The Nation April 02, 2012

Nigeria’s widest circulating newspaper

News Govt to Lagosians: don’t ignore heavy rainfall prediction P7 Sports Ex-boxing champ Holyfield in Badagry to confirm his roots P24 Business ‘Obstacles to Okonjo-Iweala’s World Bank presidency bid’ P2 www.thenationonlineng.net

TR UTH IN DEFENCE OF FREEDOM TRUTH

VOL. 7, NO. 2083 MONDAY, APRIL 2, 2012

N150.00

IT’S PALM SUNDAY

•A cross section of Catholic faithful during a Palm Sunday procession in Abuja ... yesterday

PHOTO: NAN

30 dead in Adamawa fire

Why Jonathan is yet to sign budget

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N

O fewer than 30 people were yesterday burnt to death in a tanker fire in Adamawa State.

According to an eyewitness, the people were scooping petrol from a tanker that fell and spilled its content.

The disaster occurred at Gani Gaku in Demsa Local

From Yusuf Alli and Nduka Chiejina, Abuja

HE President is yet to sign the budget because of some technical errors in the document, The Nation learnt at the weekend.

But the Budget Office and National Assembly committees may meet this week to “clean up” the document. After the clean-up, the Budget Office will then Continued on page 4

•Dr Jonathan

From Barnabas Manyam, Yola

Government Area disaster occurred.

Sources said as the people were scooping petrol, there was an explosion which was followed by an outburst of fire.

Medical officials confirmed that many bodies, were de-

posited at the General Hospital, Numan mortuary.

Those injured were treated at the Specialist Hospital in Yola. But officials declined to give the casualty figure “because we are not authourised to speak”.

Many sympathisers have been visiting the scene of Continued on page 4

N32.8b pension fraud: KPMG for rescue job

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UDITING giant KPMG has been hired to clear the multi-billion naira mess in the pension system.

The firm is expected to work with the Police Pensions Reform Task Force to put the office in order.

But, there is pressure on the Presidency to allow the Task Force complete its assignment before KPMG takes over.

From Yusuf Alli, Abuja

Besides, a Forensic Examination Report on the police pension fraud has uncovered five ways funds were looted by directors and top officials of the unit.

A former Head of Service may be questioned by antigraft agency, The Nation learnt yesterday.

Over N32.8billion has been looted in the Pensions Office.

N151.6b N4.5b N32.8b

FACTS AND FIGURES •The stolen pension cash recovered by the Task Force •Value of the six properties the EFCC siezed from a former director of Pension Administration, Sani Teidi Shuaibu •Permanent Secretary Atiku Abubakar Kigo is remanded in prison custody after being charged with criminal breach of trust over N32.8b cash. Also charged are: Ahmed Inuwa Wada, John Yakubu Yusufu, Mrs Veronica Ulonma Onyegbula, Sani Habila Zira and Esai Dangabar.

Six top government officials on trial over the alleged fraud.

Those arraigned by the Economic and Financial Crimes Commission(EFCC) are the

Permanent Secretary in the Office of the Head of the Civil Service of the Federation,

Atiku Abubakar Kigo, Esai Dangabar, Ahmed Inuwa Wada; John Yakubu Yusufu, Mrs. Veronica Ulonma Onyegbula and Sani Habila Zira.

The Federal Government has decided to overhaul the police pension system and sanitise it.

According to sources, although the government acContinued on page 4

•SUBSIDY PROTEST VICTIM SUES PDP SECRETARY OYINLOLA P6

THE NATION MONDAY, APRIL 2, 2012

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NEWS RACE FOR WORLD BANK PRESIDENCY

Okonjo-Iweala...

Finance Minister Ngozi Okonjo-Iweala has all the experience and skill to be the next president of the World Bank. But does the bank have the courage to select its first boss from the developing world?

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•The body of the late Haruna being lowered into the grave...at the weekend

•One of the late Haruna’s daughters carrying a wreath

• SELLING AFRICA TO THE WORLD WORLD:: Florian Witts, Commerz Bank (Africa), Bismark Rewane, MD Financial Derivatives, Andrew Alli, CEO African Finance Corporation, Phillips Oduoza, GMD/CEO UBA, Yvonne Ike, CEO Rencap West Africa, Sulaiman Barau, Deputy Governor, CBN, Oscar Onyema, CEO Nigerian Stock Exchange and Christian Wessels, Partner Roland Berger Consultants at the Africa Investors Conference in Berlin Germany

•

•Rivers State Commissioner for Finance, Mr. Chamberlain Peterside (left) cutting the tape at the inauguration of the state's new payroll office in Port Harcourt… at the weekend. With him are the Accountant General, Sir Ngozi Abu, Zenith Bank representative, Patrick Okewu and the Special Assistant to the Governor on Information Technology (ICT), Mr. Goodliffe Nmekini.

GOZI Okonjo-Iweala is a Nigerian iron lady. When she was 15, she strapped her three-year-old, malaria-fevered sister to her back. “It was really hot, I was very hungry, I was scared because I knew her life depended on me getting to this woman [doctor],” Okonjo-Iweala recalled in 2007. “I walked 10 kilometres, putting one foot in front of the other.”

When she arrived, nearly a thousand people were trying to break down the door of a makeshift clinic.

Okonjo-Iweala crawled between their legs and climbed through the window, just in time for the doctor to save her sister’s life. Then came the return journey. “It was the shortest walk I ever had. I was so happy that my sister was alive. Today she’s 41 years old, a mother of three and she’s a physician saving other lives.”

From those wretched days, Okonjo-Iweala rose to become Nigeria’s first female finance minister and nemesis of corruption. She has been lauded by Bono and Gordon Brown, who called her “a brilliant reformer”. Now she is an outside bet for president of the World Bank, an appointment that would be a watershed moment for Africa and the developing world.

The Economist magazine put it thus: “When economists from the World Bank visit poor countries to dispense cash and advice, they routinely tell governments to reject cronyism and fill each important job with the best candidate available. It is good advice. The World Bank should take it. In appointing its next president, the bank’s board should reject the nominee of its most influential shareholder, America, and pick Nigeria’s Ngozi OkonjoIweala.”

The 57-year-old is a triple threat with experience in government, in economics and finance and in development, the magazine argued, a boast that cannot be made by her rivals, Colombia’s José Antonio Ocampo, or Barack Obama’s choice, Jim Yong Kim. Victory for the Nigerian would shatter the near 70-year duopoly of the World Bank and IMF enjoyed

by America and Europe respectively. As emerging economies such as Brazil overtake Britain, it would be an acknowledgement that the global order is recalibrating. It would also be a defining moment for Africa, long under the boot of foreign powers and financial institutions, but now enjoying a renaissance with six of the world’s 10 fastest growing economies.

“The World Bank was the instrument by which structural adjustment was imposed on Africa in the 1990s,” said Richard Dowden, director of the Royal African Society. “It was the most brutal economic policy, it destroyed the livelihoods of millions of people and caused disruption and terrible insecurity.

“That an African should then become head of it would be hugely symbolic. The bank has been utterly directionless in recent years, and Okonjo-Iweala would be a great choice to change that. She’s a very bright woman, absolutely no nonsense: the bullshit factor is extremely low with her.”

Okonjo-Iweala is a workaholic who, in her little spare time, enjoys

swimming and reading autobiographies and fiction by PD James, Arthur Conan Doyle and contemporary African writers such as her compatriot Chimamanda Ngozi Adichie. Born in 1954, when Nigeria was still part of the British empire, it’s been reported that she perfected her English by reading Enid Blyton, Treasure Island and Bobbsey Twins mysteries. She attended one of the best schools in the country and studied ballet and the piano in what she once described as a “magical and happy childhood”.

But the family’s life was turned upside down by the outbreak of civil war in 1967. Her father became a brigadier in the Biafran army and went to the front line. The family was forced to move from place to place, surviving on one meal a day or less. The war ended with more than a million dead, many lost to starvation.

Aged 18, Okonjo-Iweala went to the US to study economics at Harvard and the Massachusetts Institute of Technology, began working for the World Bank and married a surgeon, Ikemba. They have one daughter and three sons including a writer, Uzodinma, whose works include Beasts of No Nation.

Okonjo-Iweala looked set to be just one more great mind lost to the African diaspora. But things were changing at home. In 1999 Nigeria emerged from military dictatorship to hold civilian-run elections. The winner, Olusegun Obasanjo, asked Okonjo-Iweala to write a brief for economic reform. It persuaded him she was the woman to bring the chaotic finances to book and awaken one of Africa’s sleeping giants.

“When I became finance minister they called me Okonjo-Wahala – or ‘Trouble Woman’,” she said in a 2005 interview “It means, ‘I give you hell.’ But I don’t care what names they call me. I’m a fighter; I’m very focused on what I’m doing, and relentless in what I want to achieve, almost to a fault. If you get in my way you get kicked.”

In 2003, Nigeria was deemed the most corrupt place on earth by Transparency International.

Okonjo-Iweala, whose typical working day ran from 6am to 11pm, set about slaying the dragon that costs the nation $15bn (£9.37bn) a year. Her team found that there were 5,000 more names on the civil service payroll than people turning up for work; they used biometric testing to separate the real workers from the “ghosts”.

Okonjo-Iweala declared war on the culture of kickbacks, firing officials and ministers and clamping down on the notorious letter and internet confidence trick scams by sending hundreds to jail. She made the energy sector more transparent and targeted political and military leaders who stole crude oil, making powerful enemies and potentially putting her life at risk.

She was the victim of a smear campaign that raised questions over her salary and house in Washington. There were attacks on her reputation on the internet. Her home address was published and her husband received death threats. “Fighting corruption, corruption tends to fight back,” she told The Observer.

THE NATION MONDAY, APRIL 2, 2012

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NEWS

CY

RACE FOR WORLD BANK PRESIDENCY

Obstacles to her World Bank presidency quest

•Okonjo-Iweala

Analysts suggest it was because she was too good at her job, and following the money too diligently, that Obasanjo got cold feet and gave her no choice but to resign. She returned to Washington, and her family, as managing director of the World Bank from 2007.

Last year she went back for a second stint as Nigerian finance minister under President Goodluck Jonathan; in fact many regard her as his prime minister in all but name. Not everything has gone smoothly, however: she slashed a $7.5bn (£4.68bn) fuel subsidy that millions of impoverished Nigerians viewed as their only benefit from the country’s oil wealth, resulting in mass protests.

Now she could return to the World Bank yet again, this time succeeding Robert Zoellick in the top job. She is clearly Africa’s choice, having received the backing of South Africa, quite a feat at a time when the continent’s biggest economy and its most populous nation are at each other’s throats over matters petty and profound.

Nigerian-born Adekeye Adebajo, executive director of the Cape Town-based Centre for Conflict Resolution, said: “It would be incredible. The anachronistic idea of American and European leadership

F

•Jim Yong

•Zoellick

THE OKONJO-IWEALA FILE Born Ngozi Okonjo in Delta State, Nigeria, on 13 June 1954, the daughter of academics. She married her childhood sweetheart, Ikemba Iweala, a fellow of the Royal College of Surgeons, and has a daughter, Onyi, and three sons: Uzodinma, Okechukwu and Uchechi.

BEST OF TIMES By 2006, Okonjo-Iweala’s crusade against corruption had won her the Nigerian of the Year award.

WORST OF TIMES At the end of the Biafran war in 1970, her family had lost everything. Okonjo-Iweala’s father asked his seven children: “Look around you. What do you have?”

Okonjo-Iweala replied: “Nothing.” He corrected: “You have a head on your shoulders and you have a brain. Use it. Even if you lost everything, you can start again.”

SHE SAYS “I think being a woman makes you able to deal with a lot of things - and still keep sane. I also think women have less ego. If someone’s saying things to make me feel bad, I don’t care as long as I get the job done. When it comes to doing my job, I keep my ego in my handbag.”

does not reflect the current state of the world. It would be a good thing if someone from the global south were to take over.”

Okonjo-Iweala has the right credentials for the bank, Adebajo added. “She’s been an insider there as managing director and is finance minister of one of the emerging economies which is about to take over from South Africa as the biggest in Africa. She’s certainly someone of substance and would be respected.”

Tolu Ogunlesi, a Nigerian journalist and blogger, said: “I have no doubts about Ngozi OkonjoIweala’s brilliance, competence, and passion for Nigeria. A lot of the goodwill she has today dates back to the work she did, alongside others, to clean up Nigeria’s public sector, and clear our crushing burden of foreign debt.

“But she lost a chunk of that goodwill during the fuel subsidy protests in January. Her spirited defence of the subsidy removal – she was one of the most vocal pro-removal voices – portrayed her as an antipeople person, and there are Nigerians who will never be able to see her in another light.”

The fuel protests have planted doubts over whether OkonjoIweala’s political instincts match her

economic judgment. But she countered last week: “You have fuel protests in the UK right now. This is what happens in every country. I don’t know why people single Nigeria out.”

No one doubts her determination to fight Africa’s corner. “The tide has absolutely turned,” she told the Observer. “After two decades of lost growth, the last decade has seen strong growth. The continent has rebounded from the financial crisis quicker than others. I feel very optimistic. The world is now looking at Africa as an attractive investment destination as opposed to a place where aid is sent.”

She is seen as an orthodox economist who takes a pragmatically positive view of China’s expanding role on the continent. In a TED talk on aid versus trade in 2007, she argued: “The UK and the US could not have been built today without Africa’s aid. It is all the resources that were taken from Africa including humans that built these countries today. So when they try to give back we shouldn’t be on the defensive. The issue is not that. The issue is how we are using what is being given back? How are we using it? Is it being directed effectively?”

•Culled from www.the guardian.co.uk

How Okonjo-Iweala can get the job, by Kalu

ORMER Abia State Governor Orji Uzor Kalu has urged President Goodluck Jonathan to engage the services of former Commonwealth Secretary-General Emeka Anyaoku to push the candidature of Finance Minister Ngozi Okonjo-Iweala for the World Bank presidency.

Kalu, in a statement, said OkonjoIweala needs more than the support of Africa to make an impact in the race.

He said: “We all know that President Barack Obama of the United States has anointed Prof. Kim Yong Kim. But I think the Europeans have not made a move yet. Agreed that the U.S. as major stakeholders, always produced the head of the World Bank, just as Europe leads the

•Group drums up support

From Damisi Ojo, Akure

International Monetary Fund(IMF).I think in the United Kingdom, there is a feeling that the American candidate does not have the experience for the job. That is why I am calling on President Jonathan to use Chief Anyaoku’s links with the U.K to penetrate Europe.”

The ex-governor described Okonjo-Iweala as the right person for the job, especially with her experience as two-time Minister of Finance and Managing Director of the World Bank.

He added: “She has got the brain to lead the World Bank. Talking

about merit, the minister is outstanding. Dr. Okonjo-Iweala is also clean as nobody can describe her as corrupt. As clean as Professor Kim might be, he is more at home with Public Health than international monetary politics. The World Bank does not need surgery yet.”

Kalu also advised that a team of experts should work with Anyaoku.

He said: “We have Nigerians who can reach out to World Leaders beyond Africa. Men like Prof. Wole Soyinka, Prof. Chinua Achebe, Mr. Nduka Obaigbena, Chief Olusegun Obasanjo and General Abdusalam Abubakar. Let all be involved in this

huge project. It will be interesting to have a woman lead the World Bank just as Christine Lagarde is heading the IMF.” Also, a non-partisan group, South West Youth Leaders’ Association (SWYLA) has appealed to Nigerians to back Finance Minister Ngozi Okonjo-Iweala’s bid to become the president of the World Bank.

The group, in a statement by its General Secretary, Comrade Gbenga Awoyinfa yesterday, urged Nigerians at home and abroad to back Okonjo-Iweala for the World Bank job.

The group said Okonjo-Iweala as

the World Bank President will boost Nigerian’s image among the comity of nations.

The group said Okonjo-Iweala has what it takes to transform the World Bank into an enviable position.

The statement reads: “This is the time to through our weight behind our own for the world bank plum job. To us, Okonjo-Iweala is the most qualified candidate for the position.

“Let’s all show our support & pray for her to secure World Bank top job.

It would be a plus for all Nigerians; it will boost the country image globally.

“We should collectively be united to give her our moral support and everything she desires to get to that position.”

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THE NATION MONDAY, APRIL 2, 2012

NEWS

N32.8b pension fraud: KPMG for rescue job Continued from page 1

•Minister of State for Finance Dr Yerima Ngama speaking during the launch of Infrastructure Bank Plc’s logo in Abuja. With him are (from left) Minister of Trade and Investment Dr. Olusegun Aganga; Managing Director Mr Adekunle Oyinloye and Chairman Alhaji Lamis Dikko.

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Explosion kills man in Kaduna

N explosion yesterday rocked Ungwan Muazu area of Kaduna metropolis, killing the man suspected to be carrying an explosive device.

Two people were injured as residents scampered for safety.

The explosion occurred at about 6.40 pm as the man came out of his house apparently on his way to plant the device in an undisclosed place.

An eye witness who claimed to be present when the explosion took place said: “the explosion happened in my presence. I was coming out of Ungwan Muazu when I heard the sound. As people were running, I moved to the place. The bomb killed the person who carried it and injured two persons at the scene.”

Men of the state special security outfit, Operation Yaki, were immediately mobilised and they cordoned off the area even as residents ran in

different directions following the confusion created by the explosion.

Police spokesman Aminu Lawal confirmed the explosion in a telephone interview.

He said: “Yes, it happened and we have mobilised our anti-bomb squad to the place.

However, based on the report I got from the place, I can confirm that one person died”.

Gunmen suspected to be Boko Haram members yesterday launched attacks in Potiskum and Nangere local government Areas of Yobe State. They torched two police stations. Police spokesman Toyin Gbadegesin confirmed the attacks.

He said: “There was an attack yesterday at about 7.00pm. Yendiski Police Station in Potiskum and Nangere Police Divisions were burnt down by suspected Boko Haram mem-

bers. “They came in a Hilux bus and a Golf saloon car and opened fire on the stations. A suspect, who was undergoing interrogation, was killed. One of the sect members was also killed, but his body was taken away by his colleagues.

“At the Nangere Police Division, a similar attack took place. The assailants came from the bush, detonated explosives at the station and later went to the local government secretariat and destroyed equipment, doors and windows,” Gbadegesin added.

The Yobe police spokesman said part of the challenges the Joint Task Force (JTF) and his men were facing is the terrain in the state.

In neighbouring Borno State, suspected Boko Haram men also yesterday killed Caretaker Chairman of the

Chibok Local Government Mr. Wanandu Kashau, in Maiduguri.

He was shot dead yesterday at about 12.30 pm at his Abbaganaram Low Cost Housing Estate residence by two gunmen while having lunch in the company of his friend after attending a church service.

On arrival, the gunmen reportedly ordered his friend to go out and then demanded N100,000 from the chairman, which he was said to have given them.

The gunmen also collected his car key before shooting him in the presence of his children. His wife was said to have travelled to Chibok, their home town. The gunmen escaped after the operation.

The remains of Kashau were later removed by the police and taken to the University of Maiduguri Teaching Hospital mortuary at about 2 pm.

The Borno State Police spokesman Samual Tizhe confirmed the killing.

“The Budget Office had completed the analysis yesterday but it noticed some technical errors in the bill as passed by the National Assembly.

“These technical errors have to be cleaned up before the Budget Office can advise the President to assent the 2012 budget or not.”

Asked to be specific on the technical errors, the source added: “For example, there are some ongoing projects in the Niger Delta but no money was allocated for their completion. The funds meant for the projects were put elsewhere.

“Also, since the National Assembly raised the benchmark to $72 per barrel, it means automatically that statutory funds for the NDDC and the Universal Basic Education Commission (UBEC) will go up. But the reverse was the case in the bill sent.

“We have many other errors like that which we need to clean up.”

Responding to a question, the source added: “There is no disagreement between the Presidency and the National Assembly at all on this budget.”

Another official in the Budget Office said: “The budget has not been sent to the President for his signature because of some “irregularities” with the budget the legislators passed.

“The irregularities noticed in the 2012 budget by the ministry and the Budget Office had to do with some components of the budget like the administrative capital which the Executive had drastically reduced to free up more money for infrastructure development.

The National Assembly retained some of the Administrative Capital.

“Administrative capital

deals with the funds in the budget set aside for the provision of office furniture and equipment, which the government believes could be forfeited to make more money available for other serious capital projects - in line with the administration’s desire to deliver on social infrastructure.

“Also, the budget figures for the Legislature were said to have been jacked up by the National Assembly. This does not go well with the Executive.”

Despite these irregularities, the Budget Office official said President Jonathan is anxious to sign the 2012 Budget into law.

The official also denied any friction between the executive and the legislature, stating that “the executive has done its ground work to ensure that there is no conflict of interest between both arms of government”.

•Gunmen torch police stations in Yobe •Council chief killed in Maiduguri

knowledged the good work done so far by the Task Force, headed by Abdulrasheed Maina, it also saw the need to engage KPMG to put a sustainable system in place.

KPMG is likely to work with the Task Force.

A letter by the Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, who is also the Minister of Finance, explained the position of the government.

The letter reads: “This is to formally notify you that His Excellency, Dr. Goodluck Jonathan (GCFR), President and Commander-In-Chief of the Armed Forces, Federal Republic of Nigeria, has directed that I review the processes and structure of the Public Service Pension System, including the work of the current Police Pensions Reform Task Force.

“In this light and with the express approval of Mr. President, I have retained the firm of KPMG to review the Nigeria Police Pension System, and the work already carried out by the Police Pensions Task Force.

“I am hereby instructing you personally, each member of the Task Force individually, to give full and unfettered cooperation to the KPMG officers.

“This includes giving access to all files, computers details of accounts and all other data that would ensure a full and complete review of the Police Pensions Scheme and the work carried out to date by the Task Force.

“Please note that the directive contained in this letter supersedes and overrides any other directives that might have been given with regards to the Police Pensions System or to the Task Force.

“Therefore, any actions taken by members of the Police Pensions Task Force counter to those contained in this letter would be considered prejudicial to the mandate by Mr. President and the directives of the Coordinating Minister of the Economy and Hon. Minister for Finance; and such members would be held fully accountable for their actions.”

Why Jonathan is yet to sign budget

Continued from page 1

advise Dr Goodluck Jonathan to sign the document or not.

After harmonisation, the Senate and the House of Representatives on March 15 passed a budget of N4.88 trillion with a benchmark of $72 per barrel.

The vote was increased from N4.65 trillion proposed by the Executive.

It was gathered that although the budget was passed on March 15, the Executive did not get the details until last Wednesday from the National Assembly.

A source, who spoke in confidence, said: “The main bill was submitted two weeks ago, but the government did not get the details until March 28.

“These details were about 3,000 pages and upon the receipt of these, the Budget Office and the Ministry of Finance worked round the clock to analyse the details.

•Dr. Okonjo-Iweala

A total of N151.6 billion cash allegedly stolen from pension funds has been recovered by the Pension Reform Task Force.

Forty-seven bank accounts used to stash away over N100 billion of the funds by a cartel have also been uncovered, according to an investigation in Abuja.

A status report submitted to the Federal Government confirmed that the task force has so far recovered N151.6 billion pension funds from various accounts in the Office of the Head of Civil Service of the Federation and the Police Pension Office.

Dr. Okonjo-Iweala and the Accountant-General of the Federation, Mr. J.O. Otunla, have already launched a fresh initiative to harmonise pension accounts.

It was also learnt that the Office of the Accountant-General of the Federation was unaware of the operation of the secret accounts.

The report said in part: “At the inception of the task team, the Office of the Head of Service (OHCSF) operated about 47 bank accounts (some of which had amounts raging from N2 billion downward.

“As at today, instruction has been given to the banks having account with OHCSF pension to collapse all the operational accounts to one account each, where more than one account is being operated.

“At the end of the instruction, 14 bank accounts are expected to be in operation even though the Task Team recommended three accounts only.”

It was learnt that the scattered pension funds have now been mopped up and harmonised accordingly.

A separate memo from the task force gave the breakdown of the N51.6 billion recovered so far as follows: N64.6 billion—savings from reduction of Pension Wage Bill from N5 billion per month to N3.4 billion from June 2010 to December 2011.

N24 billion—carted away by former staff of the Office of the Head of Civil Service of the Federation.

N35 billion—idle pension funds located in various banks by the Task Force.

N28 billion—saved from the restructuring of the Police Pension Office in three months.

The report added: “The Task Team has adopted an e-Pension Management System where all relevant agencies can log in and monitor the activities of the Head of Service Pension, Police Pension and CIPPO. “Smart cards will also be issued to all pensioners so that they can verify themselves at their leisure, thereby cutting hundreds of millions which government expends on quarterly pensioner verification exercise in all the pension agencies.

30 dead in Adamawa fire

Continued from page 1

the disaster.

Police spokesman Nemuel Yoila confirmed the disaster but declined to give further information, saying: “we are aware and we are investigating.”

OUR ERRORS •The Onigbinde story promoted on the front page on Friday was not run due to technical hitches.

•The headline on page 27 of this edition should have read: “Cash-less stakeholders’ wish prevails as charges begin today”. The errors are regretted.

ADVERT HOTLINES: 01-280668, 08070591302, 08052592524 NEWSROOM: LAGOS – 01-8962807, ABUJA – 07028105302 COMPLAINTS: 01-8930678

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THE NATION MONDAY, APRIL 2, 2012

NEWS

Nigerian who tried to rape cleaner dies after being beaten

•Asiwaju Tinubu (third right), his wife Senator Oluremi, cutting the cake at a special luncheon organised by Elders of ACN ...yesterday. With them are: Prince Olusi (right), Oba Hamzat and Chief Bushura (left).

PHOTO: NIYI ADENIRAN

Lagos ACN elders advise Tinubu to run for president

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AGOS State Action Congress

of Nigeria (ACN) yesterday asked former Governor Bola Tinubu to consider running for presidency.

The elders, Oba Olatunji Hamzat, Prince Tajudeen Olusi and Otunba Busura Alebiosu, spoke at a luncheon in honour of the party’s national leader held at the Golden Gate Restaurant, Ikoyi. It was organised by the “Elders of Lagos ACN” to mark the 60th birthday of Tinubu, who used the opportunity to reflect on his political ascendancy, right from the Third Republic.

Accompanied by his wife, Senator Oluremi, and associates who came from overseas for the ceremony, the ACN leader cut his birthday cake, amid applause by dignitaries.

Oba Hamzat said: “This man has played local politics enough. Now, we want him to play national politics. Awo worked to become the President, but when he died, he became the best President Nigeria never had. We want him to become the President of Nigeria. Look at the problems we are having now. In Ghana, electricity is regular, but light has gone off thrice now where we are. He can fix those problems”.

Thanking the elders and leaders for their support for him since he vied for the Lagos West senatorial seat, he also applauded them for not jumping the ship at critical moments in the lives of their political caucus groups.

Tinubu said: “This is my happiest moment. I wanted to travel to Ghana, but this is the most important meeting. Credit yourself; this is what you have made of me. You elders, through God Almighty, made it possible. I was just a financier of a rebellious group. I took after Alhaji Hamzat, Prince Olusi and Otunba Alebiosu’s rebellious attitude.

“We quarrel, we argue, we disagree, but we have never engaged in anti-party activities. We never betrayed ourselves and we have never failed. Thank you for making a good politician out of me”.

The event was witnessed by Lagos State Deputy Governor Mrs. Tawakaliku Orelope-Adefulire, her predecessors, Princess Sarah Sosan and Prince Abiodun Ogunleye, Aremo Olusegun Osoba, Sir Pius Akinyelure, Asiwaju Olorunfunmi Basorun, Alhaji Akanni Seriki-Bamu, Pa Abiodun Sunmola, Cardinal James Odunmbaku, Senator Olorunnimbe Mamora, Senator Tony Adefuye, Alhaji Mutiu Aare, his wife,

Senators, Reps, NBA fete ACN national leader

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From Victor Oluwasegun, Abuja

HE 60th birthday celebration train of Asiwaju Bola Tinubu will today hit the Federal Capital Territory (FCT).

Senators and House of Representatives members under the aegis of Friends of Asiwaju (NASS) will host a dinner for the National Leader of the Action Congress of Nigeria (ACN) and former Governor of Lagos State at the ThisDay Dome.

The event tagged: “Dinner in Honour of Asiwaju Bola Tinubu at 60”, is expected to have serving and past lawmakers on the platform of ACN in attendance.

The Nigerian Bar Association (NBA) will tomorrow, in Ibadan, the Oyo State capital, present Tinubu with an award of recognition for his “boldness” in creating additional council development areas in Lagos.

The award, a brain child of the Local Government Reform\Community Access To Justice Committee of NBA, according to a statement by its Chairman, Niyi Oshinubi, will take place at the NBA Bar Centre, Iyaganku .

