougou, Burkina Faso in April of this year, attended by delegates from the ECOWAS Ministries of Energy as well as representatives from standards organizations, and international lighting experts. Here, participants agreed on a roadmap for the development of the regional efficient lighting strategy.
Experts urge wildlife conservation curriculum in schools Conservation From Anietie Akpan, Calabar IQUED by the low level of P awareness on conservation issues in the country, environment experts have called for the inclusion of wildlife conservation into the primary and secondary school education curriculum. According to them, such move would increase wildlife conservation awareness in Nigeria and check activities of poachers and deforestation. While delivering a paper at the Cross River National Park Akamkpa during a workshop on Research on Livelihood and Wildlife exploitation in
Oban Hills Communities of Cross River organised by Volkswagen Research, Prof. Emeka Obioha said that conservation education was very important, adding that it was time the nations policy planners made it compulsory in basic levels of education. He said: “Conservation education is very important in the sense that, if conservation education is mainstreamed into the primary school curriculum, first and fore-most, it will affect the content of conservation education in primary science. “That will really assist the whole effort of conservation by catching our children and our generation young; making them aware of what they
should understand about conservation”. According to him, He said that teaching conservation in schools would help creating the much needed awareness for the growth of the sector. “Conservation could be a veritable source of economic growth for the country if, it was well harnessed,” adding that it could generate more revenue than oil. Obioha said that, there was the need for strong enforcement of laws guiding wildlife conservation in the country, adding that implementation of conservation regulation has to be strengthened. He said: ``We have legislation on the ground. The conservation act is there but the
issue is about the thoroughness of implementation of these laws. ``There are hiccups; there are obstacles here and there; so, it is very important for us to start thinking about fine-tuning other aspects of the acts in order to give them stronger bites to achieve the aims of the conservation acts.’’ On his part, the Conservation Protector (CP) of Cross River National Park, Mr. Richard Efa said that the workshop was timely and challenged the researchers to come up with useful recommendations that would help the management of the park. Efa said the management was doing everything possible to curb hunting, logging and other illegalities at the Oban
hills park. ``We have in the past five years intensified the protection of the park and that is why we can now site Elephants there. We are trying our best to reduce the activities of hunters but because of the level of rain forest, it has been a bit difficult. But we are doing our best, ’’ the CP said. Delivering a Paper, entitled, “Dissemination and Stakeholders/Role Players sensitization”, Mr. Paul Isiugo said there was need for the involvement of the host communities in the management of the park. Isiugo also called for external funding for the Cross River National Park to make it more effective.
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The implications of Shale oil boom Introduction HALE oil (light tight oil) is rapidly emerging as a significant and relatively low cost new unconventional resource in the US. There is potential for shale oil production to spread globally over the next couple of decades. If it does, it would revolutionize global energy markets, providing greater long term energy security at lower cost for many countries. PWC analysis suggests that global shale oil production has the potential to reach up to 14 million barrels of oil per day by 2035; this amount to 12% of the world’s total oil supply. This increase could reduce oil prices in 2035 by around 25%40% ($83-$100/ barrel in real terms) relative to the current baseline EIA projection of $133/barrel in 2035, which assumes low levels of shale oil production.
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History Humans have used oil shale as a fuel since prehistoric times, since it generally burns without any processing. Britons of the Iron Age also used to polish it and form it into ornaments. The first UK patent for extracting oil from oil shale was British Crown Patent 303 granted to Becker and Serle in 1684. Modern industrial mining of oil shale began in 1837 in Autun, France, followed by exploitation in Scotland, Germany, and several other countries. Operations during the 19th century focused on the production of kerosene, lamp oil, and paraffin; these products helped supply the growing demand for lighting that arose during the Industrial Revolution. Fuel oil, lubricating oil and grease, and ammonium sulfate were also produced.[35] The European oil-shale industry expanded immediately before World War I due to limited access to conventional petroleum resources and to the mass production of automobiles and trucks, which accompanied an increase in gasoline consumption. he global oil-shale industry began to revive at the beginning of the 21st century. In 2003, an oil-shale development program restarted in the United States. Authorities introduced a commercial leasing program permitting the extraction of oil shale and oil sands on federal lands in 2005, in accordance with the Energy Policy Act of 2005. The story so far Shale oil production has been accelerating in US, growing from 111,000 barrels per day in 2004 to 553,000 barrels per day in 2011 (equivalent to a growth rate of around 26% per year). As a result, US oil imports are forecast this year to fall to their lowest levels for over 25 years. Estimates by the US Energy Information Administration (EIA) suggest that shale oil production in the US will rise more slowly in the future to around 1.2 million barrels per day by 2035 (equivalent to 12% of projected US production at that date). However, these projections seem conservative relative to other market analysts who forecast US shale oil production of up to 3-4 million barrels per day by that date. EIA estimates of the scale of total shale oil resources in the US have been revised upwards from 4 billion barrels in 2007 to 33 billion barrels in 2010, providing a significant contribution to increased US energy independence. Shale oil could make the largest single contribution to total US oil production growth by 2020, with the proportion of production from conventional sources remaining relatively stable. In the long term, it is likely that shale oil could displace around 35-40% of waterborne crude oil imports to the US. This would create additional effective supply to other locations such as China. However, should China start to exploit its own shale oil this would further decrease its import dependency and increase effective supply to oil importing countries. Rapid production growth in shale oil is having dramatic local effects on pricing in areas where shale oil is produced but access to export infrastructure is limited. The US domestic oil price has already decoupled from global indices and imports are forecast to decline. Put simply, increased shale oil production could lead to oil prices that are significantly lower than projected in current forecasts. Outside the US, the development of shale oil is still at an early stage. However, there are indications that point to large amounts of technically recoverable resources distributed globally. Global shale oil resources are estimated at between 330 billion and 1,465 billion barrels. Investment is already underway to characterize quantify and develop shale oil resources outside the US, for example, in Argentina Russia and China. Since the beginning of 2012, there have been a number of announcements, from Argentina to New Zealand, of discoveries of shale oil resources as well as government initiatives to encourage the exploration and production of shale oil.
The third key requirement for shale oil to be exploited effectively is a supportive regulatory framework. This also needs, however, to take account of local environmental concerns and to be consistent with national government objectives on decarburization and energy security. Different countries are likely to strike a different balance here and this is reflected, for example, in our assumption that shale oil production develops more slowly in the EU than in the US and some other territories. According to PWC research, recent forecasts from the EIA and the International Energy Agency (IEA) suggest a marked rise in both global oil production and real oil prices over the period to 2035, due in particular to rising demand from China, India and other fast-growing emerging economies. The IEA forecasts a 19% increase in global oil production by 2035, as compared to a 28% increase forecast by the EIA (which is not that large a difference given the uncertainties involved in any such long-term projections). The EIA and IEA’s average global oil price predictions are even more closely aligned, with the IEA predicting a sharp short-term increase that gradually flattens off in the longer term to $127 per barrel by 2035 and the EIA predicting a steadier price increase to reach $133 per barrel by 2035 (both estimates are expressed in real terms adjusted for general US price inflation, which is also the case for all other oil price projections quoted in this report). In deriving these oil price projections, both agencies assume relatively modest growth in shale oil as a proportion of total global production. Their projections in this respect are arguably conservative as they are based only on resources about which there is already a high degree of certainty. Past experience of shale oil and shale gas suggests that these resource estimates are likely to be revised upwards significantly over time as activity to new plays in the US and globally. Extrapolating from the available data (and drawing parallels with US shale gas experience) has enabled a number of scenarios to be pieced together, which see shale oil production ramping up both in the US and around the globe. This analysis suggests that global shale oil production has the potential to rise to up to 14 million barrels of oil per day by 2035 in our main scenario, amounting to 12% of total oil supply at that date (using EIA projections for production other than shale oil). Given the above possibilities, a global real oil price could be significantly lower than the EIA reference case projections of around $133 per barrel in 2035 - by between 25% to 40% depending on the level of response by OPEC. This corresponds to a real oil price fall of around $33-50 per barrel by 2035 compared to the EIA baseline projection.
