Mon 24 June 2013 by The Guardian Newspaper

TheGuardian Conscience, Nurtured by Truth

Monday, June 24, 2013

Vol. 29, No. 12,597

N150

www.ngrguardiannews.com

Manpower crisis looms in maritime sector •Stakeholders warn of foreign domination

By Moses Ebosele HEY are in their thouT sands. The exact figure is not known. Some of them

The celebrant, Lt.-Gen. T.Y. Danjuma (rtd) (left); Speaker, House of Representatives, Aminu Tambuwal and Emir of Zazzau, Shehu Idris, during the conferment of the title, Jarmai Zazzau, on him by the monarch in his palace in Zaria, Kaduna State… at the weekend. PHOTO:PHILIP OJISUA

studied abroad through the Federal Government’s scholarship. Others were trained by accredited institutions in the country. However, unlike what prevails in other countries, where trainees are exposed to quality sea time onboard vessels, cadets in Nigeria are mostly exposed to classroom stimulators. The crisis took an embarrassing dimension in the United Kingdom (UK) recently when some Nigerian students at the Liverpool John Moores University reportedly protested against their condition, pointing CONTINUED ON PAGE 2

How to tackle Nigeria’s woes, by U.S. ex-envoy, Campbell From Martins Oloja, Washinton DC

ORMER United States FNigeria (U.S.) Ambassador to and author of Nigeria: Dancing on the Brink, John Campbell, has again warned about implications of complacency of political leaders and the elite over the seeming alienation of North. core the He also noted that the fu-

• Says alienation of the North a huge challenge for 2015 • Money influence will be tested again at polls, he claims • The region is being engaged, Ambassador Adefuye affirms ture of the country depends on the handling of the current socio-political condition of the area he claims is among the most volatile and vulnerable in the country.

But Nigeria’s envoy to the U.S., Prof. Ade Adefuye, said that the Federal Government has been addressing the issues raised about the North by Campell. He too spoke with The

Guardian briefly in Washington when National Institute of Policy & Strategic Studies (NIPSS) study team in Washington DC, led by the Director-General, Prof. Tijjani Muhammad-Bande,

visited him in his office. He was asked to react to the charge by the U.S. diplomat. Campbell, who spoke with The Guardian in a telephone interview in Washington DC, noted that leaders at all levels in Nigeria should preoccupy themselves with serious discussions on how to address exclusion of the North from economic activities in the country.

• Keshi satisfied with Eagles performance - Page 107 • 1,000 feared dead in India’s flood disaster - Page 8

According to the ex-envoy who received some harsh words from the Federal Government on his opinion before the 2011 polls about the consequences of failure to address the apparent dichotomy between the North and the South then, the leaders in Nigeria should begin to address the ticklish challenges in the Niger Delta, Middle Belt and the core North now lest the 2015 elections would face some politCONTINUED ON PAGE 2

THE GUARDIAN, Monday, June 24, 2013

2 NEWS

Maritime stakeholders warn of foreign domination CONTINUED FROM PAGE 1 out that they risked not qualifying for a “certificate of competency” in view of

challenges faced in securing sea time onboard ships. Retired, serving ship captains and other experts who

spoke with The Guardian blamed the Federal Government and its agencies such as the Nigerian Maritime Administration and Safety Agency (NIMASA) for the unfolding crisis. They likened the situation to graduating from a driving school without any direct encounter with any vehicle. But the Senior Special Assistant to President Goodluck Jonathan on Maritime Services, Olugbenga Leke Oyewole, who also spoke with The Guardian, explained that a sustainable way to tackle the problem was to empower private companies, adding that a major decision in that regard may be taken next month. “We (Federal Government) are operating with the prevailing situation. The government is doing everything possible to address the situation”, Oyewole added. He also used the opportunity to advise affected cadets to approach NIMASA for assistance, pointing out that there was the need to involve indigenous ship owners. In an interview with The Guardian, a seasoned ship captain and former President of the Nigerian Association of Master Mariners, Ezekiel Adewale Ishola, said there was the need to boost indigenous capacity in the interest of maritime sector. While advising the Federal

Government to act fast in the interest of the cadets and the nation’s economy, Ishola said a training ship should be made available to the Maritime Academy at Oroh, Akwa Ibom State. “Our legislators travel abroad and they see how things are done. Without sea time, no professional certification for the cadets. Without certifications, who will take over from the present set of professionals in the sector? We lack enough vessels. There is the need for more vessels”, Ishola said. Another captain who is currently a director in one of the firms operating in the maritime sector said: “It’s a worrisome situation. It was not like this in our days. The Nigerian National Shipping Line (NNSL) was there. We benefited from that era. The only way forward now is for the Federal Government to encourage the private sector, especially indigenous ship owners. Foreigners are gradually taking over the maritime sector in Nigeria. The government should act before it’s too late.” A source at NIMASA told The Guardian that a department within the agency was doing everything possible to support cadets in this regard. The source admitted that the number of cadets was high, pointing out that “everybody will be attended to.” Lamenting the demise of NNSL, Ishola said the ship-

ping line played a crucial role in the training of personnel during its era. According to experts, human capital development in the maritime sector is another viable avenue through which the government can generate numerous jobs as some countries are in dire need of qualified personnel to occupy sensitive positions. The demise of NNSL in 1995 is believed to have created a huge gap in human capital development in the sector, as qualified personnel are either now retired or now actively involved in other sectors of the nation’s economy. Established by the Federal Government in 1959, NNSL was liquidated in 1995 and all its 21 vessels sold, making it almost impossible to train fresh hands to meet future challenges. Affirming government’s resolve to tackle the challenges of human capital development, Oyewole said the existing administration was determined to support local participation in the sector. According to Oyewole, the current administration has resolved to “train numerous Nigerians” while plans are underway to encourage indigenous ship owners to participate actively in the sector. While pledging to facilitate sea time training for cadets, the Federal Government through NIMASA said it had

concluded plans to bridge the projected vacancies of 250,000 seafarers by the year 2015. While explaining in details the benefits of the training programme to the nation’s economy in an interview with The Guardian recently, the Director-General of NIMASA, Patrick Akpobolokemi, also appealed to universities and other institutions of higher learning across the country to give adequate priority to entrepreneurship studies. Akpobolokemi explained at the end of a reception for 41 students sponsored to Indian by the agency under its seafarers’ development programme that entrepreneurship studies would play a crucial role in the economic development of the nation. According to him, the 41 students form part of the agency’s first batch, adding that they would be on their way to the UK later this year for a three-year further studies. Akpobolokemi had explained recently that apart from meeting local requirement for seafarers, Nigeria also intended to commence the export of seafarers to other parts of the world like the Philippines. “The desire to fast-track the creation of a large pool of Nigerian seafarers by the year 2015, to meet local demand and contribute to the manpower needs of the international shipping comCONTINUED ON PAGE 4

Ex-envoy cautions on alienation, money influence in Nigerian politics CONTINUED FROM PAGE 1 ical dangers. His words: “As a friend of Nigeria, I have to tell the truth. I may be proved wrong in future but at the time of speaking or writing the truth, I believe I have a responsibility to tell… “About the state of politics in Nigeria, the question that has to be addressed include: whether money will again play an overwhelming role in political party rivalry in the next election. My concern is whether the process will be different from the 2007 through 2011 when money reportedly decided the outcome. In 2011, recall that it was a contest between the former Vice President Atiku Abubakar and the sitting President now President Goodluck Jonathan… Then you recall that the sitting president reportedly had a clear advantage… “But the greater challenge before 2015 is there seems to be no relationship between politics in Nigeria and the huge challenges that Nigeria faces. There is no discussion at the moment of the problems of alienation of the North. There is no serious discussion of the major political crisis and religious conflicts in the Middle Belt. There is an eye on only the North-East and others even then this is the thing: political leaders and indeed leaders in the country are not publicly discussing these issues with a view to finding

lasting solution… “The lingering issues in the North are germane and critical enough to the future of Nigeria… From the issues on ground in Nigeria, I see very little of mechanism to defuse tension in the Niger Delta. The area remains a flash-point. I see escalation of crisis and indeed resurgence if President Jonathan does not return for a second term. This is crystal clear from flashes we can see… “We see politics now mostly around personalities. Politics should address (at the moment) the main challenges the country faces. There should be ideas on how to move forward. I would like to see political figures speak openly and seriously on how to address the problems of the North…In Nigeria now, the North is the greatest threat to the stability of the Nigerian state…” On why he is so consistent about the problem of the North noted in his book on Nigeria: Dancing on the Brink? Ambassador Campbell added: “I am personally devoted to the unity of Nigeria. Any alternative will be disastrous. You can feel the pain of continued bloodshed in the North that has been obviously under-reported. The radical insurgents, Islamists in the North, appear hell bent despite efforts to contain them… They even attack northern Muslims and that reflects the complexity of

the problems. But there should be no missing the point: you can see the discrepancies in the social statistics in the North…There is high level illiteracy, there is no improvement in the economy of the North. Look at the collapse of the textile industry in the North… “There is a sense in which some observers can say there are other challenges too as I said earlier in the Niger Delta and the Middle Belt. The far North’s is much harder to deal with. This is the truth that we must face. After all, the Middle Belt is part of the larger North. The situation in the North has got worse. It is seen in the violence in the North, in the huge number of illiterates in the North who know only a few verses in the Quran. “Most of the elements in the North do not participate in modern economy. This is the challenge that politicians and leaders at all levels should be facing now…” Campbell’s second book on Nigeria is said to be ready for release any moment from now. But Adefuye countered Campbell, saying: “The Federal Government is fully aware of the challenges in the North and that is why even Nigeria’s Embassy in the U.S. that I have the privilege of leading at the moment is collaborating with Corporate Council on Africa, a think-tank, to organise a summit on agriculture in the North.

Two weeks ago, two commissioners from Katsina State were in the U.S. to consolidate the process. Katsina government has been very serious about this because it is the arrow-head. “We have discussed with Vice President of Oversees Investment Corporation, Mimi Aleyma Hou. This will be organised before the end of the year. There will also be a huge summit on ICT in the U.S. for the country and the North will be part of the collaboration of efforts to address skills gap and open market opportunities in this regard. The Presidency has been doing a lot to address escalations in the North and that is why the Presidency has been doing all that is being done in the North-East to contain the insurgency…” John Campbell is the Ralph Bunche senior fellow for Africa Policy Studies at the Council on Foreign Relations (CFR) in New York. Rowman & Littlefield published his book, Nigeria: Dancing on the Brink. The second edition is coming soon. He writes the blog “Africa in Transition” and edits the Nigeria Security Tracker. From 1975 to 2007, Ambassador Campbell served as a U.S. Department of State Foreign Service Officer. He served twice in Nigeria as political counsellor from 1988 to 1990, and as ambassador from 2004 to 2007. The CONTINUED ON PAGE 4

THE GUARDIAN, Monday, June 24, 2013

News Immigration turns back Portuguese plane for illegal deportation By Wole Shadare ARELY a week after the B Kenyan government was said to have deported three Nigerians without due process, leading to the grounding of the aircraft, a similar incident played out at the weekend when the Nigeria Immigration Service (NIS) at the Lagos Airport refused to accept one Isaiah Raymond Jnr. into the country. Raymond was brought back from Lisbon, Portugal, but the NIS requested the officials of the Portuguese aircraft to return him to where he was coming from, follow the law on deportation of its nationals before he could be accepted into the country. NIS top officials and the Ministry of Foreign Affairs told reporters yesterday that the flight crew complied with the directive almost immediately and returned Raymond to Lisbon. The same scenario is playing out between Nairobi and Abuja following the deportation of three Nigerians Oluwatosin Adebiyi, Chinedu Ifedigbo and Christopher Nalyelu, as Nigeria claimed that Nairobi flouted all known international laws and diplomacy in deporting its citizens.

Fear heightens over liquidation of airlines Govt appoints Irish firm for aircraft leasing By Wole Shadare IRLINES that are heavily inA debted to the Asset Management Corporation of Nigeria (AMCOM) are at the verge of been fully taken over by the government agency to pave way for a new national carrier. The Minister of Aviation, Stella Oduah-Ogiewonyi, had penultimate week named the yet-to-emerge carrier “Nigeria One.” A top official of a leading

Nigerian airline told The Guardian that when this is done, “all the debtor airlines will now be liquidated and pave way for the new carrier to provide all airline services across Nigeria, Europe, the United States and many other countries that Nigeria has Bilateral Air Services Agreement (BASA) with.” When contacted, the Deputy Secretary General of Airline Operators of Nigeria (AON), the umbrella body for airlines in Nigeria, said he had already

fixed this Friday for a meeting to discuss the matter, among other issues confronting the sector. It was listed as “clandestinely winding up of some of Nigeria’s biggest airlines by AMCON,” which, he alleged, would pave way for Nigeria One. Another issue he said would be discussed at the meeting was the astronomical navigation charges, described as some of the highest in the world. Meanwhile, there are indica-

tions that the Federal Government has settled for Aer Lingus Group Plc of Ireland as aircraft lessor for Nigerian carriers. The proposed acquisition of 30 aircraft for interested airlines could be warehoused with the firm. Aer Lingus is Ireland’s national flag carrier and operates a fleet of airbus serving Europe, North America, North Africa and Asia. It is Ireland’s oldest extant airline, and it’s second largest, after low-cost rival, Ryanair, which owns 29.4 per cent of Aer Lingus stock. The Irish state owns 25.4

Oyo to compensate property owners affected by road dualization From Iyabo Lawal, Ibadan HE Oyo State Government will soon begin the payment of compensation to those affected by the ongoing road dualisation in Ibadan, the state capital, and other major towns in the state. Commissioner for Lands and Housing, Bimbo Kolade, said in a statement in Ibadan at the weekend that a total of N1,214,737,340.46 would be paid to 1,304 people, whose property were affected by the six dualisation projects currently going on in the state. According to him, the decision on compensation followed the completion of valuation and verification as well as the submission of the photographs of the affected structures and the verification of title documents submitted by the claimants.

Capital Oil and Gas Limited’s Managing Director / Chief Executive Officer; Patrick Ifeanyi Ubah (middle); Geo-Earth Resources Limited’s Executive Director and Managing Director (Commercial Press), Guardian Newspapers Limited, Tive David Ibru (right) and First Vice Chairman, Geo-Earth Resources Limited, Ruslan Havryluk, during a tour of the oil firm’s facilities in Lagos at the weekend PHOTO: AYODELE ADENIRAN

per cent. Already, representatives of the company are said to have held a meeting with the Governor of Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, but there were grey areas that needed to be fine tuned before the N500 billion intervention fund for the airlines could be released. Sources close to the Ministry of Aviation and AON disclosed that Sanusi was very careful about the assistance to the airlines in view of what happened three years ago, when over N250 billion was given to them to revitalise their operations, but the money went down the drain. Most of the carriers then got huge chunk of money, but nothing meaningful was achieved with the loans. Some were alleged to have diverted the money while their airlines were subsequently liquidated. Others are heavily indebted to banks, giving AMCON an opportunity to come in. Also, an anonymity source disclosed that Sanusi had expressed displeasure at giving money to the Irish firm to finance aircraft acquisition for operators in the country. He advised that the operators should go through the banks, so that in case of default, the banks would know how to recover their money. This time, airlines that qualify for assistance would pay seven per cent interest on loans secured. The Guardian learnt that the bailout period would be 15 years at the minimum interest rate of seven per cent, as against short-term loan at two digits interest rates.

JTF, vigilance group arrest 31 Boko Haram terrorists From Njadvara Musa, Maiduguri NLIGHTENMENT and deterE mination are yielding positive fruits in the fight against terrorism as members of Volunteer Vigilance Youths Group (VVYG) and men of the Joint Task Force (JTF) in Borno State arrested 31 Boko Haram terrorists at various locations in Maiduguri at the weekend. Their effort drew ovations and commendations from residents and soldiers, as they went after the fleeing suspects after the destruction of their training camps at

Sambisa Games Reserves Forests (SGRF) and Kirenoa, a border community with Chad. According to the VVYG Chairman, Abubakar Mallum, and his vice, Isa Musa, the suspects were nabbed at NEPA Market junction, Anguwar Doki, Shuwari II and Gambouru Market areas of Maiduguri. He added that the terrorists have already been handed over to the various JTF local sector commanders for further investigation. The fleeing terrorists had attacked Ansarudeen

Secondary School, as well as fishermen and traders at Alau Dam, killing 22 people, including nine students writing the National Examinations Council (NECO) on Baga Road. Speaking on their modus operandi yesterday in Maiduguri, Mallum said youth vigilance group “operates at strategic locations with ordinary sticks and cutlasses, without any rifle like the soldiers that patrol the major streets and roads of Maiduguri.” According to him, “all vehicles are stopped at these

strategic locations, and we search their interiors, boots and hoods, where some of the rifles are hidden to launch attacks in this city.” In a breakdown of the arrests made at the weekend, Mallum disclosed that on Friday, four suspects were arrested in Shuwari ward, while the following day, five were arrested and handed over to the nearest local sector commander of JTF. Last Wednesday, he said, 15 suspected armed Boko Haram members were also arrested at Gambouru Market, while

the residents were cooperating to end the incessant attacks and killings in the state. Meanwhile, the JTF yesterday also commended the youths for the joint manhunt of fleeing Boko Haram suspects. According to its spokesman, Lt. Col. Sagir Musa, “the JTF commended these youths for assisting our soldiers and police arrest these terrorists suspects among people living in the metropolis. “The youths have also renewed their efforts in supporting the JTF in the current operations.”

Panic in PEF over alleged fraudulent fuel bridging payments From Collins Olayinka, Abuja are rife at the Petroleum FtheEARS Equalization Fund (PEF) that board may have been paying billions of naira to oil marketers in erroneous bridging cost as its Project Aquila faces operational challenges. Project Aquila was devised by the board to capture precise movement of fuel trucks, whereby its Radio Frequency Identification (RFID) was meant to be attached to each vehicle, and every fuel trailer being tagged.

Why govt may not appoint new head soon However, the project has been facing some challenges, which led to many trailers using one tag, thereby aggravating the fear that marketers might have claimed unmerited fuel bridging payments. Meanwhile, indications have emerged that government might not appoint a new executive secretary for the board due to the pending Petroleum Industry Bill (PIB), which has no specific role for the board in

the post-PIB oil industry. Also, the position of PEF Executive Secretary is not a tenured position under the statute establishing PEF. The current Executive Secretary, Mrs. Sharon Olufunke Kasali, was appointed in April 2007 for an unspecified period. The Guardian learnt in Abuja over the weekend that the board held a strategic meeting last week to ascertain how much might have been paid

out in error and also sort out the challenges confronting Project Aquila. The challenges confronting the execution of Project Aquila also include misconceptions in the industry that the RFID tags contain mercury materials and the ability to use stolen ones to access fuel bridging funds. According to a document obtained from the board, “the management of PEF has been informed that the RFID tags are

being stolen by those who wrongly believe that they contain mercury materials and/or SIM cards used in making free calls. For the avoidance of doubt, the tags, provided with public funds, do not contain any of these. “Also, indications are that some people erroneously believe that they can cheat the government by using stolen tags for trucks movement of petroleum products to apply for illegal bridging claims. Again, this is not possible as each tag has specific identification num-

ber affixed to the truck it is registered with.” The board warned that any marketer found involved in the act would not only be blacklisted from the scheme but would also be prosecuted. In any case, PEF General Manager, Corporate Services, Mr. Gody Nnadi, told The Guardian over the weekend that the board would stop every manner of manual payment from October, while also ensuring that every step is taken to rectify the challenges to Project Aquila.

4 NEWS

THE GUARDIAN, Monday, June 24, 2013

Implications of Syrian war for Africa’s security, by Dele Cole From Oghogho Obayuwana, Foreign Affairs Editor

• Faults super powers’ roles

HE looming full scale war T by world powers over Syria may have dire conse-

rect military support to the rebels. The pronouncement makes it difficult to rule out a collusion course between the U.S., Russia and maybe China, especially as there was no radical change in the understanding reached on the matter during the recentlyconcluded G-8 summit in Northern Ireland. Paulo Pinheiro, chairman of the UN commission’s inquiry into rights violations in Syria, declined comments at the weekend on evidence received from the U.S., the United Kingdom (UK) and France which, they claim, shows Syrian President Bashar Assad’s forces using chemical weapons. “We are not able to say who has used chemical agents or chemical weapons and we are very worried about the chain of custody of the substances,” Pinheiro told reporters after an informal meeting with UN Security Council ambassadors. But Cole, a former Nigerian envoy to Brazil, maintains that any success by people who have links with terrorist or extremist networks is likely to be copied by different groups, especially in Africa where countries such as Nigeria are struggling to cope with insurgencies that have now been proven to have external links. He said: “Of course these groups are also watching what is currently going on and what would be going on in Syria. Now, they would copy what they regard as success in the Syrian fighting. They have no idea where differences cling. For instance, it is wrong to consider al-Qaeda as a kind of supreme body, giving out information...” This may well suggest that there is a whole lot of dynamism in the groups’ operations that should be correctly tracked. Ventilating on the scenario

quences for the fight against terrorism in Africa if groups perceived as sympathisers of terrorist organisations win any phase of the war. Besides, beyond humanitarian reasons, the current poise of the West to confront the Bshir Al Assad regime in Damascus may in the end turn out to be that of a familiar old pattern employed to maintain and sustain the strategic national interest of proponents bent on fashioning out a United Nations (UN) Resolution to help “salvage” Syria. Making these submissions in a chat with The Guardian on the issue, Ambassador Patrick Dele Cole said it is therefore not out of place for African governments and the general populace in countries such as Nigeria to closely watch the events unfolding in Syria in the days ahead. According to UN figures, no fewer than 93,000 people have been killed since the conflagration broke out in Syria between the Asad regime and rebel fighters. Ambassador Cole’s concerns came even as it emerged at the weekend that the UN’s investigative committee is still unable to determine which side used chemical weapons in the ongoing conflict and just as reports of Syrian rebels being armed intensify and fears of more bloodshed mount. Last week, the United States (U.S.) President Barack Obama finally affirmed that the Syrian regime had crossed the red line as its intelligence confirmed the use of chemical weapons and banned substances... The American government then announced a shift in its modus, maintaining that it would henceforth give di-

that may emerge in Syria giving the entrenched positions, Cole said: “It all sounds to me the way in which the matter of Iraq was orchestrated. Remember, there was 9 11 then, they said Iraq had weapons, then managed to bring out a UN Security Council Resolution which was passed even when there was a UN inspector who had not submitted his report. They bombed Iraq and then started to find reasons to justify that act.” He maintained that the difference this time around is that “Russia has a big interest in Syria. Their only major outlet- military base outside Russia is in Syria. Russia’s only naval base outside her territory in the Mediterranean is in Syria. In this regard, if Asad were to lose, the thinking by Moscow is that the emerging new leader is not likely to follow them.” According to the former top diplomat, President Barack Obama’s standpoint on the balance of power and survival game is easily understandable.” For instance, President Obama told Israel: “Stop building new settle-

ments in the West Bank. The condition is that if you stop, then we get the other side to stop bombing you. But in Obama trying to stop Israel, Israel then made a statement on the red line. Nothing of the sort had happened in Syria because the belief was that the rebel could unseat Asad. Now, they are saying the war turned because Hezbollah is there. Iran is there. They are saying that these factors helped Asad to win in Quaisar. But why should Hezbollah be better than the Syrian army? They came in and changed the equation and so, there is this talk about chemical weapons, that 150 people have been killed.” “I think it (resolution) is orchestrated to get the West to go in and do there what they did in Libya. They have been funding these guys through proxies, Arabic language development etc. But the problem is they do not know who and where and in whose hands the weapons are getting to. I am not surprised that we are having this sort of situation with Boko Haram. France took interest in Mali because over half of France is powered by atomic energy. So, always it is the

U.S. national interest. ‘Make sure you contain Iran because Iran is supporting Syria, also Hezbollah, Iran had earlier declared U.S. and Israel as enemy number one.” He continued: “Yet we know that no American politician wins whenever the Jewish votes are against them. Since 1967 war, Syria has not allowed one bullet to be fired into Israel. Their only shared border is in the Golan Heights. Now if that evaporates, it will be fighting a proxy war. We cannot say what will be happening... So, they will do what they did in Libya. Get a resolution, which on the surface looks innocuous and then use this to justify their action because the wording on the resolution (the draft being phrased) does not mention Asad but (David) Cameron is saying Asad is going.” Apparently drawing strength from Paulo Pinheiro’s comments, UN experts investigating the use of chemical weapons say they need to further access Syria to determine where the alleged chemical weapons have been used. But Syria has thus far refused to grant them entry, citing concerns for their safety and doubts

about their impartiality, as neither China nor Russia were allowed to participate. Pinheiro’s commission had said in a report published this month that there were “reasonable grounds to believe that chemical agents have been used as weapons.” The Friends of Syria which met last week in Doha, Qatar, did not come up with anything outside the debates on how to arm the rebels more. President Barack Obama said on Friday that the U.S. will leave about 700 combat equipped troops in Jordan after a training exercise there, which would increase the number of U.S. troops stationed there to almost 1,000. The U.S. announced earlier that it will leave Patriot missiles and warplanes in the country. On its part, the European Union (EU) had lifted its arms embargo on Syria last month, while French and British leaders have been speaking favourably also about arming the rebels. There are however increasing concerns about the Islamist, extremist element within the Syrian rebel forces.

‘Influence of money in political contest will be tested again at polls’ CONTINUED FROM PAGE 2 diplomat’s additional overseas postings include Lyon, Paris, Geneva and Pretoria. He also served as Deputy Assistant Secretary for Human Resources, Dean of the Foreign Service Institute’s School of Language Studies and Director of the Office of United Nations (UN) Political Affairs. From 2007 to 2008, he was a visiting professor of International Relations at the University of Wisconsin-Madison. He was also a Department of State mid-career fellow at the

Woodrow Wilson School, Princeton University. Before his career in the Foreign Service, he had taught British and French history at Mary Baldwin College in Staunton, Virginia. Nigeria: Dancing on the Brink explores the country’s postcolonial history and examines the events and conditions that have propelled the troubled second largest economy in Africa to the edge that is fast diminishing its profile in international politics.

Group Executive Director (Exploration and Production), Nigerian National Petroleum Corporation (NNPC), Abiye Membere (left); Group Managing Director, NNPC, Andrew Yakubu and Managing Director, Nigerian Petroleum Development Company (NPDC), Victor Briggs, during the board meeting of the NPDC in Warri… at the weekend.

Manpower crisis looms in maritime sector CONTINUED FROM PAGE 2 munity, informed the agency’s decision to start a ‘fully- sponsored scheme ‘whereby NIMASA fully sponsors qualified students. “Under the scheme, about 1,500 students were examined and screened for the 2012\2013 academic session. Admissions have been secured for the successful ones in various maritime training institutions abroad, to be trained up to degree level in the nautical sciences, marine engineering and naval architecture.” Meanwhile, lack of vessels owned by Nigerians plying international waterways and need for capacity building were some of the issues

discussed at the presidential retreat on maritime held last year in Abuja. Minister of Finance and Coordinator of the Economy, Ngozi Okonjo-Iweala who was at the presidential retreat, said increasing Nigeria’s participation in the maritime sector would not only ensure that most of the incomes were retained locally, but would lead to increased jobs for Nigerians. She said: “The Philippines for example has been able to position itself as a global supplier of seafarers, creating a lot of jobs and significant foreign income for the country. Why can’t we replicate this in Nigeria?” Oyewole, who spoke in a

similar vein, said: “Every other country in the world keeps to their cargoes. They carry them by themselves and they are coming to scrabble for the ones we (Nigeria) have here also. We may not have the capacity but the capacity may not come without government support.” He said the proposed package is structured in a way that indigenous ship owners will be able to acquire vessels. “These vessels will fly Nigerian flag and would be used as training platforms for our people,” he said. Oyewole said the purpose of the proposed bailout package was to empower Niger-

ian ship owners, adding that the larger economy would benefit from the proposed gesture. Apart from full sponsorship and collaboration with some state governments, NIMASA is also encouraging agencies, especially higher institutions, to key into the capacity building scheme. For example, NIMASA said plans were underway to commence maritime studies in four selected Nigerian universities: Niger Delta University, Amasoma; University of Lagos (UNILAG); University of Nigeria, Nsukka; and the Ibrahim Badamasi Babangida University, Lapai, Niger State.

THE GUARDIAN, Monday, June 24, 2013

Afenifere tasks govt on Lagos-Ibadan Expressway By Seye Olumide ORUBA socio-cultural organisation, Afenifere, has called on the Federal Government to address the deplorable state of the LagosIbadan Expressway. Afenifere noted that the road has remained in a virtual state of disrepair and is a major embarrassment to successive governments since about 15 years ago. Spokesman of Afenifere, Yinka Odumakin, in a statement yesterday, said the state of the road has led to several accidents, claiming uncountable number of lives nearly on daily basis. For instance, the scion of the Awolowo family, Chief Oluwole Awolowo, who died recently, had a ghastly accident on that road, which ultimately led to his death. He noted that motorists, who plied the road in the past 48 hours, experienced the “worst nightmares of their lives as they were held for several hours in total lockdown and punishing gridlocks. They had to spend an average of six hours on a journey that should not take more than 55 minutes if the roads were in good condition.

NEWS 5

Bode George’s critics, supporters in S’West bicker By Seye Olumide

GROUP in the South-West A zone of the Peoples Democratic Party (PDP), Forum for Equity and Justice (FEJ), has called on President Goodluck Jonathan and the National Chairman of the party, Alhaji Bamanga Tukur, to call the former

Chairman of Board of the Nigerian Ports Authority (NPA), Chief Olabode George, to order over his alleged attempt to usurp the functions of the Zonal Working Committee (ZWC) and the Zonal Executive Committee (ZEC). National Coordinator of the group, Mr. Enitan

Ayelabowo, in a statement yesterday, said George should realise that his role as a member of the PDP’s BoT is merely advisory. However, Spokesman of the Lagos PDP, Taofil Gani, has described the allegation as total falsehood, saying that the identity of such group is unknown to the PDP, which

is on a mission to perfect the agenda of opposition to distabilise the party. According to Ayelabowo, “George is attempting to usurp the functions of the ZWC and the ZEC by calling an illegal meeting of some so-called leaders of the party in the South-West to share positions zoned to the area.

Youths want Bichi as varsity’s VC From Adamu Abuh, Abuja HE Ijaw Youth Council (IYC) at the weekend threw its weight behind those clamouring for the appointment of Prof. Lawal Alhassan Bichi as the substantive Vice Chancellor (VC) of the Federal University of Petroleum Resources (FUPRE), Ugbomro. The youths believe that Bichi’s confirmation would enable him to consolidate his transformation agenda for the institution. The IYC office of the student representatives’ council, Western Zone, in conjunction with the Ijaw Employment Bureau, led by Magada Franklin, made this appeal in a press briefing in Warri after a working tour of selected colleges and universities across the Niger Delta region.

Police in Delta arrest bank’s chief over robbery From Hendrix Oliomogbe, Asaba HE Operations Manager of one of the old generation banks, which was robbed by a 10-man gang in Agbor, IkaSouth Local Council of Delta State last Friday, has been arrested by the police in Delta State. The state Police Public Relations Officer, Mr. Lucky Uyebheme, said in Asaba, the state capital yesterday, that the police would not leave any stone unturned in its determination to ensure that the runaway hoodlums, who carted away unspecified amount of money running into several millions of naira, are brought to book. Uyebheme explained that preliminary investigations identified the insider, whom he identified Mr. Godwin Ogbemudia, as having a hand in the deed, as the two keys to the strong-room supposed to be kept by two different senior members of staff, were left with the suspected manager, who in turn, left the strong room opened.

Chairman, UAC Plc, Udoma Udo Udoma (left); President, Oxford and Cambridge Club of Nigeria, Akinfela Akoni; British Deputy High Commissioner, Peter Carter, and Chief Operating Officer, Airtel Nigeria, Deekak Srivastava, at the yearly May Ball Casablanca “The Movie” of Oxford and Cambridge Club of Nigeria in Lagos…at the weekend PHOTO: FEMI ADEBESIN-KUTI

“We have noticed the way and manner Chief Bode George has been running around to put himself in the forefront of Yoruba and Nigerian politics, breaching the law and protocol by sidetracking Alhaji Shuaibu Oyedokun, who had been the rallying point for the party while he was away. “It is even more nauseating when we recall that the PDP has won all states of the South-West but Lagos where he has been calling the shots in the last 14 years or so.” He added: “Having been tactically rejected because of his personality albatross at the recently held National Executive Committee (NEC) meeting of the PDP in Abuja where he desperately sought to move a motion for the passing of a vote of confidence in the President, his next move is to usurp the functions of the South-West Caretaker Committee by calling an illegal meeting of his ilk.” Insisting that the group is faceless, Gani said as far as Lagos PDP is concerned, “our unflinching support is to George for the fatherly role he has been playing. It is also interesting to know that George’s influence in the PDP has gone beyond that of the Lagos and South-West PDP. Although we have been expecting such, but as early as it is coming when serious efforts are on-going to reconcile all the factions in the party.”

AIC appeals against judgment on concession pact with FAAN By Wole Shadare

ISSATISFIED with the D judgment of the Federal High Court in Lagos, AIC Limited, owned by business mogul, Harry Akande, has filed an appeal to challenge last week’s ruling, which set aside the late Justice Kayode Eso’s Court of Arbitration ruling that the Federal Airport Authority of Nigeria (FAAN) hindered the firm from its concession pact it had in 1998. The firm and the aviation authority had been embroiled in a long legal brickbats over the inability of FAAN to allow it continue with its multi-billion naira Flightpath Hotel and Resort Centre at the Murtala Muhammed International Airport (MMIA), Lagos. Justice Kayode Eso, in his ruling delivered some years ago, had ordered FAAN to pay the concessionaire $48 million being damages for preventing AIC from executing the contractual agreement it has on the land lease. Dissatisfied with the late Eso’s ruling, FAAN proceeded to the Lagos High Court for succour. And last week Wednesday, the agency got a reprieve when Justice J. Buba, in his judgment, set aside the arbitration ruling. AIC, in its notice of appeal filed by its counsel and made available to journalists at the weekend, Prof. A.B. Kasunmu (SAN), said he was

dissatisfied with the judgment of the Federal High Court, Lagos. He predicated AIC’s grounds of appeal based on parts of the decision set out in paragraph 2 and “upon the grounds set out in paragraph 3 and will, at the hearing of the appeal, seek the relief set out in paragraph 4”. The appellant further stated that the persons directly affected by the appeal are those set out in paragraph 5. Prof. Kasunmu noted that

the learned trial judge “erred in law in dismissing the appellant’s preliminary objection as to the competency of the originating summons filed by the FAAN for non-compliance with the mandatory process meant for service on the defendant out of the jurisdiction of court as required by the Sheriffs and Civil Processes Act, Cap D6, LFN 2004”. Kasunmu further stated that Flight-path Hotel and Resort Complex, which

agreement was confirmed by the issues for determination was formulated by the parties and submitted to the arbitrator”. He explained that the lease agreement itself confirmed that the lease was granted specifically for the construction of the Flightpath Hotel and Resort complex, which he noted, the respondent also had equity interest in. In the same vein, Kasunmu has filed a motion seeking an order of injunction restrain-

ing FAAN from deriving any benefits and exercising any rights over the project site pursuant to the judgment of Buba J.M. delivered on June 19, 2013. Kasunmi is seeking relief from the Court of Appeal, an order allowing the appeal and granting the orders sought by the appellant in his originating summons dated May 10, 2010 and enforcing the award made in favour of the appellant by the arbitrators.