The association said:” Your Excellency shall be given recognition Award for your boldness at creating additional Local Government Development Areas and thus bringing government closer to the grassroots and deepening the citizenry access to justice in Lagos State through the establishment of various access to justice and fastrack channels such as: Office of the Public Defender, Arbitration Dispute Courts, etc.”

Governors Abiola Ajimobi, Rauf Aregbesola and Kayode Fayemi are expected at the ceremony.

NBA President Joseph Daudu (SAN) and his predecessor, Oluwarotimi Akeredolu (SAN) will also be in attendance.

By Emmanuel Oladesu Deputy Political Editor

Alhaja Rashida, Chief Rabiu Oluwa, Mrs. Toun Ajomale, Dr. Shamsedeen Amuwo, Dr. Kayode Sonaike, Dr. Tunji Alausa, and Dr. Jide Salako.

Oba Hamzat recalled that he had perceived Tinubu as a man of the future 25 years ago, when he donated generously to the party’s purse for the oiling of its electoral machinery.

Oba Hamzat added: “At that time, we did not know that he was behind our group, donating generously.

That was during Sarumi/Agbalajobi saga. I did not know the money was coming from him. Later, it was revealed when he agreed to go for the Senate.

“Odu Olukosi was a contestant. He said he knew Tinubu would win, but that he would disturb us by invoking the rain. He waved his handkerchief and there was rain. But the delegates did not disperse. He won the primaries and general election . That was when I dreamt that he would shake the polity.”

Oba Hamzat said, although Tinubu wanted to become the Senate President, party elders prevailed on him to step down for Dr. Iyocha Ayu, adding that when he was forced into

exile by the military, he did not financially abandon the group that threw him up as a promising politician.

Reiterating the backing of the elders for Tinubu’s future political endeavours, he added: “As long as we see you in front, when there is a political war, if you look back, you will see us.”

Olusi, who described himself as one of the leaders who discovered Tinubu, recalled that he had told the group that Tinubu would be governor since the Third Republic, adding that his traits threw him up for leadership.

Olusi said: “I want you to continue to be a foremost Nigerian. I don’t want you to confine yourself to Yorubaland. We want you to be a national leader.”

Alebiosu congratulated the celebrator, saying: “I wish you the best of luck. I want you to become the future President of Nigeria”.

Mrs. Orelope-Adefulire, who described Tinubu as a father, mentor, motivator, counsellor and teacher, said the ACN national leader is endowed with a rare courage.

She added: “He is a special being.

Tinubu has developed a lot of people.

He is courageous. He created the Min-

istry of Women Affairs and Poverty Alleviation and brought women into politics, parliament and executive council. He is a gender-friendly leader.”

Sosan described Tinubu as a kind man who had impacted on lives and groomed women for responsible positions in public life.

Basorun said: “I was not in his party when he selected me, through a letter signed by his Chief of Staff, Babatunde Fashola, as a delegate to the Abuja Political Conference. I had to leave PDP when dogs started eating dogs. I urge you to remain prayerful and humble and God will give you your heart’s desire”.

Sunmola extolled Tinubu’s qualities, praying to God to give him the wisdom to always triumph.

Mamora said: “Asiwaju cannot be over-celebrated. We are celebrating a celebrity in his own right.”

Osoba thanked the elders for standing firmly behind Tinubu, saying that he has erected lasting legacies.

He added: “He has created succession in the state and across the ministries. He is a man of resolute mind who has the tenacity of purpose to pursue political goals.”

Tinubu spoke on how he joined the fray in the Third Republic, saying that, although he was initially in the shadows, he shared the beautiful goal of harnessing the resources of Lagos State for its development.

He said his first intra-party battle was to object to the attitude of denying brilliant people party offices in favour of carpenters and vulcanisers, adding that he later learnt compromise and flexibility from Pa Hamzat when he got to the Senate.

Tinubu recalled: “I won the nomination resoundingly. It was not because of my brilliance. I was only blessed in terms of strategic thinking. Today, Lagos is the glory of Nigeria.

“During the MKO Abiola battle, you were consistent and you stood like the Rock of Gibraltar. At a meeting presided over by Alhaji Alebiosu, you asked me to run for governor.

I said I would think about it and you postponed the screening, until I came back two weeks after.

“Those in control of the party wanted to use delegates. At Ijebu-Igbo, we changed the beat from delegates to direct primaries because we said every Lagosian should have hand in the emergence of the governorship candidate. I thank you all for making a good politician out of me.”

A 35-year-old Nigerian student who allegedly tried to rape a woman, Onochie Martins Nwankwo, died after he was allegedly assaulted by Rela personnel in Kuala Lumpur.

Nwankwo, who was due to get married next week, allegedly tried to rape a cleaner at the 15th floor of a condominium in Batu 9, Kajang, Kuala Lumpur, Malaysia at 11.30am on Saturday.

Kajang OCPD Assistant Commissioner Abdul Rashid Abdul Wahab said the 43-year-old cleaner became terrified and managed to escape. She immediately alerted the management of the condominium and asked for help.

He said the management sent seven Rela personnel to Block C of the condominium where they found the cleaner running towards them.

Barely minutes later, the Nwankwo man came down to the ground floor as well. They caught him and beat him before tying him up and informing the police.

“When we arrived, we found him motionless,” ACP Abdul Rashid said, adding that police rushed him to a nearby clinic where he was pronounced dead.

He said police had detained seven Rela personnel for questioning.

Steven Ng, 38, a resident, claimed that the condominium dwellers were unhappy that the management had placed Rela staff there to look after security. The personnel had been rude, he claimed.

Yabatech partners Swiss firm

By Adline Atili

SWISS flavour and fragrance company, Firmenich, has entered into a five-year partnership with the Yaba College of Technology, Yaba (Yabatech), Lagos, for the production of flavours for the food and beverage industry in West Africa.

As a part of the agreement, Firmenich will provide scholarship, covering tuition and expenses, for three students in their final year of studies each year. The students will be selected based on criteria jointly defined by the partners.

Vice President, Sub-Saharan Africa, at Firmenich, Emmanuel Frenck, said: “The partnership with Yaba College of Technology demonstrates our commitment to developing a direct presence in Nigeria to ensure an understanding of consumers’ taste and be closer to local food and beverage manufacturers.

“Our close partnership with and presence within this prestigious institution offers great potential to capture ideas and create technical solutions for our local customers through the expertise of our Yaba Food Technology partners as well as transfer our flavour expertise to the future generations of students, which is also part of Firmenich’s commitment to sustainability.”

Head of Food Science and Technology, Yabatech, Akin Opeifa, said: “Yaba College of Technology will substantially increase the value of its curriculum and offerings though this partnership. We will gain valuable recognition and an enhanced reputation within the food and beverage industry thanks to the additional training, practical work and equipment we will receive.”

THE NATION MONDAY, APRIL 2, 2012

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NEWS Tension as Ekiti chief resists deposition From Sulaiman Salawudeen, Ado-Ekiti THERE was tension at the weekend in Ado-Ekiti, the Ekiti State capital, over the opposition of a section of the community to the deposition of Chief Bamidele Aduloju as the Edemo of Ado-Ekiti by the Ewi, Oba Rufus Adeyemo Adejugbe III. The Ewi had, last week, announced the deposition of the chief in a meeting with chiefs and indigenes of the town.

But Aduloju told reporters that his deposition was a joke and an imagination of the monarch.

He said: “Let me tell you journalists that …the Ewi cannot remove me as the Edemo.”

The Odo-Ado Quarters, the ancestral community of the Edemo-Adulojus in AdoEkiti, has remained tense, with members of the family accusing Oba Adejugbe of not being just and fair on the matter.

Aduloju said the crisis began early last year when another chief, Florence Folorunsho, requested that a portion of the family’s land, on Ado-Ijan Ekiti road outskirts of the town, be given to her.

He said: “The family asked the woman to wait until when the family would decide on the matter. But she went to complain to the Ewi. “We went to the palace to explain to the Oba that the family would need to meet and we thought the matter had been resolved.

“However, another chief, the Baisaya, said his family was the owner of some parts of our land and Ago Aduloju, near Ijan-Ekiti. The matter was taken to the Ewi again for adjudication.

“The Ewi set up a panel to look into the matter and all the parties went to the site; we showed the members our boundaries. But before the panel could conclude its inspection of the land, the other party left the site in annoyance...”

EuropeACNcalls for strong candidate in Ondo From Damisi Ojo, Akure

ONDO State indigenes in the United Kingdom and Europe chapters of the Action Congress of Nigeria (ACN) at the weekend urged the leadership of the party to pick a formidable candidate that will defeat Governor Olusegun Mimiko in next year’s governorship election.

They advised other aspirants to rally round anybody that emerges as the party’s standard bearer to guarantee him landslide victory.

Addressing reporters in Akure, the state capital, their Chairman, Tunde Doherty said ACN members would ensure that the party takes over the administration of the state next year.

Doherty, who was in Nigeria for the 60th birthday anniversary of former governor of Lagos State and ACN National Leader, Asiwaju Bola Tinubu, said: ”Our members have prepared for everything it will take to ensure that ACN wins the next election in the state.”

•From left: Dr Mahama; Dr Fayemi; Chancellor, Ekiti State University, Ambassador Bamidele Olumilua; Pro-Chancellor and Chairman of Council, Emeritus Prof Akinjide Osuntokun; Dr Yumkella and Prof Tamuno; at the event in Ado-Ekiti...at the weekend.

Why Nigerian varsities can’t drive development, by Fayemi

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KITI State Governor Kayode Fayemi has said Nigerian universities are unable to bring about development because of their structural deficiency.

The governor said the inability of Nigeria’s ivory towers to support the growth of the economy is the result of “glaring disconnect between the universities and the society”.

Dr Fayemi spoke at the weekend at the 17th convocation and 30th anniversary of the Ekiti State University (EKSU), where honorary doctorate degrees were conferred on eminent persons and higher degrees and postgraduate diplomas were awarded graduates.

The governor noted that many of West Africa’s universities have not done researches that “have direct impact on the developmental needs of the continent”.

He said: “What use is a tertiary education, so to say, that fails to affect the people and their places of habitation? “…May I observe that a major explanation of underdevelopment in many Third World countries, particularly in African sub-Saharan region, is the glaring disconnect between the universities and the

•Ghana’s VP: Tinubu an advocate of good governance former Vice-Chancellor of the University of Ibadan (UI), Prof Tekene Nitonye Tamuno, with Doctor of Letters (D-Litt) and Dr. Kande Kollen Yumkella, the Director-General of United Nations Industrial Development Organisation (UNIDO), with Doctor Science.

Dr. Mahama said Nigeria’s bourgeoning human and natural resources are sufficient to remove the country from ‘potentially great’ to ‘actually great’.

Noting Nigeria’s contribution of over 50 per cent of the Gross Domestic Product (GDP) of the West African subregeon, Ghana’s VP admitted that Nigeria and Ghana have enjoyed ages of mutually fruitful relationships in educational and economic attainments since Independence.

The Ghanaian VicePresident said former Lagos State governor, Asiwaju Bola Ahmed Tinubu, is highly celebrated because he is among few African leaders who always demand good governance.

Mahama spoke in Lagos at

the weekend at the gala night and black tie dinner for the Action Congress of Nigeria (ACN) National Leader’s 60th birthday celebration.

It was an evening of tributes for the frontline Nigerian political.

The Ghanaian Vice-President described Tinubu as a selfless giver in a world with very few noble people.

He said: “I commend you for your total dedication and service to humanity; a cause you continue to pursue with seasoned compassion and equity. It is from these sterling qualities that we continue to draw inspiration from people like you.

“Your enthusiasm to champion the cause of good governance is unparalleled. Your willingness to put your intellectual ingenuity to your nation in coming up with measures to strengthen its financial base is a patriotic duty worthy of emulation.”

At the dinner were prominent Nigerian politicians and other dignitaries from around the world.

Secretary to the Speaker, Mr. Goke Butika, the Assembly noted that it would not serve any good if the action of the government and the progress made on the matter were not made public.

The House said the public outcry showed that the peo-

ple were eager to know the content of the report.

It directed the AttorneyGeneral to furnish the House with information on the matter prior to his appearance before the standing committees on Public Petition and Judiciary.

The Assembly said it would not overlook public outcry over any important

said the matter would not be swept under the carpet, adding that the mismanaged funds belong to the people of Osun State.

The Speaker assured pressure groups and other concerned citizens, who have sent petitions to the House on the matter, that their demand would receive speedy attention.

Through its Chairman, Chief Akin Oke, the party described the union’s action as a reflection of its understanding of the poor financial situation of the government and its readiness to embrace dialogue as the best option to resolve the crisis.

It hailed the union’s leadership for not allowing its sense of reasoning to be beclouded by selfish interest, assuring that the Abiola Ajimobi administration would improve the lives of the workers.

ACN said: “Ajimobi has, in the last 10 months, succeeded in restoring the past glory of Oyo State. Indeed, the inter-

active session and town hall meeting held by the governor with the workers last Monday, where facts and figures were placed before them, is a further confirmation that he (governor) has nothing to hide about the state’s financial situation.

“The governor has no doubt shown that he is a lover of workers. Even if Labour leaders felt that something was still wrong with the salary table, they should have explored other avenues to express their displeasure rather than calling out workers on a strike. After all, the governor has promised them at the interactive session that his doors are open for constant dialogue with workers.”

The party advised other aggrieved workers’ unions to take a cue from the NCSU by calling off the strike and returning to the negotiating table for the sake of the people.

“All hands must be on deck to rebuild this state from the ruins of the past. We must all realise the fact that it can never be business as usual. Change is inevitable. Even though it may be painful at the initial state, it will certainly be to the benefit of all at the end of the day,” ACN said.

Thanking the residents for their understanding and support for the ACN-led administration, the party assured them of better days ahead.

From Sulaiman Salawudeen, Ado-Ekiti and Nneka Nwaneri

society. The society is thus left to grapple blindly with unworkable trials that have translated into collateral failure of the state in its responsibilities to the society.”

Lamenting global ranking of Nigerian universities, Fayemi said it is worrisome that African universities, including Nigeria’s, are nonstarters.

He said: “For instance, the first African university in the rating occupies 387th position in the world while the first university to be mentioned in Nigeria is number 2,266 in the world and occupies 35th position in Africa.”

The EKSU visitor said it was sad that only five Nigerian universities “make the first 50 in Africa”.

Ghana’s Vice-President John Mahama, who was conferred with an honorary doctorate degree in Public Administration, said Nigeria has no reason not to lead the rest of Africa.

Others honoured included

Osun Assembly urges Attorney-General to publish HE Osun State House contracts panel’s report matter.

Speaker Najeem Salaam of Assembly has urged

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the Attorney-General and Commissioner for Justice, Wale Afolabi, to respond to public agitation for the government to publish the report of the Contracts Review Committee.

The Assembly said the people have the right to know how they are governed.

In a statement by the Press

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From Adesoji Adeniyi, Osogbo

Oyo ACN hails union for withdrawing from strike

HE Action Congress of Nigeria (ACN) in Oyo State has praised the state council of Nigeria Civil Service Union (NCSU) for ordering its members to pull out of the ongoing workers’ strike.

It said the state would have been enjoying a buoyant economy since the Abiola Ajimobi administration came on board, if the former government under Otunba Adebayo AlaoAkala, had not looted the treasury.

In a statement in Ibadan, the state capital, by the party’s Publicity Secretary Dauda Kolawole, ACN noted that the decision was the best in the circumstance

Matron, 20 okada riders held in Ogun From Ernest Nwokolo, Abeokuta

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PERATIVES of the State Security Service (SSS) in Ogun State allegedly arrested 21 commercial motorcycle (okada) riders and owners over a planned inauguration of their union’s leader today.

Bunches of receipts were said to have been impounded from them.

The matron, identified as Alhaja Kuburat, was reportedly picked up at Akindele Street in Sabo, Abeokuta, the state capital.

The woman and others were said to be loyal to the new Amalgamated Commercial Motorcycle Riders Association of Nigeria (ACOMORAN) Chairman, Alhaji Lateef Yekini.

Speaking with The Nation, ACOMORAN’s spokesman Kayode Ogunbona alleged that the former Chairman, Mr Samsideen Apelogun, was behind the harassment and arrest of the association’s members over a matter the police could handle.

Ogunbona said Yekini called him yesterday afternoon and informed him that his people had been arrested

by SSS operatives.

Woman sues Oyinlola for injuring her From Adesoji Adeniyi, Osogbo

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MEMBER of an Osun State-based civil society group, Mrs. Olayinka Olanipekun, has sued the Peoples Democratic Party (PDP) National Secretary, Prince Olagunsoye Oyinlola, for allegedly injuring her and two others.

A statement of claim filed at the state High Court by the plaintiff said on January 9, Oyinlola, in a convoy of three cars at Orita-Olaiya, allegedly ran into a group of protesters during the anti-fuel subsidy removal rally and injured three of them, including Mrs Olanipekun.

The plaintiff is claiming, among others, that the action of the defendant at Oke-Fia during the peaceful protest was deliberate to cause mayhem and amounted to a conduct likely to cause a breach of the peace.

Mrs Olanipekun is praying the court to make Oyinlola pay N200,000 as the cost of medical expenses and N20million as damages for personal injuries she sustained. No date has been fixed for hearing.

THE NATION MONDAY, APRIL 2, 2012

CITYBEATS should Gunmen attack school girls inside bus ‘LASTMA expose offenders’ A

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08033054340, 08034699757 E-mail:- ynotcitybeats@gmail.com

NXIOUS parents yesterday besieged the Jibowu, Yaba, Lagos office of a transport company over the reported hijack of its bus conveying 42 school girls from Enugu by unknown gunmen.

It was gathered that the Ekene Dilichukwu Luxury Bus was hijacked on Saturday night and driven to an unknown destination in Ijebu-Ode. The bus was found yesterday morning.

The bus was hired by a secondary school in Enugu to convey

By Jude Isiguzo and Adegunle Olugbamila

pupils to Lagos for the Easter holiday.

According to reports, some of the pupils were asaulted and all their valuables taken away by the hoodlums.

Reports said the parents who demanded the whereabouts of their children disrupted business activities at the bus station.

It was gathered that no bus was allowed to load or leave the park.

Sources said the bus developed a fault around Ijebu-Ode about 1pm on Saturday and the problem was not fixed until about 9pm.

It was gathered that few minutes after the bus left Ijebu-Ode, it was hijacked by the hoodlums.

The police were informed and they went in a search of the bus and passengers. The bus was found yesterday and escorted back to Lagos by the police.

There was jubilation at the park by parents and relatives of the

pupils when the bus arrived in Jibowu yesterday afternoon.

Many of the parents had been at the park since Saturday night when they got wind of the incident. It was gathered that the passengers were taken straight to a hospital.

Lagos State Police Command spokesman, Jaiyeoba Joseph, confirmed the incident. He said when it was reported the company was referred to Ogun State Command where the incident occurred for proper documentation.

73-year-old Bulgarian, three others held over 419

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73-year-old Bulgarian and three other Nigerians have been arrested for alleged advance fee fraud, popularly known as 419.

The suspects, Peter Stephen (Bulgarian), Bayo Aromolaran, 54, (Osun); Akin Bayowa, 42, (Ondo) and Adeyemi Oluremi were arrested at Ogba axis of the state and taken to the office of the state Taskforce on Environment and Special Offences (Enforcement) unit at Alausa.

The Bulgarian, who is also known as Capello, allegedly claimed to be a director of Worldwide Investment Company Limited, a fictitious outfit.

Stephen and his gang feigned the existence of some $2.4 million (N360 million) allegedly left behind by a dead person, which they claimed could only be spent if the box containing the dollars is unlocked and the stamp on each

By Miriam Ndikanwu

of the note removed.

The box containing the so called dollars was not opened, but there is a paper attached to it containing details on how to unlock it to get the money.

It also contained information on who to call abroad to give direction on how to get the money.

To get people interested in the business, the gang showed them the box containing the dollars and what to do to unlock it and what will be their share.

The gang presented the director of Worldwide Investment Company Limited, which can unlock the box to get the money.

Oluremi, a suspect, told reporters that he was a victim as he had parted with N4.2 million, thinking that when the box is unlocked, he would recoup his investment.

He said he had been paying the

gang money until it got to N4.2 million, adding that when he discovered that nothing was forthcoming, he stopped a year ago.

He claimed to be an engineer with the Federal Government and has a Higher National Diploma, (HND).

Bayowa, when interrogated said he lived in Ghana, adding that he got wind of some $2.4 million which is to be unlocked before spending when he came home.

The money, he said, “actually existed,” a claim which he repudiated under interrogation He said his job was to get ‘customers’ for the company.

The Bugarian denied involvement, claiming that the other others invited him into the business.

Taskforce chairman Bayo Sulaiman said the bubble bust a ‘customer’ was asked to bring money to unlock the box. The man,

•Manko

he said, informed the taskforce when he suspected foul play.

The gang agreed to meet with the ‘customer’ at the Excellence Hotel, Ogba, but the meeting was changed to the nearby Mr. Biggs.

It was at the eatery the police arrested the suspects.

Sulaiman appealed to the public to be wary of fraudsters.

By Oziegbe Okoeki

CHAIRMAN, House Committee on Transportation of the Lagos State House of Assembly, Hon. Bisi Yusuf, has ordered the Lagos State Traffic Management Authority (LASTMA) to publish names of traffic offenders who assault its men.

He gave the order when he visited LASTMA Headquarters in Oshodi as part of his panel’s over sight functions.

Yusuf condemned members of the public who engaged LASTMA officials in a brawl in the line of duty.

He said: "LASTMA was set up to control traffic on our roads, Lagos Assembly would not allow anybody to beat or embarrass them publicly and anybody found guilty, would not go unpunished."

A member of the committee, Hon. Olanrewaju Oshun (Lagos Mainland II), lauded the Authority for controlling traffic; adding that, its officials should be well protected and accorded due respect while performing their duty. He said Lagosians should not see LASTMA men as the enemy of drivers or be biased towards them.

Oshun said the Assembly would look into the law setting up LASTMA and make necessary amendment if need be, to allow its men perform their duty more effectively.

Mr Young Arebamen, LASTMA's Chief Executive Officer (CEO), said the main challenges facing the Authority were both accommodation and administration of the officials.

Buga releases album Stories by Victor Akande

CULTURAL singer Jesse King popularly known as Buga, has treated music lovers and his fellow entertainers to his new album entitled, Rooted. The event which took place at the Premiership Hotel on Allen Avenue, Ikeja was witnessed by friends, fans and the media.

The artiste said he is grateful to his fans who still clamour for his songs despite the more popular hip-hop music.

Expressing delight at the work, he said the album is an affirmation of his commitment to his culture. Jesse King whose real name is Adedayo, said every track in his album appeals to the young and old. With two previous albums, Buga and Mr. Jeje, to his credit he says the reality of his life is also exemplified in his mode of dressing which he describes as simply African.

•Baba Aladura Samuel Ajakaiye (left) Special Apostle (Comrade) Ayodele Adewale, Chairman, Amuwo Odofin Local Government (middle) and Special Apostle Kola Taiwo during the Palm Sunday procession by St. Moses Orimolade Tunolase Prayer House, Festac Town, Lagos...yesterday

Beautiful Nubia leads Silverbird comedy/music 'bouquet'

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Lagos urges residents not to ignore rains prediction

HE Lagos State Government has urged residents not to ignore the 238 days of heavy rainfall predicted the Nigerian Meteorological Agency (NIMET).

The Commissioner for the Environment, Mr. Tunji Bello, and his Information and Strategy counterpart, Mr. Aderemi Ibirogba, gave this advice over the weekend, shortly after monitoring the monthly environmental sanitation at Igando-Ikotun Local Council Development Area.

They said the figures were not a product of by the government, stressing that ignoring such forecast could lead to another natural

By Miriam Ndikanwu

disaster.

Bello said the figure was a cumulative total of rainfall that had already occurred between January and March as well as that expected between now and the end of the year.

He said: “They better believe it, dismissing such report will be to their own detriment, it is their right not to believe, but when it comes, it would meet them as usual. NIMET gave us the figures, go on the internet, it's there too and it's for us to be cautious and take preventive measures to avert it."

Ibirogba said persons dismissing the reports on the presumption that such was a figment of the imagination of weather forecasts are wrong. The government, he said, would not fail to communicate such to residents in order to avert a repeat of the July 2011 disaster.

"It's unfair for anyone to refute it based on their consultation of traditional leanings or belief. We have no capacity to stop the rain, we can only prepare for it," Ibirogba said.

Bello, who led other officials to inspect erosion-prone areas and

failed drainage systems at Egan Road, ordered the demolition of shanties used as make shift toilets in front of a bar along Governors Road.

Some residents of IgandoIkotun appealed to the government to hasten the completion of a major drainage channel which they said poses danger.

Chairman of the Community Development Association (CDA), Mr. Johnson Falowo, blamed the slow pace of work on the direct labour used by the contractor which he said was unprofessional for such magnitude of work.

NIGERIA’S contemporary folks and roots musician Beautiful Nubia, was the lead act at the Silverbird Cinema’s new Music and Comedy Unusual, which held at Hall 4 of the Siverbird Galleria.

The show also featured acts like Olatunde Obajeun, Seyi Law, and Olufemi Jegede.

The show, which held between 7pm and 10 pm last Friday, according to the organisers, was the first in the series of music and comedy to be staged in a cinema environment. Fun seekers were treated to exciting moments and sumptuous refreshment. According to the organisers, the show is being supported by Tank Media, Beacon Media Network and Mammy Jay Productions.

THE NATION MONDAY, APRIL 2, 2012

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NEWS

Kogi poll: Drama as petitioners close case

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HE Action Congress of Nigeria (ACN) and its governorship candidate in Kogi State, Prince Abubakar Audu, at the weekend closed their case before the Governorship Election Petition Tribunal sitting in Lokoja.

They are challenging the election of Captain Idris Wada of the Peoples Democratic Party (PDP) as governor in the last December 3 election.

The tribunal refused ACN’s application to count the ballot papers used for the election which was produced by the Independent National Electoral Commission (INEC).

The proceedings took a dramatic turn when the Tribunal admitted in evidence all the ballot papers produced by INEC’s Head of Operations.

While being cross-examined by Chief Lateef Fagbemi, representing Captain Idris Wada, the INEC chief maintained that he supervised the governorship election in 2,549 polling units in Kogi State on the day of the election and that the election was peaceful.

The petitioners’ counsel, Mr. Kunle Adegoke, applied to declare the witness a hostile witness so as to cross-examine him, but the tribunal discharged and overruled the application.

Adegoke said since the witness had been discharged, the tribunal should

ACN calls for emergency in education T

By Emmanuel Oladesu and Joseph Jibueze

allow the ballot papers to be counted by a team, including its representative and each representative of the parties.

He applied that the report of such counting be brought to the court since the ballot papers are supposed to be linked to the petitioners’ case to avoid a situation where the tribunal would say that the ballot papers were dumped by the petitioners.

Adegoke further argued that the need to count the ballot papers extra-judicially became imperative considering that the petitioners’ 14 days to close their case would be expiring the following day, which was March 31.

He said counting of the ballot papers might take about a week after which the result of counting could be submitted to the tribunal before the respondents would close their cases.

This application to count the ballot papers was opposed by the entire respondents’ counsel and the tribunal rejected it.

Further drama occurred when INEC suddenly produced ballot papers in respect of the remaining three local governments which it had not produced when the INEC official was in the witness box.

Adegoke applied that the

•Abubakar witness be re-sworn so as to tender those new ballot papers through him, but the tribunal refused but directed Mr. Adegoke to tender the original ballot papers from the bar.

The counsel hesitated and asked if it was an order of the tribunal that he should tender the original ballot papers from the bar and the chairman of the tribunal answered ‘Yes’.

Adegoke then insisted that he would like the order to be on record and when the chairman scribbled something down without reading it out for the people to hear, Adegoke insisted on being guided by the record of the tribunal.

The chairman said: “We hereby ask counsel to tender the documents from the bar.”

Friday’s proceedings came to a close with heaps of the ballot papers in various bags brought to the courtroom.

The petitioners closed their case on Saturday after presenting their inspection report.

HE Action Congress of Nigeria (ACN) yesterday called for an emergency ‘Marshal Plan’ in the education sector, saying this would arrest its declining standard.

The party said education is the key to development of any society.

In a statement in Accra, Ghana, by its National Publicity Secretary, Alhaji Lai Mohammed, ACN said it is deeply worried about the recentlyreleased results of the Senior Secondary Certificate Examination (SSCE) conducted by the National Examination Council (NECO) in November/December 2011, and that of the 2012 JAMB/UTME. The party said: ‘’According to media reports, only 14.15 per cent of those who took the core subject of English language at the NECO exam passed. Similar poor results were recorded in Mathematics and the science subjects.