Implications This could also increase the level of global GDP in 2035 by around 2.3%- 3.7% (which equates to around $1.7-$2.7 trillion at today’s global GDP values). However, the benefits of such oil price reductions will vary significantly by country. Large net oil importers such as India and Japan might see their GDP boosted by around 4%-7% by 2035, while the US, China, the Eurozone and the UK might gain by 2%-5% of GDP. • Conversely, major oil exporters such as Russia and the Middle East could see a significant worsening of their trade balances by around 4%-10% of GDP in the long run if they fail to develop their own shale oil resources. The potential emergence of shale oil presents major strategic opportunities and challenges for the oil and gas industry and for governments worldwide. It could also influence the dynamics of geopolitics as it increases energy independence for many countries and reduces the influence of OPEC. There are significant strategic implications along the value chain. Oil producers, for example, will have carefully to assess their current portfolios and planned projects against lower oil prices. National and international oil producers will also need to review their business models and skills in light of the very different demands of producing shale oil onshore rather than developing complex “frontier” projects on which most operations and new investment is currently focused. Lower than expected oil prices could also create long-term benefits for a wide range of businesses with products that use oil or oilrelated products as inputs (e.g. petrochemicals and plastics, airlines, road hauliers, automotive manufacturers and heavy industry more generally). The potential environmental consequences of an increase in shale oil production are complex and appropriate regulation will be needed to meet local and national environmental concerns. Shale oil could have adverse environmental effects by making alternative lower carbon transport fuels less attractive, but might also displace production from higher cost and more enviThe potential impact on global oil pricesScenario assumptions ronmentally sensitive plays. and considerations Key assumptions: Winners and losers The successful development of shale oil resources is dependent on Clear ‘winners’ emerge when considering the impact at a national the presence of globally distributed, large scale, good quality level. India and Japan, for example, could under these scenarios see resources, with overall technical and economic recoverability that an increase in GDP of between 4% and 7% by the end of the projecis broadly in line with the produced shale oil resource in the US. tion period. Other net oil importers such as the US, China, Germany Significant exploration and appraisal will need to be undertaken and the UK could also see GDP gains of the order of 2-5% of GDP in in future years to prove resource quantity and quality. the long term due to lower global oil prices relative to a baseline The second key consideration is the timing of large scale develop- with minimal shale oil. ment of shale oil resources. Development of shale gas outside the At the other end of the spectrum, some major net oil producers US has arguably been disappointing to date and the same issues could see their current account balances deteriorate significantly (including regulatory obstacles, infrastructure, logistics and skills as a result of lower oil prices. Russia could limit its projected losses challenges) may also influence the pace at which shale oil oppor- were it to exploit its estimated resources, the largest in the world. A tunities are pursued outside the US. it is assumed that shale oil pro- lower oil price acts as a boost to consumers’ real disposable income duction outside the US is phased in several stages, starting with similar to an indirect tax cut, with a consequent positive effect on small scale production from 2015, building up to one million bar- real household spending levels. In Japan, for example, there could rels per day by 2018 and continuing to grow thereafter. be the possibility of a fall of $50 in the real oil price could increase
private consumption per head at the end of the projection period by the equivalent of more than $3,000 per year (when compared to the EIA baseline with minimal shale oil production). Gains in the US and the Eurozone would also be significant, although net gains to UK consumers would be lower in part because there are also losses on existing North Sea oil and gas revenues if global energy prices fall. Oppotunities and challenges for governments and companies Net Oil Importing Countries Governments in current net oil importing countries with potential shale oil resource will need to understand the likely economic payback from creating policies to encourage exploitation of shale oil (both on its own and relative to other unconventional resources). With a lower oil price, the financial investment case for renewables becomes relatively less attractive; governments will have important choices to make as to how to realize the benefits from shale oil production in a way that balances potentially conflicting objectives of energy affordability and decarburization. For example, if oil prices are lower than expected due to shale oil, governments could keep fossil fuel taxes higher than would otherwise be acceptable and recycle the proceeds from this into, for example, funding for R&D for low carbon technologies. –– Shale oil could displace other new oil supply sources that could be argued to have higher associated environmental costs. The potential environmental impact of shale oil is complex and there will be challenging regulatory, fiscal and other policy decisions for governments to make in this area over the coming years and decades. Oil Exporters Governments in OPEC nations and other major net oil exporters need to assess the likely impact of shale oil on global oil prices and their own revenues, budgets and economies. They need to consider how best to respond in terms of potentially limiting growth in oil production to counteract the potential price effects of increased production outside OPEC. Another priority may be the mitigation of the long-term impacts on governments’ revenues more generally of oil prices below current projections. Where feasible, they also need to consider pursuing their own shale oil exploration and production options. Oil Companies Oil companies have to assess their current portfolios and planned projects against lower oil price scenarios. They need to understand the likely impacts of lower oil prices on the investment case for high cost projects. In addition, they need to review their business models and skills in the light of shale oil’s industrialized production process which makes very different demands of operators than today’s remote and challenging locations. Oil Service Companies Businesses that support national and international oil companies with services and equipment need to consider the implications for their strategy and operating model as their clients shift focus from offshore to onshore operations with very different implications for the services and capabilities required. Already many IOCs are starting to invest in shale oil exploration and production outside the US, including sites in China, Argentina, Australia and Russia. Downstream Operators Major downstream operations, such as refineries and petrochemical plants, which rely on oil and oil products, need to consider new sources of supply and the potential for lower feedstock prices, both of which may influence the performance of existing assets and investment decisions in new ones. Companies that Rely on oil Related Products More Generally, Companies Across the economy which rely on oil and related products (e.g. plastics, airlines, road haulage, automotive manufacturers and heavy industry more generally) could see significant favorable shifts in their cost structures over the next couple of decades. These will need to be factored into longer term business planning and investment appraisal decisions. CONCLUSIONS The potential availability and accessibility of significant reserves of shale oil around the globe - and the potential effect of increased shale oil production in limiting growth in global oil prices - has implications that stretch far beyond the oil industry. At a global level, shale oil has the potential to reshape the global economy, increasing energy security, independence and affordability in the long term. However, these benefits need to be squared with broader environmental objectives at both the local and global level. Consequent changes in policy and regulatory regimes will have important knock-on effects on oil producers and consumers. The effects of a lower oil price resonate along the entire energy value chain, and investment choices based on long-term predictions of a steady increase in real oil prices may need to be reassessed. The potential magnitude of the impact of shale oil makes it a profound force for change in energy markets and the wider global economy. It is therefore critical for companies and policy-makers to consider the strategic implications of these changes now.
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BusinessInterview Unconventional oil sources may impact Osayande Igiehon is the chairman, Society of Petroleum Engineer (SPE) Nigeria Council. He has about 20 years experience in reservoir and petroleum engineering, strategy and planning, business improvement and operations management in Nigeria, Netherlands and Russia. In this interview with ROSELINE OKERE, he bares his mind on the challenges of the country’s oil and gas sector and the role of petroleum engineers in ameliorating these challenges. Excerpts. OW has the awards of marginal oil fields H assisted the Nigerian engineers in respect of skill development? The marginal field programme was visionary in intent but post-award implementation has been challenging. 10 years after the fields were awarded, seven of the 24 fields are on production. This provides food for thought, for all stakeholders to consider the learning points, with a view of being able to close the gap with expectations, both for the first set of fields awarded and for future programmes. My overall stance is one of expectation of further improvement, noting the successes so far recorded have proved the concept. SPE Nigeria contributed to the articulation of the initial programme by providing the platforms where some of the initial ideas and strategies were seeded and discussed in the late 90’s and early 2000’s. Since then, SPE has continued to provide programme to further the discourse on the related joint issues of monetising marginal fields and increasing indigenous participation in upstream industry. Till date, SPE remains involved in providing avenues to assist in building the necessary capacity to improve the success of this objective. This year will be no different, there are two programmes focused on this and related subjects. The Olibiri Energy forum will examine whether we are on track with the drive for increasing indigenous participation in the industry. It will have subject matter experts who will examine this issue from the key perspectives. SPE welcomes all industry stakeholders to the Oloibiri
Igiehon
Lectures and Energy Forum. Also, as part of the this year’s NAICE, there is the plan to hold a workshop to discuss ‘Best Practices in Marginal Field Development and Production’, where operators who have put their fields on production will be invited to share their experiences with the industry. This promises to be one of the most exciting and attended oil industry workshops of the year 2013. Again, SPE welcomes the industry to the 2013 NAICE, which promises to be a landmark for the year. Recently, the Department of Petroleum Resources began to raise alarm over the declining state of the country’s crude oil reserve. What is the expected role of the petroleum engineers to this challenge? In the main, recoverable reserves result from a combination of technical, economic and other factors. Reserves growth can be achieved from exploration and from improving the recovery from already discovered hydrocarbons-in-place, to a level that is higher than what is produced, a concept that is technically referred to as reserves replacement. The petroleum engineer has a central role in these technical and economic evaluations. However, today, the non-technical/non-economic factors including policy framework and funding are also playing equally important, if not more definitive roles in increasing reserves. An enabling Petroleum Industry Bill is one key vehicle to address these issues. On the technical front, key tactics that will be key will be increasing recoverable hydrocarbon volumes that will include drilling more wells, put-
ting in more artificial lift systems and increasing the use of secondary and EOR recovery techniques. On the economic front, reducing costs is going to be key to increasing recoverable hydrocarbon volumes. Petroleum Engineers is well positioned to address these technical and economic evaluation challenges and is doing so in the government organizations and various companies. Is the Nigerian petroleum engineer adequately involved in running the Nigerian oil and gas industry? The involvement of the Nigerian petroleum engineer in running the Nigeria Oil and Gas industry has increased steadily over the years and has been enabled by the Nigerian Content Act and the active uptake of this initiative by the industry. Today, the demographics of the Nigerian working in the industry are more favourable than in the past, the number of indigenous service companies and operating companies are on the rise. Overall, onshore operations today is largely indigenised given that it’s more matured and technology transfer is well advanced. Here too, I do not think we have reached the goal, but the journey is well on its way and steady progress being made. The Nigeria oil and gas industry is facing the challenge of shale gas and other unconventional fuels outside the country. What are the fears of petroleum engineers on this new development? The emergence of unconventional hydrocarbon resources, especially gas is a significant factor in the global energy demand - supply equation. The
potential size of this resource is of the magnitude that requires a deeper consideration of the short, medium and long-term impact it could have on Nigeria oil and gas industry. This is of particular importance, given our position as the sixth largest crude oil exporter and 14th largest Natural gas exporter in the world, of which about 95 per cent of our foreign exchange earnings and about 80 per cent of our budgetary revenues are derived. In the early release (reference case) of USA’s Energy Intelligence Agency’s 2013 Annual Energy Outlook, a sharp rise in domestic crude oil production from tight oil play over the next decades is forecasted. Further, dry natural gas production is projected to increase, mostly from unconventional plays (tight sand and shale’s), such that by 2020, domestic production will outpace consumption by 2020, thereby spurring net export of gas. There are other scenarios of this forecast that predict earlier or later cutover from net importer to net exporter. On 20th February 2013, Platts website (a leading global energy, petrochemicals and metals information provider) carried a story with headline that “Nigeria’s LNG exports to U.S. in steep decline on rise of shale: NNPC.” It quoted an NNPC report that stated: “In 2011, Nigeria exported just 2.3 Tcf, representing one per cent of total LNG exports to the U.S., compared with about 12 per cent in 2007,” NNPC said in the report. Nigeria exported 95 Tcf of LNG to the U.S. in 2007, according to the report. Further, it quoted the report saying: “However, the new NNPC data projects Nigeria’s LNG exports to shrink further given the steady increase in shale gas’ share of total U.S. gas supply from eight per
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global energy market dynamics, says Igiehon cent in 2007 to 32 per cent in 2011 and to the U.S. becoming a net exporter of natural gas this year.” Further, sizeable unconventional resources are reported in Argentina, Australia, Canada, China, Mexico, South Africa. These reports go to highlight the growing importance of unconventional hydrocarbons and potential impacts on the global oil and gas supply and demand dynamics. It is, therefore, incumbent on Nigeria to reflect on this situation and fashion out strategies to protect its industry, its market and income. In choosing this topic for the Oloibiri lecture series, SPE Nigeria is providing a robust platform to bring this issue to fore, for the government and industry players to get informed and deliberate on the way forward. Crude oil theft has become a major challenge to international oil companies and this is really affecting the country’s export business. What is the position of SPE on this and what it portends for the country’s oil industry? SPE’s position is to create a platform for this and other issues to be discussed. SPE is not an organisation that is capable of taking a position because it is made up of different segments of the industry. So, what we do is to provide a platform for these issues to be discussed. As I told you, we are having a panel session that will discuss crude theft and we have invited all the stakeholders. It is in that kind of fora that they will discuss and potentially chart a way forward. But SPE by itself doesn’t have the mandate or organisational strength or the ability to have any direct role in some of these issues. Our role is to provide the platform for discussion. On the issue of acquisitions, what we are seeing is a normal course of business. It is just that we have not been seeing it in this part of the world. Acquisitions and divestments are normal course of business. Companies acquire and divest. It just happens that in Nigeria, we have not seen that but we are beginning to see that now. I really don’t think it is a big cause for concern in my personal view because if somebody divests, another person acquires. What has been divested and what has been acquired remains in this country. It is just an opportunity for growth. That is the way I see it and there should not be any cause for concern. Would you say that SPE Nigeria is doing much to bridge the skill gap between the academia and the oil industry, to ensure that Nigerian graduates are equipped for the challenges in the field? The first thing is that today, SPE sponsors the Committee of Heads of Petroleum Engineering Departments. This is a forum where we have brought all the heads of petroleum engineering departments together. We sponsor their meetings so that they can fashion out what are their collective problems and whether there potential solutions and then provide the coalition and the means to try to link some of their problems to solution providers. So, one of the key steps we took this year was to sponsor and host an oil and gas education summit in Abuja. That was held in May and we have the Federal Ministry of Education, represented, Nigerian Universities Commission and there were five panel sessions that discussed the different aspects, including our curriculum, why our graduates are not industry-ready, why do we not have enough research. We looked at all these areas and we came out with a number of key things, which we are going to do. We broke those things into what SPE can do; what the academia needs to do and what others should do. We are moving away from just talk to areas where we can take actions. We concluded that the next step to that journey is to have workshop that will discuss the curriculum for petroleum engineering. It will be a collaboration between SPE, the academia and the Nigerian Universities Commission (NUC). We are providing a platform for the industry, not just one company to provide direct feedback into the curriculum of the universities, particularly for the undergraduates. That is the very first thing that we are doing. The second thing that we are doing is that people may not know that we have 25 university chapters in Nigeria and university chapters are typically 50 to 100. One of the events, which we hold is students’ conference, which we rotate among the universities. This year, the conference was held at the University of Nigeria, Nsukka (UNN) and that conference had over 400 students from all over Nigeria. There were over 100 technical papers presented by students on the work they are doing and the best three papers were identified and the person with the best three papers is sponsored to the SPE International Conference. So, the student, who won and who was from the University of Ibadan is going to New Orleans in October for the SPE International Conference. The third thing we do is that for the faculty – for the lecturers, SPE also provides funding to support them to come for the Nigeria conference and for the international conference. We provide that support. The fourth thing is that we do a lot as professionals – as individuals, going to the universities to do ambassador programmes, just as some members of SPE provide master classes. So, there is so much we are doing in different areas to make the students industry-ready professionals. But let me give you something that is more fundamental. There is always that notion today, that when you have a graduate, that graduate should come out ready for you to plug in. I do not think that is the correct notion. When a graduate comes out of the university, he comes out with an understanding of the principles and with an understanding of how to apply the principles to solve problems. He may not have the industry knowledge. When he goes into the industry, depending on the industry he finds himself, the industry can now tailor him to meet their needs in terms of the industry specific things. I
The emergence of unconventional hydrocarbon resources, especially gas, is a significant factor in the global energy demand-supply equation. The potential size of this resource is of the magnitude that requires a deeper consideration of the short, medium and long-term impact it could have on Nigeria’s oil and gas industry.