NNPC pledges efficient management of acquired Shell leases HE Nigerian National T Petroleum Corporation (NNPC) and its subsidiary, the Nigerian Petroleum Development Company (NPDC), have pledged to ensure professional management of assets and oil mining leases acquired from the Shell Petroleum Development Company (SPDC). This is contained in a statement issued by the Acting Group General Manager, Public Affairs of NNPC, Tumini Green, yesterday in Abuja. The statement quoted the Group Managing Director of the Corporation, Mr. Andrew Yakubu, as making the pledge after the NNPC/NPDC Board meeting at the weekend in Warri, Delta State. Yakubu said the corporation was repositioning its ex-

ploration and production subsidiary, the NPDC, to ensure that acquired assets from the international oil companies (IOCs) are productive so as to boost the nation’s revenue flow. “With the divestment of Shell, NPDC is the top and the only option for indigenous participation that will replace companies like SPDC and others that want to divest their equities. NPDC, therefore, has taken over this obligation of value addition as the flagship operator of the upstream business of NNPC. NPDC is the gateway of capacity development and capability development of the upstream activities in Nigeria,” Yakubu said. Shell and some other IOCs recently divested and transferred some of its Oil Mining Leases (OML) and stake to the NNPC.

Yakubu said that acquiring the OMLs was part of plans to grow and develop the NPDC, and encourage indigenous participation in the nation’s upstream sector. He said the operation of NNPC/NPDC in Warri has made NPDC the highest local producer of gas to the domestic requirement of Nigeria in line with the Federal Government’s gas to power project. Yakubu said the transformation drive at the NPDC has made it the biggest indigenous gas supplier on the African continent. The NNPC boss said as a socially-responsible corporation, the NNPC/NPDC would fast-track its activities in the area of providing social amenities such as classroom blocks, educational scholarship, health facilities, roads

and water to host communities. He said the corporation was committed to partnering with the various tiers of government to provide basic amenities to oil communities to guarantee peace, development and enhance the companies’ operations. He commended the host communities in Warri for their support for the corporation and NPDC operations in the area, saying it would boost community development efforts in line with international best practice. The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, had recently expressed the need for NNPC/NPDC to take over the management of some OMLs to meet the target of producing 250,000 barrels of crude per day in 2015 by NPDC.

THE GUARDIAN, Monday, June 24, 2013

6 NEWS

AD denies merging with other parties

Anambra donates N10m, five vehicles to NDLEA

• Registers new members

By Uzoma Nzeagwu, Awka

By Tunde Akinola

HE fight against illicit drugs T received a boost when Governor Peter Obi presented

HE Lagos State chapter of T the Alliance for Democracy (AD), has announced commencement of its membership registration ahead of the 2015 general elections. AD also debunked the speculations that it has merged with other parties to form a new political group. Addressing journalists at a press conference in Lagos at the weekend, the party chairman, Mr. Kola Ajayi stated: “Our renewed vigour for membership drive is to bring the AD back to its glorious days when it used to be the number one party in Lagos State. We ruled Lagos State for eight years, the longest by any other political party.” Ajayi noted that the AD would contest in all elective positions in the 2015 polls within and outside the state. “We contested the governorship election in 2007 with Hakeem Gbajabiamila as our candidate. We already have five persons that have indicated interest to contest on our platform,” the state chairman said. He said the AD remained recognised by the Independent National Electoral Commission (INEC). According to Ajayi, the insinuation that AD has merged with other parties is being spread by political opponents who are afraid of the party’s existence. “The AD wishes to share with our media friends that there is a false and deliberately misleading propaganda that AD does not exist or that AD has merged with another party, or that it was AD that became another party. This is a lie that you, our friend in the media, must not unknowingly help to promote,” Ajayi said. According to him, “if AD as a party, had truly gone out of existence, its councillorship candidate in Akwa Ibom State would not have participated in the recent council election, where Itoro Edet of AD polled 6, 841 to defeat his ACN challenger who scored 3, 426 votes. If we are not in existence, we won’t have been able to win that election.” Ajayi disclosed it has taken the Lagos State Independent Electoral Commission (LASIEC) to court over its alleged refusal to allow it participate in the last local government election.

Senator Oluremi Tinubu (left); her husband and former Governor of Lagos State Asiwaju Bola Ahmed Tinubu; erstwhile President Ibrahim Babangida and National Chairman, Action Congress of Nigeria (ACN), Chief Bisi Akande during the eighth day Fidau Prayer of Alhaja Abibat Asabi Mogaji at TDS Lagos ...yesterday

JTF arrests 14 suspected crude oil thieves in Delta, others By Willie Etim, Yenagoa HE Joint Military Task T Force code named Operation Pulo Shield has disclosed arrest of 13 persons in Delta and Rivers states over their alleged involvement in pipeline vandalism and theft of crude oil along the creeks and waters in the Niger Delta region. According to the JTF, three persons were arrested in Beneth Island of Warri South Local Council of Delta State and the Agbede Forest of Edo State for illegal oil bunkering. Eleven other suspects were arrested in Kalamabo and Opukula communities in Akuku Toru and Bodo West of Gokana Local Council of Rivers State for their involvement in illegal oil bunkering and fire outbreak on the pipeline owned by the Nigerian National Petroleum Corporation (NNPC). The JTF, in a statement issued yesterday in Yenagoa by its Media Coordinator, Lt. Col. Onyenma Nwachukwu, said some of the arrests were carried out by different formations of the Task Force with operatives lying in the

bush for days in the region to trap pipeline vandals. “The Joint Task Force OPERATION PULO SHIELD deployed in 3 Battalion of Sector 1 of the JTF has arrested three suspects running three illegal oil distillery camps in Opumani Gbekebor, Beneth Island of Warri South Local Council of Delta State and Agbede forest in Edo State. The suspects were arrested during an anti-illegal oil bunkering operation with four metal tanks, 236 drums and 13 pumping machines at the illegal oil distillation sites. “Five dug out pits used by the oil theft suspects to store stolen crude oil at the illegal distillation camps were also sealed by the troops. The three suspects, Samson Kristo, Lawrence Pius and Powede Clerk, who were arrested in the operation, are helping in preliminary investigations at the Headquarters of 3 Battalion before they will be handed over to the appropriate prosecuting agency,” the statement read. “During the operation, the

troops also intercepted 27 open boats used by oil thieves to convey illegally distilled products along Chanomi West in Warri South Local Council of Delta State. In a separate operation, JTF troops deployed at Sanbarth have arrested two suspects who specialises in vandalising oil pipelines along Kalamabo and Opukula Communities in Akuku Toru Local Council of Rivers State.” “The culprits, Fineface Shedrack and Solomon Doutimiti, who were caught by troops of 130 Battalion of Sector 2 after three nights of lying in ambush were arrested for serial pipeline vandalism and illegal oil distillation activities around the area. The suspects were hacking into Shell Petroleum Development Company (SPDC) pipelines located in the said community when they were nabbed,” the JTF said. The Commanding Officer who conducted the operation, Lt Col Caius Baushe, has called on SPDC to carry out an assessment exercise on the pipeline, noting that the level

of excavation and possible touch on the pipeline cannot be ascertained due to high tide that covered the entire area. Items, including an open boat containing pipe hacking equipment, were recovered from the suspects. Meanwhile, troops of 146 Battalion of Sector 2 of the JTF have arrested eight persons in connection with the recent fire outbreak on an SPDC pipeline in Bodo West of Gokana Local Council of Rivers State. The troops who sighted the fire at about 1.30 a.m. on Wednesday mobilised to the scene where they found the eight people in two tug boats. “During the interrogation, they claimed to be employees of Steve Integrated Technical Service and Sege Marine hired by Shell to fix broken pipelines in Bodo. The suspects are currently in Sector 2 Headquarters for preliminary investigations. They will be handed over to an appropriate prosecuting agency if found culpable at the end of the investigations,” the statement further read.

I did not slap my deputy, says Aregbesola From Tunji Omofoye, Osogbo OVERNOR Rauf Aregbesola has debunked rumour that he slapped his deputy, Mrs. Grace Tomori, and said it was aimed at causing disaffection capable of destabilising Osun State. Aregbesola, who noted that cordial relationship exists between him and Tomori, said: “I have never beaten anybody in my life. In fact, I don’t beat my children, let alone beating any other person. More so, the deputy governor is older than me, so how do I beat an elderly person.” The governor, who spoke during a seven-hour live television programme tagged “Ogbeni till day break” maintained that “I don’t have any quarrel with my deputy, and I can’t have any with her because I intentionally chose her and no one choose her for

• Tomori confirms claim me. I think I can work with her and that is why I chose her. So, no differences exist between us.” The deputy governor who was also present at the programme confirmed the claims of the governor when she was asked to respond to the allegation that Aregbesola once slapped her. Tomori stressed that cordial relationship exists between her and the governor, adding that she would remain loyal to Aregbesola. On the crisis rocking the Nigerian Governors Forum (NGF), Aregbesola said: “Let the NGF take care of itself. The forum is a voluntary one and it is not compulsory that every governor is a member.” He also denied insinuation that the debt profile of the

state has risen to N300 billion, saying the opposition party made the allegation to scuttle the progress of the state and cause confusion. According to him, the monthly allocation that accrues to the state from the Federation Account and the internally generated revenue could not cater for the development going on in Osun, hence the resolve of his government to take loans and bond from financial institutions. “There is nowhere in the world where borrowing or taking loan is a taboo. Advanced nations of the world even borrow money to execute projects. Any government that wants to succeed may need to borrow for projects execution,” he said.

N10 million cheque and five operational vehicles to the office of Nigeria Drug Law Enforcement Agency (NDLEA) in Anambra State. Presenting the cheque and keys to the NDLEA Chairman, Ahmadu Giade and his team of officers at the Government Lodge, Amawbia yesterday, Obi charged Nigerians to join hands with the Federal Government in fighting the drug war. He promised to support the agency by whatever means available to ensure that the fight against importation, distribution and use of illicit drugs succeeds in the state. “My administration fought the menace of armed robbery to a stand still, kidnapping has been reduced to the lowest level and we are ready to battle the illicit drug issue in Anambra”, the governor said, noting that NDLEA is not only fighting but also winning the war. Obi who said he always preach to Nigerians to be good ambassadors of the country whenever he travels abroad, urged drug dealers and users to desist. Giade commended Obi for his

Offa council ex-chief escapes attack From Abiodun Fagbemi, Ilorin ILITARY men in Offa, M Kwara State at the weekend foiled an attempt to assassinate a former Offa Local Council Chairman, Saheed Popoola, when about 10 suspected thugs waylaid the Action Congress of Nigeria (ACN) chieftain at a restaurant in the town. Popoola narrated that the hoodlums arrived the restaurant around 7 p.m. on Friday, challenging anyone belonging to ACN to a fight, shooting sporadically into the air and brandishing other dangerous weapons, including broken bottles. Popoola said three of the hoodlums have been arrested and detained at the Police Command in Ilorin the state capital by a team of soldiers who had been placed on alert, following Popoola’s suspicion that he might be the next target of attacks.

Crisis brews in Benin Catholic arcdiocese From Alemma-Ozioruva Aliu, Benin City RISIS is brewing in the C Catholic Archdiocese of Benin as some members, under the umbrella of Edo Liturgical Group, alleged attempts to relegate the use of Benin Language in mass, as directed by the church leadership, to the background. According to them, the Archbishop of the Benin Metropolitan See, Most Rev. Augustine Akubueze, is deploying non-Benin priests to churches apparently to discourage indigenisation. The group, at a press briefing on Saturday said the action of the Archbishop was at variance with the Second Vatican Council it claimed was held in 1963 which “recommended, among other things, the use of local languages in Catholic worship to enable natives to participate actively and understand the mysteries celebrated.”

THE GUARDIAN, Monday, June 24, 2013

NEWS

Oil areas want direct payment of derivation fund to beneficiaries From Niyi Bello, Akure IL-PRODUCING communities in the coastal stretch of Ondo State have urged the Federal Government to set up a National Administrative Board to be saddled with the disbursement of the 13 per cent Oil Mineral Derivation Fund accruable to oil-bearing communities in the country directly to the beneficiaries instead of the current system of releasing the fund through the state governments. The board, according to them, became necessary because of the alleged failure of the state governments to remit the statutory funds to the communities for their human and physical development as envisaged by the 1999 Constitution and in some cases, diversion and outright embezzlement. The call was part of a six-point communiqué issued after a meeting of stakeholders, mainly women and youth groups, representing the oil communities of the state under the aegis of the Oil and Gas Producing Communities of Nigeria, held in Okitipupa, Ondo-South Senatorial District. The meeting, which was presided over by Adewale Omojuwa, an active player in the oil politics of the state, who once headed the Ondo State Oil-Producing Areas Development Commission (OSOPADEC), was attended by representatives of all the traditional rulers in the two riverrine local councils of Ilaje and Ese-Odo. Other special interests like the Christian Association of Nigeria (CAN), which was represented by its Ilaje Chairman, Rev. Samuel Obakulejo and

Chairman, Idea Board, Adedotun Sulaimon (right); Chairman, Techlaunchpad, Kiyar Bukar and Vice Chairman, IDEA Board, Pius Okigbo, during the presentation and induction ceremony of Techlaunchpad Software Developers and Initiative of Ministry of Communications and Technology, managed by Accenture in Lagos…at the weekend PHOTO: OSENI YUSUF

500,000 register for national ID card

Anglicans, Saraki task govt on security

From Kanayo Umeh, Abuja HE Director General of the National Identity Management Commission (NIMC), Chris Onyemenam, at the weekend disclosed that over 500,000 Nigerians have so far been registered in the on-going national identification registration exercise. Onyemenam, who took some journalists on a facility tour of NIMC Headquarters in Abuja, also displayed state-of-the-art equipment that have been installed to successfully execute the on-going project. He stated that pursuant to a successful execution and enrollment for Personal Identification Number (PIN), which will eventually lead to the issuance of General Multipurpose Card (GMPC) to Nigerians and legal residents, the Commission has deplored equipment for the National Identity Management System in all the 36 states, as well as the FCT.

From Abiodun Fagbemi (Ilorin) and Alemma-Ozioruva Aliu (Benin City) HE Benin Diocese of the Church of Nigeria, Anglican Communion and a former governor of Kwara state, Bukola Saraki, have urged the Federal Government to leave no stone unturned in ensuring security of lives and property in the country. The church, in a statement issued at the end of its 17th Synod yesterday, signed by the Bishop, Peter Imasuen and the Chancellor, Justice Samson Uwaifo, commended law enforcement agencies for their handling of the security challenges in the country, particularly in Edo State. “The Synod is again calling

‘Nigeria has no record of visiting tourists’

By Tolu Okunlola ATIONAL President of Christian Welfare Initiative (CWI), Archbishop Magnus Adeyemi Atilade, has called on men and women of integrity, particularly Christians, to join political parties of their choice in 2015 to save Nigeria from impending disintegration. Speaking in Lagos at the weekend, at the third anniversary of the CWI, Atilade said honest and respected citizens must rise and salvage Nigeria from leadership ineptitude, bribery and corruption, mass youth employment and insecurity already overwhelming the country. He noted that majority of the current politicians are self-serving people who are only interested in what they could make out of Nigeria and not what to do for the country to make it a great nation and stamp out poverty and want. According to Atilade, the wealth of the nation is enough for the entire people of Nigeria to make good living. Atilade, who noted that politics is believed by Nigerians to be a dirty game, said if good people continue to hold this view, bad people will continue to govern the country and impose their

By Ajibola Amzat HE development of Nigerian tourism sector to the level of foreign exchange earner may have been hampered by a catalogue of drawbacks ranging from underfunding, security crisis and poor infrastructure to lack of data necessary to develop strategic plan for the industry. Minister of Culture, Tourism and National Orientation, Edem Duke, gave this hint during a TV programme, 90 Minutes on AIT held at the weekend. According to the minister, Nigeria does not have the record of tourists who visit the country. “Some say about 6,600 come into Nigeria everyday, but we don’t have data for tourism because the data for tourism is supposed to be generated as part of the activation of the master-plan for the sector. Therefore, the position of Nigeria in global tourism equation is unsatisfactory,” he said. According to the minister, there is a plan to activate the tourism master-plan through which the ministry will develop satellite account that would help determine who is coming to Nigeria and for what purpose.

on President Goodluck Jonathan to, as a matter of urgency, pick up courage to deal with security decisively without fear or favour. How can the President grant amnesty to those who destroyed lives and property, including places of worship and yet allow those who steal goat and chicken to remain in prison?”, it said. Governor Adams Oshiomhole, who was represented by his Deputy, Pius Odubu, advised Christians in the country to continue to make peace and tranquility their watchword. He urged Christians in the country, particularly those in northern Nigeria, not to be provoked to anger despite the challenges they contend with at the

moment. Describing the period as trying times for Christians, the governor stressed the need for them not to revenge any wrong done to them as vengeance belongs to God. Saraki, who was at the weekend in Bida, Niger State, turbaned: Turaki Raya Kasar of Nupe Kingdom, spoke with reporters in Ilorin, Kwara State capital, after the event. He said good governance and religious tolerance are the solutions to insecurity problems in Nigeria, noting that once the aggrieved citizens have in abundance true benefits of democracy, they would live in the reality of being part of the ruling government as demanded by democracy.

Cleric urges honest Nigerians to join politics N

will on the entire people. The cleric said any government that would emerge in 2015 must be a good one that could restore Nigerians’ innate creativity, ensure security, deepen citizens’ inner stability and tackle head-long the problem of youth unemployment. He added that those wishing to join politics in 2015 must be prepared to uphold the virtues of honesty and responsibility and exhibit our social core values, because only honesty could

exalt a nation. Prof. Christopher Awodipe, who was the guest speaker at the ceremony, identified religious leaders as part of the country’s problems, alleging that they failed to tell the truth to the leaders and office holders who are their members, because of the little gifts and donations the politicians give them. He said religious leaders should see themselves as the conscience and ears of the nation, and should always tell politicians the truth.

the Ilaje intelligentsia, represented by Dr. Soji Omowole, former Rector of the stateowned Rufus Giwa Polytechnic, were also present. The non-political gathering lamented the ecological degradation of the environment and economic deprivation of the residents of the oil areas despite the billions of naira being set aside on monthly basis for the development of the communities. The meeting also lamented what it called lack of government’s interest “at catapulting the education pedigree of the youths in the mandate area of the oil and gas communities through scholarships and bursary awards. “The forum resolved that the diversion of the 13 per cent derivation fund accruing from the oil and gas producing area to non-oil producing areas will no longer be tolerated as every available machinery or apparatus would be used to counterblast such diversion henceforth. “The stakeholders, therefore, called on the relevant agents or agencies, especially Revenue Mobilisation and Fiscal Allocation Commission (RMFAC), to rescue the legitimate oil and gas producing communities from underdevelopment by channeling our 13 per cent Oil Derivation Fund to us as against channeling it through the state governments.” In his speech, Omojuwa, who spoke specifically about the situation in Ondo State, said: “This agitation became necessary due to unimaginable neglect, frustration and the poverty-stricken state of the people and communities.

THE GUARDIAN, Monday, June 24, 2013

WorldReport 10 die in grenade attack on Kenyan camp for displaced persons

1,000 feared dead in India’s flood disaster

O fewer than 10 people N were killed yesterday in a grenade attack on a damp for

NDIA’S rescue operations Iyesterday were reportedly intensified • Govt intensifies rescue operation in northern part of

displaced people in the far northeastern tip of Kenya near the borders with Somalia and Ethiopia, police said. “We have lost 10 people after a grenade attack. Those killed were in one of the IDP (internally displaced people) camps,” where people have been staying after fleeing recent attacks, said a police officer in Mandera county, two days after inter-clan violence claimed nine lives in the region. The attack took place in an area where the Garre and Degodia clans have been feuding for several months. The violence has since spread to neighbouring Wajir county. It also occurred as leaders from the region met officials from the National Cohesion and Integration Commission in Nairobi to reconcile the two warring communities. Kenya’s police chief, David

Kimaiyo, said that some of those leaders may have been behind the latest violence. “We have summoned all elected leaders from Mandera and Wajir counties to be questioned over the attacks between the two communities in those regions. This includes governors, senators, members of parliament, women representatives and county representatives,” he said. “They must come and clear their names because we strongly believe some of them are involved in fanning the violence.” Nine people were killed last Friday in two separate incidents linked to the GarreDegodia violence, four in Mandera county and five in Wajir in what police said was a revenge attack. The Kenyan government announced in May that it had sent police reinforcements and was planning to deploy soldiers to restore peace in Mandera county.

the country where up to 1,000 people are feared to have died in landslides and flash floods that have also left thousands of pilgrims and tourists stranded without food or water for days. According to agency reports, about 557 bodies have been recovered after torrential rains struck the Himalayan state of Uttarakhand on June 15, flooding the Ganges river and devastating the region known as the “Land of the Gods” for its revered Hindu shrines. Moreso, officials said some 15,000 people were still stranded in remote areas with the full extent of the loss of life only likely to emerge after flood waters recede and rescue workers reach isolated areas “The death toll could be more than 750 – maybe around 1,000,” Uttarakhand chief minister, Vijay Bahuguna, said in the state capital Dehradun. In Govindghat, a small town on the route to the Sikh holy site of Hemkund, army personnel built temporary bridges by stringing ropes across river banks to help civilians cross safely, an Agence France Presse (AFP) reporter at the scene said. In a huge relief to distraught relatives waiting for news on their loved ones,

Officials said some 15,000 people were still stranded in remote areas with the full extent of the loss of life only likely to emerge after flood waters recede and rescue workers reach isolated areas. nearly 6,000 people were rescued by the ground and air force personnel braving rough weather and inhospitable terrain. “550 people who were left stranded in Jungle Chatti area have been evacuated. We have also steered to safety another 2,500 people from Badrinath,” rescue officials said in Dehradun. Raging rivers have swept

away houses, buildings and entire villages in the state, which was packed with travellers in what is a peak tourist season. Dozens of helicopters and thousands of soldiers have been deployed to help those trapped across the state, including many residents whose houses have been damaged. Around 120 bodies have

been recovered from the Kedarnath temple complex and more were feared to be lying in a nearby jungle where tourists took refuge after hotels and other buildings collapsed in the deluge. Nishi Shrivastava, 30, recounted with horror how she had to virtually “navigate” among dead bodies strewn near the Kedarnath temple site. “Bodies were lying everywhere. It was worse than a nightmare. I had lost all hope of seeing my family members again,” she told AFP before boarding a bus in Dehradun to go back home to Agra in neighbouring Uttar Pradesh state.

South Africa’s opposition party wants probe of Mandela’s ambulance breakdown HE main opposition T group in South Africa, Democratic Alliance party, has demanded a formal investigation into the breakdown of an ambulance carrying Nelson Mandela to hospital earlier this month. While making the demand yesterday, David Maynier, the shadow defence minister and a top member of the group, said in a statement that “we have to be absolutely sure that the ... military ambulance service poses no future risk to the health of

former president Nelson Mandela.” The military intensive care ambulance that rushed the 94-year-old anti-apartheid hero to hospital in the early hours of June 8 developed engine trouble, resulting in a 40-minute delay until a replacement ambulance arrived. Maynier said the military health service has “let the country down”, adding that he would write to Defence Minister Nosiviwe MapisaNqakula “requesting that a board of inquiry be convened to investigate the

incident”. On Saturday, presidency spokesman, Mac Maharaj, said doctors were “satisfied” that Mandela suffered no harm during the wait for a replacement ambulance to take him from his Johannesburg home to a specialist heart clinic in Pretoria 55 kilometres (30 miles) away. The “fully equipped ICU (intensive care unit) ambulance” had a “full complement including intensive care specialists and ICU nurses”, Maharaj told Agence France Presse (AFP).

Snowden arrives in Russia, en route to Venezuela • U.S. seeks global support on ex-agent URPRISINGLY, man in the Sformer news and controversial United States (U.S.) spy, Edward Snowden, yesterday arrived in Russia from Hong Kong, reportedly on his way to Venezuela. With the current development, Snowden might have escaped the clutches of U.S. justice at least for now in a new dimension that was sure to infuriate Washington. Snowden, the target of a U.S. arrest warrant issued at the weekend after he blew the lid on massive secret surveillance programmes, arrived in Moscow on a direct flight operated by Russian flag carrier, Aeroflot. However, the American Justice Department said yesterday that it would seek the cooperation of law enforcement authorities in countries where the former NSA computer technician may travel. Justice Department spokeswoman, Nanda Chitre, said Snowden had left Hong Kong “for a third country” despite a U.S. extradition request. “We will continue to discuss this matter with Hong Kong

and pursue relevant law enforcement cooperation with other countries where Mr. Snowden may be attempting to travel,” Agence France Presse (AFP) quoted Chitre as saying. According to WikiLeaks, unidentified diplomats are escorting Snowden in his bid to secure political asylum in a country yet to be disclosed. “Mr. Edward Snowden, the American whistleblower who exposed evidence of a global surveillance regime conducted by U.S. and UK intelligence agencies, has left Hong Kong legally,” WikiLeaks said in a statement. “He is bound for a democratic nation via a safe route for the purposes of asylum, and is being escorted by diplomats and legal advisers from WikiLeaks.” According to Russian media, Snowden, 30, will head to Venezuela via Cuba. Meanwhile, China said yesterday that it was “gravely concerned” over cyber attacks by U.S. government agencies after new allegations they had snooped against Chinese targets.

THE GUARDIAN, Monday, June 24, 2013

WORLD REPORT 9

Hamas, Hezbollah helped Morsi, others escape jail in 2011, says court N Egyptian court has A revealed that the Hamas rulers of Gaza and Lebanon’s Hezbollah movement helped prisoners, including current President Mohamed Morsi, escape during the 2011 uprising. The head of the court in the Suez Canal city of Ismailiya asked the state prosecutor to investigate the circumstances of the January 2011 breakout from the Wadi Natrun prison, northwest of the capital. He said that the Muslim Brotherhood, the Islamist group from which Morsi hails, had organised the escape with members of Hamas and Hezbollah. The court also called on the state prosecutor to ask Interpol to circulate an arrest warrant for Sami Shihab, a Hezbollah official who had been convicted of plotting attacks in Egypt and who was serving a prison sentence at Wadi Natrun before escaping, along with members of Hamas. Morsi said at the time that there had been no need for him and 33 other members of the Brotherhood to escape as the people “opened the doors” for them. In another development, Defence Minister Abdel Fattah al-Sisi has warned that the army will intervene if violence breaks out in the country where opponents of President Mohamed Morsi are planning rallies against him this month. “The armed forces have the obligation to intervene to

stop Egypt from plunging into a dark tunnel of conflict and infighting,” al-Sisi warned yesterday on the eve of the first anniversary of Morsi’s election as opposition leaders clamoured for his resignation. Morsi’s opponents, who accuse him of hijacking the 2011 uprising that toppled Hosni Mubarak’s regime, plan a rally on June 30 to mark the day Morsi was sworn in as Egypt’s first civilian and Islamist president. Meanwhile, Luxor’s new governor, a member of an Islamist party linked to a massacre of tourists in Egypt’s famed temple city, yesterday said he was quitting after his appointment triggered an outcry and the resignation of the tourism minister. Adel al-Khayat told a news conference broadcast live on television that he had decided “to submit my resignation to Prime Minister Hisham Qandil” just a week after his appointment. Khayat is member of the political arm of ex-Islamic militant group, Gamaa Islamiya, which had claimed responsibility for the massacre of 58 tourists in Luxor in 1997. Morsi on June 16 named Khat along with 16 other new governors, including seven from his Muslim Brotherhood movement. The nomination drew widespread criticism in Egypt, where opponents of Morsi have accused him of hijacking the 2011 uprising that top-

pled the regime of Hosni Mubarak. The appointment was seen as a blow to the once-lucrative tourism industry which has been struggling to recover after the uprising against Mubarak. It prompted Tourism Minister Hesham Zazou to tender his own resignation last Wednesday, saying Khayat’s nomination was an affront to the tourism industry. Qandil refused to accept the resignation. Zazou has insisted he would continue to halt work “as long as the new governor remains in his post, greatly harming tourism in Egypt generally and Luxor specifically,” the prime minister’s spokeswoman, Rasha alAzaizy, said last week. Khayat belongs to the Construction and Development party, the political arm of Gamaa Islamiya which was blamed for a spate of attacks in the 1990s before it renounced violence. A coalition of opposition groups, trade unions and tourism workers had threatened to close down all pharaonic temples and tourist attractions should Khayat remain in the post. Luxor in southern Egypt, is an open-air museum of intricate temples and tombs of pharaonic rulers and landmarks such as the Winter Palace hotel where crime novelist, Agatha Christie, is said to have written her thriller “Death on the Nile.”

THE GUARDIAN, Monday, June 24, 2013

Politics Disquiet in Enugu over oath-taking, bribery for council polls From Lawrence Njoku, Enugu

As the gladiators in Igbo-eze North battle on, on who gets what, the Nsukka local government is enmeshed in crisis over allegations that the council’s budget for 2013 was passed into law without going through the reading process by the lawmakers. Subsequently, a group under the aegis of Nsukka Development Forum (NDF) is pushing for the immediate recall of the 20 councilors in the council, as a result of the alleged constitutional breach. HE political atmosphere in some local govT ernment areas in Enugu State is no longer comfortable. This is as a result of the “fight” by stakeholders over who controls the structures of the ruling Peoples Democratic Party (PDP) in the run-up to the council elections in December, and probably the 2015 general elections. Although the contention spreads in all councils of the state, it is not as pronounced as in the Enugu North senatorial zone. The reason for this is obvious. Apart from the party signaling its intention to zone the governorship position of the state to the area in 2015, so many gladiators have lined up to contest or ensure that the right things are done. Thus, to get the support of the stakeholders, money is reportedly being thrown about in Enugu North, to ease out certain occupants of office at the council level, who may constitute obstacles during the 2015 elections, using the December 2013 council poll as a springboard. Consequently, those who have benefited from the largesse are allegedly being subjected to political oath-taking, apparently to ensure that they do not disappoint in their support at the end of the day. This is the point of discord in Igboeze North and Nsukka councils of the state, where certain ward chairmen and their officials have been accused of political oath-taking, to deliver their wards to certain interests, after collecting undisclosed sums of money. Unless something is done fast, the matter has the tendency of snowballing into a major crisis in the area. Perturbed by the dimension it had taken so far, and perhaps, to avoid any ugly occurrences, the leadership of the PDP in the state has directed the Enugu North senatorial district office of the party, headed by the zonal vice chairman, Chief Mike Ejinima, to probe the political mess rocking the party in the council area. Ejinima, who confirmed receiving the directives from the leadership of the party, said that he had also received several petitions from various groups in the senatorial zone over the development. “We are looking into the petitions and will soon come up with a position on them,” he told The Guardian. However, it was gathered that the situation in the party is more tensed in Igboeze North council, which is the council area of the chairman, Senate Committee on Works, Ayogu Eze, representing Enugu North senatorial zone. Eze allegedly has interest in the governorship of the state in 2015. It is being viewed that removing the structure of his council from him by dividing his ward chairmen would destabilise his ambition; and this is possibly why the contention has started from here. But the 20 councilors of the local government have insisted that their ward chairmen be tried and sanctioned for allegedly collecting money and allowing themselves to be led into oath-taking. They made the demand in a

Chime

Eze

Odoh

signed statement by the leader of the House, Kenneth Odo and his deputy, Tochi Mama. Describing the action of those who took the said oath as barbaric, the 20 councilors stated: “We condemn in strong terms, the oathtaking by some PDP officials in some of the electoral wards, and thereby mortgaging their conscience, contrary to the constitution of the party. “As leaders of these wards, we state that this barbaric conduct is unacceptable in the politics of our local government area and we hereby urge the party to address this matter strictly in accordance with the party’s constitution, as a way of deterring others from engaging in this type of shameful behaviour.” They equally dismissed, as untenable, the allegations the rebellious ward party officials leveled against Luke Uroko, the Igboeze council chairman of the party, saying that the allegations are “an attempt to divert attention from the grievous act of oath-taking into which they allowed themselves to be misled. ” “We, therefore, pass a vote of implicit confidence on the chairman of the local government council, Mr. Bonaventure Onuh,” they stated, maintaining that the council boss had done well so far. But while the councilors are busy pressing for punishment for the ward chairmen, 20 ward secretaries of the council, in a petition they signed and sent to the party executive, said they were solidly behind the action of the ward chairmen, just as they asked that certain leaders of the party in the council be cautioned over their activities. Their petition reads: “Having regards to the current development in Igbo-eze North PDP executive structure, we the undersigned (ward secretaries) hereby affirm our total support for the efforts of the Igboeze North ward chairmen, whose position has opened the canker worms that have been silently eating our party. “The local government position of the party chairmen on internal democracy, no doubt, is needed to strengthen the party before the forthcoming elections.” The secretaries also deplored the activities of some stakeholders of the party in the council, whom they accused of “sharing N5,000 from the local government fund to each ward executive and forcing them to sign documents, which they claimed were given to them on the instruction of the governor of Enugu State, Sullivan Chime.” They added that the leaders had so far visited six wards to obtain signatures. Speaking on the development, the party council chairman, Luke Uroko, alleged that 18

electoral ward chairmen and some of their ward officials were allegedly involved in the political oath-taking apparently to pander to the wishes of perceived aspirants either in the 2013 council elections in the state or the 2015 governorship election. He traced the source of the money tearing the council apart to an unnamed politician in the state, explaining that was “an underground plot to buy off the structures of the party in Enugu North senatorial zone before the 2015 general elections.” Uroko said the officials confessed to having taken the said political oath, and that it was based on their confession that his party at the local council level set up a probe committee, to find out the number of officials involved, the sponsors of the politicians and “to make sure that they are liberated from the entanglement with the idols.” “It is against the principles and constitution of the PDP and even the Nigerian Constitution,” he said. “We want to make them free party members and free from being mortgaged, especially as that state of affairs would affect their actions during party primaries and during actual elections.” One of the break-away ward chairmen, Mr. Alexander Urama, who had addressed newsmen on behalf of others over the crisis, accused Uroko of bad leadership and that they had attempted to complain to Senator Ayogu Eze. He also alleged poor political leadership in the council, an accusation the councilors dismissed as unfounded. In a separate interview, one of the party officials and the ward secretary for Ozzi Ward V, Mr. Samuel Idoko, who said he backed out of the alleged oath-taking, explained that he did not take part because of the perceived implications of the action, and condemned those who did. Meanwhile, as the gladiators in Igbo-eze North battle on, on who gets what, the Nsukka local government is enmeshed in crisis over allegations that the council budget for 2013 was passed into law without going through the reading process by the lawmakers. Subsequently, a group under the aegis of Nsukka Development Forum (NDF) is pushing for the immediate recall of the 20 councilors in the council, as a result of the alleged constitutional breach. It was learnt that before the 20 councilors proceeded for this year’s Easter break, the House Leader, Mr. Festus Ugwu, allegedly convinced them into going ahead to pass the budget without reading it for once. According to the source: “I think we have

now seen the reason for the coup Nsukka people witnessed early this year in the leadership of the council. “You recall that the (legislative council’s) leader and the deputy were removed without following due process. I am not holding the brief for them, but from what is happening, it is clear that the council chairman wanted them out so that the kangaroo budget would be passed without hitches. “I can tell you that the budget was not read even for a day in the Nsukka Legislative Council, neither was any of the supervisors invited to defend any part of the budget; the only thing they did was to send it back to the chairman for accent few days to the Easter break. “As I speak to you, the so-called budget has been signed by the council chairman, Barr. Tony Ugwu. I consider such thing a major setback on grassroots development. Both the chairman and the councilors should be summoned by the Enugu State House of Assembly; they are all culpable.” The Guardian, which was shown the record of proceedings of the council lawmakers, discovered that the budget never featured in the discussions of the council from the date it was presented till its signing. Angered by this development, the NDF has called on the Enugu State House of Assembly to investigate the processes involved in the passage of the 2013 budget of the Nsukka council. The coordinator of the group, Comrade Chika Ezeugwu, said, “we cannot accept a situation where the entire Nsukka people should be taken for granted.” Calling on Governor Chime and the State Assembly to investigate the embarrassing situation in Nsukka council, Ezeugwu argued that the budget that the chairman signed into law was exactly the same thing with the 2012 budget of the council. “The only difference in the two budgets is the date,” he said, adding, “now, the question we have is: ‘does it mean the chairman did nothing in 2012? What happened to the money budgeted for these projects in 2012?’ “So, we demand that the chairman and the councilors should be investigated, to determine the role they played in this saga. We shall not hesitate to proceed to the Economic and Financial Crimes Commission (EFCC).” In a reaction, the embattled Leader of the Council, Mr. Ugwu, said in a telephone interview that all legislative processes were adhered to before the budget was passed. He, however, declined further comments on when the budget was presented for reading before the House, stressing, “it is not true; it is an allegation.”