Also, only 25 per cent of the candidates who sat for the 2011 June/July SSCE passed at credit level. ‘’For 2012 JAMB/UTME, the result is even worse, with only three candidates said to have scored above 300, compared to 2,892 that scored above 300 in the 2011 exam! ‘’While no one is in doubt that our country’s educational system has virtually col-

lapsed, these results serve as a wake-up call to Nigerians, whether in or out of government, to rise up and do something urgently to revamp the system. Otherwise, since no nation can develop without a well-educated workforce, all the development projects being bandied around by the government will fail,’’ it said.

The ACN said while the party is not unaware of the fire brigade approach to the issue by federal and state governments in the past, those efforts amount to a mere tokenism when compared to the enormity of the problems besetting the sector today. ‘’This is not and must not be seen as a partisan issue, but the Federal Government must take the lead in seeking a way out of the quagmire of a collapsed educational system, while all states, irrespective of their party affiliation, must support such efforts.

“Also, other stakeholders must come on board. This is a national emergency and it does not call for any bickering or finger-pointing,’’ the party said.

It said the poor standard of education in Nigeria has already attracted the attention of the global community, as

Robbers attack bank in Lagos

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SIX-MAN gang of bandits stormed the branch of a commercial bank in Ejigbo, Lagos in the early hours yesterday, stealing an unspecified amount of money loaded inside an ATM machine.

The robbers, said to be carrying four AK 47 rifles, scaled the fence about 1am and held two unarmed private security guards hostage.

It was gathered that they later broke the wall of the ATM in an operation that lasted over two hours.

At the end, one of the private security guards reportedly untied himself and contacted the

By Jude Isiguzo

management of the bank.

Deputy Commissioner of Police in-charge of Operations, Mr. Tunde Shobulo, was said to have led men of the State Anti-Robbery Squad to the scene, including those of the Rapid Response Squad, following a distress call, but the robbers had fled.

Police have arrested the private security men and an unidentified man whose vehicle was said to have been parked in front of the bank at the time of the incident.

Police sue 43 for possessing fake documents

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HE Kwara State Police Command has arrested and charged 43 recruits to court for allegedly presenting fake certificates and other documents.

The newly-recruited officers are currently undergoing training at the Police College, Ilorin.

About two weeks AGO, the Monitoring Unit of the Nigeria Police Force Headquarters, Abuja during a visit to the school, arrested 37 people over the same offence and arraigned them before a magistrate’s court.

The number so far arrested is 80.

Police First Information Report (FIR) on the first batch investigation conducted at the

S

From Adekunle Jimoh, Ilorin

State Criminal Investigations Department (SCID) Ilorin, revealed that they committed the offence.

The suspects, among them eight women, have spent five months in the college before it was discovered that they passed the recruitment screening with fake certificates and other documents.

The report also revealed that among the fake documents allegedly tendered by the accused persons are, Senior Secondary School Certificate, National Diploma, Higher National Diploma, university degree, birth certificate and other documents.

Nigerian professionals going abroad in search of greener pastures can attest.

Most of these professionals have been subjected to ridicule under the guise of certificate evaluation by their host countries. ‘’Experts have identified years of neglect of the educational sector, declining expenditure on education, inadequate attention to policy frameworks, neglect of the welfare of teachers which has triggered incessant strikes, degradation of educational facilities and the massive corruption in the system as some of the factors responsible for the sorry state in which the sector has found itself today.

“Stakeholders should critically look at these factors and others when seeking a way out of the problem. ‘’We in the ACN expect to see, in the next few days, a sign that the Federal Government understands the implication of the declining educational standard for the nation’s overall growth and development, and that it has swung into action to restore education in Nigeria to its glorious past.

We pledge the support of our party for any positive action in this regard,’’ ACN said.

Jonathan urges Nigerians to give peace a chance From Marie-Therese Nanlong, Jos PRESIDENT Goodluck Jonathan has appealed to Nigerians to give peace a chance and practise good neighbourliness which the country is known for so that development can be achieved.

The president made the appeal at the weekend at Pangna in Langtang North Local Government of Plateau State during the funeral service of the late Baba Alkali Ndam Lar, the elder brother of the first civilian governor of the state and first National Chairman of the Peoples Democratic Party (PDP), Chief Solomon Lar. Speaking through the former senator representing Kaduna South, Isaiah Balat, President Jonathan said Plateau residents should bury the hatchet and embrace peace so that the state would return to its place as the home for all.

Lar, who read his late brother’s biography, said he was challenged by his life.

He called for the spirit of love, unity and tolerance among Nigerians, saying these are virtues that can curb the challenges the nation is going through.

Security tightened at NNPC Towers

ECURITY was strengthened last night at the Nigeria National Petroleum Corporation (NNPC) Towers in Abuja.

A top source in the corporation said the security agencies were only being proactive.

Checks by our correspondent confirmed that more barricades were brought in to protect the building from at-

From Yusuf Alli, Managing Editor, Northern Operation

tack.

Also, a vital link between the NNPC building and a major expressway was closed to traffic at 8pm.

Additional armed policemen were on surveillance, while the movement of pedestrians within the vicinity

of the building was restricted.

A source said: “We decided to tighten security to ward off any aggression. The pressure is now on these terrorists and they can vent their anger on anybody or institution. The security strengthening is not peculiar to the NNPC.” There was no official reason for the emergency extra security measures.

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THE NATION MONDAY, APRIL 2, 2012

NEWS

PDP chieftain hails Oshiomhole on project execution

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•Bishop, Lagos Mainland Diocese, The African Church, Rev Sam Ade Ajayi (second left), Peoples Warden Bunmi Osunrinade (left), Boy Jesus, Idowu Dada and Vicar, African Church Cathedral Salem, Ven Sam Akin Bamiselu during the celebration of Palm Sunday...yesterday PHOTO ADEJO DAVID

2,000 dump PDP for ACN in Edo

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VER 2,000 Peoples Democratic Party (PDP) in Etsako Central Local Government of Edo State at the weekend joined the Action Congress of Nigeria (ACN).

The former PDP members, drawn from Iraokhor (Ward 5) and Fugar (Ward 3), were received by Governor Adams Oshiomhole and other party elders and leaders from the local government.

Oshiomhole said there is a wind of change and development blowing across the state, which requires the support of all citizens to sustain.

According to the governor, “what we have achieved so far is the result of almost two and a half years of work having lost a year when the House of Assembly was in the hands of the opposition.

“We will increase our speed to be able to do more when we get a second tenure.”

He hailed the people for their support .

Gunmen kill two over land From Osagie Otabor, Benin

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WO persons have been killed at Iguobazuwa in Ovia South West Local Government of Edo State during an attack of four buildings in the locality.

Five others were injured in the attack that took place at the weekend.

Police spokesman Etim Bassey said preliminary investigation by the police showed that there was a confrontation between elders and youths in the community over the control of land.

Bassey said the youths accused the elders of nonaccountability of proceeds from land sales.

The spokesman said youths allegedly burnt down a mosque and a car belonging to the head of the community.

He said two persons have been arrested .

CHIEFTAIN of the Peoples Democratic Party in Edo State, Col Paul Ogbebor (rtd), has described some on-going projects in the state as ‘wonderful and an innovation that should be commended.’

Ogbebor was among members of the Benin Forum who joined Governor Adams Oshiomhole to inspect projects within Benin.

Some of the projects included Airport road, Ugbowo-Lagos road, erosion control site at New Lagos Road and the erosion canal at Upper Lawani street.

Ogbebor said: “The money is well spent. The projects are sustainable. I commend it.

“The quality of work is very good.

It could be used for tourism. Every government has what it is thinking of.”

The Benin Forum, an umbrella body that acts as the spokesman of the

From Osagie Otabor, Benin

Oba of Benin and other high ranking leaders in Benin Kingdom, has endorsed the governor for a second term.

Chairman of the forum David Edebiri said Oshiomhole’s administration is a blessing to the Binis.

He said: “You are a gift to the Bini in particular and Edo people in general. We pray God Almighty and our ancestors to grant you victory in the forthcoming governorship election.

“Until the coming of your administration, Edo people had never been lucky with governors, except for Brig-Gen Samuel Ogbemudia when he ruled under the military. You are a blessing to us.

“There are one or two massive projects in every local government.

“The blind can see and the deaf can hear, only the wicked at heart may pretend,” he stated.

Oshiomhole said his second term would witness more transformation of the state.

THE NATION MONDAY, APRIL 2, 2012

10

NEWS

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Alaibe honoured

ORMER Special Adviser on Niger Delta Affairs Ndutimi Alaibe has been honoured by members of his Kolokuma/ Opokuma clan in Bayelsa State.

The event, which took place at the Kiama Grammar School Field, his Alma Mater, was attended by dignitaries.

The kinsmen said Alaibe was honoured because of his successful tenures at the Niger Delta Development Commission (NDDC).

They said he has made them proud and therefore deserved a warm welcome back

From Isaac Ombe, Yenagoa

home.

The Chairman of the occasion, Lawrence Ekpebu, said: “Our visionary leader and son, Timi, we have cause to rejoice on your home-coming.

“You have established a track record in transparency, sense of duty, expertise and prudence in public life.

“The people of Kolokuma/ Opokuma expect no less from you because as a people, we have always cherished our time-honoured love for patriotism, visionary leadership and honesty.”

Rivers launches payroll system

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HE Rivers State Government has taken over the administration of its payroll from Zenith Bank.

The takeover was completed at the official opening of the new payroll office at the Ministry of Finance in Port Harcourt.

The Commissioner for Finance, Chamberlain Peterside, said the new payroll regime would address the issue of ghost workers .

He said pay slips would now be given out to workers as the new payroll software has the capability of generating pay slips automatically .

The commissioner said salaries would still be paid through the banks, but administered directly from the payroll office.

“We are not transiting into paying salary in cash, we are not going back to the old way of carrying of boxes and Ghana-must-go-bags around, we have only stepped up to a higher level in the spirit of cashless economy, paying salary through the banks, but running the payroll. The migration process is today completed.

“Two things are important to the governor, one is results, the other is building the institutions we have in Rivers State, ” he added.

BRIGHT FUTURES FOR AFRICAN CHILDREN FOUNDATION This is to notify the General public that the above organisation has applied to the Corporate Affairs Commission, Abuja, for registration.

The object for which the registration is sought is as follows: 1) To educate African children who live in extreme poverty and educating them from Primary through to Tertiary/ University Education.

2) Establish Bright Futures for African Children as an Educational NonGovernmental Organization in impoverished communities starting with Lagos, Oyo and Abia States of Nigeria – via relationship building and publications.

3) Establish a leadership program for selected children and raise funds or receive contributions where appropriate to finance educational sponsorship.

4) Establish Bright Futures for African Children representatives (Project Managers) in each identified project community and collate directory of financial and social (mentors) sponsors for each Bright Futures for African Children project community.

5) Collate a directory of good schools in Bright Futures for African Children project Communities, establish connection with the schools and Set up Sponsorship programs for identified students/children in each such listed schools in the community 6) Facilitate welfare donations from Bright Futures for African Children Sponsors/ third parties to the identified communities and Establish partnerships with other NGOs & Educational Grant Bodies for the said communities.

The names of the Trustees are; 1. Mr. Agu Irukwu 3. Mrs. Amaka Amego 5. Lynda Kootin-Arthur

2. Mrs. Anthonia Adesola Irukwu 4. Mrs. Alero Otobo

Any objection to this registration should be forwarded to the Registrar general, Corporate Affairs Commission Abuja within 28 days of this publication.

SIGNED; Jite Olatunbode &Co (Solicitors) No 1b Omorinre Johnson Close, Lekki 1, Lagos.

•From left: National Treasurer, St. John’s Grammar School, Ile Ife, Osun State, Tony Olufidipe, National President Sunday Bolaji and Secretary, Planning Committee, Festus Oshoba at a briefing on the school’s Golden Jubilee celebration in Lagos...yesterday PHOTO:OMOSEHIN MOSES

Court dismisses Suswam’s appeal

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HE Supreme Court has dismissed an appeal filed by Benue State Governor Gabriel Suswam to clarify the 180 days allowed to hear and determine petitions.

Suswam asked the court to hold that 180 days had since elapsed at the time a re-constituted Election Petition Tribunal started hearing petitions filed by the Action Congress of Nigeria (ACN) governorship candidate, Prof Steven Ugbah and his All Nigeria Peoples Party (ANPP) counterpart, Prof Daniel Saror.

The five-member panel, led by Justice Walter Onnoghen, unanimously

From Uja Emmanuel, Makurdi

held that the appeal has become an academic exercise since the timeline allowed by law to hear, determine and appeal judgments has elapsed.

The jurists dismissed the appeal and asked the parties to bear their costs.

It was learnt that the judgment does not have any negative effect on Suswam, since the court did not nullify his election.

Speaking after the judgment, counsel representing ACN, Ugbah (Simon Orkuma) and ANPP, Saror (C.S Orpin) said the judgment

has paved the way for their appeal, which will soon be filed at the apex court.

Both lawyers argued that it is not the business of the tribunal to reverse itself and declined jurisdiction in a petition it had earlier claimed jurisdiction and was affirmed by the Court of Appeal.

The tribunal has fixed a judgment date when it suddenly reversed itself, saying it does not have the jurisdiction.

Then, Suswam’s appeal was still pending at the Supreme Court.

The Chief Justice of Nigeria (CJN), Justice Dahiru Musdapher, had on November 14 ordered a retrial of

the petition filed by Ugba and Saror.

The CJN said the petition be heard on its merit.

The Supreme Court, in a unanimous decision, held that the petitions should not have been dismissed on mere technicalities, pointing out that pre-hearing notice could be done orally.

Musdapher said: “The crux of the matter is that the appeals be remitted back for hearing on their merit.

“I don’t know why judges should go on with the basis of pre-hearing conference alone to dismiss a petition without hearing it on its merit. Matters must be decided on their merits.”

Dakingari wins Kebbi governorship rerun

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AIDU Dakingari of the Peoples Democratic Party (PDP) has won Saturday’s governorship rerun election in Kebbi State.

Announcing the result at the Independent National Electoral Commission (INEC) collation centre in Brinin Kebbi, the Returning Officer, Prof. Lawal Suleman Bilbis, said of the 1,616,945 registered, 934,693 voted.

Dakingari had 875,492 votes and Abubakari Mallam of the Congress for Progressive Change (CPC) scored 17,918.

He said Kabiru Tanimu of the Action

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•Jonthan, Mark congratulate him From Khadijat Saidu, Brinin Kebbi

Congress of Nigeria (ACN) had 4,656 while ADC scored the lowest with 320 votes.

President Goodluck Jonathan has congratulated Dakingari on his victory.

The President, according to a statement by his media aide, Dr. Reuben Abati, urged the governor-elect to do his best to ensure that the people are

rewarded with an effective and efficient administration that will deliver good governance and rapid development.

Senate President David Mark also congratulated the governor-elect, saying his resilience in the face of challenges demands commendation.

Mark said the election was fought and won in a free and fair contest.

He said: “Your election has proved doubting Thomases wrong. The people have decided and reposed their trust and confidence on you.”

N20b projects abandoned at PTI

HERE are N20 billion abandoned projects at the Petroleum Training Institute (PTI) Efurun, Delta State.

The Senate has invited the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke and the Executive Secretary of the Petroleum Training Development Fund (PTDF), Mustapha Rabe Darma, over the matter.

The PTI management will also appear before the Senate.

Those invited are to appear before the Committee on Petroleum Resources (Downstream) to explain why the building projects were abandoned.

Some of the projects are

said to be on-going for more than five years while others are reported to have been awarded and cancelled.

These facts were said to have been revealed when the committee visited the institute during its oversight tour at the weekend.

Chairman of the Committee Magnus Abe, in company of Vice-Chairman Danjuma Goje and two other members were taken round the facilities by PTI’s Acting Principal, Mrs. Nnena Clara Dennar and other top officials.

The lawmakers were stunned when Adebisi Ashimi, the consultant handling the projects, refused to volunteer any informa-

tion.

Ashimi claimed he could not speak because he had no documents with him.

He also claimed that he was not told that the team needed his attention.

But Abe told him his excuses were unacceptable.

“You have been paid out of Nigerians’ money.

“As long as you are benefiting from the money, which is being used to finance these projects, you should be able to give us comprehensive answers.”

Abe’s comments forced Ashimi to open up on the projects.

He told the committee that he leads five other consultants on the projects.

He added that the

projects, include hostels, conference centre, administrative block, chalets and staff club.

But Goje insisted that the committee must be given full details of the projects.

He said: “We need to see your principals and the exact number of projects for us to know why this place, that is critical to the nation’s economy has been abandoned. This is a terrible thing, it is a pity.”

Mrs. Dennar pleaded with the committee to incorporate the PTI in the proposed Petroleum Industry Bill (PIB).

She noted that the noninclusion of the institute in the last version of the Bill was a major challenge.

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THE NATION MONDAY, APRIL 2, 2012

NEWS

Ngige advocates return to regionalism F •Calls for national dialogue

ORMER Anambra State Governor Chris Ngige has called for Nigeria’s return to regionalism.

He lamented that only four of the 36 states in the country are viable.

Ngige, who represents Anambra Central in the Senate, spoke at the weekend during the Hardis and Dromedas Special Day at the 23rd Enugu International Trade Fair.

He said Nigeria was better off when it practised the regional system of government, adding that the defunct western, eastern and northern regions were all viable economically.

Ngige described Nigeria as “a bogus structure that is parasitic and indolent in nature” and wondered how such a structure could effectively de-

From Chris Oji, Enugu

velop the grassroots.

He said except Lagos, Rivers, Kano and Delta, other states rely on the monthly allocation from the Federal Government for their survival.

Ngige said there is need for states to generate their own revenues and remit a percentage to the Federation Account.

Lamenting that the military introduced false federalism in the country, he said in a true federalism, the centre can only exercise the powers given to it by the federating units.

Ngige said former President

Nnamdi Azikiwe; the late Sardauna of Sokoto, Ahmadu Bello; former Premier of the defunct Western Region Chief Obafemi Awolowo; and former Premier of the Old Eastern Region Dr. Michael Okpara used proceeds from natural resources to develop their regions.

He said the “bogus political structure” introduced by the military gave the Federal Government “unprecedented” powers and made the states to abandon their natural resources.

Ngige called for a national dialogue on how to restruc-

Obi, others stranded at airport

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•Ngige

ture the country politically and economically.

He said: “We must sit down and discuss the political and economic structure of Nigeria. If only four of 36 states are viable, why do we retain a bogus structure that is parasitic?”

Bianca slams Southeast governors over Boko Haram killings W

IDOW of the Biafran warlord, Dim Chukwuemeka Odumegwu-Ojukwu, Bianca has accused Southeast governors of failing to take proactive actions against the killing of Ndigbo in the North by the Boko Haram sect.

Bianca spoke at the weekend shortly after laying the foundation stone for the Ojukwu Memorial Centre/ Library in Owerri, Imo State.

She said the governors failed to put the interest of Ndigbo above their political and pecuniary interests.

She said if not for the prompt intervention of the Movement for the Actualisation of the Sovereign State of Biafra (MASSOB) leader, Chief Ralph Uwazuruike, and his second-incommand, Chief Rommy Ezeonwuka, Ndigbo stranded in the North would have been killed.

Bianca said: “The so-called leaders of our various states

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•Iwuanyanwu: compensate Biafran soldiers

•Bianca From Okodili Ndidi, Onitsha

in the Southeast failed to put the interests of the larger number of their people

above their selfish political interests.

“While our people were being killed in the North, they were busy having fruitless meetings. Leadership is about sacrifice. If not for Uwazuruike, who asked our men in the North to bring their children and wives home and provided free vehicles for them, there could have been serious problems.”

Bianca extolled the quality of leadership displayed

by Uwazuruike and Ezeonwuka since the death of her husband and thanked the Federal Government for giving Ojukwu a befitting burial.

Ezeonwuka said the challenges facing Ndigbo can only be solved when the people come together.

The Eze Nri and custodian of Igbo culture and tradition, Eze Obidiegwu Onyesoh, urged MASSOB members to mobilise Ndigbo for Igbo presidency in 2015.

He said: “I thank you for your peaceful conduct during the crises in the North and I urge MASSOB to mobilise Ndigbo for the voter registration, because I want a President of Igbo extraction in Aso Rock in 2015.”

Frontline politician and publisher of Champion, Chief Emmanuel Iwuanyanwu, called for the documentation of Biafran soldiers killed during the civil war and the compensation of the families.

He said: “Those of us who fought during the civil war can tell you that we lost our finest young graduates from the University of Nigeria, Nsukka. I want those who lost their people to compile their names, so that we will take it to the Federal Government for compensation.”

Ex-council boss loses bid to stop trial

N Appeal Court, sitting in Abuja, has dismissed the appeal filed by a former Chairman of Orsu North Development Area of Imo State, Damian Santa Okpara, and two others, challenging the jurisdiction of an Abuja Chief Magistrate’s Court to try them for allegedly giving false information to the Inspector-General of Police (IGP).

The appeal is also challenging the inclusion of Okpara in the trial, since he did not sign the contentious petition to the IGP. Okpara, Edwin Obiezue and

Ambrose Ogbuji are on trial before an Abuja Chief Magistrate’s Court for allegedly giving false information to the IGP that Chief Nelson Okpara kidnapped Obiezue’s children.

They also alleged that Chief Nelson Okpara set Obiezue’s house on fire.

Police investigations revealed that the accused took the children to Chokocho, Etche Local Government Area of Rivers State. This led to their arrest and prosecution.

Counsel to the accused Mr. Ethelbert Nwanedo said the Abuja Chief Magistrate’s

Court has no jurisdiction to try his clients, since the alleged crime occurred in Imo State.

Prosecution Counsel Obiora Ejiofor argued that since the petition was written to the IGP, whose office is in Abuja, the court has jurisdiction over the matter.

Ejiofor said the victim, Chief Nelson Okpara, was brought to Abuja, detained and questioned on the issues raised in the petition, before the truth was discovered and urged the court to dismiss the appeal.

The panel members, Justices MaryAnn Anenih and

Suleiman Belgore, said asking for the name of the first accused to be removed from the list of accused persons was ridiculous.

Justice Anenih said the appeal lacked merit and struck it out.

The court directed that the case be returned to Chief Magistrate Kabir Lamido for the continuation of trial.

Hearing will commence at the Chief Magistrate’s Court in Gwagwalada on April 16.

Abia reduces fees at polytechnic

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BIA State Governor Theodore Orji has announced a reduction in fees at the State Polytechnic, Aba. He announced this at the weekend while inaugurating a pedestrian bridge built in front of the school by the government.

Orji said he took the decision because despite rumours of a possible increment in school fees, the students remained peaceful.

From Ugochukwu Eke, Umuahia

He said his administration is concerned about the welfare of students and other Abia residents and would continue to execute peopleoriented programmes.

The governor said the bridge would reduce accidents in front of the school and urged the students to take their studies seriously.

Chairman of the school’s

Governing Board Mba Ukariwo thanked the governor.

Ukariwo said the bridge would ensure the safety of students and other people crossing the ever-busy AbaOwerri Road.

President of the Students’ Union Government Awa Mmaju said many students have been killed while trying to cross the road and thanked the governor for the bridge.

LOSS OF DOCUMENT

This is to notify the general public that a Lebaniese international passport belonging to MOHAMAD FAOUR with passport no. RL 1100856, dated 8/07/2009, which will expires on the 07/07/2014 got missing. If found please contact 08171402424.

HE aircraft that was supposed to take Anambra State Governor Peter Obi and hundreds of passengers from Enugu Airport to Jalingo, Taraba State, for the burial of Deputy Inspector-General of Police, Mr. John Haruna, had difficulty landing at the weekend.

It was gathered that the landing system malfunctioned and the pilot returned to Abuja Airport, which has longer runways, where the plane was successfully ma-

From Odogwu Emeka Odogwu, Nnewi

noeuvered to land.

Businessman/politician Prince Arthur Eze made his plane available for the trip to Jalingo, but many people returned to their homes.

They said the fault developed by the first aircraft was a bad omen.

Obi insisted that he must make it to the burial and flew on Eze’s aircraft to Jalingo.

Obi arrived at the Enugu Airport at 8:30am, but did not leave for Jalingo until 2pm.

Enugu approves N438m for agency

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HE Enugu State Government has approved N438,804,593 for the procurement of equipment and vehicles for the take off of the State Road Maintenance Agency (ENSROMA).

The equipment to be bought include back hoe, wheel loader, asphalt paver, motor grader, soil compactor and asphalt plant.

Commissioner for Information Chuks Ugwoke announced this while speaking with reporters after the Executive Council Meeting held at the Government House, Enugu.

Commissioner for Works Godwin Madueke and the Special Adviser to the Governor on Agriculture, Mr. Victor Agbo, were also at the press briefing.

Ugwoke said the Commissioner for Inter-Ministerial Affairs Chukwuka

Utazi has been posted to the Ministry of Transport.

He said the election of the Chairman of Enugu South Local Government and the Chairman, Association of Local Government of Nigeria (ALGON), Enugu State chapter, Mr. Nwabueze Okafor, as the National ALGON President was made known at the meeting.

Ugwoke said the contract for the construction of the Eziabalu–Okinino–Agbudu–Afia Mmanya Road has been awarded to Greyline International Limited at N661,000,000.

He said N39,741,350 has been approved as extra cost for the completion of 12 blocks of 10 units of four bedroom duplexes and one block of 10 units of onebedroom boys’ quarters at the 82 Division, Nigeria Army, Enugu.

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MONDAY, APRIL 2, 2012

Page 13

Email: news_extra@yahoo.com

Imo partners South Africa on agric

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•Okorocha

MO State Governor Rochas Okorocha has reiterated his determination to boost agriculture, especially in the communities. This, he said, would ensure food security and employment opportunities for the people.

Okorocha stated this at the Ikemba Ojukwu Convention Centre, Owerri while addressing chairmen of transition committees of the 27 local government areas, traditional rulers and other stakeholders in agriculture on how to shore up agriculture in various communities through the help of South African agricultural ex-

From Emma Mgbeahurike, Owerri

perts.

The governor, who just returned from a trip to European and Asian countries, pointed out that the communities, local government areas, states and the Federal Government should put food on the tables of their citizens. He added that if this is not done, governments at these levels have failed in one of their obligations to the people.

He urged traditional rulers of the communities to procure not less

than five hectares of land for the commencement of the Agricultural Enhancement Programme by the foreigners, even as he advised them to assist in the success of the programme.

While fielding questions from journalists, the leader of the South African experts Ms. Brylyne Clitsunge said that they were in Imo state to assist the government, which according to her, indicated interest in boosting agriculture.

Clitsunge advised African countries to endeavour to produce their foods and not to import from other countries. She assured that they

will do their best to boost agriculture in the state in the nearest future. She praised governor Okorocha for his commitment to the welfare of the people.

She, however, urged the people, especially stakeholders in agriculture to ensure the success of the programme.

Those present at the occasion were the Secretary to the State Government (SSG), Prof.

Anthony Anwuka, Chief of Staff, Prince Eze Madumere, Hon. Luke Chukwu and the Commissioner for Agriculture, Hon. Victoria Ijezie, Senior Special Assistants, Special Assistants, among others.

Free health care comes to Oyo communities Residents hail project

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ESIDENTS of remote communities in Oyo State have been getting free health care, thanks to the Abiola Ajimobi administration.

Their blood pressure is being monitored. So is their blood sugar.

Eye patients are examined; some being treated, others getting good advice.

Such a development was almost unheard of in the communities. That was why many were sceptical when the state government introduced the free health project last year.

Similar projects carried out in the communities in the past were fraught with insufficient and cheap drugs and a telling shortfall in health personnel. Besides, the residents found it extremely difficult to access the services on offer.

All of that eroded the people’s confidence in government.

The current project dubbed: “Oyo Free Health Mission” is miles ahead of such previous attempts.

There are qualified medical professionals such as physicians, pharmacists, nurses and others to meet the needs of the people.

In every location where the project was undertaken, beneficiaries relished quality treatment with quality drugs. In the end, over 60,000 patients were treated free across the state. Rather than fault the project, beneficiaries called for a regular repeat of the project.

Perhaps the calls and successes of the first phase moved the Governor Abiola Ajimobi-led administration to repeat the project last month.

Called the second phase, the mission was taken to all the 33 local governments areas of the state; an improvement on the first phase where three councils were combined, thereby restricting its reach to many local and urban communities.

When the project was flagged off

From Bisi Oladele, Oyo

in Igbeti, Olorunsogo Local Government Area of the state last month, no fewer than 3,000 patients were treated including the traditional ruler of the ancient town, Oba Oyebisi Oyekan and the Commissioner for Information and Orientation, Mr. Bosun Oladele, who represented the governor at the event.

