Mon 16 sept 2013 by The Guardian Newspaper

TheGuardian Conscience, Nurtured by Truth

Monday, September 16, 2013

Vol. 30, No. 12,681

www.ngrguardiannews.com

N150

18 soldiers get death, jail terms over Boko Haram From Isa Abdulsalami Ahovi, Jos OR their alleged links to FdiersBoko Haram, some solare to face death penalty while others will go to jail. Those affected are one lieutenant, one warrant officer and 16 others. The General Court Martial has been trying them since July 1, this year. They were accused of offences ranging from communicating with Boko Haram members, cowardly behaviour, murder, to manslaughter. They were being tried by the Three Armoured Division as the case fell within its Area of Responsibility (AOR). A military source said that those soldiers who were sentenced to death actually deserved the sentence because “for serving soldiers who swore to defend the territorial integrity of Nigeria and Nigerians therein to be found conniving with the enemies of Nigeria (Boko Haram) is a treasonable offence which attracts capital punishment. “The Boko Haram members do not hide their sinister agenda. They want to destabilise the country. Everybody knows that. For soldiers to now secretly work with them at the expense of the country is treasonable. And it is so treated.” Contacted for comments, the Deputy Director, Army Public Relations of the Division, Col. Texas Chukwu, told The Guardian yesterday that he was preparing a formal speech in this regard, and that this might be made public today. At the inauguration of the Court Martial on July 1, 2013, where all the 18 accused military personnel were arraigned, the General Officer Commanding (GOC) 3 Armoured Division, Jos, Maj.Gen. Ebiobowei Bonna Awala, remarked that the accused soldiers facing the court martial were from the Three Armoured Division, Joint Task Force (JTF), otherwise known as Operation Restore Order from Maiduguri CONTINUED ON PAGE 6

Governor Olusegun Mimiko (middle), his wife, Olukemi (left) and Feyi, son of the late former governor of Ondo State, Dr Segun Agagu, during their condolence visit to the bereaved family in Lagos… yesterday. PHOTO: OSENI YUSUF

Hardliners impede PDP talks From Azimazi Momoh Jimoh (Abuja), Seye Olumide (Lagos) and John Akubo (Dutse)

EACE seemed still farP fetched in the crisis-ridden People’s Democratic Party (PDP) at the weekend as the feuding groups stuck to their positions. The situation has left President Goodluck Jonathan with some limitations in his moves to end the imbroglio. Many of the party leaders and governors loyal to the President have made up their minds and advised him against a number of demands made by the aggrieved camp, particularly on the issue of a second term for him as well as the removal of Alhaji Bamanga Tukur as the party’s national chairman.

• APC berates Presidency over police action against Amaechi • ‘Rivers governor dictatorial, intolerant of dissenting views’ • Baraje under fire for issuing ultimatum to Jonathan • Ruling party’s crisis will be over soon, says Lamido • Gomna quits as treasurer of splinter group Similarly, the group of seven aggrieved governors are insisting on the return of the party’s structures to Governor Murtala Nyako of Adamawa State and the unconditional lifting of the suspension of Rivers State Governor Rotimi Amaechi. And as the crisis lingers, the All Progressives Congress (APC) has blamed the Presidency for last week’s blockade of the Rivers State Government House. In a statement issued in La-

gos yesterday by its National Publicity Secretary, Alhaji Lai Mohammed, APC also said the police could not have had the courage to act the way they did in blocking Amaechi and his guests from his residence if they were not assured of support from higher authorities. The party warned that giving presidential backing to the police – or any national institution at all - to commit impunity and violate the nation’s Constitution is the

fastest means to destroy such institutions and erode public confidence in them. However, Amaechi has been accused of hypocrisy and dictatorship in his handling of PDP in the state. A source said yesterday: “In 2009, some prominent PDP members, including some former commissioners and local council chairmen, and ministers of God, in protest at Amaechi’s attempt to destroy the PDP, set up a parallel PDP secretariat at No 23,

Ondo declares seven-day mourning for Agagu - Page 5

Ohaeto Street, D-Line, Port Harcourt. “Amaechi arrested and charged them to court for illegal assemblage and cultism. The C of O of the property owned by the late Chief Joshua Anachor Oriji, pioneer commissioner for education and a signatory to the creation of Rivers State, was revoked. “They were all remanded in prison custody and languished there for two weeks before being released. Among the 17 who suffered this impunity and the dictatorial action of Amaechi were: • Hon. Lolo Ibieneye, a former commissioner under Odili and PDP campaign manager during 2007 general elections that brought Celestine Omehia to power; • Hon. Achineke Wonodi, former Mayor, Port Harcourt CONTINUED ON PAGE 6

THE GUARDIAN, Monday, September 16, 2013

News JTF smashes international oil theft syndicate From Willie Etim, Yenagoa CARTEL of six suspects conniving with a Beninoise (name withheld) who specializes in sourcing for illegally distilled petroleum products in Nigeria’s Niger Delta area have been nabbed by operatives of 3 Battalion of Joint Task Force (Operation Pulo Shield) during a patrol of Opodibobo creek near Escravos in Warri South West Local Council of Delta State. The cartel was busted during one of the series of anti-oiltheft operations recently carried out by the battalion. The Joint Media Coordinator of the JTF command station in Yenagoa, Bayelsa State, Lt Col. Oyema Ugochukwu, in a statement said apart from arresting members of the syndicate, captured items include one big Cotonou boat containing 11 large plastic reservoirs and a speedboat. Ugochukwu said, “The suspects are currently undergoing preliminary investigations to uncover their links and other collaborators in the illicit trade.”

Aare Musulumi of Yorubaland, Abdulazeez Arisekola Alao (left); Oyo State Deputy Governor, Moses Adeyemo, and Alaafin of Oyo, Oba Lamidi Adeyemi III at the second Oranmiyan Festival at the monarch’s palace in Oyo… at the weekend. PHOTO:

Protest against Senate transfer of minimum wage begins tomorrow From Collins Olayinka, Abuja activities may be disSas OCIAL rupted tomorrow, Tuesday Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) begin a twoday protest against transfer of minimum wage from the exclusive to concurrent legislative list. A statement signed by the President of TUC, Bobboi Kaigama and General Secretary, Musa Lawal, yesterday said arrangements for the protest is in top gear. The statement reads in part: “Mobilisation to protest the decentralization of National Minimum Wage slated for September, 17 and 18, 2013 by the Trade Union Congress of Nigeria and its sister body, Nigeria Labour Congress is in top gear. The labour centres have given directive to their over 60 affiliates throughout the country to be battle-ready against the obnoxious move. We are surprised that in one breathe; the Senate proposed decentralization of minimum wage against the wish of the people of Nigeria, eroding the earning power of vulnerable workers while they legislated life pension for the leadership of the Senate.” The protest is scheduled for Abuja tomorrow and Wednesday. However, there was no indication on the movement of the protesters within the seat of government. The TUC declared that the very essence of the minimum wage is to ensure that employees, particularly the unorganized and unskilled are not exploited by their employers to the extent that their pay become so low that it creates a

poor working masses. It added that minimum wage should not be erroneously mistaken for a living wage; as such it guarantees mere bare existence for workers in the formal sector – public and private. It also influences wages in the informal

sector, thus minimum wage, as approved to salary increase, affects all. It explained: “To underscore its importance, the National Assembly has legislated on the minimum wage from N125 in 1981 to N5,500 in 2001. And in 2011, the current mini-

mum wage of N18,000 was signed. Alas, the governors suddenly realized the minimum wage matter should be concurrent rather than exclusive. Who are they serving? The motive however, is not farfetched: decentralize labour and turn the workers into

political thugs for the purpose of self-serving politicians. We will never allow this because even if the states legislate for state workers (concurrent) who legislates for the private sector? This is why we must mobilize to kick against the Senate’s uninformed position.

Constitution review, PIB, others top agenda as Reps resume From Terhemba Daka, Abuja EY issues, including the task of completing the constitution review process, the Petroleum Industries Bill (PIB), consideration of committee reports and strengthening of the oversight functions of the legislature will form the crux of business in the House of Representatives when the parliament resumes on Tuesday

from its annual recess. Chairman, House Committee on Media and Public Affairs, Zakari Mohammed, who gave the indication during a press conference in Abuja on Friday, said the Chamber will also look at other contending issues arising from the protracted Academic Staff Union of Universities (ASUU) strike as the House hit the ground running in addressing

the other myriad of challenges requiring legislative attention. But the House spokesman who refused to be categorical, said the House may also “consider on merit,” the issue of bickering among some members of the House of the Representatives over the alleged plot to impeach President Goodluck Jonathan, as well as the crisis rocking the Peoples Democratic Party (PDP).

Deputy Minority Leader, Suleiman Abdulrahman Kawu, last week dismissed alleged plans by the lawmakers to initiate impeachment move against Jonathan when parliament resumes, adding that, “impeachment of the president is not on our agenda as a parliament and as such it is a figment of anybody’s imagination to suggest anything like that.”

Ondo declares seven-day mourning for Agagu From Niyi Bello, Akure NDO State Governor, Dr. Olusegun Mimiko, has declared seven-day of mourning from today (Monday) following the death on Friday of the immediate past governor of the state, Dr. Olusegun Agagu. Mimiko made this declaration as Senator Danjuma Goje lamented the death of Agagu, saying “It came to me as a shock, a very rude shock,” in a statement by his media aide, Ahmed Yaro. Between the years 2000 and 2002, Alhaji Danjuma Goje was Minister of State for Power and Steel, while Dr. Olusegun Agagu was the substantive minister in the same ministry. The following year,

• Death came as a shock, says Goje

the two men went on to become governors of their respective states: Agagu in Ondo, Goje in Gombe. “Dr. Agagu was an absolute gentleman, quite brilliant, and very patriotic. When we ran the Power and Steel Ministry together, you could see his passion for the country. He was very dedicated and committed. It must have been these qualities the people of Ondo State saw in him, and for which they elected him governor in 2003,” Goje stated. Mimiko gave the seven-day mourning order yesterday during a condolence visit to the family of the deceased in his Ikoyi, Lagos residence. His

wife, Olukemi, members of the national and state assemblies and state executive council from the southern senatorial district and top government officials accompanied him. The younger brother to the late former governor and his chief of staff, Mr. Femi Agagu and members of the family received the governor. Mimiko described the late Agagu as a colossus of intellectual and political capabilities, who achieved so much greatness in his lifetime. He assured that the deceased would be accorded a state burial. In his response, the eldest

son of the late Dr. Agagu, Mr. Feyi Agagu, thanked the governor and his entourage for the visit, particularly for Mimiko’s kind words. He described his late father as an epitome of integrity and selfless service to humanity. Prayer was later offered for the family of the deceased and the state. Goje urged the Olusegun Mimiko administration to immortalize Agagu by naming landmark and enduring institutions after him in the state. Eminent Nigerians that condoled with the family yesterday included General T.Y Danjuma, Chief Johnson Fasawe, Kingsley Kuku, Funsho Kupolokun and Dr. Olu Agunloye and his wife.

Catholic bishops to mediate in ASUU, govt face-off From Muyiwa Adeyemi (Ado-Ekiti) and Joseph Wantu (Makurdi) ATHOLIC bishops in Nigeria have offered to mediate in the current face-off between the striking Academic Staff Union of Universities (ASUU) and the Federal Government with a view to bring the deadlock to an end. The clerics in a communiqué signed by Most Rev. Ignatius Ayau Kaigama and Most Rev. William Avenya, President and Secretary respectively of Catholic Bishops Conference of Nigeria (CBCN), after their second plenary meeting held at the Double K. Resort GRA, Oturkpo, Benue State, expressed worry over the prolonged strike saying the action had dealt a big blow on the education sector.

Imo to invite EFCC, others over defaulting From Charles Ogugbuaje, Owerri OVERNOR Rochas Okorocha says the Imo State Government would formally invite the Economic and Financial Crimes Commission (EFCC), the State Security Service (SSS) and the Police over contracts for which about N7 billion has been collected without meaningful job done. Okorocha disclosed at the weekend in Owerri at a meeting with the contractors handling projects in the state, regretting that government was worried that the contractors could not show sufficient amount of work done to justify the monies they have so far collected. He said the listed security agencies would be invited to arrest the defaulting contractors. However, most of the contractors at the meeting complained that the state government owes them, thereby slowing down the pace of work on their sites.

THE GUARDIAN, Monday, September 16, 2013

6 | NEWS

Ikimi denounces Keyamo’s claims on Delta Senate seat

Jonathan, Obama meet next week in New York From Laolu Akande, New York RESIDENT Goodluck P Jonathan and United States (U.S.) President, Barack Obama, will meet next week in New York apparently to repair the diplomatic friction arising from the U.S.’ snub of Nigeria during Obama’s visit to Africa in June. Nevertheless, both leaders will also be addressing the annual United Nations General Assembly next Tuesday, UN and Nigerian official sources disclosed over the weekend. The Jonathan-Obama meeting, authoritative sources noted, would demonstrate that the U.S.-Nigeria diplomatic relationship has not been ruptured by Obama’s snub. Besides, a schedule of this year’s UN General Assembly debate shows that President Jonathan will as well be speaking early and on the opening day of the debate, which is when the U.S. President, as host, also traditionally speaks.

18 soldiers get death, jail terms over Boko Haram CONTINUED FROM PAGE 1 and Special Task Force (STF), known as Operation Safe Haven, from Plateau State. He said that the soldiers had been duly investigated for the various offences they were alleged to have committed. According to Awala, the General Court Martial is one of those instruments conferred on him by virtue of Armed Forces Act Chapter A20 Laws of the Federation of Nigeria to address problems of this nature. He pointed out that discipline is the foundation on which the military career rests, adding that discipline and loyalty are two essential requirements no person who wants to succeed in professional soldiering can afford to lack. “It is the duty of superiors to observe, correct and instantly deal with negligence or any misconduct on the part of subordinates. When there is any breach, it is expected that appropriate disciplinary measure must be taken by commanders to forestall future occurrences. This way, the Nigerian Army can continue to play its constitutional role and sustain its accolade as the pride of the nation. “It is with a heavy heart though, that I have to convene this General Court Martial, being the first within four months of my assumption of duty as the GOC of this Division. However, I must state that if this division is witnessing this court martial, it is because I want to sustain high level of professionalism required to confront the mounting security challenges in the division’s area of responsibility.” The GOC had admonished all parties to the Court Martial to discharge their duties expeditiously and with a degree of commitment that would enable the accused persons know their fate in good time. As the Court Martial finished with the first batch of offenders, it was learnt that fresh offenders were being arraigned before the court.

From Alemma-Ozioruva Aliu, Benin City HE Acting National Vice T Chairman (South-South) of All Progressives Congress

Shehu of Borno, Alhaji Abubakar Ibn Umar El-Kanemi (left); Sultan of Sokoto, Alhaji Muhammad Saad Abubakar III; Vice President Mohammed Namadi Sambo and Borno State Governor, Kashim Shettima during the 2013 flag off of Nigeria pilgrims flight to Saudi Arabia in Maiduguri International Airport, Borno State on Saturday. PHOTO: NAN

(APC), Chief Tom Ikimi, yesterday declared as untrue, claims by human right lawyer, Festus Keyamo that he has been adopted through a consensus by the legacy parties that make up the APC as the Senatorial candidate of election into the Delta Central senatorial district that is yet to be declared vacant. In a statement in Benin City yesterday, Ikimi said the reports on the adoption of Keyamo were not correct. “For the avoidance of doubt and the benefit of Nigerians, the said reports and publications are neither true nor authorised. They should therefore, be disregarded completely”

‘Baraje under fire for issuing ultimatum to Jonathan’ CONTINUED FROM PAGE 1 City Local Council; • Pastor Nancy Wamkwo, commissioner under Odili and a former Oyingbo Local Council chairman; • Pastor Francis Ebenezer, PDP leader, Ogu-bolo; • Mrs. Lali Green, Women PDP leader, Bonny Local Council; • Chief Hon. Ejo Ngowah Ejoh, former Chairman, Eleme Local Council; and • Prince Obiandu Ohochukwu, former State PDP chairman. Already, the group of governors loyal to the President and a large number of party leaders loyal to Tukur are not disposed to the idea of yielding to the demands of the aggrieved state helmsmen and others who they felt had gone too far in pushing their position. But the most difficult of all the demands is Tukur’s removal. The President, although desirous of a peaceful and quick resolution of the crisis, has however asked Amaechi to withdraw his court cases before he (Jonathan) could wade into the matter of lifting the suspension. The talks have already been endangered by the seeming hard and uncompromising positions of some members of the splinter group, New PDP, who have lined up a number of court cases against Tukur’s leadership. Similarly, Tukur himself, apart from instituting some court cases, seemed to have developed an uncompromising position. The tough condition of asking Jonathan not to contest the 2015 presidential election has in a way adversely affected the peace talks as many party leaders and even governors loyal to him are said to be very angry about this demand. For example, a PDP chieftain in Ogun State, Buruji Kashamu, yesterday lambasted the party’s former acting National Chairman, Alhaji Abubakar Kawu Baraje, for “having the effrontery to give President Jonathan an ultimatum over the ongoing peace talks.”

Baraje was quoted in the media on Sunday as saying that his group would stop further negotiations with the President if all their requests were not met by yesterday (Sunday). In a statement, Kashamu said: “It is insulting and ridiculous that Baraje, a former teacher who should be an epitome of morality and good behaviour, could have the audacity to give an ultimatum to the embodiment of our sovereignty and President of the Federal Republic of Nigeria over some contrived party issues. “His tenor and language on a day the peace talks are meant to resume show that these people are not ready for peace. They have some hidden agenda. And it is high time they are told the truth. Nigerians are wiser. They can see through all their theatrics and attempts to stop the President from exercising his fundamental right to vote and be voted for. They are only hiding behind some smokescreen. “From his outbursts, it is obvious that these people are frustrated and desperate for power. They should come out of their cloak and tell Nigerians their real intentions instead of masquerading as champions of democratic ideals when they are the exact opposite. “It is regrettable that Baraje could take on an institution as the Presidency, issuing threats and ultimatum. It shows how low our democracy has sunk. It is nonsensical and highly provocative that they now seek to rubbish the Presidency, just like they have done to the judiciary time and again.” Kashamu assured that the party has “foot soldiers” across the country that can take on “these rebels.” He said although the President was right to have initiated talks with the dissidents, it was frustrating that the initiative was being abused, adding: “It has created room for some of these people to disrespect the institution of the Presidency and the symbol of our democracy.” He urged the plaintiffs in the

contempt of court proceedings against Baraje and others “to pursue the matter to a logical conclusion so as to serve as a deterrent to others and restore discipline and sanity into the party.” But Jigawa State Governor Sule Lamido has asserted that the PDP’s crisis would soon end. Lamido, who spoke in Dutse at the weekend, said: “The resilience of the PDP, the leadership within the party, their track record of working and serving Nigeria, their commitment to Nigeria, their passion for Nigeria, will make them come together again. “PDP is a big party. If it’s the party that saved Nigeria from what happened between 1983 and 1998 and so because it is so big, it is bound to have some crises here and there. It is only normal and natural.” “No one must jubilate over somebody’s downfall or misfortune. More so, because he is something bigger and therefore there is so much envy in you and you are wishing everything evil to come to it. So for me, those who think the PDP’s implosion will be a kind of carcass upon which they can feed on, they are mistaken because I don’t think they are credible alternative, so their jubilation may be short-lived. “People pick out something which tends to narrow the debate to a personality and it

is not fair. President Goodluck Jonathan is a Nigeria citizen and under the constitution, he has the right to run. But what we are saying is that the process, which is going to produce him, must be as credible and transparent as it was in 2011. In 2011, even the aspirants came out openly and declared for him. At the convention, it was very transparent… At the convention, it was very transparent, very fair. “Now, what we are seeing when you want to get reelected, is sowing discordant tunes, intimidating, lies, coercing, using EFCC. These things cannot work because at the end of the day, even after picking the ticket through this self-help and if you destroy your very infantry, who will be there for you?” He stressed that Tukur’s removal would be the beginning of addressing the wrongs in the party. Lamido said that the NewPDP was never preconceived, but a response to bad policies and actions in the party before and during the convention. He added: “What we did at the PDP convention, we knew it was against injustice, manipulation and high-handedness which are on rampage, so we opted out. We knew there would be dire consequences, but

whatever may the consequences on our personal lives with that of our children, their future, we would stand by our action until the right is done. So, we wouldn’t mind if we pay the price because it is part of our historical formation, it is part of our history to stand against injustice.” Meanwhile, the National Treasurer of the PDP splinter group, Tanko Isiaku Gomna, has resigned his position. Announcing this last night in Abuja just before the peace meeting, Gomna said his decision was informed by the pressing need to achieve speedy reconciliation in the party. The Baraje group had named some persons, including Gomna, as members of its National Working Committee. They are Alhaji Abubakar Kawu Baraje (Chairman), Dr. Sam Sam Jaja (Deputy National Chairman), Prince Olagunsoye Oyinlola (National Secretary) and Hon. Maode Umar Hiliya (Deputy National Secretary). Others are Mr. Timi Frank (National Youth Leader), Hon. Binta Koje, National Woman Leader, Malam Nasir Issa (National Organising Secretary), Chief Eze Chukwuemeka Eze (National Publicity Secretary), Hon. Aliyu Wadada (National Financial Secretary) and Malam Tanko Isiaku Gomna (National treasurer).

Tension in Lafia as Fulani man kills Eggon youth From Msugh Ityokura, Lafia HERE is tension in Lafia, T the Nasarawa State capital, following the killing of over 50 people in a renewed ethnic clash between the Eggon majority and Alago in Obi Local Council. There has also been unusual movement of heavily armed soldiers in a convoy of over eight luxurious buses in the state capital. It could not be confirmed whether their presence in the town is a result of the latest killings. Lafia is now being flooded by residents of Obi, especial-

ly women and children. They were sighted in various locations in the state capital having fled their place of abode for fear of reprisal attack by Ombatse. The tension was escalated in the evening of yesterday in Tudun Gwandara area of Lafia when residents were seen packing their belongings to flee into safety. The Kasuwan Shinge was hurriedly closed down when people started running helter skelter following news of a planned attack on the area. The Guardian gathered that the tension heightened

when a Fulani mercenary allegedly killed an Eggon youth in broad day light after a heated argument at a drinking joint. The Ombatse militia is said to be waxing stronger as manifested in the kind of sophisticated weapons being used by the group. It was gathered that the continued upheavals in the state were orchestrated by the Eggon to affirm their control of the state come 2015, having not been opportune to govern the state since it’s creation about 17 years ago. .

NEWS

THE GUARDIAN, Monday, September 16, 2013

PDP’s division, not a surprise, by Masari From John Akubo, Dutse OR former Speaker of the FAlhaji House of Representatives, Aminu Bello Masari the current crises in the ruling Peoples’ Democratic Party, did not come as a surprise. The former speaker who is currently the interim deputy national chairman North of the All Progressives Congress (APC) spoke in Ringim, Jigawa State yesterday at a rally of the APC to flag off campaign for its candidate for the House of Assembly by-election for the Ringim Constituency seat left vacant by the death of the former Deputy Speaker. According to him, “If you can recall as far back as 2008/2009 we formed a group known as PDP reform group. We wanted the PDP to reform because that time it had control over 27 states and over 500 local governments. “We said PDP as a ruling party needed the reform so that other parties could take a cue but what happened then? We predicted then that unless there was reform in the PDP there was going to be implosion and we have been proved right.”

JAMB, group laud UNIBEN on admission infrastructure From Alemma-Ozioruva Aliu, Benin City

HE Joint Admissions and Matriculation Board (JAMB), Esan Students Association Worldwide and the Nigerian Institute of Surveyors over the weekend commended the management headed by the ViceChancellor of the University of Benin (UNIBEN), Prof. Osayuki Oshodin, on the school’s early conclusion of the 2013/2014 admission exercise and the developmental strides the school has attained. A letter signed by the Registrar/Chief Executive of JAMB, Prof. Dibu Ojerinde, addressed to the ViceChancellor noted that the early conclusion of admission exercise by the university goes a long way to demonstrate that university is on its path to glory.

Former Speaker of the House of Representatives, Bello Masari and Farouk Adamu Aliyu at the APC rally in Ringim for the run off election for Ringim Constituency in the Jigawa State House of Assembly … yesterday. PHOTO: JOHN AKUBO

NCAA vows to shut unhealthy airlines By Wole Shadare

Why they are not well patronised, by experts

ORRIED by the state of W some airlines, the Nigerian Civil Aviation

response to call by stakeholders on the need to recertify Nigerian airlines with a view to know their states following allegations that some owe their workers for more than six months. Many of them are equally indebted to banks, aviation agencies fuel marketers running into several billions of naira. Akinkuotu added that recertification is an on-going thing for the NCAA, adding, “We will need to keep an eye on the airlines. We plan to shut down airlines that are not healthy. We are interacting with airlines to know that bills are paid. We are not

Authority (NCAA) has indicated its plans to shut down carriers that it adjudged to be unhealthy. The Director-General of the aviation regulatory body, Captain Folayele Akinkuotu made the disclosure at a media interaction at the weekend in Lagos. He said already, the NCAA is interacting with airlines to know that bills are paid promptly, coupled with other factors that shows whether airlines are healthy or not. Akinkuotu’s call could be a

papering anything. Recertification is an ongoing thing. We will need to keep an eye on the airlines. ’Recertification is about complying with the laws”. The NCAA equally highlighted the difficulties airline operators go through; stressing that profit margin for airliners globally is very small. According to him, “When you see an aircraft that is about to take off from Lagos to Abuja for instance and the cost per ticket is put at N20, 000 or N25, 000. You begin to calculate huge amount of about N3 million for the airline for that single trip. But we forget that the airline will

pay for fuel, pay bills to the agencies, pay for catering, pay salaries, pay for offices and at the end of the day, they are left with virtually nothing”. Also worrisome is the harsh operating environment for them and lack of good policy that puts them at great disadvantage against their foreign counterparts especially in the area of multiple designations that is willingly given to foreign airlines even they do not show much interest. The situation is attributed to the reason the lifespan of many Nigerian carriers do not exceed ten years.

African Court grants request by Amnesty International, others in corruption suit By Bertram Nwannekanma MNESTY International and A two other rights groups have secured the permission of the African Court on Human and Peoples’ Rights sitting in Arusha, Tanzania, to join in a suit filed against corruption by the SocioEconomic Rights and Accountability Project (SERAP). In the suit, SERAP is asking the court to “consider the effects of corruption on the poverty level, and whether poverty violates specific human rights under the African Charter on Human and Peoples’ Rights. SERAP had in a request for advisory opinion urged the court to “assess the legal and human rights consequences of poverty, including whether increased poverty breaches the right to equality and nondiscrimination, right of the people to socio-economic development, and their right to natural wealth and resources.”

In the request, SERAP sought a determination of whether the question has been framed in terms of law and raises problem of human rights law as established by the African Charter. “The request by its very nature is susceptible of a reply based on law; indeed it is scarcely susceptible of a reply otherwise than on the basis of law. As such, the request is not affected by the provisions of article 34(6) of the African Court Protocol, requiring declaration by states as a condition of access to the court,” it stated. But Amnesty International, the Centre for Human Rights of the University of Pretoria, South Africa and the Human Rights Implementation Centre of the Bristol University, United Kingdom, it jointly filed the amicus brief dated August 1, 2013 asking to be joined in the suit. In their submission before the court, the groups said, “We submit that on the proper

interpretation of article 4(1) of the Protocol of the Court and article 68 of the Rules of the Court, the Court has jurisdiction to provide advisory opinion upon request of African NGOs such as SERAP.” According to the groups, “The Court has subject matter jurisdiction under article 4. The court has the power to issue advisory opinion on any legal matter relating to the African Charter on Human and Peoples’ Rights or any relevant human rights instruments. This particular request by SERAP involves an interpretation of Article 4 itself. The only exception to the advisory opinion jurisdiction of the court is if the African Commission is examining the issue. We confirm that this particular request is not related to any matter pending before the African Commission.” “We submit that SERAP is an organisation located in Africa, more specifically, in Lagos Nigeria.

It is also an organisation with a predominantly African management structure and membership. SERAP thematic focus on transparency and accountability relates to Africa. Therefore, SERAP qualifies as “African” in terms of article

4(1). The use of the word ‘organisation’ in the protocol does not lend itself to an interpretation that excludes NGOs such as SERAP. Thus, SERAP is a non-governmental organisation in terms of article 4,” the groups also argued.

CAN cautions El-Rufai over utterances From Nkechi Onyedika, Abuja PPARENTLY reacting to his A recent comment in the media, the Christian Association of Nigeria (CAN) has urged the former Minister of the Federal Capital Territory (FCT), Mallam Ahmed Nasir El-Rufai to desist from making unguarded utterances against Christian leaders. This is contained in a statement jointly signed by Head of TEKAN/ECWA Block in CAN, Rev. (Dr.) Emmanuel Dziggau and the National Director

(Research, Planning & Strategy) of CAN, Elder Sunday Oibe in response to a report in one of the national dailies where El Rufai allegedly referred to the President of CAN, Pastor Ayo Oritsejafor as “a propaganda chief of the PDP who lacks credibility”. According to CAN leaders, “We can no longer fold our hands and allow Christian leaders to be abused by ElRufai. We can no longer take it; enough is enough. Anytime he abuses Christian leaders and Jesus Christ, we Christians will let him know that he has many forces to contend with”.

President, Aviation Round Table (ART), Captain Dele Ore regretted that the policies in the aviation industry were not enduring. Meanwhile, operators and experts have said Nigerian airlines are poorly patronised because of the erosion of confidence people have for air safety. Speaking at the Chartered Institute of Logistics and Transport with theme, “Airport Remodelling in Nigeria, Challenges and Prospect of Aerotropolis”, a top official of Lufthansa German Airlines, Adewale Sanni stated that the situation was worse in 2005 and 2006 when airplanes were falling from the sky. Sanni said during the dark period, many wealthy Nigerians going to Abuja or Port Harcourt chose to fly international airlines first to Europe before connecting to their original destinations. Sanni stated that it would be difficult for Nigerian carriers to be profitable because of the point-topoint operations they do. He cited Arik, explaining that the airline won’t be an option for people going beyond New York, adding that global airline alliance are the way to go in international business. Participants noted that the idea of airport refurbishment was laudable but noted that what was needed was a brand new airport for Lagos. They noted that no amount of refurbishment would help the facility, owing to long years of degradation, just as they carpeted the lack of other means of transportation to the areas; a situation they highlighted defeats the idea of aeropolis project being touted by the government.

THE GUARDIAN, Monday, September 16, 2013

WorldReport Swedish king marks 40 years on throne ING Carl XVI Gustaf of Sweden yesterday celebrated 40 years as monarch in a true Scandinavian egalitarian style, inviting everyone to a dance at the royal palace. “I invite everybody to a music and dance party in the inner courtyard of the royal palace,” the 67-year-old said, according to national Swedish radio. “And everybody is welcome. Bring your dancing shoes. Cheers!” The king showed the way by asking his spouse for the past 37 years, German-born Queen Silvia, up for a dance on a huge plastic floor laid out on the cobbled courtyard.

Yemeni court jails Al Qaeda militants for plotting to kill president HREE Al-Qaeda militants T were yesterday sentenced by a Yemeni court to between one and seven years after convicting them of plotting to assassinate President Abdrabuh Mansur Hadi and the American ambassador. But the Sanaa court specialising in terrorism cases freed a fourth defendant held on similar charges based on time already served in prison, an AFP correspondent reported. The defendants were accused of conspiring to carry out a suicide attack against Hadi using a vehicle laden with explosives, according to the charges read out by presiding judge Hilal Mahfal. But the suicide bomber who was to launch the attack was instead assigned to a different operation by an Al-Qaeda leader.

Social media debate erupts in France over jeweller who killed thief

TEPHAN Turk, a French jewSteenage eller who shot dead a robber last week, has

sparked an intense national debate in France, with a Facebook page supporting him reportedly attracting more than 1.4 million “likes”. Agency report stated that Turk, 67, shot an 18-year-old in the back on Wednesday as he and another robber were fleeing on a scooter with gems stolen from the jeweller’s shop in the French Riviera city of Nice. And now, his actions have divided France, with supporters arguing for the right to self-defence amid a general climate of insecurity, while critics condemn the use of violence and vigilantism. A Facebook page created anonymously several days ago in support of Turk – who on Friday was charged with murder – had garnered 1.46 million likes by yesterday afternoon. “He did what the justice system isn’t able to do! These days, if you want something done right, do it yourself,” user Fanny Duvergt wrote. But on Twitter, where debate over the issue is also raging, doubts have emerged about the huge swell of Facebook support, with some saying many of the “likes” may have been bought.

Obama reveals exchanging letters with Rouhani, warns on Iran’s nuclear bomb programme NITED States Barack U Obama for the first time Tehran, Syria laud accord on chemical weapons yesterday revealed an exchange of letters with Iran’s new President Hassan Rouhani. However, Obama warned that his unwillingness to strike Syria over recent controversial chemical attack on opposition-controlled area should not devalue U.S. threats of force to thwart an Iranian nuclear bomb. In an interview aired yesterday, the U.S. leader publicly confirmed the outreach to Rouhani and said he believed the Syrian chemical arms drama showed that diplomacy could work if backed by threats of military action. A report by Agence France Presse (AFP) indicated that the exchange of letters added to the notion that the election of Rouhani offers a new opening to test the possibility of a diplomatic way out of the showdown over Tehran’s nuclear programme. Meanwhile, a U.S.-Russian plan to remove Syria’s chemical weapons is a “victory” that averts war, a Syrian minister said yesterday, just as Washington warned that the threat of force “remains real”. In the same vein, Iran yesterday hailed the decision of its ally Syria to join the chemical weapons convention, a day after the United Nations formally accepted its request to sign up, Fars news agency reported. In another development, UN leaders have “agonised” over a report that Secretary General Ban Ki-moon will present today on chemical weapons in Syria that could renew pressure on President Bashar al-Assad. Ban has already revealed that he expects the report by a UN investigation team to the UN Security Council to give “overwhelming” confirmation that arms were used in an attack near Damascus on August 21 in which hundreds died.