On the technical front, key tactics that will be important will be increasing recoverable hydrocarbon volumes, which include drilling more wells, putting in more artificial lift systems and increasing the use of secondary and EOR recovery techniques.
So, the concern that people have about the graduates today is not around their being able to plug into the industry and adapt to that industry but whether their foundation is strong enough for you to build on. That is the key issue.
read Electrical Engineering but I joined the oil industry but as an electrical engineer, I could have gone into NEPA; I could have joined the chemical industry of anything. So, the education is not encompassing. But the key that is lacking is the consideration that even the principle – the foundation is weak. So, the concern that people have about the graduates today is not around their being able to plug into the industry and be able to adapt to that industry but whether their foundation is strong enough for you to build on. That is the key. What are the expectations in the upcoming 2013 Nigeria Annual International Conference & Exhibition (NAICE)? NAICE is the leading oil and gas industry technical conference in sub-Saharan Africa, with the 2013 conference, holding from July 30, to August 1, being the 37th edition. The theme of the 2013 conference “To Grow Africa’s Oil & Gas Production: Required Policy, Funding, Technology, Techniques & Capabilities” is very relevant to the aspirations of the established, emerging and prospective African oil and gas producing countries. Therefore, the 2013 conference aims to provide a robust platform to help governments, industry and academia position for the aspired production growth, which will be crucial to achieving needed economic growth in Africa and meeting the world’s growing energy needs. The 2013 NAICE will provide unparalleled world-class opportunities for knowledge sharing, capacity building, networking and marketing of products and technology. It will feature an opening ceremony on July 30, which will have top leaders and executives from government, industry and academia present. The conference will also feature the biggest oil and gas industry exhibition in sub-Saharan Africa that will feature over 60 organisations comprising international oil companies, overseas companies, indigenous companies, academic institutions and professional organisations. This conference will see the introduction of two novel programmes. First, is a conference workshop, which this year will focus on Marginal Field Development Best Practices. And there is a Women Development Network that is going to be launched this year. The Marginal Field Best Practices Workshop is a must-attend event for all those who have interest in the growing segment of the industry. It will feature seasoned experts who have successfully put marginal fields on production and they will be sharing their experiences and challenges. They will also proffer valuable ideas on how to improve the success rates and increase the contribution from marginal fields to meet the overall production growth aspirations. There will also be two topical panel sessions that will feature high profile technocrats giving their views on the current status, challenges, progress and solutions on two key topics ‘Human Capital Development as Enabler to Grow Africa’s Oil & Gas Production’ and ‘Crude Oil Theft: Implications for Nigeria and Possible Remedies’. As you know, crude oil theft has become one of the biggest threats that the Nigerian onshore oil and gas industry is facing today; hence SPE is elevating this subject for attention, discussion, education and building coalition for resolution. The heart of the conference is the technical programme. This year, it will feature the presentation of over 100 technical papers. These papers have been selected from a submission of over 250 initial proposals. The papers have come from a wide spectrum of endeavours, with the majority coming from the academia, for the very first time. The technical programme is usually one of the most attended programmes in the conference, as it provides the opportunity for professionals to share their ideas, tests concepts and to learn from each other. As you know, there is a contest that goes along with the programme, and the “SPE NAICE Best Paper Award” is one of the most coveted professional recognitions in the Nigeria oil and gas industry. You said that SPE Nigeria would launch Women Development Network in this year’s conference. Why this special focus on women? The SPE Nigeria has been trying to develop diverse workforce. Studies have shown that there is benefit and value in having a diverse workforce and diversity is in many areas. One of the key areas of diversity is in gender because the approach that women bring to solving problems is different from the approach that a typical male would bring. It is in that collaboration that you get the best value. So, with time, we have seen that for us to be able to able to achieve the goals in bringing the women participation to a level, which we aspire to, we have to dedicate attention and programmes at stimulating that part of workforce. Most companies have one kind of programme or the other to stimulate female participation. We do the same thing in SPE; we are trying to provide a more cross-company platform to develop that. What we are hoping to do with this inaugural series is to have a section where we are going to bring accomplished women leaders in the industry and they will be sharing with their colleagues, what it has been for them, building their skills; competing in their a traditionally male-dominated industry to rise to the top, and potentially become role models and give their younger colleagues tips and tricks on how to navigate the oil industry world and get to the top just like they have done. That is the intent behind that programme. Our principle is that when we always bring up a new idea, we incubate it within the conference for a couple of years when it becomes strong enough to stand on its own, we spin it off.
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NigeriaCapitalMarket NSE Daily Summary (Equities) as at Friday PRICE LIST OF SYMBOLS TRADED FOR 12/07/2013
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NSE Daily Summary (Equities) as at 12/07/2013
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‘Resurgence of primary market to spur revival of public offers’ By Helen Oji ARKET operators have M expressed optimism that the high level of participation from investors on the on-going right issues of some quoted companies on the Nigerian Stock Exchange would stir up activities in the primary market segment, as well as spur the revival of public offers. They argued that the recent resurgence recorded in the primary market in terms of activities is an indication that the investing public is gradually coming back to
the market, largely because of reforms in the secondary market, which has attracted both foreign and local investors to the market since last year. According to them, if the trend is sustained, with more companies listed through the recent Alternative Securities Market platform (ASeM), it would further deepen the market and enable NSE achieve its target of $1 trillion in 2016, adding that through this window, the multinationals and small scale businesses that are not
listed can have access to the market and further contribute to market growth. For instance, Oando Plc’ Right Issue, going by the report of Securities and Exchange Commission (SEC) made available recently on the Rights, showed that the company succeeded in raising N55.2 billion, indicating the high level of investor confidence in the company. Also, Transnational Corporation of Nigeria, Wapic Insurance and Resort Saving and Loans Plc also recorded huge success and patronage from investors.
Sterling Bank Plc’s ongoing right issue, according to them, is expected to attract patronage from investors and ‘tickle’ their appetite to invest. Public offers at the Nigerian Stock Exchange (NSE) had dried up since the recession, just as low equities’ prices and poor investor confidence had discouraged firms from raising capital in the public markets. Speaking on the issue, a market consultant with Delloit Investment Limited, Tunde Oyediran, said that
the recent improvement on the primary market is an indication that investor’ are regaining their confidence in the market. He pointed out that the impact of primary market activities in any market cannot be over-emphasized, adding that it deepens or expand the market, as witnessed in 2010 with the introduction of Dangote Cement, which, according to him, have contribute to the increase in market capitalisation and overall growth of the market. “This signal is good for the
market, no capital market in the world grow the market only on secondary market activities. This recent increase in the primary market activities through right issues of companies and its success is an indication that investors has released the importance of long term investment in good companies that have future prospect. “The strong rally observed in the Nigerian stock market for some time might spur the revival of public offers as firms seek more funds to expand their operations.