THE GUARDIAN, Monday, June 24, 2013

POLITICS

14 years of democracy aren’t all bleak, says Enabulele Dr. Osahon Enabulele, president, Nigerian Medical Association (NMA), spoke to Alemma-Ozioruva Aliu in Benin City on Nigeria’s return to democracy. HAT is your position on Nigeria’s 14 W years of uninterrupted civil rule? Certainly, Nigeria is not where it ought to be; we are more than half a century old as an entity. After 14 uninterrupted years of civil rule, Nigerians expected that by now, we would have been seeing a lot of our expectations being met. Unfortunately, we are yet to realise most of our dreams, most of our expectations, and most of our desires. And Nigerians are almost getting to a point of despondency, so clearly and truly. While we celebrate that we’ve had uninterrupted civil rule, bearing in mind the very unnecessary interruptions we’ve had in the past as a result of military pre-occupation; we want to say that that has not been translated into real dividends of democracy in several aspects of their lives. Over 70 per cent of Nigerians are still living below the poverty line in spite of the resource endowment of this country. There is very strong reasons for us to be troubled by the fact that even the democracy that we expected would translate into dividends for Nigerians seems not to be happening. But that is not to say that efforts have not been made by governments in the past and even the present one to see how they can get some of these expectations met. So, while we celebrate and congratulate ourselves, we haven’t been able to keep pace with expectations of democracy in terms of civilian-tocivilian transitions, in terms of what should peculate to the very homes of Nigerians; that seems to be lacking substantially. What is responsible for this slow pace of our democratic development? First is to appreciate and understand that Nigeria has been troubled for many years now going by our historical trajectory, going by Nigeria coming to be; and, of course, how we’ve always played our kind of politics, how the military has also truncated the aspirations and destiny of Nigerians. So, a concatenation of factors is responsible for this current lack of satisfactory development in Nigeria, especially with the politicians in control. The politicians are yet to grapple with the ideals of politics, by seeing politics as a platform for attuning the yearnings and aspirations of the people. Politics in Nigeria largely is still all about self, all about personal aggrandisement, all about using official positions for private ends and needs, and perpetuating their own ambitions.

We are yet to have a platform where politicians and those in authority can largely see the opportunities as God-given opportunities to use to translate the expectations of their constituents into practical dividends. Unlike what you have in other developed economies, where every officer of government sees it as first a primary responsibility to his own constituents and secondarily to his private occupations; in Nigeria, it is the opposite. It is worsened by the fact that we have a disoriented civil population. In other words, because of the disorientation in values, because of what people have seen over the years that have been translated into a norm either within the political sphere or even within the civil sphere where the lack of role models, the poor value orientation has created a situation where the officers, who are supposed attune themselves to the very expectations of Nigerians, are encouraged by the fact that people are now accustomed to wrong values, wrong norms in the political sphere. I think essentially, the inability of our politicians to learn the real culture of political administration and dispensation, as to use whatever platform they have to satisfy the yearnings of their people, is largely responsible for why we are where we are today. Today, we still have a very negative political character that has infested the politics of Nigeria and unless and until we are able to clean that through institutional means, including setting up institutions to properly orientate our leaders, the political class and parties, Nigerians may have to wait for a long time to see political officers attuning themselves to their expectation. Is there anything good about our democracy so far; is there anything to celebrate? I think it is not all a bleak picture; that we have been able to sustain civil dispensation is something that we should celebrate. There are developments that have occurred during these 14 years. For instance, the electoral reformation that is still ongoing; I think that is one thing that we can also clearly appreciate and celebrate because unless we get our electoral system right and proper, we cannot be guar-

anteed effective leadership at all levels of government; local, state and federal. To that extent, especially by the current government, there seems to be some efforts to see how the electoral system can be reformed, especially borrowing from the vey strong resolve of the late President Umaru Musa Yar’Adua to reform the electoral system. So, to some extent, there have been some success stories, we only hope that it can be sustained. For some who have travelled round, you will also appreciates, in spite of whatever side of the divide that you are, that there have been some developments in some sectors. For instance, if you look at the aviation sector, for those who travel by air, for the first time, if you go round the country, you find out that there have been some level of transformation even if we have to say they are just physical facilities that can be seen in terms of the aviation section. But again, looking at the fact that we have never really had this massive, comprehensive reform of the aviation sector in terms of the infrastructural base, that is something that we must commend ourselves: that we have some leaders who also believe that as much as have been given to them, they have also a responsibility to the people to give something back to the them. Also, there seems to be some efforts in transportation. Rail transportation seems to be coming back on stream and I think this is something that we must appreciate because that will substantially drive a lot of improvement in the lot of Nigerians, especially those who cannot afford the high road transportation fees and air fares. My message to Nigerians is to keep hope alive; that in spite of the deprivations of the land, in spite of the challenges, in spite of the immense suffocating environment we have found ourselves as Nigerians, we should look ahead and see how we can make the best of the bad situation, see how we can cooperate with each and every other Nigerian towards realising the Nigeria of our dream. I want our political leaders to use the opportunity of this celebration of our

Enabulele

INEC will not succumb to pressure over APC registration, warns Jega From Ezeocha Nzeh, Abuja

HE Independent National Electoral T Commission (INEC) has said that it would not succumb to any form of pressure in carrying out its statutory functions on the request for registration by the merging All Progressives Congress (APC). The commission’s chair, Professor Attahiru Jega, also described as untrue, reports that he was being pressured to favour President Goodluck Jonathan and the ruling Peoples Democratic Party (PDP) in the 2015 general elections. “I’m not under any pressure to register any party or not to register any; we will do things according to the law,” he said. “I can’t be put under pressure to do this job. INEC will not succumb to any pressure. According to him, the matter is straight-

forward. “There are procedures. It is either you meet them or you don’t meet them. “Those who fulfill the conditions will get registered. People are making a mountain out of a molehill, creating a problem where none exists.” In release in Abuja Jega was quoted to have vowed to ensure that the commission follows the due process in handling the APC application for registration. However, he stressed that INEC would not bow to any form of pressure from any quarter in the process of registration of the merging APC. While emphasising that there was no controversy as far as the commission was concerned in the registration process of the APC, Jega explained that the registration of political parties are prescribed by the legal framework. The chairman, who observed that the closer the country inched toward 2015,

the more tumultuous the political scene becomes, regretted that Nigerian politicians were not the best species, accusing them of being prone to intrigues and brinkmanship. Jega, who noted that he would not allow the commission to be distracted by mischievous politicians, gave the assurance that neither he nor the commission would be partisan in the discharge of their constitutional duties. “There is no single issue in the commission’s dealings that anyone can point to and say either myself or the commission is partisan or construe the commission to be partisan, he said. Jega

Democracy Day to have a rethink of the style of their governance at local, state and federal levels, to ask critical questions as to how they have been able to give expressions to the mandate conferred on them by their own constituents. I want to use this opportunity to call our leaders, at local, state and federal levels to do more to utilise the health facilities within their own constituencies, rather than jump into the next available plane to procure health care services abroad. That, as part of their Democracy Day resolution, they should resolve that from now onwards, they will no longer needlessly travel abroad to procure health care services for conditions that could be safely and effectively and efficiently delivered in the country. That they will line up with other Nigerians, whether in their local governments, in their state governments or federal government with innocent Nigerians to procure health care services in the same public facilities, which every year they make budget for. What is your take on the controversies surrounding the Nigerian Governors’ Forum (NGF)? It is very unfortunate that we are having this kind of unnecessary crisis within the Governors’ Forum and even subsequent developments, which give the impression that some players are distant from the very reality of the Nigerian state where we have a very high level of insecurity, where Nigerians everyday are unable to sleep with their two eyes closed and looking for options on how to contain the level of insecurity in the country. Coming at this point in time tells a lot, perhaps, of those we have given the mandate to lead us. I think it is one unnecessary crisis that, if not well handled, will lead to very untoward events in the Nigerian state. I think it boils down to the same negative political character because for Nigerians, they have been too bothered with certain institutions that really shouldn’t be their pre-occupation. The Governors’ Forum, to all intent and purposes, is supposed to be a free association of free minds guaranteed by Section 40 of the 1999 Constitution, as amended, to freely associate with themselves. But even within that, I believe they have guiding rules and regulations, which all of them are supposed to adhere to and without undue interference from external bodies. To the extent that they’ve not been able to do this suggests that, perhaps, the Nunc Dimittis end of the forum is already being sung. And with further conflagrations expected to come from this by virtue of the recent declarations, pronouncements and actions, we may just be seeing the beginning of the end of the Governors’ Forum. But I think it is one unnecessary crisis that is being brought to bear on innocent Nigerians. It is a clear manifestation of how politics should not be played.

THE GUARDIAN, Monday, June 24, 2013

TheMetroSection How I was tortured ...

Briefs Awotona, 63, for burial

• Cleric narrates ordeal in the hands of ‘unknown’ soldiers in Owerri called the rampaging soldiers to release me immediately, instead of releasing me; they took me to a police station. “I don’t know what they told the police I did, but the police kept me in their cell for six days until they went to Tin Can Island in Lagos and brought the car. When the car arrived, the man went with the vehicle and my money. I had gone to the army barracks to meet their commander who told me he was aware of the matter and promised that they were looking into it, but up till now, I have not heard anything positive from them. “As I speak to you now, I am still sick, I have not recovered from the humiliation and beating they gave me. I went to army headquarters in Imo State and I was told that the command that has jurisdiction over the matter was in Ohafia. I set out for Ohafia where I met their boss and submitted the petition. What I simply want is that the matter should be investigated to see if I was wrong in any way.”

By Odita Sunday NKNOWN Soldiers” are on the “U prowl again. Their victim this time around is one Bishop Kenneth Obi, a Nigerian clergyman who has lived in the United States of America for over three decades. Obi alleged that he was “inhumanly treated” in Owerri by personnel of the Army maintained with citizens’ tax money. The clergyman, who spoke with The Guardian for about an hour on phone, wept like a baby while narrating his ordeal. His pain was that he has never been treated the way Nigerian soldiers treated him, even in a foreign land. His simple request was that the Army authorities should sincerely investigate the matter and bring those personnel who treated him with scorn to justice. He insisted that it was the only way the military would realize that its duty is to protect civilians in the country and not to torture them. The soldiers were allegedly hired by a friend (names withheld) whom he helped to procure a car from United States of America. His story: “I am a pastor, I live in United States of America, I am the Imo State Coordinator of Citizens for Righteousness. A certain young man contacted me and said I should buy him a Toyota Venza Car. By February 21, 2013, I was in possession of $24,000 The victim, Bishop Obi he sent me to buy the car. I ended up point that my life was in danger, and buying the car for $26,000, which then I went to the Imo State Police meant that I added my own 2,000 Command and gave them a petition USD to buy the car.” over the threat to my life. He was not “I bought the car on February 22, on convinced that I bought a car for him February 23, I left for Owerri, Nigeria, despite the tracking of the car having handed it to a shipping agent. through the shipping company and Immediately I left the US, I informed other evidences. We showed him this young man whom I am helping everything, showing that the vehicle that the car was coming. Since that was coming, but the young man still day, the man started threatening my did not believe me. life because he did not believe I actu- “To God be the glory, the vehicle fially bought him a car. I did not know nally arrived Nigeria on May 5, 2013. what he wanted me to do to convince It was agreed that they would bring him I bought him a car.” money for me to go to Lagos so that I “He was sending me email correspon- could clear the car and also collect dence threatening my life. It got to a part of the money they owed me. In-

stead of bringing the money, they loaded soldiers to come and beat me up in the church premises where I was worshipping in Owerri. They shot sporadically into the air, slapped the pastor’s wife with a cutlass and bundled me into their vehicle to an unknown destination. I found myself with the soldiers in a secondary school.” The clergyman added: “They battered me and left me naked. It was a very pathetic situation. They wanted me dead but for the quick intervention of an army General who my brother called, I would have become a dead man. The General was the one who

He urged the military authority to spot out those soldiers and bring them to justice so that unsuspecting Nigerians will not become victims in future. He said: “ I want the those soldiers who dealt with me fished out and brought to justice, if not, some of us who lived abroad for many years would be afraid to come back to our own country because of lawlessness. The Chief of Army Staff should do everything to stop this impunity by his men and make them submit to democratic ethos. “I have presented my case to the Christian Association of Nigeria (CAN) and the Pentecostal Fellowship of Nigeria (PFN). I was really treated like a criminal and I will not be happy if the Army high command fails to investigate this matter. “The reason why it must investigate is that there are still many Nigerians in that camp where they took me and their families are not aware of it. They are still there because they don’t have anyone to get them out of detention like me.”

Mother of abandoned baby seeks assistance to claim, cater for baby AVOUR Abdulazeez, who claimed to be the mother of a baby girl that was abandoned at the backyard of an apartment in Kuje, Abuja, has solicited for financial assistance from the public to enable her to claim and take care of the baby. Abdulazeez told the News Agency of Nigeria (NAN) that she abandoned her baby because she was jobless, divorced and had no means of fostering the child. She said that when she kept

the carton with the baby inside the bush, she did not go away but hid in the bush to know who would pick the baby. She stated that she did this to enable her know the person who would pick the baby girl to enable her to do a follow-up. “All along, I was monitoring the baby’s situation, I know those who picked the baby and took her to the police.” “I was listening to their conversation from my hideout, I

even followed them from a distance when they were taking my baby away,’‘ she said. Abdulazeez, who turned up at the police post in Gwagwalada on Friday to claim ownership of the baby, added: “I told the police that I would take care of my baby if only the government would assist me with a job or a trade no matter how small.’’ Insp. Yahaya Musa, the Police Area Command in Gwagwalada, FCT, had on

Friday declined comments on the matter, saying that he was not authorised to speak to newsmen on the matter. Musa instead referred NAN reporter to the social welfare unit of the Gwagwalada Area Council for further enquiries. Mrs Hanatu Turu, Head of the Social Welfare Department of Gwagwalada Area Council, said that she was aware of the incident. She said police should be allowed to conclude their in-

vestigations. Abdulazeez was said to have been delivered of the baby girl on June 13 and secretly put her in a carton and took her to a nearby bush behind her house at night, where she abandoned the baby. A resident in the area, who pleaded anonymity, told NAN that Abdulazeez is her neighour, adding that it was the cry of the baby that drew the attention of passers-by who later took the baby to the police outpost.

Church protests takeover of its premises by motor park touts PENTECOSTAL Church, the Gospel Faith Mission A International (GOFAMINT) has urged the Oyo State Government to intervene and help resolve the problems arising from the siting of a motor park at the entrance of the Church by members of the Ojoo Unit of the National Union of Road Transport Workers (NURTW) in Ibadan. In an appeal letter signed by the General Secretary of the Church, Pastor Ezekiel Ade Ojo and the Legal Officer Sam A. Adegbite Esq, which was sent to the Oyo State Governor Abiola Ajimobi and the Chief Controller of Federal Ministry of Works in Ibadan, the Church said members of the NURTW forcefully occupied the entrance of the Church premises overlooking the Ibadan/Ilorin main highway in Ibadan on Tuesday, May 14, 2013 and turned the

place into their park. According to the church, the Union came in with the support of some staff of the Akinyele Local Government Area in Ibadan and Oyo State- “YES O” Corps members- and destroyed the gate, the fence and other valuable property put on to protect the church premises before they moved in. The presence of the members of the NURTW at the entrance of the church and their characteristic motor park behaviour, such as smoking of Indian hemp, defeacating around the premises and noise pollution, have since been intimidating members of the church, leading to a reduction in worshippers and causing tension in the area. The place has been the location of the Church’s National Headquarters for over three decades,

long before the recent construction of the new Ibadan/Ilorin dual carriage way. Apart from the large over 10,000-capacity worship centre, the church has within the said premises a National Secretariat building, a press, a bookshop, a nursery/primary school, a prayer house, a hostel and some residential buildings. Noting that the presence of a motor park is incompatible with the serenity expected around a church and a nursery/primary school, the church appealed the Oyo State government to speedily intervene in this situation to prevent violence, as the leadership of the church may not be able to restrain the youths, who feel constantly harassed by the presence and operations of the NURTW at the entrance of their place of worship, for too long.

HE death has occurred of T Mrs. Abiola Amope Awotona (nee Reffell). She died on June 18 in Atlanta, United States of America (USA). She was aged 63. A statement made available to The Guardian by the family, friends, says there will be a Service of Songs for her in Nigeria on Thursday, June 27 at St. Jude’s Anglican Church Cathedral, EbuteMeta, Lagos between 5p.m.7pm. Burial takes place in Marritta, Atlanta, USA on Saturday, June 29 ”.

Awotona

Church holds programme HE World Evangelical MinT istries will on Friday, June 28, will hold a programme tagged: New Glory at No. 4, Victory Bolatito Street, off Atala Junction, along Adesan Road Mowe, Ogun State from 100a.m. till dawn. Host is Prophet Gabriel Ashaolu.

Youth programme HE Redeemed Christian T Church of God,Lagos Province 17, Mowe Youth Cell in conjunction with Peculiar Treasure Singles and Married Ministry will on Saturday, June 29, hold a programme tagged: “Wisdom For Youth” at Garden Chicken Meals, along 09 Junction, Mowe, Owode Local Council, Ogun State at 10.00a.m.

Book launch BOOK, It’s a Journey, writA ten by Bemigho Omayuku, will be launched on Saturday, June 29, 2003. The 138-page and 13-chapter book, a compendium of man’s journey on earth, his experiences through life’s journey, the good and the bad times and life’s challenges, will be launched and dedicated at the Oriental Hotel, Victoria Island, Lagos, at 2.00 p.m.

Iyalla, 51, for burial UNERAL rites for Mr. FIyalla, Alexander Senibo Opuene begins tomorrow with a service of songs at the Christ Church Cathedral Hall, Marina, Lagos, at 5pm. Funeral service will take place on Wednesday June 26 at the same church at 11.00am. Interment at Ikoyi vaults and gardens. A fellow of the Chartered Insurance Institute of Great Britain (ACII and FCII), he is survived by his son, wife, aged parents and siblings.

Iyalla

THE GUARDIAN, Monday, June 24, 2013

14 | THE GUARDIAN, Monday, June 24, 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 As power remains a problem ONSTANT power failure in Nigeria compels fresh concern especially as the nation’s minister of power, Chinedu Nebo, has reportedly said that 120 million Nigerians are currently without electricity. With 75 per cent of the population among the unhappy group of, according to a World Bank report, about 1.2 billion people of the world with no access to a most basic necessity of modern life, Nigerians constitute 10 per cent of this deprived lot. This is a very sad commentary on Nigeria. The minister must, however, be quickly reminded though that his job is not to state the problem but fix it. It is, of course, trite to say that the cost of a lack of constant power supply is unquantifiable. Therefore, it is a shame on successive managers of the affairs of Nigeria that on this day and in this age, 160 million citizens have to live and work on no more than 4,000 mega watts of generated electricity, a large percentage of which is even lost in the process of transmission. It remains anybody’s guess just how the much-touted Vision 20-2020 would be achieved in the next seven years. In August 2010, President Goodluck Jonathan initiated a road map for the reform of the sector. The plan projected that 5,379MW would be generated by December 2011. Barth Nnaji even went further to say at the Senate screening to confirm him as minister of power that he expected an increase from about 3000MW in July 2011 to 15,000MW by 2014. subject to adequate funding. Four years after, the story remains the same: miserably inadequate generation, inefficient transmission, and equally inefficient distribution that every one attributes to poor funding. But it is evidentially established that year in year out, tonnes of money in just about every major currency is allocated to (although not necessarily spent on) the power sector. In his inaugural address on May 29, 2011, the president promised that transformation would be achieved in all the critical sectors, that the power sector reform was at the heart of his administration’s industrialisation strategy and that he would continue to fight for electricity to be available to all citizens. At that time, power generation was about 3,500 MW. Two years after, and billions of naira voted for it, this miserable figure has increased by no more than an even more miserable 1,000 MW. It would take a miracle to achieve the transformation of a country so underpowered. Besides the technical aspect of the problem, there is also the occasional threat of or real industrial action by power sector workers over privatisation, unsettled remunerations, and sundry labour-related matters. So much has been said, so much has been spent, and so much has been promised by successive administrations with little to show for it in the sector. The excuses from government for the dismal performance can sometimes be as unpardonably hare-brained as they are laughable. When power failure is not attributed to a shortage of gas to the thermal stations, it is, as claimed many years ago, some snake holed up within the Kainji dam turbine and which caused a nationwide power failure. Lately, new-on- the- job Minister Nebo said that outage in Bayelsa State was caused, in his words, by ‘a huge tree [that] fell on the transmission tower and shattered it up to the foundation’. Elsewhere, it is rainstorm that stands accused of bringing down transmission towers, or a systems collapse, or a ‘cascade trip’- whatever that means-, or hoodlums vandalising power equipment. Underlying all these ‘stories’ are what any right thinking person will discern as a contempt for the people that government is supposed to serve. Contempt for the customer public is obvious because, even as power supply remains persistently erratic, electricity tariff remains consistently on the increase and hapless Nigerians are arm-twisted to pay not for ‘light’ but for darkness. Government must let go the control of the power sector if only because of its embarrassing incapability to do what other governments elsewhere successfully do in respect of so cost-intensive an infrastructure as power. But instead of an appropriate recourse to the countless reports, submissions, and communiqués that, over the years, have documented the state of the power sector and what should be done, a 13- person technical investigative committee has lately been set up on systems collapse. Is there really a need for this committee? Doubtful! Moreso that, this government is wont to assign what it can and should do to expensivelyfunded committees that produce reports that are assigned to another committee for review that is neither ever made public nor acted upon. It certainly requires no magic to give Nigerians constant power supply. Only the political will to do so, a commitment, and judicious application of required funds, a transparent, fair, and dependable regulatory framework, and the continued involvement of the private sector to assure a market-driven power sector. In respect of the last point, it is good that generating companies and distribution companies are being sold off. It is also important that the transmission aspect be strengthened sufficiently so that the crucial bridge between generation and distribution is effective and efficient. In the place of excuses for non-performance, unfulfilled promises, and shifting target dates, a continued enlargement of the involvement of the private sector while ensuring that Nigerians are not ripped through unfair charges should be the immediate duty of this government. Nigerians are prepared to pay for quality service if it is rendered and fairly priced.

LETTERS

No infrastructural deficit in aviation tent infrastructure upgrade IR: The attention of the SManagement and capacity building which Nigerian Airspace Agency (NAMA), has translated to a marked has been drawn to the editori- improvement in air traffic management services within al in The Guardian edition of the country’s airspace. June 17, 2013 in which the Also, contrary to claims of newspaper berated the aviainfrastructure deficit, the tion industry, particularly NAMA, for what it termed “the explosion in air traffic as conchallenge of poor infrastruc- firmed by the piece could ture in Nigeria’s aviation sec- only be informed by the tor”. We, however, take excep- renewed confidence of the flytion to the newfound predilec- ing public about the enhanced safety of the tion for NAMA-bashing over Nigerian airspace. At Lagos spurious claims. NAMA, as the nation’s air navi- airport alone, passenger traffic swells over 22,000 per day gation service provider, has continued to meet its service with more than 350 flights. In addition, more foreign airdelivery portfolio by consis-

JAMB, Potter’s Wheel and The Successor IR: After an unintended in my UTME exam. Sbrat-made-best study of the character of the Despite the fact that I had less Obu, in than two hours to answer 250 Chukwuemeka’s the Potter’s Wheel and the uncompromising Terkura Atsen in Jerry Agada’s The Successor, I had to choose a new course for life. Achievement in this performance-driven world could not have been more denying than when you do not have rich parents. It could not have been worse than when the aura of your society is full of limitations-cum-challenges. This is the case of Obu and Terkura Atsen. Obu’s is a conflict of interest, while Terkura’s is a limiting society. Their ability to face their fears made me more studious in my preparation for the UTME this year (2013). I studied harder than I could. Little wonder I did well

questions, as I was late for the examination due to irregularities in JAMB’s dating, the system logged me out unfinished. I checked my result, trust me, I came out with 253. (Glad I am to God). Before I put my pen to rest, kudos to JAMB, for including creative texts in the English syllabus of the UTME - the first of its kind. I hereby plead that prescribed texts should not be restricted to literary works alone. The exam body should leverage on this platform to let Nigerians (students) know their country by prescribing texts about the country, and other eye-opening texts. •Kariola Mustahpa. Lagos.

lines now use our airspace due to the improvements in the sector. The recent transition of Nigeria to Area Radar service is another major landmark by the agency in its determination towards enhancing the nation’s airspace by deploying world-class air traffic service. Given the level of sophistication of this service in safety performance, it is therefore preposterous that issues that had long been addressed like communication and safe tower projects are still highlighted. The Total VHF coverage is working perfectly with a capacity of up to 350 nautical miles. The Kano 124.1MHZ, West 128.5MHZ and Lagos 127.3MHZ are all working optimally. TRACON is also affirmed to be working effectively. So, where are the “complaints” about TRACON coming from? For the records, NAMA has been a recipient of various awards and accolades from airline operators, pilots and stakeholders who are generally impressed with the level of service rendered by the agency. The current remodeling of airports by the Aviation Minister is a bold step that could only have been informed by courage and patriotism. This has also been complemented with massive deployment of navigational aids, effective regulation and capacity building, all targeted at a holistic transformation of the sector in line with ICAO standards. •Supo Atobatele,

THE GUARDIAN, Monday, June 24, 2013

BUSINESS 15

Business ‘Economic re-engineering at state level imperative for growth, development’ [P 96 ]

Shell stakes N612b on projects in Niger Delta By Roseline Okere HE Shell Petroleum T Development Company (SPDC) has taken the Final Investment Decision (FID) on two capital projects worth of $3.9 billion (N612 billion) in the Niger Delta. Besides, the Nigerian National Petroleum Corporation, (NNPC), and its subsidiary, the Nigerian Petroleum Development Company, (NPDC), have expressed their readiness to professionally and efficiently

run some of the assets and oil mining leases transferred to it by SPDC. Shell in a statement at the weekend, identified the two projects whose FID had been taken as the Trans Niger Pipeline loop-line (TNPL) and the Gbaran-Ubie Phase Two works. It disclosed that the total capital investment for the two bundles of projects was around $3.9 billion. The Managing Director of SPDC and Country Chairman of Shell Companies in Nigeria, Mutiu Sunmonu, stated that

the new projects had demonstrated Shell’s long-term commitment to Nigeria by clearly signaling its intent for the strategic direction of Shell in Nigeria. Sunmonu also stated that sections of the TNP had been heavily impacted by sabotage and crude oil theft. According to him, the design of the TNPL includes improvements, which make the pipeline better protected against crude oil theft and sabotage. This, Sunmonu said, should help to reduce pollution

related to criminal activity, which was a key aspect of a 2011 United Nations Environment Programme (UNEP) report on Ogoniland. “These investments will help to secure energy supplies for domestic and international markets. The TNPL project demonstrates the tangible steps SPDC and its partners are taking to tackle the scourge of criminal activity pipeline sabotage and crude theft in the Niger Delta, which is the cause of so much environmental and economic damage in this region.

Group Managing Director of UAC of Nigeria Plc and Chairman, UACN Property Development Company Plc (UPDC) , Larry Ephraim Ettah (left); Lagos State Commisisoner of Works and Infrastructure, Dr. Kadiri Hamzat and the Managing Director of UPDC, Hakeem Ogunniran, at the commissioning of Metro Gardens Estate, built by the company in Lekki, in Lagos, at the weekend.

Cautious optimism trails Nigeria’s equity market’s rebound By Bukky Olajide ITH over N11.7 trillion capW italisation and All-share index of 36.464.39 as at Friday, the Nigerian equity market would have attained its former glory. Over N8 trillion was lost to the global meltdown four years ago but, the market has been able to achieve a remarkable recovery since then. Financial experts hailed this trend but worried that it has not translated to opportunity for employment. The market capitalization has so far gained 166.52 per cent as at May this year. The Securities and Exchange Commission (SEC) had earlier on introduced new regulations and rules to improve the market and corporate gover-

nance. From all time low of N4.48 trillion in March 30, 2009, the market closed at N12 trillion on Friday. The Chief Executive Officer of the Financial Markets Dealers Association, Wale Abe attributed the growth to the improvement in the regulatory environment, which appeals to foreign investors. According to him, confidence is returning to the Nigerian economy. “NSE has brought in a kind of international understanding of the market and has been reaching out to various stakeholders especially foreign investors and they have also introduced some new products and so the reform has continued between SEC and NSE.”

He added that inflow has risen from investors who have been showing interest in the fixed income market. The market has attracted foreign investors like J. P Morgan and Barclays. Also, he said, the local investors are gradually returning to the market, hoping that the anomalies like poor governance that escalated those problems and challenges are both being addressed by the regulators to prevent those things. Abe also noted that at the short end of the market, there has been macroeconomic stability, which has been occasioned by consistency in monetary policy, courtesy of CBN’s reforms of about three years ago. Abe explained that inflation

is under control. Interest rate may still be perceived as high but there has been less volatility. Also, exchange rate has remained within the N155 and N160 to the dollar, which means that the foreign exchange regime has been relatively stable making it easier for people who utilise foreign exchange to plan ahead. The CEO said further that the banking environment is relatively stable to the extent that harvesting the dividend of regulatory reforms. ‘’This is evident in their balance sheet and profitability. Even banks that were taken over by the CBN and then by AMCON later, and even Enterprise bank that was supposed to be sold to investors now has a cleaner balance sheet. CONTINUED ON PAGE 16

“Nigeria remains an important part of Shell’s portfolio, with clear growth potential, particularly in deepwater and onshore gas. This strategic review marks another step in re-focusing the SPDC portfolio,” Sunmonu commented. Meanwhile, the Group Managing Director of the NNPC, Andrew Yakubu stated at the weekend in Warri, Delta State, that the corporation, along with its flagship company, NPDC, was repositioning to ensure that its acquired assets remain productive to ultimately boast the revenue inflow to the Nigerian economy. “With the divestment of Shell, NPDC is the top and the only option for indigenous participation that will replace companies like SPDC and other companies that wanted to divest their equities. So NPDC therefore, has taken over this obligation of value addition as the flagship operator of the upstream business of NNPC. NPDC is the gateway of capacity development and capability development of the upstream activities in Nigeria”, Yakubu said.

He said the activities of the NNPC/NPDC in Warri has made NPDC the highest local producer of gas and this has gone along way in meeting the Federal Government’s aspiration in the area of power generation, stressing that with the new status, NPDC remains the biggest indigenous gas supplier in Africa. The NNPC helmsman noted that as a socially responsible corporation, the NNPC/NPDC would step up its activities in the area of providing social amenities such as classroom blocks, scholarship, health facilities, roads and water to communities where its operations are domiciled. He added that by partnering with the various tiers of government in providing basic amenities to oil bearing communities, a conducive environment that would guarantee smooth operations of the acquired assets would be provided. According to him, the assurances from the Warri communities indicate that the coming of NPDC would help in sustaining community development efforts in line

THE GUARDIAN, Monday, June 24, 2013

16 BUSINESS

Govt targets 60% rural telephone penetration, 7.5% ICT contribution to GDP By Adeyemi Adepetun even economic growth FOR across the six geo-political

zones of Nigeria, the Federal Government has targeted 60 per cent telephone penetration in the rural parts of the

country by 2018. Besides, government also expects Nigeria’s Information and

Communications Technology (ICT) sector to increase its contribution to the country’s Gross Domestic Product (GDP) from the present 5.6 per cent to 7.5 per cent by 2015. Revealing this plan, the Minister of Communications Technology, Mrs. Omobola Johnson noted that despite the huge telecommunications investment in the country in the last 12 years, put at about $25 billion, about 40 per cent of rural areas in Nigeria still lack access to mobile phone coverage. Johnson, who is also optimistic about her ministry’s target of achieving a five-fold increase in the number of government services delivered online, restated that service operators would need about N900 billion additional investments to bridge the

needed infrastructure gap in the country’s telecommunications access. She attributed the 40 per cent deficit in mobile coverage to inadequate infrastructure deployment to cater for the growing demand for telecoms services users. According to her, Nigeria currently has about 27, 000 base transceiver stations (BTS) to drive both voice and data services provision, which, she said, was grossly below what the country requires to have desired quality of service. “The number of BTS in Nigeria has increased exponentially since the inception of GSM providers from 116 in 2001` to about 21, 000 by 2010 and 26, 500 by the end of December, 2012. “So, from the current 27,000

BTS, significantly more BTS of about 33, 000, making a total of 60, 000 will be need to be deployed across the country to meet national target of a five-fold increase in broadband penetration by 2018.” The minister, whose ministry also sets a target of adding one million local jobs to the ICT industry, is optimistic of providing 50 per cent of the Nigerian populations with fast Internet access by 2015. According to her, Nigeria epitomizes diversity and ICTs can help to harness this diversity and achieve equitable development. “The ministry works with other Ministries, Departments and Agencies in using ICTs to deliver socioeconomic benefits, particularly in the areas of health, education and agriculture.”