Ban Ki-moon to present key probe report today

Obama But the UN team is not allowed to say who carried out the attack, which the West blames on Assad. While diplomats said the detail would give a clear pointer to who is responsible, opponents and supporters of Assad – who pleads innocence – will be looking for evidence to back their case. The Russia-U.S. accord on

Rouhani the dismantling of Syria’s chemical stockpile, according to agency report, will also weigh heavily on Security Council consultations expected to be called today. However, Syrian Minister of State for National Reconciliation, Ali Haidar, told Russian news agency, Ria Novosti that the agreement between the U.S. and Russia

on one hand, helps the Syrians to emerge from the crisis and on the other, “it has allowed for averting war against Syria... It’s a victory for Syria that was achieved thanks to our Russian friends.” His remarks came as U.S. Secretary of State John Kerry met Israeli Prime Minister Benjamin Netanyahu to brief

him on the plan to eradicate Syria’s chemical weapons. But Kerry came out of the talks with a word of warning for Damascus. “The threat of force remains, the threat is real,” he said at a joint news conference in Jerusalem with Netanyahu. Washington is seeking to bolster international support for the agreement inked in Geneva on Saturday, which demands action from Damascus within days. Meanwhile, UN humanitarian chief Valerie Amos urged Tehran at the end of a visit yesterday to use its influence with ally Syria to allow greater aid access to the country. “I asked the foreign minister (Mohammad Javad Zarif) to use Iran’s influence with the (Syrian) government to continue to press for greater access for humanitarian organisations,” she told a news conference. “I did not specify areas because it is important that humanitarian organisations are allowed to go where people are in the greatest need.” But some analysts have questioned whether Obama’s decision to hold off on military action against Syria will lead the Islamic Republic’s leadership to conclude U.S. threats against Tehran are empty. In fact, Obama’s top aides

Catalonia to press ahead with referendum on autonomy from Spain region of Catalonia SwithPANISH has vowed to press ahead plans to hold a self-determination referendum, a day after Spain’s Prime Minister Mariano Rajoy rejected a request to allow the wealthy region to vote on its political future. In a letter released at the weekend, Rajoy told the head of Catalonia’s regional government, Artur Mas, that “the ties that bind us cannot be undone without huge economic, political and social

costs.” “And, of course, I also want to pass on my government’s strong conviction that we need to work together to strengthen these ties and move away from confrontation.” The letter was released just three days after hundreds of thousands of Catalans massed in a vast human chain stretching hundreds of kilometres along the Mediterranean coast to demand independence from Spain on

Catalonia’s national day. It was a reply to a letter sent by Mas to Rajoy in July requesting the “consultation of the Catalan people, as soon as possible” on its political future. Mas, who avoids using the word “independence”, wants a referendum next year but has said that if Spain blocks that, the next regional election in 2016 could serve as a plebiscite on self-determination instead. The government of Catalonia welcomed Rajoy’s offer for dialogue but said Mas was hop-

ing for a “reply in the style of (David) Cameron” in a reference to Britain’s decision to allow a referendum on Scottish independence to take place next year. “We will take this commitment and will explore it but we will not be naive nor will we accept that as a consequence of talks this process undergo unnecessary delays,” the spokesman for the government of Catalonia, Francesc Homs, said yesterday.

Pakistan’s Taliban set conditions for peace talks S seven more soldiers and police, including a general died in insurgent attacks yesterday, the Pakistani Taliban came out to announce preconditions for talks on ending an insurgency that has killed thousands in the country. Spokesman for the Tehreeke-Taliban Pakistan (TTP), Shahidullah Shahid, had earlier welcomed the new government’s move to begin peace talks, but said yesterday it must show its sincerity. “First of all, troops in the entire tribal area should go back to barracks and then our prisoners should be released,” Shahid told Agence France Presse (AFP). “The Pakistan government must take steps which can

develop an atmosphere of trust and can remove the doubts and suspicion. We cannot move forward unless the government accepts these two demands.” He spoke after the Taliban’s shura or decision-making council held three days of talks about the government’s offer of dialogue. The spokesman said Shura members from across the country took part in the meeting and stressed the need for confidence-building measures. Shahid did not give a figure for the number of jailed insurgents and did not totally rule out peace talks if the preconditions are not met. But he added: “The govern-

ment began a war against us and the government has to announce the ceasefire if it is really sincere in peace talks.” Politicians last week gave their backing to Prime Minister Nawaz Sharif’s calls to begin talks with the Taliban. Representatives from the main coalition and opposition parties, who attended an All Parties Conference, asked the government to initiate the dialogue. Army and intelligence chiefs also attended the conference, as did representatives of secular parties that made up the previous government and had supported military operations against the rebels. Previous peace deals with the Taliban have quickly broken

down and been sharply criticised for allowing the extremists time to regroup before fresh attacks. yesterday seven security personnel including two senior military officers died in four separate attacks. The officers were visiting troop posts in the Upper Dir district of the northwestern province of Khyber Pakhtunkhwa, along the Afghan border, when their vehicle hit a roadside bomb. “Maj.-Gen Sanaullah and LtCol. Touseef embraced Shahadat (martyrdom) this morning. They were returning after visiting troops posts on Pak-Afghan Border,” the military said in a statement. It said the bomb also killed a soldier.

Shahid claimed responsibility for the bomb. “No ceasefire has taken place. How we can stop our attacks when government forces are conducting operations against us?” he said. Two other roadside bomb attacks in Miranshah, the main town in North Waziristan tribal district bordering Afghanistan, killed two soldiers yesterday and wounded four others, security officials said. In the neighbouring district of Bannu, Taliban militants ambushed a convoy of tribal police early yesterday, killing two and wounding four others, security officials said. Sanaullah was the general officer commanding in the Swat valley. The provincial

THE GUARDIAN, Monday, September 16, 2013

PHOTONEWS

Director Dangote Cement, Mr. Knut Vlmovoen (left); President, Dangote Group, Alhaji Aliko Dangote, Alhaji Umar Tanko Abdullahi winner of 2nd Distributors of the Year award; and Vice President of Dangote Group, Alhaji Sanni Dangote during the 2013 Awards Ceremony of Dangote Cement Distributors in Lagos

Bride’s father, Adesina Philips (left); groom’s parents, Lara and Chief Kola Adedeji; couple, Yewande and Olusegun Adesina Adedeji during their wedding ceremony in Lagos at the weekend. PHOTO: OSENI YUSUF

Vice President, National Postgraduate Medical College of Nigeria, Dr. Rasheed Ajani Arogundade (left); College President, Prof. Victor Wakwe and College Registrar, Prof. Oluwole Ayoola demonstrating on manikins and simulators during the 31st pre-convocation media briefing at the college premises in Lagos. PHOTO: OSENI YUSUF

Special Adviser to the President on Social Development and Special Duties, Mrs. Sarah Pane (left); former Minister of Labour, Culture and Attorney General, Prince Adetokunbo Kayode; and Medical Doctor/Nuclear Chemist, Dr. Jhalil Tafawa Balewa during a National Summit on “Social Development : A Catalyst For Socio-Economic Transformation” in Abuja PHOTO: LADIDI LUCY ELUKPO

Chief Executive Officer, CFA Leverage, Mr Chukwuemeka Fred Agbata (left); Chairman, Worldwide View Oilfield Services Limited, Mr. Akin Aruwajoye; Managing Director/Chief Executive Officer, Purpose, Power and Lifestyle Design ( PPLD), Mr. Tunde Makun; and Director, Entrepreneurship Development Centre, Pan Atlantic University Mr. Peter Bamkole, during the official dedication of PPLD in Lagos

Incoming President, Rotary Club of Lagos, Palmgrove Estate, Ramesh Biswal (left); President, Venugopal Jajoo; Past President, N.G. Patel; and Charter President, Dr. Deep Mirani during the media briefing on free eye screening in Lagos PHOTO: OSENI YUSUF

Manager, Contact and Advertising, NTA-Star Television Network Limited, Mr. Zhu Zi Yu (left); Managing Director/CEO, CoreMedia Services Limited, Mr. Jide Adediran; General Manager, NTA-Star Television Network Limited, Mr. Liu Liang and Executive Director, Finance and Administration, CoreMedia Services Limited, Mr. Akeem Yusuf, during the signing of channel distribution agreement between CoreMedia Services Limited and NTA-Star Television Network Limited, to signal the birth of Core Television Station on StarTimes Platform, held at StarTimes Office in Lagos

Facilities/Administrative Manager, Cadbury Nigeria Plc, Ignatius Nmakwe (left); company Medical Advisor, Dr. Segun Dosunmu; Head, Corporate and Government Affairs (West Africa), Bala Yesufu; Environmental Health and Safety Manager, Food Drinks, Bolaji Oyewo; Managing Director, Nigeria Social Insurance Trust Fund (NSITF), Alhaji Umar Munir Abubakar, and Director General, Nigeria Employers Consultative Association (NECA), Segun Oshinowo during the presentation of an ambulance by NSITF and NECA to Cadbury Nigeria Plc, winner of the Occupational Safety Award, in Lagos

THE GUARDIAN, Monday, September 16, 2013

Politics Agagu: Exit of unusual politician From Niyi Bello, Akure LUSEGUN Kokumo Agagu, former Ondo O State governor and leader of the Peoples Democratic Party (PDP) in the state, who died suddenly last Friday, would be remembered for his kind of politics. If there was any player in the Nigerian political field that didn’t follow the rules of the game, at least the cut-throat, selfish and ruthless approach to power acquisition, that person was Agagu. Where many had taken to heart the brutal principle of the Italian philosopher, Nicolo Machiavelli and Robert Greene’s postulation of the laws of power, Agagu, a trained geologist and lecturer at the premier University of Ibadan, played a kind of politics different from his colleagues’. Unlike what is unfolding in the national political scene where politicians are devouring each other in preparations for the 2015 elections, his kind of politics was based on the principle of “live and let live.” The focus of his administration was spreading the goods to the highest number of beneficiaries. For instance, due to paucity of funds, he decided in the early days of his administration, to surface-dressed many roads in the state instead of asphalt overlaying, so as to reach the highest number of communities. In his peculiar brand of politics, Agagu, after acquiring political authority of Ondo State following the tsunami that swept away the Alliance for Democracy (AD), became a statesman who took the interest of the masses far above those of politicians, much to the chagrin of his colleagues in the ruling party. He disregarded the 15th law of Greene’s “48 Laws of Power,” which stipulates total crushing of the opposition. Rather, he allowed his successor, Dr. Olusegun Mimiko, as a candidate then, a run of the political field, all to his (Agagu’s) detriment, politically. When he was about to declare his intention to re-contest the 2007 elections, Agagu called a meeting of his cabinet, which then had Mimiko as the Secretary to the State Government (SSG), to intimate members of his desire. Quite unlike a consummate student of power and against Greene’s third law of concealment of intention, he had, while bringing the likes of Mimiko on board his gubernatorial team in 2003, pledged to do only one term. At the meeting, those who were nursing governorship ambition, including his deputy, Omolade Oluwateru and finance commissioner, Tayo Alasoadura, declared that with a change of heart from Agagu, they would drop their ambitions and support him to realise his dream. All eyes were then focused on Mimiko, whose intention to rule the state had been on the front burner since his former AD was in office. But rather than toe the line of Oluwateru and Alasoadura, Mimiko told the gathering that he would have to consult his followers for their consent before he could make any pronouncement. The reply was clear enough: Mimiko, already oiling a massive state-wide campaign machinery, was going to attempt to wrest power from his boss. And the parley was abruptly brought to an end. A follow-up meeting of Agagu’s inner caucus members advised the governor to sack his SSG (Mimiko) but the governor declined, saying he could not constitute himself as an impediment to anybody’s ambition even if it was going to scuttle his own. Mimiko was to move up the ladder from his SSG position to the Minister of Housing and Urban Development where he consolidated and strengthened his support base with greater inputs from the Abuja seat of power. There, he reportedly drew more friends to himself, particularly from die-hard politicians, who saw in Agagu a governor that was “too academic and tight-fisted” in his approach to governance and politics without

sparing some influence for colleagues. And presiding over a cabinet that was full of members clandestinely hobnobbing with the opposition, Agagu would not have any advice from his very close aides to relieve the identified culprits of their positions, preferring to crack jokes with the matter. At one of the meetings of his party leaders, he reportedly entered the room, mouthing the slogan of the opposition party, to tell his colleagues that he knew that most of them had crossed over to the other side. The governor, however, realised his vulnerability when his photograph with an injured ankle, taken at his living room at the Government House, was splashed on the front page of a local tabloid belonging to the opposition. Still, he refused to sack anyone. SIGNS that Agagu was not “a good politician” were discernible to analysts moments after he was inaugurated on May 29, 2003. He had declared that he was going to run a compact administration where all frivolities in the act of governance, including indulgence of fellow politicians, would be avoided. He thanked his colleagues for contributing to his emergence as the state’s helmsman, but told them that rather than wait for patronage, they should see their efforts as part of contributions to national development. Agagu also announced that unlike when appointments into public offices, especially the civil and teaching services were based on the caliber of politician(s) an applicant knew, absorption into government offices and positions would be based on merits. Expectedly, the pronouncement drew the ire of other party men, as he followed with action, reducing the number of ministries he inherited from the AD administration from 17 to 11, the number of Special Advisers from 20 to four and Special Assistants reduced substantially. He also introduced a seemingly foolproof contract-award system, with prices of procurement for government needs verified by a Price Monitoring Office and a ceiling put on the percentage of profits to be made by contractors handling government projects. This was prior to Federal Government’s establishment of its Due Process Office headed by Dr. Oby Ezekwesili. As an academic scientist with a bias for pragmatic approach and laboratory analysis of matters, Agagu spent his first six months in office, preparing a document titled, “Road Map To Progress,” a blueprint for the state’s development, which, he said was to “chart a definite course of action that we should follow in achieving the status of our dream state for Ondo.” Politicians in the house, who had been deprived of influence, finally declared a war on the new administration following Agagu’s appointments of mostly non-politician experts, particularly as Special Advisers, to man specialised sectors of governance; his introduction of transparency, including monthly public declaration of what came to the coffers of the state from all revenue sources; and the setting up of a Fiscal Allocation Committee (FAC), made up of representatives of organised Labour, traditional rulers and other stakeholders, to determine how the funds were disbursed on monthly basis. Within six months of his ascendancy, Agagu’s popularity, which was soaring above 62 percent vote-win during the 2003 polls, recorded an all-time low. Attempts by his image-handlers to describe him as “the repairer of Ondo State” earned him more opprobrium as the image of an old illiterate village bicycle repairer, who was trying to make ends meet while his colleagues were successful entrepreneurs and traders. Agagu’s fall stemmed from his failure to realise that his fellow politicians were necessary evil he had to accommodate. And rather than assuage their feelings by awarding the contracts to build a six-classroom block in each of the 1,230 public primary schools in the state

Agagu to them, the governor announced that a new and cheaper technology that “will continuously cool the interior of the classrooms through a pre-fabricated wire-mesh” would be employed. For more than a year, the new efforts were allegedly frustrated, thereby delaying commencement of the projects. At the end of the day, the government had to succumb to the normal old brick and mortar technology with the politicians as the major contractors, and only about two-thirds of the schools were completed and delivered at the end of his administration in 2009. It was common then to hear politicians, many from Agagu’s PDP, condemning the governor for “tarring roads instead of tarring the stomachs,” a direct reference to his administration’s policy of preventing people from feeding fat on the commonwealth to the detriment of overall development of the state and its people. By the time Agagu was three years in office, principal officers of his political party, such as the State Chairman, Alhaji Alli Olanusi, now Ondo State deputy governor and the state secretary, Boluwaji Kunlere, a senator representing the Southern senatorial district on the platform of the ruling Labour Party (LP), as well as several big shots, had parted ways with him. In a curious twist of fate, it was Kunlere, who, as the candidate of the LP, defeated Agagu in his Southern stronghold, hereby denying the former governor another opportunity to come back into political limelight. DESPITE the opposition from within, Agagu trudged on and at the end of his administration in 2009, he had opened hitherto inaccessible areas of the state like Irele and Agagba-Obon axis and particularly the oil-rich coastal areas where he completed the about N30 billion Igbokoda-Ayetoro and the Aboto-Olokola roads that had the longest bridge in the state. He constructed health facilities in every political wards of the state; reclaimed a vast area of Ilaje from the sea through a N7 billion Adagbakuja project; established the Ondo State University of Science and Technology (OSUSTECH) in Okitipupa; constructed and dualised several roads within Akure, the state capital and other urban centres and above all,

introduced a fiscal discipline that moved capital expenditure of the state budget from 30 percent to about 70 percent. He conceptualised the multi-billion dollar Olokola mega-project, which was to have a Free Trade Zone, a natural deep seaport, fertilizer and Liquefied Natural Gas (LNG) plants, petroleum refineries and many other service industries. He brought in both the Federal and Ogun State Governments, the latter having mutual boundaries where the projects were sited. As the Minister of Power and Steel, Agagu was instrumental to the location of the multi-billion dollar Omotosho Power Plant in Ore, Odigbo local council, which was to service both Olokola and the Industrial Park that his administration planned for the area. Many people would give him credit for resolving the oil-well disputes with Delta State in favour of Ondo, thus raising the state’s receipt in the monthly allocation from Oil Mineral Derivation Fund. At the twilight of his administration, Agagu commenced several dream contracts, including the N14 billion water reticulation projects from the Owena Multi-Purpose Dam that was to provide potable water to people of the Central senatorial district; the N4 billion construction of the Akure Township Stadium; the new road linking Irele with Okitipupa, which reduced the time of travel by about 80 percent, and the N5 billion buildings at OSUSTECH. For these projects and many others, his administration paid 50 percent mobilisation fees and was still able to leave N38 billion in the coffers of the state at the time of his hurried exit from the Government House via an Appeal Court judgment that declared Mimiko, his arch-rival as the winner of the April 2007 governorship election. While many people saw Agagu’s loss of authority as a fallout of his estrangement with his fellow politicians, others linked defects in his politics as being responsible. The former governor was accused of nepotism, which saw members of his immediate cycle of friends and those of his younger brother, Femi, his Chief of Staff (COS), wielding tremendous power, and misuse of the same, to the extent that they created enemies for the administration. A commissioner in his cabinet drove the monarch of his community into exile, without Agagu halting the umbrage. The Oba was only reinstated when the Mimiko administration came on board. While kudos went to the governor for his frugality and simple ways of life, which reflected in his person; many claimed that a lot of underhand dealings were done by some elements close to the governor and on whose shoulders he placed these responsibilities of transparence and openness. A case in point was an aide saddled with the responsibility of contracts control who, months after leaving office, opened a massive hotel outlet in Akure. Agagu, a man of sartorial elegance and deep sense of humour, who could be seen drinking exotic wine and swinging to old music, particularly biripo, the traditional lyrics of his native Ikale, detested the unbridled acquisition of wealth by today’s politicians. The Guardian once asked him why he didn’t have properties in Lagos, the commercial centre of Nigeria or Abuja, the political capital, despite having been in position to do so over the years, his terse reply was “what do I need them for?” Pointing to a glazed picture of a young lady hung on his Bodija, Ibadan living room, Agagu said: “That is my youngest daughter, the baby of the house. She is now the head of the department of a multi-national company in charge of Africa and the Middle East. Why should I engage in mad acquisition of wealth when God, in His infinite mercies, has provided for my needs?” His death at 65, last Friday, barely 24 hours after he was named among the 44-member Council of Elders to resolve the crises plaguing the PDP at the national level, will surely dictate a new direction for the politics of not only Ondo State, but also the entire Southwest geopolitical zone of the country.

THE GUARDIAN, Monday, September 16, 2013

TheMetroSection ‘Stop illegal business or ...’

Briefs Edo community launches N100m Education Fund

• Police take over investigation of seized ships, suspects By Odita Sunday HE Lagos State Police Command has taken over the investigation of arrested merchant ships MV ARTI and MV PURITY and its crew members arrested by the Nigerian Navy Beecroft on July 15, 2013. The suspects were handed over to the police at the weekend at the Nigerian Navy Ship Beecroft (NNS BEECROFT) Apapa, Lagos by the Commanding Officer of NNS BEECROFT, Commodore Chris Ezekobe.. Investigations carried out by Naval intelligence revealed that MT PURITY and MT ARTI had wanted to illegally bunker petroleum products in the sea when they were caught. The Nigerian Naval Ship Andoni arrested MV ARTI on July 15, 2013 with a nine -crew member. The ship was arrested close to MT PURITY, which was under the arrest of ANDONI at the time. According to Ezekobe: “The vessel was suspected to have attempted some illegal business transactions with MT PURITY for which she was arrested. Further investigation revealed that certain documentation and IMO compliances were not met by the vessel.” “We have carried out preliminary investigation and we have forwarded the result of our findings to the Naval Headquarters. Sequel to the directives we received from the naval headquar-

From Alemma -Ozioruva Aliu, Benin City HE leadership of the Uneme National Development Association (UNDA) over the weekend at a meeting with traditional rulers and leaders of Uneme communities said it was set to launch a N100 million Education Fund to boost the education capacities of the people just as it urged all its members occupying various political positions across the country to make education of all Unemes, their priority. President of the association, Dayo Alabi in an address at the meeting of Uneme leaders, said; “A common phenomenon of all the Uneme communities is that they are all rural and underdeveloped in terms of all social, economic and educational infrastructure until recent times when things were being given some attention by the present government of the state. ” The launch would have Edo State Governor Adams Oshiomhole as Chief Guest of Honour while the Grand Royal Father of the Day would be the Royal Majesty, Omo N’Oba N’ Edo Uku Akpolokpolor, Oba Erediauwa, the Oba of Benin and Chief Abu Inu Umoro as chief Launcher.

The suspects ters, the crew would be released to the police today for further investigation and prosecution while the vessel would still remain with us until we receive further directives from the naval

Briefs Lagos begins another batch of limb corrective surgery By Seye Olumide HE Lagos State Commissioner for Health, Dr. Jide Idris, has said that 4000 patients have already been operated out of the 36,000 patients that applied and were screened for the corrective surgeries under its state Free Limb Deformity Corrective Surgery Programme since its inception in 2004. Speaking on Wednesday at the Lagos State University Teaching Hospital (LASUTH), the coordinator for the Programme, Dr. Dolapo Fasawe noted that about 150 people had also been registered for screening for another free surgical procedures. According to her, “The programme was conceived in 2004 because the state government realised that there were a lot of people on the streets with various forms of correctable limb deformities who had either resigned to fate. We decided to start this programme to help correct some of these deformities so that these children and young adults could be useful in the society. Head of the surgical team and a Consultant Orthopedic Surgeon, Dr. Adebola Olusegun Laketu noted that there are various forms of limb deformities patients usually present with the commonest been blank disease, deformities from trauma, polio and some congenital deformities.

JDPC walks for peace on Saturday USTICE Development and Peace Committee (JDPC), an organ and Jtember a social ministry of the Catholic Church, will on Saturday, Sep21, 2013, at 9.00a.m.hold a peace walk from St. Dominic's Catholic Church, Yaba to Ilaje - Bariga and back, to mark the International Peace Day, which is celebrated on September 21 every year. The 2013 theme is: Education for Peace while the Sub-Theme by JDPC St. Dominics: Lord, make us instruments of Your Peace through Faith. A statement by a member of the Organising Committee, Jacqueline Ezeanyim Esq., said a thanksgiving service would hold on Sunday, September 22, at 11.00a.m. at St. Dominic’s Church, Yaba. “Our goal is to reach out to 200,000 persons within and outside our country, Nigeria. So why don't you join us in the walk for peace,” the statement read.

Varsity lauds Imota monarch on 20th anniversary HE Visitor to Caleb University, Imota, Lagos State, Dr. Ola AdeboT gun, has described the Ranodu of Imota, Oba Ajibade Bakare Agoro, as a quintessential monarch whose reign has brought an immense peace and socio-economic development to Imota, in particular, and Lagos State. Dr. Adebogun, who stated this in a statement on the 63rd birthday and 20th anniversary of Ranodu’s coronation, particularly felicitated with members of the Ranodu’s royal household and all sons and daughters of Imota on the twin occasions. The educationist expressed joy in the transformation that Imota had witnessed in the last 20years of Oba Agoro’s enthronement, stressing that Ranodu was indeed a visionary and charismatic monarch whose exemplary leadership style was worthy of emulation. “The Caleb University family shares in the Ranodu’s joy and we are happy to identify with his landmark achievements. We will continue to partner with his royal majesty for the development of the town and Nigeria in general.”

headquarters to determine the agency that would be handed the vessel,” he said. The naval officer said the vessel, which would remain in their base, would be

made accessible for the police to carry out their investigation. He warned persons and organizations carrying out illegal businesses at sea to desist from it or face the wrath of the law.

SSS graduates 385 cadets • ‘We have decimated Boko Haram sect’, says DG By Odita Sunday HE Director General of the State Security Service (SSS), Mr. Ita Ekpeyong, said the SSS, Army and other security agencies have succeeded in silencing the Boko Haram sect in North Eastern Nigeria. Ekpeyong spoke at the passing out parade and commissioning of 385 members of the Cadet Officers Basic Course 27 at the SSS Academy at Ojo, Lagos at the weekend. He said the SSS has placed high premium on human capacity building following insurgency in the North East. According to him: “We are aware of the dynamics of global insecurity, and how it has manifested in the forms of terrorism and insurgency in our country. And to cope with these ever changing threats, the Service has placed the highest premium on human capacity development and requisite technology acquisition. Accordingly, we are highly indebted to the President who has done more than any other Government to assist the Service to acquire modern technology/equipment in order to enhance our capacity. We can no longer use analogue methods, equipment and personnel to solve digital age problems. “Consequently, in order to keep abreast with the ever changing security challenges, our operatives must be well equipped, their knowledge, competences and skills constantly updated and enhanced, in order to enable them to be a step ahead of the adversaries. During the last three years, we have reinvented and re-engineered our strategies for human resource development for optimum performance and productivity. This implies that training and re-training had to be regular, state-of-the-art

Ekpeyong equipment had to be acquired, the welfare and health of staff must be given priority; while proper housing and office accommodation are vigorously being implemented.” He added: “The modest achievements so far made by the Service in the fight against terrorism could be attributed to the huge investment in human capacity development. Consequently, we have been in the forefront in the war against terrorism. This is because of the Service’s vast knowledge on terrorist’s network, foresightedness and robust operations based on trained manpower and latest technical resources. The Service with other security agencies, particularly the Nigerian Army (NA) under the leadership of the Chief of Army Staff, Onyeabor Ihejirika, has been able to degrade the terrorist infrastructure in the country. “We can confidently say that we have decimated the terrorists’ top and middle level leadership, its foot soldiers thereby dislodging its centre of gravity. There is no doubt that our strategies have invariably affected the cohesion of the group as well as the chain of command, to the level that the group, for now does not possess the capacity to direct and launch simultaneous attacks on several cities/targets

in Nigeria as had been the situation in the past two years. We intend to build and consolidate on our successes in this war against the terrorists’ in order to create a conducive environment for democracy and development.” The Minister of Education, Mr. Nyesom Wike, represented President Goodluck Jonathan at the event. He told the guests at the passing out parade and commissioning of 385 officers that the Federal government has invested hugely in tackling insecurity in the country. “To tackle insecurity in Nigeria, Federal Government, in 2011 provided N237 million, in 2012 N300 million and this year N800million. According to him, it was also due to the Federal Government’s determination to tackle insecurity and terrorism in particular, that the government enacted the Anti-terrorism law. His words: “In order to tackle terrorism, federal government enacted the Anti-terrorism law and came up with equipment to fight terrorism.” Wike told the cadet officers that they were expected to be dexterous in handling modern technological equipment and have good human relations. “All the equipment bought to tackle terrorism will go to waste if you don’t how to handle the equipment. And people should be able to trust you with information. An informant should not be punished. Also remember that a man is not guilty until he is proven to be guilty. Carry your duty with all fairness and uphold the rule of law. The era of using brutality to elicit confessions should stop! Innocent people have died through that way,” he said.

Cadbury Nig. Plc. receives Occupational Safety Award N recognition of its workIbury place safety practices, CadNigeria Plc. (CNP) recently received an award from the Nigeria Social Insurance Trust Fund (NSITF) and Nigeria Employer’s Consultative Association (NECA). The presentation ceremony took place in Lagos, Nigeria. CNP and 24 other companies were appraised on various safety and prevention of occupational diseases. Present at the awards ceremony were representatives from Nigeria Labour Congress (NLC), Federal Ministry of Labour and Productivity, International Labour Organization (ILO) and other industry stakeholders. Head, Corporate and Government Affairs (West Africa), Bala Yesufu, who represented Managing Director of CNP, gave vote of thanks on behalf of the awardees.

Oyitabu, 93, for burial HE death has occurred of T Chief Lazarus Okoye Oyitabu (Ogbuefi Ugomwanne) of Enuogbu Abatete in Idemili North Anambra State at the age of 93. He will be buried on Friday, September 27, after a funeral Mass at Most Holy Name of Mary Catholic Church, Ogbu Abatete at noon. A thanksgiving Mass holds on Sunday, September 29, at Most Holy Name of Mary Catholic Church, Ogbu Abatete He is survived by Elder C. C. Oyitabu, Okey Oyitabu and Soita Oyitabu among others.

Oyitabu

TheGuardian

12 | THE GUARDIAN, Monday, September 16, 2013

Conscience Nurtured by Truth

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

Editorial Reviving the textile mills

NDICATIONS from Arewa Textiles Plc, an iconic textile manufacturing company, ILabour, about the impending reopening of its Kaduna plant is cheering news for and a symbolic ray of hope for a comatose textile industry that once had a huge capacity for employment generation in the country. The proposed retooling of the mills by Arewa – and perhaps others in the works – in the textile manufacturing sector’s long journey to rediscovery, therefore, deserves the greatest support of all stakeholders. For a country that has over the years raised a mammoth army of the unemployed, this planned resurgence is most welcome. Significantly too, the investors plan to settle workers’ outstanding benefits along with the revival of the company before the company’s golden jubilee next year. A massive garment production is part of the strategic plan which may translate to more jobs for a greater number of workers. The good news is further amplified by the fact that the company has already opened a refinancing deal with the Bank of Industry (BoI) while the management has signed an agreement with the receiver bank to reclaim assets and all security documents with the bank within six months. The ongoing efforts and commitment of the owners are clear indications of seriousness which should be sustained. The death, more than 10 years ago, of Arewa Textiles and many other similar manufacturing concerns was the perfect illustration of the parlous state of Nigeria’s economy and how essential industries died in its wake. That the phenomenon is still ongoing also connotes a widespread tragedy in labour circles in the country, an adversity leaders appeared clueless about and have laboured in vain to meaningfully address. The resuscitation of the Kaduna mill, it is hoped, would not be another public relations stunt. For their strategic importance as one of the largest employers of labour, all other textile factories that are capable of being revived should be encouraged and assisted to get back to business. This is why the point must be made that government policies on job creations ought to be more accommodating or attractive to employers in the private sector especially manufacturers. Statistics identify the Nigeria’s textiles manufacturing sector as the second largest in sub-Saharan Africa behind South Africa and represents about 63 per cent of textile capacity in the ECOWAS sub region. The tragic decline in fortunes led to the reduction in the number of viable textile mills from 175 in the mid1990s to less than 25 in 2010. Employment shrank from about 137,000 during the same period in the 1990s to 60,000 in 2002 and a further reduction of the workforce by 36,000 as at 2010. Similarly, capacity utilization in the industry went down to 20.14 per cent in 2010 from over 50 per cent in 2003. The bad tale still threatens the continued operations of surviving companies. Regrettably, the slide in fortunes has been inextricably linked to government’s inconsistent policies that failed to protect nascent home industries. These then manifested in pressure from smuggled and counterfeit products particularly from Asia (believed to account for over 85 per cent of market share currently), unbridled importation that encourages dumping of highly subsidised alternatives, absence of long term, low interest funds and obsolete machinery. Challenges such as these would ordinarily force individual investors like Arewa out of business but such investors deserve support for growth. For example, Afprint Plc, Enpee, Five Star, Gaskiya, Aba Textiles, Specomills, Zamfara Textiles, Finetex and Northex in Kaduna have all gone under among others while some like Stallion are still operating below installed capacity. As a consequence, and sadly too, the big industry players either leased their premises to other business concerns or ridiculously, for religious activities. The Nigerian economy could not have had it worse as revealed by the DirectorGeneral of the Nigeria Textiles Manufacturers Association that members “in those good old days” employed between 250,000 and 300,000 workers! However, a huge challenge to the textiles mills’ return is infrastructure deficit such as the atmosphere of irregular electricity supply and prohibitive transportation as well as other high production costs. It is trite to say even the most ambitious ones find it tough to cope with stifling business climes. A way out is strategic thinking. On its return for example, Arewa and others should improve quality of products to take maximum advantage of export opportunities as offered by the African Growth and Opportunity Act (AGOA) to meet U.S. standards. The BoI as fund managers has reportedly disbursed to key players more than 60 per cent of the N100 billion Cotton Textile and Garment Revival Scheme (CTG) intervention funds, a development the Manufacturers Association of Nigeria (MAN) said may have shored up capacity utilization to 49.7 per cent. This is encouraging. The textile industry holds great potential for Nigeria due to the country’s natural cotton endowments and large market. India’s textile industry reportedly offers direct employment to over 35 million people while contributing 14 per cent to industrial production and 17 per cent to export earnings. Nigeria can follow this example and get the people to work.