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Opinion Usage of biometrics in population census (1) By Felicia Oyekanmi OPULATION census is a systematic procedure of obtaining P and recording information about the members of a given population. It is the total head count or enumeration of all the people within a defined geographical territory, simultaneously at a particular point in time such as a fixed date often referred to as Census Day (Oyekanmi, 2008). A widely accepted definition of population census is that given by the United Nations (UN), as the process of collecting, compiling and publishing demographic, economic and social data pertaining to all persons in a country or delineated territory at a specified time (UN, 1975; cited in Oyekanmi, 2008). The practice is carried out by most countries of the world at regular interval to determine the size of a country’s population, as well as the characteristics of its people in terms of age, sex, marital status, ethnic background, income and educational level (Anifowoshe, 2008; Suberu, 2001). The UN recommends that census should be conducted every five years (quinquennial census) or every 10 years (decennial census). Whichever interval is adopted, population census is of paramount importance in almost all nations of the world, and is therefore recommended to be conducted at regular intervals (UN, 2010). Many societies rely on figures from population censuses as the basis for strategic management and utilisation of societal resources, planning and delivery of social services and distribution of resources across all levels of government (Anifowoshe, 2008; Osu, 2008). In Nigeria, population has been a major factor used for sharing or distributing the national resources since the Phillipson Commission in 1946 (Abdullahi, 2006). In fact, Abdullahi (2006) opines that population was the major principle because other parameters such as derivation and even progress, are relatively recent. It is in this light of being an important factor in resources distribution that has made it a source of controversies that always plague population censuses in Nigeria (Anifowoshe, 2008; Suberu, 2001). This situation has made the conduct of a credible population census in Nigeria difficult if not impossible; and for any proper planning in order to improve the quality of life of the citizens.. Several accounts exist to locate earlier instances of population census. Some of these accounts indicate that censuses have been taking place for thousands of years ago in many parts of the world. Literature suggests that the first known census was undertaken about 6000 years ago by the Babylonian in 3800 BC. According to extant literature, this census was undertaken every
six or seven years, and humans and livestock, as well as quantities of honey, wool, milk and vegetables were counted (Census Through History, n.d.). The oldest existing census in the world was taken in China during the Han Dynasty in the year 2 A.D. The census recorded the population to be about 59.6 million people, the world largest national population at the time; even till date (Population Reference Bureau, 2012). Census was also said to be a key element in the early Roman system of administration and was undertaken every five years, and provided a register of citizens and their property. In fact, the word ‘census’ is said to originate from ancient Rome, from the Latin word ‘censere’, which means estimate (Census Through History, n.d.). The Bible also relates stories indicative of the existence of census. For instance, the book of Numbers is named after the counting of the Israelite population during the Flight from Egypt (Osu, 2008). The above instances demonstrate that census is not a new phenomenon. Rather, it had been undertaken in earlier centuries for administrative purposes by governments. Be that as it may, what could not be revealed from the above reflection is whether census figures in these earlier human groups or populations suffered any form of falsification and inaccuracy, and generated controversies of destabilising proportion as is the case in Nigeria since the early 1960s. Some scholars opine that the first systematic head count of all the people in Nigeria was in 1911 and thereafter, attempts were made to maintain the exercise decennially, or approximately so (Anifowoshe, 2008; Suberu, 2001). However, Edewor (2008) and Oyekanmi (2008) observe that the first organised attempt at enumerating population, in what was known as census in Nigeria, occurred in 1866; but the exercises appeared to be limited to Lagos Colony (Oyekanmi, 2008). Later, there were two more counts in 1868 and 1871 because of the inadequacies inherent in the Census of 1866. By this record, it could be said that censuses in Nigeria predate the head count in 1911. After the 1871 census, population enumeration became decennial until 1891; although the exercises then were limited to Lagos Island and some parts of the mainland (Oyekanmi, 2008). The 1911 census marked the first attempt to extend census exercise to other parts of the country such as Calabar, Opobo and Bonny among others (Oyekanmi, 2008). It must be noted that the country then was administered separately by two different British authorities as separate territories, comprising the Protectorate of Northern Nigeria, with Lord Lugard as High Commissioner; and Protectorate of Southern Nigeria, with Sir Ralph Moore as High Commissioner (Abdullahi, 2006). The exercise did
not deviate from its decennial pattern after the 1911 head count; subsequently there were censuses in 1921 and 1931 (Anifowose, 2008; Oyekanmi, 2008). However, the census of 1931 was plagued with difficulties arising from the introduction of direct taxes on the people. There were “direct taxes on the people based on the number of wives and children which resulted in the Aba women riot of 1926 (Oyekanmi, 2008: 24). Consequently, a number of people refused to participate in the census exercise. For an elaborate record of the complexities that characterised the 1931 census, see (Oyekanmi, 2008). The Second World War between 1939 and 1945 precluded the conduct of a census in 1941; therefore, there was no census until 1952/1953, which happened to be the first ever thorough systematic census in Nigeria (Oyekanmi, 2008; Suberu, 2001). Although the 1952/53 census was adjudged comprehensive; relative to earlier censuses, but certain defects were recorded nonetheless. For instance, the 1952/53 census lacked simultaneity as enumeration continued at different times throughout the country for over a year” (Falodun, 1980; Oyekanmi, 2008:25). The census was also said to have under-enumerated the population because many people refused to be counted during the exercise, because they thought that the exercise was associated with taxation. The first census to be conducted after the country attained her independence was in 1962. The 1962 census was rejected by the government and subsequently cancelled because the figures were said to have been manipulated and blatantly inflated by the different regions (Oyekanmi, 2008; Anifowose, 2008). To that effect, a fresh count was ordered in 1963, but the 1963 exercise was also disputed and rejected by a segment of the population and the National Council of Nigeria and Cameroon (NCNC), one of the major political parties at the time (Anifowose, 2008; Abdullahi, 2006). In 1973, another attempt was made to organise population census by the then military government, but the exercise was inconclusive and had to be cancelled. Therefore, with all its defects, the result of the 1963 census became the basis of development planning in Nigeria until 1991 when another census was organised. • To be continued. • Professor Oyekanmi is of the Department of Sociology presented this paper at the Population Association of Nigeria First Distinguished Lecture, organised by PAN in collaboration with National Population Commission on July 4, 2013 at Abuja.
Segun Osoba: Celebrating a beacon By Banji Ojewale OUNT Rushmore is the home of a frozen history of the M United States of America. It parades giant busts of Presidents George Washington, Thomas Jefferson, Abraham Lincoln and Theodore Roosevelt, four men whose administrations straddled the first 150 years of U.S. history. Nestling in Rapid City, South Dakota, Mount Rushmore is a testimony to achievement, history and statesmanship. It tells the story of the giant strides of U.S. democracy trapped in the statues of the figures who drove noble and patriotic visions of nation building in difficult times. It is said to have attracted thousands of people from within and without the U.S. with visitors describing Mount Rushmore as the Shrine of Democracy. The project was begun by Gutzon Borglum on August 10, 1927 and completed 14 years later in October 1941, at the cost of $900,000, a princely sum then. It is a stately structure carved out of a solid granite cliff reaching high to 5,725 feet that is visible miles away. Each head of the four presidents is 60 feet high, suggesting that during their tenures they posted larger-than-life performance! Those who troop to the site return remarking that they are challenged to offer selfless service to society so that history would also note their contribution and record it to inspire upcoming generations. The Rushmore Four have exerted such sweeping influence that it is claimed that in moments of national distress, U.S. presidents often head there for inspiration. Now, if sculpted history of men of acclaim can move people to aspire to do better for mankind and society, it follows that more of such persons should both be celebrated and held up for mention in every generation. If Nigeria is today buffeted by failed values and falling (fallen?) standards guiding our national and private lives, does it indicate that we have no great masters to lead us or to teach us? Or is it a case of refusal to heed them? Either way, the point appears to be that a Mount Rushmore can be beneficial to aid the process of reshaping or reforming society, its people and the organs enabling their existence. Nigeria needs its own Mount Rushmore as much as my own professional constituency, journalism, does to galvanise us to higher levels of probity, accountability and selflessness in service to
man and God. We have all missed the mark on this score. We need some pep talk from past and living history figures. Marking the birthday of Aremo Segun Osoba today has drawn me to this discussion on the need to identify heroes of the nation and of its institutions. Today we mourn the absence (or is it loss?) of men and women who constitute examples of the staying power of principle, of those who in the face of personal peril, can stand up for what is right. I declare with solemnity that Osoba is one such person. He has evinced this both in his days as a practising journalist and as a politician. Let me cite a couple of events that support this position. In 1984, when we all stood in awe of Decree Four that sent Tunde Thompson and Nduka Irabor to jail, Osoba was the MD of Daily Times, owned by the military government under Muhammadu Buhari. Osoba took a mortal risk to enter the dock as a defence witness during the trial of the two journalists who were said to have breached the decree. Of course he was aware of what could befall him: dismissal and possible arrest by the ruthless military rulers. But he put principled professionalism first before personal considerations, even if it hurt! In the event, no harm came his way. Another occasion was when he was in charge at The Sketch in Ibadan. After the 1983 ballot, the government owned paper fell into the hands of the NPN administration of Governor Omololu Olunloyo. There was a tight-rope walk here: the two other ownerstates Ogun and Ondo were UPN-controlled. Again Osoba sought refuge in the unfailing time-honoured rock: the principle of balance. He broke the paper into parts, giving to NPN its due ( propaganda) and to UPN its share of stories. He didn’t accede to NPN’s demands for exclusive coverage of party stories. Nor did he blackout UPN. He says of this leveler policy: “We became very innovative in the designing of the pages and in balancing the stories that came our way. That is the only way you could be sure of survival. You must be professional, innovative and think ahead. It was not necessarily under the military alone. Even civilian governments are intolerant of criticisms. One must also be objective. When we carried stories that were offensive to the government, we balanced it with their reaction.” Respecting the ethic principle was constantly at work even when Osoba was Ogun State Governor on sabbatical from journalism during his second coming.
Between 1999 and 2001, he championed a non-party-based campaign over the payment of Excess Crude Oil Revenue due to the states. A hefty N198b windfall had accrued following the sharp rise in petroleum products in the world market from the second quarter of 1999. The price exceeded the 18 dollars per barrel projected in the budget. Then the FG, acting on the advice of the Central Bank, ‘sat’ on the money and refused to share it out to the states as was the practice. The state governments kicked against this sudden change in the rules of the game and threatened that unless their share was paid, they would as well reject their monthly allocations and trigger unprecedented social, political and economic paralysis nationwide. Osoba, an AD governor, waded in on the side of the PDP governors notably those in the Niger Delta who were vociferous in the agitation for the release of the excess funds. While his party was berating the ruling PDP for alleged maladministration, Osoba refused to join the blame game. He was reported to have finally broken the logjam by marshalling a strategy of lobby that required deft negotiations rather than open confrontation or politicking. I do believe that these are enduring virtues and values the nation needs to see reflect in its citizens for the regeneration of society. We want to see them in politics, in our homes, in schools, in interpersonal relationships, in workplaces and in a word, in our spirit, soul and body. If journalists do finally have their own Mount Rushmore (which we need) Segun Osoba should have his effigy there. Yet he told a reporter that the honour is due rather to others. He said: “I am not the best reporter. There are greater journalists alive. Sam Amuka is a man who has founded two major national newspapers and both are still alive today- The Punch and The Vanguard. Alhaji Lateef Jakande is the oldest living journalist for now. Alhaji Alade Odunewu is over 80. At the age of 77, Sam Amuka is still practising. He is the oldest practising journalist in Nigeria. There are greater journalists than I who still need to be celebrated… That would spur me to insist on us celebrating greater journalists who are still alive and greater than I.” What modesty! What self-effacement! Happy Birthday Aremo Segun Osoba! • Ojewale is a writer in Ota, Ogun State.