Afreximbank’s asset base hits $3.7b, elects Ngama, others into board By Bola Olajuwon FRICAN Export-Import A Bank’s (Afreximbank) total asset base has leaped to $3.7 billion between 2003 and 2012, according to the financial institution’s president, Jean-Louis Ekra, while addressing its yearly General Meeting of Shareholders at the weekend. The revelation about the grow, which is about 612 per cent, came as the bank also elected Nigeria’s Minister of State for Finance, Dr. Yerima Lawan Ngama and others into its boards at the meeting which was held in Addis Ababa.

The bank’s president, in his report to the meeting, disclosed that “net income also soared by 251 per cent during the period to hit $65 million. Shareholders’ funds were also significantly up to end 2012 at of $612 million, largely from retained earnings and accretion to reserves. “Efficiency measures were also good. Return on assets and return on equity averaged the 2003-2012 period at four per cent and 10 per cent respectively; cost/Income ratio and net interest margins also averaged the period at levels of 22 per cent and three per cent while non-performing loan (NPL) ratio remained quite below the

industry level, averaging less than one per cent during the period.” Ekra attributed the financial performance to solid internal controls and risk management introduced as the bank grew. For 2012, he said that the bank’s total assets were up by 30 per cent, to reach $3.7 billion, when compared to 2011 while net income rose by 12 per cent and shareholders’ funds grew by 20 per cent. Return on Equity was 11.5 per cent and NPL ratio remained good at two per cent. The President announced that the bank’s board had recommended a dividend payment of $14.6 million.

Nigeria’s equity market’s rebound CONTUNUED FROM PAGE 15 The system as a whole is far more stable, the confidence has returned among the stakeholders. But there are challenges, said Abe, and this is in regard to the growth that we are seeing today looking at the indices, the growth has not translated and has not created opportunity for employment. ‘’The trend of the market has not created sustainable growth that can lead to development. Sanitizing of the banking industry was okay but it needed to be sustained to be able to lead to growth of the real sector and the economy. As far as this is concerned, fiscal authority should see to this. Nigeria is a free market economy where a number of things have to be subjected to the dictates of the market and the fiscal authorities. Policy emanating from fiscal authority has to be in tandem and should be consistent. No matter how a beautiful a policy is, if it cannot translate into growth. By and large, we are making progress, he said, but we are not where we should be, we need a stable financial environment. President of Independent Shareholders Association, Sir Sunny Nwosu told The Guardian that the huge figure is a dangerous one. ‘’I agree with the figure but it is dangerous the way it is running up too fast than usual, because once it falls, it will create problems.

THE GUARDIAN, Monday, June 24, 2013

BUSINESS

NASD pledges growth support for economy By Helen Oji ASD Plc has announced N that its operations would play a crucial role in the ability of the country to sustain growth rate of seven per cent per annum by offering more liquidity in investment instruments to the Nigerian capital market. The company, which recently signed a partnership agreement with the Central Securities Clearing System (CSCS) and six Nigeria banks to enhance a transparent and efficient Over-The-Counter (OTC) market said that with N500 million share capital base and 40 stockbrokers already registered with the body, the firm was ready to play a crucial role in the ability of the country to sustain real growth in major sectors of the economy. The Managing Director of company, Bola Ajomale, while addressing journalists over the weekend, explained that the operation of NASD was aimed at filling the gap in trading on financial instrument both locally and across the globe. He explained that its operations would commence on July 2, 2013, after an inauguration ceremony on the July 1st this year, adding that the firm was working closely with the Securities and Exchange Commission (SEC). He noted that measures ensured that all forms of infractions and abuses were properly checked. According to him, “we are going live in July 2nd and the excitement in the market is great because the NASD platform will complement the activities of the NSE and make the capital market more robust and attractive,” he said. Ajomale who disclosed that several companies had indicated interest to have their shares traded on the platform, added

Ogun hosts agric forum HE 40th National Council T on Agriculture and Rural Development will hold in Abeokuta, Ogun State, todayMonday, June 24. The theme of the five-day conference is “Farm to Fork: Developing Agricultural Value Chains to Create Wealth and Assure National Food Security.” The State Commissioner for Agriculture, Mrs. Ronke Sokefun in a statement said that it would afford stakeholders the opportunity to deliberate and compare notes on happenings in the agricultural sector. Representatives from the Federal Ministry of Agriculture and Rural Development, Permanent Secretaries and Directors of all Ministries of Agriculture and Rural Development at the Federal and State levels are expected to be at the conference, she said. Sokefun described the conference as the highest agricultural policy making and implementation body in Nigeria.

that shareholders of unlisted companies were very excited to trade their shares on the platform even as there would not be any circuit breakers on its share trade. According to him, NASD Limited had reached agreement with the Nigerian Stock Exchange (NSE) and Central Securities Clearing System Plc (CSCS) to use their trading facilities and clearing facilities respectively, FirstBank, Guaranty Trust Bank, United Bank for Africa, Stanbic IBTC, Access Bank and Sterling Bank settlement banks for the trading. He explained that the way the OTC market worked was for investors in Plcs who wanted to sell their shares to give them to a broker, who would list the

offer on the NASD platform and anyone buying would also contact a broker to put in a bid on his behalf. “Our vision is to be open to everybody across the world. We will have a platform that is user-friendly. We have reached the final arrangement with the NSE. We are going to be leasing part of their trading platform,” he said. This market is not a listing market. You just come, do your deal and move on. We are seeing great opportunities from major ICT firms, oil firms amongst others in capitalisation. These Plcs that you see all over the places are potentially tradable. The market will catch on very quickly. Though there would be a lot of sell pressure (share swaps). This will also herald right pricing.

Managing Director/Chief Executive Officer, Nigerian Sovereign Investment Authority (NSIA), Uche Orji (right) in a handshake with Chief Executive Officer for Africa, General Electric, Jay Ireland, following the signing of Memorandum of Understanding between NSIA and GE…recently.

18 BUSINESS

THE GUARDIAN, Monday, June 24, 2013

AU seeks investment to promote job creation in Africa From Collins Olayinka, who was in Geneva, Switzerland Chairperson of the THE African Union Commission,

Dr. Nkosazana Zuma, has called for more investment to promote job creation, achieve inclusive growth and eradicate poverty.

Zuma, who was speaking at the just-concluded International Labour Conference in Geneva, Switzerland, hinted that

African continent I projected to have 1.1 billion, which would be more than a third of global workforce. “We are determined to step up our efforts to promote job creation, work for the eradication of poverty, achieve growth and allow equitable distribution, particularly for women and the youth.” She added that though Africa had managed to resist well to internal and external shocks and was expected to grow by 4.8 per cent in 2013 and 5.3 per cent in 2014. Zuma was quick to add that the continent faced daunting challenges in her developmental quests. “By all estimates, our continent is a continent of young people, and it is getting younger. By 2025, it is estimated that the African youth will make up onequarter of the world’s population. By 2040, half of the world’s youth population will be African, the majority of which

will be women and girls. This means that in the next fifty years, approximately 1.1 billion of the global workforce will be African.” She, therefore, called for more investments in Africa agriculture, infrastructure, small and medium enterprises, sea transportation, energy, Information and Communications Technology, and tourism. Welcoming the AUC Chief, the ILO Director-General, Guy Ryder said: “Africa is rising. It is also encouraging to see African economies growing and African countries bringing down poverty levels and progressing on the decent work agenda. Yet, jobless growth is a challenge to the continent.” Ryder said that the ILO was committed to continue to work hand in hand with the African Union and its African social partners to make decent work for all a reality in the con-

tinent. Zuma stressed that investing in Africa’s youth is a big part of meeting the challenges facing the region. “It is imperative that we invest in our people’s health nutrition and education and have them acquire the skills that will enable them to become productive members of our society. To be properly employed, the youth must be employable.” The Chairperson of the AUC mentioned a joint initiative developed by the AU Commission, the African Development Bank, the UN Economic Commission for Africa and the ILO aimed at promoting youth employment in the continent. “If we properly invest in youth and women, they can become a great asset to drive Africa’s social, economic and cultural development, failing which they can be a serious liability,” she said.

Firm launches packaging innovation for products By Toyin Olasinde RAND Oak Limited GOL, a G marketer of alcoholic beverages in spirit sector has launched the ‘cool twista’ packages for its products in the country. Basically, the cool twista, is an innovative packaging, deploying a unique single, fill technology. Speaking at the launch in Lagos at the weekend, the Managing Director of Grand Oak, Akshay Kumar said: “This

revolutionary packaging that GOL will be enabling the innermost desire of the upwardly mobile customer to stand out and be different by adding a positive twist to their day.” According to him, “the cool twista range came in stylish and trendy presentation and currently available in Calypso coconut, Dark sailor Rum and Seaman’s Schnapps.This presentation therefore fits in perfectly into the lifestyle of the young and young at heart that

are status conscious and always on the go.” He noted that introduction of cool twista range was therefore an additional feather firsts. Kumar said, “presentation is an attestation to GOL’s continuous desire to meet and surpass the yearning of its teeming consumer for world-class products.” Kumar added that GOL invested in one of the world’s best class technology to give consumers a truly memorable and exciting drinking experience.

THE GUARDIAN, Monday, June 24, 2013

BUSINESS

Nigeria’s cocoa mid-crop output increases by 40 per cent OCOA output by farmers C in Nigeria, the world’s fourth-largest producer, may rise by as much as 40 per cent at the end of the light-crop season in August on favourable weather, an industry group said. The cocoa harvest is forecast to be as much as 35, 000 metric tons compared with 25, 000 tons last year, Robo Adhuze, spokesman for the Cocoa Association of Nigeria, said recently by phone in Akure. Early rains and sunshine are expected to boost production, he said. “The rain is stable, which helped to reduce fungi diseases,” Adhuze said. “Farmers have seen a good light crop with bean weight of 270 to 290 grams, compared with 220 grams last year.” Nigeria’s cocoa year is divided into two harvests. The main-crop season begins in October and ends in January,

By the end of August farmers may enter the main crop harvest and if the rains remain favourable, output for the main crop may reach 300,000 to 320,000 tons from 250,000 last year

while the light-crop season, the smaller of the two, usually begins in April and ends in June. The start and end dates of the two seasons may vary each year depending on the weather. The mid-crop may last longer this year because of the early rains, Adhuze said. “By the end of August farmers may enter the main crop harvest and if the rains remain favourable, output for the main crop may reach 300,000 to 320,000 tons from 250,000 last year,” he said. A warning by the nation’s meteorological agency for heavy rains in the second half of this year “has prompted farmers to equip their farms with chemicals against pests and diseases,” to manage the situation, he said. Many cocoa farms were submerged in water last year, leading to high humidity and destruction of crops by black pod, a fungal disease, Adhuze said. Nigeria ranks behind Ivory Coast, Ghana and Indonesia as the world’s largest cocoa producer, according to the London-based International Cocoa Organisation. Cocoa exports are the biggest foreign-currency earner after oil for Nigeria, Africa’s leading crude producer and most populous nation, according to figures published by the government.

UBA upgrades Ruby’s current account By Helen Oji bid to offer good services IforNtoacustomers, United Bank Africa Plc (UBA) has upgraded the features of its Ruby premium current account with specialised packages to cater for the needs of women in the society. The product, which according to the bank was designed to make multi task functions of women more convenient, as well as enable them save more money from the discounts accrued to the product did not attract any cost on transaction (COT). Speaking at the occasion in Lagos recently, the Deputy Managing Director of the

The product, which according to the bank was designed to make multi task functions of women more convenient, as well as enable them save more money from the discounts accrued to the product did not attract any cost on transaction (COT)

bank, Kennedy Uzoka explained that the product targets self employed professionals and business women as well as female business executives and the employed female professionals in the society. Uzoka explained that some of the features of the product included zero COT, graduate interest rate up to two per cent per annum on balances above N500, 000 minimum opening and operating balance of N500, 000, unlimited number of withdrawals among others. Special features of the product, according to the Head, Retail Banking, Ms. Olumide Osunyomi included, zero Cost on Transaction (COT) and highly attractive interest rates, customised debit cards and cheque book, unlimited number of withdrawals or deposits and the use as payroll account. Other benefits of Ruby, according to Osunyomi, were up to 15 per cent discount on services offered by Ruby partner outlets nationwide, free enrollment on all UBA e-banking products and services, access to consumer credit facilities, customised Ruby VISA Gold debit card and a personalised premium gift item.

Managing Director, Grand Oak Limited, Akshay Kumar (right); Commercial Director, Fatai Odesile, Human Resources Director, Wale Dosunmu and General Manager Marketing, Brajesh Kumar, during the unveiling of Cool Twista, in Lagos, on Friday.

THE GUARDIAN, Monday, June 24, 2013

Oil & GasWeekly Remi Aiyela, Editor-in-Chief

editor@NOGintelligence.com www.NOGintelligence.com

George Osahon Is New DPR Director HE Department of T Petroleum Resources (DPR) has a new Director. He is Mr George Osahon. Osahon, whose appointment was approved on Thursday by President GoodluckJonathanistotake over from Osten Olorunshola who was appointed to the position in 2011. Osahon, who is the current President, Nigerian Association of Petroleum Explorationists (NAPE) is to bring to the new position his over 30 years experience in the petroleum sector. Previous positions held by the new DPR director include Group General Manager, National Petroleum Investment Management Services (NAPIMS); Managing Director, Nigerian Petroleum Development Company (NPDC). George Osahon is the Managing Director of Geo Concept Technical Limited, a company devoted to assisting assets holders and service companies in the upstream sector of the industry. The company is involved in manpower supply, market trends and forecasts, HSE and community management and other advisory services. Mr Osahon obtained a BSc degree in geology from Ahmadu Bello University, Zaria in 1974 and an MSc degreeinPetroleumGeologyfromImperialCollege, London in 1981. He joined NNPC in 1976 and rose to the position of Chief Geologist before leaving for the private sector in 1992. Mr Osahon returned to NNPC in 2005 as the managing director of NPDC then Group General Manager (GGM) of NAPIMS and lastly GGM Nigerian Content before exiting the Corporation in July 2009. Industry insiders have welcomed the appointment. Biodun Adesanya, CEO Degeconek Nigeria Limited, a fellow of NAPE said of the appointment: "It is a welcome development. I am sure the new Director has the capacity to deliver on the mandate given to him, given his long years of experience in the petroleum sector." Former NAPE President Jide Ojo commended his appointment urging him to brace up for the new challenge. "The task before him I would like to say is enormous but I am sure he is up to the task. So I would like him to start by hitting the ground running so that he would be able to make an indelible mark in his tenure as the DPR director," he said.

UPSTREAM NEWS

instructing BNP Paribas to run the sale. BNP Paribas managed to secure a bid of $1.7 billion for ConocoPhillips from Oando, a winning bid that most analysts believe to be far in excess of the true worth of the ConocoPhillips assets. Chevron must be hoping that BNP Paribas will be able to do for them what they managed to do for ConocoPhillips. The recent exodus of international oil companies (IOCs) from the onshore and shallow water areas of the Niger Delta has opened up great opportunities for indigenous players in the absence of new marginal field rounds. Already, First Hydrocarbon is said to be interested, after whetting its appetite with the Shell OML 26, which it acquired barely a year ago. Niger Delta E&P Omerelu field is on OML 53 and the company must surely be in interested in putting in a bid to consolidate the gas reserves on the block. It had to pull out of the ConocoPhillips race to concentrate on finalising the OML 34 acquisition, as part of NDWestern. Oando's determined bid to up its game in the upstream sector could see it getting into the race. Certainly, its oversubscribed rights issue for the ConocoPhillips acquisition has given it real credibility. They are however pleading the Fifth Amendment on whether or not they will be bidding. OML 52 is a 246 square kilometre block, while OML 53 is a huge 1,554 sq kilometres and OML 55 is 722.40 sq kilometres. The original licences were granted in June 1967 and are due to expire in June 1927. Chevron operates and holds a 40 per cent interest in 13 concessions, predominantly in the onshore and near-offshore regions of the Niger Delta. The concessions cover approximately 2.2 million acres (8,900 sq km) and are operated under a joint-venture arrangement with the Nigerian National Petroleum Corporation (NNPC), which owns a 60 per cent interest.Thecompanyalsoholdsacreagepositionsinfour operated and six non-operated deep-water blocks, with working interests ranging from 18 per cent to 100 per cent. In 2012, net daily production averaged 238,000 barrels of crude oil, 165 million cubic feet of natural gas and 4,000 barrels of LPG.

Shell To Sell More Onshore Assets S International Oil Companies (IOCs) continue the scramble to exit the troubled Niger Delta's onshore and shallow water areas, Shell Petroleum Development Company (SPDC) has announced that it has begun a strategic review of the interests that it holds in selected onshore leases in the SPDC joint ventures. Thecompanyintendstoexitmoreonshore leases from the Easter part of the Niger Delta, subject to approvals from its partners and regulatory approvals. SPDC says it has been following a "strategy of selective divestment" of its onshore portfolio. The companysaysitis"concentratingtheoperatingfootprint into a smaller, more contiguous area," as well as, "supporting the Government's policy of encouraging investment by indigenous companies in the Nigerian oil and gas industry." Whilst their underlying reasons have nothing to doing with altruism and everything to do with the commercial reality of dealing with community issues and oil theft, the IOCs continued onshore divestment has provided significant opportunities to indigenous companies as they rush to pick up the discarded assets. Since 2010, SPDC has sold its interest in eight OMLs foratotalof$1.8billionbutManagingDirector,Mutiu Sunmonu stresses that: "Nigeria remains an importantpartofShell'sportfolio,withcleargrowthpotential, particularly in deepwater and onshore gas. This strategic review marks another step in re-focusing the SPDC portfolio." It seems that the IOCs are all singing from the same hymn sheet.

Total Begins Egina Field Development OTAL Upstream Nigeria Limited, the operator of T the OML 130 block and owner of a 24 per cent interest has obtained the necessary approvals from

Chevron to Sell Three More Oil Blocks

ARELY a week after confirming that it is disposing of its interest in Oil Mining Leases (OMLs) 83 and 85, Chevron Nigeria Limited, the Nigerian subsidiaryofU.S.ChevronCorporationhasrevealedthat it is divesting its interest in another three blocks. The company says that its decision to put up its 40% interest in OMLs 52, 53 and 55 in addition to 83 and 85 for sale is a move to prioritize its portfolio. According to the company, they are looking to offer these assets, which they do not consider of sufficient commercial interest to indigenous companies. They have stringently denied any suggestions that there is a policy move out of Nigeria. The General Manager,Policy,GovernmentandPublicAffairs,Deji Haastrup, says: "Our interests in oil and gas continue to grow with new projects such as the EGTL coming on stream soon." There is bound to be a huge bidding war for what is looking like a summer bonanza for Chevron, after

Nigerian National Petroleum Corporation (NNPC) to award the main EPC contracts for the development of the offshore Egina field. The deepwater field was discovered in 2003. It is located in water depths of around 1,600 meters, some 200 kilometers offshore Port Harcourt and 20 kilometers southwest of the Akpo field, which is also located on the same licence and has been in production since 2009. The field development plan will see 44 wells drilled, which will be connected to a 330 meter-long floating production, storage and offloading (FPSO) vessel with a storage capacity of 2.3 million barrels. The design of the FPSO includes capacity for future developments of nearby discoveries. First oil is expected end of 2017, with output expected to reach 200,000 barrels of oil per day at plateau. Total's joint venture partners in OML 130 are NNPC (Nigerian National Petroleum Corporation), SAPETRO (South Atlantic Petroleum) of Nigeria, CNOOC Limited of China and Petrobras of Brazil.

FID Taken On Trans Niger Pipeline Loop-line and Gbaran-Ubie Phase 2 HE Shell Petroleum Development Company of T Nigeria Ltd (SPDC), the operator of the Nigerian National Petroleum Corporation (NNPC)/SPDC joint venture (SPDC JV) announced today that final investment decisions (FIDs) have been taken for the Trans

Niger Pipeline loop-line (TNPL) and the Gbaran-Ubie Phase Two projects. The total capital investment for the two projects is around $3.9 billion. SPDC Managing Director, Mutiu Sunmonu said: "Today's announcements demonstrate our long term commitment to Nigeria by clearly signalling our intent for the strategic direction of Shell in Nigeria." The Trans Niger Pipeline (TNP) is important for Nigeria, pumping some 180,000 barrels per day of crude oil to the Bonny Export Terminal and is part of the gas liquids evacuation infrastructure, critical for continued domestic power generation (Afam VI power plant) and liquefied gas exports. Sections of the TNP have been heavily impacted by sabotage and crude oil theft. The design of the TNPL includes improvements which make the pipeline better protected against crude oil theft and sabotage, whichshouldhelptoreducepollutionrelatedtocriminal activity. The total capital investment for the TNPL project bundle is expected to be $1.5 billion. The Gbaran-Ubie Phase Two project consists of five gas supply and infrastructure projects which are critical for the continued gas supply to the Nigeria Liquefied Natural Gas (NLNG) plant and the GbaranUbie domestic power plant (IPP). The total investment for the Gbaran-Ubie Phase Two bundle is $2.4 billion. The expected peak production from these projects is 215 kboe per day (100%). Commenting on the projects, Mr Mutiu Sunmonu said: "These investments will help to secure energy supplies for domestic and international markets. The TNPL project demonstrates the tangible steps SPDC and its partners are taking to tackle the scourge of criminal activity - pipeline sabotage and crude theft in the Niger Delta, which is the cause of so much environmental and economic damage in this region."

Mart Resources Provides Update On Umugini Pipeline Construction

in association with

ment completed. Some 150,000 barrels of oil per day is deferred from the closure of TNP. SPDC Managing Director and Country Chair Shell Companies in Nigeria, Mutiu Sunmonu, explained: "Unknown persons continued to reconnect illegal bunkering hoses at Bodo West even as our pipeline teamwereremovingcrudetheftpoints.Itwastherefore not surprising that the fire occurred from the continuing illegal bunkering even as a previous crude oil theft point was being repaired by the team." "This is another sad reminder of the tragic consequences of crude oil theft," he added. According Mr Sunmonu, the incident resulted in practically no spill as the oil is burning off. Responding to concerns about the oil that is visible in the water, he explained that it is from an earlier oil spill, which he says was also as a result of oil theft. Theexplosionalsotriggeredafireonanearbybarge.

DOWNSTREAM NEWS

OPEC daily basket price stood at $103.78 a barrel Wednesday, 19 June 2013

HE price of OPEC basket of twelve crudes SX Venture Exchange listed Mart Resources has T released an update on the status of the construc- Tstood at $103.78 a barrel on Wednesday, tion work on its Umugini Pipeline and Trans Forcados compared with $103.10 the previous day, Export Pipeline. Mart is involved in a joint venture with Midwestern Oil and Gas (the operator) and Suntrust Oil Company in the Umusadege Oil Field located onshore in Delta State. According to the company, construction of the Umugini pipeline is progressing from the location near the Umusadege field. Clearing of the right of way, stringing, welding and field joint coating of the pipelinehasbeencompletedonapproximately17kilometers of the 51-kilometer pipeline. The pipeline has two segments. The first segment is from the Umusadege field south to the Ogini flow station on OML 26. This section is 22 kilometers in length and is where the 17 kilometers of pipeline construction has been completed. The second segment is from the Ogini flow station east to the Eriemu flow station. This section of the pipeline is being constructed along an existing right of way and will be twinning the existing pipeline currently operating between the Ogini flow station and the Eriemu flow station. The construction of the Umugini pipeline by the joint venture partners is in accordance with their plans to provide a second independent export pipeline for Umusadege field production. The Umugini pipeline's gross transportation capacity will be approximately 45,000 barrels per day and it will connect the Umusadege field to the Trans Forcados export pipeline. The Trans Forcados export pipeline will deliver crude oil from Umusadege field to the Forcados export terminal operated by Shell. Negotiations regarding the crude handling agreement with the export pipeline and terminal operators are nearing completion. The Umusadege field is a multiple-horizon hydrocarbon reservoir situated in the North Central area of the Niger Delta basin and it contains 13 known reservoirs. Commercial production commenced from 2008 and as at May 2011 the field had reached an average production of 10,525 barrels of oil per day. The partners had to shut down production from the field earlier this year in February after the export line operated by Nigerian Agip Oil Company was vandalised. Repairs were completed in April and production resumed soon afterwards and has since returned to normal levels. Crude from the Umusadege field is being purchased by Ente Nazionale Idrocaburi (ENI) under a Crude Sale and Purchase Agreement and exported through the Brass Terminal.

Shell Shuts Pipeline, Defers 150,000 Bpd Due To Crude Theft

according to OPEC Secretariat calculations.

REGULATORY NEWS

FEC Ratifies Port Facilities Project For Onne Oil and Gas Free Zone HASE 4B of Onne Oil and Gas Free Zone is to go P ahead following ratification of the President's "anticipatory approval." The project is for the concession and the development of the port complex at Onne for $2.7 billion exclusive of taxes by Deep Offshore Services Nigeria Limited. The Minister of Transport, Mr Idris Umar said that when completed, the new complex would help decongest the Lagos and Port Harcourt ports. "The project is expected to generate 4,000 job opportunities for both professionals during its execution and about 20,000 direct and indirect job opportunities when it is in full operation", he added. Completion is to take place within 6 years and the concession will be for a period of 25 years. Mr Umar explained that the Deep Offshore Services would amortise the cost from service boats and other port charges.

HEALTH, SAFETY & ENVIRONMENT NEWS Four Kidnapped By Pirates Off Offon Field members, 3 Indians and 1 Russian have FselOURcrew been kidnapped by armed pirates from their vesMDPL Continental One. The offshore fuel sup-

ply vessel was some 7 nautical miles off the Offon oil field when the boat which was flying a Singapore HELLPetroleum Development Company of Nigeria flag was boarded by 14 armed men who arrived in (SPDC) joint venture has shut the Trans Niger speedboats. There is no word yet on the wherePipeline (TNP) following an explosion and fire at a abouts of the kidnapped crew members. crude theft point on the 28" section of the facility at Bodo West in Ogoni land. This is a huge blow to Nigeria as the country's production continues to decline as a result of oil theft. SPDC had previously shut down the 28" TNP to remove crude theft connections, and has now closed the 24" TNP as a precautionary response to the fire. As a result, the entire TNP system comprising the 28" and 24" pipelines, have been shut-in. The company says it will reopen the 24" TNP when it is safe to do so, while the 28" TNP will remain shut-in until the fire has been extinguished, and investigation and damage assess-

THE GUARDIAN, Monday, June 24, 2013

Insurance Path to enhanced capacity for oil, gas underwriting By Joshua Nse NDIGENOUS underwritIously ing firms are working serito actualise the provisions of the local content law, which mandates local insurance and reinsurance companies to underwrite a minimum of 70 per cent of energy risks. The industry, determined to take full advantage of this law, with the support of National Insurance Commission (NAICOM), has taken measures to actualise this opportunity for the good of the industry and economy. For instance, a number of underwriting entities have

established oil and gas department headed by general manager, undertake training and retraining of staff locally and abroad to develop expertise and experience in the sector. As a result, some of the underwriting firms are currently handling as lead underwriters and brokers some dollar denominated accounts of insurance and related services in the oil and gas sector. To consolidate the efforts of the industry, the Nigerian Oil and Energy Insurance Pool (NOEIP) will soon take-off to help the industry tackle capacity gap challenges in the oil and gas

underwriting. Specifically, the committee set up for the take-off of the underwriting pool for insurance entities has commenced the registration of members with a minimum subscription of $250,000 per line, with 50 per cent paid-up in order to achieve a retained pool capacity of $20 million. Besides, the pool would be protected by an appropriate reinsurance arrangements to shore up and protect the pool’s capacity. As a result, Africa Reinsurance Corporation (Africa Re) has been appointed to manage the pool.

The Guardian gathered at the Nigerian Insurers Association (NIA) secretariat that the pool has come into being and the committee appointed for the project take-off are registering members’ subscription for the implementation of the pool to develop local financial and technical capacity for oil and energy underwriting in this country. A source told The Guardian: “A committee is working for the actualisation of the Nigerian Oil and Energy Pool and our members are subscribing to the arrangement. Also, Africa Re has been appointed to manage the underwriting

pool.” Both the National Insurance Commission (NAICOM) and operators have acknowledged the fact that it has become apparent the industry still have yawning capacity gap in the industry to meet the local content Act 2010 provisions which required local insurance and reinsurance firms to underwrite a minimum of 45 to 70 per cent of oil and gas businesses by 2010. This realisation prompted the inception of an industry committee initiated by NAICOM to explore the possibility of an oil and gas pool. The committee report said the objectives of the pool are to develop local financial capacity, achieve bulk purchase of reinsurance arrangement; develop technical capacity and improve local underwriting skills; provide technical underwriting information to member companies; curb capital flight by way of reinsurance premium overseas, and compete with international reinsurers and guarantee premium reduction. However, the Commissioner for Insurance, Fola Daniel, recently confirmed that the industry is making good progress in the implementation of the act as the retention capacity of the market

has increased. He said “capacity in oil and gas cannot be built overnight. We have a semblance of financial capacity, but we do not have human capacity. I can say to you that three years ago, the entire retention capacity of Nigeria was less than six per cent, now we are entering over 30 per cent. We are making very good progress. We have to be careful, if we take more than we can cough out, it will sink the market. Therefore, we really need to be sensible in the assumption of 70 per cent as prescribed the Nigerian Local Content Act. But we are making big strides, we are moving forward.” Also, the immediate past chairman of the NIA and Managing Director/CEO LASACO Assurance Plc, Olusola Ladipo-Ajayi, said: “We cannot achieve 70 per cent overnight, because we cannot legislate financial capacity into existence, the capacity is being built up gradually, our position has improved drastically from where we started. Our strength, knowledge base has improved tremendously. The insurance industry has benefited from all the policies, more and more insurance companies are subscribing and the experience has been very good and encouraging.”

Prestige Assurance expresses commitment to settle Dana claims Members of Real Estate Lawyers Association of Nigeria (RELAN: Deputy Administrator, Mr. Fola Jaiyesimi (left); P.R.O., Mr. Gbolahan Gbadamosi; Mr. Afolabi Kukoyi, Legal Adviser, Mr. Adekunle Oyesanya; Welfare Officer, Mrs. Banke Adeola; Mrs. Tosin Ajose; Vice President (Operations), Mr. Adekunle Omotola and the Administrator, Mr. Yomi Giwa during their 2013 conference held in Lags last week. PHOTO: EMMANUEL BADEJO

Stakeholders call for better quality service to customers HE Chairman, House of years and what must be has come to heal the psyche weaken the asset base of the T Representatives done to quicken the pace of of the insuring public in economy. Committee on Public development in the sec- Nigeria and engineering He said: “Insurance has a Petitions, Uzor Azubuike, has urged insurance companies and brokers to imbibe the culture of treating customers fairly in order to achieve the goals of the ongoing financial inclusion agenda of the country. Giving the advice in his keynote address at the official launching of Transparent Protection Limited, an insurance entity committed to promoting insurance penetration in the country, the lawmaker lamented that despite all efforts at reforms, the insurance sector has remained relatively stagnant with only 800,000 adult population having any form of insurance policy. He said: “This trend is unfortunate and indeed disturbing. The big question therefore should be: Why has the sector failed to put up an impressive performance after so many

tor?” he queried. Azubuike, who noted that though the sector has been plagued with challenges of improper legal framework, inadequate capital, limited human and technical capacities and low public confidence, said the sector seemed to have vigorously battled the rest of the challenges while nothing concrete had been done to address the major hurdles to insurance penetration, including lack of public awareness for insurance and low public confidence in the system. The lawmaker explained that despite the elimination of fringe players from the market and the current ability of existing insurers to settle genuine claims, most Nigerians were still discouraged from having any form of relationship with insurers due to the persistent crisis of confidence. According to him, the time

them towards a more cordial relationship with insurers and TPL could not have come at a more auspicious time than now, even as he urged industry stakeholders to partner with the NGO in wooing the insuring public towards embracing insurance services. Earlier in his remarks, the Chairman of the event and Chairman of Human Rights Commission, Prof. Chidi Odinkalu, noted that despite the potentials of the insurance industry in national development, Nigeria has failed to explore its opportunities for sustainable growth. According to him, rather than create values in areas other economies have used to leverage their competitiveness in the global market through the use of insurance and pension savings, Nigerians prefer to spend on cars and other resource-depleting items that have continued to

role in the development of the nation and giving assurance on protection in terms of some form of difficulty. An average Nigerian prefers something very tangible but insurance is not tangible but it is something that offers protection from life and death”. Transparent Protection Limited is established as a non-profit organisation to facilitate, and sustain a complementary platform for mass patronage of insurance products and settlement of all genuine claims, to increase the level of insurance awareness through consistent grassroots sensitisation, to help accelerate the pace of insurance development in Nigeria through collaboration with relevant agencies of government and other stakeholders and also to promote and influence policy making in the insurance sector through civil society advocacy.

• Commiserates with families of victims S the nation marks the A first anniversary of the Dana Air crash, Prestige Assurance Plc has expressed commitment to honouring its contract in the Dana Air incident. A press release by the management of the company said as responsible risk bearers in the country, we reiterate our preparedness to settle all genuine claims arising from the unfortunate incident and certified by the solicitors appointed by the lead reinsurers (overseas) as provided by the Dana aviation policy terms and condition. According to the company, “the management of Prestige Assurance Plc, the lead insurance underwriter to Dana Air, commiserates yet again with the families of victims of the crash that occurred in Lagos exactly a year ago. “The company seizes the opportunity of the one year anniversary of the accident to pray to God to continue to repose in the families of the deceased the fortitude to bear the loss of their loved ones. On behalf of other co-insurers, the company wishes to assure families of victims of

the air disaster that the insurance companies will pay compensations to all beneficiaries once their documentations are certified genuine and okay for payment by the competent authority”. Consequently, the release said, “the company solicits the cooperation and understanding of victims’ families to exercise restraint and settle their internal differences and come up with proper documentations to enable settlement of their claims without further delay.” The release said, “it is on record that over 101 deceased passengers’ families’ cheques/fund transfer certificates have been released to the solicitors for the initial liability payment of USD30,000.00. while about 24 of them have been able to provide the required Letters of Administration and their cheques for the balance of USD70,000.00 each, as final payment have also been handed over to the firm of solicitors to enable them hand over same to appointed administrators of the deceased passengers’ estate, after finalisation of the legal processes involved.