LETTERS

Environmental abuse in Lagos IR: The Lagos State are seen daily ingesting differ- immediately, never to come SEnvironment Commissioner for ent kinds of prohibited drugs back. They should be resettled in should use his and narcotics, using abandoned other registered locations by the good office to check activities of roadside mechanics in our Estate. We are group of concerned occupants of Iponri Low cost Housing Estate opposite the Iponri Shopping Centre. We like to draw your attention to the deplorable state of the only access road leading to our residential flats on Zone A, Iponri Housing Estate, besides the Iponri Market heading towards the canal/recently sand-filled land. This is caused by the lawlessness of vehicle mechanics, who have taken over the entire road, thereby blocking access and traffic flow. We earnestly request that you use your good office to urgently intervene and restore normalcy on this road because it is the only access road to our residential flats and it has been converted into garage for selling cars, repairs of vehicles and motorcycles, abandonment of disused cars, thereby depriving legitimate business men and women easy passage in the market as well as causing discomfort to owners/occupants of the Estate through man-hour wastage. They also constitute health hazards with the kind of dirts they create and health hazards they encourage through persistent disposal of wastes like pure water sachets and urination on the road and neighbouring environment. Their presence constitute menace to the lives of innocent occupants of the Estate with the exposure of the area to peoples of questionable characters that

state government. All abanvehicles as over. We are aware that most of the doned vehicles and/or those owners of the abandoned vehi- marked for sale on that road cles and the mechanics causing should be cleared, or that vehiblockage on this road do not live cles parked beyond a day on that road be towed. inside Iponri Estate. We therefore request that all We will appreciate your urgent artisans (e.g. vehicle mechanics, intervention panel bitter, rewires etc.) operat- •James Oladogba, ing on this road be cleared Iponri Estate, Lagos

Govt must honour ASUU pact IR: Recently, government to believe that it was a deceptive Simplement declared that if it were to ploy to hoodwink stakeholders the ASUU/FGN 2009 and the Nigerian people that it agreement, it would shut down its operations. While this is unfortunate, it only goes to show the level of insincerity, if not disdain, government has shown on education. Apart from being economical with the truth, it does not explain why government went into the agreement wholeheartedly in the first instance. May be government needs to be reminded that when it allegedly paid billions of naira over the years to the so-called oil importers who never supplied products, the country was not shut down. The truth is that when it comes to education, government usually becomes reluctant, even though implementing the agreements will not hamper the smooth running of government operations but rather uplift it. Enough of the time wasted so far and the hardliner posture of government. What this crisis shows is that government does not care about its own honour inherent in honouring agreements. Or are we

was committed to uplifting the universities? One wonders where the interventionist spirit of the government had gone to when similar support had been offered to banking and entertainment industries as well as railways in their hour of need. What government does not realise or is ignoring is that the sector also voted massively for it to come to power and, as it is with dividends of democracy elsewhere, deserves to be treated fairly in the scheme of things, the least of which is the implementation of the 2009 ASUU/FGN agreement. President Jonathan, on whose table the buck stops must therefore as a matter of urgency treat his own kind and “constituency” with fairness by setting up a committee to implement the 2009 ASUU/FGN agreement to bring back life to the universities. After all, government’s honour is at stake. • Emmanuel Tyokumbur, University of Ibadan, Ibadan, Oyo State

THE GUARDIAN, Monday, September 16, 2013

Opinion Puzzles about monetary policy in Nigeria By Ayo Teriba WO puzzles are becoming striking from recent T communiqués of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN). First, growth, employment, household and business expenditure issues have completely crept out of policy deliberations, as concerns about fiscal and banking operations have become the primary preoccupations of the committee. Second, the number of economists on the 12-member MPC has dropped to just about four. One must wonder how Nigeria can sustain monetary policy that marginalizes growth or employment concerns and excludes economists. To resolve these puzzles, we reason that since fiscal and banking optimization concerns are also legitimate, creating parallel independent committees for dealing with each of them, as is currently the case in the UK, is the best way to ensure that growth and employment issues are not crowded out of monetary policy deliberations. Each of these committees will need to be populated by people with the right expertise, as the expertise of most of the present members of the MPC indicates that they will do better in the parallel committees. The MPC needs to be wholly made up of economists with the technical capacity to contemplate and incorporate growth and employment issues into the policy process. Recent deliberations and reasons for policy actions of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) have been too much about fiscal stance and liquidity of banks to the exclusion of considerations of the dynamics of real output growth, employment, consumer spending, household sector balance sheet, business spending and corporate sector balance sheet, which ought to be the real reasons we need to manage monetary policy. Discussing and acting on fiscal and banking developments in isolation of output, employment, household and business spending growth is not the right way to do monetary policy. Providing optimal liquidity support for aggregate, sectoral, and regional real output and employment growth, household and business spending is the motivation for monetary policy. Fiscal stability, financial stability, financial regulation, and financial supervision all make sense only if they contribute to the attainment of growth and employment. The focus is lost when the committee’s discussions and interventions can proceed without reference to the more vital growth and employment aspects of the economy. Regaining that focus is a pressing policy challenge for Nigeria. Of course many of the issues that currently distract the MPC from dwelling on core economic issues at its meetings are legitimate issues that must be addressed, but they are best left to other entities. Most of the concerns expressed on fiscal

stance should ideally preoccupy some other committee outside of the central bank. A lot of the issues discussed about banks by the MPC should also be dealt with outside of the MPC, but within the central bank. It is important to ensure that the MPC is primarily preoccupied with growth and employment issues in coming to decisions about interest rates. Contemporary experience of the United Kingdom offers key lessons in these regards. In the UK, the MPC is freed from paying too much attention to what banks are or are not doing because a different entity, the Financial Policy Committee (FPC), another independent subsidiary of the Bank of England, also chaired by the Governor of the Bank of England, deals with concerns about banks and financial stability. Similarly in the UK, MPC is freed from paying too much attention to the fiscal stance because the House of Commons’ Treasury Committee works extremely actively to ensure fiscal stability. Nigeria needs to learn urgently from the UK example by moving towards a situation in which the MPC is not the only one striving to manage all aspects of macroeconomic stability. Parallel arrangements for managing fiscal and financial stability in an open and forward-looking way are needed in Nigeria. The UK MPC concentrates on growth and employment issues, knowing that other arrangements are in place to optimize fiscal and banking activities. Members dwell primarily on the role that monetary policy can play in promoting real growth, employment, household and business spending, and regularly visit various regions of the country to speak to audiences throughout the country, explaining the MPC’s policy decisions and thinking. The regional visits also give members of the MPC a chance to gather first-hand intelligence about the economic situation from businesses and other organizations. In its August 2013 statement on Monetary Policy Trade-offs and Forward Guidance, the UK MPC says it currently strives to ‘explore the scope for economic expansion without putting price stability and financial stability at risk,’ and that, ‘The MPC intends at a minimum to maintain the present highly stimulative stance of monetary policy until economic slack has been substantially reduced, provided this does not entail material risks to price stability or financial stability.’ This goes to show that price and financial stability concerns ought not to be pursued to the neglect of real growth and employment concerns. The Nigerian MPC communiqués have a tendency to passively note the latest real GDP growth figures from the National Bureau of Statistics (NBS) in a single paragraph without attempting to link subsequent deliberations and policy decisions to them. The MPC ought to make more explicit statements about observable, periodically measurable, and easily under-

stood indicators of real economic conditions that MPC deliberations and actions will impact, and then hold itself accountable to demonstrate the extent to which such impact is being attained from one meeting to the next. Growth in nominal GDP, consumption, investment, Real GDP growth, employment are some of the variables that public care about and the MPC needs to say a lot more about how its actions impact them at each of its meetings. The MPC does have a lot to say about consumer price inflation, which is the key target and indicator variable the MPC deliberations and actions revolve around, but almost never has anything to say about consumer spending, making it difficult to situate the committee’s views on the outlook of consumer price movements within the context of the overall outlook of developments in real consumer spending. The economy is not just about singling out consumer price inflation and or real consumer spending. It is more broadly about inflation, of which consumer price movements is only a component, and real activity, of which consumer spending is only a component. To be sure that monetary policy actions are not doing more harm than good, discussions leading up to interest rate decisions need to be broad enough to cover the linkages between broader measures of inflation and real activity and the policy rate and other policy instruments. This would require each communiqué of the MPC to speak to a series of measurable slacks, gaps, imbalances or deviations from norms in real and nominal economic activities: e.g. nominal GDP shortfall, output gap, employment rate, unemployment rate, manufacturing and industrial capacity utilization, savings ratios, and household and corporate debt ratios. We need to hear more about what the MPC knows about nominal and real output developments, employment and unemployment developments, wages and profit developments, developments in aggregate demand and its key components, and what views the MPC hold about the outlook of these core measures of economic activity in Nigeria. It is only then anyone can judge whether MPC actions make sense, or for that matter, whether the MPC’s oft expressed views about the inappropriateness of the fiscal stance make sense. Closing measurable gaps in overall real and nominal economic performance must define the common grounds for fiscal and monetary policy. Changes in fiscal or monetary policy stance must be directed at clear measures of gaps in economic activity. But it is important that these considerations be evaluated at every meeting of the MPC and similar committees so that the appropriateness of their choice of policy stance is unambiguous. Much of the progress in evolving better institutions for managing growth and stability in the UK have been spearheaded by the parliament, which has provided new enabling legislations as rapidly

as necessary on an ongoing basis over the past one and a half decades. Each of the MPC and the FPC are collectively directly accountable to the Treasury Committee for fulfillment of their mandates, just as the members of each of the two committees are individually directly accountable to the committee as a way of preserving their independence. It remains to be seen how soon the Nigerian Legislature can have such functionality in economic policy management. While MPC and FPC have overlapping membership to ensure that both committees are kept abreast of the insights from each other’s deliberations, members of the MPC and the FPC give evidence on a regular basis before the Treasury Committee, and each of the MPC and the FPC in the UK includes a non-voting representative from the Treasury, who sits with the Committees at their meetings, discuss policy issues but is not allowed to vote. The purpose is to ensure that the MPC and FPC are fully briefed on fiscal policy developments and other aspects of the Government’s economic policies, and that the Treasury is kept fully informed about monetary policy and financial policy. In Nigeria the Permanent Secretary of the Federal Ministry of Finance represents the ministry on the MPC as a voting member, though they have tended not to be economists. The current composition of the Nigerian MPC in which lawyers, accountants, and bankers account for as many as eight of the 12 members must partly account for the tendency to retreat from the more important but exacting task of linking policy discourse and action to aggregate, sectoral, and regional economic growth, employment, household and business spending. All the nine members of the UK MPC are economists with expertise in the fields of economics and monetary policy, while only about five of the 10member UK FPC are economists (including the Governor and two Deputy Governors who also belong to the MPC), the others being lawyers, bankers, accountants or stockbrokers. There is a need for Nigeria to create a Financial Policy Committee (FPC) within the CBN and re-examine the modalities for appointing persons to the MPC in Nigeria to preserve the competence of the committee. The current composition of the Nigerian MPC in which economists are in the minority might be suitable for the FPC, that requires economists, supervisors, and regulators to work together, but only economists should be called upon to set interest rate in the MPC. Economic literacy of individual MPC members, defined as demonstrable ability to read and write technical documents in macro-monetary economics, is needed to preserve the competence, integrity, and credibility of the committee. Track record of ability to publicly articulate views on practical monetary policy issues, especially in writing, is essential for individual MPC members.

The stowaway boy: The questions! By Andrew Akala N August 24, 2013, a 15-year-old boy, Daniel Oikhena beat the O Benin airport security apparatus to sneak into the undercarriage compartment of a Lagos-bound Arik airplane, where he flew safely for 35 minutes to Lagos. Since this occurrence, apportioning of blames by different agencies has been the order of the day. The recent announcement of a scholarship award for the boy up to university level by De Raufs Volunteer Group has further stirred the hornet’s nest. The group posited that the aim of the scholarship is to help the boy to achieve his dream of travelling to the United States of America. Since this scholarship award was announced, several questions as to whether the boy should be rewarded or punished have permeated the air. But, in a real sense of it, is the boy’s action just a juvenile delinquency, ignorance or assisted? The boy claimed that he wanted to travel to the United States of America, for what, and to meet who? Is this not an avenue for value re-orientation for Nigerians, to believe and have hope in Nigeria? And that people don’t just pack dollars on the streets of America that they work hard (more than the practice in Nigeria) for it? As an aviation expert, I have pondered on the boy’s action, and I tend to believe that the boy could have been supported by an accomplice. The complexities involved in the landing gears of an aircraft is so enormous for a boy of his age to know where to hide without the wheels crushing him during retraction process after

the airplane had taken off, or flinging him off on the runway during extraction of the wheels for landing. Even though he was well acquainted with an aircraft before his action, he cannot understand these details. Perhaps, someone, with detailed knowledge of aircraft engineering might have tutored him on where to stay within the compartment to avoid harm by the gears, which work on hydraulic systems for retractions and extractions. Another point that is worth noting is that vibrations arising from an aircraft that is already set for take-off is so scaring for a boy of his age to summon courage to stay in the compartment, if he had not been so encouraged earlier. Would it be that the control tower did not sight the boy when the aircraft was manoeuvring around the take-off line? Why was the boy not arrested at the first sight? Why was the flight not aborted when a passenger had reported that he saw a boy running towards the airplane, more so as the boy did not re-appear again? It is important to also educate the populace on the concept of “Foreign Object” in the aviation parlance. Any unauthorized person in the airside is categorized as a “Foreign Object”; the same class with animals, trash etc. They generally pose threats to aviation safety. Isn’t it in the standard operating procedure that security should be provided for aircraft up to that very point of take-off to avert these types of occurrences? How did the boy manage to get access to the airside? Had it been it is a wild animal in class of ape, would it have succeeded too? What would have happened to the disembarking passengers at the Lagos air-

port, with an animal jumping down from the wheels compartment? I thing the boy’s action had further revealed the extent of porosity of the nation’s airports. Overall, it appears as if somebody napped at his/her duty post. Furthermore, erecting perimeter fences in all Nigeria’s airports is a project that is long overdue. Another important aspect to this issue is that, could it be that the boy’s thinking was like that of the inventor of an airplane itself, that one day he would fly like a bird? Towards the end of the 17th century, as a teenager, Wilbur Wright (1867-1912) told his father that: “Flight is possible to man...[and] I feel that it will soon cost me an increased amount of money, if not my life”, but his father assessed his thoughts as being silly. Few years later, precisely, December 17, 1903, Wilbur and his brother Orville Wright (1871-1948) successfully designed the first controlled, sustained, powered flying machine, with which they flew to an altitude of 10 ft, and travelled 120 ft to land 12 seconds after takeoff around the hill of Kitty Hawk, North Carolina. Their action, coupled with the patent support they got from the U.S Air Force thereafter, heralded the birth of airplanes. Perhaps, there would not have been an aircraft today if the thoughts of Wright brothers were truncated on the altar of juvenile delinquency control. This lad needs encouragements, more so, with his comments on parental abuse! I think that Nigerian Air Force or other relevant government agencies should support this boy to achieve his objective of flying. • Dr. Akala is a Communication and Navigation Scientist with the Department of Physics, University of Lagos.

THE GUARDIAN, Monday, September 16, 2013

Opinion Tennis at Kigali By Boniface Chizea HE tennis Section of Ikoyi 1938, a high proT file and elitist club with its distinguishable motto: “Global harmony through recreation” as it is wont to, under took tennis tourism to Kigali, the capital of Rwanda in East Africa commencing from Wednesday, September 4 to return on Sunday, September 6, 2013. This is the second trip the Section would make this year having earlier visited Houston in America. I was privileged to be counted as a member of the group which number 40 and counting that visited Kigali. By all accounts this was a most memorable excursion. Usually such a trip is underwritten through sponsorship to reduce the financial burden of the trip on members and to ensure that as many members are in a position to afford the trip. Major credit for this trip is due to His Excellency Joseph Habineza, the Rwanda High Commissioner to Nigeria who rightly understood his mandate to include the attraction of investors to his country. And he saw this as a wonderful opportunity to expose this high profile group to investment opportunities in his country using sports as a veritable channel. Not surprising, Rwanda Air was also part of this sponsorship as it offered reasonable discounts on tickets, kitted members in their Branded T/Shirts and Cap and played an active role during the presentation and Business registration opportunity made available by the RDB and at the closing ceremonies presented members with packs of gift items. The Nigerian High Commissioner to Rwanda, Peter Ogidi-Oke though he was not represented at the reception on arrival at the airport which as was later explained was due to a gap in communication did his best to make the visit memorable by the night out he arranged for members to recall their dance steps and by ensuring before departure that the entourage visited to know the High Commissioner’s Office. The group on this visit was of course led by the Chairman of the Tennis Section in the person of Chief Billy Joe Ekwunife; a gentleman by any measure of assessment who was a past

Managing Director of Ivory Merchant Bank in liquidation and who has surprised all of us in the Section with the level of time commitment he has been able to demonstrate in running the affairs of the section. There were other prominent members of the group which included Chief Esan Ogunleye a long time standing friend of mine who was a two term MD at Triumph Merchant Bank in liquidation and a former Registrar of the Chartered Institute of Bankers, who as far as we are concerned goes by the popular name of ‘Baba Ekiti’. There was also in this group a prominent media personality Alero Edu of Channels TV Saturday Sunrise discussion programme fame not forgetting General George Umoh (rtd) OON; while the Office Bearers of the Ikoyi Club 1938 were represented by the Honorary General Secretary, Mr, Ike Ibeku and the Honorary Treasurer, Mr. Dayo Olusanya. The Chairman of the Club Mr. Wale Doherty was originally scheduled to be on the entourage but somehow was not able to make it. Sincerely speaking all members on the entourage are distinguished on their own right. We got a foretaste of the hospitality that awaited us on arrival at Kigali International Airport. There was a rousing reception including cultural displays with a battery of pressmen both electronic and radio. On enquiry I was told that there were two television stations and many radio stations present at the reception. And amongst the dignitaries that came to receive us at the airport was the Rwanda High Commissioner to Nigeria along with representatives of various groups that were involved in the promotion of the visit particularly the RDB. We were really accorded deserved celebrity welcome. Our counterpart Tennis Club at Rwanda is the “Cercle Sportif De Kigali” whose amiable Chairman is Mr. Alfred Kalisa. The club boasts of having the President of Rwanda, Paul Kagame as one of its members. In fact we were meant to understand that the president is a good tennis player who regularly plays at the club. The president is reputed to be such a good player who is acclaimed to have given a good account of himself on a visit to America when he played

against Monica Seles. This club has as its stated mission the promotion of sports and leisure in Rwanda. The facilities at the club included six clay tennis courts, a football field, basket and volleyball courts, ping-pong and gym, swimming pool and squash courts. A major highlight of the excursion was the visit arranged for the group to tour the Kigali Genocide Memorial Center. It was a most moving reminder to members of the ugly past which Rwanda had experienced marked by unprecedented genocide; if you like you could rightly describe this massacre as ethnic cleansing! The story was told that the most recent experience of genocide goes back to 1994 which was precipitated by the death in plane crash by the then Rwandan President Habyarimana along with the President of Burundi Cyprien Ntaryamira when their plane was allegedly shot down on approach to Kigali. What followed was the shattering of the fragile peace in Rwanda, which resulted in the death of over a period of 100 days of between 800,000 and 1,017,100 Tustsis and moderate Hutus. The Rwanda Patriotic Front led by President Paul Kagame was reported to have come to the rescue to end the orgy of genocide! Four million citizens were displaced during this massacre and were accommodated in camps in Rwanda, Zaire, Tanzania, Burundi and Uganda. The Memorial Center told ugly stories regarding the role which was played by the colonial masters – the Belgians in entrenching the separation between the two dominant ethnic groups by going as far as to issue identity cards. One of the prominent displays at the Center was the Hutus Ten Commandment introduced by Kagura, which relegated all dealings with the Tutsi and instructed on how Tutsi should be treated including four commandments that portrayed how Tutsi women are tools of the Tutsi people to be used as sexual weapons to weaken and ultimately destroy the Hutu men. Rwanda is still struggling to live down its ugly past. In fact one piece of advice we were given before embarking on this trip is not to ask anybody their ethnic identity. Every attempt is currently made to live down this ugly past by en-

deavouring to ignore and never allow such ethnic identity to be used anymore! By the way Paul Kagame is the sixth and current President of Rwanda having assumed office in the year 2000 when his predecessor Pasteur Bazimungu resigned. The tennis competition was almost a nonevent and was treated for what it really should be, simply a social medium for the building of friendly relationships and essentially for networking. The playground being clay presented some challenge to members from Ikoyi Club as the playground here in Lagos is hard court and there were some adjustments to be made to play on the clay surface. And therefore not surprising the score was in favour of our hosts. We were not able to play with the president despite assurances on two different occasions. Kigali is a beautiful place, which has witnessed unprecedented rate of development since the end of the last wave of senseless genocide in 1994. The esthetics of the environment is enchanting and in fact there are specific fines imposed on anyone who for any reason damaged any of the many trees planted to protect the environment or for that matter knocked down any of the electric poles. The economy has grown at a relatively high rate of over eight per cent per annum and the inflation rate and exchange rates are stable. There are no potholes on the road and there is genuine affirmative action. It is reported that 56 per cent of members of parliament are women, which is set to increase following the election, which is being anticipated. The crime rate is non-existent and there is in fact zero tolerance for corruption. Women could walk the streets at any time of the night without being molested! Could you compare that with the situation in Nigeria where it was recently reported that a man of God, Archbishop Ignatius Kattey and his wife Beatrice were kidnapped in Port Harcourt! The bar has been raised by the Cercle Sportif Tennis Club by the depth of their hospitality and the challenge therefore for Ikoyi Club 1938 Tennis Section is to match and even try to surpass this level of hospitality on return visit. • Dr. Chizea is a management/financial consultant.

Confront issues, not Odimegwu By Paschal Onyiorah HE increasing vituperative reactions, comments, articles T and/or polemics emanating mostly from Far-Northern leaders against the person of Mr. Festus Odimegwu, the chairman of National Population Commission, over the statement reportedly credited to him to the effect that all the census exercises held in Nigeria so far were basically riddled with irregularities of immense proportion that ultimately undermined their credibility, appear to be not only misdirected but apparently risible – especially considering the sheerest emptiness of some of these criticisms that clearly underscore the sole intent of those behind them to be merely spiteful and nothing more. Naturally, one had thought that by the prevailing circumstance of Mr. Odimegwu’s revelation and his well registered unwillingness to embrace the typically Nigerian administrative culture of window dressing that is rampantly inherent in our public service life (which the likes of Mr. Rabiu Kwankwaso would have preferred and in fact had confessed their predilection for it), these cavilers would have done well in picking holes on the actual issues raised by Mr. Odimegwu rather than going personal about the whole thing. In other words, they would have done well to find solace in plucking the streaks of grey in Mr. Odimegwu’s bristle rather than going the whole hog of recommending his head for the guillotine. Surely the truth is bitter, but we all must not allow ourselves to be amenable to amnesia as it concerns the actual comment made by Mr. Festus Odimegwu in respect of past census in Nigeria. To be specific, I strongly believe, Odimegwu’s statement was not only meant for the consumption of all Nigerians but aimed at unearthing for our collective reflection the fundamental malaise associated with demographics in Nigeria from the colonial era to 2006, when the last census exercise was conducted. It therefore boggles one’s mind why our compatriots from the far North are yelling out as if they were the only people that heard and/or understood the statement credited to Mr. Festus

Odimegwu. Unfortunately, instead of actually addressing the issues or any of the issues raised by Odimegwu’s reported comment if he can, Governor Rabiu Kwankwaso reportedly resorted to throwing tantrums and insults to the person of the NPC boss as if he (the latter) had snatched his wife from him. In fact, it may do us well to hear Mr. Rabiu Kwankwaso out: “we are not happy about that appointment and think it was a mistake. Festus shouldn’t be there in the first place. Why? Because, you see, unfortunately, somebody read his CV, he had only one thing in the alcohol industry, all his life. And my guess is that he is taking a lot of his products and that is mistake because he cannot be the chairman of NPC and at the same time be attacking what his predecessor had done.” Funny enough, the same alcohol industry where Chief Odimegwu had creditably delivered and thus distinguished himself with verifiable and stellar track record (and for the sake of which Kwankwaso and other arm-chair critics got to recognize and respect Odimegwu today as a model) now generates substantial revenue for the country which the same Kwankwaso and his people are always hopeful and delighted to partake in the sharing of the same alcohol proceeds that accrue from the Value Added Tax (VAT) – despite their feigned aversion to the drinking of alcohol based on religious pretentions. Are you laughing? Indeed this is not a laughing matter. And one wonders whether this queer posturing of Rabiu Kwankwaso and his people falls short of the antics of the chichidodo (courtesy of Kwei Arman - a Ghanaian novelist – in his novel The Beautiful Ones Are Not Yet Born). For clarity, chichidodo is a bird that dislikes feces but likes eating maggot a lot. What is more, it is understandable that for Governor Rabiu Musa Kwankwaso and his people it would have made sense if the “man” in Mr. Festus Odimegwu had died (thanks to Prof. Wole Soyinka) in the face of the myriads of glaring institutional and demographic misinformation or raw data that had been dished out to the Nigerian people over the years by the successive leadership of the National Population Commission. But conversely, for allowing the “man” in him to be rather alive to his duties, the Kwankwasos are now peeved and want us to be-

lieve them that the choice of Chief Festus Odimegwu is a “mistake because he cannot be the chairman of NPC and at the same time be attacking what his predecessor had done” – even when these legacies ARE awful. Clearly there is no gainsaying that this kind of mindset is one that is tied to the malady of window dressing which is not only the bane of governance in Nigeria but to a large extent a vindication to Chinua Achebe’s timeless submission that “the trouble with Nigeria is simply and squarely a failure of leadership”. In the same vein, this can hardly be divorced from “the tendency to self-centred pedestrianism” (ibid: Achebe) which in part appears to be the unpleasant driving force behind the incessant verbal attacks emanating from the Kwankwasos. Otherwise, the Kwankwasos ought to have remembered that the late President Umaru Musa Yar’Adua was arguably the first to take a mordant swipe at his predecessor’s legacies and the very process that brought him to power in 2007. Whereas it remains commendable that the late President Umaru Musa Yar’Adua attacked the faulty system he met upon his ascendancy in 2007, it is a trite fact that the electoral reforms that were eventually brought to fruition preparatory to the 2011 elections and which we operate today are all but the corollaries of President Yar’Adua’s timely attack on what his predecessor – President Olusegun Obasanjo – bequeathed to him and the nation at large. Curiously, one therefore wonders what the Kwankwasos have got to say about this commendable but clearly antagonistic disposition of President Umaru Musa Yar’Adua over the farcical electoral process that brought him to power in 2007 vis-à-vis the current scenario which the stance of Mr. Festus Odimegwu epitomises. But be that as it may, it is high time we – Nigerians – learnt to confront issues and not individuals. Indeed the Chairman of the National Population Commission, Mr. Festus Odimegwu, has passed his message, willy-nilly, and the onus is now on those who disagree with him to rebut his message by dint of issue-based arguments and cogent reasos and not by attacking his person. • Onyiorah, a journalist, writes from Abuja.

THE GUARDIAN, Monday, September 16, 2013

Business Business Interview P.54 How to overcome challenges in difficult business clime

Investors stake N91.277b in govt bonds By Helen Oji RANSACTIONS on the OverT The-Counter (OTC) market for federal government’s bonds, last week, recorded a turnover of 88.189 million units valued at N91.277 billion

in 349 deals. This volume of transactions recorded was however, lower than 114.942 million units worth N119.524 billion, exchanged in 470 deals in the preceding week ended

September 6, 2013. Similarly, a turnover of 1.071 billion shares worth N13.139 billion in 23,190 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.138

billion shares valued at billion that N14.130 exchanged hands in 24,122 deals during the preceding week. Specifically, the financial services sector (measured by

New Director-General of Nigeria Civil Aviation Authoriry, Capt. Fola Akinkotu (left); Director of Airworthness, Bennedict Adeyelika , Director of Air Transport Regulations; Justus Wariya and Director of Finance Alhaji Salawu .N.Ozigi during the maiden meeting of NCAA officials with journalists, in Lagos, at the weekend. PHOTO: SOLA OJEDOKUN

Govt defends Zungeru power project’s cost HE Federal Government T has described as “unfair” insinuations that the contract awarded by the Ministry of Power for the Zungeru Hydroelectric Power Project was excessively high. In a statement from the ministry at the weekend,it explained that “the selective benchmark pricing of three projects in Ethiopia, China and Brazil is over simplifying the complexity of three hydropower projects.” Essentially,“it is important to note that the cost of such projects depend on the details of the design, topography, geotechnical conditions of the site and the availability of supporting infrastructure to deliver the project. “It should be noted that the cost of dams worldwide further depends on the specific social and environmental issues and ancillary structures that are to be provided along.” Citing the 2012 Worldwide

it is important to note that the cost of such projects depend on the details of the design, topography, geo-technical conditions of the site and the availability of supporting infrastructure to deliver the project Survey of the cost of large hydropower projects by the International Renewable Energy Association (IRENA),which indicates that a cost of $1.05 million to $7.65 million per megawatts of installed capacity, the ministry stressed that “the Zungeru project has a projected cost of energy at 5 US cents perkWHr, a very favourable figure when compared with the IRENA survey of a worldwide average cost of 2 – 19 US cents for large hydropower.” The ministry insisted that contrary to insinuations that the cost of the contract was over bloated, “the Engineering Procurement

and Construction (EPC) cost of the Zungeru hydroelectric project approved by Federal Executive Council is $1,293m including transmission lines and substations indicating a cost of $1.847m per MW. “It is obvious that the benchmark price per MW for the Zungeru project falls at the low end of average world pricing. It is also to be noted that the Bureau of Public Procurement had, in its Due Process Review Report, indicated the average cost of similar large hydropower projects and accepted the competitively tendered price for the project.” The ministry further noted that despite the inadvertent

delay in executing the Loan Agreement with China, which is the funding source, the contractors, Messrs CNEEC – Sinohydro Consortium has appropriately mobilised to site. It said that the EPC consortium, from its own resources, has been able to deliver to site construction equipment worth N371, 416,800 and placed on order for other construction equipment valued at over $12,000,000, even as letters of credit have been opened and most of these items are now being shipped to Nigeria. The ministry also hinted of plans by the authorities to deploy the key foundation staff of the Project Team ahead of work on the project over the next few months to fast track the completion of construction design, arrival of major construction equipment, establishment of quarries, and facilities for both employer and client.

volume) led the activity chart with 770.434 million shares valued at N5.609 billion traded in 13,088 deals; thus contributing 71.92, 42.69 and 56.44 per cent to the total equity turnover volume, value and number of deals respectively. The consumer goods sector followed with a turnover of 107.419 million shares worth N4.143 billion in 4,462 deals, contributing 10.03, 31.53 and 19.24 per cent to the total equity turnover volume, value and number of deals respectively. The conglomerates sector came third with 78.913 million shares worth N347.945 million in 970 deals. Trading in the top three equities namely Unity Bank Plc, Transnational Corporation of Nigeria Plc, and Guaranty Trust Bank Plc accounted for 223.499 million shares worth N1.977 billion in 2,748 deals, contributing 20.86, 15.05 and 11.85 per cent to the total equity turnover volume, value and deals respectively. Also traded during the week were 120 units of NewGold Exchange Traded Funds (ETFs) valued at N260, 525 executed in four deals compared with a total of 1, 372 units valued at

N2.984 million transacted last week in two deals. 1, 600 units of FGN bonds valued at N1.765 million were traded during the week in five deals in contrast to 1, 800 units valued at N2.022 million transacted last week in 10 deals. The NSE All-Share Index depreciated by 0.84 per cent to close on Friday at 36,098.07 while the market capitalisation of the equities on the main board decreased by 0.84 per cent to close at N11.494 trillion. Similarly, the NSE 30 Index shed 0.66per cent to close at 1, 686.49. Other NSE indices depreciated during the week: NSE Consumer Goods, NSE Banking Index, NSE Insurance, NSE Oil/Gas, NSE Lotus II and NSE Industrial Goods decreased by 0.73, 0.81, 2.96, 0.64, 0.13 and 0.74 per cent respectively while the NSE-ASeM closed flat. 33 equities appreciated in prices during the week lower than 38 equities of the preceding week. 40 equities depreciated in prices lower than 43 equities of the preceding week, while 121 equities remained unchanged higher than 113 equities of the preceding week.

THE GuARDIAN, Monday, September 16, 2013

16 BuSINESS

Govt establishes pension transition dept, names Mayshak Director-General From Anthony Otaru, Abuja RESIDENT Goodluck Ebele P Jonathan has approved the establishment of a Pension Transition Arrangement Department (PTAD) and named Ms. Nellie Mayshak as its DirectorGeneral, according to a statement made available to The Guardian in Abuja yesterday. Already, a circular signed by the Head of the Civil Service of the Federation, Alhaji Bukar Goni Aji has been sent to all Ministries, Departments and Agencies of the Federal Government,about the development. In the circular, the Head of Service explained that the establishment of the new pension department is in line with Section 30, Sub

Section (2a) of the Amended Pension Reform Act, 2004, and it will take over the management of three of the offices presently running the old pension scheme, which are, the Civil Service Pension Department, the Police Pension office and the Customs, Immigration and Prisons Pension office (CIPPo). Accordingly, the DirectorGeneral of the PTAD, is expected to spearhead the smooth transition of the three offices into a single pension administration and management under the supervision of the National Pension Commission (PENCoM), which will directly report to the office of the Coordinating Minister for the Economy and Minister of Finance for coordination and control.