After six days of free treatment in 11 local governments, a total of 38,000 people had been treated.

Moving to the second leg of the project on March 20, the medical team moved to Ogo-Oluwa and Akinyele local government areas. At OgoOluwa in Ajaawa, a total of 3,518 patients were attended to.

Addressing the gathering, the chairman of the council, Mr. Remi Adepoju, lauded Governor Ajimobi for the project, saying it shows that he was committed to addressing the plight of the downtrodden. He urged residents in the local government to avail themselves of the opportunity brought to their doorsteps.

In his keynote address at the launch in the remote community, Ajimobi, who was represented by the Commissioner for Information, Mr. Bosun Oladele, a lawyer, expressed satisfaction with the turnout of beneficiaries. He said his administration would continue to bend down to see challenges in all communities and deliver on the election promises.

Explaining the project, Ajimobi described the free health mission as one of the cardinal programmes of his administration. He stated that his administration embarked on the project to fill the gap created by the ill-equipped hospitals and insufficient personnel inherited from the previous administration.

He said: “Free health is one of our cardinal programmes. But we discovered that our hospitals and health centres are not well equipped. So,

•Commissioner for Information and Orientation, Mr. Bosun Oladele (r) having his blood pressure examined in Ajaawa government decided to embark on taking free healthcare to people’s doorsteps before the hospitals are fully strengthened.

“We observed that many of our people are farmers who may suffer hernia. That is why we are offering free hernia surgery. We discovered from the first phase of this mission that many people could not access the services because local governments were merged. That is why we brought it to every local government this time round.

“This is just the beginning of good things in Oyo State. We have started rehabilitation of new set of roads across the state in addition to those we did last year. The executive has just approved distribution of free 80-leave exercise books and rehabilitation of schools in each local government. This is a government that loves people. It is a peaceful one and we shall continue to make people number one in all our decisions.”

The data released by the Commissioner for Health, Dr Muyiwa Gbadegesin showed that a total of 42,376 benefited from the second leg of the second phase which ended on March 25.

Of the lot, 31,623 were seen for general consultation, 1, 444 were attended to for reproductive health

while 7, 001 patients attended dental clinic. A total of 2, 308 were attended to for blindness prevention. Free eye glasses were distributed to patients in the 11 local governments where the treatment took place.

The councils are Atisbo, Saki West, Lagelu, Afijio, Oriire, Saki East, Egbeda, Oyo East, Suurulere,

Akinyele and Ogo-Oluwa.

The programme was also a huge success at Akinyele Local Government Area.

The third leg of the second phase, which will cover the remaining 11 local governments across the state, would commence soon.

‘Develop coal as source of power’

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HE General Manager, Applied Engineering Technology Initiative Ltd, Mr John Itua, has advised the Federal Government to encourage the use of coal as an alternative source of electricity generation.

He said in an interview in Lagos that government should look beyond using gas to generate electricity.

Itua also advised government to go beyond hydro and gas sources, but should also explore other alternatives like coal, solar and renewable energy to generate power.

“Government should urgently address the problem of epileptic power supply in the country.

“I also feel government ought to introduce bio-fuel for the purpose of power generation.

“Government should partner

with companies that specialise in alternative energy renewal, such as coal, for more effective and cheaper energy,” he said.

Itua said that he was worried about the deteriorating power supply in the country and advised the government to explore coal as additional source of power generation.

He said that the country was endowed with lots of energy resources, hence the need to harness them to boost the power supply.

Specifically, the manager stressed the need for diversification into coal thermal stations in view of the abundant coal deposits in Benue, Enugu, Kogi and Nassarawa States.

The expert also said that the country had potentials for additional hydro plants in various locations.

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HE Ekiti State Traffic Management Agency (EKSTMA) has started training its pioneer traffic management officials.

The 300 personnel are to control the excesses of drivers on the roads and help in decongest busy roads in Ado-Ekiti and other major towns.

Performing the inauguration ceremony at the NYSC Permanent Orientation Camp, Ise Ekiti recently, Governor Kayode Fayemi urged the people not to see the traffic management officials as their enemies.

Represented by the Special Adviser, Governor’s Office, Chief Abiodun Akin-Fasae, Governor Fayemi said EKSTMA, established in August, 2011 was backed by of the state Assembly law.

Fayemi warned the officials in training to shun corruption in all its forms, saying any official caught engaging in any unwholesome act would face appropriate penalty.

He also warned them against harassing road users unnecessarily or making life difficult for them,

Ekiti trains traffic officers From Sulaiman Salawudeen, Ado-Ekiti

saying the agency’s purpose was to make roads in the state safe and user-friendly.

He said: “As a result of growth in population and socio-economic activities in our urban centres, we are daily being inundated with traffic congestion and infractions on regulating traffic laws.

“This often brings a lot of chaotic situations that degenerate to social nuisance. It is our resolve to address this unwholesome circumstances, hence the establishment of the Ekiti State Traffic Management Agency.

“Traffic Management Agency became inevitable. I urge you training participants and stakeholders in this project, to shun acts of corruption and abuse of offices which

Traffic Management Agency became inevitable. I urge you training participants and stakeholders in this project, to shun acts of corruption and abuse of offices which are capable of negating the real objective of the agency

are capable of negating the real objective of the agency.”

The agency’s General Manager, Mr. Charles Fasuba, disclosed that the bulk of the participants were drawn from the state Volunteer Corps who had earlier undergone leadership training for effective service delivery.

He said: “The recklessness of motorists, including the trucks and articulated vehicles, had come to a head and only an arrangement such as EKSTMA could put it under check.

“The state government hopes to control common excesses on the roads by making defaulters pay a ransom and through other penalties,” Fasuba said.

Noting that the 300 pioneer officials would be deployed in AdoEkiti, Ikere-Ekiti, Omuo and Ikole that are relatively busier than other towns in the state, Fasuba added that the agency would continue to recruit more personnel as the need

How to curb crime, by bursar From Adimike George, Onitsha

•Mr Obi

T

HE bursar of the Federal Polytechnic, Oko, Anambra State, Mr. Joseph Obi, has joined the crusade for a cashless economy, saying that it will curb corruption.

Obi, a chartered accountant, in an interview with Newsextra, also called for more funding for tertiary institutions in the country, adding

M

ORE than 700 market women have benefitted from the free hypertension and diabetes screening programmes organised by the Edo State chapter of the Nigeria Association of Women Journalists (NAWOJ).

The free medical screening was part of the chapter’s good health

that with adequate funding from both the government and private sector the education sector of the country will reposition for excellence.

According to him, “cashless system as the name implies is reduction in cash related transactions and by extension increase in the use of credit cards and other forms of transactions other than cash. It is a good idea that has been in use else where other than Nigeria. Nigeria is one country where people still carry about huge amount of cash and sometimes when you travel outside Nigeria it is really easy to spot a Nigeria by the time he enters a shop to buy something and he pays them $2000 or $3000 cash”.

“Cashless economy”, the bursar insisted “will help the economy in a number of ways. First and foremost, outside cost of cleaning

cash, it will also save cost of transportation of cash which is the most important cost. Moving cash from one bank to another involves a lot of risks like attacks by armed robbers leading to loss of lives.

Nobody has sat down to compute how much we lose to bank robbery attacks, but if we reduce cash movement the attack will stop”.

He continued. “In addition a cashless system will reduce corruption as there are certain transactions you cannot do by electronic means. And if you find

out that you cannot transact by cash it may deter people from such transactions. It will reduce some problems in Nigeria like 419, money laundering and the rest of them because every transaction must automatically be properly documented and it is easy to have a transaction trail’.

He however expressed worries that the appropriate infrastructure that will make it work has not been put in place.

“In 2009,” he said, “Nigeria took the first step of making it compulsory

In addition, a cashless system will reduce corruption as there are certain transactions you cannot make by electronic means. And if you find out that you cannot transact by cash it may deter people from such transactions

•Fayemi

arises.

“I want to state that the 300 participants in training now are just the first set. The agency will recruit and train more people as scope of its operations get more enlarged. that all government establishments should do electronic payment. The idea was to save time and of course solve some of these problems; it was restricted to government establishments but up till today that has not stabilized. E-payment was expected to shorten the time lag between transactions but in some places it increased the time lag. Some of the staff in the banks are not properly trained. So the same thing applies to this cashless system. I am not convinced that many of our banks have the software to go into this and when that is not in place the cashless system might bring in more confusion”.

On funding of education by the private sector, he noted “the first problem in Nigeria is that generally there is low level of patriotism. It is like great majority of Nigerians don’t believe in Nigeria. You can only spend your money or time in what you believe in. So that explains the reason for poor response to funding of public institutions by the private sector.

We have so many wealthy Nigerians but they can only spend their money in what they believe in.”

700 benefit from NAWOJ free medical screening From Osagie Otabor, Benin

awareness campaigns.

Speaking at the flag-off ceremony of the programme at Oba Market

Benin-City, wife of the Deputy Governor, Mrs Endurance Odubu told the market women that it was necessary for them to know their health status.

She said: “I observed that women

suffer more of hypertension because of their nature and position in the family. Untreated cases of hypertension lead to early death. Hypertension or diabetes do not give any sign before it kills.

“Early detection of the ailment is the key because it is a silent killer.”

Mrs. Odubu commended the organisers for bringing health awareness to the poor.

State Chairman of NAWOJ, Mrs Amina Ebo disclosed that they embarked on the free screening exercise because of a young market woman who collapsed while selling in one of the markets and later died before being rushed to the hospital.

She said the exercise will be taken to major markets across the 18 local government areas.

I observed that women suffer more of hypertension because of their nature and position in the family. Untreated cases of hypertension lead to early death. Hypertension or diabetics do not give sign and notice before it kills

•From left: Alhaji Osho Akeem, ACN Party Chairman Ikosi-Isheri; Alhaji Mutiu Are, State ACN Chairman; Lagos State East Senatorial District. Sen. Gbenga Ashafa; Hon. Demola Seriki and Mr Tayo Ayinde, representative of Asiwaju Bola Ahmed Tinubu at the presentation of free eye glasses organised by Senator Gbenga Ashafa to commemorate the 60th birthday of Bola Ahmed Tinubu held at Lagos East Senatorial Office Ikosi Ketu, Lagos.

PHOTO: NIYI ADENIRAN

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EDITORIAL/OPINION EDITORIAL FROM OTHER LAND

COMMENT

First things first •The President should do more than dream about replicating the Asian Tigers’ feat here

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T was time again for President Goodluck Jonathan to remind Nigerians of how apt the saying is – that “if wishes were horses, beggars would ride”.

Taking time out on his recent visit to South Korea to declare open the NigeriaKorea Investment Forum on Infrastructure and Energy Development, hosted at the Korea Chamber of Commerce and Industry (KICC), the President was quoted as vowing to replicate the miracle of the Asian Tigers in Nigeria.

He laid out the basis of his vow. Nigeria, he said, has abundant human and natural resources –unlike South Korea which he noted attained its development without natural resources. Sounding the usual refrain about the Nigerian economy as having “the best prospect of growth in Africa”, he assured prospective investors of good returns on their investment.

The President also dwelt on how his

‘We said it before; the issue of Nigeria’s development goes beyond the familiar sales pitches. It is not even about mounting elaborate road shows in the bid to attract foreign investment. When the environment is right, investors – whether local or foreign would certainly come. Investors have one thing in common; they are quick to recognise opportunities and would readily jump when they see one’

government has set its mind on diversifying the economy, and making the economy a private-sector driven one, while promising that gains like the one recorded in the telecoms sector would soon be replicated in power, energy, oil and gas and the manufacturing sectors.

And, as if his hosts needed reminding, the President told them of Nigeria’s huge population of over 167 million – and the vast market.

The idea of drawing parallel between the nation’s development aspirations and the record achievements of the Asian Tiger nations of Singapore, Taiwan, Hong Kong and South Korea is no doubt a familiar one. Their story of exceptionally high growth rates (in excess of seven percent per annum) and rapid industrialisation in the 1960s through the ‘90s, which saw the four economies leapfrog from the backwaters of underdevelopment into advanced and high-income economies have served as models for many developing countries, including Nigeria. The stories have been told and retold to the point that Nigerians are now familiar with them. Hong Kong and Singapore are today world-leading international financial centres while South Korea and Taiwan are world leaders in manufacturing and information technology.

By drawing parallels between the superlative growth of the Asian Tigers and Nigeria’s, (it is said to have averaged seven percent in the decade), the President may have intended to assure that Nigeria is cruising along that path. Nigerians of course know better. To start with, there is a whole world of difference between the unending ritual of crystal gaz-

ing that has become the executive pastime, and real efforts targeted at putting vital building- blocks of the desirable future in place.

The Asian example was a model in discipline and commitment by the leadership to entrepreneurial development with emphasis on global competitiveness. In Nigeria, the so-called steady growth has been more of an accident than anything else. Indeed, Nigeria is yet to make a head-start as far as fostering an environment for doing good business goes. The power sector remains in the doldrums; the same goes for transportation and other enablers of growth. When policies are not skewed, they are so haphazard as to present daunting challenges to manufacturing and the real sector.

The difference does not even end there.

Whereas the growth drivers of the Asian Tigers were manufacturing and information technology, Nigeria’s case was one of oil-induced growth. The greater tragedy here has been the failure to convert the opportunities from bumper oil earnings to lay a foundation for a diversified, self-reliant economy.

We said it before; the issue of Nigeria’s development goes beyond the familiar sales pitches. It is not even about mounting elaborate road shows in the bid to attract foreign investment. When the environment is right, investors – whether local or foreign - would certainly come.

Investors have one thing in common; they are quick to recognise opportunities and would readily jump when they see one. If they haven’t come, it is because the President hasn’t done enough. He would do better to attend to those matters that bring investment.

Wade’s wad of trouble

•Presidential election in Senegal shows democratic institutions are still weak in Africa

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UT-GOING Senegalese President, Abdoulaye Wade, is Wolof.

But perhaps there is a Wolof equivalent of the Yoruba tale of the journeying tortoise. Asked when he would return, the tortoise snapped he would not return from his trip until he was disgraced! If there was a Wolof equivalent of this tale, perhaps President Wade would have been saved his avoidable wad of trouble.

By April 3, when Macky Sall, a former prime minister and protégé of Mr. Wade takes over as Senegal’s fourth president (after Leopold Sedar Senghor, Abdou Diouf and Mr. Wade), the 85-year old incumbent should have gone out on the high, consolidating Senegal’s record of democracy and his own fair claim to statesmanship: long-time opposition leader-turned president by the democratic process and leaving power by virtue of a constitutional term limit.

By that, he would have become an excellent role model for a-democracy challenged West Africa. Instead however, Mr. Wade tragically succumbed to the “African Big Man” syndrome – that penchant to think executive power could trump laid-down electoral laws.

The saving grace though, was that Mr. Wade conceded defeat and congratulated Mr. Sall, his electoral conqueror, by at least 3:2 margin, after the March 25 presidential run-off. The grand irony is that was how, back in 2000, defeated President Diouf had called Mr. Wade and conceded defeat.

As it was in 2000, therefore, it is in 2012: the opposition had united to vote-shellac a stiff-necked president. Mr. Wade had

exited through the back door, to quote a local opposition figure – and that was just as well! But yet again, Senegalese democracy is strutting up stage. It is a profound lesson of hope for the democratic-minded in Africa.

Still, how a person like Mr. Wade would succumb to the African Big Man’s syndrome beggars belief. Unlike the Gnassingbe Eyademas of this world, that tribe of ill-educated, military musclemen who held their people captive, Mr. Wade belongs to a different class: two doctorates in Law and Economics, a high flying intellectual that was once dean of Dakar University’s Law and Economics faculties, and a rich democratic record of fourtime presidential runner-up before clinching the job at a fifth try.

Why would such a person, and at 85 too, attempt to vote for narrow legalism likely to bring him ruin instead of public morality, likely to gift him eternal honour? By law, Mr. Wade, to be sure, was not bound by the term limit. This is by virtue of the fact that a “new” constitution, that reverted presidential tenure to seven from five years, came on stream in 2008. He was elected and sworn in for his second term in 2007. So, technically, he was qualified to run, since the new law could not be backdated; and his right to contest could not be abrogated, under democracy. That was the point the Senegal Constitutional Court was making.

Still, the old man was 85 and he was out of favour with the people, unlike the situation in 2000 when he democratically ousted Mr. Diouf. Besides, there was the little question of Karim Wade, Mr.

Wade’s son, putative heir apparent and hated beneficiary of presidential cronyism.

That the legalistic lawyer in Mr. Wade could angle for narrow legal triumph over common sense is a testimony that democratic institutions are still weak in most of Africa. Even for Senegal, the institutional deepening question remains: lest Mr. Sall, after another 14 years of two, seven-year two presidential terms, angles for a third!

Meanwhile, congratulations to Senegal, an oasis of democracy in a desert of autocracy called West Africa. As for Nigeria, it is time to emulate the Senegalese.

That is the way to ease out bumbling leaders who have made Nigerians’ lives a nightmare. Both the people and the Independent National Electoral Commission (INEC) must take note.

‘That the legalistic lawyer in Mr. Wade could angle for narrow legal triumph over common sense is a testimony that democratic institutions are still weak in most of Africa ...

Meanwhile, congratulations to Senegal, an oasis of democracy in a desert of autocracy called West Africa. As for Nigeria, it is time to emulate the Senegalese. That is the way to ease out bumbling leaders who have made Nigerians’ lives a nightmare. Both the people and the Independent National Electoral Commission (INEC) must take note’

The never-ending cold war

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WO decades after the end of the cold war, Mitt Romney still considers Russia to be America’s “No. 1 geopolitical foe.” His comments display either a shocking lack of knowl-

edge about international affairs or just craven politics. Either way, they are reckless and unworthy of a major presidential contender.

Mr. Romney couldn’t wait to pounce when President Obama told President Dmitri Medvedev of Russia — in a conversation at a nuclear arms summit meeting picked up by a microphone — that he would have more flexibility on missile defense and other arms issues after the election.

First, this is an honest statement of fact, as Mr. Romney’s reaction clearly demonstrated. The political atmosphere in Washington is so poisonous that cooperation on any issue right now is near impossible. Mr. Romney accused Mr. Obama of signaling that, postelection, he would “cave” on missile defense. In Foreign Policy Magazine on Tuesday, Mr. Romney accused him of bowing to Russia on nuclear arms cuts and Iran. That is not true.

Two years ago, President Obama signed a treaty with Russia that makes modest cuts in each side’s nuclear weapons, and he has promised to pursue more reductions. Although Mr. Romney opposed the treaty, 13 Republican senators joined all the Democrats to ratify it. Every president since Ronald Reagan has reduced the nuclear arsenal significantly. We simply don’t need — and cannot afford — the thousands of weapons still on hand.

Saying he will have flexibility on missile defense doesn’t mean Mr. Obama will “cave.” Two years ago, he made a sound strategic decision, scrapping former President George W. Bush’s dubious plan to build a long-range missile defense system in Poland and the Czech Republic. The Pentagon is deploying a less-ambitious — but-more-feasible — system of interceptors and sensors, first on ships and later on land. Russia objects to a system in Europe, saying it will put their long-range missiles at risk. That is not America’s intent — the real target is Iran — and Mr. Obama is right to work to find a compromise.

As for Iran, President Obama and his diplomats have managed to persuade Russia to go along with limited but important sanctions at the United Nations Security Council. They also have rightly gone around Moscow — imposing their own sanctions on Tehran that are tougher than President Bush ever achieved. Russia has worked productively with the United States on Libya and Afghanistan.

Russia is an unsavory player. In December, Vladimir Putin’s party tried to steal a parliamentary election; this month, he faced fraud charges from international observers after his own re-election as president. He has cracked down on critics and restricted democracy. His support for President Bashar al-Assad of Syria is unconscionable.

But Russia can’t be wished away or denounced away. It has to be challenged and the relationship managed with vigilance and skepticism. The administration was right to express concerns about the stolen parliamentary election — drawing verbal attacks on Secretary of State Hillary Rodham Clinton — and to try to publicly shame the Kremlin on Syria. Mr. Obama also needs to more firmly support democracy in Russia and remind Mr. Putin that many obstacles to cooperation are of his own making.

There are real threats out there: Al Qaeda and its imitators, Iran, North Korea, economic stresses.

Mr. Romney owes Americans a discussion of the real challenges facing this country and his solutions to them.

– New Tork Times

TRUTH IN DEFENCE OF FREEDOM Managing Director/Editor-in-Chief Victor Ifijeh • Editor Gbenga Omotoso •Chairman, Editorial Board Sam Omatseye •General Editor Kunle Fagbemi •Editor, Online Lekan Otufodunrin •Managing Editor Northern Operation Yusuf Alli •Managing Editor Waheed Odusile

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THE NATION MONDAY, APRIL 2, 2012

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9EDITORIAL/OPINION

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IR: For the people of Osun State, Monday, March 26, was a historic day. It was a day of hope for the hopeless; a day of triumph of faith. It was a day that the mighty hands of government came down to lift the spirits of some of the patriotic though neglected citizens who have made sacrifices towards the development of the young state.

On that fateful day, the amiable Governor of the State of Osun, Ogbeni Rauf Adesoji Aregbesola, represented by his deputy, Otunba Titi Laoye-Tomori, presented N200 million worth of cheques to 785 residents of Osogbo, the state capital, whose properties were acquired for the construction of the proposed Osogbo East bye-pass road project.

This unprecedented gesture has finally put an end to the years of frustration, uncertainty and agony that the people were needlessly subjected to under the immediate past government of Olagunsoye Oyinlola.

For the sake of collective good, the people set aside their self-interests. In order to ensure a better future, they were made to sacrifice the security and comfort of their properties. But rather than appreciation and compensation, what did they get in return for deferring to the

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Kudos to Governor Aregbesola greater good? Contempt and neglect. The sacrifice involved and the pains occasioned by the loss of their properties in the course of developing a modern and befitting state capital cannot be quantified. Their joy of a purposeful sacrifice was cut short. Yet the promised journey to a greater development was aborted.

Although the road project was

conceived during the governorship of Chief Adebisi Akande in the early 2000s, the appropriate time for compensating the people whose properties were acquired coincided with the tenure of the immediate past government; and so was the responsibility to do so. But this was not to be. Instead of the deserved good treatment, they were given short shrift by the PDP-

government’s reign of anomie. But what could the people do but to wait and hope?

The plight of these people only went further to confirm that the people of Osun were, indeed, dealing with a government that had become noted for its disdain for fairness and the rule of law. One cannot help but see the relevance to our situation of Voltaire’s obser-

IR: It is shocking reading stories of innocent Nigerians who die daily in circumstances that could been have avoided if only we had leaders who care to work for our collective interest. It is indeed disturbing to learn about the carnage at Igwuruta round about in Port Harcourt on March 17, when a fuel tanker as usual lost con-

trol, spilled its content and was engulfed in fire. A lot of innocent people lost their lives in that ‘preventable’ accident. Last week too, a tanker also lost control and emptied its content along Nnewi/Nnobi road but very fortunately, this did not ignite another fire that could have roasted hundreds of people.

It beats my imagination why gov-

The Peoples Democratic Party (PDP), is dominated by people bent on protecting what they have looted, and can only continue to deceive Nigerians about good governance.

Read this: “The House of Representatives has expressed concern over withdrawals from the Stabilization Account by the Federal Government. Describing the withdrawals as illegal, the lawmakers questioned specifically, the withdrawal of N114b from the account in eight months and are set to in-

vestigate it.”

Investigate what? Isn’t that the way the PDP family operates? If the National Assembly (NASS) is ever sincere, what happened to the power probe of the Obasanjo presidency which the NASS undertook?

Explain why the same House is dragging its feet on the probe of the Nigerian National Petroleum Corporation? That is it! Justice delayed is justice denied.

ernment cannot take drastic steps to regulate the haulage of fuel across our cities in broad daylight.

Why should we use human sacrifice to bridge the gap of our infrastructural failure? Telecommunication companies lay fibre cables, why can’t government lay gas pipes across the nation and eliminate the dependence on ill-mannered tanker drivers for fuel distribution? When they decide not to work, Nigeria shakes.

The truth is that the sugar-coated message of implementing Subsidy Reinvestment and Empowerment (SURE) programme is a mirage if we cannot see the dividends of these on our streets. The greed, selfishness, corruption and supine attitude of our political office holders are the causes of government operating at frequency not visible to the ordinary man on the street. I have seen the push from the PDP - led Federal Government to address all these critical issues facing you and I on the streets. Confirm this from their

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• Dr Olu Joseph, Ilesa, Osun State

Who will tame this madness?

Things getting worse, not better

IR: There has never been stable electricity, but the situation is worse today than ever before. The supply has dropped below imaginable level, and both petroleum and diesel are hardly affordable by those who have electricity generators.

President Goodluck Jonathan has set June as the definite month in which the Boko Haram crisis will end. When did he become a prophet or seer? How many persons are expected to die between now and June?

vation that “it is dangerous to be right when the government is wrong”. But according to the saying of our people, no matter how long dishonesty may have travelled, it takes only a day for the truth to catch up with it. We can be thankful to God that, ‘A Daniel [has finally] come to judgment’ in the state.

With the compensation payment, Aregbesola has lived up to the essence of his rebranding as an omoluabi. It is comforting that, at last, the affected people can heave a sigh of relief that their sacrifice has not been in vain. This serves the further purpose of reassuring and encouraging the people to sacrifice for the common good.

•Pius Oyeniran Abioje, Ph. D, University of Ilorin.

las PDP National Convention held on March 24, where there was ‘selection’ instead of election.

While we are looking at longterm measure in fuel distribution, we should use regulations in the short - term to curtail the movement of articulated vehicles carring fuel as well as containers. They should be resticted to moving at midnight.

These are small laws we can put in place to create social order and this has not been done. What we have is a group of lawmakers who are only concerned with what they can get from government and not what they can offer to the nation. This regulation should be duly enforced by the police and road safety as laws are often made without adequate implementation being done.

Death is getting cheaper in Nigeria,and government should act now to stop this ugly situation.

• Eyeke Solomon Eyeke.

Dept. of Mass Communication, University of Nigeria,Nsukka.

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THE NATION MONDAY, APRIL 2, 2012

EDITORIAL/OPINION

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Let’s make things work for Nigeria

ORE and more voices are proffering the convocation of a Sovereign National Conference (SNC) as the panacea to the resolution of current developmental discrepancies in Nigeria. This is because, day-by-day, the nation’s unchecked systemic decline is becoming extraordinarily irritating, flushing out the hope of individual fulfillment and national progress. People are gradually being compelled to get more enlightened that it will take more than a Goodluck Ebele Jonathan to heal the wounds or the existing legislature to address the cleavages afflicting the country.

Once upon a time, Nigeria was enjoying the tag of potential greatness. There was the optimism that being the most populous black nation, blessed with considerable human and natural resources, the country would soon be elevated to the rank of the developed. But rather than fulfilling the expectation, it has been a story of glory downturn.

There are privileged few feeling contented with the unruliness and are standing against change. Yet, there are also those committed to genuine transformation of the society for a better tomorrow. The glorious birthday celebration of Asiwaju Bola Ahmed Tinubu last week was another opportunity to add value to the campaign to lift the nation from the miry clay to the place of restoration of lost glories.

At the birthday colloquium on Wednesday, which I consider as the peak of the celebration, the advocates of change won another respected backer in former Commonwealth Secretary General Chief Emeka Anyaoku. In declaring the need to return to true federalism, he said the conveyance of SNC is a way of tackling the nation’s challenges. “No one can deny the fact that there are major challenges of insecurity, heightened by Boko Haram, constant call for new revenue allocation formula, decline in health and education standard,” which according to him, are part of the issues to be resolved at the conference.

The birthday celebrator Asiwaju Tinubu himself has consistently insisted that the solution to all challenges facing the country was for it to adopt the practice of constitutional democracy and true federalism. For him, fiscal federalism is a critical issue and a way of balancing fiscal policies based on justice, equity and fairplay as it will enable the federating units to develop its power supply, plan for its educational and petroleum needs and project a better planned economy for themselves. For instance, his argument of true fiscal federalism is that it is utterly ridiculous and unjust for more than 80 per cent of VAT proceeds to be spent outside the state which generated the same percentage. His successor, Lagos State Governor Babatunde Fashola too conceded that there is urgent need for true federalism for the country to achieve its potentials as a nation. To him, “constitutional deficiencies of our federation must be corrected urgently, rather than later.

E

VER since the economy hit the doldrums in the mid eighties, leading to fiscal cutbacks in education budgets, various governments, state and federal, have been confronted with the dilemma of funding tertiary and university institutions in order to maintain quality and service delivery with respect to academic programmes and facilities such as accommodation, water supply, security, computer training, books, lectures, examinations, library, curriculum review, student admission, staff training, conference attendance and teaching facilities, staff welfare. Recall that during the oil boom years in the seventies, the sector was heavily regulated as undergraduates literally paid peanuts.