THE GUARDIAN, Monday, June 24, 2013

Published in association with

InvestmentWatch The Investor And His Financial Environment OSTInvestors are sometimes obsessed with profit and loss, bulls and bears and various M other technical and psychological aspects of investing. Having a good understanding of the technical and functional structure of the Nigerian Financial Market and its operations will help an individual investor take more informed investment decisions and make the most of the investment opportunities available. Our understanding of how exactly the financial markets in Nigeria operates is limited due to lack of awareness. In this article, we will try to understand the technical and functional structure of Financial Markets, the types of markets, operators, Regulators and investment opportunities available in these markets so as to help the individual investor take more informed decisions in achieving their investment goals and also take your knowledge of financial markets to the next level. FINANCIAL MARKET. The financial markets interact with other markets and have an influence on issues such as wealth, inflation and stability in a country. The financial markets have their own characteristics within which they operate. It is important to understand these characteristics. In Nigeria like most economies, the financial market is the hub of all productive activity in the economy, as it performs the vital roles of financial intermediation in the mobilization and allocation of financial resources through the financial markets (money and capital) by financial institutions (banks and nonbanks) and by the use of financial instruments (savings, securities and loans) from surplus units to deficit units of the economy. The efficiency and effectiveness of financial intermediation in any economy depends critically on the level of development of the country’s financial system. Generally, the stage of development and the efficiency of the financial market varies among countries and changes over time in tandem with the development of the real economy. The more developed and sophisticated financial system tends to be associated with the matured economies; while under developed financial system is a feature of developing economies. As a process, the financial system adjusts to changes in the real economy just as the economy responds to the development in the financial sector. The Nigeria financial system is made up of the Money market and the Capital market. COMPREHENDING HOW THE MONEY MARKET WORKS. Financial markets all over the world play significant roles in the development and growth of the economy particularly the intermediation between areas where there is excess supply of money and areas where there is shortage supply in the economy. The money market is a market for short-term financial assets having a maturity period less than one year. It is the segment of the financial market where financial

instruments with high liquidity and very short maturities are traded. Functions of Money Market One of the primary functions of the money market is to provide focal point for Central Bank intervention to manage liquidity in the system (i.e. the amount of money in circulation) and general levels of interest rates in the economy. The Central Bank being the main regulator in the money market environment aims at ensuring that liquidity and short term interest rates are consistent with the monetary policy objectives of the country. Benefits of Money Market Money markets help to facilitate the raising of short-term funds from the surplus sectors to the deficit sectors of the economy. Its facilitates the efficient transfer of short-term funds between holders and borrowers of cash assets. ➢ For the lender/investor, the money market provides investment opportunities (vehicle) for a lender to secure a higher return (interest) on their investment than a regular bank saving account will attract. ➢ For the borrower, it enables rapid and relatively inexpensive acquisition of cash to cover short-term liabilities. ➢ For government, it can be used to raise the money needed to pay off maturing debt and also to finance their operating and development expenditure ➢ For CBN it is used as an instrument for managing liquidity through the Open Market Operations (OMO). Investment Opportunities in the Money Market As an investor, several investment opportunities abounds in the money market space. These investment opportunities are not explored due to lack of awareness of their existence and operations. Many persons may leave their excess monies in a bank account for a short term period (say 3, 6, 9 or even 12 months) without generating any tangible return on their deposit. Monies like these with a short time horizon are best suitable for the money market space where they will attract better returns and guaranteed principal. Investment in money market is done through money market instruments. These market instruments meet short term needs of the borrowers and provide investment avenues to the lenders with good returns at low risk. Common Money Market Instruments are as follows: 1. Certificate of Deposit:This is a short-term, high yielding, money market investment product more like a bank term deposit account. It is a promissory note issued by a bank in form of a certificate entitling the bearer to receive interest. The certificate bears the maturity date, the fixed rate of interest and the value. It can be issued in any denomination. They are stamped and transferred by endorsement. Its term generally ranges from three months to five years and restricts the holders to withdraw funds on demand. However, on payment of certain penalty the money can be withdrawn on demand. The returns on certificate of deposits

are higher than T-Bills because it assumes higher level of risk. Benefits & features ➢ Payment of interest can be either upfront or backend. ➢ Investment cannot be liquidated before maturity. ➢ Tenors range from one month to one year. ➢ Certificate can be used as collateral for loans. 2. Nigeria Treasury Bills (T-Bills): Treasury Bills are one of the safest money market instruments, because they are guaranteed debt instruments of the Federal Government. They are marketable debt instruments issued by the Federal Government through the Central Bank of Nigeria (CBN) with a zero risk returns which are more attractive than bank savings/deposit account. When you invest in Treasury bills, you are lending your money to the Government in exchange for interest payments. In recent times, the Nigerian Treasury Bills has witnessed tremendous growth in yields far higher in comparison to what the regular bank savings/deposit may offer. T-Bills have a strong credit rating due to its minimal probability of default on its local currency debt obligations by government. They are among the safest possible investments to hold, and the principal value of their investments is preserved if held to maturity. In Nigeria, Treasury bills are issued by the Central bank of Nigeria via two major platforms; the Primary market auction (PMA) and the Open market operation (OMO). Primary Market auction are carried out bi-monthly at pre scheduled dates. The apex bank issues TBills at this end in durations of 91 days, 182 days and 364 days. On the other hand OMO are carried out on the spur of the moment based on the liquidity within the financial system at a point in time. Smart investors will take position to maximise their short term investment objectives based on the Issues of the T-Bills. Benefits & features ➢ Tax free income: interest received is not subject to withholding tax ➢ Free from default risk: repayment is guaranteed at maturity ➢ It can be used as collateral for borrowing to raise funds ➢ Tenors of ranges from 91, 182 and 364 days available through the primary market. ➢ Easily re-discounted to provide cash ➢ Interest is payable upfront Some reasons why government may issue Tbills include; ➢ To raise the money needed to pay off maturing debt ➢ To finance their operating and development expenditure ➢ Provide a liquid investment alternative with little or no risk of default for individual and institutional investors; 3. Call Deposit: This is a flexible instrument that allows you save and earn interest while having access to your funds should you be in urgent

need of cash. Idle funds can be placed on overnight call, 7-day call or 14-day call Benefits & features ➢ Easily accessible within 24hours notice without penalty ➢ It is subject to 10% withholding tax 4. Commercial Papers: Commercial paper is a low-cost alternative to bank loans. It is a short term unsecured promissory note issued by corporates and financial institutions at a discounted value on face value. They are usually issued with fixed maturity between one to 270 days and for financing of accounts receivables, inventories and meeting short term liabilities. They yield higher returns as compared to T-Bills as they are less secure in comparison to these bills; however chances of default are almost negligible but they are not zero risk instruments. Commercial paper being an instrument not backed by any collateral, only firms with high quality credit ratings will find buyers easily without offering any substantial discounts. They are issued by corporates to impart flexibility in raising working capital resources at market determined rates. Institution/Operators in the Money Market The major participants and operators to note in the money market include; (i) Discount Houses: Discount houses provide discounting and rediscounting facilities in government short-term securities. (ii) Deposit Money Bank (DMBs): Commercial Banks: These are the major players in the money market and have been in existence in Nigeria since 1892. Merchant Banks: Merchant banks have continued to play their role of providing medium-tolong term financing by engaging in activities such as equipment leasing, loan syndicating, debt factoring and project financing. Regulators in the Money Market. ➢ The Central Bank of Nigeria (CBN). ➢ The Federal Ministry of Finance RECENT EVENTS IN THE MONEY MARKET SPACE ➢ There has been a shift of focus of retail investors from savings account to Nigeria Treasury Bills (NTBs) in the last 2yrs. ➢ Large flow of Foreign Portfolio invstors (FPIs) in Nigeria money market space ➢ Creation of more money mutual funds ➢ Resultant reduction of yields due to increase in price. Price and yield has an inverse relationship. When there is an increase in price of asset there will be a corresponding compression in yield. Vice-versa. ➢ Increased market activities and intermittent reversal of trend at certain levels (market correction). Prospect for investors seeking to invest in asset classes with short term investment horizon remain optimistic. Given some of the recent events in the money market space, opportunities abound in the money market space for risk adverse investors who seek to diversify or balance their investment portfolio and get better returns than a regular bank savings return in a short time for their investments.

Your decision to call a professional investment adviser may just be what you need to give you a broad and comprehensive feedback on how to maximize investment opportunities in the Nigeria money market space. Please join us next week Monday for a continuation of this series. Kindly let us know if you have found this article useful. Please contact us at: enquiries@investment-one.com

THE GUARDIAN, Monday, June 24, 2013

Stockwatch In association with Lead Capital

Stock Market Report for the week Friday, 14th June to Thursday 20th June, 2013 N the week, the total vol- ANNOUNCEMENT AJOR equity markets around the I43.93% ume depreciated by M globe moved upwards as their URING the period under review, twenty seven and value traded various indexes gained marginal (27) stocks recorded price appreciation comD depreciated by 72.05%. A points. In our universe of sample equipared to forty (40) that depreciated in the previty markets; the NASDAQ, S & P 500 and Dow Jones gained points by 1.26%, 1.02% and 0.78% respectively at the end of last week. In Europe, The German Dax, FTSE 100 and France CAC 40 all gained points by 0.66%, 0.78% and 1.20% respectively. In the Asia/Pacific region, Nikkei 225 gained points by 4.57% while Hangseng and BSE Sensex lost points by 2.41% and 0.57% respectively. In Brazil, the Bovespa lost point by 2.62% while Russia’s RTS INDEX lost points by 0.68%. On the local setting, NSE ASI closed at 36,963.77 recording 1.18% depreciation at the end of the week’s trading.

turnover of 1.94 billion units of shares valued at N21.35 billion was recorded, in contrast to a turnover of 3.46 billion units of shares worth N76.39 billion that was recorded in the previous week. Volume this week was driven by activities in the shares of TRANSCORP, FBNH, ZENITHBANK, GUARANTY, FIDELITYBK, UBA, UNITYBANK, ACCESS, WAPIC and FCMB.

ous week, PORTPAINT was first on the top gainers chart to close with 30.56%, followed by FIDSON with 15.20%, CUTIX with 9.71%, AIRSERVICE with 6.12%, TOTAL with 5.78% and PRESCO with 5.71%. Other gainers in the top ten categories were MANSARD with 5.50%, EVANSMED with 4.43%, LEARNAFRICA with 3.95% and INTBREW with 3.85%. On the flip side, fifty two (52) stocks depreciated in price last week compared to forty three (43) that depreciated a week ago. NEIMETH led on the price losers’ table with 31.25%, followed by MAYBAKER by 30.82%, DNMEYER by 17.50%, ROYALEX by 15.38%, NAHCO by 14.03%, IKEJAHOTEL by 13.33%, FLOURMILL by 10.00%, NPFMCRFBK by 10.00%, AGLEVENT by 9.88% and TRANSEXPR by 9.71%.

THE GUARDIAN, Monday, June 24, 2013

46 STOCKWATCH

Lead Capital Stock Valuation

COMPANY’S RESULT

CONTINUE ON PAGE 51

THE GUARDIAN, Monday, June 24, 2013

Homes & Property Ogun, FMBN seal deal on N2b housing loan facility Mortgage Finance Stories by Chinedum Uwaegbulam Assistant Housing & Environment Editor EELING from the stain of negative reports in which the National Housing Fund (NHF) scheme has been painted by the public as a stumbling block to actualising home ownership, the Federal Mortgage Bank of Nigeria (FMBN) has moved to assuage the plights of subscribers in Ogun State, by granting a lifeline for real estate development in the state. A whopping N2billion lifeline is coming under the real estate development loan facility and could be drawn down by estate developers nominated by the state government provided such developers meet the lending conditions of the FMBN. Statistics show that as at March 2013, N100billion has been disbursed under the NHF scheme to 73,676 contributors. A breakdown of the figure showed that about N40 billion was disbursed by FMBN to Primary Mortgage Banks (PMBs) for the financing of housing for 22,246 beneficiaries while about N60billion was granted as Estate Development Loan to some private developers, state owned housing corporations and the Federal Housing Authority for the construction of 36,348 housing units across the country. NHF scheme is a mandatory savings scheme for Nigerian workers from which they can access mortgage loans at low interest rates to build, buy or renovate residential houses in any part of the country.

In search for affordable houses for it’s citizenry, the Ogun state government has concluded plans to obtain N2 billion housing development loan from FMBN. The State House of Assembly has already given its nod to obtain the loan, which will boost housing construction activities and employment generation in the state. The Guardian gathered that Ogun is the third state offered the loan package by FMBN. Enugu and Oyo States were also offered N2 billion each for the building of lowincome estates in their respective states. In Oyo, FMBN has registered 60,659 NHF contributors that made a total of N536 million contributions to the scheme. The bank has refunded N31.5 million to the state contributors who have retired from service. While Prior to the loan offer, the FMBN had approved a cumulative N5.2 billion to various estate developers in Enugu State for construction of 2,027 housing units in the state. Currently the Bank is processing additional N3.7 billion estate development loan applications for development of 760 housing units in the state. The FMBN has mobilized a cumulative National Housing Fund (NHF) collection of N888 million from workers in the state. Meanwhile, Ogun State House of Assembly last week unanimously passed a resolution giving approval to the request to obtain a N2billion real estate development loan facility and the issuance of an Irrevocable Standing Payment Order (ISPO) by the Accountant General of the Federal Government of Nigeria in favour of FMBN.

Ogun Government declared that the loan would strictly be used for affordable housing projects in the three senatorial districts. The chairman, House Committee on Finance and Appropriation, Olusola Bankole, at the passage of the bill observed that there was an urgent need to upgrade various housing estates spread across the length and breadth of the state, which would be catered for when the loan is eventually obtained. Reacting to this development, the state Commissioner for Housing, Mr. Daniel Adejobi said it is necessary for the state government to join hands with the federal Government in reducing housing deficits in the country. According to him, the fund which would be accessed through Gateway Saving and Loans would strictly be for the development of housing estate for workers, and the general public across the state. He stated that all workers and citizens who are contributors to the NHF will be beneficiaries to the proposed housing projects, “we already have drawings according to the specifications of the Federal Mortgage Bank of which the state housing Cooperation is serving as the developer”. The proposed Nestoil Headquarters...one of the green building projects by Julius Berger

Julius Berger pioneers green buildings, new technology Projects ASKING in the euphoria B of it’s current feat in the construction industry, premier building and civil engineering contractors, Messrs Julius Berger is breaking new grounds and piloting modern technology in fresh contracts, especially in green buildings and micro tunnel system in the country. This new technical expertise is demonstrated in three building projects, which are being developed and constructed to meet the Leadership in Energy and Environmental Design

JBN is maintaining leadership in the construction sector, with a 24 per cent increase in profitability announced last week, which was due to the improvements in the efficient use of resources and streamlining of processes. Fresh incursions are also being made in green building certification (LEEDS) system for green building certification. Essentially, the projects are a baby care capacity expansion facility for Procter and Gamble in Agbara, Ogun State, construction of a mixed use high -rise office and residential tower for Nestoil in Lagos, and office for new engineering subsidiary, P r i m e T e c h . The Nestoil awarded the

Court dismisses Lagos revocation order on Layeni Court Page 48

contract for the building of its new ultra modern office headquarters to Julius Berger Nigeria at a whopping cost of N24 billion and a completion time frame of 25 months. The office building is to be located on Akin Adesola Street, Victoria Island, Lagos. LEED certification on the Nestoil Tower is expected to increase the attractiveness especially for international

tenants as the LEED certification brings the sustainability and awareness of responsibility for the present but also for the future generations to Nigeria. The approximately 75 meters high building offers our client a gross floor area of 32.300m2. The tower is based on a combined pile raft foundation bored piles with a maximum depth of 54 meters and a foundation

With Metro Gardens, luxury has a new address Page 49

slab with a thickness of 1.8 meters. The 15 floors provide nine storey of parking, 19 apartments on five levels and 14 office floors including one executive office floor all topped by a helipad and a building crown, which turns the high-rise building to a real landmark in the Victoria Island skyline. Meanwhile, the Managing Director, JBN, Mr. Wolfgang Goetsch told shareholders at the 43rd annual general meeting held in Abuja that two large scale drainage projects have been constructed utilizing closed

pipe-jacking technology, an efficient and environmentally friendly micro tunneling method pioneered by JBN. He also disclosed that under the period under review, the company completed work on the Admiralty Alexander Link Bridge in Lagos. “The bridge, built utilizing impressive pylon and cable stayed construction, not only provides much needed relief to existing traffic routes, but also stands as a landmark of modern Nigeria,” he said.

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RELAN seeks mortgage reform, property law legislation Page 51

48 HOMES & PROPERTY

THE GUARDIAN, Monday, June 24, 2013

Court dismisses Lagos revocation order on Layeni Court Litigation By Emmanuel Badejo EPRIEVE came recently the R way of Oluwole Layeni family of Lagos State, when a state High Court with them and dismissed a revocation order by the state government over their property located on 75/77 Broad Street, in the Lagos Island Local Government area, popularly known as Layeni Court. The judgment delivered by Justice (Mrs.) A. M. Nicol-Clay, was in a suit brought by Mr. Sami Akanni Layeni and orders for themselves and on behalf of the Badamosi, Imoru, Salu, Ogboye, Lawani and Oredilu branches against the Governor of Lagos State and the AtoorneyGeneral, following the state’s government decision, revoking the title on the property. Several months after the Bank of Industry (BOI) building collapsed, Governor Raji Fashola had announced the revocation of some properties within the vicinity on the premise that the distressed structure could not be demolished while those properties were inhabited. The pronouncement led to series of engagement with the government for a reversal. According to the family secretary, Mr. Tajudeen Layeni, Governor Fashola should not have taken such an action without proper procedure, adding that the property was a place of historic importance in the state. The property is among the 5277,489 square meters of land along the Broad Street, a commercial centre of Lagos, which Certificate of Occupancy was revoked, following a fire disaster that affected the Bank of Industry (BOI) building on

Layeni Court, 75/77 Broad Street, Lagos, recently

The court found that the purported acquisition of the Lagos Island property popularly known as Layeni Court located within the vicinity of the collapsed Bank of Industry (BOI) complex, was improper and as such that claim cannot stand March 20, 2006. But determined that it was wrongful for the state to do so, the family instituted a legal action to redress and reclaim their proprietary right. According to the suit, the claimants sought for three prayers including: N100,000 damages for trespass committed by the defendants on the parcel of land, lying and being at 75-77 Broad Street/18-20,

Market Street, Lagos Island, Lagos State which is more particularly shown and delineated edged red in Survey Plan No. LU/LA 2255/84 dated 25/9/84 drawn by L. Nwaozo, registered Surveyor. Injunction restraining the defendants, their servant, agents, and/or privies from entering, constructing any structure or, or in any manner, however, disturbing the

claimants’ right over the parcel of land; Injunction restraining the defendants, their servants, agents and/or privies from alienating or putting any person in possession of the land. Expectedly, the state made some denials through its statement of defence and the court went on to hear the argument of both parties. In his evidence, Badamosi, said

the property originally belonged to their progenitor, late Oluwole Layeni and that they inherited the property and have been in full, open and adverse possession f the court exercising acts of ownership including letting portions of the same to tenant and living thereon at all material times. Further, the witness said soon after the demolition of BOI building, Lagos State evacuated them form the building with a proviso that they would return after the demolition of the distressed BOI complex was demolished. Upon their return, he said they were turned back as the state was claiming the

ownership of the property, asserting that action amounted to trespass. According to Messrs Adeniji Ablade Fatai, a lawyer with the state’s Ministry of Justice, the collapsed BOI building affected several building in the area among which was Layeni Court and as a result it became inhabitable for the occupants and constituted environmental nuisance to those within and outside that vicinity. He stated that the state has the duty to protect lives and property of its citizens and non citizens and the removal of the debris of the collapsed building and its eventual demolition became a serious issue for the state and of federal concern, that the apparent lack of actin by the owners to the collapsed building led to the eventual acquisition of the property by the state in July 2007, adding that the state’s urban renewal law empowered the state to acquire for overriding public interest of which renewal purposes, public facilities and services were included. While delivering her judgment, Nicol-Clay said although the state was given enough to file its final address, it never did so. Also the defendant’s witness did not make himself available for cross-examination, adding that no reasonable court would accord the evidence given by a recalcitrant witness as gospel truth. The Judge said in the instance case, the defendants did not plead the particulars of the revocation notice, adding that the proper order, which the court should make in the circumstance, was to dismiss such claim. Having weighed all evidence and argument, the Judge held the prayers of the claimants.

THE GUARDIAN, Monday, June 24, 2013

Prime Estates With Metro Gardens, luxury has a new address Projects By Emmanuel Badejo RONTLINE property development and Management Company, UACN Property Development Company (UPDC) plc, last week commissioned a newly completed and tastefully designed housing estate that has the capacity to provide shelter for 55 families. The estate is located on a prime land behind Lagoon School, Lekki Phase 1, Lagos State. Formerly known as Disney Court under another developer, Messrs Disney Court Limited, the estate was renamed Metro Gardens, when UPDC bought it over and injected fresh funds. Metro Gardens, which seats on a land area of about 18,000 square metres, showcases an exciting architectural masterpiece that offers convenience, taste, comfort and scenic beauty. Designed on three-floors, the mixed residential development has 18 units of four bedroom terrace houses, 16 units of three bedroom terrace houses, three units of five bedroom detached houses, six units of four bedroom detached houses, eight units of pent flats, two units of two bedroom apartments and two units of studio apartments. Each unit features master’s bathroom with Jacuzzi, fitted kitchen and security entry and

exit doors. Others are smoke detector and alarm system, DSTV and Internet connection, as well as air conditioning in all rooms. Among the attraction is an upscale estate facilities, security of lives and property, enhanced with CCTV device, potable water from treated borehole, sewage treatment plant, and adequate electricity supply, boosted by dedicated transformer and standby generators of appropriate capacities, all complement Metro Gardens. In addition, there is a playground for children, and there is recourse to greenery in parks and green areas. Recreational facilities include an indoor swimming pool and gymnasium. There is also ample parking space for residents and visitors alike. At the event to unveil the estate, Group Managing Director, UAC Plc and Chairman, UPDC, Mr. Larry Ephraim Ettah went memory lane on the state of the project when his company bought it over. “When we acquired this estate from the previous developer in 2011, construction work at Disney Court as the estate was then called had stopped for several months. In line with our mission of adding value to lives and businesses, we took over the project; re-evaluated it and finally completed it in May 2013 eighteen months after con-

The Metro Gardens, last week struction work re-commenced, adding that UPDC was pleased to present the new estate equipped with facilities that have been designed to make the life of the estate residents comfortable and stress-free. According to Ettah, the Lagos State Building Control Agency

(LSBCA) has certified estate habitable. “We are also proud to say that the Lagos State Building Control Agency (LSBCA) has duly certified this estate habitable as evidenced by the Certificate of Fitness For Fitness For Habitation…Indeed, our com-

PHOTO: EMMANUEL BADEJO pany is the first recipient of the delivering the estate. He certificate under the new dis- added that the state would continue create encouraging pensation.” On his part, Lagos State framework and environment Commissioner for Works and that would continuously grow Infrastructure, Dr. Kadri the economy, urging other Hamzat, said the drive of any developers to emulate UPDC economy is to allow private by investing more in the real sector to play major role and estate sector. that is what UPDC has done in

THE GUARDIAN, Monday, June 24, 2013

HOMES&PROPERTY 51

RELAN seeks mortgage reform, property law legislation Mortgage Finance By Emmanuel Badejo O improve homeownership for all categories of Nigerians, the nation needs to evolve a robust mortgage system and review its land tenor policy, stakeholders within and outside the real estate sector have said. They said this is imperative, if Nigeria’s housing sector will grow to meeting the ever-increasing demands of decent homes and accommodation. Lawyers, developers, financial experts both in the public and private sectors, met last week at the Metropolitan Club, Kofo Abayomi, Victoria Island, Lagos, during the 2013 national summit of Real Estate Lawyers Association of Nigeria (RELAN), where they spoke on the way forward. Pressed for as change in the mortgage sector, RELAN had chosen “Foreclosure Law and Processes in Relation to Mortgage Security in Nigeria” as its theme for this year’s conference. Foreclosure is a specific legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan. Formally, a mortgage lender (mortgagee), or other lien holder, obtains a termination of a mortgage borrower (mortgagor)‘s

Members of Real Estate Lawyers Association of Nigeria (RELAN) Deputy Administrator, Mr. Fola Jaiyesimi (left); P.R.O., Mr. Gbolahan Gbadamosi; Mr. Afolabi Kukoyi, Legal Adviser, Mr. Adekunle Oyesanya; Welfare Officer, Mrs. Banke Adeola; Mrs. Tosin Ajose; Vice President (Operations), Mr. Adekunle Omotola and the Administrator, Mr. Yomi Giwa during their 2013 conference held in PHOTO: EMMANUEL BADEJO Lagos last week.

Irrespective of several programmes in place to solve housing needs of Nigerians, all in the end will achieve little except a sustainable mortgage system is available, as it is clear that the government alone cannot provide shelter for its people equitable right of redemption, either by court order or by operation of law (after following a specific statutory procedure). The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel

of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage“ or “deed of trust.” Commonly, the violation of the mortgage is a default in payment of a promissory

note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that, “the lender has foreclosed its mortgage or lien.” If the promissory

note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgment. But as noted by all that contributed at the event, foreclosure processes are not easy in Nigeria, hence, investments into the real estate is on regular basis being hampered. According to RELAN President, Prof. Charles Udenze Ilegbune, today, Nigeria is at crossroads f its

legislations governing mortgage transactions and foreclosure, asking: “did we have the right legislations in this regard in the light of the Land Use Act and the Lagos State Property and Mortgage Law? Have our recovery modes had the intended effects? How can we secure lasting and sustainable growth in the real estate sector while restoring the confidence of investors?”

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THE GUARDIAN, Monday, June 24, 2013

HOMES & PROPERTY 59

THE GUARDIAN, Monday, June 24, 2013

Minister laments neglect of Abuja satellite towns Urban Development From Terhemba Daka, Abuja MID the emergence of A shanties and slums in Federal Capital Territory Administration (FCTA), the authorities have raised alarm over the high concentration of government institutions and infrastructure in the Abuja city centre at the expense of a corresponding development of the Satellite towns in the territory. The administration has also disclosed that revenue

accruing into the coffers of the FCT Administration has been increased to between 30 and 40 percent by the introduction of e-payment for its services. Minister of State for the FCT, Olajumoke Akinjide who lamented the neglect of the FCT Area Councils and Satellite towns in the past 35 years by previous administrations, said the scenario has led to the current congestion with its corresponding human and vehicular traffic in the Metropolis leading to urbanization, resulting in gridlocks espe-

cially during peak periods in the nation’s capital. Akinjide expressed concern over the development when she received Leadership of the Trade Union Congress (TUC) FCT Council, and lamented that previous administrations of the territory had expended over 80 percent of government allocations towards infrastructural development of the city centre. According to her, the neglected the Area Councils and satellite towns, harbors a larger chunk of the population of the territory.

Plateau plans ground rent collection Housing From Isa Abdulsalami Ahovi, Jos ETERMINED to increase its internally generated revenue, the Plateau State Government has concluded plans to introduce charges on its landed property and the collection exercise is billed to take off next month, the Commissioner of Lands and Survey, Mr. Yilji has revealed. Gomwalk said that the measure is part of the government’s effort to improve its internally generated revenue (IGR). As a prelude to the take off, the Commissioner said that his ministry has begun the enumeration of all landed properties to facilitate easy collection of such rents from landowners across the state. According to him, “Every piece of land that you have is in care of the government as the government is the ultimate land owner but we lease it out to an individual or corporate organisation for a certain period of time, as the word lease implies. There should be a sort of numeration given to the government as a tax or in our own case, ground rent. We are out to collect those rents which over the years have not been collected.” Gomwalk said that the ongoing enumeration exercise would enable the government to ascertain the number of landowners and structures as contained in Certificates of Occupancy (C of Os), calling on the public particularly the land owners to give their maximum cooperation to the ministry for the smooth take off of the enumeration and rent collection exercise. He said, “Hitherto, we were not collecting those ground rents because we did not know who and who had what and how many houses do we have in the Greater Jos Master Plan? We will have a rough estimate; do you have a title document or not? If you have a title document, then you pay because you are now leasing it from the government; so that is what we are doing now to improve our IGR.’’ He explained that Governor Jonah Jang’s desire is to generate good money that will enable him carry out his developmental dreams for the people of the state, adding that the ground rents will go a long way towards assisting him to fulfill such dreams. For him, “Lands and Survey Ministry has woken up to its responsibility and the public also should wake up to their responsibility for their own safety, for their own land document. They should come

and just embrace the exercise and we shall go together; the end result will be beneficial.’’ He said that mobile court has

been established for the purpose of prosecuting defaulters and warned against defaulting.

Akinjide disclosed that the FCT Administration would henceforth commence full development of the Six Area Councils and their satellite towns in the territory in order to facilitate the provision of infrastructure in the hinterland. She stressed that the current administration was a transformation government and added that transformation means a permanent irreversible change. “It has to be radical for it to be transformative in a way that is quite different,” she stressed. The Minister said the administration was set to intervene in the areas of funding and provisions from the National Priority Budget in order to facilitate even development in the Satellite towns in the territory. “We are waiting for the

statutory budget meant for the FCT. When the budget comes out in the next few weeks from the National Assembly, you will begin to see radical development in the Area Councils and satellite towns as you see in the city centre. You are going to be seeing a lot of interventions in the satellite towns and a reinvigoration of the Satellites Towns Development Agency (STDA). “We are in the 36 year of the establishment of the federal capital territory, and in the first 35 years 80 percent of the money was spent on the Federal Capital City. But in the next 35 years the situation will be reversed. “Money has to go into the satellite towns because if we do not develop the satellite towns the city itself will fail. All that money sunk into the city will be wasted through

the degradation that will take place. Because if people don’t have infrastructure they are going to cluster around the areas where there is infrastructure and the infrastructure will not be able to bear the burden put on it leading to collapse. We are already seeing it with the emergence of shanties and slums as well as street hawkers and other forms of social activities,” she said. Earlier in his address, Chairman of TUC FCT Council, Comrade Aliyu Musa, had expressed the labour union’s support for the new transport policy saying that it was for the overall interest of residents and visitors to the federal capital city. Musa commended the FCT Administration for being proactive in the management of the transport system in the nation’s capital.

THE GUARDIAN, Monday, June 24, 2013

HOMES&PROPERTY

Lagos names new contractors for abandoned projects Roads Stories by Tunde Alao OUR months after terminatFcontracts, ing some roads and building the Lagos Government has selected new contractors to complete the projects. The projects are the construction of Adisa Ajibulu –Murtala Mohammed International Airport Road, with a bridge linking Oshodi - Isolo; rehabilitation and reconstruction of Obafemi Awolowo Road, Ikorodu and Epe Magistrate Court. Governor Babatunde Fashola revoked the contracts during his visit to the project sites, due to the slow pace of construction work and the inability of the contractors to meet their contractual obligations. The 1,500 meters Adisa AjibuluMMA International Airport was awarded in July 2008, with project duration to last 12 months, while contract for the rehabilitation of Awolowo Road Phase II in Ikorodu Local Government Area was awarded in November 2010. The Phase II starts from Ota-Ona junction and ends at Olowu Street before Eruwen Stream, in the suburb, with a length of 2.10kilomtres and proposed width of 15 meters. It would be recalled that out of six magistrate court projects spread across the six Old Division of Lagos in Epe, Ikeja,

Ikorodu, Lagos Island and Mainland and Badagry, four have already been completed. Ikorodu project is nearing completion while Epe complex was abandoned. The newly appointed contractors are: Messrs Costeng Nigeria Limited, who now handle Adisa Ajibulu Road; Messrs Arab Contractor Nigeria Limited - Obafemi Awolowo Road, Ikorodu and Messrs Conswealth -Epe Magistrate Court. The new contractors have also been mobilized to the site to ensure early completion of the affected projects Meanwhile, the government has kick-started palliative works designed to bring immediate relief to residents of Ago Palace Way, hit by flooding recently. The Commissioner for Works and Infrastructure, Dr. Kadri Obafemi Hamzat, who flagged off the construction activities explained that the palliative will not only ensure the ease flow of the rain waters, but will also see the road level raised. He said the asphalt road failed as a result of the growth in population and the consequent pressure resulting from development along the corridor. He explained that the original design was to use the sides as drains, which the property developers have blocked. Hamzat said the palliative works will gulped about N90million and it would take about eight weeks to complete. He added that contract

Chairman, Nigeria Society of Engineers (NSE), Apapa Branch, Ibrahim Aledu (left), Past President, Ibrahim Inuwa, NSE Deputy President, Isaac Olorunfemi and guest speaker, Alimesuya Rabiu, an engineer at the 2013 Business Luncheon on the theme: The Nigerian Engineer and National Development in Lagos, PHOTO: AYODELE ADENIRAN last week. for the fourth phase of the Ago Palace Way to cover the length from Century Hotel to the end of the road has been awarded. While restating the commitment of the State Government to delivering a first class road on the axis, the Commissioner noted that challenges were expected and the Ministry is positioned to address it. Hamzat, stated that the construction of Adisa Ajibulu Road with Bridge, Oshodi in OshodiIsolo Local Government was

conceived amidst others, in line with the vision of this administration to solve the perennial flooding problem experienced at some sections along the road that were impassable. “It will equally facilitate movement of goods and services in the area. In addition it would decongest the ever-busy Muritala Mohammed Airport Road by serving as a very effective bypass for Mafoluku and environs bound vehicles.