Isoun’s book on technology for launch today ow Science and H Technology Innovation (STI) could generate millions of jobs and proffer a solution to a myriad of national problems is the fulcrum of a book Why Run Before Learning to Walk? which is due for launch today at NIGCoMSAT Auditorium Airport Road Abuja, by 10 am. Authored by Professor Turner Isoun, reputed to be the longest serving Science and Technology Minister (october 2000 – May 2007), with his

wife Miriam, the book says STI will enable the Nigerian public, especially the youth access to jobs and solutions. The book specifically cites examples of jobs already created by the revolution in the telecommunications sector with its multiplier effects saying adoption of STI will take the revolution to the next level. The book says core value should be placed on STI if Nigeria must get out of the woods.

Treasurer, Nigerian-British Chamber of Commerce (NBCC), Uwamai Igein; Council Member, Chief Bintan Famutimi; Managing Director, Lekki Worldwide Investments Limited, Tajudeen Disu; President NBCC, Prince Yemi Adefulu, MFR; Director General, NBCC; Mrs. Fidelia Nzekwe-Chinwuko Vice President, NBCC, Ray Atelly, and Council member (NBCC), Tunde Ogunde, during a courtesy visit to Lekki Worldwide Investments Limited in Lagos

osun explains N10b Sukuk bond to investors . As Aregbesola lists gains of people-centred programmes HE resolve of osun State T government to expand the scope of economy and create more job opportunities for the people informed the floating of its N1o billion Sukuk bond recently. The state governor, Rauf Aregbesola gave the explanation in Lagos at an investment forum put together to drum up support for the Islamic bond. Aregbesola said that his osun state has been strongly emerging an investors’ destination with robust opportunities in commerce, tourism agriculture and other sub-sectors of the economy. He identified human capaci-

ty building and empowerment as effective ways to combat poverty in the country stated that a nation intended to fail the moment its government’s policies and programmes were not targeted at empowering its citizens. He spoke According to him, his administration was people-centred, which was why the state had the least ratio on the poverty index and unemployment rate in Nigeria. He disclosed that his administration had raised osun’s IGR from paltry N300 million inherited from previous administration to N1.6 billion monthly to be able to empower more indigenes of the state. “This is why our government is poised on investing on the people of the state so as to expand the economy and create more wealth. “our various investments in

education, health, transportation, agriculture and social infrastructures are therefore directed towards achieving optimum level of human production,” he said. Already, there are massive constructions of modern schools facilities going on across the state under the oSchool scheme. The state has also embarked on road constructions, which are aimed at creating a new network of roads and reconstructing new ones as part of strategies to accelerate economic growth through smooth public transportation system. Aregbesola informed investors that focusing on the people was central and cardinal to his administration, telling them to see the state as veritable atmosphere for investment. He added that with less than three per cent poverty index

and least unemployment rate, coupled with the upgrade of infrastructural facilities, osun was a fertile ground for rapid investment growth. He noted that his past three years in office had been focused on massive and all round development of the state in every socio-economic and political sphere. The achievements of which he said were due largely to strategic governance with some intervention on the condition of good living of the people. He cited the examples of government’s investments on school uniforms for pupils as well as expenditures on MKo Abiola International Airportthe expenditure, which, according to him, would be recouped in five years. In his remark, the Commissioner for Finance and Economic Planning, Dr. wale Bolorunduro, said that the state was solvent contrary to rumours heavy indebtedness of the state being peddled by some disgruntled elements. He added that Aregbesola

THe GuARDIAN, Monday, September 16, 2013

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NIMN records N132.6m turnover in 2012 By Helen Oji He National Institute of Marketing of Nigeria (NIMN) has declared a turnover of N132.6 million in its 2012 operations, against N138.1 million posted in the previous year. According to the institute, the decrease in turnover during the year under review may however be attributed to poor performance recorded in the institute’s activities in the last few years. Specifically, the slide in the institutes financial, in the last few years have been characterised by declining income, increase losses, insignificant level of corporate sponsorship and disappearing membership contributions. Making these revelations at the 4th yearly general meeting of the institute in Lagos recently, the President of the institute, Ganiyu Koledoye said, “between September 2008 and May 2013, financial performance have been on the decline.” Koledoye pointed out that in June 2008 when the two arms of the institute were unified, the chairman of Reconciliation and Integration Committee persuaded the committee to adopt a transformation strategy in moving the institute forward. According to him, when the result of the first sixteen months was released in the year 2010, both the council and the generality of members endorsed the strategy because of the significant turnaround achieved, which, according to him was 100 per cent increase, when compared to the last turnover of the combined arms of the institute in 2007. “However, the euphoria engendered by this dramatic performance was replaced by anxiety when in 2011, the

Specifically, the slide in the institutes financial, in the last few years have been characterised by declining income, increase losses, insignificant level of corporate sponsorship and disappearing membership contributions institute began to attract distractive tendencies and decline in all indices. A critical review of the adverse turnaround in the fortunes of the institute revealed that the transformation strategy, which formed the basis of its corporate governance upon which its marketing strategy and operating policies were based, was grossly flawed. “It became apparent that its corporate governance strategy platform resulted in high cost of product development and maintenance. It also resulted in sudden product withdrawal and questionable maintenance of high cost offering loss making products.” Koledoye added that on assumption of office as acting president on May 4, 2013, the president in council consequently embark on a number of damage control measures, alongside other strategic decisions to redress the negative trend. He, however, assured members that these factors likely to be responsible for the institute’s poor performance during the period under review are currently being discussed. On the election held at the meeting, Rotimi Olaniyan emerged the institute’s 1st vice president, while Rotimi Oladele was declared the 2nd vice president.

Access Bank wins website effectiveness award CCeSS Bank website has A been adjudged overall winner of the 2013 edition of the Web-Jurist ‘Website effectiveness Award’ conducted by Philips Consulting. Justifying the bank’s emergence, under the banks category, a Web- Jurist report stated that the financial institution had been consistent in the quality of service delivery via its website. The bank’s performance is an improvement over last year’s when it was rated third, behind GTBank and Zenith Bank. Similarly, this feat is a validation of Access Bank’s industry leadership in e-payment and compliance with best practice, which requires provision of accurate, relevant and timely information on organisational websites at all, times. Analysing the Web-Jurist research report, Access Bank’s website was adjudged best in the technical aspects which included navigation,

functionality and security. Also the website was declared winner in the Website Content that had metrics such as accuracy and presentation. The awards came on the heels of the unveiling of the bank’s re-vamped website which significantly enhanced its aesthetics and improved its functionality for improved customer experience. Industry observers have described the bank’s emergence as the overall winner of the Web- Jurist Award as a reward for its investment in online security management, citing its pioneering role as the first Nigeria bank in West Africa to obtain the Payment Card Industry Data Security Standard Certification (PCIDSS) and its certification by the British Standard Institute with the ISO 27001 award - a global standard for information security management and process efficiency.

Executive Commissioner, Finance and Administration, Securities and Exchange Commission (SEC), Zakawanu Garuba (left), Director-General, SEC, Ms. Arunma Oteh, Managing Director/Chief Executive Officer, Nigerian Sovereign Investment Authority (NSIA), Uche Orji, Non-Executive Commissioners, SEC, Olufunke Abiodun and Ugochukwu Ikemba, during SEC’s learning series forum.

THE GUARDIAN, Monday, September 16, 2013

THE GuARDiAN, Monday, September 16, 2013

BuSiNESS 19

GTBank, Agbaje win World Finance awards uARANTy Trust Bank Plc G has bagged the ‘2013 Best Banking Group in Nigeria’ award at the 2013 yearly World Finance Banking Awards, at the weekend. Outlining the rationale for the bank’s emergence, the judges commented that the GTBank scored high marks in innovation and product offering in the financial services industry, regional reach to cover high growth markets, significant proof of continuous development, good corporate governance and Corporate Social Responsibility. Also, the Managing Director/Chief Executive Officer of bank, Segun Agbaje, won the 2013 Banker of the year– Africa. The award, which is conferred on outstanding

Resort Savings and Loans to open more branches S part of efforts to spread A its reach and consolidate on the fallout of its recent hybrid offer, Resort Savings and Loans Plc, a mortgage bank based in Lagos, with branches spread across the country, is set to meet its strategic focus of branch network all over the federation. The bank’s managing director, Mr. Abimbola Olayinka, made this known during the bank’s facts behind the figure session at the Nigeria Stock Exchange. Olayinka said the bank has been able to brace all odds to becoming a major player in the Nigerian mortgage sector as a result of the effort of the banks numerous shareholders and the strong deposit base of its numerous customers. According to him, the bank was able to increase its net profit position from N1.1 billion in 2011, to a profit of N3.5 billion in 2012. He explained that the bank currently has disbursed over N1.5 billion loan from Federal Mortgage Bank of Nigeria (FMBN) to various beneficiaries, while also processing the National Housing Fund (NHF) mortgage facilities in excess of about N6 billion. The shareholders fund has also grown from N2.9 billion in 2011, to N6.2 billion as at to date, meaning that the bank has indeed bounced back to profitability. On the financials of the bank, Resort’s MD allays the fears of shareholders that provision had been made for the un-performing loans under the prudential guideline. While assuring shareholders that their investment is being channeled towards the right direction, Olayinka stated that part of the current drive of the bank is to attract more funds to prosecute the goal of mortgage creation in the country, a situation that will allow for more housing units to be constructed thereby reducing the accommodation problems the ordinary citizens are faced with.

Agbaje bankers who have achieved the most with regards to innovation, profitability and sustainability of their organisation, also recognises an individual that has been an influential and inspirational

leader, overseen strong financial performance for his organization and successfully guided his institution to new heights in its industry. “We rely on reader insight and experience to provide nominations to the judging panel, and we relish hearing about new experts and burgeoning markets. Our award programmes are tailored to provide a comprehensive analysis of the very best in each market,” the organisers said. World Finance cited GTBank’s clearly defined customer centric strategy dedicated to improving the client experience, innovative financing solutions tailored to client needs, investments in new technology, and unique industry specialisation as important factors in winning this award.

“This category was one of the most sought after categories in the 2013 Banking Awards, however someone has to win and the judging panel confirmed that Agbaje was at the vanguard of Africa banking and had deservedly earned the reputation and recognition as a truly accomplished and highly respected banker, locally and internationally. However, Agbaje said: “We

are proud to receive these awards and that our performance over the years has earned global recognition.” He attributed the bank’s achievements to the loyalty of its customers and the commitment of its employees, who constantly strive to ensure customer expectations every single time. “We are a proudly African and truly international insti-

tution and we are committed to the ideal that our stakeholders should be better off for partnering with us. This principle influences our operations, products, style of service delivery and corporate culture. “The recognition is a challenge and a call to do more in order to promote the global relevance of the Africa banking industry,” he added.

THE GUARDIAN, Monday, September 16, 2013

THE GuARDIAN, Monday, September 16, 2013

BuSINESS 21

Telecoms’ products top ATL expenses, spending falls in 2012 By Adeyemi Adepetun HE various Above–TheT Line (ATL) advertising expenses in Nigeria fell by 10.6 per cent from N102.76 billion in 2011 to N91.85 billion in 2012. ATL is a type of advertising through media such as television, cinema, radio, print, and Out-of-home to promote brands or convey a specific offer. This type of communication is conventional in its nature and is considered impersonal to customers. Indeed, according to the 2012 edition of Mediafacts, a yearly of publication of MediaReach OMD, a media independent agency in the country, despite the fall in advert spending, the telecommunications sector product category still recorded the highest amount of advertising

expenditure in the ATL advertising in 2012. The publication disclosed that from the total ATL advertising, telecommunications product category spent the highest amount of N15.56 billion, representing a decline from the N20.12 billion spent in 2011, followed by entertainment, leisure and tourism with N4.988 while lager beer was third in the product category with N4.784 billion. In the telecommunication category, MTN topped the list with N5.09 billion followed by Etisalat that spent N4.40 billion during the year under review. Airtel and Globacom spent N2.99 billion and N2.95 billion respectively. All the four brands topped the list of the top 20 brands in terms of ad spend last year. “Total advertising spend on Above-the-Line activities fell slightly by 10.6 per cent to

N91.846 billion in 2012 as against N102.755 billion in 2011,” the report noted. The publication attributed the drop to reduced media investment of 43.9 per cent on outdoor advertising and 41.7 per cent on press. But despite the drop in total expenditure, the report said that media investment on TV

and radio rose by 7.2 per cent and 20.1 per cent respectively. Of the N91.846 billion, television had N49.399, radio N15.782; outdoor N17.692 while N8.974 was spent on the press. A further analysis of the trend in the advertising industry during the review

year showed that television advertising closed at N49.399 billion as against N46.076 billion in 2011. Radio recorded N15.782 billion as against N13.142 billion spent in 2011, Press spent N8.974 billion lesser than the N15.395 spent in 2011; while Outdoor expenditure was N17.692 billion compared to

N28.142 billion spent in 2011. Mediafacts noted that in 2012, Lagos region accounted for 35.8 per cent or N32.913 billion, North 33.1 per cent or N30.418 billion, the West N15.024 billion or 16.4 per cent while the Eastern part of Nigeria accounted for the remaining 14.7 per cent or N13.491 billion.

Dangote Cement distributors get N800m bonus By Femi Adekoya recognition of their Iny’sNefforts towards the compabottomline for the 2012 financial year, Dangote Cement Plc at the weekend rewarded its distributors with about N800 million as their sales bonus for 2012. The distributors with different geographical representation received sums ranging

from N2 million to N60 million as the Chairman of Dangote Cement Plc, Aliko Dangote who handed them the cheques promised that the company would do more as their sales also improved. Speaking at the company’s Distributors’ Award ceremony themed “Cementing Partnership”, Dangote said that the occasion was put together in recognition of the

distributors’ long-standing commitment, devotion, loyalty and valuable contribution to the distribution and sale of Dangote Cement in 2012. He stated that it was the patronage of the distributors and the customers that had made Dangote Cement profitable in the cement market in Nigeria despite the increasingly intense competition in

the industry. Dangote said: “Indeed today, Dangote Cement’s success story would not have been possible without you, our distributors, who work tirelessly to ensure that the product gets to our customers in every nook and cranny of the country. We can never thank you enough! You have been an integral and vital part of our business over the years.

THE GUARDIAN, Monday, September 16, 2013

BUSINESS 23

Flour Mills to explore railway transportation for products’ distribution By Taiwo Hassan of Nigeria Plc has FintoLOURMills expressed it desired to key the bulk rail transportation system of the Nigeria Railways Corporation (NRC) initiative to explore the rail lines in the movement of its products nationwide. According to the company, its readiness to partner with the NRC, to explore rail transportation was aim to make the rail freight system in the country to be more efficient.

FRCN, group urge improved governance code By Omiko Awa HE Financial Reporting T Council of Nigeria (FRCN) and professionals, board chairmen, directors and chief executives officers of private and public organisations have called for the strengthening of the corporate governance codes by way of reviews to reflect the current global trends. The call was made at the yearly conference of the Society for Corporate Governance Nigeria (SCGN), in Lagos. Speaking on the lead topic Corporate Governance, Corporate Culture And Challenges, the Chief Executive Officer, Financial Reporting Council of Nigeria (FRCN), Jim Obazee, urged public and private institutions in the country to review their financial laws in compliance with the international standards on accounting and reporting. He said that financial reporting should be allowed to reflect our cultural valuesgood moral, ethics, integrity, accountability, transparency and openness, which make up the recipe for economic transformation of any country. Obazee, who is also chairman, International Standards of Accounting and Reporting (ISAR) of the United Nations, said, “we can only build credible institutions that can compete favourable in the global market when we uphold the various financial codes for international best practices.”

With this, the company has joined other key stakeholders, like Nigeria Customs Service (NCS), Nigeria Ports Authority, (NPA) and Inland Container Nigeria Limited (ICNL), who

have commended the flagging-off of container transportation from Apapa to Kaduna and Kano recently, where they concluded that the move by the NRC to resume

container transportation after seventeen years was a welcome development as it would result to port decongestion and make for easier distribution of goods within the country.

Disclosing this at the company’s Breakfast/Group Managing Director’s media briefing, in Lagos, at the weekend, the GMD, Paul Gbededo said that the idea to revive the nation’s rail transport system

was key to the sustainability and development of the country’s economic growth, pointing out that the commencement of the bulk transportation system has given the company a new lease of life.

THE GUARDIAN, Monday, September 16, 2013

Oil & GasWeekly Remi Aiyela, Editor-in-Chief

result of their relatively under-developed state. The operatorship issue could now crash the prices of those assets. In the past NPDC has had to bring in external parties to operate the blocks on their behalf, leaving many to wonder why the Corporation still insists on operatorship in these circumstances.

CAMAC Energy Commences Drilling Operations at Oyo-7 Well editor@NOGintelligence.com www.NOGintelligence.com

UPSTREAM NEWS

AMAC Energy has an encouraging news C update following its Q1 13 net loss of $3.8 million. The U.S.-based exploration and production company owned by Nigerian business man, Dr. Kase Lawal, has been informed by its partner, Allied Energy Plc that drilling operations at the Oyo-7 well commenced on September 9, 2013 using Transocean's Sedneth 701 drilling rig. The drilling of the pilot hole to assess shallow hazards around the Oyo-7 location was successfully completed. The rig is being positioned over the actual Oyo-7 location after which drilling operations will continue. Oyo-7 is expected to both significantly increase oil production from the currently producing reservoir and de-risk much of the unrisked resource potential in the field. Oyo, the first deepwater discovery in Nigeria, has been online since December 2009. The Company's principal assets include interests in OML 120 and OML 121, offshore oil and gas leases in deep water Nigeria, which include the currently producing Oyo Oilfield. The company says it is currently pursuing further additions to its exploration portfolio in East and West Africa and was recently shortlisted in the Chevron sale.

DOWNSTREAM NEWS Buyers of Chevron Blocks Will Not Get Operatorship HE Nigerian National Petroleum T Corporation (NNPC) has issued a notice warning buyers of Chevron's interests in five oil blocks that operatorship of the assets does not transfer automatically to them on acquisition. The first three of the Chevron assets to be put up for sale are Oil Mining Leases (OMLs) 52, 53 and 55, for which the bidders have already been shortlisted. Although a minority interest holder (40 per cent interest) in the assets, Chevron is the operator of those assets. However, in a move, reminiscent of the Shell asset sale in 2011, NNPC has issued a "Caveat Emptor" notice to buyers who might be under the impression that the operatorship of the blocks will transfer automatically to the buyers of Chevron's interests. According to NNPC, under the terms of the joint venture agreements, it has the right to operatorship of the blocks following divestment, because it is the majority shareholder. The Corporation said in the notice: "Chevron shall cease to be the operator upon assignment of their participating interest." "Therefore prospective buyers should note that automatic operatorship does not come with the acquisition of any of these blocks," it continued. BNP Paribas, the investment bank running the sale, had hoped that operatorship would not be an issue. Unfortunately, with spectacular timing, the issue of operatorship, which threatened to derail the earlier Shell divestments, has reared its ugly head. The shortlisted 11 will now have to chew over this problem as their financial backers may not be keen to provide funding where the investor does not have operatorship rights. This is particularly problematic because NNPC, working through its subsidiary, Nigerian Petroleum Development Company (NPDC), does not have the expertise to work the blocks effectively, especially as the number of blocks grows with each divestment. It remains to be seen whether the investors lining up for the Chevron assets will be deterred by this operatorship issue, which could very well have an effect on the final bids but at this crucial stage in the bidding process, all parties are saying very little. Commentators are suggesting that it will be a different matter for OMLs 83 and 85 which are to be put up for a spot auction following the lukewarm interest they have attracted as a

Eland Oil Shares Rise on Expectation of First Oil

HE price of OPEC basket of twelve crudes stood at $109.40 dollars a barrel on Wednesday, compared with $109.26 the previous day as the downward price trend since 06 September continues. There is increased market confidence as the international community mull over Russia's diplomatic solution to the Syrian crisis and the chances of military intervention continues to recede. Introduced on 16 June 2005, the new OPEC Reference Basket is currently made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

FINANCIAL NEWS

LEGAL

LAND Oil and Gas which is listed on the E London Stock Exchange's Alternative Investment Market (AIM) has received a buy recommendation from broker Canaccord on the back of news of first oil which is expected next month. Eland Oil, which is focused on Nigeria, expects to restart the 2 wells on Oil Mining Lease (OML) 40, which were shut in more than 6 years ago. The company is targeting production of 2,500 barrels a day from both wells although they will ramp up to 3,000 barrels a day from each well by drilling another 6 wells in the final quarter of this year. Canaccord's buy recommendation is based on a cost estimate of around $4 per barrel with payback on each new well expected within 3 months at $100 per barrel oil giving the block a potential to be extremely cash generative once production begins. In its note to clients, Canaccord said: "We look forward to production from two existing Opuama wells this autumn at an anticipated combined 2,500 barrels a day and this will clearly be an important milestone for the company." Eland Oil bought its 45 per cent stake for ÂŁ112 million, which it raised from AIM last year. At 11.50am on Tuesday, the stock was changing hands for 113p, valuing the group at a ÂŁ153mln. Eland Oil had expected to bring one of the two wells on the field, which were shut down in 2006, on stream this summer but has now revised the estimate to October. The flow from both is expected to come in initially at 2,500 barrels per day although the plan is for an incremental production. First oil will trigger its existing debt facilities. Chief Executive of Eland, Les Blair said: "The momentum of OML 40 development work is

REGULATORY

OPEC daily basket price stood at $109.40 a barrel Wednesday, 11 September 2013

in association with

FG Empanels Committee on Swift Subsidy Payment

Shell Begins Compensation Talks with Bodo Residents Over Oil Spills HELL is to begin compensation talks with S5 years thousands of residents of Bodo community after the oil spills from two pipelines in the Bodo and Gokana areas of Ogoniland, which villagers say wrecked their livelihoods. London law firm Leigh Day which is representing the communities, say the local environment was devastated by the two spills, depriving thousands of subsistence farmers and fishermen of their livelihoods. About 15,000 residents of Bodo, in Rivers State, are seeking compensation over the oil spills, which occurred in 2008. They are said to be asking for $200 million in compensation. Although Shell admitted liability for the spills in 2011 arguments have continued over the amount of oil spilled and how much damage was caused. While Shell says 4100 barrels were lost in the two spills, Leigh Day maintains it was between 500,000 and 600,000 barrels were spilled. Shell blames most of the spills on "widespread and continual criminal activity, including sabotage, theft and illegal refining, that leads to the vast majority of oil being spilled." Leigh Day partner, Martyn Day said they would ensure that Shell pays out a fair amount for the damage they have caused and put the Bodo Creek back into its pre-spill state, adding "A comprehensive clean-up is yet to get under way and the creeks remain extremely polluted." Shell said it hoped a deal could be reached with the villagers to provide "fair compensation, as well as a way forward on cleaning up the entire area affected by oil spills". "We're hopeful that an acceptable agreement can be reached with the Bodo community during next week's settlement negotiations in Nigeria," a Shell spokesman said.

HE Federal government has constituted a HEALTH AND SAFETY NEWS T committee to work with the Ministry of Finance to explore and reach agreement on how to fast track the payment of subsidy reimbursements on imported products in order to petroleum marketers. Constitution of the committee followed a stakeholders' resolution at a meeting on the review of operational issues that account for the lingering problem of delayed payments. The seven-man committee which represents different groups of players in the downstream petroleum industry is to be chaired by the Executive Secretary of the Major Marketers Association of Nigeria (MOMAN), Mr. Thomas Olawore, whose deputy is Mr. E. Kanawa of MRS Oil and Gas Limited. Representing the Ministry of Petroleum Resources in the committee are Mr. G.O Komolafe of the Pipeline and Products Marketing Company (PPMC), a unit of the Nigerian National Petroleum Corporation (NNPC), and Mr. O.O Agbaje of the Petroleum Products Pricing Regulatory Agency (PPPRA), who also serves as the secretary of the committee. Other members of the committee are Mr. Chris Igwe of Mainland Oil and Gas Limited, Mr. Collins Ogbu of Northwest Petroleum and Mr. Richard Eze of Dee Jones Petroleum. While the first four members represent the major marketers and government agencies in the committee, the rest represent independent marketers and depot operators in the market. With the constitution of the Olawore committee, it is expected that all parties in the subsidy arrangement will evolve a workable process of fast tracking claim verifications and payment of reimbursements to marketers within an agreed time frame.

Shell Sets Safety Record HELL Companies in Nigeria say they have reaSworked son to pat themselves on the back. They 10 months without lost-time injury, surpassing the previous Shell best set in the Pearl Gas-to-Liquid (GTL) project in Qatar in 2010. This means that staff and contractors of The Shell Petroleum Development Company of Nigeria Ltd (SPDC), Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Nigeria Gas (SNG) worked between December 2012 and September 2013 without any injury requiring time off work. The record translates to 78 million hours worked by a total of 31,973 people without any significant injury. Pearl GTL achieved 77 million LTI-free working hours during the construction phase in 2010. At its peak, it brought together 52,000 workers from 60 different countries, which required a major, co-ordinated safety effort. "This is a truly remarkable achievement, more so when we consider our challenging operating environment," said Markus Droll, Vice President Nigeria & Gabon. "Many have contributed to this, and it feels good to demonstrate safety performance which shows what can be done when everybody is focused on the same goal."

THE GUARDIAN, Monday, September 16, 2013

Insurance ‘64% of Nigerians are outside pension industry’ ATEST weekly poll results L released by NOIPolls has revealed that more than six in 10 Nigerians (64 per cent) did not have pension plans, indicating a potentially huge untapped pensions market in Nigeria. Also more than half of the Nigerians who currently have pension plans (54 per cent of 36 per cent) are subscribed to the contributory pension schemes for public organisations. Besides, it was further revealed that majority of Nigerians who have pension plans (73 per cent of 36 per cent) are satisfied with their current Pension Fund Administrators (PFAs), while those who claimed not to be satisfied (27 per cent of 36 per cent) attributed the lack of satisfaction to the nonreceipt of updates on their pension accounts.

Similarly, for those who do not have any pension plans, the major reasons cited are: “I am a student” (22 per cent), “I don’t have a job” (21 per cent) and “I don’t know much about pensions” (13 per cent). These are the key findings from the Pension Snap Poll conducted in the week of September 2nd, 2013. The Pension Reform Act 2004 enacted by the National Assembly established a contributory pension scheme for employees in public and private sectors. The scheme is fully funded, privately managed with a third party in custody of the funds and assets and based on individual accounts. It ensures that everyone who has worked receives his/her retirement benefits as and when due whether in the private or public sector. With the contributory

scheme, an employee and employer makes monthly contributions of a minimum of 7.5 per cent each of the monthly emoluments of the employee towards the retirement benefits of the employee. However in some cases, an employer can make all the contributions on behalf of the employee. The old pension schemes in Nigeria were not fully funded and this caused great problems in the management of retirement funds. The implementation of the contributory pension scheme introduced by the Pension Reform Act 2004 has addressed such problems to a certain extent; nevertheless it is not enough for Nigerians to be totally dependent on the scheme. In view of this, personal pension, which is not common in Nigeria, is an area that can be explored to augment the con-

tributory pension. Individuals regardless of their employment status could choose to save or invest money in order to make provisions for them at retirement. In view of these, NOIPolls conducted its latest poll on pension to explore the current state of pension in Nigeria, in terms of the proportion of Nigerians that have pension plans, the type of pension plans people subscribe to and the level of satisfaction with Pension Fund Administrators. Respondents to the poll were asked five specific questions. Firstly, in order to ascertain the proportion of Nigerians that have pension plans, respondents were asked: Currently, do you have a pension plan? Findings from this question revealed that overall majori-

ty (64 per cent) of Nigerians do not have a pension plan, while 36 per cent indicated they have pension plans. Analysis based on geo-political zone showed that the Southeast and the Northwest zones had the highest proportion of Nigerians without pension plans with 68 per cent and 67 per cent respectively and the Southwest zone (41 per cent) accounted for the highest proportion of respondents that have pension plans. Secondly, in order to gauge the type of pension plans Nigerians have, respondents indicted they have pension plans (36 per cent of the total) were asked: What type of pension scheme do you have? Overall, more than half of Nigerians who currently have pension plans (54 per cent of 36 per cent) are subscribed to the contributory pension scheme for public organisations. While 35 per cent have the contributory pension scheme for private organisations, it also emerged true that 11 per cent obtain their own personal pension independently. From the geo-political zone standpoint, the Southeast (76 per cent) and the North Central (73 per cent) zones accounted for the highest proportion of respondents that indicated public organisation pension scheme. Also the Southsouth (52 per cent)

and the Southwest (50 per cent) zones had the highest proportion of respondents that indicated private pension scheme, while the Northeast (42 per cent) zone had the highest number of people who have personal pension plans. In order to measure the level of satisfaction derived from the services of pension fund administrators, respondents who currently have pension plans were asked: Are you currently satisfied with your current pension fund administrator? Overall, majority of Nigerians (73 per cent of 36 per cent) who have pension plans are satisfied with their current Pension Fund Administrators. Comparatively, 27 per cent indicated lack of satisfaction for their pension fund administrators. Gauging the satisfaction according to geo-political zones revealed that the Southwest zone with 83 per cent (which also had a high proportion of respondents with the private organisations contributory pension) accounted for the highest proportion of respondents that are satisfied with their Pension Fund Administrators. In addition, the Northwest zone (54 per cent) had the highest number of respondents that are not satisfied with their current Pension Fund Administrator.

Law Union & Rock develops strategy for micro insurance one of the instruments that was used to bring the poor into conventional financial provide policies to meet the systems and at the same needs of different segments time improved their well of the society. being to give them a better of living. The Managing Director standard The managing director furof the firm, Mrs. Toyin Ogunseye said that this was ther explained that micropart of efforts to support the insurance could also be seen Market Development and as an instrument to actuRestructuring Initiative of alise the much-needed the National Insurance financial inclusion of the Commission to drive insur- population at the bottom of ance to the grass roots. the pyramid. She said that “We have already started this was because the convenour micro-insurance tional insurance did not by unit with its product and nature, cater for the poor or channel development ini- the low-income earners in society. tiatives,” she said. the She added that the firm was The Law Union & Rock boss commended NAICOM’s interested in meeting the efforts at developing the needs of the insuring public sector through MDRI. through the provision of According to her, the meas- innovative products, which ure introduced by the com- would be affordable to the market. mission creating more retail Ogunseye said that with awareness and increasing government support for the micro-insurance, the policyindustry, was increasing the holder would be encouraged appreciation of insurance in to build a savings culture the country. and create wealth for himOgunseye pointed out that self. She also said that when micro-insurance had the the policyholder had insurpotential to significantly ance against an insured improve the lives of the occurrence, he would not world’s poorest people and have to go through any hardpositively impact the devel- ship because his insurance opment of the informal sec- company would pay him his claims when such need tor. She explained that it was arose. AW Union and Rock L Insurance Plc, has set up a micro-insurance unit to

CIIN Head of Corporate Affairs, Mr. Joseph Obah (left)AGM/Head, Corporate Communications & Brand Management, Mr. Segun Bankole, Miss Insurance 2013/14, Sefiya Sadiq and MD/CEO, Sovereign Trust Insurance Plc, Mr. Olawale Onaolapo during Miss Insurance courtesy visit to Sovereign Trust Insurance Plc to solicit for management’s support for her pet project tagged “Say yes to life and education and say no to HIV/AIDS”.

STACO seeks revival of manufacturing sector By Joshua Nse HE Managing T Director/Chief Executive Officer, STACO Insurance Plc, Sakiru Oyefeso, has called on the government to help in the revival of the comatose manufacturing sector, which has let to closure of a number of companies in the industrial sector. He lamented that a number of these strategic companies had closed down as a result of the unfriendly business environment in the country, leading to relocation of these factories to our neighbouring countries. The STACO boss said that

these companies included those producing textiles, factories producing tyres, batteries among others. According to him, the closure of these factories, the near collapsed of the industry base was seriously affecting insurance industry in the country. He explained, “these are the corporate organisations, who actually understand the importance of insurance by insuring their assets, production lines, employees, they import machineries and raw materials, take up insurances for all their imports and pay the premium on time. It is unfortu-

nate that the nation is losing billions of naira yearly if you want to quantify in monetary terms. He said, “we want to appeal to the government, Minister of Trade and Investment, the National Assembly to put up friendly industrial policy that will revive the industrial base of this country, because apart from generating employment, any country without an industrial base is in for challenges of unemployment, insecurity and social problems, adding government should urgently take measures to revive the industrial base. Oyefeso, however, com-

mended the National Insurance Commission (NAICOM) for the MDRI programme designed to drive the market through the compulsory insurances, with a view to deepening the insurance penetration in this country. According to him, his company had developed a number of products made to the peculiar needs of our numerous clients. Besides, the economy has to improved remarkably so that those who understand the importance and relevance of insurance will have the means to buy insurance for their assets and lives

THE GUARDIAN, Monday, September 16, 2013

Stockwatch In association with Lead Capital

Stock Market Report for the week Friday, 6th September to Thursday 12th September, 2013 ajor equity markets around the M globe moved upward as their various indexes gained points. In our universe of sample equity markets; the S & P 500, NASDAQ and Dow Jones gained points by 2.18%, 2.08% and 2.65% respectively at the end of last week. In Europe, The German Dax index, FTSE 100 and France CAC 40 gained points by 2.66%, 1.76% and 2.80% respectively. In the Asia/Pacific region, Nikkei 225, Hangseng and BSE Sensex gained points by 2.29%, 1.57% and 4.23% respectively. In Brazil, the Bovespa gained points by 3.59% while Russia’s RTS INDEX gained points by 7.35%. On the local setting, NSE ASI closed at 36,224.44 recording 0.69% depreciation at the end of the week’s trading.