Conventional thinking amongst policy makers was that education was for the public good. When the burden of funding education became too heavy for the governments to shoulder alone, various strategies like deregulation gained impetus with the emerging shift in perception of education as a public good; to education for private benefit.

Education was no more perceived as an investment, but a cost. This thinking coincided with the World Bank inspired Structural

‘But for the sake of children from under-privileged homes, remedial measures such as bursaries, endowment and palliatives should be introduced to cushion the effect. We have a listening governor Dr TA Orji, whose administration set up a functional scholarship board, that has for some time now been dispensing bursaries, scholarships to Abia state students at home and abroad’

Indeed, the sovereignty of country resides with the people. But as the counter arguments go, the sovereignty has been transferred to the National Assembly and the President acting on behalf of the people and the present custodians of the people’s mandate cannot be asked to abdicate this responsibility. That truly is the fear. They see the proponents of SNC as willing to activate the constitutional provision that stipulates how sovereignty is withdrawn from mandated custodians. And that is the error.

Things are not working largely because of the operating system and the operators of the system. The president is constitutionally over-empowered that he is hardly better that a military dictator simply because the constitution was fashioned in the thinking of the military rather than of the people. Military interruption in the nation’s clime effectively killed true and fiscal federalism.

The concept of federalism, as practiced in Nigeria today, is farflung from what true federalism stands for. There is need for the nation to awaken to the realities of its ethnic, religious, political multiplicity and corporate reality. There is no alternative to true federalism. The practiced cosmetic federalism permits overconcentration of powers in the Federal Government, to the detriment of the component units within the lopsided federation.

At independence, the nation cuddled regional federalism whereby the country was grouped into regions. Each region operated autonomously without gratuitous meddling and encumbrance from the top. The system encouraged enthusiasm in economic development as there was mobilization of their human and material resources in revenue generation. Each region identified its area of potency and developed marshal plans of human capacity building which produced a lofty pool of cerebral resource contributors and a highly-skilled national strength. The regions under the founding fathers experienced massive infrastructural development, admirable services and desirable macro and micro-economic policies.

Revenues were generated independently and ploughed back to developing the regional economies. This system gave the people a sense of obligation, commitment and belonging. People were willing to contribute to their regional economies. Consequently, the nation witnessed growth in every aspect unlike the systemic mockery being witnessed today – a so-called federation where virtually all regulations and decisions (for example the minimum wage saga) are being dictated from the centre.

Military rule did an immeasurable damage to Nigerian federalism.

Of course, the old order of regional governance and free federalism was abandoned by the military largely because of the discovery of crude oil. They savoured the oil wealth and hastily formulated ways of securing their grab of power. They mortgaged the new oil riches and began spend-thrifting its proceeds on lavish covetousness and cupidity. The productive and result-oriented regional structure of government was replaced with unitary governance. Control of crude oil resources and its attendant benefits were commandeered to the centre. The oil resources were controlled from the very top to satisfy self-centered ends to the detriment of the people whose land were being despoiled and sullied in the course of oil exploration.

The factual perception of resource control and proper federalism was discarded by the junta and handy individuals who advantageously positioned and aligned themselves to recurrently benefit from the common oil wealth.

The encumbrance of true federalism decelerated economic development, disunited the people into mini units called states, hindered intellectual discourse and provoked unhealthy rivalry in revenue generation and sharing. These unrewarding rationale disallowed free access in decision making and inputs into governance.

The error of the Federal Government policing the entire country from a central command in Abuja has led the nation to the ebb that it is today. The earlier we depart from it, the healthier and more enhanced the country will be. Every state that has power to give judgment through its magistrate state high court, make law through its house of assembly and local government legislature must have the simultaneous power to enforce its law and policies that benefits the people of the state.

In searching for true federalism, the factor in Nigeria must first of all be redressed in relation to fiscal federalism. The Federation Account is a collective purse held in trust by the central government for the federating units. The Federal Governments cannot and should not assume a posture of “a big brother” who distributes largesse on the basis of good behaviour. For Nigeria to have a true federalism, the fiscal policy must reflect equality of rights, equality of obligations and equality of access to positions. Furthermore, the states must be re-attuned from a mental slavery to Abuja as it is hitherto. Power must be more decentralized to reduce the attraction of the centre. It is to be realized that the nation has a lot to benefit from the advantages of true federalism. The economic advancement, political development and constitutional stability of the federal systems attest to the goalattainment capacity of federalism.

Therefore, it should become obvious why the battle for true federalism still has to be fiercely fought through constant agitation, continuous sensitization and unending advocacy. For those who truly love the nation and desire its progress, it makes sense to agree to address the nature of our federation. And the appropriate forum is to gather all minds at a national conference.

In the words of Professor Niyi Osundare, a country is like a machine, like an engine; you have to constantly look at the parts and see how they are working together. According to him, “a country is systemic entity; all its parts have to work in tandem and independently. They have to be able to work independently but they also have to be able to work together for the common interest, which in this case, is the federal centre. As things stand, the Federal Government takes too much. It plays Father Christmas to the states which are always all there with begging bowls in their hands.”

Prof Osundare reflected that the Nigerian President combines the power of the old military dictator and the absolute authority of the feudal despot. For him, this is why democracy is not working; this is why there is so much sycophancy. “Which governor would dare offend the President of the Federal Republic of Nigeria? Which governor would dare disagree with him? Go and ask the governors who disagreed with President Olusegun Obasanjo and hear their tribulations, including impeachment by all kinds of Byzantine methods. This is not how to run a democracy.” I agree with his conclusion that Nigeria of today is not a federal state, not even a ‘Republic’, as she is wont to claim. Indeed, we have to create our own federal republic; and it is the people of the country that will do it.

Truly, it is possible to make things work in Nigeria. This is not a doomed land of the impossible.

That hike in Abia varsity tuition fees

By Charles Obioha Ogbonnaya Adjustment Programmes which in its wake urged the universities to adopt cost recovery, cost-sharing methods, and initiate income generating activities and profit-oriented commercial ventures to mobilize resources needed for the smooth operation of the university activities.

The measures included the introduction of school charges in the following areas: sharing costs on academic-related matters such as library, computerization of results; departmental related issues such as books, chairs, tables, fans, and air conditioners; student-related issues such as admission and screening; staff-related issues such as training, welfare and promotion, and other school –related issues such as security, vehicle parking spaces, business operation and upkeep of infrastructure.

Deep industry studies by eminent academics reveal that despite the fact of high charges in universities in Nigeria, student enrolment is still on the increase. The stress of geometric student population, juxtaposed with pressure on staff and facilities has triggered close to 30 major strike actions championed by the various unions situated within the academic and students community. It is in response to this problem that the various governments have taken the painful but unavoidable option of fee increases. A sampling of fees charged in some Nigerian universities is indicated thus: Osun State Universty, N180-300,000; Kwara State University, N150-200,000.

Recall that Lagos State government recently hiked tuition fees in LASU showing that the following courses will attract the new fee regime: Arts/Education (N193,000), Social and Management Sciences (N223,750),

Law (N250,000), Communication/Transport (N238,750), Science (N258,750), Engineering (N298,750), College of Medicine (N348,750).

The calculations by the body of Vice Chancellors in the South-east in 2008 was that it costs an average of N245,000 a year to train the average undergraduate and N129,000 for a post graduate student. This excludes the cost of development of infrastructure. Four years down the line, this projection would have been more than double given the inflationary spiral.

While some of our neighbours pro-rated students fees on the grounds of being either domestic or non-indigene, Abia State University (ABSU) bucked the trend, by an all inclusive non-discriminatory policy of charging a flat rate for all students from between N47,500 and N100,000 per session, depending on the course irrespective of state of origin. Across the Imo river, non-indigenes especially those fromother states pay 150,000 naira while home students pay N30,000.

Before the increase in school fees, ABSU was spending about N150 million per annum on overhead costs, out of which the state government pays N100 million as subvention, while the university provides the balance of N50 million. Presently, the ABSU yearly overhead cost is said to be about N270 million.

No sooner had the ABSU increase announced, than some professional agitators and civil liberty do-gooders, picked up the gauntlet firing incendiary speeches, trying to instigate the students to a confrontation with the authorities. We urge ABSU students to ignore these self appointed guardians of public morality. Truth of the matter is that some of these activists and parents who claim

that cannot pay this moderate local tuition fees, send their children and wards to universities in Ghana and elsewhere they pay eye-popping amounts.

That thousands of Nigerian students are studying in tertiary institutions in Ghana is no longer news. But what is of interest is that about N155 billion paid as tuition fees by 71,000 Nigerian students in Ghana funds that country’s economy. The figure is more than the N121 billion yearly budget of federal universities in the country.

According to statistics from the British Council, since 2002, the number of Nigerians studying in the UK increased by 75 per cent.

It is, therefore, projected that in 2012 the figure, would have increased because of the trends of the education system. Between 2007 and 2008, on the list of countries sending students to the UK, Nigeria ranked eighth. This kind of fees will definitely be high compared with fees paid in Nigerian tertiary institutions. Yet, an attempt by governments to increase fees has been condemned by parents and resisted by students.

Recently, some Vice-Chancellors of Nigerian universities said Nigerians should stop playing the ostrich by pretending that the government alone could shoulder the overwhelming challenges of education. They posited that part of the responsibility of improving standard in universities should be shifted to parents in terms of tuition increase.

With the current economic depression the country is going through, there is no way tuition fees can be avoided. I support free education from primary up to secondary school, but not at the tertiary level.

But for the sake of children from underprivileged homes, remedial measures such as bursaries, endowment and palliatives should be introduced to cushion the effect.

We have a listening governor Dr TA Orji, whose administration set up a functional scholarship board, that has for some time now been dispensing bursaries,scholarships to Abia state students at home and abroad.

• Chief Ogbonnaya is deputy chief of staff to Abia State governor.

THE NATION MONDAY, APRIL 2, 2012

22

EDITORIAL/OPINION

F

ORMER governor of Sokoto State Alhaji Attahiru Bafarawa had cause to take up a full page advertorial in this paper last week. He was so concerned about events in this country that he thought the best way to share his thoughts was through a paid advertorial. His choice of this strategy may have been to ensure his views are neither misrepresented nor misquoted. Even then, he is not impressed by sundry political meetings which he said end up without pointing the way forward. Since he chose not to be part of such meetings, he felt he could still contribute to national discourse; thus the choice of the medium.

Of particular concern to him, was the recent meeting by northern leaders where issues of security, poverty and revenue allocation, especially as they affect the north were discussed.

I had in two previous editions of this column taken up some of the issues that bother Bafarawa as were raised by northern governors and northern leaders. For this reason, it would seem an overkill to revisit the matter so soon after. But to succumb to this temptation would amount to glossing over the nexus between some of the points raised in those write-ups and the serious expositions by Bafarawa. If anything, Bafarawa has seen it all.

As former governor of Sokoto state for eight years and key leader from the zone he should be trusted to know the gravity of the issues he has raised. For these, we are bound to take him seriously when he speaks on issues affecting that zone and the conduct of its leaders. This is more so when such views are frank and devoid of sectional predilections. Such was the frame of mind with which he faulted Babangida Aliyu, chairman of Northern Governor’s Forum for making the issue of revenue allocation a northern affair when he said that southern states were unduly favored by the current order. The welter of criticisms and condemnation that trailed Aliyu’s call was largely on account of the incendiary nature of such comparisons. And as Bafarawa admitted, even though the allocation formula could be looked into, it must not necessarily be against the background of which divide receives more. We could for instance, reduce the share allocated to the federal government so that the states and

F

OR weeks running, there has been a resurgence of hostilities on the pages of newspapers regarding Kwara politics.

Starting from Kawu Modibbo to Ishaq Abdullahi in the Vanguard and then Bolakale Abdulkadir in the Tribune, the writers attempted to paint a picture of what happened during the last gubernatorial election in the state, which cost the flag bearer of Action Congress of Nigeria (ACN), M.D Belgore, electoral victory. Governor Abdulfatah Ahmed of the Peoples Democratic Party, PDP, won the election with a total of 259, 969 votes to beat Belgore who scored 152,580 votes. The election of Governor Ahmed has since been reaffirmed by the apex court.

Although I am not from Kwara State, I have the privilege of knowing the politics of the state having lived my growing and education years in the state. The Modibbo’s “M.D. Belgore and the unfinished work in Kwara”, published in the Vanguard newspaper of March 15, full of illusions and delusion, appropriately passes for a voyage of vendetta for someone who identified himself as Belgore’s cousin and openly confessed to “personally linked to his campaign.

While asserting that MDB candidacy galvanized the youths, Modibbo, affirms that “the most difficult issue all through, was the choice of platform, the ACN” and concluded that the majority of the people of Kwara State do not equate Bola Tinubu and his ACN platform with liberation.

I fully align with Ishaq Abdullah in his “How Modibbo Kawu got it wrong on MD Belgore/ ACN/Tinubu” that the Kawu’s assertion constitutes “ a veiled reference to the so-called Hausa/Fulani-Yoruba rivalry in Ilorin, a position which erroneously gives the people away as backward folks still trapped in primordial ethnic chauvinism, at a time the norm all over the world is de-emphasising ethnic bickering and embracing the concept of brotherhood and pursuit of good governance.

But beyond that, the assertion shows that in spite of Kawu’s acclaimed education and exposure, he is still neck deep in the politics of ethnicity and genealogy. He probably, loathes the Sarakis and Tinubu, not because they have not sacrificed their today’s comfort for the tomorrow of their people, but possibly because both do not belong to his lineage and have not invited him to share in his perceived turning

Emeka OMEIHE 08121971199 email: EmekaOmeihe@yahoo.com

Bafarawa’s open reflections local governments could get more. This could have been a more positive and unbiased approach to the matter. If in the process, issues are raised on derivation, it could be better understood. But to set the north and south on collision course as Aliyu did on behalf of his colleagues is an act of irresponsibility unedifying of his high office. Most often, such elite incitements are responsible for the uprisings we witness in that part of the country.

Again, Bafarawa hit the heart of the matter when he asked Aliyu: why now? Hear him, “why has Aliyu not raised this issue since five years when he became governor? These posers are heavily loaded and in them, we may find some of the answers to our current travails. Little wonder Bafarawa insists most of those calling for meetings here and there purporting to be seeking solutions to our problems are the same people behind the problems we face today. That point is unassailable. He does not see how this category of people can be part of the solution except they come out confess their sins and apologize to the people publicly.

One vital deduction from Bafarawa’s reflections is that the key to this nation’s myriad of crises can be found in the hands of our leaders. So also are the solutions to them.

That is the allegory of people in positions of authority facing crisis of relevance, and resorting to throwing bones to the dogs in order to make them fight.

That could account for why Aliyu and his colleagues never noticed that the revenue

formula was disadvantageous to their region until now. That may be why, before now, they never saw any connection between the so-called inequality in revenue receipts, insecurity and the mass poverty in the north. And as Bafarawa pointed out, curiously, these governors have received more revenue from the Federation Account in their first three and half years in office than what their predecessors got in eight years (1999 and 2007). If poverty and insecurity in the north are on account of poor revenue accruals, one would have expected to see a substantial reduction in the phenomena with the jumbo receipts they are now getting. But nothing of such happened as recent indicators revealed. Northern governors must have other motivations for their outburst rather genuine concern for the wellbeing of their people.

In the face of all these, one is led to the inevitable conclusion that the attempt to rationalize their failure to tackle abject poverty which accentuates insecurity in the north on low revenue accruals is not only diversionary but escapist. It fits well into Bafarawa’s conclusion that these leaders squander their resources only to turn around to “seek to bring disunity between the north and south over revenue allocation”. He succinctly captured the intricate nature of the issue: if these leaders reduce the poverty in the land through the provision of the dividends of democracy, Nigeria can live without Boko Haram, poverty haram’ and other such untoward manifestations. In this, we

Still on how Kawu got it wrong on Saraki/PDP

By Adeyemi Salako

“the state and its resources into something close to a sole proprietorship”.

I feel strongly that as a people interested in the unity of the nation such chauvinistic tendencies should not have arisen in the first place. If we must move forward in this nation, we must do well to divorce these infantile dispositions from our body politics and cast our votes to the candidates we feel has the potentials to deliver people-oriented programmes, tribe, religion or background notwithstanding. As if that was not enough, Kawu, again, got it absolutely wrong when he posited that “Bukola Saraki, deep down in his mind, knew that he was almost completely rejected by the youths, especially in the Ilorin Emirate”, a position also adopted by Ishaq Abdullah, in whose imagination, it meant demystifying the myth of invincibility long built around the Sarakis.

The truth remains that these warped submissions exist only in widest imaginations of their proponents since the INEC form EC8 does not have columns for the young or the old.

A general breakdown of the Kwara gubernatorial result shows that in Kwara Central, ACN had 87,274 representing a little above 36 percent of the total 239,862 votes from the zone. Put together, the PDP and the ACPN, which undoubtedly represented the Sarakis as myopically insinuated by the Kawus, had 327,136 votes representing over 63 percent of the total vote cast.

In Kwara South, the perceived heartbeat of the ACN, the ‘demystified’ Sarakis scored 66.17 percent of the total votes while, ACN had just 33.82 percent of the votes. The story is not different in Kwara north senatorial zone where the Sarakis scored 82.85 percent with ACN scoring 17.14 percent. Where, then, lies the rejection of the Sarakis? Kawu made several other preposterous allusions, which for space, will be issues for another day.

On his part, too, Ishaq Abdullah also got it wrong in many instances. Trying to represent a case that has failed concurrently at tribunal, the Appeal and Supreme courts, Ishaq failed to establish one common fact, more than any other, that decided the direction of the votes during the said election, which is the person of MD Belgore. I do not claim to know all, but only a few voters knew MD Belgore so well to entrust him with their votes. This may sound awkward, but that is the truth. For most voters, MD Belgore was a stranger, who though a Kwara native, lived all his life in Lagos and still lives in Lagos till date.

On whether the youths voted for MD Belgore en masse or not, available facts point to the opposite direction. While one cannot say that he did not enjoy the patronage of some youths who share his ethnic and religious sentiments, most people hold strongly that the little inroad M.D Belgore made, particularly in Kwara Central, was possible because he flew the ethnic card. If it was something more, why did he not impress in Kwara South, which is traditionally an opposition stronghold? And, why his abysmal showing in Kwara north?

Interestingly, Abdullah had sought some measure of respect for Senator Bola Tinubu, whom he insists has done so much for the Southwest to stand tall in the region’s political turf. I agree with him. Tinubu deserves some respect having done so much for his people in the South-west. It is the same way I strongly feel that the Sarakis also deserve respect, having given their all to the service, growth and development of Kwara State and doing so for more than 40 years. I see this talk of ‘fed up’ as a calculated and deliberate effort to demonize the Saraki family in the face of their enormous contributions at the state and national level.

Or, could anyone have expected that as the first civilian governor to serve two terms in the state, Dr. Saraki would not have made enough friends or built a strong political

can see the root of the insecurity in that part of the country. It is not only the masses of the north that are in poverty because it is equally seriously felt in the south. But the difference between the poor in the north and south is the vulnerability of the former to violence. And this comes through the manipulation of the same leaders. They must therefore be held squarely responsible for the poverty and insecurity in that part of the country.

It was instructive when Bafarawa said with the little resources he got as governor; he was able to make remarkable improvement in Sokoto and even left billions of Naira for the incoming administration. Some could accuse him of blowing his trumpet. For some others, he could even be seen as a saboteur for saying things as he saw them. There is even the possibility that they could levy Boko Haram against him. But the future will definitely bear him out.

Bafarawa is piqued that Ghana, Niger Republic and Dubai are developing faster than Nigeria even with the abundant resources at our disposal. He wants Goodluck Jonathan to see himself as a president of the country and not that of Ijaw or the South-south and that Jonathan could still achieve much if he gets his acts right. Incidentally, underdevelopment is rooted in the very nature of our politics where merit hardly counts; where political expediency is promoted against competence. It is for the same reasons that political competition at the center has been very fierce. Those who compete for power see it in the prebendal sense of the advantage it confers on members of their immediate family and ethnic group. That was also the motivation of northern governors and leaders. It may well be that those who ruled the country in the past did nothing to give a national outlook to that office. That is why Jonathan will continue to be seen as a Southsouth, Ijaw man no matter how hard he tries.

That is why sections that never had a shot at the presidency are restlessly seeking an opportunity. Until it is possible to fish out a Nigerian (if that is possible in the immediate future) who will not be ascribed to an ethnic group, such perceptions will subsist.

That is why the office of the president must as a matter of compelling imperative move round. support that would make him indispensable in the politics of the state? Or, could it be imagined that the people of Kwara would not appreciate the Sarakis goodwill for the state in form of strong relationship, which could influence the choice of who gets what, politically in the state? It is mere wishful thinking to wish the Sarakis away. Thankfully, Abdullah admitted this when he said: “Personality cult’ in politics is rooted everywhere in the world: the Kennedys, the Ghandis and Nkrumahs and if you like, the Mandelas and now our own Buhari in Nigeria.

In the United States, the Democratic Party was almost synonymous with the Kennedys. Look at the record high endorsement Obama got minutes after the patriarch of the Kennedys family endorsed him to be democratic flag bearer in 2008.”

I agree with him that nature has endowed certain individuals more than the rest. It is divine that persons such as the late Chief Chukwuemeka Odumegwu Ojukwu whose presence at the campaign venue of the incumbent governor of Anambra State, Peter Obi, swayed voters to vote for the All Progressive Grand Alliance (APGA) and Chief Obafemi Awolowo, whose philosophies still stand firm in the South-west decades after death and, today, Tinubu. Therefore, why would anyone deny the Sarakis a position, which only God knew why he made them a special breed in Kwara? It is cheap blackmail to always throw into the debate the issue of hatred for the Sarakis by the Kwara people! There is no such thing except that it exists in the imaginations of the likes of Kawu. Having said that, I think what should matter now is the things that we see on ground. Even party affiliation or personality cult, apologies Abdullah, will not win the people over if the dividends of democracy are not delivered. But today, in Kwara State, only the blind will not see the progress being made by Governor Abdulfatah Ahmed. Since progress and even development are all the people are looking for, I think the Kwara people should throw their support behind the incumbent governor and shun campaigns of calumny, greed and religious jingoism. Everyone must join hands to put an end to unbridled search for relevance for some individuals who mean no good for the larger majority.

• Salako writes from Lagos

THE NATION MONDAY, APRIL 2, 2012

25

BUSINESS THE NATION

E-mail:- bussiness@thenationonlineng.net

ISSUES

T HE CEO ‘High returns attract investors to

Cash-less: Stakeholders’ wish prevail as charges ....

- P. 27 News Briefing

Investors’ N250b stuck Not less than N250 billion in investors’ funds are currently stuck in 31 companies that were involuntarily delisted by the Nigerian Stock Exchange (NSE) as the market grapples with aftermath of the bubble pricing that characterised pre-2008 boom period.

- Page 26

Transcorp searches for value

The Nigerian stock market closed the first quarters with a year-to-date negative return of 0.38 per cent. This implies that an average portfolio performance on the Nigerian Stock Exchange (NSE) witnessed marginal depreciation during the period.

Many people are under the impression that oil producing companies are playing games with the amount of crude that they produce and export. I want to state here categorically that the oil business is an international business.

- Mutiu Sunmonu, MD, SPDC

Nigeria’’

Page 32

Power Minister, CEOs meet over drop in generation D

ISTURBED by the un warranted fall in power generation, the Minister of Power, Prof. Barth Nnaji has summoned all the chief executives officers (CEOs) of the 18 successive companies of the Power Holding Company of Nigeria (PHCN), to a meeting today.

The meeting is to identify the causes of drop in generation and sustainable solutions to the problem.

The issue of gas supply would also be top of the agenda to be discussed at the meeting.

The power generation level had earlier gone up to 4,400megawtts (MW) but stands at about 3,200mw, in-

• National grid affected

By Emeka Ugwuanyi

dicating loss of over 1000mw. This has led to abysmal drop in power supply across the country.

Besides, the meeting becomes imperative because the level of power generation affects the national grid.

Our correspondent gathered from a source close to the power ministry that whenever the generation drops below 3,600mw, it causes grid instability. “Whenever the

power generation is less than 3,600mw, the grid swings and the development causes damage and instability to it.

All these would be discussed at the meeting,” the source said.

Nnaji had last week ordered an investigation into the three system failures, which the country has experienced since March 15. He had ordered the Chief Executive Officer of the Transmission Company of Nigeria (TCN), Mr. Akinwuni Bada, to set up a team of expe-

rienced and competent engineers to investigate the causes of the system failures and submit a report to him within seven days.

System collapse used to occur about four times every month but had not taken place since December as a result of repairs effected in the transmission network.

The hydro power stations are also affected because the water level has been low and generation from there is very suboptimal, the source added.

The source said the Shiroro power station is not generating anything while that of

Kainji has grossly dropped.

Kainji has installed capacity of 760mw but over time has been able to generate 330mw.

Currently, as a result of low water level, the power station generates about 200mw.

As part of efforts to address the grave drop in generation as well as advance government’s power sector reform agenda, it was learnt that the Minister of Power just returned from the United States where he met officials of the United States ExportImport Bank (US-EXIM Bank) for funds.

The US EXIM Bank had in October last year promised to give a $1.5 billion lifeline for the power sector.

- Page 35

Lafarge Cement Wapco: Staging a comeback Lafarge Cement Wapco Nigeria Plc rode on the back of significant increase in sales in 2011 to improve its overall performance but the company’s profitability outlook remains challenging.

- Page 36 DATA STREAM COMMODITY PRICES Oil -$107/barrel Cocoa -$2,686.35/metric ton Coffee - ¢132.70/pound Cotton - ¢95.17pound Gold -$1,800/troy ounce Rubber -¢159.21pound MARKET CAPITALISATIONS NSE JSE NYSE LSE

-N6.503 trillion -Z5.112trillion -$10.84 trillion -£61.67 trillion RATES Inflation -10.5% Treasury Bills -7.08% Maximum lending-22.42% Prime lending -15.87% Savings rate -2% 91-day NTB -15% Time Deposit -5.49% MPR -12% Foreign Reserve $33.01b FOREX CFA 0.2958 EUR 206.9 £ 242.1 $ 156 ¥ 1.9179 SDR 238 RIYAL 40.472

• From left: President/CEO Dangote Group, Governor Ibikunle Amosun of Ogun State, MD Guaranty Trust Bank, Mr Segun Agbaje, Chairman Nestle Chief Segun Osunkeye and Commissioner for Commerce and Industry, Ogun State, Otunba Bimbola Ashiru at the just concluded Ogun State Investors’ Forum 2012"

NSE sacks 17 as employees allege victimisation

T

HE lingering internal management crisis rocking the Nigerian Stock Exchange (NSE) reached a climax last weekend as the Oscar Onyema-led management dismissed about 17 members of staff.

Head, Corporate Communications of the Exchange Mr Dante Martins, attributed the disengagement to ongoing efforts aimed at streamlining its operations.

He, however, indicated that the disengagement was the last of the series of dismissals and forced resignations that had characterised the bourse since the sack of Ndi Okereke-Onyiuke as director general of NSE in 2010 by the Securities and Exchange Commission (SEC).

According to Martins, the NSE had completed its staff reduction exercise with the disengagement at the weekend.

However, he said the NSE will continue to invest in developing its employees

By Tonia Osundolire

through training and performance-reward system as they are considered the company’s greatest asset that will enable it to achieve its organisational objectives in 2012 and beyond.

He said efforts have been made to ensure that all af-

fected employees receive the entitlements due to them.

The Nation had exclusively reported the imminent disengagement of several employees, especially those that pre-dated the new management at the NSE. Eye-witnesses said the NSE management brought in armed policemen to eject the

disengaged members of staff and some management officials who had resigned their appointments.

Sources close to the NSE had told The Nation that the Oscar Onyema-led management has been frustrating management staff perceived as loyalists of the previous director general.

NSE sources said a recent appraisal carried out by the Exchange for staff performance was being used as a smokescreen, alleging that in actual sense, those perceived as loyalists of the Ndi Okereke-Onyiuke regime were the ones allegedly being removed from the Exchange.

Brokers scramble for NLNG multi-billion insurance

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NSURANCE brokers are jostling for the N2 billion Nigeria Liquefied Natural Gas (NLNG) insurance programme, The Nation has learnt.

The premium covers NLNG’s operational insurance policy, general third party liability policies, group life assurance policy, group personal accident policy, comprehensive motor insurance policy, fire and allied perils policy, including occupiers’ liability, electronic equipment insurance policy and local marine

By Chuks Udo Okonta

policy.