Engineers induct new fellows, urge use of local materials Professional Practice HE Nigerian Academy of T Engineering (NAE) last week inducted some members as fellows of the elite group, urging stakeholders in the oil sector to tap local resources to boost operations. Specifically, they said Nigeria’s potentials in the production of broad range of polymer products were sufficient for local needs and importation. This formed the thrust of discussion at the Annual Lecture, Life Achievement Awards and Induction of New Fellows of the (NAC), held at the Main Auditorium, University of Lagos (UNILAG). The event, witnessed by eminent Nigerians that included the former Head of State, General Muhammadu Buhari, former Interim Government President, Chief Ernest Shonekan, retired Lt. General Oladipupo Diya and some senators, captains of industry, professional bodies, among others, provided the engineers the opportunity that was capable of making their recommendations to get the attention of the policy makers and industry watchers. Among the new inductees to the Fellow of the Academy, included the Former Governor of Abia State and the Chairman, All Nigerian Peoples Party (ANPP), Dr. Ogbnnaya Onu, Professor Michael O. Faborode, Jani Abdulganiyu Ibrahim, Professor Danladi Slim Matawal, Professor Lawson O Adekoya, Yusuf O. Sagaya, Professor Joseph Olorunfemi Ojo, Professor Adetokunbo O. Denloye, Dr. Kisito O. Okpere and Professor Funso A. Falade. Three members of the Academy, regarded as “elders in the profession and academ-

Nigeria should discontinue importation of polymer products and take advantage of the large volume of inexpensive oil, gas and refined products available locally ic circle”, received Life Achievement Award. They were Professor Gabriel A. Makanjuola, Guy Eboe Otobo and Professor Sikiru Adebayo Sanni. Given the Lecture Theme, titled: “Engineering Opportunities and Challenges Related To Producing a Broad Range of Polymer Products from Oil and Gas”, Professor Emeritus, Wills Harmon Ray, of the Department of Chemical and Biological Engineering, University of Wisconsin, Madison, USA, who was absent due to what the President of the Academy, Professor Ayodele Francis, attributed to illness, but had the lecture delivered on his behalf by Professor Babatunde Ogunaike, noted that Nigeria’s Oil and Gas sector is capable of producing sufficient polymer products of varied ranges. According to him, Nigeria could successful achieve polymer production process that allow expansion of processing variety and larger volume of the products for both domestic and export, especially, to all the West African region. “There are well regarded and successful polymer production process available for license that could be installed in Nigeria to take advantage of the large volume of inexpensive oil, gas and refined products available locally”, he said, adding that it is high time Nigeria discontinue the importation of the products. Responding to questions posed by the participants on

the possible health hazards inherent in using polymer

products, especially, for domestic utensils and products such as table water, soft drinks containers and other related items, Ogunaike noted that there is the possibility of such health related hazards.

THE GUARDIAN, Monday, June 24, 2013

HOMES&PROPERTY

Anambra revokes 689 plots, warns land speculators Land Matters From Uzoma Nzeagwu, Awka FOR failing to develop their property in the past one year, Anambra authorities have revoked about 689 plots in different layouts in the state.

Another 960 prospective homeowners have made fresh applications for allocation of plots of lands in the last one-year. The State’s Commissioner for Lands, Survey and Town Planning, Mr. Okoli-Akirika Chibunna who spoke in Awka last week listed the none performing plots

revoked in some layouts as Ikenga extension (101), Agu Awka (180), Abuja Estate Phase one (29), Akpaka layout (256) and Iyi –Agu (123). The commissioner expressed concern that various layouts in the state have not been developed, as he warned owners that could

not make haste to develop their plots risk losing it through revocation. Besides, he cautioned land speculators to be wary of practicing their trade with ministry, as it does not involve in land business outside the ministry, saying that allocations are done

only on merit. According to him, those who applied for allocation and got allotment but did not get plots would be considered in the next phase of allocation, adding that government has started developing infrastructure in the estates to give them new look.

On those lodging complaints with the office, Okoli-Akirika insisted that it is no longer business as usual, insisting that anybody seeking for redress over any land issue should pay the sum of N5, 000 with the ministry while the case would be registered before any action could be taken.

Real estate lawyers urge reform in foreclosure law CONTINUED FROM PAGE 51 Ilegbune, a Senior Advocate of Nigeria (SAN), said that present global challenges in the 21st century call for a new understanding of growth and innovation in the nation’s property law legislations and ways of securing and effectively recovering mortgaged property. “The continuous growth in the world’s population and the global economy as well as the increasing demand for mortgages as a form of secured lending will continue to place a huge demand on real estate transaction. The insufficiency of houses as against the demand for them creates a market for us as lawyers and stakeholders in this market.” Minster of Lands, Housing and Urban Development, Ms. Amal Pepple, said there was no doubt that one of the foremost challenges of the Nigeria economy was that of developing a sustainable housing and mortgage finance system, which benefits a dynamic compet-

Julius Berger bags Nestoil’s green building project CONTINUED FROM PAGE 47 JBN Chairman, Dr. Mohammed Nurudeen Iman noted that performance in 2012 increased by 17.7 per cent from 2011. “ This commendable achievement is attributed to a number of factors, including the handover of large scale projects such as the admiralty Alexander Link Bridge in Lagos, the Escravos gas to liquids plant as well as the completion of a major segment of the Lagos-Badagry expressway and several projects in Akwa Ibom State. “Additionally, a higher turnover in building projects and the award of new contracts such as the Uyo Ring Road, Phase 1, Uyo stadium, Edo Cement plant and BUA sugar refinery enhanced 2012’s performance. “While our projects portfolio in 2012 remained robust, delayed payments, particularly of public clients, presented hurdles which required modifications to performance planning, and at times, operational adjustments. A proliferation of new administrative bodies, which introduce laws and regulations, coupled with over lapping old bodies, has created a complicated bureaucratic environment. Navigating this complex setting and readjusting processes to ensure compli-

itive and equitable economic and financial system such as ours. Pepple, who was represented by Director, Legal Service in her ministry, Njokama Ifeyinwa Rita, in other countries, housing usually is not much of a problem, adding it is indeed, the right of citizens. “Unlike in Nigeria, the situation is that most of the houses are secure through mortgage facilities due to the intermediation nature of the financial system, long term loans are extended to the citizens by banks with which they pay for the houses. The loans are long terms in nature, thereby shielding the citizen from hardship of repaying. Where the citizen defaults in payment, the financial

institution regardless of the rationale behind such default goes ahead to foreclose the property, thus depriving the home owner of his property.” In view of the challenges associated with land ownership system in Nigeria, the Minister said the Federal Government has proposed amendments to the provisions of the Land Use Act which among others, are considered as inimical to efficient and effective mortgage transactions, urging all stakeholders to come up with useful contributions towards improving on the foreclosure law. Attorney General and Minister of Justice, Mr. Mohammed Bello Adoke, said the ease and clarity in the process of enforcing mortgages particularly the

foreclosure process are also significant catalyst for achieving the nation’s housing targets, saying it is important to investors that they are able t take possession of their collateral and recover their loans as quickly as possible. According to him, represented by Mrs. Victoria Mbu, “The current complicated procedures in our law courts and the unduly slow pace of proceedings cast a dim pall on the chances of achieving growth in these areas. Several options have

been canvassed such as specialized property courts and the demutualization of mortgages, to facilitate non-judicial foreclosure. In my view, there is also need to focus on manpower and technology deficits in land registries and cognate institutions to complement any reform in the legal framework.” Delta State Governor, Prof. Amos Utuama, who was represented by Dr. Muiz Banire, said although good mortgage system has the potential to impact positively on

the nation’s economy, however, regretted that what is obtainable in the sector is still far from the ideal, adding if the mortgage system works as it should be, it is capable of reducing corruption in the polity. Banire, a former commissioner for environment, Lagos State, said there was need to look into the recovery of mortgaged assets, saying the nation must evolve a system that will aid quick recovery, as that is one of the ways to grow the mortgage finance sector.

THE GUARDIAN, Monday, June 24, 2013

TheEnvironment Alliance for sustainable consumption underway Enforcement From Lillian Chukwu, Abuja IVING the looming local threats from hazardous wastes and sub-standard products, the National Environmental Standards Regulations Enforcement Agency (NESREA) has unfolded a new initiative that will check illegal importation and transboundary movement of substandard products and hazardous substances. The new initiative known as Alliance on Sustainable Consumption and Production (ASCP) is backed by Standards Organisation of Nigeria (SON), Consumer Protection Council, Nigeria Customs Service, National Automotive Council and the Small and Medium Enterprise Development

South African delegation at the just concluded Bonn Climate Summit in Germany

Nations make ‘concrete progress’ towards global climate action Bonn Climate Summit By Chinedum Uwaegbulam, Assistant Housing & Environment Editor ELEGATES to the United Nations Climate Change conference in Bonn, Germany, made concrete progress towards a new universal climate change agreement in 2015 and on creating solutions to increase existing global action. The United Nations Framework Convention on Climate Change (UNFCCC)’s decision-making arm on all matters concerning the implementation of the Convention, Subsidiary Body on Implementation (SBI) had been earlier suspended without governments formally adopting an agenda for the body’s work at this two-week session. This was after Russia, along with Ukraine and Belarus, blocked the SBI, which works on both substantive and administrative implementation issues, from moving forward on its agenda. But the governments looked in greater detail at how the rules of the new agreement,

While the outcomes of these negotiations are good news, observers say a lot more work will be needed to get solid results from COP 19 in Warsaw in November, especially adopting an ambitious legally binding agreement in 2015, making substantive and tangible progress on raising pre-2020 ambition which is to be decided by 2015 and come into effect in 2020, have to be designed to encourage countries to do their best to act on climate change in the longer term. This includes views on how transparency and accountability should be reflected in the 2015 agreement, including a possible process to asses and adjust national efforts to reduce emissions and adapt to climate change. They also examined specific means to increase finance, technology and capacity building for developing countries, and how this can link to the 2015 agreement. In this context, they heard a series of reports from new institutions, including the Green Climate Fund, on how the infrastructure is starting to take shape and deliver results. An immediate need recognized by all governments is how climate finance can shift investment patterns faster toward low car-

bon. In Bonn, governments examined key elements for such a shift, including: reducing investment risk for investors, public private partnerships, a long-term legally binding agreement and strong domestic institutions in recipient countries. The parties also had a serious debate on how to mobilize the Montreal Protocol in coordination with the Convention to reduce HFC use further. The debate underlines the large opportunities to leverage greater action through linking existing international efforts. “This has been an important meeting because governments are moving faster now from the stage of exploring options to designing and implementing solutions. Governments are demonstrating increasingly broad support for this energy transformation.

“It is achievable with existing financial and technology resources, encourages best efforts by all countries without shifting the leadership responsibility of developed countries to respond to climate change, and mobilizes and speeds action at all levels – international, domestic and private sector,” said UNFCCC Executive Secretary, Christiana Figueres. Climate Action Network International (Cani) also welcomed a “new, positive dynamic” emerging from the talks, particularly in terms of equity and fairness, but urged world leaders to “ensure that the 2015 climate plan is robust enough to save the planet”. Mohamed Adow, of Christian Aid, said “previous silence on the issue of fairness had threatened to derail progress in the negotiations, but by beginning to openly tackle the problem now, confidence has been boosted among developing countries. ”

Nigerite rewards finalists in Green Lagos competition WED 2013 By Tunde Alao ROM a total of 584 entries, three students have emerged as finalists in the second edition of Green Lagos, an initiative of Nigerite Limited to inculcate on the youths, the reality of climate change, negative consequences and its remediation. The 2013 edition had 62 schools participating in Junior Secondary School and 16 in Senior Secondary School categories respectively, with drama and essay entries from hundreds of students at the Senior and Junior schools. Winners at different categories received monetary, computers and other educational materials

awards.. The first, second and third positions were rewarded with N25,000, a laptop and a book while the second and third students got N20,000 plus a book and N15,000 plus a book respectively. The event that took place at the Muson Centre, Marina, had in attendance students from both private and public schools. The discussants at the event included the Managing Director, Lagos Waste Management Authority (LAWMA), Mr. Ola Oresanya and Marketing Director, Nigerite Limited, Mr. Toyin Gbede, both who spoke on the event’s theme: “Think, Eat, Saveto reduce your food print, waste and or loss”, the theme for World Environment Day (WED) celebration.

Oresanya noted that the current administration has made it a matter of policy to incorporate students and children into some of its developmental programmes, especially, when it has to do with the environment. Gbede, an architect said 95 per cent of waste from the company are recyclable, while 85 per cent of the company’s products, ranging from roofing to ceiling that are offered to the market from the low end to the high end, are also recyclable. He said all these are measures to ensure the sustainability of the environment, stressing that “all our roofing sheets, all the metals that we use sare recyclable materials. We are very careful about and any product that does not have the

tendency to be recycled we leave it out.” According to him, the company is also careful about noise level. “You don’t hear the sound of our generators in our premises or of our machines. What we have done is to locate them in a secluded area and we cordoned them off so that when you come in you will never hear the noise from machines or the generators.” Gbede said the company is, in addition to that, using gas to power its production line. “We have synchronised our diesel and we are removing diesel generators and replacing them with gas generators so that gradually we will reduce the emission of the green house gases.”

Agency. Among the goals of the ASCP is the enforcement of quality standards in products and services, monitor compliance and enforce relevant laws, standards and regulations. ASCP will also address consumers’ complaints and build their confidence and promote waste management of wastes including reuse, reduce and recycle as well as carry out public education and awareness campaigns. Speaking at the inauguration of the ASCP in Abuja, DirectorGeneral, NESREA, Dr. Ngeri Benebo said the formed a synergy with other key government organisations on sustainable consumption and production programmes will boost environmental and ecosystems regulation.

Groups plan summit on Africa’s green growth The Environment By Tosin Fodeke S part of the ways to conA tribute to the green initiative, which is still emerging, a Non-Governmental Organisation (NGO), Green Afrique Network in conjunction with Nigerian Conservation Foundation (NCF) and Rock Foundation is organising a summit aimed at addressing issues affecting the green growth in the continent. The summit is coming in honour of World Environment Day and it is to also to develop a platform for the promotion of clear and impactful projects throughout Africa. The environmentalists will also seek to explore Africa’s natural resources for sustainable economic development; adoption of best practices for human hygiene and waste management; identify and protect endangered species of African Flora and Fauna and to develop a platform for the promotion of clear and impactful projects throughout Africa. The conference, which is billed to take place June 28, in Lagos, will feature a Green Lecture among others. Some of the speakers expected at the summit include: Minister of

Foreign Affairs, Ambassador Gbenga Ashiru; Publisher and Chairman, Guardian Newspapers Limited, Mrs. Maiden Alex-Ibru; Nigeria’s foremost green activists, Dr. Newton Jibunoh; Mrs. Remi Tinubu, a senator and Professor Wole Soyinka among others. According to the convener, “The earth has suffered unprecedented abuse. Sometimes, this abuse goes undocumented and some of the effects may remain unknown for generations to come. Humans have exploited the land for its mineral resources, dumped toxic waste in the seas and oceans, and hunted some of the fauna and flora to near or complete extinction. They have not cared enough to consider that Mother Earth is dying and in dire need of advocates. Like a maiden in distress, the land is in search of true heroes”. “The expectation is that all participants will begin to carry a torch for the environment and protect it dearly, they will understand creative ways to manage trash; earn additional ‘green’ income from tree planting and agriculture; and green efficiency even in the home, will ring out loud and proud.

Govt to map flood prone communities Climate Change From Nkechi Onyedika, Abuja N a renewed effort to reduce the huge loss witnessed in some parts of the country last year due to flood, the Office of the Surveyor General of the Federation (OSGOF) has commenced the development of flood maps to identify communities that are likely to be flooded across the country. The map will also enable the government to identify and relocate flood prone communities. Already, the office is kickstarting the project within the corridors of Benue - Niger Delta and Birnin Kebbi-Benue. The Surveyor General of the Federation (SGOF) Prof. Peter Nwilo who disclosed this while briefing journalists in Abuja, said that the information gath-

ered would be made available to the Nigerian Emergency Management Agency (NEMA) for a flood risk analysis. Nwilo who blamed the high level of flood experienced last year in most parts of the country on climate change, opening of Lagdo dam in Cameroon and the indiscriminate building of houses on flood plains. He appealed to states and local governments to help educate their people on the need to desist from erecting buildings on flood plains as well as avoid blocking of sewage with refuse. He noted that the OSOGF since 2005 embarked on the modification and update of old maps and has been working with the National Boundaries Commission in the demarcation of the nation’s boundaries.

THE GUARDIAN, Monday, June 24, 2013

Weekly Lead Equity Ratings

COMPANY’S RESULT

CONTINUE FROM PAGE 30

STOCKWATCH 67

THE GUARDIAN, Monday, June 24, 2013

68 STOCKWATCH

The desirability of annuities (1) INTRODUCTION ONCEPTUALLY speaking, annuities can be thought of as a reverse form of life insurance. Life insurance pays the insured upon death, while annuities pay annuitants while they are still living. The academic definition of an annuity is a promise by one party to make a series of payments of a specific value to another for a given period of time, or until a certain event occurs (such as the death of the person receiving the payments). As an actual investment, annuities are retirement vehicles by nature. It can be defined as "a financial product sold by financial institutions that are designed to accept and grow funds from an individual and then pay out a stream of payments to the individual at a later point in time." PURPOSE OF ANNUITIES Annuities were originally created by life insurance companies to insure against superannuation, or the risk of outliving one's income stream. Modern annuity products can also help to pay for such things as disability and long-term care, and they can also serve as tax shelters for wealthy individuals whose incomes are too high to allow them to save money in other retirement vehicles such as Individual Retirement Accounts (IRAs). HISTORY OF ANNUITIES Although annuities have only existed in their present form for a few decades, the idea of paying out a stream of income to an individual or family dates clear back to the Roman Empire. The Latin word "annua" meant annual stipends and during the reign of the emperors the word signified a contract that made annual payments. Individuals would make a single large payment into the annua and then receive an annual payment each year until death, or for a specified period of time. The Roman speculator and jurist Gnaeus Domitius Annius Ulpianis is cited as one of the earliest dealers of these annuities, and he is also credited with creating the very first actuarial life table. Roman soldiers were paid annuities as a form of compensation for military service. During the Middle Ages, annuities were used by feudal lords and kings to help cover the heavy costs of their constant wars and conflicts with each other. At this time, annuities were offered in the form of a tontine, or a large pool of cash from which payments were made to investors. As investors eventually died off, their payments would cease and be redistributed to the remaining investors, with the last investor finally receiving the entire pool. This provided investors the incentive of not only receiving payments, but also the chance to "win" the entire pool if they could outlive their peers. European countries continued to offer annuity arrangements in later centuries to fund wars, provide for royal families and for other purposes. They were popular investments among the wealthy at that time, due mainly to the security they offered, which most other types of investments did not provide. Up until this point, annuities cost the same for any investor, regardless of their age or gender. However, issuers of these instruments began to see that their annuitants generally had longer life expectancies than the public at large and started to adjust their pricing structures accordingly. Annuities came to America in 1759 in the form of a retirement pool for church pastors in Pennsylvania. These annuities were funded by contributions from both church leaders and their congregations, and provided a lifetime stream of income for both ministers and their families. They also became the forerunners of modern widow and orphan benefits. Benjamin Franklin left the cities of Boston and Philadelphia each an annuity in his will; incredibly, the Boston annuity continued to pay out until the early 1990s, when the city finally decided to stop receiving payments and take a lump-sum distribution of the remaining balance. But the concept of annuities was slow to catch on with the general public in the United States because the majority of the population at that time felt that they could rely on their extended families to support them in their old age. Instead, annuities were used chiefly by attorneys and executors of estates who had to employ a secure means of providing for beneficiaries as specified in the will and testament of their deceased clients. Annuities did not become commercially available to individuals until 1812, when a Pennsylvania life insurance company began marketing ready-made contracts to the public. During the Civil War, the Union government used annuities to provide an alternate form of compensation to soldiers instead of land. President Lincoln supported this plan as a means of helping injured and disabled soldiers and their families, but annuity premiums only accounted for 1.5% of all life insurance premiums collected between 1866 and 1920. Annuity growth began to slowly increase during the early 20th century as the percentage of multigenerational households in America declined. The stock market crash of 1929 marked the beginning of a period of tremendous growth for these vehicles as the investing public sought safe havens for their hard-earned cash. The first variable annuity was unveiled in 1952, and many new features, riders and benefits have been incorporated into both fixed and variable contracts ever since. Indexed annuities first made their appearance in the late 1980s and early 1990s, and these products have grown more diverse and sophisticated as well. In 2011, sales of annuities were estimated to exceed $200 billion annually. Despite their original conceptual simplicity, modern annuities are complex products that have also been among the most misunderstood, misused and abused products in the financial marketplace, and they have had more than their fair share of negative publicity from the media. In the next section we will explore the mechanics of these contracts more thoroughly, along with their basic benefits and the parties involved. THE PHASES OF AN ANNUITY CONTRACT The life of a modern annuity contract consists of three separate phases: accumulation, annuitization and payout. However, not all of these phases apply to all types of annuities. The specifics of each phase are broken down as follows: Accumulation Phase – This is always the first phase in the life of any annuity contract. It is the period of growth for the annuity that begins after the initial payment is made. This phase will last until

payments are scheduled to begin from the contract. In some cases, the investor continues to make regular additional payments into the annuity during this phase. Annuitization Phase– Annuitization is really more of a definitive event rather than a phase; it represents the point when the insurance company must begin making payments back to the investor. In the case of a variable annuity, annuitization is also the process in which all accumulation units purchased in the contract are converted into annuity units for payout. Payout Phase – The final phase of an annuity in which payments are made to the investor. This phase can be very brief or quite long, depending upon various factors including payout amount and the total accrued during the accumulation phase. It should be noted that annuities will continue to grow even after the accumulation phase is over. Interest or market gains will continue to accumulate inside the contract during all three phases, regardless of whether the contract is fixed, indexed or variable. For example, an investor who makes an initial N100,000 deposit into a fixed annuity contract may continue to invest another N1,000 per month for the next 10 years. The contract will pay the investor a guaranteed rate on the initial deposit and all subsequent additions, both during the accumulation phase and after the contract annuitizes. The balance of funds remaining inside the contract will also continue to earn the guaranteed rate until payout is complete and the contract is depleted. However, not all annuities have an accumulation phase. METHODS OF PREMIUM PAYMENT As mentioned in the previous section, there is more than one way to fund an annuity contract. Most annuity carriers offer products that can be funded in one or all of the following ways: Single Premium – A single, lump-sum payment that fully funds the contract. Fixed Premium – A systematic investment program that requires the contract owner to make equal payments of a specific dollar amount at regular intervals over a given period of time until the contract is fully funded. Flexible Premium – An arrangement that largely permits owners to make premium payments whenever and however they choose, above a certain minimum amount. Owners of flexible premium contracts may still opt to make a systematic investment, but they are free to amend the terms of this program at any time, provided the contract has or will exceed the required minimum investment amount. They are also free to add other money at any time as well. METHODS OF PAYOUT There are several different options that the owner/annuitant can choose from when deciding on the method of income payment. These are: Straight Life –The contract pays out to the annuitant as long as he or she lives, regardless of whether the contract value is exhausted or not. If the contract is worth $50,000 and pays out $1,000 a month, then the annuitant can expect to receive that amount every month for life, even if he or she ends up collecting several times the contract value over the remainder of his or her life. This example demonstrates the purpose that annuities were created for: once the contract has annuitized, then the amount of the contract becomes, for all practical purposes, irrelevant to the annuitant, and he or she can simply count on receiving a set monthly or yearly amount for life, no matter what. If there is any principal remaining upon the annuitant’s death, however, it goes back to the insurance company that issued the contract. Usually, a straight life payout will be higher than any other payout option, but it also has the highest risk of forfeiture upon death. Life Income with Refund (Or Cash Refund Annuity) - As the name implies, the annuitant receives income for life, but if there is any principal remaining upon death, it goes to the beneficiary instead of back to the insurance company. This removal of forfeiture found in straight-life payout options results in a lower initial actuarial payout to the annuitant. Life Income With Period Certain –The annuitant receives income for life but is guaranteed a certain number of payments regardless of whether the annuitant lives that long. For example, if the period certain is twenty years, and the annuitant dies after thirteen years, the beneficiary will receive the last seven years of payments. Again, the initial payout is less than with a straight life contract. Joint Life –This arrangement is just like straight life, except that there are two annuitants, and payments will only continue as long as both of them are living. Upon the death of either, payments will cease. (This option is very seldom selected, for obvious reasons.) Joint Survivor Life (Or Joint And Survivor Annuity) - This is a much

more popular option as payments will continue as long as both annuitants are living. Only upon the death of the second annuitant does the contract pass to the beneficiary. Period Certain –This is probably the simplest of all options. Payments simply continue for a certain period of time, then stop, at which point the contract value is exhausted. Joint Survivor Life With Period Certain – A combination of the Joint Life and Joint Survivor Life options. Payments continue until both annuitants are dead, at which time the beneficiary will receive the remainder of the contract if the death of the second annuitant transpired within the period certain. Fixed Amount – Also a very simple method, the annuitant simply receives a fixed payment until the contract value is exhausted, regardless of when that will be. If the annuitant dies before the contract is depleted, the beneficiary receives the remainder. Interest Income Only – The annuitant receives all or part of the interest or gain from the contract without depleting the principal. Technically, this isn’t an annuity option, but merely a systematic withdrawal. Annuitants seldom choose any kind of straight payment option that has no period certain, but many insurance companies offer flexible payout options that can change even after annuitization to allow contract holders a greater freedom in how they receive their income streams. Annuitization is also not always required; some owners opt never to annuitize their contracts in order to retain greater freedom over the distribution. TIMING OF PAYOUT All annuities can be divided into one of the following two categories when it comes to timing of annuity distributions: Immediate Annuities – These contracts do not have an accumulation phase before payout. As their name implies, immediate annuities begin making payments back to the owner as soon as the contract is in force. Deferred Annuities – The principal invested in these contracts will grow for a set period of time until annuitization or systematic withdrawal. ADVANTAGES AND DISADVANTAGES In the last section, we explored the phases of annuities and how contributions are made to them and distributions made from them. This section covers the advantages and disadvantages of annuities and the parties involved, as well as how they are taxed. Involved Parties There are four key parties involved in any annuity contract. They are listed as follows: • Contract Owner – This is the person who purchases the contract and pays the premiums. Usually, the contract owner is also the annuitant, but not necessarily. There can also be more than one owner on a contract; all forms of joint tenancy are permitted for annuity ownership. Trusts and corporations can own annuities as well. • Annuitant – The person named in the annuity contract who is scheduled to receive the annuity payments. • Beneficiary – The person who will receive the funds in the event that the annuitant/owner dies before the funds are redeemed. • Insurance Carrier – The life insurance company that holds the funds administrates the contract and is responsible for making payments to the beneficiary. Advantages of Annuities Annuities are among the most unique types of investments available, and there are many reasons why investors look to them as a key retirement savings vehicle. Some of the key benefits provided by annuities are: • Tax Deferral – Annuities stand alone as the only investment that is inherently accorded tax-deferred status. All money invested into annuities of any kind grows tax-deferred until it is withdrawn. Annuities have no limit on the amount of money that can be placed into them, and there are also no income phases out schedules that apply to contract owners or annuitants. This gives them a substantial advantage over Individual Retirement Accounts (IRAs) and qualified plans for wealthy investors who can shelter millions of dollars from taxation inside these contracts. • Guaranteed Payout – Annuitants that choose any type of life payout option can rest assured that they will receive some sort of payment until they die, even if they completely exhaust the value of the contract beforehand. • Protection from Probate and Creditors – Annuity contracts are generally exempt from creditors in most cases and are unconditionally exempt from probate proceedings nationwide. Exemption from creditors can vary somewhat from one state to another; for more information on this matter, call your state insurance commissioner. Disadvantages of Annuities Despite their benefits, annuity contracts can also present several disadvantages to investors, although they will vary considerably from one investor to another and depend upon various factors. The main drawbacks of annuities are listed as follows: • Costs and Fees – Annuities are one of the most expensive types of investments available in the financial marketplace. A breakdown of the fees for each type of annuity will be provided in later sections. • Illiquidity – Most annuity contracts charge stiff surrender penalties for early withdrawal, plus a 10% premature distribution penalty to investors who take withdrawals before age 59 • Complexity – Although annuities can provide tremendous benefits for investors when used correctly, they are by nature complex instruments, especially indexed and variable contracts. Even experienced investors have difficulty understanding these vehicles, and a great deal of education is required in order to sufficiently educate clients in how they work. • Taxation – All withdrawals received from an annuity contract that are not considered to be a return of principal are taxed as ordinary income, regardless of the holding period of the contract. There is no chance to qualify for capital gains treatment. To be concluded next week

THE GUARDIAN, Monday, June 24, 2013

INTERNATIONAL ECONOMY

THE GUARDIAN, Monday, June 24, 2013

China’s credit crunch signals Beijing’s strong policy direction O what to make of China’s Sworst June credit crunch, the in at least a decade, which saw interbank lending rates reach a new high? On June 20, the overnight repurchase rate set a record at 13.91 percent, before the People’s Bank of China, China’s central bank, injected funds, driving rates into their its biggest fall since 2007. Despite spooking global markets and no doubt causing consternation among Chinese banks and borrowers, the whole episode is a positive sign for some. It shows China’s top leaders are still serious about broader economic restructuring and that they mean business when it comes to cleaning up some of the frothiness in the banking sector. It also shows Beijing is willing to hang tough even when things get a little scary. “This actually played out much further than anyone expected,” says Leland R. Miller, president of China Beige Book International, which carries out a quarterly survey of the Chinese economy. “At the end of day they are not looking for their system to collapse. But the message is unmistakable – things are tightening, we want them tightened, and we are serious. The PBOC is saying: We are going to force banks to be more responsible.” More responsible means reining in some of the rapid lending that has helped drive growth. In a worrying sign, such lending has recently become less effective at doing so—likely because more and more new credit has gone toward paying off interest on outstanding loans (and is probably helping hide a growing baddebt problem, too). Financing has been “going to firms that were rolling over their loans, and that is not causing an expansion of the economy,” says Miller. Total credit in the economy grew 22 percent in May, year on year, and “is on course to hit 200 per cent of GDP at the end of Q2, up from 130 per cent in 2008,” points out London-based Capital Economics economist Mark Williams in a June 20 note. The People’s Bank of China “is worried by the unsustainable growth rate of credit and is sending a message that market participants should not take for granted that they will always have access to cheap interbank loans,” wrote Williams. Beijing’s brinksmanship is also likely aimed at cleaning up some of the riskier practices in China’s banking sector, which have helped contribute to a serious problem with local debt. By a broad measure, China’s shadow banking may have already almost doubled since 2010 and could amount to as much as 36 trillion yuan, or 69 per cent of the economy. “We think the (central bank) is right in trying to rein in credit growth and warn banks to properly consider liquidity and counter-party risks,” wrote Tao Wang, chief China economist at UBS Securities in Hong Kong, in a June 18 note. “We also think the regulators would be right in cracking down on reckless interbank and other

type of regulatory arbitrage through which banks increase leverage, hide loans, bad assets and risks.” “It underscores that at the moment the government is not interested in accommodating calls for stimulus – they will hold the line on the need for reform,” says Louis Kuijs, chief China economist at the Royal Bank of Scotland (RBS) in Hong Kong, citing premier Li Keqiang’s calls for fiscal and land reforms to support urbanization, and a reduction in red tape to encourage the growth of private business, aimed in part at easing the transition to a more domestic consumption-driven economy. “It still remains to be seen exactly how bold the reform agenda will be, however.”