In the week, volume of shares traded appreciated by 3.00% while and value of shares depreciated by 0.83%. A turnover of 1.12 billion units of shares valued at N13.78 billion was recorded, in contrast to a turnover of 1.09 billion units of shares worth N13.89 billion that was recorded in the previous week. Volume this week was driven by activities in the shares of TRANSCORP, ACCESS, GUARANTY, ROYALEX, UBA, UNITYBANK, FBNH, ABBEYBDS, CONTINSURE and ZENITHBANK.

ANNOUNCEMENT URING the period under review, thirty two D (32) stocks recorded price appreciation same number that appreciated in the previous week, JOSBREW was first on the top gainers chart to close with 60.19%, followed by VONO with 42.52%, IHS with 41.80%, COURTVILLE with 12.50%, IPWA with 10.67% and CUTIX with 10.29%. Other gainers in the top ten categories were PORTPAINT with 9.98%, LEARNAFRICA with 7.88%, JBERGER with 7.62% and IKEJAHOTEL with 7.32%. On the flip side, Forty three (43) stocks depreciated in price last week as against the Forty six (46) that depreciated a week ago. INTENEGINS led on the price losers’ table with 27.17%, followed by VITAFOAM by 15.19%, MAYBAKER by 10.92%, CUSTODYINS by 10.60%, NNFM by 9.97%, EVANSMED by 9.88%, MULTITREX by 9.52%, NEIMETH by 7.89%, UAC-PROP by 7.29% and INTERBREW by 6.75%.

30 STOCKWATCH

COMPANY’S RESULT

Weekly Lead Equity Ratings (CONTINUED ON PAGE 51)

THE GUARDIAN, Monday, September 16, 2013

Homes & Property Mortgage asset registry system underway The registry provides potential buyers information about any encumbrance on the property they intend to buy and prevents fraudulent transactions arising out of the same asset being mortgaged to multiple lenders.

Professional Practice By Chinedum Uwaegbulam, Assistant Housing & Environment Editor RESH building blocks were again laid recently in Abuja, unto Nigeria mortgage finance sector, when operators, supervisory arm and key officials of government held talks to fashion an integrated web-based system that will act as central registry of property on which loans have been availed. The Guardian gathered that proposed Mortgage Asset Registry System (MARS) is being driven by Federal Ministry of Lands, Housing and Urban Development (FMLHUD) as part of the Financial System Strategy (FSS)2020 mortgage transformation agenda. The strategy aimed at establishing a safe and profitable mortgage market in the country by setting up appropriate infrastructure or institutions and re-modelling existing ones. FSS 2020 document noted that housing industry is one of the sectors of economy with immense potentials waiting to be translated into economic gain. This potential has not been realised over the years due to lack of cheap long term fund, weak and ineffective statutory verification processes and structure of housing delivery. The document had recommended the introduction of a new framework to strengthen property and security right, provision of affordable and long-term mortgage to all classes of Nigerians as well as enhancing the use of market mechanism to improve housing delivery. Specifically, MARS will be implemented by the FMLHUD, Central Bank of Nigeria (CBN), Mortgage Banking Association of Nigeria (MBAN), Federal Mortgage Bank of Nigeria (FMBN), office of the Surveyor General of the Federation, National Information Technology Development Agency (NITDA) and Security and Exchange Commission(SEC). The system would make it virtually impossible for any borrower to raise loans twice or more against the same property or raise loans using forged documents. In fact, loophole in the mortgage process has encouraged people with dubious character to take multiple loans on one property from different banks and Primary Mortgage Banks

(PMBs). Such people have deposited original title deeds in one bank for the first loan and by claiming that they have lost the originals, have managed to obtain a number of loans on certified copies of title deeds with other banks and PMBs. Similarly, some developers have duped many home subscribers by mortgaging the entire plot of land for project finance and selling the houses constructed on it without repaying the loan and have vanished from the scene. The proposed central system will unlock these anomalies and is expected to link the Federal and States land and mortgage asset registries, facilitate due diligence for mortgage transaction and timely access to land and mortgage asset data. Already, sub committees have been established, namely, information technology, budget and funding s o u r c e s , operations/technical/synergy, and advocacy with the set goals of achieving result and meeting targets. At the maiden meeting of the key stakeholders, federal capital territory and seven states were named for the pilot scheme. The states are Lagos, Rivers, Kano, Enugu, Adamawa, Kwara and Ondo. According to project timeline, designing of the information system will take place this year while sourcing funding for the programme, consultations and development of the central system as well as test running the scheme in pilot states will come up next year. The actual roll out of the first phase is planned in 2015. The Guardian gathered that in other climes, the governments established a central registry of mortgages to overcome the menace of multiple funding and keeping away wilful defaulters from the financial system. The registry provides potential buyers information about any encumbrance on the property they intend to buy and prevents fraudulent transactions arising out of the same asset being mortgaged to multiple lenders. The government also made it mandatory for all banks and financial institutions to register the mortgage created (security interest over property to secure loans), within 30 days of creation of mortgage. The banks and financial institutions access the registry website by paying a fee and verify if there are any encumbrances over the property to be funded.

Nigeria pledges support to UN-habitat on urban agenda Page 32

The United Cement Company (UNICEM) in Mfamosing, Akampka, Cross River State

Cement prices rise as Cross River enforces road tax Building Materials From Anietie Akpan, Calabar FFORTS by the federal government to salvage the wobbling housing industry may be further jeopardized as a newly introduced road tax fund by the government of Cross Rivers has started taking its toll on the building material commodities, especially, the cement. And the situation may get messier if the threat by the Coalition of Dedicated Logistics Services Providers (CDLSP) of the United Cement Company (UNICEM) in Mfamosing, Akampka, Cross River State sails through. Already, price of cement per 50kg bag has jumped from N1450 to N1600 and N1700 in Calabar and fears are rife that the price may further soar. But poised to check the trend, CDLSPS has threatened to withdraw its services, and this will further impact nega-

From the statistics, the prices of building materials, particularly, cement has continued to take a flight since the introduction and enforcement of the new road tax by the state government and the situation, is capable of paralyzing business, if not checked tively on the operations of the cement company. Briefing newsmen CDLSP of UNICEM, said the hike in transport levy by the state government from N500 to N12, 800 was not in the interest of business and the people and “if nothing is done to bring it down, obviously we will shut down, UNICEM and the people will be affected”. It was gathered that the State Internal Revenue Service charged a truckload of cement N500 as road maintenance levy for each trip, but the amount was raised to N12, 800 and UNICEM had taken the responsibility to pay the N500 per truck levy to ensure that price of cement remains low but stopped following the hike. The state government had

Kano, Urban Shelter in Abuja Evergreen Residences Page 33

recently passed the “Cross River State Road Maintenance Levy Law No: 6 of 2012” and the enforcement commenced September 2, 2013 but the General Manager of Iquasu, Mr. Charles Egbi who spoke on behalf of the coalition, said the law “is in its entirety too bitter a pill for us to swallow”. They maintained that the gains so far made by UNICEM in making cement product available at reasonable price may be lost because “any action therefore, which seeks to increase the final cost of cement at the retail market is completely at variance with the aspirations of the people and government and it is our belief that it is not the intention or wish of the sponsors

and those implementing the law in question. “We have been in dialogue with the state over the review of the road maintenance law levy since 2012, but unfortunately our inputs were not considered at all. All efforts to make the Government change their minds have failed and right now our members have begun to withdraw their trucks. The ones that are loading now are just doing so to vacate their trucks. The state is no longer safe for our business”. They further argued that already some companies in the state like Dunlop and lever brothers, Leventis have since relocated from the state and it will be dangerous allowing UNICEM to fold up CONTINUED ON PAGE 31

Natives seek genuine dialogue over Abuja Land Swap policy Page 45

THE GUARDIAN, Monday, September 16, 2013

32 HOMES&PROPERTY

Commission wades into Bauchi, Gombe boundary dispute Professional Practice From Anthony Otaru, Abuja N the wake of lingering INational interstate disputes, the Boundary Commission (NBC), has set up a joint technical committee to resolve outstanding issues in the Bauchi/Gombe and Bauchi/Taraba interstate boundaries. In a statement, the commission stated that the measure is line with the communiqué released at the end of its meeting with the affected communities and the joint technical committee. It has also directed the committee to traverse the Ningi/Sumails sector to ascertain the numbers of undemarcated sector, identify the position and numbers of uprooted or defaced pillars. The communiqué directed the Federal government to properly fund all institutions responsible for boundary management for quick and better results. ‘The Joint Field Team shall assemble at Sumaila Local government Area of Kano State on November 4, 2013 for the field exercise to take-off and to last for two weeks, the report of the completed work shall be submitted to the National Boundary

Commission not later than November 25, 2013 while a joint public enlightenment campaign shall be carried out by a committee of both states and affected local governments’’. Meanwhile, NBC DirectorGeneral, Dr. Muhammad Bose Ahmed at a meeting held recently in Bauchi appealed to the warring factions in both states to ensure that all border related problems are resolved without further delay. NBC Director -general who was represented at the meeting by Bashir Shettima pointed out that the 74 kilometer road along Ningi in Bauchi and Sumaila in Kano are the major flash points of the constant crisis. Contributing, the Governor Malam Isa Yuguda of Bauchi State, who received the National Boundary Commission delegation in his office, commended the efforts of the commission so far in dousing the tension in the area. It will be recalled that many people living around the community has at several times been engaged in crises that has left many dead including lives stocks following the bother disputes that has persisted for over a year running.

President Goodluck Jonathan (right) with UNHABITAT team of Mr. Andrew Cox and Prof. Oyebanji Oyeyinka at a brief meeting at the Intercontinental Hotel Nairobi, Kenya, recently

Nigeria pledges support to UN-habitat on urban agenda Urban Development HE Federal Government has T pledged his continuing support to the United Nations Human Settlements Programme (UN–Habitat) and promises to keep promoting the African Urban Agenda. President Goodluck gave the promise when he hosted the UN-Habitat team of Mr. Andrew Cox and Prof. Oyebanji Oyeyinka, at a brief meeting

recently at the Intercontinental Hotel Nairobi, on the side of the president’s three days historic state visit to Kenya. Jonathan who reflected on the significance of urbanization for Nigeria, especially Abuja and its development, reiterated his support on the emergent thinking on the new African urban agenda. Speaking Mr. Andrew Cox on behalf of UN-Habitat Executive Director, Dr. Joan Clos thanked

President Jonathan for the growing partnership with Nigeria, and his leadership in deepening support at federal and state levels. He also appreciated the leadership of the former Nigeria Minister of Lands and Housing Ms Amal Pepple as President of the Bureau of the UN-Habitat Governing Council. The team appealed for the political support of the President and Nigeria in driving urban issues in the sustain-

able development agenda and pointed to the link between sustainable development and the Habitat III conference, as well as the significance of this conference for Africa and Nigeria. Mr. Cox in his final remark informed President Jonathan about the anticipated breakfast meeting in New York, outlined how it might be used to drive the new African urban agenda, and encouraged him to attend.

THE GUARDIAN, Monday, Sepember 16, 2013

Prime Estates Kano, Urban Shelter in Abuja Evergreen Residences Projects By Tosin Fodeke NDIGENOUS property development firm, Urban Shelter has announced plans to replicate its real estate successes in another housing project within the Federal Capital Territory, which will provide 80 residential homes at the Durumi area of Abuja. The project, a partnership with the government of Kano State is tagged Evergreen Residences, and comes with luxurious apartments of three, four, five and six bedroom housing types. The 80- unit estate, which will be built on three hectare of land, is located at Durumi District, Cadastral Zone B02, moments away from the American International School. Featuring sandcrete blocks and facing brick for aesthetic appeal, the estate also comes with high quality walls, finished in combination of granite, glazed ceramics/vitrified tiles and stone coated aluzinc steel r o o f . Expected facilities will include, high quality casement windows, ceiling made of Plaster of Paris (POP), flush doors, and kitchens finished with exquisite cabinets. The units have various

The proposed units at the Evergreen Residences, Abuja house types, for instance, throughout the estate. The the four bedrooms semi- total area covered by a sindetached enjoys good loca- gle unit is: 434 square tion and neat planning metres. Each individual within the estate. The total family unit have car parking area covered by a single unit space dedicated to it, well and lighted. is 374square metres. The spaced According to developers of five bedroom detached units are advantageously the estate, the project is a located in a neat sequence vast improvement from its

previous developments, and a culmination of many years of experience in the housing sector. The estate, promises to promote harmonious living and encompass unique amenities such as swimming pool and malls, estate wide telecom system, Close

Circuit Television (CCTV), wireless internet service, finger print access to communal areas, sophisticated fire alarm system, Hi tech unit burglary system, rapid response emergency unit, Swimming pool, Landscaped and maintained gardens and dedicat-

ed communal recreational ‘green zones‘, state of the art gymnasium and exercise room, ample private and visitors parking, access to retail shops and restaurant/ coffee lounge, dedicated prayer room, 24 hour security and hour power supply.

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NIESV seeks partnership with states on property taxation Professional Practice GAINST the backdrop of A poor internal generated revenues by the tiers of government, estate surveyors have moved to improve the situation through harnessing potentials of the affected states, especially by way of property taxation. The move will form thrust of an upcoming National Mandatory Continuing Professional Development (MCPD) seminar by the Nigerian Institution of Estate Surveyors and Valuers (NIESV) in conjunction with Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON). The bodies will be exploring the theme: State Internally Generated Revenue (IGR): The place of property taxation on Thursday in Lagos. NIESV President, Mr. Emeka

Eleh, explained, the programme is part of their advocacy project, which requires the institution to advice government on ways to earn enough revenue and bring changes in policies. “In the area of IGR that is important in our economy, we believe the governments are not doing very well, and only few states like Lagos and River States can survive based on their IGR, which is not proper at all. And main component of IGR all over the world is land or property taxation.” He said unlike income tax, that most government base their IGR; property taxation is more reliable and stable income for the states, which can be made possible through members of the institution. According to him, the institution is clamouring for state governments to engage their members who are experts in

property taxation to unlock their internal generated revenues and bring about land reforms. He stated that such reforms will enable land owners have titles to their landed property. The chairman of the MCPD, Mr. Livingstone Iyanda said that the seminar would provide an advantage to all the stakeholders in the administration of property taxation as a veritable source of revenue and public infrastructure provision. “From the valuers to the various states lands officers, to the relevant tax officers, to the lawmakers at all levels; the seminar is packaged to expose the participants to all available sources of states internally generated revenue possible. He said: “ It is expected to guide the lawmakers at the three tiers of government in

the process of enacting workable legislation. It is also meant to provide the professional estate valuer in giving right counsel in ensuring proper basis of valuation and enforceable assessment. It is expected to be an eye-opener on how we can handle the subject of property taxation without discouraging real estate development and still keep rents within the scope of market-derived indices. “ The Technical Committee Chairman, Mr. Gbenga Olaniyan disclosed that the inability of various governments to utilize the services of valuers brings about loss of revenue and inappropriate assessment of properties. Olaniyan stated the globally such services such as land use charge assessment should be contracted to the private sector by the government to ensure better governance and internal revenue generation.

Eleh

Youths call for innovative approaches to sustainable urbanisation Urban Development AYORS, urban policy M makers, Islamic scholars, civil society and experts from over 30 countries have called upon the international community to intensify efforts to deal with urban challenges in the Muslim World by harmonising universal and Islamic approaches. The calls came at the first World Assembly of Islamic Cities, a two-day conference, which was held in the historic Islamic city of Qazvin in the Islamic Republic of Iran earlier this month and was attended by more than 400 dele-

gates. It was organised by the Middle East Regional Center of Best Practices and Local Leadership Programme (MERC-BLP), a regional partner of UN-Habitat, hosted by Qazvin Municipality, and supported by the Asian Mayors Forum, the Secretariat of Mayors of Metropolises Session, universities and the private sector. Senior Advisor the Iranian Supreme Leader, Dr. Ali Akbar Velayati underscored the serious challenges facing Islamic cities including unemployment among youth, dominance of informal settlements, inadequate urban basic services and conflicts

over land and called upon UN-Habitat to support Islamic cities. In his message to the Assembly, Executive Director of UN Habitat, Dr. Jon Clos noted that Islamic cities had their own specific identities and valuable experiences that are significant new perspectives for improving the quality of urban environment, prosperity and governance for all. He called for a Charter on Human Settlements in Muslim countries toward achieving universal development goals. The Mayor of Qazvin, Mr. Masoud Nosrati called upon delegates to further explore

the inherent and structural relationships between the urban environment and social relations. In his keynote address, Mr. Douglas Ragan, head of the Youth and Livelihoods unit said UNHabitat had a long history of working with Muslim countries and particularly welcomed the opportunity of partnering with young people in developing sustainable urban livelihoods and solutions. Mr. Ragan also invited the conference participants to the upcoming World Urban Forum to express and share their views on sustainable urban development. The Assembly highlighted

the significant role of Islamic principles and best practices in developing or restoring sustainable, environmentally sound, equitable, harmonious, prosperous and culturally cohesive cities in the Muslim World. The Declaration adopted a workplan that includes preparation of a Charter of Islamic Rights to the City, Atlas of Islamic Cities, Awards for Excellence in Islamic Cities, State of the Islamic Cities Report, collaborations between Muslim cities and an action plan for youth empowerment. As part of this, a competition

was announced which calls for people to send their multi-media representations of what an Islamic City should look like. The Declaration recognised the role of UN-Habitat in promoting sustainable urbanisation in the Muslim world and specifically applauded the best practice of the Global Land Tool Network for adopting the Islamic mechanism as a cross cutting dimension. A permanent secretariat has been funded and set up in Qazvin, Iran. The next World Assembly of Islamic Cities will be held in 2014 in Baghdad, Iraq.

THE GUARDIAN, Monday, September 16, 2013

HOMES&PROPERTY

Firm unveils automated property management tool Professional Practice By Tosin Fodeke ET to ease the seemingly difficulties that often go with property transaction, a real estate firm has launched a new digital tool that will improve professionals’ practice and enhances productivity. The property tool, known as Property Software comes under the auspices of Norris Greene HomesNG Limited. The software automatically manages properties, company website, marketing, social media, and customer relationship functions in a real estate company. Chief Executive Officer of the firm Mr. Segun Kalejaiye, in a statement, explained that the product, which is an all-inone office productivity software for real estate practitioners, is based on the latest technologies that can help increase productivity and compete better in the 21st century. According to him, the property software empowers organizations with a com-

The new automated software designed specially for the real estate professionals provides targeted marketing services to the residential, commercial and related products/services segments of the real estate industry plete customer relationship lifecycle management solution for managing organization-wide sales, marketing, customer support & service and property management in a single business system. Kalejaiye, an engineer, added that the tool is designed to store all information related to property conveniently in a central location, and in an organized manner, facilitating enhanced productivity “It accurately tracks business opportunities and identifies bottlenecks in the sales process in advance and effectively utilizes the existing customer data for future crossselling and up-selling opportunities. Other services which are available on the website, propertysoftware.com.ng, include, Auto-matching, which ensures that available customers always have

options to choose from. They can add, modify, and/or delete properties in their own website and across other channels, including a selection of social media channels available. Manage recurring transactions such as rents, utility bills, security, or supplemental fees, you may charge your tenants and let your software generate it automatically whether you remember or not. Property Software enables you to easily track all payments thereby easily reconciling your accounts with the landlords. “The Property Software’s Advanced Custom Run Match Module, as well as the strong basic search feature allows for matching customer requirements against property and can forward property details to the customer immediately.” Kalejaiye added

OAU architecture alumni, students plan 30th anniversary Architecture By Tosin Fodeke O mark its milestone T achievement, the Alumni and Students Association of the Department of Architecture Obafemi Awolowo University (IFASA), Ile Ife has announced plans to host an anniversary ceremony next month. The event, which is being held as a celebration of the 30th anniversary since the architecture Department of Obafemi Awolowo University, Ile Ife was set up, has been scheduled for

October 12 at Seven Star events centre, Ikeja Lagos. According to the events organizing committee, the objective is to strengthen the link between students and the alumni body, create an avenue to foster Mentorprotégé relationship between the students and alumni, provide financial, educational and moral support to the department, Curricular innovation and teaching, learning and evaluative process. The event will also mark the formally establishment of the OAU Architecture Alumni Association, forging

a deeper relationship among the alumni and reminiscing about old days in the university, and mark the 30th anniversary of establishing Ife Architecture Students’ Association (IFASA)-1982/1983 session to 2012/2013 session. Members of the committee include, Mr. Abiola Folami, Mr. Akinola George, Vice Chairman, Nigeria Institute of Architects (NIA) Lagos chapter, Mrs. Adeleye Titi , Lagos NIA Public Relations Officer, Akinyosoye Samson and President, IFASA, Akogun Samuel.

Mexico to host GEF 5th Assembly Urban Development EXICO will host the 5th M Assembly of the Global Environmental Facility (GEF) in Cancún, Quintana Roo, from May 25th to 30th, 2014 as stated in a Memorandum of Understanding signed by Fernando Aportela, Undersecretary of Finance and Public Credit, and Naoko Ishii, CEO and Chairperson of the GEF. Juan Manuel Gomez Robledo, Undersecretary for Multilateral Affairs and

Human Rights of the Ministry of Foreign Relations, and Rodolfo Lacy Tamayo, Undersecretary of Planning and Environmental Policy of the Ministry of Environment and Natural Resources, took part of the signing event. The Assembly is the governing body of the GEF and is integrated by its 183 member countries. The Assembly meeting is held every four years, and serves to review and evaluate general policies and the operational structure of the institu-

tion. Previous Assemblies have taken place in India (1998), China (2002), South Africa (2006) and Uruguay (2010). Since inception, the GEF has allocated an estimated amount of $11.5 billion leveraged with a co-financing of over $57 billion for more than 3,215 projects in 165 emerging countries. Next Spring, Ministers of State, high-level government delegations, as well as prominent environmentalists, parliamentarians, entrepreneurs, scientists and non-governmental organizations will meet in Cancún to review international environmental challenges for financing projects. Mexico is a founding member of the GEF and has received $414.1 million in grants to support 54 projects in the areas of biodiversity, climate change, persistent organic pollutants, land degradation and international waters. Additionally, Mexico has been involved in 29 regional and global projects. In the upcoming Assembly, Mexico will have the opportunity to describe successful GEFfinanced projects such as the Mesoamerican Biological Corridor, the Protected Natural Areas Program, and the development of a program for biodiversity and sustainable productive systems.

THE GUARDIAN, Monday, September 16, 2013

HOMES&PROPERTY

Cross River’s new road tax threatens UNICEM operations CONTINUED FROM PAGE 31 given thousands of jobs that will go and the general consequencies. UNICEM operates a value chain model where it concentrates on its core business of cement production while other necessary and equally important aspects of the business like transportation and distribution of its products are contracted out to experts in the respective fields and whatever affects the company also affect the service providers. In this regards, “we therefore appeal to the authourities to revisit the Cross River State Road Maintenance Law and Regulation as passed and reconsider it in other to make it more human and amiable and in line with good conscience form whatever perspective it may be viewed”. One of the distributors, Etim Okon of Etim E. Okon and Company Nigeria Ltd said, “We feel that government suddenly slamming a 12, 800 fee on us for what we were paying N500 for is too much for us based on the fact that Dangote cement is a little bit cheaper in the market. If we have to pay this N12, 800 and given the current price of cement, we would not be able to meet up based on the fact that the Federal Government has insisted we reduce the price of cement. UNICEM used to pay on our behalf and the government has not given us any reason for this sharp increase in price.”

Another distributor, Emmanuel Bassey, Manager of Ubotex Limited said, “The government has the upper hand in the affairs of the economy. But they should know that the challenge is that we may end up not buying from UNICEM again, if they try to enforce this on us. There would be no need for UNICEM. They should not forget that UNICEM is of great benefit to the state. We cannot do anything but we would be forced to go to Dangote to pick cement if they insist. Increasing a levy from N500 to 12, 800 is something we cannot understand. If they had even made it N1000 it would have been reasonable. “We are therefore appealing to the Cross River State government to reduce the price. The Federal Government has said that cement price should go down, but with this kind of situation it is very difficult. We are not saying we would not be paying our taxes. We will as law-abiding citizens. The state government should do something because if they go ahead with this, it is going to affect all of us in the state.” A driver of one of the trucks, Michael Ndem, said the situation was already telling on them as they have not been operating. “All the dispatch given to us has finished and it is affecting us a lot.” He said they were already paying N3, 000 for community development and N800 for their union per truck, hence the sharp rise is going to be diffi-

cult for them to cope with. Another driver, who gave his name as Okeke said the levy should remain at N500 as other charges they were already paying, was too much for them. Efforts to reach the chairman of the State Internal Revenue Service, Cletus Adie, proved abortive but a top official said following the cash crunch experienced by the state, they had to “harness all unharnessed revenues. “We have to work hard to increase our internally generated revenue as the state does not have money and we are looking at areas which we were not looking at before”. The sources further said, “the road maintenance levy is to assist government to maintain the roads as their trucks do a lot of damage to our roads. If they don’t want to pay then if it is possible for them, when they load their trucks they will make it fly to their destinations without using the roads, then we would not charge them. “Is it N500 we would use to maintain the roads? Each truck has to pay as they lift. The people cannot tell us they were not aware of this development, as we had been negotiating with them for some time. They are not the only company operating in Cross River State. We have other companies operating quarries in the state and they have been paying this levy since without complaining. Now it is being implemented with UNICEM there is a problem.”

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EU property prices up for first time since 2010, says global index Housing VERALL European house O prices have increased for the first time since 2010 part there is sharp divergence in performance between countries, according to the latest global index from Knight Frank. Prices in Europe were up

0.7per cent over the last 12 months. Turkey was the strongest, up by 12.2per cent and Greece the weakest, down by 11.5per cent year on year. The Netherlands and Hungary also experienced a poor time with price falls of 8.2per cent and 8.5per cent on an annual basis. The UK, after three years of

negative or stuttering price growth in its mainstream market, has found some traction. Prices rose by 2.6per cent in the second quarter. Mainstream prices in Greece, Spain and Italy are now 31per cent, 29per cent and 15per cent below their respective market peaks, according to official data and for the fourth consec-

utive quarter the bottom 10 rankings have all been occupied by European countries. Tight lending conditions, high levels of consumer debt and rising unemployment are depressing market activity in the European markets, according to the analysis from Knight Frank. Overall prices rose in 37 of the

‘Chinese firms hungry for overseas property investment’ Real Estate NVESTMENT by Chinese Ihave firms in overseas real estate grown spectacularly over the last three years, up from US$900 million in 2010 to US$5.6 billion in 2012, according to new figures. This year investment volumes have already exceeded those levels thanks to many high profile deals in key gateway cities, says the latest report from Savills Research China, with key cities like London, New York and Sydney regarded as safe investments. The firm adds that this trend is likely to continue for many years to come as China further integrates with the rest of the world and new sources of capital gain traction in overseas markets. Investment volumes could conservatively continue to grow at 20% per annum over the next decade. After being a net recipient of investment for more than two decades, China is beginning to send its money offshore. This process started with individuals picking up investment and self use residential properties, and continued as developers snapped up prime development sites and insurers and sovereign wealth funds pur-

Estate Surveyors’ housing summit Professional Practice IGERIA institution of N Estate Surveyors and Valuers (NIESV) through its faculty of housing has announced plans to host the second National Housing Summit. The occasion, which will take place on 8 of October at the Musa Yar’Adua centre, Abuja, from 10 am, is themed “Constraints To Housing Development In Nigeria”. Managing Director UPDC, Mr. Hakeem Oguniran, will speak on the sub-theme “Legal Constraints To Housing Development in Nigeria”, while President, Mortgage Bankers Association of Nigeria (MBAN), Mr. Femi Johnson, will speak on ‘Access to affordable Housing finance, a mirage?’ Also past President of NIESV, Mr. Nweke Umezuruike will speak on the topic, “Land Factor In Housing Development in Nigeria.” Other participants expected at the event, include members of housing corporations, property development companies, Real estate Developers Association (REDAN) as well as all professional bodies in the housing industry and the public.

chase prime assets and strategic property portfolios. Chinese individuals have long been subject to stringent capital controls, yet as the economy grows and integrates with the rest of the world much of this money finds its way into the property markets, the favoured investment product of many Chinese. While the percentage of Chinese nationals investing overseas is small, the absolute number compared with the

population of some of the first markets they invested in is huge. For example, property markets in Hong Kong and Singapore were inundated with wealthy Chinese buyers from 2008 to 2012, resulting in such a rapid growth in prices that the governments had to enforce tough stamp duties in order to restrain the amount of money flooding in. Chinese investors have now moved onto other markets where, although they account

for a relatively small portion of buyers, their numbers are rising rapidly, according to James Macdonald, head of Savills Research, China. He points out that Chinese nationals are seeking capital security, access to education and healthcare, permanent residency and citizenship. At the same time, a much stronger renminbi has made post global financial crisis investment opportunities seem much more affordable.

55 countries tracked and overall house prices around the world rose by 2.4per cent, the highest rate of annual growth since the second quarter of 2010. Dubai leads the annual rankings, recording price growth of 21.7per cent in the year to the end of June. The index says that emirate’s housing market has gained momentum since late 2012, while its prime market led the way, mainstream prices are now following suit. However, the index, which tracks the performance of mainstream house prices around the world, shows that Europe is the weakest performing world region. The medium term outlook is muted, and the report says that Europe has been the main drag on the global housing market’s performance in recent years. But it also points out that growing confidence is being tempered by deterioration in

the outlook for a number of the large emerging market economies. ‘The economies of some key emerging markets are showing signs of strain and this is being reflected in their housing markets performance,’ the report explains. For example, annual price growth in Brazil stands at 11.9per cent, down from 18.4per cent a year earlier. But the US housing market recovery appears to be on firmer ground, with its second consecutive quarterly rise. Nationally, prices rose by 10.2per cent in the last 12 months, with the cities of Atlanta and Chicago recording the strongest growth in the second quarter. “It is interesting to note that the world’s two largest housing markets, the US and China, are experiencing contrasting fortunes with quarterly growth reaching 7.1per cent in the US but hovering around 0 per cent in China,’ the report points out.

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THE GUARDIAN, Monday, September 16, 2013

Natives seek genuine dialogue over Abuja Land Swap policy Land Matters From Terhemba Daka, Abuja

of engaging in pubItralNSTEAD lic verbal attacks on the cenbody of Abuja’s indigenous people, otherwise known as Original Inhabitants Development Association of Abuja (OIDA) has asked the Federal Capital Territory (FCT) Minister, Bala Mohammed to open room for genuine dialogue, which they believe would foster peace and progress between both parties. Also, the indigenes urged the Minister to urgently put an immediate stop to media war some of his aides have been using to blackmail them. In a statement last week, OIDA said the verbal attacks on its members would only be counter-productive, as it has the capacity of destroying the minister’s image. OIDA says it has proof that one of the minister’s media personnel has been masquerading as a public opinion leader in newspaper articles and publications where he abuses the group, its top officials or FCT natives for rejecting government’s land swap policy without disclosing his position as a member of the minister’s media team. They said the official latest diatribe against OIDA appeared in a newspaper (not The Guardian) of September 10, 2013. The group also said it has evidences that press releases purported to be emanating from some sponsored Abuja indigenes meant to divide the people were written and emailed to journalists by the media aides of the Minister on behalf of the sponsored groups contrary to ethical standards. “If the minister’s aides are not out to ‘manufacture consent of Nigerians by all means’ for the Landswap policy through propaganda, why are they masquerading as opinion leaders on newspaper pages without stating that they are writing from the FCT minister’s office or on behalf of the FCT minister?” “Also, if the government is not sponsoring them, why not allow the so-called Abuja indigenes to write their own press releases or face the media like OIDA does? Why will a minister allow his media aides to be the mouthpiece of the sponsored persons if not aimed at dividing the people so that they can accept the landswap policy hook, line and sinker? “Why is the FCT administration taking some misguided indigenous youths to visit Mr. President, buying hilux vans and giving millions of naira to them to share to poor villagers if not because they want to cajole our people into rubber-stamping the landswap policy” the group asked. OIDA flayed the FCT Administration for not building more hospitals, opening more access roads or building more educational facilities in FCT but instead focuses its energies on land sharing and commercialization of FCTcontrary to the recommendations of Aguda panel report/Abuja masterplan that FCT should be a purely administrative capital. OIDA stated that, “instead of engaging in a contest of ideas through genuine dialogue free from Machiavellian tactics, the FCT administration has rather chosen to force the

They believe that the consistent verbal attacks by some aides of the Minister of the Federal Capital Territory (FCT) on the natives are provocative and would rather worsen the government-people relationship Landswap policy on our people using divide and rule ploys that will help no one. But the discerning Abuja natives at an OIDA congress meeting in Kwali on September 7, renewed the mandate given to the association to withdraw from the Ministerial Committee on the Implementation of FCT Landswap Program and Resettlement Matters set up by the Minister until such a time that their demand for a *30per cent sharing ratio for the affected communities to be held in a Community Trust Fund is accepted and implemented by FCTA and investors.”

“The recent diatribes against OIDA and its President, Danladi Jeji by some of the minister’s aides; Landswap Community Liaison Consultant, P.D Busa, an engineer, and others would only end up driving FCT natives away from Senator Bala Mohammed thereby leading to a squandering of the goodwill that the people have towards the FCT administration. Noting that it is a development association and not a political group, OIDA wondered why the Minister’s aides were accusing civil servants of belonging to the FCT natives’ umbrella body.