President, Nigerian Council for Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, said brokers have begun to put their documents together to enable them maximise the opportunity created by the programme.

She said brokers have been equipped to provide all types of oil and gas risks, adding that the Local Content Act has really created enormous opportunities for insurance firms, especially

the brokering sector.

President, Lagos Area Council (NCRIB), Tunde Oguntade, said the NLNG business is good for brokers, adding that having successfully bided for the Nigerian National Petroleum Corporation (NNPC) insurance, brokers are leaving no stone unturned in ensuring that they seize the opportunity effectively.

He said: “The national secretariat of NCRIB through the president, passed the information to all members, immediately the offer was

made by the NLNG. We have been urged to take advantage of the offer and we are working hard to secure the deal.

“The area chapters of NCRIB have also begun to pass the information to members all over the country to enable them prepare their documents and bid for the business before the April 4th deadline.”

Oguntade said the involvement of brokers in the scheme of oil and gas busi• Continued on page 26

THE NATION MONDAY, APRIL 2, 2012

26

BUSINESS NEWS Flight Schedule MONDAY - FRIDAY LAGOS – ABUJA Departure Arrival 1. Aero 06.50 08.10 2. Associated 07.00 09.30 3. Air Nigeria 07.00 08.20 4. IRS 07.00 08.20 5. Dana 07.02 08.22 6. Arik 07.15 08.15 7. Chanchangi 07.15 8. Air Nigeria 08.15 09.35 9. Dana 08.10 09.20 10. Aero 08.45 10.05 11. Arik 09.15 10.15 12. Chanchangi 10.00 11.00 13. IRS 11.15 12.35 14. Dana 12.06 12.26 15. Aero 12.20 13.30 16. Air Nigeria 13.25 14.45 17. Chanchangi 13.30 14.30 18. Arik 13.45 14.45 19. IRS 14.00 15.20 20. Aero 14.10 15.30 21. Air Nigeria 14.50 16.10 22. Dana 15.30 16.50 23. Chanchangi 15.30 16.30 24. Arik 15.50 16.50 25. Aero 16.00 17.20 26. IRS 16.30 17.50 27. Arik 16.50 17.50 28. Dana 17.10 18.30 29. Chanchangi 17.30 18.30 30. Air Nigeria 17.35 18.55 31. Air Nigeria (T/TH) 18.30 19.50 32. Arik 18.45 19.45 33. Aero 19.20 20.40 1.

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LAGOS – BENIN Arik 07.30 Associated 08.30 Aero 10.50 Arik 11.45 Associated 13.00 Aero 14.25 Arik 15.30 Associated 16.00

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Arik Aero Arik Aero

1. Arik 2. Aero 1.

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LAGOS – CALABAR 07.30 11.20 12.50 16.00 LAGOS – JOS 10.55 11.15

LAGOS – KADUNA Aero 08.00 Chanchangi 10.00 Arik 10.00 Arik 15.10

were adjudged moribund.

The Exchange has so far delisted 31 companies, which were estimated with capitalisation of about N250 billion in the wake of market decline in 2008.

Aggregate market capitalisation of all quoted companies opened February 2008 at N10.69 trillion.

Market analysts indicated the delisted companies accounted for not less than two per cent of aggregate market value of the equities then.

The delisted companies included Okitipupa Oil Palm, Grommac Industries, Incar Nigeria, Intra Motor, Rietzcot Nigeria, Albarka Air, Aviation Development Company, Ceramic Manufacturers Nigeria, Wiggins Teape Nigeria, Onwuka Hi-Tek, Beverages West Africa, Ferdinand Oil, Foremost Diaries,

Tate Industries, Footwear and Accessories Manufacturers, Aboseldehyde Laboratories, BCN, Christlieb and Maureen Laboratories.

Others included Epic Dynamics, Liz-Olofin and Company, Nigerian Lamps Industries, Niyamco, Oluwa Glass Company, West Africa Glass Industtry, Aba Textile Mills, Asaba Textile Mill, Enpee Industries, Flexible packaging, Krabo, NewPak, Nigercem and Tropical Petroleum.

Most of the companies attracted substantial secondary market values in spite of absence of fundamental figures to back their operations.

For instance, Wiggins Teape Nigeria, where Nigerians owned 60 per cent equity stake, was actively traded and opened February 2008 at N1.27 per share while its last dividend was in 1997. At the point of delisting, Albarka Air was valued

09.10 11.00 11.10 16.20

08.40 08.40 14.55 15.10 17.40

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LAGOS – WARRI 08.15 11.50 11.55 14.55

09.1 12.50 12.55 15.55

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LAGOS – KANO Air Nigeria 07.10 IRS 08.00 Dana 08.10 Arik 12.20 IRS 14.00 IRS 18.15

08.50 09.45 09.40 14.00 15.45 19.55

LAGOS – OWERRI 07.20 14.00 16.30

08.30 15.10 17.40

LAGOS – UYO 10.35

11.35

LAGOS – MAIDUGURI 1. IRS 11.15 13.15 2. Arik 15.50 18.00 08.00

LAGOS – ABUJA SAT/SUN Arik 7.15; 10.20; 2.20; 5.20pm – 7.30; 9.15; 10.20; 2.20; 4.50; 6.45 Aero 07.30; 09.35; 13.10; 14.50; 20.20 – 07.30; 09.35; 13.10; 14.50; 20.20 Air Nigeria 08.15; 14.30; 17.15; 18.30 – 08.15; 13.30; 14.30; 17.15; 18.30

at some N1.74 billion. Oluwa Glass, whose last dividend was in 1996, was trading at a high of N1.44 during same period.

President, Nigeria Shareholders Solidarity Association (NSSA), Chief Timothy Adesiyan, blamed capital market regulators for allowing investors to walk into booby traps of moribund companies.

He said the NSE and the Securities and Exchange Commission (SEC) must take up responsibilities to ensure that small and retail investors’ interests in the delisted companies are protected.

According to him, the compulsory delisting was seen by several core investors in the delisted companies as a blessing in disguise as they have never made efforts to reach out to shareholders.

He said several unsuspecting shareholders were lured into buying shares in the companies.

Fed Govt, others to fund N1.044b GDP project From Kolade Adeyemi, Kano

T

12.15 12.45

LAGOS – OWERRI Aero 07.30 Arik 07.30 Air Nigeria 13.40 Arik 14.00 Arik 16.30

LAGOS – ILORIN 1. Overland 07.15

By Taofik Salako

08.50 12.40 14.10 17.20

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1. Dana

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OT less than N250 billion in investors’ funds are stuck in 31 companies that were involuntarily delisted by the Nigerian Stock Exchange (NSE) as the market grapples with the aftermath of the bubble pricing that characterised pre-2008 boom period.

The NSE had in several batches invoked compulsory delisting to clear what it considered as irredeemably inactive companies. In spite of clear indications of inactivity and failure to submit their annual and quarterly reports and accounts for several years, the NSE had allowed the companies to remain on the official list to attract investors’ funds during the boom period.

With the criticisms that trailed the capital market depression, NSE embarked on mass compulsory delisting of the companies that

08.30 09.10 11.50 12.45 13.40 15.20 16.30 16.40

LAGOS – PORT HARCOURT (CIVIL) 1. Aero 07.15 08.35 2. Arik 07.15 08.35 3. Arik 09.00 10.20 4. Dana 09.27 10.40 5. Aero 10.50 12.30 6. Arik 11.40 13.00 7. Air Nigeria 12.00 13.10 8. IRS 13.30 15.00 9. Arik 14.00 15.20 10. Dana 15.03 16.20 11. Air Nigeria 16.00 17.10 12. Arik 16.10 17.30 13. Aero 16.15 17.30 14. Arik 17.10 18.30

1. Arik 2. Arik 3. Arik

Investors’ N250b stuck in delisted firms

• Head, Retail Products, United Bank for Africa (UBA) Plc, Ms Olumide Osunyomi; winner of the UBA Lion King Reward promo, Mrs Grace Akunnaya and her daughter, Nnadi, during the grand draw held at the UBA Head Office….. last Thursday

Why consumer goods prices are high,

by MAN I

NCREASING cost of raw materi als, erratic electricity supply, water, insecurity and bad roads have been identified as some of the major hurdles in cutting production cost of consumer goods.

Speaking with The Nation, the Chairman, Manufacturers Association of Nigeria (MAN), Apapa branch, John Aluya, expressed disappointment on the parlous state of infrastructure in the country. He said adequate infrastructure meant to drive up capacity utilisation remains

By Toba Agboola

a missing link.

He said the shortfall in infrastructure poses a threat to effective cost control in the production of consumer goods, adding that this has resulted in increased cost of goods and service.

Aluya said: “Consistent decay in infrastructural facilities, lack of security, corruption and policy incon-

sistency, have led to the exodus of some multinational companies to more conducive environments.”

He said the proceeds from subsidy withdrawal, which government has promised to invest in power and other areas of infrastructure is a medium to longterm measure. Adding that, what manufacturers need from the governments at the moment is an urgent intervention move to save the sector from imminent collapse.

e-subsidy: Govt plans centres for farmers

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HE Federal Government is planning a national net work of service centres to help farmers in the rural areas participate in the electronic wallet fertilizer subsidy scheme .

This is to help illiterate farmers participating in the scheme, which has taken off as a pilot project in certain areas across the country.

Minister of Agriculture and Rural Development, Dr Akinwumi Adesina disclosed this in Lagos. He said at least two graduates will be employed to service farmers in the rural areas that need assistance to use the system.

Adesina said the government wants farmers in the rural areas

to receive money to buy inputs through their mobile phones.

He said the service centres will help farmers in the rural areas adapt to this new system of seeds and fertilizers by encouraging people to use vouchers held in mobile wallet accounts linked to a mobile phone. He said the government will transfer funds through the system into farmers’ e-wallet account where they can claim their fertilizers at the stores of agro dealers with the proper identification.

On presentation of the vouchers ,he said the agro dealers will supply farmers with fertilizer and seeds at subsidised cost. He said the government has prepared back

up vouchers in paper form for farmers to be able to access subsidised inputs such as fertilizer and seeds if they are unable to get them through the electronic wallet (e-wallet) voucher due to poor Global Systems for Mobile (GSM) communications network in some rural areas.

Adesina said the e-wallet system whereby farmers are able to access government subsidy under the Growth Enhancements Support through their cell phones has been tested across 12 states and the result has been impressive.

Some of the states that have undergone the test include Nasarawa, Zamfara, Kogi, Ekiti, the Federal Capital Territory (FCT) and Taraba.

Brokers scramble for NLNG • Continued from page 25

ness would enable them boost their capacity and growth, stating that the operators are eyeing the 70 per cent provided by the Local Content Act.

He said the involvement of local operators would stem the outflow of premiums from the country as observed in the past.

“We are looking at 70 per cent as stated in the law. That means that 70 per cent premium that used

to go outside the country in the past, now has to be with local underwriters and brokers. This would enable us improve on our capacity, train, source good rates and do corporate social responsibility,” he said.

HE N1.044 billion Gross Do mestic Product (GDP) compu tation project is to be funded by the Federal Government, in conjunction with the states and the partnering agencies, Minister of National Planning, Dr. Shamsuddeen Usman, has said.

Usman, who spoke during the North-West zone flag-off ceremony of GDP Computation in Kano, said the cost would be borne in the ratio of 30:50:20, respectively.

This means each state will pay about N14.1 million, he stated. Towards this end, he said the 36 states and FCT are expected to contribute a total of N522 million, or N14.1 million each, while the Federal Government is to contribute N313.3 million. The Development Partners would contribute N208.9 million.”

He said to ensure transparency in the project, “a dedicated account has been opened for the project.

“It is reassuring to note that the Development Partners, in particular, UNDP has made tremendous contribution to the project,” Usman said.

Interbank rates jump on cash shortage • Fed Govt auctions N81b treasury bills

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HE interbank lending rates climbed last week to an av erage 15.33 per cent, up from 13 per cent last week, as treasury bill and bond sales soaked up cash liquidity.

The distribution of about N620.7billion ($3.94 billion) of oil receipts to government agencies penultimate week, according to Reuters news, had boosted liquidity and reduced the cost of borrowing.

“The Central Bank of Nigeria (CBN) had embarked on an aggressive liquidity mop-up since the release of budgetary allocations last week, and coupled with bond auctions and flow to foreign exchange purchases, the cost of borrowing has been on an uptrend,” a dealer said.

Nigeria shares proceeds each month from oil sales held in a central account with its three tiers of government - federal, state and local - providing liquidity to the banking system.

But the central bank regularly sells treasury bills to mop up cash from the system as part of measures to control the impact of oil money on consumer prices and to reduce pressure on the exchange rate.

THE NATION MONDAY, APRIL 2, 2012

27

ISSUES The Central Bank of Nigeria (CBN) has raised the daily cash withdrawal/lodgment limit to N500,000 and N3 million for individuals and companies in response to feedbacks from bank customers and the general public who stand to gain from the benefits of the policy, reports COLLINS NWEZE.

• Naira notes

Cash-less : Stakeholders’ wish prevail as charges begin today B

ARELY a few weeks before the Central Bank’s directive to impose charges on violators of the cash withdrawal/lodgments limit was to be implemented, the apex bank revised the limits and adjusted the respective applicable penalties.

As against the N150,000 and N1 million earlier set for individuals and corporate bodies respectively, the CBN, following the recommendation of its Shared Services Department, which had gotten inputs from stakeholders, fixed a new margin of N500,000 and N3 million for the respective categories.

Individuals and corporate organisations that make cash withdrawals above the limits will be charged a processing fee of three per cent and five per cent respectively. Also, individuals and corporate organisations that make cash lodgments above the limits will be charged a processing fee of two per cent and per three cent respectively for amounts above the cumulative limits.

Third party cheques above N150,000 will however, not be eligible for encashment over the counter. Value for such cheques will be received through the clearing house, while nationwide roll-out begins in January 2013.

Commenting on the new dispensation, immediate past CBN Spokesman Mohammed Abdulahi, said having monitored the partial implementation of the exercise in Lagos State and following discussions with

various stakeholders on the effective implementation of the project, the regulator decided to reassess the policy. The purpose, he explained, is to allow for smooth transition and adoption in Lagos in the first instance, and the country at a later date.

Managing Director, Ecobank Nigeria Plc, Jibril Aku, said the CBN acted in consultation with the Bankers’ Committee. He said the regulator decided to raise the limits after gathering feedbacks from different categories of bank customers and all other stakeholders. He added that bank CEOs are in support of the new move. He said the policy has potentials of turning the economy around and needs to be gotten right at the first instance.

In a bid to fasilitate the smooth take-off of the cash-less policy, the CBN had also reversed its earlier directive to banks to withdraw their offsite Automated Teller Machines (ATMs in airports, hotels and eateries. Citing the new cash limit policy, it said banks can now deploy ATMs outside their premises.

Banks have since deployed ATMs and Point of Service (PoS) terminals in strategic points, such as shopping malls, airports, higher institutions of learning and busy markets to make cash readily available to customers.

The challenges Managing Director, Financial Derivatives Company (FDC) Bismarck Rewane said the greatest challenge facing the policy is infra-

structure, especially availability of power. He said the high penetration rate of mobile phones, will within the next few years, make payments easier, and revolutionise the country’s financial and banking landscape. This will enable banks to innovate and earn new commissions from financial services, and increase their net banking revenue.

The CBN has also accused the Nigeria Customs Service (NCS) of hindering the deployment of PoS terminals in the implementation of the cash-less policy.

The regulator said the NCS is constituting a roadblock to the apex bank’s target of deploying about 40,000 PoS terminals by the end of last year to cater for settlement of transactions, alongside other electronic payment options.

The apex bank said the NCS classified PoS terminals as “cash registers” and so demanded 20 per cent administrative charges on each terminal being imported by the commercial banks and co-ordinated by the CBN instead of the usual five per cent.

It also accused telecommunications companies of sending wrong signals to the public concerning the operations of Mobile Payment Scheme Operators, threatening to withdraw their licences if they fail to comply.

Responding to a mail from The Nation, the CBN admitted that infrastructure inefficiencies, especially power and connectivity remain a challenge but it can be overcome. It said deployment and maintenance of alternate payment channels, and low public aware-

ness of the policy is also being handled.

The regulator said it has been proactive in dealing with the challenges of the policy and has come up with guidelines and solutions to the major issues that could face the policy.

In terms of infrastructure, the apex bank said it has been working with the Nigerian Communications Commission (NCC), as well as the telecom service providers, adding that agreements have been signed with some of these service providers to ensure dedicated communication links for PoS terminals. Also, CBN said it has equally ensured that all PoS terminals must have a minimum of two SIM cards to increase uptime and that a minimum of 24 hours battery life as well as a car charger for all ordered PoS systems are needful.

The CBN noted that infrastructure is not perfect in Nigeria, but creative solutions have been developed to work around the constraints. The apex bank said it had negotiated on behalf of commercial banks with four manufacturers for the supply of PoS terminals. The firms are PAX, Bitel, Ingenico, and Verifone - with discounts and local support arrangements to drastically reduce the cost of acquiring them. A PoS terminal can be purchased from any of these four manufacturers for as low as N45, 000 per terminal. However, according to the CBN, parties are free to purchase PoS ter• Continued on page 28

THE NATION MONDAY, APRIL 2, 2012

28

ISSUES

• CBN Governor, Mallam Sanusi Lamido Sanusi

• GMD Enterprise Bank, Ahmed Kuru

Cash-less : Stakeholders’ wish prevail as charges begin today • Continued from page 27

minals from any manufacturer, in so far as they meet the specifications set in the guidelines.

Concerning the interoperability of the terminals, CBN said it had already issued a circular to break exclusivity of card. Within Nigeria, all cards will be accepted at any terminal. “The apex bank has also licensed Payment Systems Service Providers to deploy, maintain and support PoS terminals. This way, there is less downtime on the terminals. These payment systems service providers also train merchants on how to use the PoS terminals,” the CBN said.

Stakeholders' perspective The Electronic Payment Providers Association of Nigeria (E-PPAN) has stressed the need for the CBN to support the industry by advocating speedy passage of the National Payment Systems Bill in order to create a legal framework for the epayment sector. The Bill according to the association, will also enforce security of transactions through measures such as mandatory enforcement of software certification for all payment services providers and enforce obligatory standardisation of software, technology, pricing, tariffs, payment infrastructure and processing workflow across service providers.

The association, which made these known in a communiqué issued at the end of a round table discussion with the CBN on the challenges of implementation of the initiative, also said the apex bank should increase incentives for merchants and consumers by removing daily transaction limits on pre-paid cards and loading charges for prepaid cards, including support for migration of merchants and consumers to electronic transactions.

Given the overarching role that telecommunications companies (Telcos) are expected to play in advancing mobile payment, the association said CBN should enforce agreements reached with them, as well as set up modalities to liaise with the NCC to compel Telcos to comply with agreed Service-level Agreement for e-transactions.

Furthermore, the association said CBN should enforce other stakeholder commitment by defining clear roles and responsibilities across the workflow/value chain, in addition to demanding accountability of all stakeholders and application of sanctions where neces-

sary.

Executive Secretary and Chief Executive Officer of EPPAN, Mrs Onajite Regha, said the proposal was borne out of the apprehension of consumers regarding e-payment and growing concerns about success of the exercise.

Survey results To allay the concerns, the association commissioned a stakeholder research on the cash-less policy, sampling consumers, merchants and EPPAN members. The survey sought to establish the current status of epayment service delivery to end users in Lagos; identify barriers in the application and acceptance of the Cash-less Nigeria policy and pilot in Lagos as well as solicit views and suggestion on how to make the policy work.

Noting that a barrage of opinions has assailed the cash-less policy and the implementation efforts of regulators and operators, Mrs Regha said the association as key stakeholders in the policy, commissioned an evidence-based research to ascertain the issues and challenges that have emerged from the pilot in Lagos as well as the prospects of a successful implementation. It is also meant to confirm the actual preparedness of all stakeholders in this issue.

“The result of the research showed that all the numerous newspaper adverts on Cash-less Lagos only amounts to eight per cent of awareness for consumers. Also, 48 per cent of respondents in the research have never used their cards in the last six months for any type of shopping, while 81 per cent have never used their cards for online transactions."

She added that key findings from the research showed that about 68 per cent of consumers and 59 per cent of merchants surveyed thought Nigeria was not ready for cash-less economy.

Mrs Regha said 48 per cent out of 58 per cent of consumers who used electronic payments in the last six months, used it for withdrawing cash only. Only 10 per cent, according to her, used it for actual purchase and bill payments.

She said: "The top concerns of all stakeholder groups and E-PPAN members are: need for more awareness and education on how to perform cash-less transactions; overcoming the infrastructural challenges to make the facility widely available and reliable; greater security of the platforms and fear of fraud; making the benefits clear to merchants and incentivising usage; minimising the tariffs and charges, in addition to putting in place a legal framework for industry standards to combat cyber crime."

CBN's response The apex bank said banks have ordered over 100,000 Point of Sales (PoS) terminals and have received about 70,000 to date. Forty-one thousand of the terminals, according to the CBN, were already hooked to the nation's Central Switch.

Lemo said CBN had encouraged banks to invest in the infrastructure, including granting loans to players in the industry.

He noted that the apex bank had set up a Payment System, Policies and Oversight department to monitor systems and processes of operators, adding that it was also in talks with ethical hackers on mechanisms to expose weaknesses in the entire electronic payment ecosystem.

Lemo stressed that CBN had mandated the Nigerian NIBSS and Payment Terminal Service Providers (PTSP) to handle certification, adding that the apex bank would advise them on certification from all card schemes, including, Visa, MasterCard, Interswitch, and etranzact.

Merits Lemo said the cash-less policy will reduce the high usage of cash, moderate the cost of cash management and encourage the use of electronic payment channels.

He said that the charges are not to place limit on cash transactions, but to ensure that customers who make high volume cash transactions bear the associated cost, if they opt

•Summary of Cash-less Policy

to ignore electronic payment channels.

Corporate governance expert, Oladele Solanke, said the interest created by the cash-less policy is an indication of its importance to the economic life of the people.

“From the possibility of ordering and paying for fertiliser by farmers in all remote villages across the country using Global System for Mobile (GSM) communication to the promise of cutting down on the cost of loans to borrowers, the cash-less policy seems to have something for everyone.

“The cash-less policy is expected to de-emphasise the use of cash and focus more on electronic banking products, such as Automated Teller Machines (ATMs), credit cards and other online payment modems,” he said. Solanke said for the policy to succeed, the apex bank must make the needed infrastructure available.

The CBN believes the cash-less scheme will enhance the efficacy of the monetary policy as more economic agents will resort to more use of cheques and e-payments.

Speaking on Cashless economy: The role of Microfinance Banks at a capacity building event organised by the Lagos State Chapter of the National Association of Microfinance Banks (NAMB), David Adelana, Senior Bank Examiner, Other Financial Institutions Supervision Department (OFISD), CBN, said. CBN’s stabilisation measures will become more effective as higher proportions of transactions would be done through cheques and electronic payments.

‘The result of the research showed that all the numerous newspaper adverts on Cash-less Lagos only amounts to eight per cent of awareness for consumers. Also, 48 per cent of respondents in the research have never used their cards in the last six months for any type of shopping, while 81 per cent have never used their cards for online transactions’

Source: Diamond Bank

“Mobile payment revolution is sweeping across the African continent and Nigeria shouldn’t be out of the modern and global trend in enjoying such initiatives by adopting technological practices.

The mobile payment industry will play a huge role in the development of the economy.”

Implementation strategies The CBN has started registering companies providing cash-intransit and currency sorting. In addition to enhancing the efficiency and cost-effectiveness of currency management, the policy is aimed at facilitating the generation of good and clean notes for payment and ensuring product quality, integrity and standardisation. So far, two companies, Bankers Warehouse Limited and Integrated Cash Management Systems Limited, have been registered as CashIn-Transit companies and given approval-in-principle as currency sorting firms.

Public awareness and sensitisation Given this seenario, the apex bank abviously needs to step more public awareness campaign.

Though its Shared Services Department said there was a need to educate people on the policy and it had been engaging different sectors on the policy. Stakeholder interactive engagements and grassroots sensitisation have also been done and are still on-going. So far, 73 associations and groups, as well as 22 market bodies have been engaged.

Mass media campaigns have also commenced on television, radio, newspapers, magazines and the Internet to educate the masses about the policy.

Beyond these, individual banks also need to educate their customers

THE NATION MONDAY, MARCH 26, 2012

29

PERSONAL FINANCE Investor’s Worth

The business as an investment

T

O many large-stake investors, the line between the company as a business and an investment is blurred. Owner-managed businesses are synonymous with investments. Several quoted companies represent both the entrepreneurial commitments and life-long capital investments of several investor-managers.

Fidelis Ayebae is one of the few professionals whose knowledge and skills have led to creation of pools of wealth through which they and other stakeholders derive enduring benefits. In doing this, he has etched his name in gold in the corporate history of Nigeria while building billion-Naira nest eggs for himself.

Ayebae is the founder and chief promote of Fidson Healthcare Plc, one of the five most capitalised quoted healthcare companies. The metamorphosis of Fidson Healthcare from a small private pharmaceutical company to one of the leading publicly traded healthcare companies represents the story of dogged determination, entrepreneurial spirit and long-term commitment to investment and reinvestment by Ayebae. He has since remained the main driver of the company as chief executive and managing director.

With the company's name largely derived from his name, Ayebae also remains the single largest shareholder and beneficiary of the phenomenal growths in the operations of Fidson Healthcare in recent years. According to the register of shareholders of Fidson Healthcare, no any other shareholder holds up to five per cent

of the company except Fidelis Ayebae, who holds about 35 per cent equity stake. His wife Mrs Olufunmilayo Ayebae, also holds about four per cent equity stake, trailing her husband as the director with the second largest shareholding.

The income stream being provided by Ayebae's shareholding in Fidson alone is indicative of his billion-Naira investment portfolio. Between 2007 and 2010, Ayebae received about N364 million as cash dividends.

With a humble beginning, Fidelis Ayebae's prospects showed early in life with clear focus on attainment of good educational foundation.

Ayebae then acquired diverse range of experience in corporate governance having worked in Nigeria International Bank, now Citibank, as assistant general manager, Metalum Limited as project manager and Ayebe Investment Limited as managing director.

Fidson Healthcare, under the management of Ayebae, has grown to become a foremost pharmaceutical company in the West African sub-region and has done Nigeria proud with many pioneering breakthroughs. Besides, Fidson is the second most visible indigenous pharmaceutical company as well as the second highest billing pharmaceutical company in Nigeria.

With three state-of-the art manufacturing facilities in Ota, Ogun State, Nigeria and three companies; namely Fidson Healthcare Plc, Ecomed Pharma Limited and Fidson Products Limited, Fidson Healthcare Group presently employs more than 1000 people and provides returns to

•Fidelis Ayebae

several hundreds of shareholders.

Ayebae is a fellow of Institute of Corporate Affairs Management (FICAM) and member of the Institute of Directors (IoD), Manufacturers Association of Nigeria (MAN), Pharmaceuticals Manufacturers Group of Manufacturers Association of Nigeria (PMGMAN), Nigerian Chamber of Commerce, Industries, Mines and Agriculture (NACCIMA), Nigerian-British Chamber of Commerce, Nigerian-American Chamber of Commerce, Nigerian-Turkey Chamber of Commerce, ACEAN Chamber of Commerce, British-West African Forum and the prestigious Ikeja Business Club.

In recognition of his pathfinding roles for the development of indigenous manufacturing, Ayebae has received many awards from numerous communities and organisations.

For Ayebae, Fidson Healthcare is not only a business but a nest egg that supports current and future aspirations.

Reading, understanding Reading, annual report and accounts (3)

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EYOND scrutinizing annual report and accounts to measure the level of profitability, which is usually the primary concern of most investors, investors need also watch out for the sustainability of the operations of their company. One of the flag points that investors need to consider is financial distress, often linked to a more common term, insolvency. Financial distress is usually the trigger for a chain of events that include other issues such as financial engineering and restructuring, bankruptcy, liquidation, stock crash, takeover and many other consequences. Financial distress is described as a situation where a company' s operating cash flows are not sufficient to meet current financing obligations, thus forcing the company to seek remedies.

The financial state of a company can be looked at in the immediate, medium or long terms by distinguishing between durations of debts and correlative cash flows. The peculiarities of businesses are also considered in determining possible financial state. For instance, companies engaging fast moving consumer goods with huge regular cash inflow can quickly surmount minor liquidity problems while those with irregular unpredictable flows can degenerate into worse problems. Analysts often gauge the propensity of a

By Taofik Salako

company to financial distress through financial leverage analysis.