A Chinese flag flies outside the People’s Bank of China headquarters in Beijing

THE GUARDIAN, Monday, June 24, 2013

InsideTax

THE GUARDIAN, Monday, June 24, 2013

BusinessInterview ‘Economic re-engineering at state level I believe that before the end of our first tenure, we would have achieved 90 per cent of our plans and whatever is remaining would be completed in the second term. What’s been happening in the area of infrastructure development? We are building roads. We are opening main corridors for businesses. This is not only in the state capital, but also in the rural areas. We have nine rural areas that have been turned to urban cities and they have large population. We are doing a lot in improving commercial activities in the rural areas. But to carry out these projects, we embarked on concerted efforts to grow our internally generated revenue. Our internally generated revenue is now in billions. We started with just N337 million. The first step was to block leakages and ensure that revenue generation is done through the banks. Once you pay to the bank, you will get electronically generated receipt. This ensured that the whole revenue is going to the government. Some of the development projects in Osun were actually done through internally generated revenue. Prior to the taken over of Osun state by the present administration, the state had inherited shares of blue ships companies like Guinness, Unilever that were stranded and nobody knew where they were. Today, we have recovered those shares of over N2.5 billion. With this, we can comfortably support our contractors and downstream operations. You had earlier talked about challenges inherited when you came into office. How did you resolve them? When we came in, the civil service was not effective enough in achieving its mandates. The health system had already collapsed. As I am talking to you now, we have just mobilised contractors to renovate nine state general hospitals. It is a remarkable project, which is expected to cost the state N7.6 billion. It is remarkable in the sense that the Osun is the only state where you will have about nine general hospitals being renovated at the same time. This is deliberate because we wanted to use it as an opportunity to create jobs and save lives so that people will not be travelling from one place to another for quality health care service. We have also carried out civil service reforms. We have successfully done this in the area of revenue collection. We have also been able to reform our expenditure procedure. This became necessary because, you could have all the money, without proper steps in spending Bolorunduro it, it could be misused. We were able to work on our payroll system with the introduction of biometric technique. On May 1, many civil service personnel actually Dr. Wale Bolorunduro, Commissioner for Finance, Osun State, believes that faithful implementation of germaine came out to support the governor’s second economic projects in states has the potency to aggregate into robust resource base for national growth and devel- term regime. This was possible because there a deliberate attempt to ensure that we opment. He spoke with the Business Editor, ADE OGIDAN on measures being taken by Osun State to achieve that was have industrial harmony. So, we made sure that the agreement that we signed actually objective. Excerpts. stated it clearly that we have met the minimum wage policy across the board and we have also met relativity across the board. How would you assess the state’s performance because they were taught how to repair engaged in the sewing of uniforms. Through Our biometric technique has been able to on the economic front so far? the help of the Governor, we have been able to remove the members of staff, which were not computers and phones. With this, we have N terms of performance, I believe we have been able to reduce youth restiveness in the establish a garment factory, which is one of properly identified in our system. As we reform scored 80 per cent based on what the the biggest factories in Nigeria. The factory state. physically, we need to reform the mind. The Governor set out to achieve. As I am talking to In addition to this, we have over 3,000 food has taken 3,000 youths. We have the budgetcivil servants’ attitude towards work has you, there are 25 state-of-the-art schools that ary and fiscal tools to drive job creation. We vendors that have been engaged in the changed. We have also spent a lot of money on could take 1000 to 2000 students across the happen to be the only state that would today training. As we are automating the process, we feeding programme for primary one to state in Osun. Apart from that, we have been tell you that based on our plans, this is the four called “Home Made Programme”. We are also making the computers available on able to deliver on our promises in respect of number of jobs we have been able to generate. their desks to make them more efficient. have employed over 3,000 tailors that are enabling business environment for entrepreIn area of industrialisation, what’s the update neurship. We have 20,000 youths that have on the industrial park initiated by the previous graduated from various skill acquisition cenadministration? tres. We have another 20,000, which has There is a company that is currently building a factory in the state, which The industrial park initiated by the past adminbrought the figure to 40,000 youths that have istration was located far away from power supdeals on repair of phones, laptops and other electronic devices. There is just been empowered in the state. The youths ply sources. The challenges we are having now were paid certain allowances in return for two is what to do with the industrial park. We need also a Chinese company, which is interested in establishing a computer to three days work. From these allowances, industrialisation. We are interested in buildsome of them have been able to start small busi- factory in the state. So, in our own little way, while industries are closing ing factories in the state. We have electricity nesses. Some of them have graduated from that in the state. We have an agreement with down in other states, we are actually attracting industries to the state. Like plants scheme and are now farmers or operators in Bank of Industry in the area of finance. Bank of several business areas. Industry has just financed mechatronic for us I always say, this ought to have been done several years ago Many of them have been able to engage themto train our youths on how to handle the new selves in one business or the other. Some got models of cars. With this, the mechanic would jobs with telecommunication companies be able to apply the latest technology in the

THE GUARDIAN, Monday, June 24, 2013

imperative for growth, development’ this year, we have actually made budget for repairs of car. Through the collaboration with system so that we will be able to capture the those who will buy the cassava, plantain or data of all the farmers. We try to get informaBOI, we have given over N1 billion to the coopyam under our agro scheme. We are going to tion like what kind of seedlings the governerative societies. But, we can do better than embark on campaign very soon to woo peoment has given and where the farm is locatthat. We are making sure that we move the ple to express their interest to partner with ed. These are the major challenges the industrialisation of Osun State forward. One government. In some cases, we would build Governor has tackled. Now, we have stability of things we have done was to find a corridor the plants and the private sector would mannear the rail line to make it easy for us to move of food prices in Osun. We are not yet there, age. We may even collaborate with the private we have now gone further to ensure that we our farm produce to Lagos and bring in finsector to build plants or allow the private seccreate a commodity exchange system with ished goods to Osogbo. Osogbo used to be a tor build its plants. But we have partnered the private sector. What it means is that we commercial city in those days. We are trying to bring out N150 million and the private sector with the Bank of Agriculture to make credit bring the state to become a commercial hub available for farmers. Initially, we used to conwould bring out another N150 million to for the South West. tribute to Bank of Agric and they will adminisraise N300 million. With this, they will be How far have you gone with that project? ter, but now, they also contribute to the able to engage in trading activities. We disToday, we have an agreement with covered that the farmers were not interested scheme. In the last two and a half years, we Transmission Company of Nigeria to create a must have given out over N1 billion to farmers in moving the food from the farms to the power plant. We have signed a Memorandum market. They want you to take the food from corporative societies. of Understanding with a company in Asia – This year also, we have started moving to cash the farm gate. The farmers actually CWG, to build the warehouses. On their own, explained that they make more money when crops like palm produce, cocoa, cashew and they have secured letter of agreement with a others. Our agric programme is actually you come to their farms to buy the produce multinational company. Government is not a going on and is on course. We also have promanager of business. They will be the one that than when they take it to the market. So, in grammes to create a scheme to tackle some of terms of creating value and allow them to will build the infrastructural facilities. Now, the challenges being faced by poultry operaget value for their money, that is what we we are bringing power plant to that side tors. One major problem with chicken farmhave achieved through the removal of the because the national control centre is not far challenges such as access to land, availability ers is lack of fund to buy raw materials. from that site. There is a company that is curAnother major problem is that once the of fertilizers and buying the produce from rently building a factory in the state, which chicken is fully grown, you must take it to the the farms. deals on repair of phones, laptops and other market, so they have market constraints. Our electronic devices. There is also a Chinese com- The next phase is that we want to begin to plans are to create market and provide more create Small and Medium Enterprises (SMEs) pany, which is interested in establishing a chicks for them. That scheme produced about that would process the cassava. The problem computer factory in the state. So, in our own 1.5 million chickens last year. It is expected to little way, while industries are closing down in with the cassava is that you must quickly increase to 2.4 million chickens this year. remove the moisture whether you are makother states, we are actually attracting indusAbout 3,000 chicken farmers benefited from ing it into garri or other things. In our plan tries to the state. Like I always say, this ought to have been done several years ago. What is the situation of the computer factory now? We have gone very far. Prior to being nominatWe have done a lot in the area of infrastructure development and these are ed as a commissioner, I read a story in the newspapers in which someone said that the very visible for people to see. We believe very much in the fact that re-engitowns in Osun are big but rusty. So, basically, if neering of the resource base in the state and effective utilization of manyou have a rusty town, no investor will like to come and live there or visit the place. So, what power will have overall impact on the macro-economy. In our own way we have done is to commence the urban renewal programme. With this, we will go to therefore, we are contributing significantly to the growth and development the city centres and begin the intervention. Urban renewal programme also entails having of the nation’s economy new schools, hospitals and creating commercial corridor. We have built “Freedom Park”. If you go to the railway terminal in Oshogbo, you will be amazed with what we have done there. We have beautified places to make them possible to chill out, eat and enjoy the fresh air in the city and have a sense of living in a modern city. These are deliberate interventions to ensure that we create conducive modern cities that can attract investors. Our urban renewal programme is broken into two; we have the emergency intervention, which is to go to the Yoruba traditional city centre, where the market, mosque and Oba palace are located. Those places would cost over N1 billion to rejuvenate. While the larger plan is in collaboration with the United Nations, which evolve 20 to 30 years plans on how those cities would revolve. There is need for us to begin to plan on where to locate infrastructure, market, sawmills, mechanic villages and others so that in 10 to 20 years time, you will still have the beautiful city. These are the things we are doing to mordernise the state of Osun. Your flagship programme was anchored on agricultural development and food security. What are you really doing with the stakeholders to encourage large scale farming? There are two critical factors militating against agricultural production in the state. The initial one we tried to address was access to land. An average farmer in Osun then, had only two hectares, which were too small for a farmer to make reasonable profit. They face more challenges whenever there is glut and there is fall in the price of farm produce. This means that in the next farming season, they will not plant. The first thing we did when we came in was to acquire more land, clear it with tractors and gave minimum of 10 hectares to these household farmers. This eventually led to higher yields. We also assist them with seedlings and fertilizers. We are manually distributing the fertilizers now. We are in the process of automating the Bolorunduro

this scheme. We eventually buy these chickens from the farmers to be used in our home made programmes where we feed school children in our schools. This has actually created two to three thousand jobs. Some of them have become millionaires through the programme. We also have what we called OFIG programme. This enables us to provide fingerlings to those that have ponds to produce fish. Our agric programme is almost getting to a state where big companies will begin to patronize the sector. As I am talking to you, Flour Mills of Nigeria Plc wants to come to Osun because our fish and chicken programme buy a lot of feeds. I know within the next six months, we would have attracted feed millers to the state. We have several feed millers talking to us. We are ready to welcome some agro-allied company that will be willing to provide training for our farmers or buy the farm produce from our farmers. How optimistic are you on further improvement on the state’s IGR profile? We have to look at the general economic situation in the country. If you say you want to get IGR of over N1 billion outside of Lagos, people will not believe you. So, you have to look at it in the light of the possibility in the other states. It is not that we have not done over a billion. But, we have significantly improved our IGR. This was possible because of the developments that have taken place in the state and how we have transformed virtually every sector of the state’s economy. When we started initially, people were concerned on how we were going to finance the projects. We have done a lot in the area of infrastructure development and these are very visible for people to see. We believe very much in the fact that re-engineering of the resource base in the state and effective utilization of manpower will have overall impact on the macro-economy. In our own way therefore, we are contributing significantly to the growth and development of the nation’s economy.

THE GUARDIAN, Monday, June 24, 2013

Opinion Judiciary, public trust in emerging dispensation (1) By Akin Oyebode HE JUDICIARY which an American commentaT tor once described as “the least dangerous branch” is quite definitely the most important element in any system which operates under the principle of separation of powers and the rule of law. As the branch which ensures checks and balances in the interaction of all the branches of government, the judiciary is well placed to act as sentinel of due process, democracy and good governance. Indeed the rule of law is inconceivable without an independent, impartial and fearless judiciary, dedicated to their well-appointed task of serving as ministers in the temple of justice. In a society such as ours, which is currently experiencing leadership deficit in nearly all sectors of human endeavour as well as tremendous selfdoubt among the generality of the people, the judiciary has been battling to rise above the decay afflicting various state organs and institutions. Nevertheless, that is a most daunting task as the judiciary has found it very difficult, if not, in fact, impossible to escape the sense of doom and disillusionment which seems to have enveloped the entire country as many people have since been giving vent to their frustration and bewilderment on account of the diminishing faith and loss of confidence in an otherwise revered institution. It is against this background that we are called upon to re-visit the condition of the judiciary in a rapidly changing environment. It is intended to begin this presentation with an examination of the place and role of the judiciary in the scheme of things generally before assessing where the institution is at the present point in time and, finally, attempt a prognosis of the judiciary within the unfolding scenario. The Role of the Judiciary in the Polity It would indeed amount to preaching to the converted in a gathering such as this to be extolling the overarching role of the judiciary within the legal order. Yet, it is necessary to restate and re-affirm the centrality of the judiciary in any society that espouses fidelity to due process or “subjection of human conduct to the governance of rules”, to borrow the expression of my teacher, Lon Fuller, late Carter Professor of General Jurisprudence at the Harvard Law School. Ever since the publication of Montesquieu’s Spirit of the Laws in the 18th century and Dicey’s Intro-

duction to the Study of the Law of the Constitution in the 19th, it had become conventional wisdom among constitutional lawyers that the twin notions of separation of powers and checks and balances constitute the bulwark against all forms of authoritarianism, arbitrariness and chicanery. More significantly, the judiciary is called upon to act as guardian angels for the optimal functioning of the government of laws as against a government of men by seeing to it that all arms of government act in conformity with the limits of their powers as prescribed by the laws setting them up, that is to say, the Constitution and other laws pertaining thereto. In other words, in a system of separation of powers, the judiciary is located higher than the other arms of government and maintains this position by ensuring compliance with the strictures of checks and balances without which it becomes most difficult, if not, in fact, impossible to contemplate the niceties of the rule of law and desiderata of democracy and good governance. Although members of the judiciary are not always elected in accordance with the tenets of popular democracy but more often than not appointed to office by the executive arm, their competence and legitimacy are never in doubt since judicial officers constitute a veritable repository of the public trust and are widely recognized as such. Admittedly, judges, like the rest of us, are human and could be given to socio-ethical values and cultural idiosyncracies and sometimes expose their biases and ideological preferences in their pronouncements, the general attitude of the population tends towards giving them benefit of the doubt, more so, as they are sworn to do justice to all manner of men “without fear, affection or ill-will…” Indeed, the figurine of Themis, the Lady of Justice which adorns our court-houses, blind-folded and wielding a sword in one hand and scales of justice in the other, depicts equality before the law as well as commensuration of crime and punishment, an ideal image in the eyes of the ordinary people, even though some critics allege that it was about time the lady peeped through her blindfold, if not, in fact, totally remove it so that she can then adjust her scales appropriately by according recognition and preference for the poor and lowly-placed visà-vis the more affluent and highly heeled litigants! None the less, it must be emphasized that the judiciary has across the ages striven to uphold its

image as an objective dispenser of justice to all persons who appear before it. If, by any act or omission, it forfeits this position of respect or, I daresay, reverence before all and sundry, the consequence could really be calamitous for society as a whole. For, the judiciary is indeed the last stop before chaos and catastrophe hence the aphorism that it is the last hope for the common man. So important is the public trust placed on the shoulders of judicial officers that strenuous effort is made by society to uphold security of their tenure as well as attractive conditions of service for them in order to ensure effective discharge of their awesome responsibilities and protection from any untoward influence either from litigants or the powers-that-be. However, whenever any judge is found to have run foul of the code of ethics of his office, there are usually well-laid down guidelines and procedures for separating such a judge from his office, lest one rotten apple spoils the rest. Either through impeachment and, or investigation by his peers, trial and fine or imprisonment, a judge found guilty, one way or another, of infamous conduct would be ruefully reminded of Thomas Fuller’s admonition: Be you ever so high, yet the law is above you! It needs be stated that the public must be well aware that the judiciary operates at its behest and should, therefore, be constantly kept on its toes. An unduly obliging people could quite easily be taken advantage of and become helpless in the face of judicial tyranny and oppression. Accordingly, there is a felt need for conscientization of the people in terms of awareness of their rights and duty to play the role of whistle-blower whenever occasion demands it in order to maintain sanctity of the judicial process as well as the lofty position occupied by judicial officers who are indeed keepers of society’s conscience. The penchant for petition-writing among the people is to be deprecated. Yet, it must be ensured that the baby is not thrown away with the bathwater by upholding the right of the people to wash everything they encounter with a much needed dose of cynical acid. After all, the people are, in the final analysis, the protectors and guarantors of the independence of the judiciary. The Judiciary and the Public Trust in the Emerging Dispensation It must be admitted that there has been tremendous disquiet in many quarters in the recent past regarding the role and conduct of some members of the Nigerian judiciary. When it is not accusation of frivolity with the granting of ex parte

injunctions, it is laziness, outright ignorance or imperial behaviour on the bench as well as influence-peddling and compromise of judicial independence through unnecessary communication and fraternization with counsel involved in matters before them. However, what has proven most distasteful in the recent past is allegations of bribery and corruption and other outrageous and unacceptable conduct, especially in relation to electoral petitions and other political cases over which they are presiding. The embarrassment which such infamous conduct by some judges had wrought on the prestige and reputation of the Nigerian judiciary in recent times is such as to make many wonder aloud if gold rusts what could be expected of iron? As the custodians of societal values of probity, fairness and objectivity, the judiciary is cast as a beacon of hope and integrity in the eyes of ordinary Nigerians so much so that whenever any case of malfeasance or impropriety occurs in our national life, a judicial commission of inquiry was usually the first recommendation made to investigate such as well as impose requisite penalty accordingly. In today’s Nigeria, however, people are no longer altogether sure if the judiciary can still be considered an exemplar of proper conduct within the polity. The mode of appointment as well as qualifications of many of our judges have also since become suspect with consequential loss of status and regard in the eyes of right-thinking members of society generally. A situation where the most celebrated of our lawyers would not, for one moment, consider taking up judicial appointment constitutes a clear evidence of the loss of esteem of an otherwise prestigious and highly revered vocation. Not even the allure of presiding over the affairs of fellow humans, including the power of playing God by sentencing accused persons to long terms of imprisonment, not to talk of the death penalty any longer attracts successful legal practitioners to judicial office. Today, the best and brightest shun judicial appointment without batting an eye-lid so much so that most of the appointees to high judicial office are now mediocre and run-of-the-mill jobbers. TO BE CONTINUED • Oyebode is Professor of Law and Chair, Office of International Relations, Partnerships and Prospects, University of Lagos.

Must Nigeria adopt globalisation concept? By Edwin Uhara IRST of all, I must admit that globalisation is a concept driven by FBut,people. it is made possible by policies that have opened up economies domestically and internationally! According to globalisation101.org, globalization is a process of interaction and integration among the people, companies and governments of different nations. It is a phrase that best describes the interconnected nature of our world, as businesses and organisations are already taking advantage of the new opportunities presented by globalisation! But, why don’t we globalise labour? In 2008, I did a piece entitled: “Globalisation: Why Labour should be globalised “for ezenarticles.com, in that article, I questioned the rationality behind the act of allowing free movement of goods and ideas without allowing labour to move freely? Highly skilled workers should be allowed to move freely to any where their services are needed regardless of boarder. We cannot be globalising our ideas, commodities and trademarks without allowing the hen that lays the golden eggs to move freely. Or can an idea generate its self? On December 13 2012, I participated in a live chat with World Bank Recruiters, being mindful of the federal character concept and practice in Nigeria, one of my questions was: “Can a Nigerian apply for a job that has America as designation”? I got two different answers! For the sake of this write-up, I will quote their exact answers here. The first answer was: “We hire staff from 188 different member countries (including Nigeria). We have no quotas for nationalities. We have 120 plus field offices worldwide”. The second answer was: “You can apply to any of the vacancies,

even if there are not based in Nigeria. The important thing is that your qualification and experience match the job description and requirements”. All over the world, companies and corporations are taking advantage of the new opportunities created by globalisation to make more money for their shareholders, as foreign companies are built or outsourced to partners at the other side of the globe. Government appointments are not left out in some countries! For example, Mark Carney is a native of Canada who had served as the governor of the Canadian Central Bank, but was appointed as the governor of the Bank of England. According to Newsweek Magazine of December 10, 2012, the major reason Mr. Carney got the banking top job in England was because, during his reign as the Governor of Canada’s Central Bank, the nation’s economy only shrank by 2.77 per cent in 2009 and avoided a banking crisis and it’s politically damaging bailouts that ravaged the United States and the United Kingdom. The report continues, “as developed countries have struggled with slow growth and double dip recessions, Canada’s economy has posted a central banker’s hat trick: steady growth, low inflation, and a strong currency”. Nonetheless, they are proponents of globalisation and they are opponents of globalisation! While the proponents believe and argue that the concept of globalisation allows developing countries to develop economically and raise the living standards of their citizens as well as enjoy unfettered access to other nation’s market. They have also argued that it has encouraged the free exchange of ideas, technology and knowledge; and have also made life easy as people no longer travel far distances to get information or transact businesses, even beat editorial deadlines. In the same vein, opponents of globalisation have also argued that the claim of unfettered access to markets as an advantage of globali-

sation has only benefited large corporations and other multi-nationals without trickling down to small and medium sized companies and organisations. They also argued that globalization exposes infant industries, local cultures and civilizations to undue and unfavourable competition. Others said globalization take-away local jobs from local people to foreigners. For example, in 2008, there was a xenophobic protest in South Africa where the poor and unemployed South Africans attacked foreigners including Nigerians for taking away their jobs, while they remained unemployed. It took the intervention of the former president, Mr. Thabo Mbeki to quell the attacks. In our own country where tribalism and nepotism have almost “dethroned” merit and competence from its “rightful position”, how can globalisation strive in line with international best practices? We introduced the federal character in to our constitution so as to encourage equal representation at all levels, when it comes to appointments, admissions etc. We demand for state of origin certificate as a proof that Mr. X truly hails from where he claims, but, when it comes to conducting census, Mr. X is asked to remain in his state of residence. The census data generated are what government use in planning, especially in the disbursement of the monthly shared statutory allocations to states and local governments in the country. It is because of these inconsistencies in the application of the federal character that prominent Nigerians have called for the replacement of the state of origin with the state of residence, so as to make it easier for Nigerians to globalise internally before the real globalisation! • Comrade Uhara is an activist and a public affairs commentator. He is also the National President of Young Nigerians for change.

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Opinion Achebe: Seer, writer and patriot extraordinaire (1) By A. B. C. Nwosu OW does one begin to pay tribute to a genius H like Professor Chinua Achebe, or rather to Nnanyi Chinua Achebe, Ugo be n’oji - Eagle on the Iroko: nnukwu Mmanwu; Oke Nze; Owner of Words? I shall start from Africa’s best loved and most widely read novel Things Fall Apart where je (Achebe) detailed the conversation between the big masquerade, The Evil Forest, and the parties in a dispute in the village. “Uzowudu’s body. I salute you”, he said, Spirits always address humans as bodies”. Uzowulu bent down and touched the earth with his right hand as a sign of submission. “Our father my hand has touched the ground” he said. “Uzowulu’s body, do you know me? Asked the spirit. How can I know you, father? You are beyond our knowledge. “Evil Forest then turned to the other group. “The body of Odukwe, I greet you” he said, and Odukwe bent down and touched the earth. The hearing then began. In this tribute I shall address Professor Chinua Achebe as Nnanyi Achebe, Eagle on the Iroko, and say to him: “The boy of ABC Nwosu pays his respects, for you are beyond our knowledge”. Reading you has given to many of us so much inner satisfaction, and immeasurable pleasure at your use of language that your genius will forever be acknowledged. (I need however to point out that Achebe is not Evil Forest but Ijele, the king of all masquerades.) Three glimpses of Achebe the writer and the man are available from those who were privileged to “know” him well - the very accomplished Mr. Chike Momah who was his classmate at the famous Government College Umuahia and University College Ibadan; and from Professor Michael Thelwell, Professor of Literature and Afro-American Studies formerly of Amherst and now of Princeton University. Professor Thelwell delivered the incomparable “Eagle on Iroko” keynote address at the three day Achebe 60th Birthday Symposium at the University of Nigeria Nsukka. He said: I know of no contemporary writer, in any language and out of any culture whose oeuvre - in sustained excellence of craft; meaningful literary innovation; clarity of vision and purpose; cultural importance and international acceptance; as well as universal popular affection and respect approaches that of Chinua Achebe”. The keynote address should neither be paraphrased nor interpreted for anybody. “The Eagle

on Iroko” speech, remains for me a masterpiece. Thereafter Professor Thelwell became friends with many of us of the Achebe Fan Club. I know that he will be at Ogidi to mourn his friend in person. We shall be there with him. Michael Thelwell, Bernth Lindfors and others have often referred to Achebe as the father of modern African literature or father of the African novel. Chinua, typical of him, always shrugged off such appellations because it was really not important to him who the father or grandmother, or uncle of African literature is or was, so long as African writers remained focused on “the cause of Africa”, and humanity. However, the best characterisation of Chinua Achebe that I have read was the five page introduction on him by the late Dr. Pius Okigbo for the 1986 Nigerian National Merit Award Winners Lecture titled: What Has Literature Got To Do With It” Dr. Okigbo began: “He called him Chinualumuogu: may God fight on my behalf, abbreviated to Chinua. That was the prayer of Achebe senior on 16th November, 1930 when the youngest of his four surviving sons was born”. Dr. Okigbo continues: Umuahia (Government College) sharpened his perception of the world around him, what with contemporaries like late Christopher Okigbo the poet, Okey Achike the judge, Bede Okigbo the agronomist, Vin Ike the novelist, Chu Okongwu the economist, and Madiebo the general, most of them junior to him at College but later, like him, grow to dominate their own fields”. The Dr. Okigbo makes a most telling revelation: “Ibadan (University College) of the early 1950s was intellectually exciting; for it was at Ibadan that Chinua began to look back on some of the things he had read at Umuahia; Ryder Haggard, Joyce Cary, Joseph Conrad. He realised that when at Umuahia he had read their references to savages, he had regarded himself not as of the savages but as part of and on the same side as the authors. At Ibadan he came to realise that he was one of those described by the authors as savages. Thence blossomed his romance with and respect for African culture, a culture not understood by outsiders, the seeds of which had been sown in his (Achebe) family backyard.” The rest as they say is history. In his tribute to his classmate and close friend Chinua, Mr. Momah who wrote in from Arlington Texas (Vanguard, Tuesday May 7, 2013, p. 18) said: “That Chinua will achieve greatness and fame was first predicted by my primary school Headmaster in

1943, Mr. Okongwu (Dr. S. P. Chu Okongwu’s father), as sagacious an observer of humanity as you are likely to meet. Headmaster Okongwu’s prophecy was straightforward and unambigious. “I predict that you will meet at Government College Umuahia a boy called Albert Achebe, and Albert will make the (academic) rain that will drench all of you”. I gained admission to the famous Government College, Umuahia. Chinua also did on a merit scholarship! This was in January 1944. Mr. Momah continues: In the middle of 1944, our first year in school, Chinua was promoted with five other boys to class two. First drenching! From then till his high school graduation in 1948, he was the best student in his new class. That same year, he won a merit scholarship (one of only six or seven awarded that year) to the University College Ibadan (UCI) to study medicine! “He changed courses at the end of his freshman year and I caught up with him one more time. This was in 1949. We both graduated, Bachelor of Arts in the same subjects in 1953. Throughout those four years, our professors and lecturers, again and again let us know that Chinua was not only the best student in the class but also the best writer of English. He achieved the best result in our degree examination. Second drenching! “More drenching followed, fast and furious! Within five years of our graduation THINGS FALL APART was published. Other novels followed; success followed success”. Mr. Momah then delivers the coup de grace, the masterstroke which in my opinion is the best assessment of Chinua Achebe as a writer. Chike Momah says as of Achebe: “He was as I have dared to proclaim elsewhere the best writer of English that I think I have ever read. He is, for me, its most mellifluous exponent. For me, there is no writer living or dead who has demonstrated in greater measure than Chinua, the ability to weave a tapestry of words taken from Queen’s English and from proverbs and aphorisms of his own mother tongue, Igbo”. Dr. Pius Okigbo seems to agree with Mr. Momah’s assessment when he stated that he could not compare Achebe with any other African novelist, for there was none; but rather went to another art form, to drama, and took Professor Wole Soyinka with Achebe. Dr. Okigbo agreed with both of them that the age we now live in his “age of decline: half-dead at the top”. He said. It is clear from Mr. Momah’s tribute that Achebe knew early enough that he was going to become a writer. In his interview with Lewis Nkosi in 1962,

Achebe had said: “I was quite certain that I was going to try my hand at writing and one of the things that set me thinking was Joyce Cary’s novel set in Nigeria. “Mr. Johnson” (the novel) was praised so much, and it was clear to me that this was a most superficial picture of, not only of the country but of the Nigerian character; and so I thought that of this novel (Mr Johnson) was famous, then perhaps someone ought to try to look at this from the inside”. As Achebe had said in many of his interviews and writings, “until lions produced their own historians, the story of the hunt would always glorify - lionise, if you desire, the hunter”. Achebe was determined not just to be a writer. To him the mission of the African writer was to rescue the African past from the gross colonial misrepresentation and biased stereotyping to which it had been subjected. To him, the Africa writer had a duty to correct the prejudices which generations of detractor created about the Negro, and in this regard, he enjoyed a deep brotherhood with the celebrated American writer James Baldwin. It was therefore not by “accident” that Achebe’s novel about our past, Things Fall Apart and Arrow Of God had an obvious objective; to show that Africans had a history. To Achebe, African world before the arrival of Europeans was a well-integrated one, warts and all, but with honour and dignity. He asserts strongly that African people did not hear of culture and civilization first time from Europeans, and that Africans were definitely not savages! Indeed Achebe said in one of his interviews that he would be quite satisfied if his novels (especially the ones set in the past) did no more than teach his people that their past, with all his imperfections, was not one long night of savagery, from which the first Europeans acting on behalf of God delivered them. This is why the words of the letter cum tribute from President Barrack and Mrs. Michelle Obama at the Achebe Washington Ceremonies May 2013, are so apt. President Obama and Michelle described Achebe as “a revolutionary author, educator and cultural ambassador who shattered conventions of literature and shaped the collective identity of his people throughout the world”. To be continued. • Prof. Nwosu is former Minister of Health.

Africa’s turn for world economic forum By J. Boima Rogers HE RECENT World Economic Forum (WEF) conference in MyanT mar demonstrates the rapid change that country is going through, from world pariah to a country that is getting all kinds of accolades and attention, from Obama, the European Union, Japan, China and other countries. The WEF event was an endorsement of Myanmar through brand bonding involving top business executives and politicians and staff from major countries, with the focus on business. To be fair to the country it has made significant moves to be nice to its people and the rest of the world and this merits some reward. The issue is has it done enough and why is it being given this treatment and African countries that have impressive track records on democracy, economic growth and management and with equally attractive resources have yet to host the event. The WEF must give Africa a similar endorsement and I would like to nominate three countries that deserve this seal of approval from the WEF, namely, Ghana, South Africa and Rwanda. The list covers east, south and west of the continent and includes countries that have impressive track records and resources which would benefit from a WEF event. It will give them the chance to showcase investment opportunities, encourage them to take measures to be more attractive for investors and it will be part of the effort by Africa to engage not just with charitable brands but also major business brands as well. Why is Myanmar getting all this treatment which could translate into major investment and economic development? The country has embarked on major political and economic liberalization. It has allowed one of the most famous women, Aung San Suu Kyi, to take part in the political process. It is still work in progress. The political liberalization is in its infancy with most of the members of parliament still belonging to the group that has ruled for decades. It has yet to come to peaceful agreement with ethnic minorities and give full protection to the Rohingyas who it classifies as non-citizens even though the group has lived in the country for generations. A more realistic reason for the conference is to do with the country’s abundant natural resources and the fact that it is close to the new economic epicenter and major users of raw materials, China and the

East Asian tigers. Myanmar does not feature in the 144 countries in the WEF index of the competitive landscape of economies in the world and the World Bank index on ease of doing business. It ranks 172 out of 176 countries in Transparency International’s corruption index. The three African countries which I have nominated to host WEF’s meeting compare very favourably to Myanmar in a number of areas. Ghana has made very impressive gains in democracy, having had three free elections which have seen the reigning party removed from power a couple of times. Major efforts have been made with regards to political and economic governance and the country has had high economic growth rates. Ghana has good agriculture, fishing, minerals and manufacturing prospects that are attractive to investors. It has recently started developing its oil and gas deposits and indications are that the potential for this sector is very high. It is the second largest producer of cocoa in the world, a major gold producer with a reasonably good physical and human infrastructure. Ghana ranks 103rd h in the WEF economic competitive rankings out of 144 countries and 64th out of 185 countries on the World Bank’s ease of doing business index. In the Transparency International corruption rankings it comes 64th out of 176. South Africa is the economic powerhouse, with the largest economy in Africa. The country has a democratic process, having organised free elections since it moved to majority rule, a fair judiciary process and free press. It has huge agricultural, mineral, industrial, tourism and fishing potential and very good infrastructure. It ranks 52nd in the WEF economic competitiveness index, 39th in the World Bank business index and 69th in Transparency International corruption index. Rwanda has made huge gains in governance, rising from the abyss twenty years ago when the government at that time and its supporters slaughtered over a million of its citizens. It has potential in agriculture, tourism, manufacturing and distribution sectors. Rwanda has developed its physical and human infrastructure to one of the most advanced in the region and ranks 63rd in the WEF index, 52nd in the World Bank index and 50th in Transparency International rankings. The countries nominated need to work at hosting a WEF conference, the seal from that organisation, to benefit from the attention

of investors from major brands, politicians and the media. A major effort must be made to get up the rankings noted above, partly because it is good housekeeping and to make a case for hosting the event. The focus must be to improve the physical, governance and human infrastructure, with special emphasis on WEF indicators. They would need to market themselves and lobby companies and politicians involved. All three have, by their actions and comparative positions, the capacity to be used as manufacturing, communications and distribution hubs by major brands for the regions they are located and will benefit from the exposure of a WEF conference. After the Myanmar conference, WEF has no excuse to ignore Africa for its next conference. The three countries listed have demonstrated political and economic progress and have ample resources to warrant being used as a venue. I hope the nominated countries and others who can demonstrate a solid case make requests to convene such a conference. This focus on business by WEF will be a shift in African branding from the current situation where charitable organisations take pole position to one where commercial brands also take prominence and, realise and make use of investment opportunities on the continent. While these charitable brands will continue their much appreciated work, WEF should by example, highlight the commercial opportunities on the continent that will benefit Africa and its partners. The dominant forum for the continent has been donor conferences, it should shift to investment forums, to explore and develop business opportunities. I have chosen three countries but others, notably Tunisia, a possible northern host, may also fit the bill and would need to make a case to host this brand bonding event. Do conferences matter, just take a look at the current G8 meeting being held in Northern Ireland, a region facing challenges of sectarian healing, being the poorest region in the UK and the recession. I am sure David Cameron must think the G8 will be a boost. The WEF will give Africa a boost with the focus on business engagement of the continent. • Boima Rogers is the principal consultant at Media and Event Management Oxford (MEMO).

THE GUARDIAN, Monday, June 24, 2013

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NigeriaCapitalMarket NSE Daily Summary (Equities) as at Friday PRICE LIST OF SYMBOLS TRADED FOR 21/06/2013

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NSE Daily Summary (Equities) as at 21/06/2013

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Sterling Bank’s N12.5b rights issue opens By Bukky Olajide PPLICATION list for the A N12.5 billion rights issue of Sterling Bank Plc opens today, paving the way for existing shareholders to increase their shareholdings in the high-return bank. The opening of application list followed the completion of all pre-offer processes including final completion board meeting by board of Sterling Bank and other professional parties, approvals by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) and unanimous approval of the shareholders of the bank. Sterling Bank is raising N12.5 billion through a

rights issue of about 5.889 billion ordinary shares of 50 kobo each at N2.12 per share. Sterling Bank had traded at a high of N3.05 at the stock market. The shares have been preallotted on the basis of three new ordinary shares of 50 kobo each for every eight ordinary shares of 50 kobo each held as at May 20, 2013. Application list will run till July 31, 2014. The net proceeds of the rights issue, estimated at N12.13 billion, would be used to finance branch expansion, infrastructure upgrade in support of automated and cashless payment, enhance information technology and additional working capital. About 35 per cent of the net

proceeds, estimated at N4.24 billion, would be used for branch expansion; 15 per cent of the funds estimated at N1.82 billion would be used for infrastructure upgrade, 10 per cent of the funds equivalent to N1.21 billion would be used for information technology and the largest chunk of 40 per cent, estimated at N4.85 billion, to be set aside as additional working capital. Managing Director, Sterling Bank, Yemi Adeola, said the rights issue would enhance the capital base of the bank and enable it to create additional values for shareholders. According to him, given the fact that Sterling Bank is one of the few financial institu-

tions that have not raised new equity funds in the past seven years, the current fund raising would enhance the performance of the company and returns to shareholders. “If with the modest capital that we have we were able to stabilise the bank, deliver consistently better returns to shareholders and build up to become the a top tier bank, imagine what we would do with more capital. Our shareholders have no reason whatsoever not to be excited in participating in the rights issue. You can’t regret it,” Adeola said. He noted that the rights issue marked the beginning of the bank’s capital raising plan, which is meant to put

the bank on stronger footing and further position it to compete effectively. According to him, the bank plans to raise $80 million through the rights issue and $120 million through private placement to shore up the bank’s tier one capital. He pointed out that the bank is embarking on additional capitalisation because size has become very key and relevant in the banking industry and the bank needs to open more branches and put in place enabling infrastructure for its unique retail banking franchise. He added that additional working capital would enable the bank to expand the scope of its corporate banking business noting

that the bank is currently limited by the single obligor limit, which is a function of available. He exuded that shareholders have been rooting for the rights issue in demonstration of their appreciation for the bank’s growing fundamentals and returns over the years expressing confidence that the shareholders would all pick up their rights. He pointed out that the decision to come to the capital market for equity issue was driven partly by overwhelming requests by shareholders for opportunity for additional investments during the capital raising programme of the bank.