The group in one of its protest march in Abuja

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THE GUARDIAN, Monday, September 16, 2013

An illustration of a housing unit at the Maccido estate

Developer offers incentives in Abuja Maccido estate Housing By Emmanuel Badejo OR those that will subscribe FRoyal into a N2billion Maccido Estate, located at the Galadimwa District in the Federal Capital Territory, FCT, abuja, they have would get an incentive of enjoying free holiday apartments in Dubai and Malaysia, the developer, Messrs Nekonini Business and Properties Limited, has said. Chairman of the developing firm, Mr. Niran Akinsuyi, who disclosed this to journalists last week in Lagos, said the move is one of the packages on the stable meant to promote sales of the residential housing project, consisting of 76 units and described as “green Building.” The project, which consists of 26 blocks of 3-bedroom detached duplexes and 50

units of block of 5-bedroom detached duplexes, is estimated to cost N2 billion. It would sit on 20-hectres parcel of land; Skye Bank Plc is providing the funding leverage and the developer is using the medium to promote time-share apartment awareness in Nigeria. According to Akinsuyi, the project which is billed for completion within the next 12 months, has facilities like perimeter fencing, pipe borne water supply, alternative power supply to complement Power Holding Company of Nigeria, PHCN and road network within the vicinity. The interior will showcase fully equipped kitchens, dining area, washer and dryer, stereo, televisions, DVD players among others. Akinsuyi added: “As many timeshare apartments are located within existing general public resorts, their amenities

are the same as top-rated properties, and can include children’s activities, swimming pools, tennis, jacuzzi, golf and bicycles as well as spa and exercise facilities. Other features boating, skiing, restaurants and equestrian facilities on-site or nearby. NBPL is a real estate, community development and property investment company. They also encompass in other activities that range from sales, renovation and re-lease of existing buildings to the purchase of raw land for development and converting ideas to real properties. Backed by industry-leading technology and global research, Nekonini Business and Property Limited provide market-leading deals and transaction support to investors, corporates and homeowners for their personal and business property

Ogun city centre project will ease traffic congestion, says official Projects LANS by the Ogun authorP ities to build a 60-storey Abeokuta City Centre project would not hamper free flow of traffic in and around its immediate environment. This was the pledge of the State’s Commissioner for Housing, Mr. Daniel Adejobi in Abeokuta, last week during a joint road tour involving key officials of the ministry and the Urbanisma group of Malaysia, the State government’s partner of the project. Adejobi pointed out that the proposed edifice is being planned to attract both local and international investors, saying for this reason, the

State government would leave nothing to chance to ensure that it meets world class standard in all ramification. He added that government was not unaware that such a project would attract a large volume of both human and vehicular traffics because of the nature of businesses to be transacted; pointing out that the tour was embarked upon to have a clear view of likely flow of vehicular traffic and make plans to suit the proposed project. “We are aware of steps taken by governments in developed countries where similar projects had been embarked upon. You know of what we call Ogun stan-

dard, that is doing things appropriately, this is why we are having this exercise to have an idea of traffic flows and make necessary plans as we are getting ready to start. We intend to provide necessary controls such as traffic lights to facilitate free flow”, Adejobi stated. Also speaking, Mrs. Ashita Pereira of Urbanisma Group said the exercise, which started last week would last for 12 days. According to Pereira, the long period would afford the team to have and keep records of vehicular traffic along the axis, adding that it would help significantly in planning, designing and executing traffic schedule.

Delta begins civil servants’ housing estate Housing From Hendrix Oliomogbe, Asaba RESSED to deliver on its P mandate of housing provision, authorities at Delta state have commenced construction of a 150-housing unit estate dedicated to civil servants. Delta State Commissioner for Housing, Chief Paulinus

Akpeki while on inspection of the Delta State Housing Estate for Civil Servants, Ibusa, said the estate made up of 50 one bedroom, 50 units of two bedrooms and 50 units of three bedrooms, is a testament to the governments’ ambition to provide affordable housing. Akpeki urged contractors to expedite work on the

channeling of drainages and the carving out of roads. Site Engineer, LOC Metals and Minerals Limited, Mr. Peter Edeh who conducted the Commissioner round the carved out roads, said the progress of earth work and the channeling of drainages has been slightly slowed down because of the rain.

THE GUARDIAN, Monday, September 16, 2013

TheEnvironment UN climate finance talks target global shift towards green economy Climate Change By Chinedum Uwaegbulam, Assistant Housing & Environment Editor EPRESENTATIVES of governments, major financial institutions, civil society and private sector entities, recently wrapped up a year of deliberations on how to scale up climate finance at a meeting in Incheon in the Republic of Korea, concluding essential groundwork to accelerate the global shift of capital towards a green and more resilient economy . During the year-long open, interactive and transparent exchange, the experts worked on advancing a common understanding of elements of pathways to scale up climate finance and of how to strengthen policy environments that drive urgently needed investments in clean technology and increased resilience to climate change in developing countries. The three-day event in Incheon concluded the UNFCCC’s 2013 work programme on long-term climate finance, designed to look into pathways and policy environments to mobilize and deploy scaled- up climate finance to USD 100 billion per year by 2020 from public, private and alternative sources. “Governments have agreed that the global maximum temperature rise should not exceed two degrees Celsius, beyond which the effects of climate change would become increasingly unmanageable. In order to achieve this goal, far higher low-carbon investments will be required over the next few years, and the agreed USD 100 billion can catalyze and redirect these much greater investments. “By creating the right conditions and providing adequate financial tools, governments can vastly accelerate the shift of capital towards a green and more resilient global economy,” said UNFCCC Executive Secretary, Christiana Figueres. The Co-chairs of the UNFCCC work programme on longterm finance, Naderev Saño (Philippines) and Mark Storey (Sweden) will report back to

Clean technologies such as solar systems ensures low carbon resilient

The meeting on the UNFCCC’s 2013 work programme on long-term climate finance is designed to look into pathways and policy environments to mobilize and deploy scaled- up climate finance to USD 100 billion per year by 2020 from public, private and alternative sources governments meeting at the UN Climate Change Conference in Warsaw (November 11-22, 2013). The report will soon be made available and will also be used to inform a ministerial-level finance event in Warsaw. The activities of the overall UNFCCC long-term finance work programme in 2013 included technical workshops and webinars, as well as the virtual participation of stakeholders via webcast and social media. “The platform has provided an opportunity for practitioners from governments to informally exchange insights to inform, and not replicate, the climate negotiations. I believe the resulting common understanding will allow the

shift in investments to proceed faster,” said work programme Co-Chair Mark S t o r e y . “The building blocks for scaling up climate finance are becoming increasingly clear, and our joint understanding of precisely what needs to be done is growing. It is now a matter of translating this emerging understanding into political action,” said Co-Chair Naderev Saño. Meanwhile, worldwide action on climate change will get greater visibility thanks to a new public-private partnership agreement between the United Nations Climate Change secretariat and global communications company, Brodeur Partners. The agreement aims to

strengthen the secretariat’s Momentum for Change initiative, which showcases concrete examples of how businesses, governments and other stakeholders are tackling climate change. Brodeur Partners will provide expert communications advice and support to the Momentum for Change initiative to help it better deliver its goals of highlighting on-the-ground climate action and building broad-based support for a universal global agreement on climate change by 2015, to take effect from 2020. Momentum for Change aims to create a public platform that raises awareness about concrete mitigation and adaptation actions being implemented by a wide range of

Figueres stakeholders at the regional, national or local levels. The initiative seeks to demonstrate the multiple benefits of addressing climate change and to transform misperceptions surrounding taking action on climate change “Building the case for faster action and deeper ambition on climate change requires good communications,” Figueres said. “Our new relationship with Brodeur Partners will help refine and

strengthen our communications efforts so we can shine a light on the many inspiring examples of climate action underway and build a groundswell of support that makes it easier for others to take similar action.” Under the terms of the agreement, Brodeur Partners will provide pro-bono communications support to the United Nations Climate Change secretariat until December 2013. The secretariat and Brodeur Partners will work together to develop a strategic plan that guides Momentum for Change’s communications activities. Brodeur will rigorously analyze the Momentum initiative and its social media efforts, as well as work with key secretariat staff to fine tune Momentum’s overall messaging. The secretariat plans to leverage its enhanced communications capacity to inspire decision makers to support immediate and ambitious climate action. “Brodeur Partners is proud to partner with the United Nations Climate Change secretariat to help build visibility for the innovative projects highlighted by the Momentum for Change initiative,” said Brodeur Partners Executive Vice President David Zucker. “We design communications programs that don’t just change minds, they change behaviours - in this case, taking action to address climate change.” With 195 Parties, the United Nations Framework Convention on Climate Change (UNFCCC) has near universal membership and is the parent treaty of the 1997 Kyoto Protocol. The Kyoto Protocol has been ratified by 192 of the UNFCCC Parties. For the first commitment period of the Kyoto Protocol, 37 States, consisting of highly industrialized countries and countries undergoing the process of transition to a market economy, have legally binding emission limitation and reduction commitments. The ultimate objective of both treaties is to stabilize greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous human interference with the

Ebonyi explains rationale for N16.4b water scheme Water Resources From Leo Sobechi, Abakaliki BONYI state government last week justified the rationale behind investing a whooping sum of N16.4billion on water project, saying the project would outlive many administrations after him, if properly maintained. Governor Martin Elechi, made this disclosure while receiving a delegation led by the Secretary of National Planning Commission, Mr. Ntufam Fidel Ugbo, who were in the state for the assessment of developmental projects in the state. According to the governor, the

The water scheme became very necessary so as to safe the state and her people from the challenge of water shortage on one hand and its supply to other parts of the state on the other the water scheme constructed at Oferekpe, Ikwo council of the State, was designed to serve the entire state for the next 45 years, stressing that water and sanitation play major role in the eradication of the guinea worm scourge that ravaged the state in recent past. The governor disclosed that, already efforts are on to reticulate water from the scheme to other parts of the state. Represented by the State Commissioner for Public

Utilities, Mr. Ben Okah, the delegation was led to assess the relay route of water pipeline from Abakaliki old water scheme intake to the hilltop treatment plant in the state capital city, before inspecting the Oferekpe water scheme. He disclosed that the state spent the sum of N7.2 billon on the Oferekpe water treatment plant while additional N9.2 billion was used to procure pipelines. He added that it would cost his administration

N36 billion to reticulate water from there to all the communities in the state. “The target of this administration,” he elaborated, “is to reticulate the water straight to the two designated central reservoirs, from where it would be reticulated to the capital city of the state, before going to communities in the state”. “The Oferekpe water scheme is designed to serve the entire state for the next 45 years and it will be reticulated straight to

the two central reservoirs. We have primary, secondary and tertiary reticulation designs. It will be reticulated to the central reservoir as its primary source, to the capital city as our secondary source and to all the communities in the state,” he reiterated. He further told the visitors that his administration was constructing a bio mass plant that could generate 5,000 megawatts of electricity to ensure constant supply of electricity to the treatment plant for optimum water supply even as he pleaded with the federal government and donor agencies to assist the government speed up

the ongoing reticulation project. In his reaction, Ugbo, described the structures on ground as impressive. He remarked that while the state will not invest in water again, it would only invest rather on projects to ensure that the water was reticulated to all nooks and crannies of the state. “It is understandable why the state government had to invest such huge amount of resources in the sector because it used to be guinea worm infested area, though it has been eradicated but there is need to continue to ensure that it does not return,” he added.

THE ENVIRONMENT 49

THE GUARDIAN, Monday, September 16, 2013

LSWRC urges operators’ support on wastewater discharges The Environment OWARDS ensuring global T best practices in waste water management, Lagos

Fruit wastage contributes significantly to water waste

Food waste harms climate, water, biodiversity, says report The Environment HE waste of a staggering 1.3 T billion tonnes of food per year is not only causing major economic losses but also wreaking significant harm on the natural resources that humanity relies upon to feed itself, says a new FAO report. Food Wastage Footprint: Impacts on Natural Resources is the first study to analyze the impacts of global food wastage from an environmental perspective, looking specifically at its consequences for the climate, water and land use, and biodiversity. Among its key findings: Each year, food that is produced but not eaten guzzles up a volume of water equivalent to the annual flow of Russia’s Volga River and is responsible for adding 3.3 billion tonnes of greenhouse gases to the planet’s atmosphere. And beyond its environmental impacts, the direct economic consequences to producers of food wastage (excluding fish and seafood) run to the tune of $750 billion annually, FAO’s report estimates. “All of us - farmers and fishers; food processors and supermarkets; local and national governments; individual consumers — must make changes at every link of the human food chain to prevent food wastage from happening in the first place, and re-use or recycle it when we can’t,” said FAO Director-

About 54 per cent of the world’s food wastage occurs “upstream” during production, post-harvest handling and storage, according to FAO’s study. While 46 per cent of it happens “downstream,” at the processing, distribution and consumption stages. General José Graziano da Silva. “We simply cannot allow onethird of all the food we produce to go to waste or be lost because of inappropriate practices, when 870 million people go hungry every day,” he added. As a companion to its new study, FAO has also published a comprehensive “tool-kit” that contains recommendations on how food loss and waste can be reduced at every stage of the food chain. The tool-kit profiles a number of projects around the world that show how national and local governments, farmers, businesses, and individual consumers can take steps to tackle the problem. UN Environment Programme (UNEP) Executive Director, Achim Steiner, said: “UNEP and FAO have identified food waste and loss —food wastage— as a major opportunity for economies everywhere to assist in a transition towards a low carbon, resource efficient and inclusive green economy. Today’s excellent report by FAO underlines the multiple benefits that can be realized— in many cases through simple and thoughtful measures by for example households, retailers, restaurants, schools and

businesses— that can contribute to environmental sustainability, economic improvements, food security and the realization of the UN Secretary General’s Zero Hunger Challenge. We would urge everyone to adopt the motto of our joint campaign: Think Eat Save - Reduce Your Foodprint!”. UNEP and FAO are founding partners of the Think Eat Save Reduce Your Foodprint campaign that was launched earlier in the year and whose aim is to assist in coordinating worldwide efforts to manage down wastage. About 54 per cent of the world’s food wastage occurs “upstream” during production, post-harvest handling and storage, according to FAO’s study. 46 percent of it happens “downstream,” at the processing, distribution and consumption stages. As a general trend, developing countries suffer more food losses during agricultural production, while food waste at the retail and consumer level tends to be higher in middleand high-income regions — where it accounts for 31-39 percent of total wastage — than in low-income regions (4-16 percent). The later a food product is lost

along the chain, the greater the environmental consequences, FAO’s report notes, since the environmental costs incurred during processing, transport, storage and cooking must be added to the initial production costs. Several world food wastage “hot-spots” stand out in the s t u d y : Wastage of cereals in Asia is a significant problem, with major impacts on carbon emissions and water and land use. Rice’s profile is particularly noticeable, given its high methane emissions combined with a large level of wastage. While meat wastage volumes in all world regions is comparatively low, the meat sector generates a substantial impact on the environment in terms of land occupation and carbon footprint, especially in highincome countries and Latin America, which in combination account for 80 percent of all meat wastage. Excluding Latin America, high-income regions are responsible for about 67 percent of all meat wastage. Fruit wastage contributes significantly to water waste in Asia, Latin America, and Europe, mainly as a result of

extremely high wastage levels. Similarly, large volumes of vegetable wastage in industrialized Asia, Europe, and South and South East Asia translates into a large carbon footprint for that sector. A combination of consumer behavior and lack of communication in the supply chain underlies the higher levels of food waste in affluent societies, according to FAO. Consumers fail to plan their shopping, overpurchase, or over-react to “best-before-dates,” while quality and aesthetic standards lead retailers to reject large amounts of perfectly edible food. In developing countries, significant post-harvest losses in the early part of the supply chain are a key problem, occurring as a result of financial and structural limitations in harvesting techniques and storage and transport infrastructure, combined with climatic conditions favorable to food spoilage. To tackle the problem, FAO’s toolkit details three general levels where action is needed: High priority should be given to reducing food wastage in the first place. Beyond improving losses of crops on farms due to poor practices, doing more to better balance production with demand would mean not using natural resources to produce unneeded food in the first place.

Enugu acquires site for open range zoo, engages consultant Conservation From Leo Sobechi, Abakaliki N a bid to maximise its tourist potentials, Enugu State Government has acquired 200 hectares of land at Attakwu in Enugu South local council to construct an open range zoo, which will be developed in conformity to all international conventions of animal conservation and environmental preservation. The State’s Commissioner for Culture and Tourism, Ozo Joe Mmamel, said the government was in hurry to develop the zoo even as he

commended the Traditional Ruler and people of Attakwu community for their understanding and magnanimous display of enthusiasm for the project. Ozo Mmamel who spoke to The Guardian, extolled the luxuriant vegetation and scenic beauty of the site, pointing out that the presence of a big lake comprising the Ukata and Ogbede lakes make the environment very suitable for the project. The Commissioner noted that the project would be undertaken through a public private partnership arrangement, adding that the first steps involve the

seclusion and protection of the site as well as construction of access road to the zoo. He explained: “What we are trying to do there is not a caged zoo but an open range sanctuary. The animals would be watched from a distance yet it is not a wild life; it is different from a wild life. The Ministry of Works and Infrastructure is presently scrapping the way to Attakwu leading to the exact site of the zoo. “Expression of interest of Eco consultants as architects has been engaged to do the technical analysis. It shall be by PPP (Public Private Partnership) and the bids for

the consultants to develop a master plan would be opened on September 26, 2013”. Ozo Mmamel disclosed that already the design structure of the protection site is being done by the Ministry of Works, which is working on “what would be the best security fence so that the animals cannot escape; that is part of what the state is doing. It is our responsibility to secure the place”. He said the government has tasked the consultants to ensure that the architectural design should be all encompassing adding, “we want to give it to the professionals to

come out with the best design concept of all what should be found there, including social amenities and leisure spots to be run directly or through partners”. His words: “The design will lead to raising the bill of quantities; we are in hurry especially now that the 200 hectares of land near the beach has been acquired. It would be a state of the art zoo and once we get it done international community will come in. So we want to reflect all conventions of animal conservation and environmental preservation”.

State Water Regulatory Commission (LSWRC) has called for partnership between both regulators and operators of businesses producing large volumes of waste water. Speaking at the Annual National Conference of Association of Fast Food Confectioneries of Nigeria (AFFCON) in Lagos, the Executive Secretary, Lagos State Water Regulatory Commission, Mrs. Tanwa Koya said the collaboration is necessary to chart ways to curb the menace of uncontrolled discharge of wastewater with the potential of contaminating both potable and groundwater resources. She said it was high time Nigerians imbibed the culture of voluntary compliance, saying such helps businesses and eases governance. Koya, whose agency is saddled with the responsibility of ensuring proper delivery of water supply and sewerage (waste water management services) in Lagos state, noted that effective collaboration between both parties would further lead to the much cherished voluntary compliance as it is the practice in the developed world. “We at Lagos State Water Regulatory Commission believe that the future of regulation is not in enforcement but voluntary compliance and self regulation. We should know about the standards and things we need to do so that the effect will show both in businesses and in the environment”, she said. In realization of this fact, she noted that the Commission’s

G20 countries agree to phase down potent greenhouse gas Climate Change ORLD leaders have agreed W to phase down the use of certain potent greenhouse gases known to damage the climate. They met under the Group of 20 Summit held in St. Petersburg, Russia, The White House cited the agreement to cooperate on phasing down the use of hydrofluorocarbons (HFCs), gases used in refrigerators, air conditioners and some industrial equipment, as one of the “most significant agreements” of the summit. “This commitment marks an important step forward toward addressing HFCs - highly potent greenhouse gases that are rapidly increasing in use - through the proven mechanism of the Montreal Protocol,” the White House said in a fact sheet. Addressing HFCs also has climate benefits and can reduce as much as 90 billion tonnes of carbon dioxide (CO2) equivalent between now and 2050, the White House said. Separately, China and the United States, the world’s top greenhouse gas emitters, agreed to take new steps on an HFC phase down following there June agreement to cooperate.

THE GUARDIAN, Monday, September 16, 2013

Weekly Lead Equity Ratings

Lead Capital Stock Valuation

STOCKWATCH 51

THE GUARDIAN, Tuesday, September 18, 2012

THE GUARDIAN, Monday, September 16, 2013

STOCKWATCH

A top down approach to investing INTRODUCTION Most investors struggle with the art of picking stocks. Should they base their decisions solely on what the company does and how well it does it? Or should they focus more on larger macroeconomic trends, such as the strength of the economy, and then determine which stocks to buy? There is no right or wrong answer to these two questions. However, investors should develop systems that help them achieve their investment goals. The second option mentioned is referred to as the top-down investing approach to the market. This method allows investors to analyze the market from the big picture all the way down to individual stocks. This differs from the bottom-up approach, which begins with individual stocks' fundamentals and eventually expands to include the global economy. This article will concentrate on the tional step in the process. This final phase of the top-down approach process used when investors implement the macro-to-micro style can often be the most intensive, because it involves analyzing individual stocks from a number of perspectives. referred to as the top-down approach. Fundamental analysis includes a variety of measurements such as price/earnings to growth ratio, return on equity and dividend yield, START AT THE TOP: THE GLOBAL VIEW Because the top-down approach begins at the top, the first step is to name a few. An important aspect of individual stock analysis will to determine the world economy's health. This is done by analyz- be the company's growth potential over the next few years. Ideally, ing not only the developed countries but also emerging coun- investors want to own a stock with a high growth potential, because tries. A quick way to determine an economy's health is to look at it will be more likely to lead to a high stock price. gross domestic product (GDP) growth over the past few years and Technical analysis will concentrate on the long-term weekly charts, the estimates going forward. Often, the emerging market coun- as well as daily charts, for an entry price. At this point, the individual tries will have the best growth numbers when compared with stocks are chosen and the buying process begins. their mature counterparts. Unfortunately, because we live at a time in which war and geopo- THE POSITIVES OF TOP-DOWN litical tensions are heightened, we must not forget to be mindful Proponents of the top-down approach argue that the system can of what is currently affecting each region of the world. A few help investors determine an ideal asset allocation for a portfolio in regions and countries throughout the world will fall off the radar any type of market environment. Often a top-down approach will immediately and will no longer be included in the remainder of uncover a situation that may not be appropriate for large investthe analysis, simply due to the amount of financial instability that ments into equities. The ability to keep investors from over-investing in equities during a bear market is the biggest pro for the system. could wreak havoc on any investments. When a market is in a downtrend, the probability of picking winning investments drops dramatically even if the stock meets all the ANALYZE THE TRENDS After determining which regions present a high reward-to-risk required conditions. When using the bottom-up system, an investor ratio, the next step is to use charts and technical analysis. By look- will determine which stocks to buy before considering the state of ing at a long-term chart of the specific countries' stock index, we the market. This type of approach can lead to investors being overly can determine whether the corresponding stock market is in an exposed to equities, and the portfolio will likely suffer. uptrend and worth analyzing, or is in a downtrend, which would Other benefits to the top-down approach include diversification not be an appropriate place to put our money at this time. These among not only top sectors, but also the leading foreign markets. first two steps can help you discover the countries that would This results in a portfolio that is diversified within the top investment-worthy sectors and regions. This type of investing is referred to match your wants and needs for diversification. in some small circles as "conversification," a mixture between concentration and diversification. LOOK TO THE ECONOMY The third step is to do a more in-depth analysis of the economy along with the stock market's health in particular. By examining THE NOT-SO-POSITIVES OF TOP-DOWN INVESTING the economic numbers such as interest rates, inflation and So far, the top-down approach may sound foolproof; however, employment, we can determine the current market strength and investors must consider a few other factors. First and foremost, there have a better idea of what the future holds. There is often a diver- is the possibility that your research will be incorrect, causing you to gence between the story the economic numbers tell and the miss out on an opportunity. For example, if the top-down approach indicates that the market is set to continue lower in the near future, trend of the stock market indices. The final step in macro analysis is to analyze the major stock mar- it may result in a lesser exposure to equities. However, if your analyket indices. Both fundamental and technical analysis can be used sis is wrong and the market rallies, the portfolio will be underexas barometers to determine the health of the indices. The mar- posed to the market and will miss out on the rally gains. ket's fundamentals can be determined by such ratios as price-to- Then there's the problem of being under-invested in a bull market, earnings, price-to-sales and dividend yields. Comparing the num- which can prove to be costly over the long term. Another downfall to bers to past readings can help determine whether the market is at the system occurs when sectors are eliminated from the analysis. As a level that is historically overbought or oversold. Technical analy- a result, all stocks in the sector are not included as possible investsis will help ascertain where the market is in relation to the long- ments. Often a leader in the sector is overlooked due to this process term cycle. Use charts that show the past several decades and zone and will never make its way into the portfolio. Finally, investors could down the time horizon to a daily view. For example, indicators miss out on "bargain" stocks when the market is near lows. such as the 50-day and 200-day moving averages help us find the current market trend and whether it is appropriate for investors FIND WHAT YOU'VE BEEN LOOKING FOR In the end, investors must remember there is no single approach to to be invested heavily in equities. So far, our process has taken a macro approach to the market investing and every approach has its own pros and cons. One of the and has helped us determine our asset allocation. If, after the first keys to becoming a successful long-term investor is finding a system few steps, we find that the results are bullish, there is a good that best fits your goals and objectives. chance a majority of the investment-worthy assets will be from the equities market. On the other hand, if the outlook is bleak, the allocation will shift its focus from equities to more conservative investments such as fixed income and money markets.

Yield investing: dividends, earnings and FCF

MICROANALYSIS: IS THIS INVESTMENT RIGHT FOR YOU? Deciding on an asset allocation is only half the battle. The next integral step will help investors determine which sectors to focus on when searching for specific investments such as stocks and mutual funds. Analyzing the pros and cons of specific sectors (i.e. health care, technology and mining) will narrow the search even further. The process of analyzing the sectors involves tactics used in the prior approach such as fundamental and technical analysis. In addition to the mentioned tools, investors must consider the long-term prospects of the specific sectors. For example, the emergence of an aging baby boomer generation over the next decade could serve as a major catalyst for sectors such as health care and leisure. Conversely, the increasing demand for energy coupled with higher prices is another long-term theme that could benefit the alternative energy and oil and gas sectors. After the entire amount of information is processed, a number of sectors should rise to the top and offer investors the best opportunities. The emergence of ETFs and sector-specific mutual funds has allowed the top-down approach to end at this level in certain situations. If an investor decides the oil and gas sector must be represented in the portfolio, he or she has the option of buying an ETF or mutual fund composed of a basket of oil and gas stocks. Instead of moving to the next step in the process and taking on the risk of an individual stock, the investor may choose to invest in the entire sector with an ETF or mutual fund. However, if an investor feels the added risk of selecting and buying an individual stock is worth the extra reward, there is an addi-

Earnings yield is the inverse of the popular price/earnings ratio. Like the dividend yield, the higher the earning yields, the more attractive the investment. Earnings yield is extremely useful for comparing various markets. For example, if the current average T-Bills yield is 3.5% and the earnings yield for the stock market is 5%, then the stock market is undervalued on an earnings basis compared to the bond market. Company shares trading at an earnings yield greater than 5% will be considered undervalued compared to the market. The criticism of using the earnings yield, like the P/E ratio, is that earnings are easily manipulated. And because of the potential for creative accounting to impact earnings, some investors prefer to use free cash flow as a truer measure. FREE CASH FLOW YIELD Free Cash Flow (FCF) yield is the annualized FCF per share divided by the current share price. FCF yield is popular with investors who believe the true measure of a company’s operating strength is sought by following the cash. FCF is the cash left over after paying all the operating expenses and capital expenditures, or operating cash flow minus capital expenditures. Determining how much cash a company generated, after paying its operating expenses and other ongoing costs to keep itself operating, and comparing that to the price per share provides the company's true value. The higher the FCF yield, the more attractive the investment. The FCF yield points to the fact that investors would like to pay as little as possible for as much earnings as possible. Similar to earnings yield, the FCF yield can be used to compare companies across the same or different industries. WHICH 'YIELD' MAKES SENSE? Are there advantages to using one yield measure over another? That depends on the investor. No one measure is the “holy grail." Each has its critics and proponents. Dividend yield is perhaps the most frequently used yield measure. It is also the one that is left to the company's discretion, because dividends can be increased, decreased or suspended by the company at any time, although companies try not to reduce dividends because it is a negative signal. Therefore, dividend yield is not the best yield measure when looking to value a company, but it can indicate a company's general trajectory. Investors will often compare dividend yield to the yield on 10year FGN Bond (a riskless asset) as a proxy for stock market attractiveness. Secondly, the yield level or percentage change can give investors foresight into company management's expectations of future cash flows and growth prospects. Lastly, dividend yield can be used in conjunction with other measures. For example, FCF provides insight into the cash generated after expenses. If the FCF is low and the dividend yield is high, this indicates a mismatch in the investment's valuation using both metrics and should raise a red flag for the analyst or investor. In contrast, if the FCF is high and the dividend yield is low, the company could be signaling a future acquisition or other growth investment that could be a positive catalyst for the stock. FCF yield and earnings yield are two measures that can be used to value a company and compare it to other investments over time. These yields look at valuation in two ways, the former using cash flow and the latter using earnings. Although proponents and critics argue about which measure is a better indicator of “true earnings,” both can be used to find strong companies. Take the following example: In this example, Stock B has a higher earnings and FCF yield than A, which says that the stock appears undervalued on both measures. Also, one can notice that the earnings yield has a

larger spread than the FCF yield, which should make the investor look deeper into the financials to see where the cash is going or what makes the company's earnings much higher.

INTRODUCTION There are numerous ways to value investments, and many investors prefer a specific valuation method. For some it may be the often used In another example: price-to-earnings multiple. For others it may be revenue growth, and still others may look at price momentum. Yield investing is one way to value a stock by comparing the current price to various factors that produce income from an investment. There are many ways to measure yield - three common ones are dividend yield, earnings yield and free cash flow yield. In this example, Stock B has a higher earnings yield but a lower FCF yield, which can lead to two conclusions. The first is that DIVIDEND YIELD earnings are being propped up by non-cash items like depreciDividend yield is calculated by dividing the annual dividend per ation. The second conclusion is that FCF is being reduced by share by the price per share or the annual dividend by the market large capital expenditures. cap. A high dividend yield could reflect stocks that are undervalued and will provide a higher return. To determine if a dividend yield is Using the two yields in conjunction with each other provides a high, it is often compared to the market yield. For example, the aver- clearer picture of the company’s valuation than either measure age dividend yield for the Nigerian Stock Market over the last four alone. Although earnings and FCF yields look backward, using years leading up to 2013 is 4.5% %. Using this as a benchmark, any yield these measures together with dividend yield may provide above this mark is attractive. Rising dividend yield can be the result some forward-looking insight into the management’s expectaof two occurrences: a falling stock price or a rising dividend payout, tions of future earnings. the latter being preferable. Another use of dividend yield is to compare it to the yield average T-Bills yield. If an investment's dividend CONCLUSION yield is greater than the T-Bills, then that investment is attractive Dividend, earnings and FCF yields are applicable measures on given that the risk profile is not too high. their own, although their limitations are noteworthy. Earnings Yield Understanding the inputs that go into each calculation better Earnings yield is the last 12 months of earnings per share divided by prepares the investor for the measure's usefulness. But used the current price per share. The earnings yield measures how much together, these yield measures can paint a clear picture of a return an investment in a company earned over the past 12 months. strong or weak potential investment.