Financial leverage refers to the proportion of debt to equity of a company. It is commonly held that the higher the debtto-equity ratio, the higher the financial leverage, and the more vulnerable the company is to fluctuation in earnings. This position has held true for many Nigerian companies in recent times and accounted for many financial restructuring and recapitalisation. In many instances, leverage ratios are usually complemented with liquidity ratios to reflect the true state of its financial soundness. Liquidity refers to the degree of correlation between a company's assets and its liabilities.

One way is to open an immediate window of assessment by comparing current assets with current liabilities. The resulting ratio is called current ratio. Current assets can further be undressed by removing less liquid assets such as inventories to determine the 'quickness' and 'certainty' of the liquidity of the company. This undressing is called quick ratio, after the intent of the removal of less liquid assets.

The denoting signs for companies in financial distress are many but usually linked. However, it must be emphasised that the presence of any of the signs may not be sufficient to pinpoint a serious case of financial dis-

tress and the fact that financial distress itself does not constitute the termination of the company. The extent of damage of financial distress depends on the company's approach to management of the problem.

The list of signs associated with financial distress include payment defaults-inability to meet creditors' matured claims, inability to secure funding from banks, dwindling profit and subsequently loss, reduction and absence of cash dividends, assets disposal, scale down of operations or closure of plants, salary cuts and layoffs, resignation of chief executive and other top executives, payment default based litigations, plummeting share price, takeover by receiver manager and various distress resolution moves among others.

Financial distress, no doubt, represents a difficult trying period for any company and as such it behooves investors to carefully monitor for precursors and signs of financial distress, in order to nip the stem in the bud or bail out before the mad rush.

One major cause of financial distress is financial mismatch, such as using proportionally large interest-based short-term funds to finance a long gestation business plan. Shareholders have roles to play in this regard through careful and comprehensive deliberations on the business plans and finances of their companies at their meetings.

Ask a Broker

What is the difference between primary and secondary market?

T

(IPO), public offer, rights issue and bond issue are done on the primary market. The funds so raised from the issue or offer go to the company or institution that floated the issue.

The secondary market plays the complementary role of opening a window of opportunity for investors in primary issues to trade on their investments while giving other investors opportunity to buy into the company. Transactions on the secondary market are usually between the seller and the buyer and the proceeds of such sales revert to the seller. While the

HE capital market generally consists of the primary and secondary market. Both segments of the market are interrelated and the performance of one segment usually influences to large a extent the performance of the other. The primary market, as the name implies, is the entry market for companies and investors. The primary market is where a company or institution that requires initial or additional capital sells its shares or instrument to the investors. As such, all the capital issues of a company including Initial Public Offering

company and its professional advisers determine the price for a primary offer, the price at the secondary market is determined by the market forces- supply and demand. The Securities and Exchange Commission (SEC) oversees primary market issues but where the company or institution plans to list the instrument on the Nigerian Stock Exchange (NSE) - the marketplace for secondary transactions, then NSE must also pre-qualify such issue in line with its listing requirements

Ways and Means

Competitive advantages of mutual funds

T

HERE are some 26 mutual funds quoted on the Nigerian Stock Exchange (NSE). A mutual fund is a type of collective investment scheme that pools funds from many investors and invests such pool in previously agreed investments. Each investor thus becomes a co-owner, otherwise known as unit holder, of the fund. Mutual fund usually has a professional fund manager that oversees the value creation functions of the fund and a trustee that ensures that the underlining agreements setting up the mutual fund are adhered to. Other professional parties include the registrar

that keeps custody of the register of members of the funds.

With several retail investors at the receiving end of the stock market recession, mutual funds appear to be increasingly attractive investment vehicles for retail investors' participation in the stock market.

There are several competitive advantages that drive investors' desires for mutual funds. These include the availability of the service of a professional investment manager, which provides fulltime, expert investment management that several retail investors might not be able to

provide.

Mutual funds allow for diversification into a broad range of securities thus protecting the fund from sectoral or stock-by-stock or sometimes economic shocks. Given the economy of scale, mutual fund tends to incur lower cost, which also reflects on the cost per head on each investor.

Several mutual funds also provide additional services to investors including continuous investment plan, investment information service, estate planning, cross-selling products and personalised financial assistance and supports.

Feedback/Comments: Email: taofad2000@yahoo.co.uk; SMS only: 080-2833-0861

30

THE NATION MONDAY, APRIL 2, 2012

MONEY LINK

Police probes N7b debts in microfinance banks

T

HE Financial Malpractice In vestigation Unit (FMIU) of the Nigerian Police is probing the N7 billion unpaid loans in 103 microfinance banks (MfBs).

Managing Director, Nigerian Deposit Insurance Corporation (NDIC), Umaru Ibrahim, who disclosed this at the weekend, said there is no way the country will have a virile banking system if the perpetrators of financial crimes are not brought to book.

He said NDIC will this year; inspect operations of 250 MfBs to ensure they are operating within international best standards.

Ibrahim said NDIC and FMIU meets regularly to track financial

By Collins Nweze

crime cases that needed to be investigated. He said the corporation has paid N3 billion, out of the N5 billion insured deposit to MfB depositors.

The Commissioner of Police, Special Fraud Unit (SFU), FMIU, Tunde Ogunsakin said the force is ready to commence interrogation of the bank chief executives, directors, employees and other principal officers of the banks involved in the loans.

The SFU, he explained, was set up by government as multidisciplinary firm to investigate and prosecute serious fi-

ing and ready to investigate all cases brought to it by the corporation. “The unit is committed to performing its work as assigned by the NDIC , however, the need for training /retraining of its workforce as regards to basic accounting knowledge cannot be overemphasized,” he said.

According to him, the idea is to make such personnel become competent in this age of information technology and globalisation.

nancial fraud and corruption.

“Our aim is to protect the Nigerian society from sensitive criminal deception, which could threaten public confidence in the financial system,” he said.

He said the unit was created to handle cases reported by NDIC against people responsible for the failure of some banks and financial institutions in the country in an effort to enforce the provisions of the banking and financial regulation. He said the body is also committed to stopping fraud before it happens so as to reduce the impact of losses on financial crime.

Ogunsakin said the SFU is will-

E

tions in that area. The new design provides for an e-banking gallery, ATM, Internet banking facilities as a distinct area separate from the cash area for every branch.

The bank’s Executive Director, Service Bank, Aminu Ismail said, the facility was designed to enable the bank remain in the forefront of driving the cash-less programme as a way of satisfying the bank’s numerous customers at all times.

He said the bank opted for such state-of-the-art design and the construction of same across its numerous branches nationwide because the bank wants to treat its valued customers as first class citizens among all bank customers in the country. Ismail added that the development is part of Enterprise Bank’s quest for improved customer service, which remains the core of the bank’s vision that says: to be the preferred bank for value creation.

With the cash-less policy fast

F

IRSTBANK has unveiled FirstPay, a web-based pay ment platform designed to allow customers directly give payment instructions from their offices anytime in a very secure and efficient manner.

In a statement, the bank said with the product, payments and authorisations can be done regardless of location, as long as there is internet connectivity.

“FirstPay enables corporate organisations initiate and conclude payments without relying on the branch to process on their behalf, efficient and timely payment of beneficiaries especially time critical payments, and approval of payments can be done from anywhere in the world regardless of the location of the authorisers,” the bank said.

According to the bank, the solution is most suitable for clients who carry out bulk payments against their accounts in form of Salary Payment, Vendor/Supplier Payment, eDividend, Pensions, among others, regardless of account bank. It also provides a platform for corporate organisations to execute their pay-

gaining acceptance and banks working very hard to adjust to the new realities of the banking industry, the Executive Director stated that customers of Enterprise Bank have every reason to be happy for associating with the bank because the lender has taken the lead and is fully integrated in promoting the cash-less process in a unique style.

Only recently, the bank launched a customer care hotline that provides continual access to customers; strengthened its ATM operations, Point of Sales (PoS) terminals, Mobile and Internet Banking channels across its numerous branches nationwide just to ensure the best of service for both customers and intending ones.

The bank also added that innovation has remained at the crux of every action of the bank since it came into being on August 5, 2011.

FGN BONDS Amount N

Rate %

M/Date

3-Year 5-Year 5-Year

35m 35m 35m

11.039 12.23 13.19

19-05-2014 18-05-2016 19-05-2016

WHOLESALE DUTCH AUCTION SYSTEM Amount Amount Offered ($) Demanded ($) 150m 150m 138m 138m

MANAGED FUNDS Initial Current Quotation Price Market N8250.00 5495.33 N1000.00 N552.20

Price Loss 2754.67 447.80

7.9-10% 10-11%

PRIMARY MARKET AUCTION (T-BILLS) Tenor 91-Day 182-Day 1-Year

Amount 30m 46.7m 50m

Rate % 10.96 9.62 12.34

Date 28-04-2011 “ 14-04-2011

GAINERS AS AT 30-3-12 SYMBOL

O/PRICE

GUINNESS OKOMUOIL NCR STERLNBANK BAGCO MAYBAKER REDSTAREX FIDSON CUSTODYINS CONTINSURE

228.42 26.68 13.04 1.05 1.95 2.18 2.29 0.92 1.44 0.99

113m

C/PRICE

CHANGE

239.84 28.01 13.69 1.10 2.04 2.28 2.39 0.96 1.50 1.03

11.42 1.33 0.65 0.05 0.09 0.10 0.10 0.04 0.06 0.04

SYMBOL

O/PRICE

0.60 439.26 147.04 13.30 2.85 4.70 1.07 4.66 0.89 3.44

C/PRICE

0.57 417.30 139.69 12.64 2.71 4.47 1.02 4.45 0.85 3.29

NGN USD NGN GBP NGN EUR NIGERIA INTER BANK (S/N) (S/N) Bureau de Change (S/N) Parallel Market

Current Before

29-2-12 27-2-12

113m

155.7

22-2-12

C u r r e n t CUV Start After %

147.6000 239.4810 212.4997

149.7100 244.0123 207.9023

150.7100 245.6422 209.2910

-2.11 -2.57 -1.51

149.7450

154.0000

154.3000

-3.04

152.0000

153.0000

155.5000

-2.30

153.0000

154.0000

156.0000

-1.96

DISCOUNT WINDOW Feb. ’11

July ’11

Dec ’11

MPR

6.50%

6.50%

12%

Standing Lending Rate ,, Deposit Rate ,, Liquidity Ratio Cash Return Rate Inflation Rate

8.50% 4.50% 25.00% 1.00% 12.10%

8.50% 4.50% 25.00% 2.00% 12.10%

9.50% 5.50% 30.00% 2.00% 12.6%

NIBOR Tenor 7 Days 30 Days 60 Days 150 Days

NSE CAP Index

27-10-11 N6.5236tr 20,607.37

Date

Rate (Previous) 4 Mar, 2012 9.0417 9.6667 11.2917 12.1250

Rate (Currency) 6, Mar, 2012 10.17% 11.46% 11.96% 12.54%

28-10-11 N6.617tr 20,903.16

% Change -1.44% -1.44%

MEMORANDUM QUOTATIONS Name

CHANGE

0.03 21.96 7.35 0.66 0.14 0.23 0.05 0.21 0.04 0.15

Exchange Rate (N) 155.8 155.8

CAPITAL MARKET INDEX Year Start Offer

LOSERS AS AT 30-3-12

PRESTIGE NESTLE TOTAL CADBURY UBN ETRANZACT LIVESTOCK DANGFLOUR PAINTCOM ETERNAOIL

113m

Amount Sold ($) 150m 138m

EXHANGE RATE 6-03-12 Currency

INTERBANK RATES OBB Rate Call Rate

ment instructions without first sending a physical instruction to the bank and waiting for the bank to effect the instructions.

It said the product allows uploading the instruction in an approved file format after which the transaction authoriser is notified by e-mail and/or SMS with the payment authorisation code. The code enables the authoriser approve payments, with corresponding debit and credit entries passed automatically.

“One of the unique features of the product is that it is available to set up clients through a browser and does not require any special infrastructure or additional investment on the part of the client other than an internet connection,” the bank said.

Besides, FirstPay allows customers to perform a wide range of functions including checking balances, viewing consolidated bank account balances across banks, and the echeque platform. “The e-cheque platform enables users to issue and upload e-cheques for vendor/supplier payments, register/upload beneficiaries, issue standing orders, and purchase e-cheque book,” it added.

DATA BANK

Tenor

NIDF NESF

•Acting IGP, Mohammed Abubakar

FirstBank floats FirstPay

Enterprise Bank unveils model branch NTERPRISE Bank Limited has unveiled a prototype branch concept with an ultra-modern Automated Teller Machine (ATM) gallery, at its corporate head office in Victoria Island, Lagos. This is part of the bank’s efforts to boost its brand equity and improve customer service delivery especially in this era of cash-less banking.

In a statement, the bank said the new branch concept, which exhibits elaborate architectural aesthetic expression, is one of the many strategic management plans to firmly establish the Enterprise Bank brand on the financial landscape in the country as well as provide comprehensive customer satisfaction to all stakeholders.

According to the bank, the concept of the new branch model, which will be replicated across the country, recognises the unique nature of each branch location thereby accommodating the design of a befitting structure that will meet all customer expecta-

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Offer Price

Bid Price

ARM AGGRESSIVE 9.17 KAKAWA GUARANTEED 1.00 STANBIC IBTC GUARANTE 1,177.37 AFRINVEST W.A. EQUITY FUND 99.76 THE LOTUS CAPITAL HALAL 0.75 BGL SAPPHIRE FUND 1.08 BGL NUBIAN FUND 0.89 NIGERIA INTERNATIONAL DEB. 1,666.70 PARAMOUNT EQUITY FUND 8.13 CONTINENTAL UNIT TRUST 1.39 CENTRE-POINT UNIT TRUST 1.87 STANBIC IBTC NIG EQUITY 7,283.10 THE DISCOVERY FUND 193.00 FIDELITY NIGFUND 1.67 • ARM AGGRESSIVE • KAKAWA GUARANTEED • STANBIC IBTC GUARANTE • AFRINVEST W.A. EQUITY FUND

9.08 1.00 1,160.06 99.49 0.72 1.08 0.88 1,663.73 7.74 1.33 1.80 7,090.03 191.08 1.62

Movement

OPEN BUY BACK

Bank P/Court

Previous 04 July, 2011

Current 07, Aug, 2011

8.5000 8.0833

8.5000 8.0833

Movement

THE NATION MONDAY, APRIL 2, 2012

31

MONEY MARKET REPORT

CBN mops excess cash, floats TBs, bonds T

HE Central Bank and Debt Management Office (DMO) last week considered issuing treasury bills (TBs) and bonds as part of monetary control measures to help banks manage their liquidity and mop excess cash in the economy.

The apex bank said it plans to raise N917.76 billion from TBs in the second quarter of the year.

The instrument will come in trenches of N182.12 billion in 91-, 182- and 364-day paper in March; N324.25 billion in April, N273.37 billion in May and N137.97 billion in June. The demand for Nigeria’s local debt since the beginning of the year has been high due to attractive yields.

The liquidity control intensified after the Federal Account Allocation Committee (FAAC) met and disbursed over N900 billion to the three tiers of government two weeks ago.

This triggered a a surge in liquidity in the money market as the FAAC hit the system.

Analysts at Afrinvest West Africa Limited said it expects a moderate upward adjustment this week due to debits for Wholesale Dutch Auction System (WDAS), Open Market Operation (OMO) and bond auctions.

The DMO last month, sought to raise N50 billion and attracted bids totaling N131 billion from investors.

In addition, it raised a further N50 billion outside the auction on a noncompetitive basis. Analysts predict a pick-up in inflation, now at 11.9 per cent, from April before a steady fall later in the year.

Gregory Kronsten, Macro & Fixed Income, FBN Capital , said the Federal Government deficit is about N1 trillion. He said the budget has yet to be passed, so there is no firm figure yet. The deficit is mostly financed by the sale of bonds by the DMO. He said the CBN sells TBs mostly to manage liquidity in the market and also to cover the deficit.

“Currently, government has accelerated these sales because it wants to tighten liquidity in order to take banks’ cash out of the market,” he said in an emailed statement.

Dollar interbank The naira weakened against the dollar on the interbank market on Wednesday, as strong demand by fuel importers outweighed dollar inflows from energy companies, traders said. The local currency however, managed a slight gain at the bi-weekly foreign exchange auction, closed at 156.01 to the dollar from 156.06 at the previous auction on Monday, netting 0.5 Kobo gain.

At the interbank, the naira traded at N157.90 to the dollar, weaker than the N157.70 to the dollar on Tuesday, losing 20 Kobo despite inflows from international oil companies (IOCs). “The level of dollar inflows into the market from oil companies last week were not enough to match strong demand from fuel importers, and this caused the naira to depreciate,” one dealer said.

Traders said the naira is seen trading flat or strengthening a little in the coming days because of expectations that flows from offshore investors participating in the bond and treasury bill auctions could provide some support for the local currency.

Last Friday, the inter-bank opened at N157.70/157.80 (Bid and Offer rates respectively) to a dollar.

The day’s low was N157.60/157.70 to a dollar, the day’s high was N157.75/158.85 to a dollar, and closing rate was N157.62/157.72 to a dollar. Based on current rates, the spread between inter-bank offered rate and CBN effective rate is at N0.15 kobo.

WDAS/Reserves At the Wholesale Dutch Auction

By Collins Nweze

Marginal rates at FGN bond auctions (%)

System (WDAS), two auctions were carried out last week in which $300 million was offered while $278,750 was sold at marginal rate of N156.06/ N156.01 to a dollar on March 26 and 26 respectively.

The foreign reserves stood at $35.5 billion as at March 28 . The CBN Governor, Sanusi Lamido Sanusi said during a rate decision penultimate week that the country needed to build up foreign exchange reserves to cope better with external shocks. The country relies on crude exports for more than 95 per cent of its foreign exchange earnings and investors watch reserve data closely to gauge defences the economy has against a potential dip in oil prices.

Cash-less The CBN granted waivers on penalties to embassies, diplomatic missions, multilateral and aid donor agencies in the country from penalties and charges on cash withdrawal and deposits with regards the cashless project.

A circular addressed to all banks, cash-in-transit companies, payment system service providers, switches, card acquirers, issuers and processors as well as the general public cleared the issue.

The circular tagged: ‘Industry Policy on Retail Cash Collection and Lodgment as it Affects Specialised International Institutions’ was signed by CBN Acting Director, Banking and Payment System Unit, Gaius Emokpae. It explained that Nigeria is signatory to several treaties, which exempt these institutions from all fees and charges from host country. He said that sovereign states do not impose financial penalties on other states.

e-frauds The Committee of Chief Inspectors of Banks in Nigeria (CCIBN) said it plans to tackle e-Payment frauds in the country. The committee has identified purchase fraud, identity theft, phishing, carding and skimming as potential threats to the successful implementation of the cash-less economy initiative of the CBN. A statement from CCIBN said the cash-less initiative, which promotes the use of e-payment channels such as Automated Teller Machines, Point of Sale (PoS) Terminals, Online Web Portals, Mobile Money and Electronic Funds Transfers, among others is targeted at reducing volume of cash used in the country.

Pension The Nation also reported that the Federal Government said it would increase limits on pension funds’ investment in the stock market to half of their portfolio, a move that could boost its share index. The pension funds were worth around $13 bil-

•Sources: DMO; FBN Capital Research

•Nigeria Interbank T-Bills True Yield Fixing (NITTY Yield Curve)

lion in 2010 and have been growing at a rate of 30 per cent per year.

Its equity market struggled to sustain a recovery after a more than 60 per cent fall in 2008, which led to a mass exodus of domestic investors, including pension funds. Under the regulatory changes being proposed by the National Pension Commission (NPC), they will also be allowed to build a portfolio compliant with Islamic law, in a country with one of the highest Muslim populations in the world.

CBN creates new units The Board of Central Bank of Nigeria (CBN) last week approved the creation of two new units. They are Corporate Communications and Consumer and Financial Protection Departments.

The regulator said the step forms part of the internal reforms to reposition the apex bank to meet the challenges of the on-going banking reforms. The CBN now has 27 departments spread under five directorates headed by the Governor and his four deputies.

The apex bank said Corporate Communications Department is to

assume the mandate and functions of the erstwhile Corporate Communications Division of the Governors’ Department and is headed

by Mr. Ugochukwu Okoroafor. He will take over from the current spokesman Mr. Mohammed M. Abdullahi who moves to Procurement and Support Services Department after 10 years in the Governors’ Department.

The Consumer and Financial Protection Department created out of the present Financial Policy and Regulation Department is to protect the interest of consumers with a view to promoting consumer confidence in the banking industry. The unit will be headed by and Mallam U. F. Shehu.

Bank to bank report Shares in Stanbic IBTC Bank, a unit of South Africa’s Standard Bank, fell 4.9 per cent on Thursday, after the bank posted a 16.89 per cent drop in pre-tax profit to N11.24 billion for 2011 full year.

Gross earnings grew 18.83 per cent to N67.43 billion during the period, it said, in a report through the Nigerian Stock Exchange

‘The liquidity control intensified after the Federal Account Allocation Committee (FAAC) met and disbursed over N900 billion to the three tiers of government two weeks ago. This triggered a a surge in liquidity in the money market as the FAAC hit the system. Analysts at Afrinvest West Africa Limited said it expects a moderate upward adjustment this week due to debits for Wholesale Dutch Auction System (WDAS), Open Market Operation (OMO) and bond auctions’

(NSE). Its shares fell to N6.8. Also, Pan-African Ecobank Transnational said on Wednesday its 2011 net profits hit $206.8 million, up 57 per cent from $131.8 million in 2010.

Union Bank of Nigeria Plc and FinBank Plc said they deployed their electronic banking products serving their customers at the ongoing Enugu International Trade Fair.

First Bank of Nigeria Plc said it is giving Small and Medium Scale Enterprises (SMEs) opportunity to grow their businesses. In a statement, the bank said although the sector has potentials to employ large portion of the population, lack of support from banks has derailed the sector’s vision.

Skye Bank Plc last week, joined the Moneygram International family as it launched its Moneygram money transfer service with a pledge to promote the franchise and work towards its emergence as the preferred money transfer company in the country.

World Bank Presidency African Union finance leaders on last week unanimously endorsed Nigerian Finance Minister Ngozi Okonjo-Iweala’s candidacy to lead the World Bank. The union also urged an open merit-based process to select the next head of the global financial institution.

“Dr. Okonjo-Iweala’s impeccable credentials, including depth and breadth of knowledge, rich and varied experience, make her eminently qualified and the best candidate for the post of World Bank president,” the Africa Union had said in a statement. The endorsement came following a meeting in Addis Ababa of finance, planning and development ministers from across Africa led by Ethiopian Prime Minister Meles Zenawi.

32

THE NATION MONDAY, APRIL 2, 2012

THE CEO Corruption is hampering the economic development of the country. What is the solution? In this interview with TOBA AGBOOLA, the President of the Lagos Chamber of Commerce and Industry (LCCI), Mr Goodie Ibru, advocates less government in business to tackle the menace. Excerpts:

‘High returns attract investors to Nigeria’’ W

E are already at the end of the first quarter. What is your expectation from the 2012 budget?

We are concerned about the late passage of the budget. The country is crying for capital project and we don’t see this happening.

Without proper financing of the capital projects, there will not be meaningful economic development.

We are concerned that the recurrent expenditure is on the high side. The expectation of a major restructuring of the budget turned out to be misplaced because it did not happen. The numbers did not show a significant paradigm shift.

What was presented was only a marginal reduction in recurrent budget, which was reduced from 74.4 per cent to 72 per cent of the total budget compared to the 2011 budget, a mere 2.4 per cent reduction. This is not a significant reduction.

In an economy that is in dire need of infrastructure, committing 72 per cent of the budget to recurrent would not promote the cause of economic transformation. And going by the record of budget implementation, performance of recurrent budget will be much more than that of capital. Therefore, the portion of the budget that would go to capital spending may even be less than the proposed 28 per cent.

What is your take on debt servicing and other sectoral allocation?

We should move towards reducing the burden of debt servicing. If the government should continue to borrow, that means there will not be enough fund to finance the private sector. The rising cost of debt service is of grave concern.

In the budget, N560 billion was earmarked for debt service. This is high when viewed against the backdrop of the other national priorities. The opportunity cost of committing such huge sums to service debts is substantial. We agree with President Jonathan that there is a need to check the soaring debt profile of the country, especially the domestic debt. But practical steps should be taken to stem the tide. Rising debt profile also results in crowding out of the private sector in the credit market.

Current experience is that the banks would rather invest funds in treasury bills and bonds, than lend to entrepreneurs, especially the Small and Medium-Scale Enterprises.

This has been a major constraint to credit access by entrepreneurs. Clearly, the current debt profile is not sustainable.

The allocation of N161.4 billion to the power sector, which is a paltry 3.4 per cent of the total expenditure, is inadequate. This allocation contrasts with that of security which is N921.9 billion or 19.4 per cent of the total expenditure. It is evident that the government is no longer inclined to invest in hard infrastructure in the power sector.

This is a major shortcoming of the budget.

The appalling state of the power sector is the biggest challenge facing the economy today.

There cannot be any transformation without a dramatic improvement in the power supply situation in the country. While it may

• Mr Ibru

be impossible for the government to do this alone, it would also be impractical for the private sector to do it alone. Public investment has to complement private investment in the provision of this critical infrastructure.

There is a risk in leaving the fortunes of the power sector entirely to the optimism of private sector investment. We need to be cautious in our optimism. It would be a major error of judgment to think that the experience of the telecoms sector would be readily replicated in the power sector. The risks, challenges and complexities of investment in these two sectors, are considerably different.

With the removal of subsidy, do you see

things working, especially now that the government has introduced some palliatives?

We, at LCCI, don’t belive in the subsidy.

This is because it will distort the economy.

Already, entrepreneurs are complaining that the cost of doing business is high. Inflation is rising. Corruption is very high, most especially in the oil and gas sector.

That Nigeria imports petrol, yet it produces crude is a major challenge. We produce raw crude for export. After being refined outside the country, the product is brought back into the country at an exorbitant price. This brings about the whole issue of subsidy The solution is to start adding value to the commodity. This will come by revamping our refineries. That is the ultimate solution.

‘We, at LCCI, don’t belive in the subsidy. This is because it will distort the economy. Already, entrepreneurs are complaining that the cost of doing business is high’

But meanwhile, there must be a starting point, which brings about the issue of subsidy input and withdrawal.

The dimensions and impacts of the recent policy of full deregulation of the downstream oil sector on the economy and the citizenry’s future are well appreciated, especially the fuel subsidy removal. But there is the need to appreciate the fact that there are some attendant adverse consequences from this.

For instance, the fresh inflationary pressure resulting from sharp increases in transportation cost, the devastating impact on the psyche of the common people (as the implementation of the policy poses a serious risk to their survival) and the sharp increases in operating costs of small enterprises (many of which rely on generators powered by petrol) are some of the notable challenges.

However, if well implemented, it is expected that the policy will benefit the economy and the citizens, especially in the medium to long term.

Don’t you think the insecurity will cause a major setback to the economy, like Boko • Continued on page 33

33

THE NATION MONDAY, APRIL 2, 2012

THE CEO •Continued from page 32

‘High returns attract investors to Nigeria’ Haram, will it not discourage foreign investors?

Well, there are security challenges in other countries and Nigeria is not an exception.

There is risk everywhere and if you don’t take the risk, you will not achieve anything.

In spite of this risk, Nigeria is still an attractive place to invest because of the high returns. Boko Haram or not, if investors see that there is high returns, they will continue to invest in the country.

Of course, there is no doubting the fact that investors will take this into consideration in their plans. The earlier we are able to tackle and put the menace behind us, the better for us as a nation and for our investment.

Instead of attracting more, a hostile, lifethreatening investment environment can only repel investors, notwithstanding the high level of prospective profits on investments.

Currently, the losses to security challenge are huge. we need to stop these.

What is the solution?

The government should try and find out all factors that may have been causing the disaffection. Most of the people involved in the bombings, and even the victims, are Nigerians. It is not out of place to address the agitations of the various nationalities, with a view to entrenching justice and addressing perceived injustices.

Government needs to improve and strengthen its information gathering mechanisms. This is a sure way to achieving effective security.

Some reports point to the possibility of a rise in the unemployment rate. Do you think the 2012 budget can curtail this development?

With respect to the issue of the budget and unemployment, you will understand that unemployment has to do with a bigger issue than the budget. It is about creating the right environment for small businesses to be able to generate wealth; it is about putting the right policies in place; it is about enhancing the productive capacity of the private sector, particularly small businesses.

Once we are able to achieve that, then we will be on our way to tackling the problem of unemployment. To some extent, the budget has to do with it, to the extent that it is the budget that determines your expenditure on infrastructure, which is a very critical component; it determines expenditure on security, which is also another critical component. These two are critical, but what is also important in the unemployment situation is to create the environment for small businesses to be able to create jobs.