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Media Gains of sanitising outdoor advertising, by Adepoju Issue By Gbenga Salau HE Director General of the Oyo State Signage T and Advertising Agency (OYSAA), Yinka Adepoju has said that to have an outdoor advertising industry that is internationally competitive, all stakeholders must work in unison and support proper regulation and control of the sector with professionals saddled with the task of heading the agency set up by government. He said this while delivering a paper in Kano on the topic, Use of Out-of-Home platforms in public/corporate communications, challenges of effectiveness and environmental protection. The Advertising Practitioners Council of Nigeria (APCON) organized the forum. “It is important that the outdoor advertising industry is restructured while a global sanitization exercise is carried out to enhance the environment and bring about desired effectiveness in public and corporate communications. This, in my opinion, will only be achieved where and when autonomous signage and advertisement agencies are established by government and qualified professionals are engaged towards effective planning and implementation of set objectives. “A critical look at today’s outdoor life in some of our model states like lagos, Oyo,

Adepoju

Ogun, Kwara, Enugu, Cross Rivers, Akwa Ibom and Abuja etc. will confirm saner, safer and more beautiful environment with world-class out-of-home platforms such as Mega Boards, Spectacular Unipoles, Scrolling Boards, Wall Drapes, Street Furniture, lED Gantries and Iconic lED Board which is considered the hottest medium of outdoor advertisement in the 21st century. “lED screens have some special features that make advertisements beautiful, attractive and also have capacity to transmit live events and other public communications. It represents a more attractive medium of outdoor exposure causing the environment to be economically and aesthetically improved. With the setting up of autonomous agencies by government, there is strong political will and support for planning.” According to Adepoju, the serious challenge of multiple taxation and miscreants is erased as government has the wherewithal to combat these disturbing and perennial problems. Government, he stressed, is in a position to spend huge amount of money on landscaping, general beautification of the environment and other infrastructural facilities as provision of such facilities are excellent social service delivery to the people it governs. “Where it cannot cope with the huge spending, it is in a position to adopt a Public Private Participation (PPP) initiative which is very key to the development of any state. Beloved participants, there are so many benefits to be derived from a reform of this nature hence all stake holders must come together and support proper regulation and control, not self regulation of out of home platforms for the benefits of all. In doing so, qualified professionals must be assigned to carry out this great task.” Adepoju submitted. The DG argued that its submission is guided by experience garnered over the years from being a practitioner and now a regulator, maintaining that there is need for a thorough sanitization of the environment to bring sanity to the landscape. “This declaration is coming from the background that it is in our collective

interest to improve our environment either as individual, professional groups and government. We should be reminded that it is only when the outdoor space is safe, sane and conducive for business that both government and stakeholders would continue to derive benefits of the sector. “As individuals, the state of our environment speaks volume about who we are. Indeed, it affects our quality of life and it is a measuring rod for the civility of our society. Hence, we must combat disorder and chaos of unplanned and haphazardly erected outdoor advertising structures. “As professionals, there is the need to discharge our corporate responsibilities diligently and whole heartedly. One of these responsibilities is the need to pay our taxes, levies and other relevant bills promptly, while the other essential factor is to ensure that our practice is well regulated within the ambience of all regulations thus ensuring and encouraging environmental aesthetics. “For Government, the task of making the environment safe, investors friendly and aesthetically appealing should be its topmost priority which must not be compromised.” Adepoju stated that a critical look at the use of the out-of-home platforms in public and corporate communications in some of the major cities revealed that most structures are erected haphazardly with many in deplorable conditions. “Some with sub-standard materials, some already dilapidated, some not properly positioned, some wearing faded and badly torn posters while some are completely broken down. If this is the outdoor scene that generally pervades our environment, what effectiveness are we talking about? Rather than talk about environmental protection we should be discussing environmental pollution, which in anyway does not help public and corporate communications. “Chaotic situations like this will not only cast aspersion on this very important medium of communication, its practitioners, but also the users (advertisers), government and the general public. Hence, we must collectively combat this ugly trend.” He also observed that another challenge the sector faces is inability to adapt or adopt necessary and useful changes. He reasoned: “Except in very few instances, what we see on some of our major city roads are traditional or conventional boards. We should by now

APCON Registrar, Alhaji Bello Garba Kankarofi have adorned our streets like other developed parts of the world with cutting edge technology driven media solutions commensurate with international standards and best practices via the introduction of lED Electronic Display Technology not minding our limitations which arises from epileptic power supply.” He further said, “Yet another challenge is nonadherence to outdoor advertising laid down regulations and standards which in many instances has led to blatant abuse of the nation’s environment thus degrading the aesthetics value. “What effectiveness should we expect from an unplanned environment with proliferation of billboards, tin plates, banners and other primitive forms of advertising on our roads setbacks and medians. The most worrisome which is also disheartening is non- payment of bills on the part of advertisers and sometimes, practitioners. “How do you divorce payment or settlement of bills from efficient service delivery? For our public and corporate communications to be effective, stakeholders need to discharge their corporate responsibilities diligently. No responsible government will tolerate flagrant abuse of social/financial responsibilities on the part of its citizens especially when the same government is putting all resources together to ensure an enabling environment for all.” Besides taking a critical look at the industry and making commentary and suggestions, he also explained some of the key words used in the dayto-day practice of outdoor advertising. The wide applause the trailed the presentation underscored the fact that Adepoju’s submission really hit the nail on the head and keyed into the overall goal of the forum: the need to drive outdoor advertising business in line with best practices and global standard.

Winners emerge in Sonala Olumhense Syndicated logo contest lUGBENGA Adejoro, a Masters O student of Industrial Design (Graphics option) of the Federal University of Technology, Akure, is the winner of the contest for the logo of the forthcoming Sonala Olumhense Syndicated column. He beat 17 others to win the token US$300 prize. The runner-up is Oluwaseyi Ayoade, a mass communication student of Bowen University, Iwo. Competition Judge, Mr Ogbenyi Egbe, a computer graphics design whiz and Creative Director of Harpostrophe limited, which coordinated the competition,

Adejoro described Adejoro’s design as “well thought-out and balanced.” The artiste’s creative use of the writer’s silhouette, he said, “helps to humanise the column and give it a personality.”

Egbe also praised Ayoade, citing his “simple use of two colours which complement each other.” He added: “The all-seeing eye in the ‘o’ is graphically very appealing as it helps describe the column’s pur-

Ayoade pose.” His prize is US$200. Reacting to his choice as the winner, Adejoro gushed in an email: “I can’t hold my joy, Am sooo happy!!! Short of words for now, kindly permit me to respond prop-

erly later. Thanks so much.” Mr Olumhense, currently based in the United States, on April 28 wrote his last exclusive column for The Guardian newspaper, after 30 years; opting to henceforth syndicate his column, which will be known as Sonala Olumhense Syndicated. On May 11, a contest to choose the logo was thrown open to graphics arts students in Nigeria. Interestingly, the second prize winner, a mass communication student of Bowen University, decided to contest as he had noted that he’s “learning to be a skilled writer and designer.”

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Sports ‘Don’t judge Eagles with Confederations Cup performance’ By Christian Okpara Eagles Coach, SwithUPER Stephen Keshi is satisfied his team’s outing at the on-going Brazil 2013 FIFA Confederations Cup, and pleads with Nigerians to look at the positives of Nigeria’s participation in the competition. Nigeria beat Tahiti 6-1 in their opening game, but lost the second to Uruguay 1-2 before yesterday’s final game against world champions, Spain. But Keshi is not bothered by the position of the team in the competition. Rather, he sees the competition as the opportunity he needed to assess the mental state of some of his players. An associate of the Super Eagles’ former captain, who pleaded anonymity, told The Guardian that the competition has provided Keshi the opportunity to choose the players that would form the bulk of his new team, adding, “that was what the Nations Cup also did for him.” According to the source,

“Keshi believes it is unfair for anybody to judge his team with the Confederations Cup after all that happened before the competition. “Aside the hassles we had getting here, so many of the players pulled out of the competition due to injury. Keshi refused to invite new players because he wanted to see what those left would do. Now, he says he is better informed of the abilities of the players.” Meanwhile, FIFA on Friday asked the Nigeria Football Federation (NFF) to forward to it the final destination points of all its players to it so as to prepare their tickets to their various clubsides incase the team failed to make it to the semi-finals. “We have to make this public so that at the end of the day some of us in the team will not be accused of wishing the team bad in the middle of a tournament. It’s the norm in international tournaments to do that but there was hues and cries about it at AFCON 2013,” revealed Team Secretary, Dayo Enebi Achor.

Referee admits error in Italy versus Brazil game HE referee, who awarded T Italy a goal after first whistling for a penalty in Saturday’s Confederations Cup match against Brazil, has admitted he made a mistake, FIFA said yesterday. Referee Ravshan Irmatov of Uzbekistan blew his whistle to award Italy a penalty. A second later, as play continued, Giorgio Chiellini scored. Irmatov was seen pointing at the penalty spot but then giving a goal.

“He has admitted he made a mistake,” said FIFA spokesman, Pekka Odriozola. Irmatov, a widely respected referee, had been expected to have a chance to referee the Confederations Cup final next Sunday, but is now expected to be sent home along with his assistants, who also made two key errors in Saturday’s game. Brazil won the match 4-2. Chiellini’s goal brought the score to 3-2 to Brazil.

Nigeria’s players during a training session in Fortaleza, Brazil ...yesterday.

Serena repeats apology to Sharapova to avoid Wimbledon feud ORLD number one, begins every interview with Kensington, the exchange Olympic final and again in W Serena Williams repeat- ‘I’m so happy. I’m so lucky’ — has overshadowed the build- this year’s French Open, faces ed her apology to Russia’s it’s so boring. She’s still not up to the women’s tourna- 20-year-old Kristina Maria Sharapova yesterday in a bid to quell the prospect of a Wimbledon feud. The defending women’s champion has clashed with Sharapova following comments made by Williams in a Rolling Stone interview, during which she was quoted taking a swipe at a rival while talking to sister, Venus. Sharapova believed Williams was talking about her, as the article’s author speculated. In the article, Williams said of the unnamed player, “she

Higuain from Real Madrid with an audacious £20m bid for Wayne Rooney - with Arsene Wenger keen on playing Manchester United’s England star in an attacking midfield role behind the Argentina striker. Higuain is the deal Arsenal are now most confident of securing, with Carlo Ancelotti’s long-awaited announcement as manager of the Spanish giants due to come today, leaving the club hopeful that the impasse will be broken as Real Madrid move for their own targets and confirm the player’s departure from the Bernabeu. But it is the prospect of a move for Rooney and the revelation that Arsenal are not put off by his £220,000-aweek wages that represents a

huge cultural shift at the Emirates, where Wenger has previously boasted of the club’s more ‘socialist’ wage structure. Wenger does not see Rooney as a centre-forward but as a link man between midfield and Higuain — the position, which the player himself says he prefers. But with Chelsea also sizing up a bid and United’s new Manager, David Moyes, due to meet Rooney in the next two weeks, the prospect of him joining the north London club remains debatable. United will not want to sell Rooney to Chelsea, who are likely to be their main title rivals, and the player remains hopeful that his meeting with Moyes will provide a fresh start at Old Trafford, with the club acknowledging that he never formally requested a transfer from United.

going to be invited to the cool parties. And, hey, if she wants to be with the guy with a black heart, go for it.” The latter reference has been widely taken to be aimed at Grigor Dimitrov, the Bulgarian player, who is dating Sharapova and had previously been close to Williams. Since then Sharapova has fired back and though the two most celebrated players in women’s tennis apparently discussed the article at Thursday’s WTA Tour party in

ment. And Williams, who opens her title defence against Luxembourg’s Mandy Minella tomorrow, added, “I know she also said that I should definitely focus on the tennis here, and I feel like that is another thing I can definitely take her advice on. “Maybe I wasn’t focused enough in the past on tennis. “I’m definitely going to try to focus on that for the next two weeks.” Third seed Sharapova, who lost to Williams in the

Mladenovic of France, while second seed, Victoria Azarenka, plays Maria Joao Koehler and fourth seed, Agnieszka Radwanska, who lost to Williams in last year’s final at SW19, meets Austrian qualifier, Yvonne Meusburger. Meanwhile, British number one, Laura Robson, vowed to give her all against 10th-seeded Russian, Maria Kirilenko. “I just have to go out there with confidence and play my own game, and just give everything,” she said.

Federer ready to defend Wimbledon title the hard way OGER Federer insists he is of surviving a draw at Wimbledon as the defending champion prepares to launch his bid for a record eighth title at the All England Club. After a relatively barren year, Federer arrives at the grass-court Grand Slam in the unusual position of being seen by many pundits as the least likely of the big four to leave with the title. To make matters worse, the Swiss legend faces a gruelling draw that will leave him needing to beat Rafael Nadal, Andy Murray and Novak Djokovic if he is to pass Pete Sampras as the most decorated All England Club champion. With French Open champion, Nadal, seeded fifth due to his long injury absence, Federer has the unpalatable prospect of taking on the Spaniard in the last eight before a potential semi-final meeting with U.S Open

Rcapable Arsenal want to pair Higuain with Rooney nightmare

RSENAL is willing to folA low up its prospective £22 million signing of Gonzalo

PHOTO: AFP

champion, Murray, and a final showdown with world number one, Djokovic. Federer’s victory on grass at Halle last week was his first ATP Tour title of 2013 and last year’s Wimbledon final win over Murray remains his only Grand Slam crown in his last 13 major appearances. The 31-year-old father of two is clearly entering the twilight of his magnificent career, yet he is convinced he can prove the critics wrong with another triumph at the tournament he regards as a home from home. “It was never supposed to be easy winning Grand Slams. I’m ready for the challenge,” Federer said yesterday. “I like tough draws. I don’t shy away from them. There’s no control over it anyway. That’s up to the draw to decide. “I have a very difficult draw with Rafa being in my quarter. But my focus is on the first round. If you want to win the tournament here,

you anyway have to beat the best. That’s what I’m here for.” Nadal’s low seeding attracted criticism given the Spaniard’s record at Wimbledon, where he has won the title twice, and his current fine form should have seen him placed above fourth seed David Ferrer. But Federer said, “there’s been a lot of talk about where Rafa would be seeded. For me, it’s not even worth the talk because it is what it is. It’s not like he’s unseeded. “He is seeded in the top eight, so you don’t face him in the first round and the quarter-finals are still a long way away.” Federer also named British hope, Murray, as the most likely champion from his three main rivals. Fuelled by a determination to make amends for last year’s Wimbledon final loss to Federer, Murray routed the Swiss to win the gold medal at the London

Olympics and then ended his long wait for a maiden Grand Slam title by defeating Djokovic at the U.S Open. “I think Murray played great last year throughout Wimbledon and the Olympics, and now again at Queen’s,” Federer said. “I would think he has less pressure now and he seems like maybe most natural on this surface. “The other guys, Rafa and Novak, are already Wimbledon champions. But to me Andy sort of stands out a little bit over the others.” For Federer, this year’s championships are also a time for reflection as he looks back to his first Wimbledon title against Mark Philippoussis 10 years ago. Federer, who will open today’s Centre Court programme against Romania’s Victor Hanescu said, “it’s been an unbelievable 10 years. I’m forever grateful for the first Wimbledon title.

THE GUARDIAN, Monday, June 24, 2013

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Turkey 2013 FIFA U-20 World Cup

Flying Eagles aim for Cuba’s scalp IGERIA’S national Under20 team, the Flying Eagles, hope to beat Cuba today to get their Turkey 2013 FIFA World Cup campaign back on track after an opening day 3-2 loss to Portugal. Two-time champions, Portugal, denied the Flying Eagles a great comeback on Friday night, when Bruma scored the winning goal two minutes after skipper Abduljaleel Ajagun’s superb strike had drawn Nigeria level at 2-2. Cuba too were denied at least a point when South Korea came from a goal down to win 2-1, meaning both Nigeria and Cuba go into their second game of the championship in search of their first points in Turkey. The Flying Eagles were on Saturday spurred on by the visit of Director of Finance from the sports ministry, Mustapha Mohammed, who encouraged the team to rise to the occasion against

Cuba. “You fought well against Portugal, but we expect you to win against Cuba and go on to qualify for the next round of the competition,” urged Mohammed, who was accompanied by Bolaji Ojaoba and Abdulkadir Ma’azu. The six-time African champions are expected to ring some changes in midfield and attack as they go for broke this afternoon. Defensive midfielder, Moses Orkuma is expected to join the fray along with Ovbokha Agboyi, as Coach John Obuh reverts to his preference for two holding midfielders. Sporting Braga-bound Chidi Osuchukwu disappointed against Portugal and may likely lose his first-team place. Obuh has admitted Cuba are unknown quantity, but Assistant Coach, Yakubu Maidajin was dispatched to watch their opening game against Cuba and should have some useful informa-

tion about this island-nation. The Flying Eagles are on a daily allowance of $100 and a win bonus of $2,000-a-man compared to Cuba, who are paid a daily allowance of $8 each and do not get a match bonus. Debutants Cuba said it was a dream to qualify for Turkey 2013. “It was our dream to go to Turkey. This is victory for Cuban football. We will try our best to prove ourselves,” said president of Cuba Football Federation, Luis Hernandez. They accounted for Nicaragua, Canada and Costa Rica to reach the semi-finals of the CONCACAF U20 Championship, where they lost 2-0 to U.S.A and finished fourth to qualify for the World Cup. They play a 4-4-2 formation and are physically strong and athletic and in striker, Alejandro Reyes, they have an imposing striker, while Luis Saez is the organiser in midfield.

Portugal’s Ilori tips Nigeria for second round ORTUGAL Under-20 Both Nigeria and Cuba are goals and so too the No.7.” The Sporting Lisbon centre P defender, Tiago Ilori, has yet to record any points. tipped his team and Nigeria “It was a good match against back moved to Portugal from to make it past Group B of the FIFA U20 World Cup in Turkey. Portugal defeated the Flying Eagles 3-2 on Friday night to begin their quest for the world championship on a winning note. Two-time champions Portugal lead Group B with three points after the first round of matches, while South Korea are second also on three points after their 2-1 win over Cuba.

a good team and I hope Portugal and Nigeria go through to the next round of the competition,” said Ilori, whose father is Nigerian. “I see that Nigeria changed their team completely from the one that played against us in Toulon, where I liked the big centre-back (Oluwasemilogo Ajayi). “On Friday, I liked the No.9 (Olanrewaju Kayode), he is very fast; obviously the No.10 (Ajagun), who scored two

London, where he was born, when he was only eight years old. He said he was disappointed not to feature in Friday’s match at the Kadir Has Stadium in Kayseri. Ilori, whose father has closed down his restaurant business to live with his son in Lisbon, also spoke about former Nigeria U20 star, Rabiu Ibrahim, who was with him at the Sporting Lisbon Academy.

MTN Lagos Street Soccer targets more teams By Adeyinka Adedipe HERE are indications that more teams will vie for honours at this year’s MTN Lagos Street soccer as more entries have already been recorded in the Under 15 category. Officials of the championship told The Guardian yesterday that they were expecting teams to also register for the main category and expressed surprise at the number of entries so far recoded in the under 15 category, which is making its debut. Registration for Season six of the yearly championships began two weeks ago across the state. According to the Local Organising Committee (LOC), teams are expected to obtain forms for the tournament at Teslim Balogun Stadium, Surulere. According to the Executive Secretary, Deji Aladegbemi, registration forms for female and U- 15 junior categories cost N2, 000 respectively, while teams willing to take part in the male and corporate cate-

gories will purchase the forms at N5, 000 and N100, 000 respectively. Aladegbemi said the Under15 junior category was part of innovation meant to encourage schools’ participation in the tournament. According to the executive secretary, the innovation became necessary to allow young players to showcase their talent at the championship. “In line with the objectives and commitment to the development of schools sports, we believe it is important to expand the scope of the championship to accommodate students because at 15, it is either they are in school or just about to leave school,” he said. He noted that the initiative is in line with the objective of the state to encourage age group competitions among students. “Education and sports we believe must go together and with the introduction of this category, students will have the opportunity to study, as well as, pursue

their career in football. Our plan is to select the best players at the end of the season that will form a team that can graduate into the State team. Also, we want to encourage students to combine sports with education,” Aladegbemi explained.

Oribamise in action at the just-concluded Youth Olympics Qualifiers in Ismaili, Egypt.

Egypt 2013 Youth Olympics Qualifiers

Oribamise claims bronze, Team Nigeria wins more medals By Olalekan Okusan EENAGE sensation, Tosin T Oribamise, who is seen as part of the future of table tennis in Nigeria, at the weekend won a bronze medal in the girls’ cadet category of the Egypt 2013 Youth Olympics Qualifiers, which ended in Ismaili, Egypt yesterday. Also, Team Nigeria added another bronze to its medals hauls with the pair of Oribamise and Agnes Onoja settling for bronze in the double events of cadet. From the group matches, Oribamise was in top form winning all her matches against her Egyptian counterparts in the group, which ensured that the young Nigerian topped the pool to berth in the last 16. In the round of 16 matches against Egypt’s Sorour Yomla, Oribamise remembered the defeat she suffered in the hands of her opponent during the last encounter between both players at the Tunisian Open early this year. And not ready to concede defeat to the Egyptian again, Oribamise never allowed her opponent to take charge of the game from the start ensuring that she won all her points. All these efforts by the teenager star gave her the first win that ended 11-5 in her

favour. She repeated same style in the second game to win again at 11-8. But the third match took a twist for the Nigerian as she lost 9-11 to give her opponent some breathing space. Aware that her loss to the Egyptian would deny her of any medal, Oribamise fought hard in the fourth match, which went into deuce. But luck was in favour of the Nigerian as she ended the match at 12-10 to qualify for the semi-final stage of the cadet girls’ singles category. However, in the semifinal tie against Chinese Taipei’s Hung Hung, Oribamise succumbed to the Asian 3-0 to settle for a bronze medal. Just like she did in the team event, Oribamise partnered Onoja to claim another bronze for Team Nigeria in the doubles event. To berth in the last eight,

Team Nigeria defeated their Egyptian counterparts, but they met their waterloo in the semi-final encounter against Hong Kong’s duo of Mak Tze Wing and Soo War Yam to be listed among the top three teams in the doubles. In the boys’ cadet singles category, Babafemi Babatunde failed to make it to the last four by losing to Singapore’s Loy Meng Hean Dawren 4-10, 8-10, 11-9, 8-11. At the tournament, Oribamise single-handedly fetched Team Nigeria the bronze medals won by the team. A joyful Oribamise told The Guardian from Egypt yesterday that taking part in the competition alongside players from Asia and Europe has shown that they need more exposure to be at par with their opponents.

Pitch Awards’ nomination process set to begin ATCHMAKERS Consult M International, endorsed and encouraged by the Nigeria Football Federation (NFF) to organise the Nigeria Pitch Awards is set to begin the nomination process for the maiden edition of the football awards billed to take place later this year. According to the

The Director General of National Sports Commission (NSC), Gbenga Elegbeleye (third right), NSC Director (FEAD), Dr. Bolaji Ojo -Oba (second left), CGA Regional Coordinator Africa (third left), Yann Craven and NOC President, Sani Ndanusa (left), during the site inspection of the 2014 Commonwealth Games Village in Glasgow, Scotland…last week.

Matchmakers Consult, the first stage of the process will begin with over a hundred media personalities, exNigeria international players, coaches, football administrators and other key stakeholders, who would receive the nomination packages and make their individual decisions based on their experience, knowledge and conviction. “Their nominations will be returned directly to an Independent Verifying Body, which will collate the results and announce the three nominees with the highest number of nominations in each category. “These nominees will be constantly announced in promos in different media platforms, including Supersport. Football fans will also get the opportunity to vote by SMS. Votes by members of the public will weigh a maximum of 20 per cent,” the organisers said. They added that in addition, three distinguished football personalities would be honoured with the President’s Special Recognition Awards at the awards ceremony.

THE GUARDIAN, Monday, June 24, 2013

SPORTS 109

European Round-Off

Barcelona must be beaming about Neymar, says Scolari UIZ Felipe Scolari said L Barcelona has to be excited about the prospect of Neymar representing their club next term given his showing in the FIFA Confederations Cup following his big-money move from Santos to the Spanish champion. The Brazil forward scored an excellent second-half free kick in his nation’s 4-2 victory over Italy Saturday to help the Selecao to victory and underline his credentials as one of the world’s most exciting young players. His coach was full of praise for the striker, who sealed a big-money move to Camp Nou at the end of May. “Neymar is an idol for all Brazilians,” Scolari said at a press conference. “To Neymar, and to everyone - even to Barcelona, who bought him and are now probably watching him, they’re probably beaming. “ Neymar’s goal against the Azzurri was his 23rd goal in 37 caps, and Scolari was quick to underline the quality he has shown for his country, with the free kick he scored on Saturday but one example. “He had lots of moments of quality, but what decided the game was the free kick,” Scolari said. “He noticed

Mourinho never gave me a chance, claims Rodriguez Rodriguez has criticised JhimESE Jose Mourinho for not giving enough opportunities to shine at Real Madrid, claiming that he deserves a more prominent role. The 20-year-old Spanish winger, who scored twice against the U.S.A in Friday’s FIFA U-20 World Cup clash, is considered one of Los Blancos’ brightest prospects. Despite making 38 appearances and scoring 22 times for the reserves last season, though, Rodriguez did not turn out once for the senior team, and he believes that the Chelsea manager overlooked the club’s youngsters during his threeyear reign at the Bernabeu. “Maybe last year the club thought that they don’t need to have more youth players and Mourinho thought he needed to sign players from outside the club,” Rodriguez told AS. “I think maybe I deserved more opportunities. Anyway this was what Mourinho thought, and he isn’t here now, so let’s what will happen in the future and what the new coach thinks.” Rodriguez went on to say that he thoroughly enjoys the atmosphere at Estadio Santiago Beranbeu and that he hopes to learn from the likes of Cristiano Ronaldo. “(Alberto) Toril, as with (Aitor) Karanka, has been instrumental in my career thanks to his work this season and has taught me a lot training with me every day,” Rodriguez said. “I have a very good relationship with all the first team players Sergio Ramos, Iker Casillas, Alvaro Morata, Xabi Alonso. I’ve spent the most time with Ramos. “I look up to Cristiano Ronaldo in the dressing room. It’s impossible not to. He’s one of best players in the world and I have a lot to learn from him.”

(Gianluigi) Buffon had taken a step to the side and put the ball on the other side. Only players, who have that kind of notion, that we can call genius, are the ones, who make the difference. And he makes the difference. “Maybe you weren’t seeing it before, but the other players were. He’s a team player, and as a team player he is phenomenal. “I hope to see the whole team improving. Neymar has been playing well and he’s adding virtues to the team that we always knew he had, but that he could develop further. “But the team needs to grow as a whole, and in doing so Neymar will grow with us.”

Liverpool in control of Suarez situation, Rodgers insists OACH Brendan Rodgers C has stated that Liverpool is in complete control of the

Suarez

situation regarding Luiz Suarez and it is up to the club to decide if the volatile Uruguayan striker will be sold. In several recent interviews in his homeland, the 26-year-old has repeated a desire to leave the Premier League club and play in Spain, blaming the British media for making his life impossible in England. Liverpool has insisted that the talismanic striker, who was last season’s second top scorer in the Premier League with 23 goals, was not for sale. “It’s quite simple, the club is in complete control of the situation,” Rodgers told the Talksport radio station on

Saturday when asked about Suarez, who is currently on international duty at the Confederations Cup in Brazil. “I will always listen to players. I always work closely with players and always listen to their point of view but the biggest word is with the club,” Rodgers added. “We’re in a situation where we’ve got a player, who we don’t want to lose. We’re trying to build something here and he’s a very important part of that and because of the type of player he is, he will always give his best.” Suarez, who signed from Ajax Amsterdam in January 2011, received a 10-match English domestic ban for biting Chelsea’s Branislav Ivanovic towards the end of last season.

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THE GUARDIAN, Monday, June 24, 2013

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THE GUARDIAN, Monday, June 6, 2011 111

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TheGuardian Conscience, Nurtured by Truth

By Abdulrazaq O Hamzat

ANY youths of this generation know M little or nothing about Lokoja city of today. They may also not know the role

this beautiful city played in the history and developments of beautiful Nigeria nor are they aware of the abundant historical relics she boasts of today, especially those that existed before and during the colonial era. Lokoja is a historical ancient city of freedom fighters, educators, emancipators and liberators. Lokoja is located in the heart of Nigeria, in the present North-Central. She was capital of the British northern protectorate and, by extension, remained a convenient administrative town for the British colonial government after the amalgamation of the northern and southern protectorates into one country called Nigeria in 1914. Lokoja is the first settlement of the British in Nigeria, In fact, the name Nigeria was coined by Flora Shaw in Lokoja, a British journalist who was later to marry Fredrick Lugard, and as it was said, she coined the name Nigeria while, enraptured, she gazed at the River that stretched before her. After the amalgamation of Southern and Northern protectorates in 1914, the new Governor General, Lord Lugard ruled Nigeria from Lokoja. Today, Lokoja is the capital of Kogi State, a state carved out of Kwara and Benue State in 1991. According to European historical records, Lokoja is said to have been founded by William Balfour Baikie, although in reality, there had been indigenous people who had been living in the area for thousands of years before the arrival of the Europeans. Atabor Julius wrote that the magnificent River Niger and River Benue meet in Lokoja, forming the famous confluence from which Kogi derives its official sobriquet (The confluence state). Kogi is contiguous to nine states in Nigeria and is essentially a transit route to 16 other states including the Federal Capital, Abuja. Lokoja on the other hand also straddles some strategic roads to, at least, five geopolitical zones out of the six such zones in Nigeria. History has it that, there are many reasons why Lokoja is a special place in Nigerian history. First, Lokoja was the first administrative and commercial capital of Nigeria when Lord Lugard became the Governor General of Nigeria after Mungo Park, Richard and John Landers explored the River Niger in 1830’s. Being of such strategic importance, opened up Lokoja to all Nigerians, thus allowing all and sundry to draw from the fountain of the Niger with insatiable quest for knowledge and discovery. Second, Lokoja is said to be a prominent centre for slave trade in the 18th and 19th centuries as a result of her location; it later served as a centre for freedom. The late Bishop Samuel Ajayi Crowther spearheaded anti-slavery crusade in Nigeria and erected the Iron of liberty at a spot where slaves were set free in Lokoja. At the same spot, he established the first primary school in Northern Nigeria for all Nigerians who wanted to seek freedom from ignorance. The third and also significant place of Lokoja was the crucial role she served as a practice ground for distance education by many Northern Nigerian Emirs in the 1800’s. During the colonial era, several

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Lokoja is located in the heart of Nigeria, in the present NorthCentral. She was capital of the British northern protectorate and, by extension, remained a convenient administrative town for the British colonial government after the amalgamation of the northern and southern protectorates into one country called Nigeria in 1914.

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Lokoja’s importance in Nigerian history

Kogi State Governor, Captain Idris Wada

Northern feudal lords who vehemently opposed colonial rule and domination of their territories by the European imperialists were banished to Lokoja as punishment by the colonial overlords. What the colonialists did not realise was that, what the Emirs lost at the bend they gained at the roundabout. The Emirs used distance education method to keep in constant touch with their subjects. Consequently they were continually a step ahead of the colonialists who never ceased to be amazed at how informed and intelligent the people they sought to colonise were. Notable among the deposed Emirs who perfected the traditional form of distance learning included the Late

Emir of Bida, Mallam Mohammed Bashir, deposed in 1901, the late Emir of Zaria, Mallam Aliyu Dansidi and the late Emir of Kano, Mallam Aliyu Abdullahi deposed in 1903. These forerunners of open and distance learning in Nigeria have their graves in Lokoja and should constitute an interesting tourist attraction. Fourth, as if to rekindle memories, the first course writing and instructional material development of the National Open University of Nigeria meeting took place in Lokoja in 2002. This means that, the protagonists of the National Open University of Nigeria must have realised that, by so doing, they would be bringing open and distance learning to its

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Monday, June 24, 2013

What the colonialists did not realise was that, what the Emirs lost at the bend they gained at the roundabout. The Emirs used distance education method to keep in constant touch with their subjects. Consequently they were continually a step ahead of the colonialists who never ceased to be amazed at how informed and intelligent the people they sought to colonise were.

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home and its origin in Nigeria. As Prof. Jegede was to say, there in Lokoja, they defied the usual intense heat at the time of the year to write 183 courses and adapt 235 others in 54 programmes carefully chosen to kick start the re-establishment of the National Open University of Nigeria in Lagos. (Prof. Olugbemiro Jegede) Besides all these, historical relics such as the Lugard House, the first primary school in northern Nigeria, the first cantonment church, the first hospital in northern Nigeria, iron of liberty, graveyards of the deposed emirs and Europeans commentaries are major tourism potentials which attract people from all works of life to the Lokoja. Till date, relations of the European workers of the United African Trading Company (UTC), soldiers as well as missionaries buried in the European cemeteries in Lokoja literally troop to the state to see the tombs of their departed great grandparents and pay tribute to them. The cemeteries which are located in three different areas within Lokoja township hold six to eight hundred graves of Africans and Europeans. These are said to constitute the largest contraption of European graveyard in Nigeria. With these historical references, Lokoja is no doubt a city of historical importance located strategically. According to Ad Ali, Lokoja rose to fame as a result of her location at the confluence of the two great waterways in West Africa, the Niger and Benue Rivers. These natural waterways served as the major means of communication and transportation especially for the riverside dwellers in the colonial days. Lokoja also served as a commercial rendezvous during the east west kola nut trade in West Africa. Lokoja was distribution centre for agricultural products, chiefly cotton. Expectedly, she had food processing industries as well. With the arrival of the Europeans, the city rose to international fame when she served as the first British settlement in Nigeria and as a major inland port for European companies. The town grew to become a cosmopolitan settlement peopled mostly by different ethnic groups from the Middle Belt and the far North. This cosmopolitan nature has remained to date, but not with its own ripple effects, different ethnic groups, for example, notably the Oworo, Nupe, Igbirra, Hausa, Igala, are laying claim to the ownership of the town. These claims and counterclaims have posed a dilemma and a clog in the wheel of the town’s development since Nigeria’s independence. Although, Lokoja is a major historical trading city, unfortunately, her national stature has diminished. Here is a city which was supposed to accommodate a steel industry, but only the Ajaokuta steel mill, which is to be served by the abundant Iron Ore deposits, has found its presence in the city and, more recently, the Dangote cement factory. The steel revolution may still happen as the Nigerian government has recently rekindled interest in bringing the steel mill there and revive some of its other industries which are no longer in production. It is hoped the government will walk its talk and ignite the promised steel industry revolution in the very near future for the city to thrive once again.