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Opinion SIM registration: Foundation for database By Nur Ibrahim Alkali NE of the greatest challenges facing develO opment in Nigeria is the absence of a reliable database on which developmental indices can be easily measured – be they biometric, geographical, social, economic or even political. The social system suffers from a shameful lethargy, to the extent that basic biodata such as registration of births, and deaths are no longer considered obligatory and are sometimes done only at the point of need, often with much distortion of facts and reality. Attempts at establishing a national database through the National Identity Management Commission have remained at the mercy of political and bureaucratic bottlenecks – the same fate suffered by the Independent National Electoral Commission (INEC) in its effort to create a national voters’ register. The initial enthusiasm which normally accompanies such policies at inception usually fizzles out as lack of political will with its attendant corruption conspire to kill such projects. Right now, another national identity registration scheme is about to be launched by the National Identity Management Commission (NMIC) across the 36 states of Nigeria and the FCT. Similar exercises have been conducted in the past, and ideally, any current exercise ought to be a consolidation of the previous ones. But from all indications, this will not be the case. On the sidelines, the Nigeria Communications Commission (NCC) has successfully uploaded more than 110,433,976 entries through the SIM card registration programme to its database facility. With an estimated 117 million, mobile telephone subscribers, this could provide the largest and most credible biometric data ever assembled on one platform in Nigeria. It is against this background, that the just concluded SIM card registration exercise is to be appraised. Although the exercise suffers from
the drawback that registration is restricted to only mobile telephone subscribers, it offers the widest reach for the easy capture of the biodata, including thumbprints and photographs of most citizens in an electronic/digital format. This is ready-made data that could be harvested for other purposes. From 2001 when GSM services began in Nigeria, SIM cards were sold without any form of documentation. Subscribers simply bought their parks off roadside vendors or mobile telecom shops and service centres and got connected pronto – and that was all. Now that a system has been established, it is expected that new subscribers would from henceforth, naturally have their biodata and other details uploaded to the database at the point of purchase of their modules just as a newborn child is issued with a new birth certificate. Informed by the rise in crimes facilitated by mobile phones, SIM registration is not only bringing Nigeria’s telecoms sector on par with global best practices, it was an important way of gauging telecoms penetration both for the regulator and the service providers. Towards implementing the project, the Commission convened a consultative forum involving stakeholders – telecom operators, consumers, security agencies, telecom associations, dealers, the Nigerian Identity Management Commission, National Population Commission, the media, etc, on ways to address the challenge. Following recommendations from the stakeholders, the board of the NCC approved the registration of all phone subscribers and the exercise duly commenced on March 28, 2011, when Dr. Eugene Juwah, the Executive Vice Chairman of the NCC, officially launched the SIM cards registration exercise in Abuja. Although the scheme officially ended in January 2012, the NCC granted a six-month extension which officially terminated on June
30, 2013. At the expiration of this date, service providers have been mandated to disconnect all unregistered phone lines. Although some members of the public have requested that registration be allowed to continue, it can be contended that the NCC has given a fair chance to all serious members of the public to have their modules regularised as it were. Operators can therefore, proceed with the validation, harmonisation and scrubbing of the records of all registered SIM cards and disconnect all defaulting users especially in the light of ongoing security challenges and growing crime rates. In undertaking the exercise, the NCC embarked on a complex job. The amount of data so far collated and the cost of the project which was and is still being done for free is staggering. But viewed alongside NIMC and INEC, the NCC had undertaken a task of such magnitude at what could be described as a ‘meager cost’ of N6.1 billion. Comparatively, INEC secured an initial budget of N74.69 billion for the registration of 70 million voters in 2010, and got a supplement of N6.6billion before it could register an estimated 73 million voters – thus grossing N80.75 billion. It needs no mention that thousands of adhoc staff had to be recruited and hurriedly trained for the exercise. Likewise, the NIMC has secured budget approval of about N40 billion for the national civic registration scheme. But given the difficulties such as infrastructure and trained manpower, the programme might just go the way it has done before. It would therefore be a major progress if the NCC and other agencies involved in biometric data gathering would be streamlined towards the possibility of integrating existing data such as SIM card registration for general use where applicable. There is go gainsaying the fact that the ability to set up one-touch data bases which can yield
on-the-spot details and information about any particular subject is the foundation for the success of advanced countries in Europe, America and Asia. This can be directly observed in crime where potential criminals in advance societies often go extra lengths to falsify their identities or erase traces before committing crimes to evade the law. This is because every detail about everyone is known and can be accessed or retrieved at the punch of a button. Ideally therefore, one would expect the Federal Government and other respective agencies, rather than embark on duplicating what the NCC has done, to simply augment or complement this effort by beginning to register only the identities of those Nigerians who have not been documented because they are not mobile telephone users – especially the under aged and the aged or disabled. This would save the country billions of naira and other difficulties. In other words, through inter-agency cooperation, projects such as voter registration and national identification can be more easily (and cheaply) facilitated given the solid foundation the NCC has provided. Although the original aim of NCC’s SIM registration scheme is to facilitate the collation of data and assist security agencies in resolving crimes and by extension to enhance the security of the state; to provide data about phone usage in Nigeria; to enable operators to have a predictable profile about the users in their networks; and to enable the commission to effectively implement other value added services like Number Portability among others, the same information can be appropriated for other uses as occasions may warrant. Hopefully, with the march towards convergence of all media and communications services, a time would come when Nigerians would become wary of going to swear affidavits of age declaration and other documentary adjustments for the simple fear of self contradiction. • Engr. Alkali is a communications consultant based in Abuja
The second Ahiara declaration (1) By Raphael Okunmuyide HE unabating crisis in Ahiara diocese offers T interesting comparisons of the publicly declared war-like opposition to Peter Okpaleke’s episcopal enthronment (“second Ahiara declaration”) with the original Ahiara declaration (“Principles of Biafran revolution”) by “General” Ojukwu on 01/06/69 which, according to Chinua Achebe, ‘was called ‘Ahiara’ because Ojukwu’s headquarters, at the time, was a camouflaged colonial building in the village of Ahiara.”! The “second Ahiara delaration” was made by over 400 Catholic priests who wore black dresses, marched through major streets with placards and chanting anti-Vatican slogans on 16/05/13. The six-page declaration, signed by the President and Secretary, Ahiara Diocesan Priests Association, Austin Ekechukwu and Dominic Ekweariri included: “We, the priests and lay faithful of Ahiara Diocese, having in view the peculiarities of our diocese, state that we categorically reject the appointment of Msgr. Peter Okpalaeke as the bishopelect of Ahiara Diocese...Our opposition of the appointment of Msgr. Okpalaeke draws from our perception of the paramount importance of the salvation of the souls of our people...To us the priests of Mbaise, who are being maligned and embarrassed by Msgr. Okpalaeke’s appointment, it is an enormous injustice and cannot be allowed to stand as we have a strong moral obligation to fight injustice in the portrayal of the priests of Mbaise as incompetent, lacking faith and moral probity that the office of the bishop demands...” Also the “youths” locked the cathedral on 21/05/13
while Okpaleke was being ordained in Owerri, vowing not to allow him into the cathedral and insisted that the diocese will remain without a bishop indefinitely, as a tragic precedence. Key similarities in the two declarations include Ojukwu’s: “.. I have for a long time thought about this our predicament – the attitude of the civilised world to this our conflict. If all the things that have happened to us had happened to another people, the world’s response would surely have been different..Our enemies and their foreign sponsors have deliberately sought by false and illmotivated propaganda to cloud the real issues which caused and still determine the course and character of our struggle… They have sought in various ways to dismiss our struggle as a tribal conflict. They have attributed it to the mad adventure some of a fictitious powerseeking clique anxious to carve out an empire to rule, dominate and exploit. But they have failed. Our course is transparently just and no amount of propaganda can detract from it..In our struggle we have learnt that the right of self-determination is inalienable..We believe that God, humanity and history are on our side and that the Biafran revolution is indestructible and eternal..” But the “second Ahiara declaration” contradicts Ojukwu’s ”...there is no justification for anyone to introduce into the Biafran fatherland, divisions based on ethnic origin, sex or religion. To do so would be unpatriotic..” (vis-a-vis the currently bellicose and bitterly divisive Awka/Ahiara diocesan episcopal contest) and the last-and-shortest sentence in his declaration: “Oh God, not my will but thine”. Since
Ojukwu publicly surrendered his war-struggle to God’s will above his military-victory desires, the strategy and tactics being resolutely implemented by the Ahiara priests are a complete reversal of Ojukwu’s submitting his will for the Biafran revolution to God. Clearly, the lock-out of their Bishop from the cathedral and other covert/overt acts that spurned the “the-Lord-has-given-no-one-permission-to-sin” rule (Sirach 15:21), were neither for their nor “the salvation of the souls of their people.” The priests’do-or-die combat for Ahiara episcopacy suggests that many students enter the seminary with the main goal of becoming bishops similar to the manner in which the politicians enter political parties to contest for political office, with rival followers/camps mustering support for their candidates in the hope that they will be rewarded with the spoils of office once their sponsored candidates win the elections. This could possibly be partly why Pope Francis, on 21/06/13 charged the Nuncios to recommend “Pastors” of souls rather than (birthright)“Princes” as candidates for the episcopacy in their countries of assignment. How can priests who disregard the counsel of local bishops and disobey the Pope expect the laity to obey/listen to their sermons/homilies within the Eucharistic celebration in addition to other social and pastoral guidance required for improving their spirituality toward their “salvation”? The priests’ angst against the Vatican is intriguing because individually and as a group, they created the crisis by breaching the confidentiality and impugning the integrity of the established but highly discreet process for electing their Bishop during which they
formed an illicit “union” to confront the church’s hierarchy. The breaches severely compromised the system and were procedurally and spiritually grave enough to deserve heavy duty canonical sanctions. Normally, no lizard can enter a house if some holes/crevices have not been structurally or carelessly created. It was this process-breach that compelled extra-diocesan intervention (against which they are protesting) in filling the episcopal vacancy, thus de-naturing their protest to a “post hoc ergo propter hoc” (after this, therefore because of this) fallacy. If the Cardinals breach the Conclave rules and process for electing a Pope as the Ahiara priests did in electing their Bishop, the resultant disharmony in the Church’s leadership and followership would have led to her institutional collapse. This is why their aggressive “lavabimus manus nostrae inter innocentes” (we will wash our hands among the innocent) stance is untenable. Hence this writer opposes their protest on the principles that he whose hands are not clean should not seek equity in the court of justice and that the church should not be limited to the son-of-the-soil criterion (“mbaiseism”) in filling episcopal vacancies since she does not incardinate priests in any diocese solely on the criterion of place of birth. Also, as Nigeria’s precipitate decay of all moral ethos is degenerating to a state of total normlessness, must the sacredness of the Catholic Church’s episcopacy (and the priesthood) become a trading commodity that, after use, becomes a dustbin item that is swept by the flood of reckless materialism into the wasteland of collapsed/failed social institutions? • To be continued. • Raphael Okunmuyide wrote from Lagos