THE GUARDIAN, Monday, September 16, 2013

BusinessInterview How to overcome challenges in John Ugbe is the Managing Director of Multichoice Nigeria. While reflecting on the 20 years of the company’s operations in the country, he unfolds the strategies that have made the organization sustained its foothold as a near monopolist in the sector, over the years. He spoke with Business Editor, ADE OGIDAN and ADEYEMI ADEPETUN. Excerpts. UlTICHOICE has been operating in the M country for the past 20 years. What has been the pains and gains of your operations so far? Before we look at pains and gains, I need to stress that to us, the most important thing is that we have been able to touch lives. Really, we have touched lives in different ways, but the most important one has been through entertainment that we bring to our subscribers. Nigeria is a very vibrant country. From the gains perspective, there are lots of opportunities, which anyway, informed our decision to invest in the country. Indeed, we were, very early in this environment, focused on touching lives and that has culminated into our success and the growth of the company. In the areas of pains, we were never immuned from what other businesses are going through in the country. Nigeria is a developing country and there is still room for infrastructural development. As a PayTv company, we were highly impacted by power. I will say maybe that is the biggest pain for us. It is a pain any company operating in emerging market go through, and we have tried to address some of the other challenges. To which extent has the company impacted the economy? We have impacted directly and indirectly. Directly, I mean as a company operating in Nigeria, which pays its taxes in Nigeria. That is a direct impact on the national revenue. We are employing people in Nigeria; we have developed and built families. Our 20th anniversary is centered on keeping families together. We also have mega dealers, which are part of our distribution chain owned directly by Nigerians and this is a development strategy from the company on an entrepreneurial level. People have been able to set up businesses, which we cannot even call small companies. These are large connected companies. That is a direct policy on the company, which is not just to open branches but to develop Nigerians. If you take sports, you will agree with me that Multichoice has directly impacted on Nigerians, not only by bringing in international sports to the country, but also directly investing in local sports development. We sponsored the local basketball league, which is named the DSTV league. We have helped to develop basketball, which was before now, going down in the country. If you look at football, Supersport brings you the Nigerian Premier league live. For a long time, you couldn’t see the Nigerian league on the screens. I think we’ve gone a long way to develop the game in the country. We won the Nation’s cup again with largely home-based team. I mean nobody would have even seen or known these people. We can also see that the quality of the local league is also improving to a large extent. These are some of the direct things you can see. We have also developed infrastructural facilities, and very key to us has been the development of human capital resources. Talking about infrastructural facilities, which you have been providing, we still have issues with service delivery quality, especially when your services are compared with what is obtained in South Africa? I don’t agree with that. Which service will you say is better in South Africa. I think what you see here is what obtains in South Africa. We have HD channels here, Catch up TVs. Whatever develops in the company is continent wide. On the other side of service delivery, we have over 130 locations nationwide that are Multichoice offices and Nigerians own about 100. What about the issue of weather disruptions? Here, you will need to compare the weather in every location. We have more rainfalls here in the tropics compared to other regions. One of the things we did on the issue was for Multichioce to support the launch of KU-BAND satellite. Before then, to access satellite television, you would need big dishes – 2.4m; 1.8m

dish, because we didn’t have coverage of KUBand satellite in West Africa. It was C-Band satellite that was available. We saw the difficulties in putting up such facility. It was almost seen as elite thing. But later, we were able to launch KU-Band satellite because it allowed us to reduce the big dishes to smaller ones, which is easier and cheaper for everyone. However, the KU-Band signal in its nature is affected by rain. But what we then did was to move from W4 KU-Band satellite to W7, to also gain higher power signal coverage over Nigeria. This has greatly reduced the interruption from heavy rainfalls in Nigerian. But what we also have a quality control through which we try to reach every subscriber on they should check the quality of their respective installations. For instance, if you are in such places like Victoria Island, where the wind is very heavy, what you will find out is that for about three years, you have not touched your installations, but the wind has touched it, shifted it and the signal quality becomes distorted. But the nature of KU-Band signal anywhere in the world shows that there will be some measure of disruptions from the wind. To a large extent, the disruptions always come when it is about to rain, especially the heavy ones. But, we have been communicating with a lot of people now that it’s better to check the quality of their installations. Are you saying that nothing can be done to check that? From the technology point of view, it is impossi-

Ugbe

ble. The Ku-Band, even C-Band, at the worst thunderstorm, you will lose some signals, even in Europe. That is directly linked to technology. I am an Electronic Engineer; I have a lot of knowledge about this. People are clamouring for Pay As Go, as a way of effectively reducing tariffs, like what we have in the telecommunications sector. When should we be expecting this? I think firstly, we need to look at the modules. There are different technologies behind this. For example, if you did not get into the bus, you don’t get the bus fare and really, your seat could be reserved for the next person, you shouldn’t pay when you are not there. But I will give you another scenario. In some countries for example, you can get a fixed bus fare, so what that does for you is that if you are a heavy bus rider, you tend to save. That is for the bus industry. But if you look at the others, for example, you go to the stadium to watch football, you buy a ticket for the game and you walk into the stadium and the match begins, and if you discover that your team was not playing well and you decided to walk out, do you get refund for your money? And you ve probably just watched 15 minutes of the match. That is the entertainment industry. So, when I licensed some programmes that I pay based on the number of subscribers that I got, whether you switched off your decoder 30 minutes in the programme, it doesn’t really matter.

Inherently, the technology is one way. I broadcast, you receive, I can’t tell when your decoder is off or on. The mobile phone is different. It is twoway communication. So technologically, we can’t do this. But also, the natures of the businesses differ and it works on different timing perspectives. You can check all other parts of the world. It is not done anywhere. It is the module of the business. You can Google to check that. What has been your level of partnership with the telecommunications operators in respect of service delivery quality? Our partnership include phone lines, as we have big call centres, which ride on telecoms infrastructure across the country and it has made it easy for us to reach our customers. We also do reach them via SMS. And the payment has been made easy by the mobile technology. Before, you would need to go to banks or our offices to pay and do other things, but now, your mobile phones can assist you from your house. So, we are one of the companies that have been able to use some of the telecommunications infrastructure to get service quality improved. But the view around has been that Multichoice is by and large been enjoying unfettered monopoly? I have never agreed with that claim. This is because, I have been in this industry for about 15 years and there have been competition. Multichoice has always has vision for its business and which is to continually bring entertainment to the people. We are investing and promoting local contents. We also ensure that we grow the

THE GUARDIAN, Monday, September 16, 2013

difficult business clime, by Ugbe channels. If you look at the sports, it takes a lot to put the Nigerian Premier league on the satellite. For us, our vision is to continue to be the best and ensure we satisfy our customers. You said there have been competitors in the industry, but many of them have been coming and fizzling out. What has been the sustaining power of Multichioce? I think the biggest thing for us has been that we are not a company that invest today and want returns tomorrow. We are future focused, which has been the vision guiding us. We come from a group, which is not just the PayTv industry. If you look at our functions in the country today, for instance the basket ball, we are spending a lot on that, not to talk of several environmental projects. Our competitors must put money in some areas so that the infrastructure can be even. So, this is a long-term vision. We are hoping to do more. To which extent have these entertainers benefitted from the company? Having been around here for a long time, gives me a sense, because I could remember a time when Nigerian music was not being aired. But that has changed now. There are several channels. Today, you have several of Nigerian music. The movies are also there too. Now, if you travel, you can hear Nigerian music anywhere. People across the globe are really showing appreciation for our services and contents they come across. When you fly to some African countries, they will say “Oga welcome” and you begin to wonder, how they got to know all these. The globe watches us. You need to see the number of people watching “African Magic” and you will be shocked that is what we have been able to do. We have brought the world to Nigeria. But copyright and reward system have been the major challenges of the entertainment industry, especially music. How are you handling these? We handle them in various ways. For instance, Multichoice is the first to sign agreement with COSON, Copyright Society of Nigeria, which also involves and partnership. Also, today, the artistes are happy to work with us, because we are adding more values to them and created a platform to thrive. Several channels have been developed on our platform. For instance the Soundcity, which promotes our local talents. Consequently, we have enhanced the reward system and partnering effectively to combat copyright infringement in the industry. Nigerian is expected to migrate from analogue to digital broadcasting by 2015. What role is Multichoice playing in this regard? As a growing company in Africa, Multichoice has been at the forefront of migration from analogue to digital. Our parent company—Details Nigeria, started transmission in the country through analogue. But we have been able to upgrade to digital. Starting from digital mobile, we are the first in Africa to do that. Definitely, migration would happen in 2015. We are working with the regulator, NBC, on guidelines to ensure we meet the deadline. And what we have always done is to be there and render our contribution and ensure that Nigerians are also carried along in the project. Our GOTV brand is a digital terrestrial facility. What are those things we must put in place to achieve a seamless digital migration by 2015 First, it must be the platform, which will allow uninterrupted transmission. Secondly, there is need for education. People need to understand what it is because it is very crucial. A key part of that migration will be consumer education. People must also see the marketing opportunities in the migration, because lots of opportunities will arise for more contents. To which extent have you achieved the objective of setting up GOTV To a very large extent, digital terrestrial is what we have been able to do and realize that over the years, in terms of pricing we go lower. So GOTV is also our mass market brand, which allows us to reach even the very lowest cadre in the society. We have democratise PayTv to make it more accessible to the people at affordable rate.

Definitely, migration from analogue to digital transmission will happen in 2015. We are working with the regulator, NBC, on guidelines to ensure we meet the deadline. And what we have always done is to be there and render our contribution and ensure that Nigerians are also carried along in the project. Our GOTV brand is a digital terrestrial facility. We are not a monopolist. All we are doing is to address the various segments of the Nigerian market. We are achieving that, even through DSTV, but the content differs. After the US introduced PayTv, we were the second, even before Europe to introduce digital satellite television. As the first Nigerian Managing Director of Multichoice Nigeria, how has it been? I would want to believe that we are making a lot of impact. I think it also makes us think as one Nigeria. Also, we have had lots of improvements in our services, the focus areas for me are that we have understood what Nigerians needed and we are providing them. You can also look at different facets, what the company is trying to do— which is to engage lot of our subscribers either through the social media or our customer care centres. We have also set massive target for ourselves for customers to meet. All we are doing is to make live easy for customers. More innovation are coming. By November, when we shall be marking our 20 years anniversary in the country, we shall be unveiling lots of things. Investmentwise, can you tell us how far Multichoice has gone in Nigeria? I can say about we have invested N55 billion into the local economy. And this has been in various forms. We have invested in skill acquisitions and, Nollywood industry in particular. We also partner with the media on Multichoice Awards. We also have training programmes in partnership with the CNN. So, for us, lots of our investments have been developmental— building capacity among others. Multichoice came during the period when investment climate in Nigeria posed a lot of challenges to investors. You had a projection. Have you really realized that? I am sure if you ask anybody, they will tell you they want more opportunities. Foreign investments came in later, Multichoice has a vision and came in when there were lots of uncertainties. We are realizing our objectives in the local market. The entertainment industry today is far stronger than what it was when we first came in. Our objectives then was to take Nigeria to the world, but I believe today, we have not only achieved that, we have equally brought the world to Nigeria entertainment wise. We have been able to tell the world that we are great, with over 250 different ethnic groups. Complaints are also high about Multichoice not having a toll-free customers’ care line? We have done so many things to stop customers from calling. These include SMS platform; the internet, which is on one handle. On the other hand, we continue to expand our customer care centre. We are growing and we know that we must also meet the demands of our customers. In terms of payment, you must understand that we are not telecoms operators. We have to go to a telecoms firm to buy a line and they charge us from different networks. For example, if you call your bank for enquires, you pay. But at every point, we are looking for every means to mitigate these challenges. So to me, I will implore our customers to explore the various vendors of opportunities that abound. The social media is also there. We have a facebook page through which issues can be resolved easily.

We are realizing our objectives in the local market. The entertainment industry today is far stronger than what it was when we first came in. Our objectives then was to take Nigeria to the world, but I believe today, we have not only achieved that, we have equally brought the world to Nigeria entertainment wise. We have been able to tell the world that we are great, with over 250 different ethnic groups.

Now, if you travel, you can hear Nigerian music anywhere. People across the globe are really showing appreciation for our services and contents they come across. When you fly to some African countries, they will say “Oga welcome” and you begin to wonder, how they got to know all these. The globe watches us. You need to see the number of people watching “African Magic” and you will be shocked. That is what we have been able to do. We have brought the world to Nigeria.

THE GUARDIAN, Monday, September 16, 2013

NigeriaCapitalMarket NSE Daily Summary (Equities) as at Friday PRICE LIST OF SYMBOLS TRADED FOR 13/09/2013

CAPITAL MARKET 65 65

THE GUARDIAN, Monday, September 16, 2013

NSE Daily Summary (Equities) as at 13/09/2013

PRICE GAINERS

LOSERS

SEC to partner identification board, CBN on capital market’s data challenges By Helen Oji HE Securities &Exchange T Commission (SEC) has unfolded plans to partner with the Nigeria identity capturing board and Central Bank of Nigeria (CBN) to ensure that problems associated with capturing and transfer of data are addressed in the Nigerian Capital Market. The Director-General of the SEC, Ms. Arunma Oteh explained that there was need to introduce electronic capturing of data in order to reduce identification theft. She pointed out that the Commission is concerned

about market integrity, adding that identity issues are critical to market integrity. According to her, small committee of six people, chaired by Chief Executive Officer (CEO) of the Central Securities Clearing System (CSCS) would be set up to look into the issue of understanding how to transfer dividend electronically without identity theft. “We are concerned about market integrity and identity in the capital market and we want electronic capturing so that you cannot steal someone’s identity. We are partnering with Nigeria identity capturing and CBN

because they are on top of it. We believe that identity issues are critical to market integrity. “We will set up small committee of six people, chaired by CEO of CSCS to look into the issue the issue of understanding how we can ensure electronic transfer of dividend without identity theft. We would initiate it where we have audit registrars so that we can reconcile the data to ensure integrity. We would use more modern techniques going forward,” she added. SEC had recently inaugurated committee to produce a blueprint for the market, in line global best practice

as part of its commitment to transform the Nigerian Capital Market into a worldclass market that would facilitate growth and diversification of the economy, Oteh explained that capital markets were enablers of socio-economic development because they foster meritocracy, good corporate governance, innovation and entrepreneurship, which in turn create job opportunities that, will harness the skills and entrepreneurship zeal of Nigerians. According to her, worldclass capital markets fund business expansions and new opportunities and provide governments with

long-term funds for financing infrastructure and other important projects that transform the economies; therefore we need a blueprint by which to develop the Nigerian market to this end. She explained that in view of the work that needed to be done, three committees were set up to provide longterm plans for the growth of the capital market. Oteh said: “The three committees are the Capital Market Master Plan Committee, which will set out clear strategies for the entire capital market to achieve its full potential, the Capital Market Literacy Plan

Committee which would articulate a market-wide continuous investor education strategy. “Also, we have the NonInterest Capital Market Products Master Plan Committee to create a roadmap for the development of a vibrant Islamic finance industry in Nigeria, and these three committees would kick-off activities in January 2014.” Speaking on the performance of the Nigerian capital market in the last few months, Oteh said that the stock market capitalisation had risen by two and half times to N11.59tn as at

THE GUARDIAN, Monday, September 16, 2013

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Focus

Tinkering with jail term as panacea for examination malpractices Candidates taking part in an examination

By Eno-Abasi Sunday and Ebele Okonkwo IME was 11: 30 am and a band of parents, T guardians and sundry relatives, were huddled together by the gate of a private secondary school in Surulere council area of Lagos State. The school serves as one of the centres for the October/November West Africa Senior School Certificate Examinations (WASSCE), for private candidates in the council area. For the ignorant, they were there to ensure that their loved ones inside the examination halls lacked nothing as they prepare to engage their brains in a contest of wits. But on the contrary, most of them were there to facilitate their wards’ successes in the examinations through dubious means. Put differently, they were there to shop for answers for leaked examination papers, courier them through compromised security guards/gatemen through to equally compromised invigilators and finally to the expectant candidates. However, most candidates whose relatives fail to find willing accomplices to ferry prepared answers to them or who had “difficult” or uncompromising invigilators to contend with in the examination halls, always depart these venues with long faces and dashed hopes. This unholy scenario plays itself out in practically every examination centre, where Nigerian youths are gathered to test their knowledge, even though examination is no longer deemed a true test of knowledge in our clime. In fact, gone are the days when teenagers or other young adults preparing for any of the national examinations for their type, ranging from the Senior School Certificate Examination (SSCE), organised by the West African Examination Council (WAEC); National Examination Council (NECO) examinations or the Joint Admissions and Matriculations Board (JAMB) examinations among others, burnt the proverbial midnight oil or had sleepless nights or even catch the non-life threatening “examination fever,” as the due date approached. In fact, they no longer cringe with fear at the mere thought that an examination awaits them. Also gone are the days when pin-drop silence, which likened the examination hall to a graveyard, pervade examination halls because every candidate loathed distraction and was concentrating on his/ her work. Today, most candidates spend a greater part of their time watching the windows and doors through which assistance would come through, in the form of “micro chips” facilitated by their loved ones or teachers. In some schools, especially the private ones, malpractices are so organised that school authorities get parents to pay for their wards to

be “helped” by teachers, who dictate, write answers to questions on black boards for the students to copy or hand out photocopies of solved examination questions to them, while the external supervisor, who had been “settled” on arrival, looks the other way or takes a walk. The aforementioned and many more other very appalling situations, perhaps propelled the Federal Government to approve an amendment to an Act of the West African Examinations Council (WAEC), part of which will make culprits of examination malpractices to be liable to fiveyear jail term or N200, 000 fine or both, when the amendment is effected. Before this latest step, however, efforts aimed at frustrating examination cheats in their trade by the regional body, were stepped up in April, when the body at its 55th Nigeria Examinations Committee (NEC) meeting, said it would henceforth cancel the entire results of any candidates who cheats in more than one subject. In a communiqué it issued at the end of that meeting, which was signed by WAEC’s Deputy Director (Public Affairs), Yusuf Ari, the council said it had become necessary to review its rules on examination malpractice. At the meeting, which ran from April 15 to 17 in Lagos, the council observed with dismay and deep concern, the indictment of some candidates for malpractice in more than one subject in the November/December, 2012 West African Senior Secondary Certificate Examination (WASSCE). The NEC meeting communiqué read in part, “In order to check the ugly trend, the committee subsequently decided that the sanction in the council’s rules and regulations should be reviewed. The communiqué, which noted that collusion and irregular activities, inside and outside the examination halls, were the most prevalent forms of examination malpractice, added that, “It is clear that there is an urgent need to review the rule on such cases from cancellation of subject result to cancellation of entire results.” While also noting that monitoring by members of staff of the Council and other stakeholders and recent innovations were exposing examination cheats, it added that members were of the belief that, “if the principal of a school decides that examination malpractice should not be allowed in his or her school, incidences of malpractice will be very minimal.” If implemented even with religious zeal, some believe that penultimate Wednesday’s endorsement of the proposed amendment, may not sound the death knell for examination malpractices, but would go a long way in stemming the very ugly tide. Former Education Minister, Professor Ruqayyatu Rufa’i, while briefing State House

Correspondents on the outcome of the weekly Federal Executive Council (FEC) meeting penultimate week, said the 2004 Act, to which an amendment is being sought, stated that WAEC is empowered to take disciplinary actions against those that have committed both the offences and penalties for illegally using examination papers and leakage of examination papers, etc. The former minister said the decision of the FEC, which was presided over by President Goodluck Jonathan, was to “give effect to the revised convention of WAEC, 2003 in Nigeria.” The 2004 Act, “empowers WAEC to take disciplinary actions against those who have committed both the offences and penalties for illegally using examination papers and leakage of examination papers.” Section 19(1) of the Act reads in part, “Such candidate shall not take or be allowed to take or continue the examination; in addition, he shall be prohibited from taking any examination held or conducted by or on behalf of the Council for a period of two years immediately following upon such contraventions. “If a candidate aforesaid has already taken any papers at the examination, his result therefrom shall be cancelled. “In addition, the candidate may be prosecuted and if found guilty, shall be liable on conviction to a fine of N200, 000 or imprisonment for a term of five years or to both such fine and imprisonment.” Section 20 (2) reads: “The penalties contained in this sub-section (a) may be imposed whether or not a prosecution for an offence under Sections 20 or 21 of this Act has been brought or is being conducted or contemplated and (b) shall be in addition to such other penalties as a court may impose upon conviction for an offence under the aforesaid Sections 20 or 21.” Principal of Emmanuel College, Owerri, Imo State, Nwachukwu Callistus Chika, doubts seriously, the efficacy of the five-year jail term in curbing examination malpractices. “It is common knowledge that some students go into examination halls ill-prepared and the syllabuses uncovered. This indeed is a prime reason why most students cheat because they are ill equipped. In addition to this, the inclement condition where teaching and learning takes place adds to the problem. So schools should be made convenient and effective places for teaching and learning to take place.” On whether the five-year jail term being canvassed was capable of curbing the menace, he said, “I am aware that there existed a law in this country, which spelt out 21-year jail term for examination cheats. Though I am not

aware if that law has been repealed or not. However, the amendment approved by the Federal Executive Council, will not mean anything without strict implementation of the laws when finally in place. It is common knowledge that the when cheats are caught and handed over to the police, they end up walking away after parting with some money. This is precisely what is going to make the new law meaningless.” He continued, “It is not how weighty a law is that deters people from committing crimes, it is its implementation that does that. So if we want this law to be effective, its implementation should be to the letter.” Another principal of a Lagos-based private school who craved anonymity, said children alone should not be blamed for indulging in examination malpractices. In fact, the parents and school authority and even the government should share in the blame. Insisting that sending examination cheats to jail will not put paid to the malaise, he urged that in recruitment of teachers, moral uprightness should also be given immense considerations. “Going into examinations, most students are unprepared but want to come out successful. Their unpreparedness stems from the fact that in most cases, their parents do not keep an eye on their activities during the term/session as the case may be. But these are the same people that would put pressure on the kids to perform well, as they (kids) may not have the opportunity to re-write the examination soon since their siblings that are also in school, are also putting pressure on the scarce resources available. He continued, “Since the family and the society “believe” so much in the child, but without giving him/her commensurate preparation, he/she is under extreme pressure to perform. This coupled with peer pressure, leads a hitherto good child to yield to the temptation to cheat. Describing the five-year jail term for those caught cheating as excessive, “considering the situation some students find themselves,” he also called for stiff punishment for other people found culpable in the chain of examination malpractices, ranging from school teachers, principals to external invigilators. Parents should also prioritise monitoring their children’s academic performances in other to figure out when they begin to derail. “The best way to tackle the menace of examination malpractice is for government to come up with implementable policies that would check the standard of education so as to ensure proper teaching and learning. Teachers’ qualification should also be taken seriously just as it is important to visit serious sanctions on schools that encourage malpractices,” he stated.

THE GUARDIAN, Monday, September 16, 2013

Media Stakeholders preach conflict-sensitive reporting Workshop By Gbenga Salau O doubt, the media has a vital role to play N in promoting and sustaining peace and harmony in the society. And with the on-going search for panacea to Nigeria’s myriad of sociopolitical and economic conflicts, the attention has lately been focused on how to harness the potential of the media especially in the area of conflict management and resolution. The desire is to support this critical sector in developing mechanism for insightful and professional dissemination of sensitive news, the type of which is capable of instigating conflict or causing trauma and consequently increasing vulnerability. And for the media to play an active role in crisis management, having the required skills to professionally carry out their day-to-day task is key and this could only be possible through education and capacity building. Understanding this fact and wanting to provide a good framework for media practitioners, the Nigerian Press Council (NPC) put together a three-day workshop to build the capacity of journalists on conflict and crises reporting. The workshop, organized in collaboration with the Bauchi State government, according to the Executive Secretary of NPC, Mr. Bayo Atoyebi was not only in pursuance of the sustenance of high professional standards, it was also designed to interrogate how the Nigerian media would play a mediating role in fostering peace and national cohesion through enhanced professionalism. He noted that though conflicts and crises may be inevitable aspects of all societies, how they are reported in the media or handled could either douse or escalate disagreement, which required resolution. “The public relies on the media for credible information to facilitate mutual understanding among disparate groups to enhance national unity and cohesion. The current development induced security and conflictual challenges besetting the country place enormous responsibility on the media towards their resolution.” As first in the series of capacity building programmes to ensure that the media are professionally guided and sensitised in the reporting of conflicts and crises in the country, the workshop provided a platform which evaluates the roles the media play before, during and after conflicts or crises. It stressed the need for journalists to perform a professional mediating role in reporting conflicts and crisis with a high sense of social responsibility to enhance mutual understanding and peace building. It also underscored the need for co-operation, understanding and mutual respect by journalists and security operatives in the service of the public. Indeed, participants, drawn from the six north-east states of Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe; security agency; federal and state governments officials, academia and civil society organisations, observed lack of protection for media personnel who operate in conflict ridden zones; distrust between the media professionals and security agencies in sourcing information among others, insisting that these are inimical to effective media practice in the country. They also argued that the usage of unverified information from the new and social media derogates from ethical journalism while decrying inaccurate reporting, sensationalism, stereotyping of groups, use of inflammatory language, unethical conduct, as some of the flaws in media coverage of conflicts. As a result, journalists were urged to monitor and report areas that expose early warning signals to conflict as contribution to conflict prevention and eschew reportage that could engender “societal” intolerance and prejudice. The participants recommended that the media, as the key stakeholder and purveyor of information, should contribute to the mainte-

nance of peace and reconciliation in the country by reporting conflicts and crises within the context of the Code of Ethics based on credible, factual and unbiased reporting, just as Journalists should place high premium on the social necessity to protect critical information in public interest and the exigencies of national security. Journalists were implored to detect potential sources of crisis and evaluate what could incite violence while striving to maintain a balance between professionalism and the public’s right to know and the kind of information that could hurt the public psyche and constitute a threat to the nation. Other suggestions by the participants were: “The media should refrain from promoting prejudicial stereotypes about groups and individuals through selective reporting not supported by facts and figures. The media should interact more with all interest groups, individuals and stakeholders so that no opinion or interest is marginalised. “Journalists should be trained to monitor early warning signs of conflict in specific areas for them to be able to draw the attention of the government and the general public to any signs of impending danger

through factual and balanced reports. “The teaching of diversity and conflict reporting should be instituted in the curricula of Journalism and Departments of Mass Communication in the country to adequately prepare upcoming journalists for their professional roles in peace building in multicultural settings. “Editors should be provided with guidelines on conflict news reporting. Journalists should avoid promoting terrorists’ or sectarian objectives as such can give them legitimacy. “Sensational reporting on sensitive issues that involve loss of lives should be minimised as much as possible so as not to unwittingly transfer the crisis from the streets into homes causing unnecessary agitation. “Journalists should adopt the proactive measure of self regulation to avoid government interference and censorship. Media organisations should treat with circumspect information gathered from international media agencies in the light of Nigerian reality. “The reporter should promote debate on national issues and patriotism in context of conflict prevention and resolution. Proper

and prompt remuneration like insurance and other appropriate conditions of service should be encouraged to motivate journalists in the discharge of their duties. “Journalists should be knowledgeable in vital security tips for safety while covering conflicts. Security agencies should see journalists as partners in the coverage of conflicts and crises.” Some of the issues addressed at the workshop included, The Role of the Media in Identifying and Reporting Potential Sources of Conflicts by Prof. Umaru Pate of the University of Maiduguri, Maiduguri, Borno State; The Challenges of Serving the Public: Information as Intelligence for Protection and the Right to Know: Need for Synergy, by Col. Sambo Dasuki, (Rtd), National Security Adviser, State House, The Presidency, Abuja; Journalism Code of Ethics and Social Responsibility as Parameters for Reporting Crises by Mr. Lanre Arogundade, Coordinator, International Press Centre, Lagos; The Role of the Media Before, During and after Conflicts/Crises by Mr. Nasir Zahardeen, Presidency, Office of the Vice President, Abuja and Reporting Conflict/Crises: Media Conflict and Mediated Crises by Sanni Zoro.

Cross section of Editors at this year’s All Nigerian Editors Conference (ANEC 2013) held in Asaba, Delta State on August 21 to 25, 2013

Hello! Nigeria… for launch NITED Bank for Africa (UBA) U appears set to strengthen its position as Nigeria’s premium financial services institution following its emergence as the presenting partner for the launch of Hello! Nigeria, the premium magazine franchise, targeting royalty, celebrities and iconic personalities across West Africa. Already, preparations have reached advanced stage for the formal launch of the magazine in Nigeria on September 29, 2013. Besides UBA, other top brands hand selected as partners for this launch include, Moet & Chandon as well as The Wheatbaker Hotel, the premium hospitality centre located in Ikoyi, Lagos. Speaking on the partnership, Managing Director for True Tales

Publications, official franchise owners for Hello! Magazine in West Africa, Anne Omezi, said the coming of Hello! to West Africa through Nigeria heralds a new era of opportunities to accord deserved dignity and respect to Nigerian royalties and celebrities. This, according to her, ushers in a new era where Nigerian celebrities would in the real sense be celebrated in Nigeria as a prelude to much stronger global recognition. She added that premium brands in Nigeria, interested in reaching the top end would also have their strongest channel through Hello! “We are pulling every stop; we are ensuring that all that should happen would happen to give Nigerians the celebrity magazine they deserve. Our society is not all about scandals. We have lots of

lofty achievements about our people that are worth celebrating and that is why Hello! is here,” she stated. Also speaking on the partnership, Group Head, Marketing and Corporate Communications, UBA Plc, Charles Aigbe, said the bank decided to partner in the launch of Hello! in West Africa because the bank has a strong bias for celebrating Africans and their achievements while helping to build world class businesses from the continent. “Hello! as a brand shares with UBA Plc, the same trait of supporting achievement and celebrating royalties. As a business, we have always been driven by the passion to motivate African and Africarelated businesses to global heights while also mentoring the smaller units to greater heights.

The bank will always partner to bring world class projects like this to Africans because we are certain that beyond celebrating achievement in Nigeria and Africa, Hello! will also motivate our young men and small businesses to aspire to new heights of greatness,” Aigbe said. Hello! is a magazine specializing in celebrity news and humaninterest stories, launched in Spain in 1944 and which is currently distributed in more than 100 countries with more than 20 local franchise editions. Hello!’s editorial concept distinguishes it from the many sensationalist and negative celebrity magazines on the market globally. Its content philosophy is driven by respectful coverage of celebrities and royals as well as compelling human-interest stories.

THE GUARDIAN, Monday, September 16, 2013

DAME 2013 gets panel Reporting SME effectively T of judges RUSTEES of the Diamond T Awards for Media Excellence (DAME) have named 21 judges to screen entries for the 22nd edition. The panel comprises eight women and 13 men, drawn from the rank of veteran journalists, academics and members of civil society. They are Mr Femi Kusa, former Editor-in-Chief of The Guardian; Mrs. Wale Sokunbi, Editorial Page Editor of the Sun; Professor Nosa Owens-Ibie, Head, Department of Mass Communication at Caleb University; Dr. Bisi Olawunmi of the Department of Mass Communication, Bowen University; Mr. Feyi Smith, Executive Secretary, Newspaper Proprietors’ Association of Nigeria; Mrs Agbeke Ogunsanwo, retired permanent secretary and former editor at the Daily Times. Also serving are Mr. Muyiwa Adetiba, former Editor of Sunday Punch and Vanguard; Mr Muda Ganiyu,

Forbes Woman Africa magazine for launch October 1 BN Publishing will A launch the highly anticipated Forbes Women Africa with the first issue beginning next month. This new monthly magazine is a panAfrican publication that will navigate the world of business for women, with features on the latest trends in the corporate sector and how its architecture speaks to women. The magazine will profile the trailblazers, game-changers and pioneers among the women involved in business, the economy of Africa and the world. In line with this, the magazine will also feature the wealthy, powerful and influential women in business whose impact is felt long after they have come and gone. “Forbes Woman Africa follows the success of Forbes Africa,” says Founder and Vice Chairman of the ABN Group, Rakesh Wahi. “There are so many stories of success on the African continent that we will never be able to do justice to all the woman making a difference in the corporate world, which is the principal reason why I took the decision to have a separate magazine for women. We are looking forward to making this the most soughtafter business magazine for women on the continent”. “We are excited about this new magazine which will provide a platform for amazing women in Africa doing extraordinary work, be it in the economy, business, politics, art and culture. Forbes Woman Africa is a niche product sorely needed in the African market,” says Editor of Forbes Woman Africa, Karima Brown.

former Editor of Nigerian Tribune; ace photographers Tam Fiofori and Victor Agunbiade; Mr Emiko Aruofor, managing director of Pulsar Advertising; Mr Joseph Afolabi, Managing Director of Extrabold Consult; Mr. Ben Lawrence, former Managing Editor of Daily Times and columnist with TELL; columnist Ms Bunmi Sofola; Mrs Tinu Odugbemi, former chairperson of Lagos NAWOJ. Others are Ms. Victoria Ibanga, former editorial board member of Daily Champion; Mr. Gbolahan Gbadamosi, former Judicial Editor of the Guardian; veteran actor and broadcaster, Mr Taiwo Obileye; former broadcaster, Ms Effiom Asuquo; radio host, Mr Jimi Disu; and Mrs. Nkechi Ileka, a trained education administrator.

O keep the media abreast of its activities and achievement, Lagos State Commercial Agriculture Development Project (CADP) will on Wednesday, September 18, 2013 hold an interactive session with the media at Johnson Agiri Complex in Oko Oba, Agege area of Lagos. Expected also at the forum are over 140 participants from small and medium Scale Rice, Poultry and Aquaculture farmers, processors and marketers including financial institutions, community leaders and non-governmental organizations, state policy makers, representatives of the World Bank, and members of the House Committee on Agriculture. Speaking on the event, the State Project Coordinator of CADP, Mr. Kehinde Ogunyinka said the forum was aimed at showcasing the results and impacts of CADP

on small-medium commercial farmers in the state. He stated that the event would also be used to attract investors nationally and internationally and to encourage farmers to net-

work among one another. While emphasising the role of the media in the entrenchment of food security in the country, Ogunyinka said the interactive forum would further raise awareness and

increase understanding of the project for possible adoption and scale-up by commercial farmers, which would in turn facilitate buyin and support of state and Federal Governments.

FoI Act: Capacity building for effective usage two-day Freedom of A Information (FOI) Act Implementers Strategy Meeting for civil society organizations engaged in various aspects of FOI work in Nigeria will open today in Abuja. Organized by Media Rights Agenda (MRA) with support from the United Nations Development Programme’s (UNDP) Democratic Governance for Development (DGD) II Project, the meeting, is aimed at exploring mechanisms for facilitating greater coordination, collaboration,

as well as information, experience and skills sharing in FOI implementation activities. The DGD II Project is a joint donor-funded project managed by UNDP in support of deepening democracy in Nigeria and is funded with contributions from the European Union, UK’s Department for International Development (DFID), the Canadian International Development Agency (CIDA), the Korea International Cooperation Agency and the UNDP. The meeting will bring together representatives of

civil society organizations from all over the country working on Freedom of Information issues or using the Law to seek information from public institutions as well as legal practitioners willing to offer legal support to ordinary citizens to enforce their right of access to information. The meeting will focus primarily on critical areas of civil society engagement, including public enlightenment and sensitization; training and capacity-building; FOI monitoring and research; as well as legal assistance and litigation.

THE GUARDIAN, Monday, June16, 6, 2011 THE GUARDIAN, Monday, September 2013

TaxWatch IN PARTNERSHIP WITH

TheGuardian Conscience Nurtured by Truth

The making of a good e-tax system

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By Taiwo Oyedele

The system should be used for taxpayer proﬁling, provide reliable online tax calculator, and link with other agencies. This will make the system truly integrated and should facilitate a risk-based audit approach.