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Media Debating government-media relations By Yushau A. Shuaib HE debate over whether the government and T the media are friends or foes was rekindled at a recent interactive seminar on Responsibility to Report (R2R) organised by the Development Research and Project Centre with funding from the Dutch Government in Abuja. The seminar was similar to the recently concluded National Civil-Military Dialogue, where the National Security Adviser, Sambo Dasuki sought the cooperation and understanding of Nigerians on the ongoing military’s intervention in fighting insurgency in the country. Unlike the Military-Civilian where former Heads of States and top public functionaries were in attendance, participants at Responsibility to Report were mostly spokespersons from emergency response agencies like the military, police, NEMA and volunteers. The media too were adequately represented with editors, producers and bloggers in attendance. I had the privilege to be one of the facilitators that included Abdul Raufu Mustapha of Oxford University, and Ms. Femke Van Zeiji from The Netherlands. Prof. Ralph Akinfeleye the respected Mass Communication scholar, was the Keynote Speaker who dropped the bombshell that triggered a lively interaction throughout the programme. While attempting to be neutral in his assessment of the relationship between the government and the media, the academic dwelt on the power of the media, its influence in the society and the inherent loophole in the freedom of information law among others. The Editor-in-Chief of Premium Times, Dapo Olorunyomi, who was also a facilitator agreed with most of the arguments raised by the Professor and further echoed non-transparent nature of government and the alleged shabbiness in the implementation of freedom of information law in Nigeria. They both reinforced the general belief that the media is powerful as the Fourth Estate of the Realm, while I also responded that the government seems to be more powerful because all the other Estates: the Executive, Legislative and Judiciary are within its realm (government.) While the two argued that government and the Media cannot be permanent Friends but LOYAL OPPONENTS, I advanced the view that the spokespersons in government can be friends with the media on behalf of their organisations through mutual respect and dignified reciprocal relationship. ROFESSOR Akinfeleye emphatically supported P the submission of former America President, Thomas Jefferson who said that if he was to choose between a Government without a Press, or a Press without a Government, he would not hesitate to choose the latter! This submission I argued, cannot hold if every person is investigating and probing into one another as a reporter, without a law by legislators to protect the people, and the existence of the judiciary to adjudicate over disputes and the executive arm to check excesses and unethical practices. Such a society, I pointed out can only exist in a jungle, where there are no rules of law but animalistic interpersonal relationship. There is no problem with any government. Antics of some characters in government create the negative perceptions about public institutions. Added to the unbecoming and petty behaviours of some officials in government is the reality that public information management is very weak largely due to unskilled manpower, ill-equipped departments and political interference where a seeming straightforward and truthful information is deliberately distorted for egocentric ambitions of principals. In fact the Freedom of Information Act (FOI) could not have been a necessity if the public information officers have been allowed to discharge their roles responsibly and professionally. STUDY and adherence to basic principles of A Public Relations could be a clear guide for spokespersons rather than the fire brigade approach and combatant posture of such image
A cross-section of participants at the Responsibility to report seminar... in Abuja managers to simple issue management. Therefore spokespersons, as the intermediaries between the government and the media, should not only rely on prerequisite and relevant qualifications and experiences but should have humane temperaments and friendly dispositions while discharging their responsibilities. While a well-trained and well-behaved public officer can easily court friendship of the media and earn the respect of the public, journalists too should imbibe the PR instinct and principle by initiating cordial relationships with officers in government to minimise mutual suspicions and misgivings. At the end of the seminar, participants issued Guidelines for Communication in Times of Conflict for Government, Media and Civil Society in which they recommended that the media should always separate facts from opin-
ion while urging journalists to be mindful of public and national interest in providing honest, factual and accurate information at all times. While participants agreed that there are presently neither laws nor regulatory bodies to monitor and check online and Social Media in Nigeria, they strongly recommended capacity building and training on the use of latest technology for effective communication by those in government and the media. Public officers and spokespersons were advised to establish and sustain a mutually respectful relationship with the media, which should be professional and transparent. On the other hand, media owners were urged to improve the working conditions of their employees, while journalists were cautioned that “regardless of the circumstances, they should not expect, accept or offer inducements to publish reports.”
FRCN gets new director general EASONED broadcast administrator In 2010, the management of FRCN secSexpert, and marketing communication onded him to head the Lagos office as Mr. Bola Agboola has been ele- Director, Lagos Operations and in vated as Acting Director-General, Federal Radio Corporation of Nigeria (FRCN). He has since assumed his new duty at the FRCN Headquarters in Abuja with a cognate experience spanning a period of over 25 years. This cuts across advertising, public relations, marketing and broadcasting. Agboola started as an advertising practitioner in 1990 when he worked as Client Service Manager for Rock Forte Advertising Agency in Surulere, Lagos. He later moved to advertising regulation when he joined the Advertising Practitioners Council of Nigeria (APCON) in 1993 and rose to become the Registrar/Chief Executive (though in acting capacity) from June 1, 2005 to August, 2006. In September 2006, he moved to the Federal Radio Corporation of Nigeria (FRCN) as the National Director of Marketing for all the 36 FM stations of the corporation spread across the country.
January this year, he was moved to Ibadan as the Zonal Director, FRCN for the South West. Some of the stations under his supervision included Premier 93.5 FM, Amuludun 99.1 FM (both in Ibadan); Paramount 94.5FM, Abeokuta; Positive 102.5 FM, Akure; Gold 95.5 FM, Ilesha; Progress 100.5 FM, Ado-Ekiti among others.
Agboola
The interactive session was not only lively, the active participation of Director Defence Information, Brig-General Chris Olukolade and Police Force Public Relations Officer Frank E. Mba at the event created the enablement for frank and sincere talks between the spokespersons in government and the representatives of the media that included online bloggers. One message is clear: whether in government or out of government we must protect and promote public and national interests for the economic growth not minding the misdemeanour of few individuals in the media or in public office. The message in all these which was also conveyed at the Civil-Military Dialogue is the need for harmonious relationship in Nigeria where the citizens live peaceful without fear of misrepresentation which could lead to hatred and unwarranted attacks.
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Sports Keke thrashes Oriwu as Ikotun girls lift GTB Principals’ Cup
Furore over contract award for OAU 2013 NUGA Games By Christian Okpara HAT would cause an W institution to reject the best available option for the least qualified in the award of a contract for the construction of an international standard tartan track? This is a question a group wants answers from the authorities at the Obafemi Awolowo University ife, ile-ife and Zenith Bank. Zenith Bank is providing N70 million out of the total cost of the contract. According to the group, which pleads anonymity, the local organising committee of the 2013 NUGA Games billed for OAU towards the end of the year, awarded a contract worth N191, 146, 110.75 for the construction of an eight-lane tartan track at the university ahead the games. The group alleged that the contract was awarded to Vast international Limited despite its bid not being the best among the four contenders for the contract. The documents tendered by the group indicates that in the four categories used in ranking the contending companies, including competence (past performance), financial/technical capability/equipment, completion period and financial bid, Sports-Life was chosen by the bid committee as the best bid, Vast international came second, Pro Point was third, while dynamic Sports Solutions Limited was
fourth. Sport-Life Services bid sum was N139, 154,338.68; Pro Point (N128, 520,000.00), Vast international (191,146,110.75), while dynamic Sporting Solutions Limited bid N105,141,018.40. Alleging foul play in the contract award, the group said, “on May 8, we got a message from Zenith Bank to come to the bank to discuss the construction of the tartan track. Then on May 28 or so, i was told that the job had been awarded to Vast international. Our bid was N50 million cheaper. “Later, Zenith Bank told us that they had nothing to do with the bidding, adding that there job is to ensure their money is well spent. “We were invited to a meeting on May 8, when they had already made up their mind to award the job to another contractor, which already had its equipment on the site. They only wanted to use us as alibi that a bid for the contract was conducted.” When contacted the Vice Chairman of the Contract Award Committee, Prof. Augustine isichei said he had nothing to say about the issue since his committee did its work and handed over the documents to the vice chancellor of the school. “if you have any question, you should direct it to the vice chancellor or Zenith Bank. We just did our work and that is that,” isichei, who is the chairman of the OAU Sports Council, said.
Taekwondo boss, Ashiru, becomes CTU VP reSideNT of the Nigeria P Taekwondo Federation (NTF), George Ashiru has been elected vice-president of the Commonwealth Taekwondo Union (CTU). At the annual general meeting (AGM) of CTU held in Puebla, Mexico at the weekend, Ashiru was elected based on his contribution to the sport and this would help to strategically re-position the country at global stage. The NTF boss, a pioneer member of Team Nigeria to the 1987 All Africa Games is also a medalist at the games. Prior to his election in May as NTF President, Ashiru has been championing the sport in the country and presided over the Nigeria Taekwondo Black Belt College (NTBBC). Ashiru’s victory at the ongoing 2013 World Taekwondo Championships serves as a major milestone for the NTF board, while it will also afforded him the opportunity to be part of the World Taekwondo Federation (WTF) General Assembly, which took place yesterday. The NTF boss also voted alongside other presidents (or designated reps) of over
170 member nations for the leadership of the WTF. Meanwhile, the weigh-in for competitors will also begin today (Monday) in the female -46kg and male -58kg categories. Nigeria’s first competitor, Usman Sulaiman (-58kg Male) will be among the athletes while NTF is hopeful that the unique experience the athletes would garner coupled with the political victory would be hugely beneficial to the development of taekwondo in Nigeria.
By Tony Nwanne He 2013 season of the yearly T Lagos State/Guaranty Trust Bank Principal Cup football
Nigerian international sprinter, Obinna Metu, is a product of the NUGA Games.
Arsenal issues transfer ultimatum to Higuain ArSeNAL has urged Gonzalo Higuain to reach a decision regarding his future, according to reports from The Metro. The Gunners have been pursuing the Argentine hit-man for a number of months, and were believed to be on the verge of tying up a deal just a matter of weeks ago. However, the player himself appears to be stalling as he weighs up his options, with Carlo Ancelotti’s plans at real Madrid believed to have impressed him. Arsenal has reportedly agreed a club record fee with the Spaniards, and have settled on a £150,000-per-week contract with the 25-year-old. Although they are still keen to conclude the move, Arsenal is growing frustrated by Higuain’s failure to commit. Arsene Wenger is desperate
national has been the subject of a transfer tug of war in recent weeks as both the north London club and their Serie A counterparts have gone head to head for the shot stopper’s services. The 33-year-old has only been at Loftus road since the beginning of last season, after QPr Head Coach, Harry redknapp brought the player to west London from italian giants inter Milan, on a fouryear deal. However, despite shining in 26 matches overall in all competitions for the struggling top-flight outfit, including in 24 contests in the Premier League, Cesar’s form between the sticks in the capital was still not enough to prevent redknapp’s men from being relegated to the Championship come May.
Fenerbahce set to ship out Yobo, Martins injured again UPer eagles Captain, Joseph Yobo may be sent on loan to another Turkish club, Gaziantepspor, following a new rule on foreign players. Yobo’s club, Fenerbahce, has 11 foreigners and are looking for a way to cut it to the allowed 10. And the Turkish cup winners have just secured Alves Bruno, who plays the same role as Yobo and the Nigeria defender is being rumoured to be the one to give way. Foreigners at Fenerbahce include Christian Baroni,
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to kick start his summer business, and has urged the prolific front-man to reach a decision to avoid a transfer window of uncertainty. The Frenchman has made attacking reinforcements one of his priorities, as he looks to secure a smoother passage to Champions League qualification and mount a possible title challenge next season. if Higuain opts to stay at the Bernabeu, the Londoners may up their interest in wantaway Liverpool star, Luis Suarez, who is valued at around £40m. Meanwhile, Napoli appear to have beaten Arsenal to the signature of Queens Park rangers goalkeeper, Julio Cesar, this summer, according to reports in the Mail on Sunday. The highly rated Brazil inter-
Milos Krasic, raul Meireles, Pierre Webo and Miroslav Stoch. The 32-year-old Yobo has spent a season and a half at the top istanbul outfit after he first moved there on loan from english Premier League side everton. Another Nigerian international, Obafemi Martins is nursing a calf injury and as such did not feature for Seattle Sounders against San Jose earthquakes. ‘Obagoal’ suffered a calf injury in the game against Vancouver and so was ruled
out of the weekend game. The former Levante of Spain striker has been unlucky with injuries since he joined the Major League Soccer (MLS) side. “Oba still hasn’t recovered from the kick he took in the calf in the Vancouver game,” disclosed Seattle Coach, Sigi Schmid. Martins was picked for the MLS Team of Week 20 following his brace against dC United. He has scored seven goals since he joined Seattle Sounders.
competitions came to an end at the weekend, with Keke High School, Agege, outclassing hard fighting Oriwu Senior Model College, ikorodu in the final match. Keke won 51 in the male category at the Teslim Balogun Stadium, Lagos. Goals from Keke High School’s richard Sodje gave the school an edge over Oriwu Senior Model College, alongside the prowess of the players while on the field of play. in the female category, ikotun Senior High School, ikotun defeated the third time semi finalists, CMS Girls High School, Bariga, in a penalty shootout that ended 4-2, to also emerge the winner of the competition. Speaking after the matches, GTB Managing director, Segun Agbaje, said sponsoring the Principal’s Cup and Heritage Cup was not as cumbersome as envisaged. He added that the Principals Cup aimed at reviving the interest of the foundational schools, which started as far back in 1954. He said, “we run Principals’ Cup, run the Heritage Cup, then we play a Super Cup final between the winners of the two competitions.” Agbaje reaffirmed the bank’s commitment to the staging of the competitions, saying, “we just want to give back to the society, and we have decided that the way to get back is through young people. “We believe that young people are the future, so we are creating a platform for them to express themselves and compete honestly. That is what the competition is all about.” The coach of Keke High School, Adekunle Kamilu, expressed satisfaction after his team won the final match, saying that it was due to the concerted efforts put in during training and retraining of the team.
Sailing Federation sad over treatment by Canadian embassy From Ann Godwin, Port Harcourt He Nigeria rowing and T Sailing Federation has expressed sadness over the refusal of the Canadian embassy to issue visas to its athletes billed to represent Africa on July 24 at the qualifiers of the international rowing event. A statement signed by its President, Festus Porbeni, said, “as a former ambassador and representative of the Canadian consul in Nigeria, i find it sad that the Canadian embassy will deny Nigeria rowing Federation the opportunity to represent Africa in the forthcoming qualifiers.” Porbeni appealed to the Canadian embassy change its stance, noting that several companies in the country have indicated interest to support the athletes.
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Nigeria places 30th as 2013 IAAF World Youth Championship ends From Gowon Akpodonor, Donetsk, Ukraine EAM Nigeria’s only medal hope in the boys 200m, Ejowokoghene Divine Oduduru yesterday finished sixth to take the country to
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the 30th position on the placing table, as the 8th IAAF World Youth Championship ended in Donetsk, Ukraine. Oduduru, who injured himself in the race, returned a time of 21.37 seconds. Having
been admitted in the IAAF Medical centre soon after the race, he was replaced in the boys medley relay event, where Nigeria finished 7th. Jamaican Michael O’Hara won the 200m in 20.63 seconds, while Brazil’s Victor Hugo Dos Santos and Cuba’s Reynier Mena were second and third respectively. Oduduru’s sixth place finish, moved Team Nigeria from 39th position to 30th. The country finished 5ft in the girls 400m and 8th in the boys’ 110m hurdles. Though no medals were won, Team Nigeria was able to reach four finals as against the three finals at the last edition in France. Top athletics countries such as Bahamas, Colombia, Belgium, Canada and The Netherlands occupied between the 43rd and 52nd positions at the close of events yesterday. Jamaica with six gold and two bronze medals was top on the table, followed by Kenya (four gold, three silver and four bronze.) Australia and Ethiopia had three gold medals, while the United States finished with two gold medals. Hosts, Ukraine had one gold.
Team Nigeria captain to the 2012 London Olympics, Chika Chukwumerije (left) fights against Cuba’s Robelis Despaigne during the first round of the men’s +87kg at the ExCel Arena in London.
Team Nigeria begins campaign at Taekwondo World Championships in Mexico By Olalekan Okusan Agege’s Keke High School and Ikorodu’s Oriwu Senior Model College players compete during the final of the season four of the yearly GTB Lagos Principals’ Cup held at the Teslim Balogun Stadium at the weekend. Keke won 5-1 to lift the trophy in the boys’ event. PHOTO: FEMI ADEBESIN-KUTI
North Bank wins 2013 Fidelity Bank Games By Tony Nwanne ITH four gold, two silver W and three bronze medals, the North Bank zone at the weekend emerged the over all winners of the Fifth Fidelity Bank Games held at the Sports Centre of the University of Lagos. At the games, which drew participants from all the zones of the bank, Lagos Mainland came second with three gold, one silver and one bronze medal, while the South West zone took the third position with one gold, one silver and no bronze medal. Lagos Island had one gold medal only to take the fourth position, the South East was fifth with three silver and three bronze medal, while Abuja had one silver and bronze medals to occupy the sixth position. South South with one silver medal took the rear. Among the top performers in the hotly contested games, which was spiced with splendid cultural displays by representatives of the zones, was Ann Okafor of Lagos Mainland, who won both the 100 metres and 200 metres sprint women. She beat Mary Linus of the South East to the second positions in both races to claim the gold medals. Hannah Ogbor of the North Bank won the 100 metres women bronze medal, while Maduekwe Nkeiruka, also of North Bank took the bronze in the 200 metres. North Bank’s Adamu Mohammed won the men’s
100 metres gold, Mark Emeje of Abuja took the silver, while Chukwunyere Nwogu of Lagos Mainland won the bronze. In the 200 metres men, Joel Audu of North Bank won the gold medal, Promise Ogosh of the South South took the silver medal, with the bronze going to Ikechukwu Onuoha of South East won the bronze medal. The North Bank beat defending champions, South West to win the gold medal in the football event, while the South East settled for the bronze medal. Speaking on his impression of the games, Fidelity Bank’s Managing Director, Reginald Ihejiahi, who led top management staff of the bank to the event, said he was thrilled by the performance of the athletes as “each games brings out the best in our people.” He said the games shows the team work that is the hallmark of Fidelity Bank, adding that coming together outside the work environment has brought the officers closer to themselves. “The first thing we thought of was to create an atmosphere where people can come out as a team to work towards one goal. That is to create the team spirit in our people to vie for honours in a convivial atmosphere. This event involves all levels of staff. They are able to come together to compete in a wonderful atmosphere. It helps our staff to bond and relax in an atmosphere devoid of the pressure of work,” he said.
THREE-MAN Team Nigeria A contingent will today begin its quest for honours as the 2013 Taekwondo World Championships kicks off in Puebla in Mexico. The seven-day tournament is organised by the World Taekwondo Federation (WTF) with 16 events to be jostled for by hundreds of athletes drawn from more than 120 countries. In the seedings released by WTF ahead of the champi-
onship, Team Nigeria captain to the 2012 London Olympics, Chika Chukwumerije has been seeded ninth among the 13 athletes seeded in men’s +87kg category with 50 athletes jostling for medals in the division. Also, Chukwumerije’s conqueror in the first round of the 2012 London Olympics, Cuba’s Robelis Despaigne is seeded second behind London Olympics medalist, Gabon’s Anthony Obame. Also, Chukwumerije may likely have to contend with
his victim at the 2012 Olympics qualifiers, Cote d’Ivoire’s Firmin Zokou, who is rated eighth. The Beijing 2008 Olympics bronze medalist will take to the ring on Friday July 19. Also, 2011 All Africa Games gold medalist, Uche Chukwumerije is rated ninth among the 14 athletes seeded in the men’s -87kg. Over 54 athletes will take to the ring on Friday July 19 when action begins in the division. However, Usman Sulaiman, who will be competing in the
Inter-club tournaments resume in Lagos sports arena comes L18thAGOS alive again after the last National Sports Festival as all the 36 sports associations begin their Quarterly Inter-Clubs Competitions. The Ministry of Sports, Youth and Social Development and the Grassroots Sports Development Office would facilitate the competitions, which will be organised by the sports associations. The multi-sports competitions are designed purposely to keep athletes of the state busy and a veritable platform
to discover pool of athletes for future national competitions. Commissioner for Youth, Sports, and Social Development, Wahid Oshodi said the sports association would resume the tournament this month. A check across all the sports associations revealed that they have been preparing in earnest for the events, as disbursement of funds for the competitions is currently going. Some of the chairmen of
sports associations who spoke on the readiness of their associations for the competitions commended Governor Babatunde Fashola for the initiative of the quarterly competitions which are aimed at evolving new pool of athletes where individuals, schools (public/private), private clubs (enterprises, small shops owners/offices), corporate organisations (banks, insurance offices) and public corporations can participate as clubs in all the activities.
Managing Director and Chief Executive Officer, Fidelity Bank Plc, Reginald Ihejiahi, inspecting contingents from the South West Bank at the Fifth Fidelity Games held at the Unilag Sports Center… on Saturday.
men’s -58kg is not seeded in the category as the 2011 All Africa Games bronze medalist will begin his campaign today at the Puebla Exhibition Center, which is known to be the largest exhibition center in Latin America.