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ECHNOLOGY is influencing T our lives and continues to change the way we do things from the simple day to day activities to the complex and less routine tasks. It is difficult today to imagine that we once lived in a world without Social Media like Facebook, without Search Engines like Google, without Smart phones or Tablets and so on. Interestingly that was the world we lived until as recent as 13 years ago. The impact of technology can be seen and felt in every area of our lives from commerce to entertainment, education, communications, healthcare, defense and taxation. According to the World Bank and PwC Paying Taxes Report 2013, sixty six economies had fully implemented electronic filing and payment of taxes as at 2010. Twenty of them adopted the system in the past 7 years. An electronic system for filing and paying taxes, if implemented well and used by most taxpayers, benefits both tax authorities and taxpayers. For tax authorities, electronic filing lightens the workload and reduces operational costs – such as the costs of processing, storing and handling tax returns. At the same time, it increases

Even with technology, you cannot build something on nothing tax compliance and saves time. For taxpayers, electronic filing saves time by reducing calculation errors on tax returns and making it easier to prepare, file and pay taxes. And both government and taxpayers benefit from a reduction in potential incidents of corruption, which are more likely to occur with more frequent contact with tax administration staff. The Joint Tax Board, the Federal Inland Revenue Service and some State Internal Revenue Service have or are in the process of implementing electronic tax systems. Whilst the initiative is commendable it is important to ensure that the potential areas of failure are anticipated and prevented. Some of the elements of a good technology driven tax system include: Smooth transition – there should be concerted effort to ensure that taxpayers are sensitised and educated to become fully aware of the e-system. Various media should be used to ensure wider reach including print, electronic and social media. Short demo videos should be available on the portal to serve as a guide to users. The implementation should be in phases with proper testing before full rollout. This also requires that existing taxpayers’ manual information should be captured into the electronic system and validated by taxpayers as a starting point. Simplicity and inclusiveness – the system should be easy to use even with minimum education. This will also make the system inclusive. Taxpayers should not be required to provide the same information twice unless where it is necessary for data validation. Also, taxpayers should not be asked to provide redundant information which serves no useful purpose. For instance, the tax calculator on the FIRS website requires information about dividend from quoted and unquoted companies. This is of no particular relevance since all dividends which have suffered withholding tax are franked and tax exempt. Also, it is of little or no use to require TIN for non residents who have no fil-

ing obligations such as recipients of dividends. Availability – it is crucial that the system be available always. Downtime should be minimised otherwise taxpayers will consider it unreliable and therefore prefer the manual process. This is particularly important during filing and payment deadlines. Given the last minute compliance tendency of most taxpayers the authorities must envisage and cater for the high traffic in and around key tax filing and payment deadlines such as 30 June for companies with 31 December year end date taxable under the Companies Income Tax Act.

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For taxpayers, electronic filing saves time by reducing calculation errors on tax returns and making it easier to prepare, file and pay taxes. And both government and taxpayers benefit from a reduction in potential incidents of corruption, which are more likely to occur with more frequent contact with tax administration staff.

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Accessibility – the system should be able to efficiently collect, electronically store, and easily retrieve taxpayer information. Every registered taxpayer must be able to view their tax records online which should contain all transactions by and on behalf of such taxpayer including any withholding tax deducted on the taxpayer’s income by third parties. With this it should not be necessary to apply for credit for

withholding tax suffered and the lengthy verification process should become a thing of the past. Accessibility also requires that the system should be of general application and be compatible with other systems. Affordability – this has to do with the cost benefit analysis both for the tax authority and the taxpayers in the short, medium and long term. The initial cost of any major system will likely be significant but the benefit should be enduring. This will be the case if the system is well maintained and constantly updated not abandoned post commissioning as is the case with many systems in Nigeria which are merely symbolic rather than functional. Stakeholder engagement – regular surveys about the tax system should be conducted from time to time including the ease of paying taxes, professionalism of the tax officers. Also taxpayers should be asked to contribute to government fiscal policies via the system.

About PwC PwC firms help organisations and individuals create the value they're looking for. We're a network of firms in 158 countries with close to 169,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com/ng

Completeness and limited human interface – the system should assist taxpayers to deal with their tax compliance obligations from start to finish. For instance, it is pointless to fill tax liability information online and then have to physically visit a bank to pay. In the same manner tax receipts should be electronically generated for taxes paid. At the beginning of the year, every taxpayer who has complied with their self assessment obligations and have no outstanding undisputed tax liability should automatically be issued a tax clearance certificate which they can login to their accounts and be able to print out. This should contain computer readable codes to prevent counterfeiting. Support – since there is no perfect system anywhere, there should be a helpline and other forms of real time support for taxpayers who may encounter problems in using the system. Also there should be detailed help manual on how to complete tax forms. Where necessary there should be free downloadable software on the website for preparing tax returns. Compliance focus – the system should uniquely identify every taxpayer and should not allocate more than one number to any taxpayer unlike under the current tax identification system where many taxpayers end up with more than one number generated for them at different times. The system should be used for taxpayer profiling, provide reliable online tax calculator, link with other agencies such as the Nigeria Customs Service, Corporate Affairs Commission and Land Registry. This will make the system truly integrated and should facilitate a risk-based audit approach. Security and back-up plan – the system must be secured to guarantee taxpayer confidentiality and minimise fraud especially with respect to online payment. There should be a robust disaster recovery plan in case of an attack. Online information exchange between taxpayers and tax officers should

be done via secured protocol. For instance tax officers should desist from using Yahoo emails for official business. Controls and monitoring – relevant information about users should be collected to evaluate usage and address challenges faced. Also to provide data validation mechanism as is the case with smart systems. For instance, tax payable should not be negative or greater than turnover figure. Flexibility and transparent reporting – the system should make it possible to transfer excess tax payments or refund due in one tax head to another. For instance, excess withholding tax should be available to defray VAT liability or education tax otherwise refunds should be paid promptly within 90 days as provided by the law. This is important to win taxpayer confidence in the event that a taxpayer is debited twice due to system errors. It should also be possible to allow joint filing and payment of several taxes by a taxpayer. Detailed information and analysis of taxes collected, unpaid refunds and unutilised credits and allowances should be provided. The system once implemented should be constantly reviewed to address teething problems and to evolve with the changing economic landscape and increased complexity of today’s business environment.

Taiwo Oyedele is a Partner and Head of Tax and Corporate Advisory at PwC Nigeria. He is a regular writer and public speaker on accounting and tax matters. To get regular updates and in-depth analyses on tax matters visit Taiwo’s blog to subscribe free of charge at www.pwc.com/nigeriataxblog.

THE GUARDIAN, Monday, September 16, 2013

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Sports Enyimba wins third Fed Cup By Christian Okpara NYIMBA Football Club of Aba secured her third Federation Cup title yesterday when it defeated Warri Wolves 5-4 on penalties after the game ended 2-2. Enyimba, also known as the ‘Peoples Elephants’, has won the competition in 2005 and 2009. However, the Aba team was pinned to the wall twice but came back strongly to win the encounter. Before yesterday game, both teams had met twice in the league, with both games failing to produce a goal. But with Wolves scoring the opening goal in the 23rd minute through Musa Najere’s tap in, it was clear that the fans were in for a thrilling encounter. Enyimba equalised 40 minutes later when the lively fullback, Bright Esieme, blasted home a loose ball after Goalkeeper Okiemute Odah had punched the ball out of his goal area. Wolves regained the lead on 79 minutes when Joseph Osadiaye netted a rebound after goalkeeper Femi Thomas could not hold a shot inside the box. Many at the Teslim Balogun Stadium would have thought that Wolves had secured victory only for Enyimba to draw level in 82

minutes through a superb free kick taken by left back, Ugwu Uwadiegwu. From this point, it was all Enyimba as the champions looked for the third goal. Earlier, Sibi Gwar tested the agility of Odah after seven minutes and 10 minutes later, his shot from the top of the box was wide off its mark. Wolves also had their chances with Osadiaye blasting wide off target when he was put through on goal. Early in the second half, Enyimba showed their intentions when Andrew Abalogu drew a good save from Wolves shot stopper Odah. Wolves, featuring in their first-ever cup final, controlled proceedings in the first half, but Enyimba came back into the fray after the interval. After regulation time, the match went into penalties with the lively Azubuike Egwuekwe, who had been a pillar in defence for Wolves, having his kick saved by the Enyimba goalkeeper, Thomas. Coach Salisu Yusuf of Enyimba heaped praises on his boys and acknowledged the team’s management for its support. “I am proud that I have led Enyimba back to the continent,” said coach Salisu Yusuf.

‘Mikel didn’t feign injury’ UPER Eagles boss, Stephen Keshi and Chelsea star, John Mikel Obi, have openly ridiculed insinuations that Obi feigned injury to avoid playing in the 4-1 friendly win against Burkina Faso last Tuesday in Kaduna. Keshi who spoke through Team Scribe, Dayo Enebi Achor, said Mikel was injured even before he set out for Nigeria for the encounter but offered to play the World Cup qualifier against Malawi. The doctors of the national team also passed him fit but not 100 per cent. “In the early part of the game, the calf injury nearly re-occurred but when the

doctors signalled to him over what the situation was, he offered to continue the game. And after the game, we had to review the situation and ask him to go for proper treatment at his club before their next game, instead of risking him against Burkina Faso in the friendly,” Keshi stated. The coach also said there was no ill feeling from any member of the national team when Obi was excused and wondered where the story emanated from. On his part, Obi said he has never chosen games to play for the national team but have been reported for games except if injured.

Enyimba players with the Federation Cup trophy after defeating Warri Wolves on penalties at the Teslim Balogun Stadium. Enyimba won 5-4. PHOTO: FEMI ADEBESIN-KUTI

Bale ‘proud’ of goalscoring debut, Ronaldo agrees new Real deal ORLD record signing, W Gareth Bale, said he was “proud” of scoring on his Real Madrid debut as the Spanish giants drew 2-2 at La Liga rivals Villarreal. The Welshman, 24, netted a 38th-minute tap-in before being replaced by Angel Di Maria after 62 minutes. “Proud to score on my debut and pleased to get 60 minutes, just disappointed not to get the result,” the exTottenham forward said. It was Bale’s first start of the season following a recent foot injury. The former Southampton trainee, who completed his £85m move to the Bernabeu on September 1, started on the right of a three-pronged attacking midfield, alongside Portuguese superstar Cristiano Ronaldo and recent £23m signing Isco. After Cani had given hosts Villarreal a deserved lead, Bale put the away side level

when he slid in to convert Daniel Carvajal’s right-wing cross from inside the six-yard box. He almost scored another at the start of the second half when his fierce long-range shot flew over the Villarreal crossbar, before he was replaced by Argentina winger Di Maria shortly after. Ronaldo then put Real ahead, but Giovanni Dos Santos, a former team-mate of Bale’s at Tottenham, denied him a winning start with a 70th-minute equaliser. Afterwards, Real boss Carlo Ancelotti said he was pleased with Bale’s contribution. “I think he (Bale) is happy to score his first goal for Real Madrid. He played in a difficult match and he played well, showing his good attitude,” said the Italian. Bale added he was now “looking forward” to making his Champions League debut

Kayode transfer saga rages on SRAELI club, Maccabi Iclaims Netanya, has disputed by Ivoirien club, Asec that they still have a contract with Nigeria Under-20 striker, Olanrewaju Kayode. They have also contested Asec’s claims that they have a FIFA ruling to the effect that Kayode is still under contract with them. MTNFootball.com has correspondences between the two clubs over the raging transfer controversy surrounding the Nigerian, which looks to be heading to a higher FIFA court this

week. Netanya has signed a contract with Kayode till May 2014 and have requested for the International Transfer Certificate of the player from Asec. The transfer window in Israel will close tomorrow. However, Asec has fired back at the Israeli second division club, saying they have a contract with the player and as such they do not expect the Ivoirien Football Federation to honour the Israeli club’s request for the player’s transfer papers unless there is an agreement

between the two clubs. Asec’s General Manager, Benoit, told Maccabi Netanya: “I have read that your club signed a contract with the player Kayode Olanrewaju. However, Netanya president, Gil Lev, has contested Asec’s claim that the player is still under contract with them. “Your club has no valid contract with the player. We have signed a contract with the player in good faith,” he argued while demanding the Ivoirien club send a copy

of the contract they claim they have with Kayode till November 2014. Kayode himself has said on his Facebook page that it is not true that FIFA has ruled that he has a contract with Asec. The Israeli club has equally raised eyebrows over how a FIFA correspondence sent to the Nigeria Football Federation on the matter reached with the Ivoirien club, who subsequently sent it to Maccabi Netanya as proof that FIFA has intervened in this case.

for the nine-time European champions. He has been named in Ancelotti’s 20-man squad for Tuesday’s Group B trip to Turkish champions Galatasaray. Also, Cristiano Ronaldo has agreed a new contract, the Spanish giants have announced. The Portugal international, who had been linked with a return to former club Manchester United, has extended his contract until June 2018. Spanish media is reporting the 28-year-old will earn a yearly salary of €17m (£14.25m). “Manchester United is the past. Real Madrid is now my home,” he said in a media conference yesterday. “I hope that I’m here until I retire. This is a great club. “I respect all the clubs who ask about me. But they always know that my decision, that my only goal, is to be here and to play at this club until, maybe, the end of my career.” The new deal comes after the arrival of world-record signing Gareth Bale from Tottenham earlier this month for €100m (£85.3m). Ronaldo, who joined Real from Premier League champions United in 2009 for what was then the highest fee of £80m, has scored 203 goals in as many games for Los Blancos. His previous contract at the Bernabeu was due to expire in 2015. “I’ll be here five more years. I just want to win trophies for this club,” he added.

SAP employees, partners walk for fitness By Gbenga Salau O promote healthy living T among its workers and ensure that they are mentally and physically fit, SAP West Africa organised a fitness programme at the weekend, where about 50 of its employees and partners had a walkout exercise. The programme, dubbed ‘Walk Better, Start Better’, the organisers say is part of the company’s corporate social responsibility initiative aimed at healthy lifestyles. Supervised by Dr. Kayode Famurewa, a medical doctor and public health personnel, participants took off from the Vantage Beach Resort, Lekki Beach side and ended at the Lekki Roundabout, where Famurewa gave a pep talk. The Managing Director of SAP West Africa, Richard Edet, said: “We are starting this wellness initiative and the plan is to do it regularly. The fitness programme signifies our company’s duty to improve the health of our employees and the populace while enhancing productivity.” The slogan, ‘Walk Better, Start Better’ appeals to both our physical health and execution of ideas within us. “As part of the company’s commitment to help businesses ‘Start Better’, a fund raising was held to solicit donations prior to the walk out and proceeds were used to purchase desktop computers which were presented through Fate Foundation to deserving entrepreneurs.”

THE GUARDIAN, Monday, September 16, 2013

76 SPORTS

Mikel threatened to break Clattenburg’s legs, says referee referee, Mark FonORMER Halsey, has lifted the lid John Obi Mikel’s infamous race row by claiming the Chelsea midfielder yelled ‘I’m going to break your legs’ at Mark Clattenburg. In his autobiography “Added time: Surviving cancer, death threats and the Premier League”, serialised in The Sun on Sunday, Halsey also backed up Neil Ashton’s story that Mikel had to be restrained by the then Chelsea manager, Roberto Di Matteo. He also alleges that the Blues star tried to throw a punch at the official in a dressing room bust-up after Chelsea had lost to Manchester United on October 28 last year. Halsey also claims that referees came close to an allout strike in protest at the lack of support for Clattenburg. He told The Sun on Sunday: “My information was that

Mikel stormed into Mark’s out. dressing room when he was “He agreed and used his told about the remark after Friday press conference to the game, shouting: “I’m say he could not conceive of going to break your legs. You Mark saying such things. It called me a f****** monkey. helped the situation a great “He tried to land a punch on deal.” Mark but was pulled away by Clattenburg missed four a combination of the Di weekends of the season but Matteo and assistant Eddie was cleared of using inapNewton and Mark’s three propriate language. officials, fourth official Mike Mikel received a threeJones and assistants Mick match band and fined McDonough and Simon £60,000 after admitting the Long. FA charge of using ‘threaten“Even before Mark had left ing and/or abusive and/or Stamford Bridge that night, insulting words and/or the press were knocking on behaviour.” the door of his home. The A police investigation into problem was that he could the incident collapsed say nothing in his defence as because of a lack of evidence part of legal advice and and subsequently an FA clauses in our contracts.” probe met the same fate. Halsey says he contacted Manchester United boss Sir Alex Ferguson for help as he felt the referees’ own body, the Select Group, had not offered enough support. RGANISERS of the yearly He added: “I took matters in Copa Lagos Beach Soccer my own hands and rang Sir Kinetic Alex asking him to speak Championship, Sports Management, have announced that preparation for the third edition of the competition has begun. According to the organisers, the three-day tourna-

Organisers ready for Copa Lagos, as FIFA BSWC 2013 begins

Martins’ goal lifts Sounders to MLS top spot IGERIA’s striker, N Obafemi Martins, has returned to action for MLS

Martins

Re-elected ATF vice president, Nnaji, thanks Elegbeleye for support By Christian Okpara IGERIA Taekwondo N Federation’s former President, Jonathan Nnaji, who was recently re-elected as the vice president of the African Taekwondo Federation, has hailed National Sports Commission’s (NSC) Director General, Gbenga Elegbeleye, for coming to his aid when he faced difficulties at the polls. Nnaji, who expressed his shock at the disposition of the Nigeria Taekwondo Federation to his re-election bid, told The Guardian on Thursday that the NSC chief played a vital role in his success. “Before I left for Egypt for the election Elegbeleye prayed for me and urged me to ensure I returned to Nigeria with the position. He was happy that a Nigerian would be in the continental body, so he told me that I should not allow those small countries to take the position from us,” Nnaji said.

Nigeria’s national Beach Soccer team, Sand Eagles, celebrating their victory at the 2012 Copa Lagos Beach Soccer Championship held at the Eko Atlantic…last year. Officials say preparations for this year’s edition of the championship is in top gear.

He, however, expressed his displeasure at the attitude of the Taekwondo Federation, saying he was shocked when he learnt that the Nigeria Taekwondo Federation sent a letter of proxy to an Egyptian and a Ugandan asking them to vote for any member of their choice in a poll a Nigerian was a candidate. “I told NTK President, George Ashiru, that I was going for the election and he wished me well before I left. I was shocked when other officials asked if truly I was a Nigerian when proxy letters from Nigeria were upheld for them to vote for any candidate of their choice. I thank God that I was re-elected but the shock still remains because I served as President of Nigerian Taekwondo Federation for eight years,” he said. Defending the Nigeria Taekwondo Federation’s action at the polls, Ashiru accepted that Nnaji informally told him of his bid for reelection, adding, however, that it was done through the proper channel.

club Seattle Sounders after injury layoff with a goal. Martins opened scoring for Seattle in the third minute to help his team record a 2-0 win over Real Salt Lake FC on Saturday. Seattle Sounders now top the MLS Western Conference table with 49 points from 27 matches. The former Levante and Rubin Kazan of Russia striker now has eight goals and three assists to his credit this season. Last week, Martins returned to action against Chicago Fire after four weeks on the sidelines. The powerful former Newcastle United forward had not played since suffering an ankle injury on August 10.

ment, which will be held in December, is on course to be the stand out event this year. They revealed that plans to enhance the Copa Lagos concert are in motion with discussions on-going with international artistes, adding that the Copa Lagos party is also scheduled to be revamped, with more VIPs, bigger audiences and star performers. The announcement of Copa Lagos 2013 coincides with the kick-off of the FIFA Beach Soccer World Cup, which starts on Wednesday in Tahiti. The tourney is the pinnacle event on the Beach Soccer

calendar, and it will feature 192 players, 16 countries competing for the most coveted prize in Beach Soccer. Russia is the defending champion of the Beach Soccer World Cup, and is expected to face stiff competition from Brazil, whilst Senegal and Cote d’Ivoire will represent Africa. Kinetic Sports Management, CEO, Samson Adamu is aware of the opportunities the Beach Soccer World Cup presents. He revealed, “it is a special year for Beach Soccer with the World Cup taking place. It is a shame Nigeria did not qualify this year. However

we plan to have three nations competing in this year’s World Cup present for Copa Lagos. We would like Nigeria to compete against the world’s best and for our fans to see Beach Soccer at the highest level.” Speculation is rife as to the identity of the three countries, with reports that Brazil or even current world champions, Russia, could be set to compete at Copa Lagos continue to get fans excited. Confirmation of the teams competing against defending champions, Nigeria, at Copa Lagos 2013 will be announced in the coming weeks, he said.

TJ’s National Table Tennis Championship serves off EMIFINALIST at the first STennis Lagos International Table Classics, Kazeem Makanjuola is among the top players expected to begin hostilities as the maiden TJ’s National Open Table Tennis Championship serves off today in Ogun State. The Nigeria Table Tennis Federation (NTTF) has endorsed the one-week competition and it is financed by TJ’s Hotel and Suites in Sango Ota, Ogun State with players competing for the N1 million prize money. Aside Makanjuola, Portugalbased duo, Seun Ajetunmobi and Ganiat Olatunde as well

as national champion, Rasheedat Ogundele will be in action at the tournament with hundreds of cadet players also participating in the competition. Competition manager, Kabir Ajibose, said the dwindling fortune of the game prompted the staging of the championship, which is aimed to complementing the efforts of the Wahid Oshodi-led Nigeria Table Tennis Federation (NTTF) board. With special focus on U-13 (cadet) participants, the organisers intend to make the tournament a yearly event that will be permanent

Captain of Atlantic Conference team, Abayomi Oyeniyi, receiving the winners’ trophy from Managing Director, MultiChoice Nigeria, John Ugbe (third left) and President, NBBF Tijani Umar (right) during the All Stars Basketball Jumpball to mark the 20th Anniversary of MultiChoice Nigeria at Unilag Sports Hall, Akoka, Lagos. With them are General Manager, Marketing and Sales, MultiChoice Nigeria, Martin Mabutho (second left), and General Manager, SuperSport Nigeria, Felix Awogu (second right). PHOTO: FEMI ADEBESIN-KUTI

in the NTTF calendar. States and clubs across the country have confirmed their participation while group matches kick off at TJ’s Hall in Sango Ota, Ogun State today. Explaining the rationale behind the championship, Ajibose said: “There is a noticeable decline in Nigerian table tennis since the turn of the century and this can be attributed to various reasons and prominent among them is lack of regular competition as well as a sound developmental programme that allows for early discovery of talents. “We included the Under-13 (cadet) boys and girls because we believe that with more competitions and a catchthem-young approach, the future would be bright again.” He added: “Gone were the days when we used to have the Bournvita top 16 Classics and the Coca Cola International classics. Then, we had Nigerian players among the top 50 in the world, but now the story has changed, we are not even number one in Africa again. “This is a strong indication that a lot has gone wrong and we thought that something needs to be done urgently to arrest the slide that we seem to have found ourselves. Hence, we thought of the idea of a national championship to allow our best hands to compete as well as discover our future super stars,” Ajibose explained.

THE GUARDIAN, Monday, September 16, 2013

78 SPORTS

Mayweather takes high road, but C.J. Ross’ scorecard a ‘disgrace’ .J. Ross earned $8,000 for C less than an hour’s work on Saturday night. If two other boxing judges had scored in her bizarre fashion, Floyd Mayweather might have been a robbery victim of much greater stakes. Mayweather dominated Saul “Canelo” Alvarez in their super welterweight unification but Ross somehow managed to turn in a 114-114 scorecard, which left the fight a majority decision. Cynthia J. Ross thereby joins Tommy Kaczmarek, who scored for Oscar De La Hoya in a split-decision fight in 2007, as the only judges ever to score a fight against the undefeated Mayweather. It was one of the worst judging performances in boxing history. Problem is, it was perpetrated by a judge with a similar performance in her background just last year, when Ross scored for Timothy Bradley in his widely criticised split-decision win over Manny Pacquiao. “Obviously that scorecard, it

was a disgrace,” Richard Schaefer, CEO of Golden Boy Promotions, said. “How that judge could be appointed after the decision in the Bradley-Pacquiao fight is unfortunately not a question I can answer. But I would urge the media to ask. How can that happen? Is it going to happen again?” Mayweather tried taking the high road. “The best commission in the world is the Nevada commission so I just leave it in the hands of the commission,” he said. “That person could be older. I think it’s a woman. She could be kind of older. Things happen.” But the commission will have to answer for the decision to appoint Ross to a major fight once again, involving one of boxing’s two biggest cash cows, when she already was at centre of a raw decision like BradleyPacquiao. Saturday’s fight wasn’t close enough even for Ross to score for Alvarez but it shouldn’t

have been that close. MLive scored 120-108 for Mayweather, as did Yahoo! Sports. The Associated Press scored 119-109. If not for Ross, the 116-112 (Dave Moretti) and 117-111 (Craig Metcalfe) scorecards also might face more scrutiny. But at least those weren’t too egregious and managed to see the clearcut winner. “It was so one-sided,” said Bernard Hopkins, the all-time great who is often critical of Mayweather and works within Golden Boy Promotions, which promotes Alvarez. “I don’t care who it is, when it is not right, it is not right. I don’t know where it came from.” Floyd Mayweather Sr., who trains his son, was livid. “There’s no way, man,” he said. “That is totally wrong about a draw. A draw where? The man came nowhere close to a draw. The man took a beating, man. If a man gets a draw for taking a beating these days, boxing ain’t going nowhere.”

Murray takes Britain into Davis Cup World group ORLD number three, W Andy Murray, steered Britain back among the Davis Cup elite with a straight sets victory over Croatia’s Ivan Dodig in Umag yesterday. Murray, who turned out for his country for the first time in two years, capped a fine weekend with a 6-4 6-2 6-4 victory to give Great Britain a 3-1 lead and put them in the

draw for the World Group after a five-year absence. The Wimbledon champion, who beat 16-year-old Borna Coric on Friday and then teamed up with Colin Fleming to win Saturday’s doubles, was far too strong for a weary Dodig, who hung on grimly at the end, saving two match points before succumbing. “I’m looking forward to play-

ing against some of the biggest countries in the world, it will be exciting and hopefully I can be part of it,” Murray told Eurosport. Spain, inspired by the return of Rafael Nadal, needed only two days to crush Ukraine 3-0 to retain their place in the World Group, having been required to face a playoff after losing in the first round to Canada.

Floyd Mayweather Jr. (right) hits Canelo Alvarez in the fifth round of their WBC/WBA 154-pound title fight at the MGM Grand Garden Arena, Las Vegas, Nevada. PHOTO: AFP

Bekele beats Farah in battle of distance greats THIOPIA’s Kenenisa E Bekele won the battle of the distance greats when he held off a late surge from world and Olympic 10,000 and 5,000 metres champion, Mo Farah, to win the Great North Run half marathon on Sunday. Bekele, the world record holder over 5,000 and 10,000, won in one hour nine seconds on his debut over the 21.08-km distance from Newcastle to South Shields, with Briton Farah one second behind in wet and windy conditions. Multiple world and Olympic gold medallist, Haile Gebrselassie of

Ethiopia, was third in 1:00:41, an over-40 world best, as the three athletes, who between them have won all the Olympic men’s 10,000 titles since 1996, raced together for the first time. Bekele attacked on a downhill section in the final 1.6 km to pull clear of Farah and Gebrselassie and although the Briton, renowned for his pace on the track, chased down his rival over the last 400 metres he found himself crossing the line in the unusual position of second. “It was a great race and a great finish,” Farah, who will make his marathon debut in

London next year, told BBC television. “When Kenenisa went with a mile to go I thought the pace was ridiculous. I thought I could come back. It came down to the last 200 metres,” added the 30-yearold, who became the second man behind Bekele to simultaneously hold the world and Olympic distance double when he triumphed in Moscow last month. London marathon champion, Priscah Jeptoo of Kenya, won the women’s race in 1:05:44, ahead of Ethiopia’s world and Olympic distance champions, Meseret Defar and Tirunesh Dibaba.

THE GUARDIAN, Monday, September 16, 2013

TheGuardian

Monday, September 16, 2013

Conscience, Nurtured by Truth

By Francis Nmeribe HAD an opportunity to contemplate corruption today. I do not know where it all started. I only remember that the thought of how corruption has destroyed Africa just came and saturated my mind. As I thought about it, a picture of an ALJAZEERA cable TV network programme on how the French government manipulated African leaders under their colonial influence and paid them bribes to allow them get away with their murderous rape of African economies quickly came to mind. Though I was quick to note and settle it in my mind that ALJAZEERA is only working to help make Europe and America bad in our eyes and make the Arab world good. At that point, I thought, “we should not be taking any more anti-corruption rhetoric from these people – Europeans, Americans and whoever comes with dubious pontification about corruption. Come to think of it, corruption is an English language. I believe there are words in German, French, Portuguese, Latin, and Spanish to name but a few that mean the same thing as corruption. The word corruption is not Swahili, Shona, Igbo, Twi, Yoruba, Hausa, Creole or any other language with its origin in Africa. My position is not about acquiescence with anything corrupt and the leprous corruption germs that are now deeply embedded in the blood stream of world political leaders and so obviously damaging to the African family and communal system. The whole idea which I was able to conceptualise during this thinking process is for us to stop any fight against corruption because it is not winnable. If anything, all efforts to fight corruption would only make the corrupt people and corruption heroes and heroic in the mind and eyes of our children whom all of us including some of the corrupt people I have known closely would want to shield from corruption and its impact on the society. Secondly, all the people that have headed anti-corruption agencies in the world especially in Africa that I know or have heard about have ended up in the deep and muddy mire of corruption before the end of their tenure. Anti-corruption agencies investigators and staff in Nigeria, Kenya and many other African and European countries I have read about have ended up being jailed for getting involved in corruption themselves. In the place of fight against corruption, I propose that we engage in a race against corruption and corrupt people. In this game, all those who have made the decision not to be involved in corruption should bind themselves together in some form of society. The society should not have any name that is associated with corruption. The society should not be anti-corruption society. Instead, it could be integrity society. Meetings and discussions should not be talking about how to avoid or tackle corruption. Instead it should be filled with stories and case studies of the lives of men and women of integrity who made great and big successes in life. In fact, it should not even talk about those who repented from corrupt practices. If there be such people, they should talk about their new life and its benefits for their peace of mind and heart and shall have nothing to do with the word corruption. I realise that it would be a lot difficult to live in a corrupt society without talking about it. Also, it would be impossible to race against corruption without talking about it. However, those involved should deliberately lay emphasis on positively living with integrity than living without corruption. Let’s think about this in terms of light and darkness. You do not fight darkness. In fact, you cannot fight darkness whether literarily or metaphorically by trying to remove darkness. The deathblow to darkness is the

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increase of light. Richard Eromosele put it this way: ““Every human no matter how excellent, must have his areas of strength and areas of weakness. In order to excel, it is only proper that we further work on our areas of strength, so much that it will impact on our weakness. By way of analogy, let us examine darkness and light. You don’t have to fight darkness. When the light is too much, darkness will disappear on its own volition. Strengthen your areas of strength, and your weakness will continue to diminish on its own.” (Vanguard, Nov. 15, 2010). Drawing from Richard’s account above, let us see corruption for what it is – a national malaise, a weakness. And I agree with him that our best effort in dealing with our weaknesses is to strengthen our areas of

strength. If we keep harping on our weaknesses, it would soon start sounding adventurous to younger minds. Any effort to help young people to stay away from vices in which you laid great emphasis to how you were involved in it and how you learned your lesson the hard way have always ended up making them more defiant. You have probably been faced with the awkward situation when a youngster tells you: “Well, old man, you did it during your time and later changed and here you are today, successful and teaching me to avoid exactly the same things you did which did not stop you from being in a position to teach and pontificate to me.”

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Meanwhile, our best efforts would come from people who would individually make decisions to live the life of integrity. Exemplify the ideology of integrity, fair play and service for their children and all those under their influence to emulate. It is in the individual living that the best would come for a new society. My confidence in this line of thought stem from the fact that all the people who have been corrupt have created more problems for themselves and their children and loved ones than they have solved. While working as a support staff to the Special Investigation Panel set up in former Anambra State by the regime of Major General Mohammadu Buhari against the politicians he overthrew in a military coup which to me was not just an aberration but also corruption, I witnessed men and women who were learned in the academic way of life misuse public trust. There were professors, doctors, masters degree holders who are by their effort at education and age as they ranged from 35 to 60 years of age were expected to be leaders of the people in their political appointment. All these people regardless of their status got themselves mired in corruption and immorality. It was so bad and appalling. One of the members of the panel was inspired to write a small book which I typed out for him. The title of the book by Barrister Erasmus Njoku, which never got published, which I think should, is entitled “Flight From Poverty”. He felt that these politicians and people from the academia, who held political appointments involved in very dirty dealings were running away or thought they, by the corrupt means, could run away from poverty. How sad and how naïve even for the so-called educated people. Those of us who may bind in a society or by individual decision to increase integrity so that corruption would run away by ‘its own volition’ know that you cannot be wealthy from corrupt enrichment. Riches can only be a small element in wealth. So those who corruptly enrich themselves cannot lay any claim to wealth. They may lay claims to some materials and pleasures of the world but these are the same that the scriptures say that “moth doth corrupt”. In other words, they have but, have nothing at all that is of value. The mindset for wealth is the same mindset for creation. If you create something, it is created by you. If you stole something, it is stolen by you. They are clearly different from each other. Wealth is created while riches are acquired. Corrupt acquisition of riches has the same definition as “stealing” in my training on Police Duties at the training school many years ago. Nobody can successfully steal his way to wealth. We all know where the materials acquired by armed robbers, drug dealers, corrupt politicians go. They are never bequeathed to anybody. They are immediately wasted by their children, siblings, wives and even enemies where they are not confiscated by government. My former Bishop, Justice Chiemela Ehiodo put the whole scenario surrounding corrupt people this way. He said: “Those who steal public funds or trust end up wasting those resources they have stolen and destroying their own lives”. There is no better way to describe the condition of corrupt people. As the few men and women of integrity continue to deal with their lives according to good conscience, we would watch and see the estate of the corrupt waste and in due course and in an evolutionary way, people would learn. So let’s stop wasting our time, resources and more of our people in the fight against corruption. Instead, let’s begin the race today be increasing integrity wherever we are.