Wheelchair Tennis Abuja gears up for Golden Penny Clinic HE 2nd edition of the Golden Penny Foods Wheelchair Tennis Clinic will hold from July 21 to 28 in Abuja with states from the central part of the country taking the center stage. Benue, Niger, Plateau, Nasarawa, Taraba, Kogi and the Federal Capital Territory (Abuja) are some of the states that have confirmed their participation in the event, which holds at the National Stadium, Abuja. Vice President of Flour Mills Nigeria Plc, makers of Golden Penny Foods, John Coumantaros said the Clinic is to discover more players for Nigeria ahead of major international sporting events including the 2014 National Sports Festival (NSF), as well as, the next All Africa Games. While acknowledging Nigeria’s rising profile in the sport, Coumantaros restates Golden Penny Foods’ commitment to the development and popularity of wheelchair tennis stressing it serves as an avenue for the physically challenged to be independent, as well as, opening a window of opportunities for them while they compete in competitions at national and international stages. Kano State hosted the inaugural edition in May 2012, which featured over 300 players from eight states.
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Monday, July 15, 2013
Conscience, Nurtured by Truth
By Victor Emejuiwe HE constitution of the Federal Republic of T Nigeria as contained in Section 14 (b) clearly states that the security and welfare of the people shall be the primary purpose of government. Also Section 16 (a) and (b) of the same constitution provides that; the state shall harness the resources of the nation and promote national prosperity for an efficient, dynamic and self – reliant economy. It states further, the state shall see to it that the national economy is run in such a manner as to ensure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity. The foregoing provisions are definitive of the objective of governance; it also implies that the citizens have a right to demand for nothing less than what is provided for them in the constitution. The social and economic right of citizens as contained in the International Covenant of Economic Social and Cultural Rights to which Nigeria is a signatory, provides for the right to education, housing, right to adequate standard of living, right to social security and right to health. The Federal Government is meant to inculcate all of these provisions in its yearly budget through a macro economic planning framework. The legal instrument for planning is the Medium Term Expenditure Frame work (MTEF) and the budget; the medium term expenditure frame work is the planning document of the state also known as the macro-economic framework that sets out the macro-economic projections of the government for the next three financial years. It also sets out the underlying assumptions for meeting those projections (See FRA Section 11). The budget should, therefore, be prepared based on the MTEF and by implication the contents of the budget should reflect the macroeconomic plan contained in the MTEF. The use of MTEF in budget preparation gives clear guidelines on what the priorities of the state are, and it makes it easy for citizens to know the policy direction of the government. The Yar’Adua eight- point agenda was contained in the MTEF of 2009-2011, but the current administration set up its own macro-economic development plan of 2011-2015 known as the transformation agenda. The transformation agenda has the following key thematic areas: governance, human capital development, infrastructure and real sector. The key thematic areas are summation of priority sectorial issues, including agriculture, manufacturing, oil and gas, trade and investment, culture and tourism, education, health, youth and women development, power, transport, water, security, public service reforms, anti-corruption, as well as foreign and economic diplomacy. Obviously, the entire proposal listed in the transformation agenda is germane to the welfare and happiness of the citizens, but unfortunately they are minimally represented in the budget. The budget implemented so far from 2011 and 2012 does not provide the much-needed impacts expected from the transformation agenda. The amounts appropriated for key sectors that should reflect the government’s commitment to transform the economy are mostly low. Also the line items listed against those appropriations are similar to what had been done in the past. Most of those line items are repeated items with unjustifiable sums attached to them. The budget of the transformation agenda has a problem of underutilisation of funds by the MDA’s. This could be as a result of lack of capacities in some MDA’s or the practice of not cash-backing the funds released to MDA’s. Some of the problems highlighted above are responsible for the failure of the transformation agenda in the past two years. The midterm report does not show any departure from our past budget performance, the worsened poverty and increased unemployment are evidence to back this position. On the perception of the word “transformation”, the perceiver conceives the mental notion of complete change into something with improved condition or appearance. Understandably, the transformation agenda is a four-year plan with only two years gone, but there are no signs that the life time of the agenda would bring about the needed change expected for the citizens. The signs for a true transformation start with a committed fight against corruption. Corruption is the bottleneck against any positive agenda. It must also follow with the enforcement of the rule of law on every citizen. The quality of budget also reflects the level of commitment the government has towards the citizens. In this regard, the capital budget must be higher than recurrent. This implies that the government must reduce waste in the system. The capital budget must also be implemented to the full. This scenario has not been the case of the current transformation agenda. Corruption is
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Budgeting for development and citizens welfare
Minister of Finance, Dr Ngozi Okonjo-Iweala still in vogue; there are no links with what the government proposes to do and what it provides in the budget. M Capital budgets are still under-utilised, etc. There is definitely no way we can continue in this direction and expect to see a different result. To back this position, a review of the midterm report on health, housing and education against its allocations in the budgets of 2011 and 2012 show why the citizens do not feel the impact of the transformation agenda. The midterm report reveals, in the health sector, for example, that the government launched a programme to save one million lives and between 2011 and 2012 over 433,650 lives have been saved through multiple interventions in malaria control, nutrition, routine immunisation and essential commodities. This effort was possible with the aid of International development partners and in collaboration with Federal MDA’s. The government also claims it is improving tertiary health care, and as such, it has rehabilitated and equipped the Federal tertiary hospitals, (the number was not stated). It also reports that, two additional hospitals (Obafemi Awolowo University Hospital, Ile-Ife and the University of Benin Teaching Hospital, Benin, have been upgraded and completed, while the Nnamdi Azikwe University Teaching Hospital and the University of Calabar Teaching Hospital are at advanced stages of completion. The Federal Government also claims to have refurbished 1,500 primary healthcare facilities
and supplied them with the essentials to increase delivery in skilled- birth. According to the reports obtained from the Budget Office website, capital budget for health in both 2011 and 2012 has a total allocation of N116.36 billon but only N69.3 billion was utilised. Looking at the prevailing health needs of Nigerians, a capital budget of N69.3 billion is too meager to satisfy these needs in two years. Nevertheless, the projects conducted from this report are too minute to justify the high value expended for it. A recent report prepared by the NOI poll on May 2013 reveals that about 79 per cent of Nigerians lack access to good health care. It goes further to state that five out of every 10 Nigerians rely on private hospitals; and that the poor health care facilities and even lack of these are factors responsible for high rate of infant mortality experienced in the country. The projects claimed to have been done under the midterm report are fundamental, but they are not far reaching, health care and medical service have to be made accessible and affordable for every Nigerian in government hospitals. A national health insurance policy should have been mainstreamed for every Nigerian with a low premium. In Housing, the transformation agenda rightly recognises that the provision of accessible and affordable housing is a strategic national imperative that can guarantee the well- being and productivity of the citizenry. It also admits that Nigeria currently has a housing deficit of
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about 23 million houses that should be met by 2020. In the last two years, the transformation agenda claims it had provided over 468 prototype housing, 1,754 housing units, is constructing 255 housing units, has completed a total of 1,756 through the FHA and has provided 4,934 mortgages through the Federal Mortgage Bank of Nigeria (FMBN). The agenda goes on to claim that it has provided 7,510 housing units through Estate Development Loans, created 3,787 service plots of land and issued 2,131 C of O’s. From this report, it is obvious that not much was achieved in the area of housing. The distribution in the foregoing does not in any way fit into the Mass Housing needs of 70 per cent of Nigerians. The trend of allocation and provision of housing has always favoured real estate entrepreneurs who sell them to networth individuals. For mortgaging system of housing, it is only those with sustainable jobs that benefit from it. Under the universal declaration of Human Rights as ratified by the Economic Social and Cultural Right, the African Charter on Human and Peoples Right, and in line with the provision of Section 16 (d) of the 1999 Constitution, every Nigerian should be given a suitable and adequate shelter irrespective of his economic status. This means that the market woman, mechanic, driver and every other person classified under the informal group, should have access to affordable houses built by the government. To reflect the lack of commitment to housing, reports from the budget office shows that in 2011 and 2012 capital budget, a total of N74.2 billion was allocated for housing and only N43.8 billion was utilised. This amount is considerably low to satisfy the housing needs of Nigerians, whereas in 2010, N7 billion was appropriated for the construction of the Vice-President’s lodge and in 2012 and 2013 budget, allocation for the maintenance of facilities in the villa was N4.7 billion. Nigeria has embarked on gigantic projects such as the construction of the National Stadium in Abuja for N300 billion, such an amount would have been able to construct over 300 million low cost houses at N1million each in government-owned lands across the country. Looking at Education, the universal declaration of human rights and Section 18 of the 1999 Constitution provides for equal and adequate education at all level; caption (a), (c) and (d) of that same section also provide for, free, compulsory and universal primary education, free university education; and free adult literacy programme. The Transformation Agenda report says the government has constructed 124 Alma Jiri schools, special girls school in 13 states of the federation, established 12 new universities, disbursed N36 billion to states in 2012 through the Universal Basic Education, disbursed N76.7 billion to tertiary institutions, disbursed N24 billion to 12 tertiary institutions, refurbished equipment in 51 federal and states polytechnics, refurbished 352 science and technical laboratories in the 104 Federal Unity Colleges, provided 62 ICT centres and 40 sets of mathematical kits, distributed a total of 19.67 million instructional materials in for core subjects of English language, mathematics, basic science and technology and social science. It has provided 4,144 assorted library materials to schools across the country, and has awarded 101 Presidential Special Scholarships for Innovation and Development (PRESSIS) to beneficiaries in top 25 universities across the world. Although this achievement looks impressive especially when it is coming under the spate of two years, but there seems to be a huge contradiction with what the government claims to have disbursed and what was provided in the budget of those financial years. The budgetary allocation was N117 billion with a total utilisation of N55 billion. Pray, how did the government disburse N76.7 billion to TETFUND for the provision of infrastructure and related facility and N24 billion to 12 tertiary institutions to enhance developments in the institution? This doesn’t reflect the true picture of the report and the total capital budget provided for those years. It can only happen if the government did expenditure without appropriation. In conclusion, the government cannot claim to be transforming the country when this is not reflected in its budget. The budget must contain detailed plans and programmes that are appropriated for, in the right amount. This must also reflect all through in the macro-economic plan of the state. I have earlier indicated those signs that show if the government is serious in its transformation agenda, and that must be a priority for the transformation agenda to sail through. The citizens must realise that it is the responsibility of the government to deliver service to them; they should, therefore, demand for their right and hold the government accountable. • Emejuiwe is a procurement specialist, Center for Social Justice, Abuja.