Once you have policies in place that will encourage the private sector operators, both within and outside the country, to bring in their capital into this economy, then we have taken a major step in tackling unemployment.

The government has said the deregulation of the downstream oil sector will improve the economy by creating investment opportunities. How true is this?

The deregulation of the oil sector has a very big prospect of creating a lot of jobs. This is because if it is well implemented, we are going to see a high level of investment in the downstream oil sector of our economy.

We are going to see some petrochemical industries, plastic industries and chemical industries, and lots more coming in as a result of a proper deregulation regime in the downstream oil sector.

This will be of enormous benefit to us as a nation, as thousands, if not millions, will get jobs as a result of the development.

However, this will only happen when the policy is implemented well by our leaders as they have promised. We know that the deregulation of the downstream oil sector is important, but Nigerians are afraid of being taken for granted again by our leaders: that was what warranted the protests against the withdrawal of subsidy on petrol.

Is Nigeria’s business environment ready for investors and suitable for business operations, especially in a way that unemploy-

• Mr Ibru

‘We have problems with credit, particularly for small businesses. They can’t easily access credit.

Quite a number of small and micro businesses have very good ideas as to how they can expand their operations and create more jobs; but they have challenges with access to credits’

• Mr Ibru

ment would be tackled?

No. There is virtually not much progress on the part of the government towards creating the right environment for businesses to thrive yet.

This is because one of the most critical elements of the enabling environment is power.

Unfortunately, we still have a lot of issues with the power sector.

Diesel sells for between N160 and N165.

Therefore, for industries, it’s been very difficult to survive and sustain their operations.

We still have a security situation, which in itself can discourage investments, particularly foreign investments. Regrettably, it is clear that security is deteriorating in the country. This is not going to help invest-

ments and it is not going to help job creation.

We have problems with credit, particularly for small businesses. They can’t easily access credit. Quite a number of small and micro businesses have very good ideas as to how they can expand their operations and create more jobs; but they have challenges with access to credits.

Some of them cannot access credit from the normal commercial banks. Many have to resort to finance companies or microfinance banks, where they charge them as high as 10 per cent per month, and in a year, you realise that you are talking about rates as high as 120 per cent. That is incredible and outrageous. So, with all these con-

straints in place, it is very difficult to create jobs and we cannot say that we are making progress.

What is the way out?

Definitely, there has to be engagements along these lines because these are critical to making the economy move forward.

There has to be engagements.

Again, we have to tackle the government on the structure of the budget itself. The budget has to be structured in a way that there is a bigger investment component than consumption component. That is a major problem with the budgets that they have passed over the years.

So, the problem we have here is not something little, but there are bigger issues that have accumulated to form the poverty problem that we have in this country today.

Our government really needs to devise means to handle these problems, one at a time; so that gradually, we can together see how we move the economy forward.

How about corruption?

In fact, it is the biggest challenge facing the country. But, there is solution if the government is sincere and ready to tackle it. You cannot eradicate corruption but you can bring it to a tolerable level. The best way to tackle it is to start from the top. That is, leadership by example. If our leaders can be transparent, followers will follow suit. That is the starting point.

The second point is that when people are caught, they should be dealt with. The government should not sweep it under the carpet. This will serve as a lesson to others and they will think twice.

Also, the government should be less visible in the economic activities. That is, the government should leave the running of the economic activities in the hands of the private sector. This will stop some government officials from taking the advantage and siphon the country’s money. The less the government involvement in the running of the economy, the better. This will reduce corruption.

Are banks playing their roles in building the real sector and what is your view on the CBN intervention funds?

We all know that banks are doing business and they will want to maximise their profit.

The CBN is a regulatory body. It acts as an umpire between the banks and the private sector. The intervention fund is good, but there are some parts of the economy that needs more support. For instance, the Small and Medium Enterprises (SMEs) sector, the agricultural sector.

The agric sector is more of it. It provides lot of things. It’s one of the providers of labour. For instance, It can be the base for the agro-allied industry.

What is the feedback from your members on the intervention funds. Are they able to access it?

On the SMEs , banks are not enthusiastic to lend money to the operators. Although some people have access it, we want the government to do more on this.

In spite of all the challenges, what advice do you have for the government?

My advice is that government should invest heavily on the infrastructure. Without it, you cannot make meaningful economic growth. Top on the list is power.

Besides, it will be difficult to win new investment, going by the current level of infrastructure decay and the government’s apparent lack of commitment to infrastructure development, especially as underscored by the paltry allocation of funds to capital projects. As we can see from the budget, inadequate funding will characterise capital projects, and subsequently, infrastructure development.

Also, good transportation system is important. Some of our roads are bad. Government should provide rail system which will enhance the movement of goods and service and the people. They should deal with corruption. No investor will want to invest in a corrupt environment and no nation will progress without meaningful investment.

That is, in a country where there heavy corruption, foreign investors will be scare away.

As the new President of the chamber, what are your plans or vision for the chamber and how do you intend to actualise these?

As you all know that LCCI is the foremost chamber in the country, my plan is to sustain the leadership position. We are going to empower the SMEs’ sector because it is an important sector of the economy and the engine of any nation. We are going to form strategic alliance with other organisations for achieving a common growth. However, our primary role is advocacy and we are going to intensify on this.

THE NATION MONDAY, APRIL 2, 2012

34

EQUITIES NIGERIAN STOCK EXCHANGE DAILY SUMMARY AS AT 30-3-12

Stock market closes first quarter on negative

T

HE Nigerian stock market closed first quarter with a negative year-to-date return of 0.38 per cent as declines in share prices of highly capitalised stocks overwhelmed the market situation.

The benchmark index at the Nigerian Stock Exchange (NSE), the All Share Index (ASI)- closed the quarter at 20,652.47 points as against its 2012’s index on board of 20,730.63 points, representing a drop of 0.38 per cent.

Aggregate market capitalisation of all equities stood at N6.550 trillion compared with its year’s opening value of N6.533 trillion, a slight increase of 0.26 per cent, which was attributed to new listings during the period.

Turnover at the stock market last week stood at 1.443 billion shares worth N11.53

By Taofik Salako and Tonia Osundolire

billion in 18,849 deals. The financial services sector accounted for 1.13 billion shares valued at N7.03 billion traded in 10,896 deals.

The consumer goods sector followed with for 74.34 million shares valued at N2.9 billion traded in 3,324 deals.

Banking subsector was the most active during the week with 925.55 million shares worth N6.9 billion exchanged by investors in 10,340 deals. Volume in the banking subsector was largely driven by activities in the shares of Zenith Bank Plc, Diamond Bank Plc, Guaranty Trust Bank Plc and UBA Plc. Trading in the shares of the four banks accounted for 602.4 million shares, repre-

senting 65.1 per cent, 53.5 per cent and 41.75 per cent of the turnover recorded by the subsector, sector and total turnover for the week, respectively.

The Insurance subsector, boosted by activities in the shares of Continental Re-Insurance Plc and Goldlink Insurance Plc, followed on the week’s activity chart with a subsector turnover of 200.4 million shares valued at N141.711 million traded in 554 deals.

The pricing trend was overtly bearish as the ASI depreciated by 2.6 per cent to close the week at 20,652.47 while market capitalisation declined to N6.55 trillion.

Okomu Oil Palm Plc led 24 other gainers with a gain of N3.81 to close at N28.01 per share. Chemical and Allied Products Plc followed with a gain of N2.52 to close at N18.52 per share.

On the downside, Nestle Nigeria Plc led the 39-stock losers’ list with a loss of N45.07 to close at N417.30 per share. Total Nigeria Plc followed with a loss of N23.22 to close at N139.69 per share.

NIGERIAN STOCK EXCHANGE DAILY SUMMARY AS AT 30-3-12

35

THE NATION MONDAY, APRIL 2, 2012

EQUITIES WATCH

Email: taofad2000@yahoo.co.uk

Transcorp: Still searching for value

•CEO, Transcorp, Obinna Ufudo

Traumatised over the past six years, investors in Transcorp have lost more than N1 billion within three months. TAOFIK SALAKO tracks the undercurrents that kept the high-sounding conglomerate around its nominal value

T

HE Nigerian stock market closed the first quarter almost flat with a yearto-date negative return of 0.38 per cent. This implies that an average portfolio performance on the Nigerian Stock Exchange (NSE) witnessed marginal depreciation during the period. But for portfolios with Transcorp as the determining stock, the period was more of continuation of the losing streak. Transcorp recorded a negative year-to-date return of 8.77 per cent, implying a loss of N1.3 billion within the three months ended March 31, 2012. At 57 kobo per share, Transcorp had opened this year with a market capitalisation of N14.71 billion but it ended the quarter with market value of N13.42 billion at 52 kobo per share, around its lowest value per share of 50 kobo.

Transcorp has so far this year hovered between a high of 63 kobo and low of 50 kobo. Transcorp's shares carry a nominal value of 50 kobo and as such, the stock technically has largely held no value to investors. Nominal value, otherwise known as par value, refers to the face value or ordinary value of a security.

Botched hopes For most non-insider investors in Transcorp, it has been a long waiting for

any form of return or recuperation-cash dividend, bonus share or capital appreciation. Incorporated in 2004, Transcorp was touted as the next frontier of African investment and Nigeria's investment vehicle in the global economy.

Its vision was to become the largest and most successful Africa-based conglomerate while the mission was to drive Africa's integration into the global economy by becoming a Nigerian-based multi-national conglomerate with between $5 billion and $10 billion annual revenue and market capitalisation of between $30 billion and $60 billion within five to seven years. As a conglomerate, Transcorp's interests span agriculture, energy, real estate, hospitality and trade and commerce. All these were woven around enticing returns to shareholders.

More than five years after it raised several billions of naira from investors with a promise to be the pride of shareholders, Transcorp has still yet to find neither the fundamental stability nor the technical appreciation to deliver any return. After a railroaded application and waiver that exempted Transcorp from the required minimum operational years and audited accounts, the conglomerate was listed in November 2006. The share price leapt from a low of N6 per share to close the year at a high of N9.71. However, few months after the acclaimed huge investors' appetite, the stock lost more than 68 per cent of its market value. Transcorp closed 2007 at N3.14 per share, seven kobo above its lowest market consideration of N3.07 during the period.

Thus, rather than the high hopes of a global multinational return, Transcorp returned full-year loss of 67.7 per cent to shareholders in its first full year on the stock market.

By the time the entire capital market caught the cold from global financial and economic crises and domestic assets bubble in 2008, Transcorp had stripped to its

nominal value. In 2010, the conglomerate spiraled from a high of 57 kobo to close at a low of 50 kobo. In 2011, Transcorp traded within a range of a high of N1.82 and a low of 50 kobo and subsequently closed at 57 kobo per share. It has since remained around its lowest value and nominal value.

Weak fundamentals With its 25.81 billion ordinary shares on the NSE-the largest by any non-financial stock, Transcorp's performance on the secondary market mirrored its historic false start and continuing failure to convert the much-touted prime assets into fundamental values that could drive its 26 billion shares.

Transcorp had posted a loss of N9.1 billion within the eight-month period ended December 2006. In 2007, loss after tax stood at N8.93 billion while investors contended with net loss of N6.70 billion in 2008. It broke the cycle in 2009 with a net profit of N1.2 billion.

Recent financial results however, appeared to indicate a recovery in business operations. Interim report for the third quarter ended September 31, 2011 showed a turnover of N1.89 billion as against N1.72 billion in comparable period of 2010. Pre and post tax profits improved from N613.6 million to N922.78 million. But not many investors were impressed that a company with shareholders' funds of N15.32 billion only posted just 12 per cent of that amount as turnover. Even where the company decides to make a new turn and declare dividend in the immediate future, shareholders could only expect less than half a kobo.

A new Transcorp?

Management of the company said the 2011 third quarter report was an indication of early success of the turnaround of the

conglomerate's new management under Mr. Obinna Ufudo. According to the company, the results reflected various value-driven cost optimisation initiatives and rational refocusing of the Group's business portfolio.

Transcorp has particularly witnessed many activities in recent period. Last month, it commissioned its agribusiness subsidiary-Teragro Limited's orange and mango juice concentrate production facility in Benue State. Earlier, it had entered into a partnership agreement with Symbion Power, a US-based energy firm. The collaboration was aimed at significantly increasing investments in the energy sector. Transcorp had also caused the revision of the terms of partnership in its Oil Processing License 281 (OPL 281) in Nigeria. The revised terms were said to be as a result of a change of control in Transcorp as the conglomerate sought to fully take responsibility for the operation of the block in its bid to become a leading Nigerian indigenous oil and gas upstream company with production.

The board of the conglomerate has projected that profit after tax could be about N1.03 billion by the second quarter ending June 30,2012. According to the latest forecasts, turnover is expected at N1.89 billion. Operating expense and financial charges are estimated at N293.83 million and N82.61 million respectively, leaving a profit before tax of N1.51 billion. With tax provisions of N484.48 million, profit after tax is projected at N1.029 billion.

Sustained profitability would gradually build up value for existing shareholders and excite the appetite of new investors, who would provide the momentum for the share price recovery. But for now, most investors appear to be on the 'wait-and-see' sideline; it's been a long lethargy to get out of with just interim report and forecasts.

THE NATION MONDAY, APRIL 2, 2012

36

DUE DILIGENCE

Lafarge Cement Wapco: Staging a comeback L AFARGE Cement Wapco Nigeria Plc rode on the back of significant increase in sales in 2011 to improve its overall performance but the company's profitability outlook remains challenging. Audited report and accounts of Lafarge Wapco for the year ended December 31, 2011 showed appreciable improvements in profit and loss performance and balance sheet. Sales growth of 43 per cent cushioned equally substantial increases in costs and formed the linchpin for the 21 per cent increase in profit before tax, completing a turnaround from the declines in sales and profit witnessed in the previous year.

The net earnings position of the cement company was boosted by a 52 per cent reduction in tax provisions.

With improved liquidity and less exigent financial structure, the balance sheet position was more amenable and consistent with the recovery outlook of the profit and loss accounts.

However, the underlying profitability measures remained tight. With declines in pre-tax profit margin and return on total assets, rising costs still pose substantial threat to actual profitability. The company tripled cash payouts to shareholders last year, reflecting the improved bottom-line. At just a quarter of net earnings, Lafarge Wapco's dividend payout policy remained understandably conservative.

It needs to conserve net earnings to boost its loan financing capacity, which although subdued a considerable threat to future performance.

2007 2011

2008

2009

• Joe Hudson, MD Lafarge Wapco

trast with N5.07 billion in previous the year. Non-core business incomes stood at N360 million in 2011, representing made up 21 per cent of total balance 56 per cent increase on N230 million sheet size in 2011 as against 49 per cent recorded in 2010. With an interest exin 2010. Long-term liabilities/total aspense of about N1.8 billion in 2011, sets ratio increased from 59 per cent in profit before tax was pressured by mid2010 to 63 per cent in 2011. However, line costs but managed a 21 per cent the proportion of equity funds to total growth to close 2011 at N10.22 billion assets dropped from 41 per cent to 37 as against N8.46 billion in 2010. Profit per cent. after tax meanwhile, rode on the back of significant reduction in tax provisions Efficiency to N8.51 billion in 2011, an increase of 74 per cent on N4.88 billion posted in The company maintained a tight con2010. Basic net earnings per share cortrol on cost efficiency during the perespondingly increased from N1.63 to riod. Total costs of business, excluding N2.83. finance charges, was almost unchanged Beyond outward figures, the intrinat 81.4 per cent in 2011 compared with sic profit-making capacity of the com81.2 per cent in 2010. There were no pany remained under pressure. While Financing structure available data to outline staff cost effigross profit margin improved marginciency and productivity. ally from 30.4 per cent in 2010 to 31.4 Total assets rose by 29 per cent to per cent in 2011, pre-tax profit margin N152.7 billion in 2011 as against N118.5 Profitability slipped from 19.3 per cent in 2010 to billion in 2010. Permanent assets grew 16.3 per cent. Also, while return on eqby 27 per cent from N100.8 billion to Lafarge Wapco generally showed a uity, bolstered by the tax gains, imN127.94 billion while current assets positive profitability outlook with sigproved from 10.1 per cent to 15.2 per increased by 40 per cent to N24.72 bilnificant growths in key figures trickcent, return on total assets dropped lion as against N17.67 billion in the ling down to 200 per cent increase in from 7.1 per cent to 6.7 per cent. previous year. Total liabilities meancash payouts to shareholders. Total The board of Lafarge Wapco has recwhile, inched up by 38 per cent from turnover rose from N43.84 billion in ommended an increase in gross diviN70.2 billion to N96.6 billion. Paid up 2010 to N62.50 billion. Cost of sales indend from N750 million in 2010 to share capital was unchanged at N1.5 creased by 40.5 per cent to N42.9 bilN2.25 billion in 2011. This represented billion but shareholders' funds imlion as against N30.5 billion posted in an increase in dividend per share from proved by 16 per cent from N48.3 bilprevious year. Gross profit thus grew 25 kobo to 75 kobo. The payout rate lion to N56.1 billion. by 47 per cent from N13.31 billion to indicated a softening in the conservaWith a zero financial leverage in 2011 N19.6 billion. tive policy forced on the company by compared with debt-to-equity ratio of However, operating expenses shot up its huge indebtedness in the previous 2.9 per cent in 2010, current liabilities by 57 per cent to N7.96 billion in conyears. Some 26.5 per cent of net earnings would be distribFiscal Year Ended December 31 2011 2010 uted to shareholders as cash payouts for the Nmillion 12 months % change 12 months 2011 business year as Profit and Loss Statement against 15.3 per cent Main Business Segment 62,502 42.6 43,841 paid out in previous year. With this, the Total turnover 62,502 42.6 43,841 earnings-dividend Cost of sales 42,898 40.5 30,535 coverage reduced Gross profit 19,604 47.3 13,306 from 6.52 times in

Operating expenses Interest and other incomes Finance expenses Pre-tax profit(loss) Post-tax profit (loss) Basic earnings per share(kobo) Gross dividend (Nm) Cash dividend per share (kobo) Net Assets per share (kobo) Balance Sheet Assets: Fixed assets Total long term assets Trade debtors Current assets Total assets Liabilities: Trade creditors Bank loans Current liabilities Long-term liabilities Total liabilities Equity Funds Share capital Total Equity Funds

2010

By Taofik Salako

7,956 360 1,788 10,219 8,509 283 2,251 75 1,867

56.9 56.5 #DIV/0!

20.7 74.3 73.6 200.1 200.0 16.0

5,071 230 0 8,464 4,881 163 750 25 1,609

127,904 127,944 689 24,723 152,667

27.0 26.9 20.9 39.9 28.9

100,751 100,811 570 17,667 118,478

5,330 0 32,593 64,025 96,618

152.2 0.0 -43.9 428.3 37.7

2,113 1,411 58,068 12,119 70,187

1,501 56,050

0.0 16.1

1,501 48,291

2010 to 3.77 times in 2011. Meanwhile, net assets per share improved by 16 per cent from N16.09 in 2010 to N18.67 in 2011.

Liquidity The liquidity position of the company improved tremendously, although it remains below acceptable comparative limits. Current ratio, which measures the ability of the company to meet emerging financing obligations by relating available assets to relevant liabilities, improved from 0.30 times to 0.76 times.

Although still negative, the proportion of working capital to total sales improved from -92 per cent in 2010 to -13 per cent in 2011. Debtors/creditors ratio however, dropped from 27 per cent in 2010 to 13 per cent in 2011.

Governance and structures Lafarge Cement Wapco Nigeria Plc is a subsidiary of the Lafarge Group, which altogether holds 60 per cent equity stake through three of its subsidiaries. Lafarge Group is a global leader in building materials with operations in 78 countries. Besides, Lafarge Wapco, Lafarge's operations in Nigeria also includes majority shareholding Ashaka Cement and significant stakes in Atlas Cement, Port Harcourt and Unicem, Calabar.

Lafarge's operations in Africa run through 20 countries. This spread presents cross-selling and economy of scale advantages that provide Lafarge Wapco with access to competitive advantages in the market.

Mr Samy Abdelkader, erstwhile managing director of the company, was assigned to new roles within the Lafarge Group and was replaced by Mr Joe Hudson, who was formerly the regional vice president, human

Fiscal Year Ended December 31

resources and organisation. Chief Olusegun Osunkeye still chairs the board of directors. Lafarge Wapco broadly complies with code of corporate governance with relevant board committees and structures to oversee the strategic direction of the company.

Besides, Lafarge Group provides a global best practice guide that directs best practices in its operations.

Analyst's opinion The performance of Lafarge Wapco is commendable. The rebound in key growth indices reassures on the positive impact of the recent investments and expansion. With the coming on stream of its 2.2 million metric tonnes new cement plant, which raised the company's total capacity to 4.4 million metric tonnes per annum, Lafarge Wapco is expected to further consolidate its performance in the years ahead.

Investments in power generation and utilisation- a major cost element in cement production, are also expected to provide stable platform for the realisation of the growth potential.

But there is a snag in the company's huge medium-term indebtedness. The company will require fast-paced growth in sales and tight control on costs to muffle the obvious impact of interest expense. Financing structure has always been a major impediment in the growth cycle of Lafarge Wapco and it needs to break this chequered performance trend to truly deliver the benefits of several growth initiatives to shareholders.

The demand-supply outlook for the cement industry remains robust but there is always the lurking threat of the effect of unpredictable weather on building and construction activities. The future outlook of Lafarge Wapco depends on strong sales growth and efficient cost management.

2011 %

2010 %

Financing structure Equity funds/Total assets Long-term liabilities/Total assets Current liabilities/Total assets Debt/Equity ratio

36.7 63.3 21.3 0.0

40.8 59.2 49.0 2.9

Profitability Gross profit margin Pre-tax profit margin Return on total assets Return on equity Dividend cover (times)

31.4 16.3 6.7 15.2 3.77

30.4 19.3 7.1 10.1 6.52

Efficiency Pre-tax profit per employee (Nm) Staff cost per employee (Nm) Cost of sales, operating exp/Turnover

NA NA 81.4

10.31 4.35 81.2

Liquidity Current ratio Working capital/Turnover Debtors/Creditors

0.76 -12.6 12.9

0.30 -92.2 27.0

THE

JOBS THE NATION

Website:- http://www.thenationonlineng.com

THE NATION MONDAY, APRIL 2, 2012

37

• The BUA pasta plant

There is hope for job seekers as BUA Group expands with a possible opening of about 50,000 jobs through its new pasta plant in Lagos billed for inauguration soon, reports TOBA AGBOOLA.

T

50,000 jobs likely from BUA pasta plant

HE BUA Group has built a pasta plant in Apapa, Lagos. It is ex pected to create about 50,000 direct and indirect jobs.

The Group Chief Operating Officer of BUA International Limited, Chimaobi Madukwe, said the plant would be opened soon as it is almost completed.

The project is the vision of the Chairman, Alhaji Abdul-samad Rabius, to build an indigeneous manufacturing conglomerate.

“The Executive Chairman, Alhaji Abdulsamad Rabiu, having identified the instrumentality of pasta as a food item in the fight against the hunger scourge ravaging the globe, has invested over $50 million to set up the pasta plant,”

Madukwe said.

The plant, located in Kirikiri, Apapa, Lagos, provides employment for over 500 workers and on completion, the number is expected to rise to over 1,000 ranging from truck drivers, loaders and distribu-

tors among others.

In addition, the new plant will also provide indirect employment and stir economic activities for no fewer than 50,000 people, who will include food vendors and other ancillary services’ providers.

Giving details of the new investment in the pasta plant, Madukwe said the factory stands on a 1.5 hectare land • Continued on page 38

38

THE NATION MONDAY, APRIL 2, 2012

JOBS

50,000 jobs likely from BUA pasta plant • Continued from page 37

space and consists of a 5,000 tonnes wheat silo to produce semolina at 360 metric tonnes (MT) daily, while the pasta production plant has a capacity of 240 MT per day.

There is also a massive water treatment plant to supply the factory with purified and wholesome water to ensure that the food products meet all national and international food safety standards.

He said the plant would be supported by the company‘s flour milling plants in Lagos and Kano, with each having a production capacity of 500 metric tonnes per day, adding that the Kano flour plant is being up graded to produce 1,500 MT per day, while efforts are being made to expand the production capacities of both companies.

Madukwe said four power plants, fired with natural gas have been installed to ensure uninterrupted power supply during production.

He noted that the pasta plant has been built to maintain the same quality and Good Manufacturing Practices (GMP) as required by National Agency for Food Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON).

As for storage of finished goods, the plant has vast storage space for finished products before they are channelled to the various markets across the country.

He said the plant was constructed by FAVA S.P.A., an Italian firm, which specialises in plants of this nature, adding that the structure was constructed with steel imported from Turkey.

On the Group’s marketing strat-

egy, Madukwe said the potential of the local market is enormous.

He said: “The group wants to focus on the local market for now, as it is set to explore opportunities in Nigeria’s vast economy of over 150 million people.”

On plans to develop the production of raw materials locally, he noted that BUA Group is involved in backward integration to engender the development of local capacity in the country - a development that led to the acquisition of a local sugar plantation farm at Lafiaji.

Madukwe said the company is poised to ensure it produces quality pasta for Nigerians, like it has done with its other products, such as sugar, vegetable oil, flour and cement.

BUA Group is one of the leading indigenous diversified conglomerates in the country with total capitalisation of $5 billion.

Madukwe noted that even with other pasta producers, the market is still very virgin, adding that with a population of over 150 million, only about 20 per cent have pasta as a staple in their daily meal schedule.

This variety of food items derived from the processing of wheat has become a key implement for the pursuit of food security across the world. In Europe, it has contributed in no

• Minister of Labour, Chukwemeka Wogu

small measure to lifting many out of extreme starvation to sustainable food sufficiency. Pasta initially was synonymous with Italian cuisine, but now, it is eaten in huge volumes the world over and Nigeria is no exception.

The group is engaged in the manufacturing of cement from its Cement Company of Nigeria

• Rabiu

(CCNN) in Sokoto and the Edo Cement plant, in Okpella. It is also into the manufacturing of sugar, flour milling, edible oil, as well as ports operations, property development and oil and gas.

It has also expanded into the manufacturing of refined sugar with the establishment of BUA Sugar Refinery and the acquisi-

‘The group wants to focus on the local market for now, as it is set to explore opportunities in Nigeria’s vast economy of over 150 million people’

tion of Lafiagi Sugar Company.

In the real estate sector, the group owns huge real estate projects in the Northern part of Nigeria, with offices across Nigeria.

Pasta is produced from Durum wheat, hard wheat, which is also milled into semolina and mixed with water to form dough. It is then kneaded and cut into different shapes, dried and packaged.

Today, there are more than 600 different shapes produced worldwide.

Spaghetti is the most common type of pasta and the word is the diminutive of spago, meaning string in Italian. Italians are very descriptive of their many different pasta. Examples include angels’hair, ribbons, worms, little ears and butterflies. Despite the odd names, Italians tend to treat pasta with the utmost seriousness.

CAREER MANAGEMENT

Is your job search going anywhere?

O

FTEN times, job seekers inevitably find themselves stuck after several weeks of job searching. They’ve got one or two or maybe even no responses from employers.

Invitation for job interviews are few and far between. Their emails and phone calls go unanswered. If you are fortunate, the only response received has been a vague automatically generated email.

This is the job search rut. You are not alone. It’s a common situation faced by many job seekers.

Recruitment statistics offers some comforting explanation: because there are nearly four job seekers for every opening, it’s possible to apply for dozens of jobs and never get a response.

Many employers state they receive hundreds of applications and resumes for a single opening.

Out of the hundreds, employers will select only a handful of

By Olu Oyeniran

candidates to move on to the next level. But that is not what you want. You want a job and not explanations! I know.

So, if your job search is not moving on to the next level, there are a few things you can evaluate.

Your cover letter is the first an employer looks at, even before a resume. It’s your best chance at making a good impression. If you aren’t receiving any calls, it’s time to revise the cover letter.

Even if you don’t have a lot of experience, this is your opportunity to shine.

The cover letter should be no longer than two to three paragraphs and should outline why you want the job, why you’d be great at the job, and a summary of your years of experience. It may be that your cover letter isn’t long enough or doesn’t divulge enough information.

After revising your cover letter, look at your resume: It’s always a good idea to change up your resume if you haven’t received any responses during your job search. Make sure all the appropriate key words related to your job are found in your resume.

Another issue is your job search strategy.Take another look at your job search approach. Are your applying to several different jobs a day? Are you focused on a job or a range of related jobs or an industry? Are you looking at other industries? Are you willing to change your salary requirements or possibly look at relocation?

It’s important to remain flexible during your job search. You may need to consider things you previously would not have thought possible. For example, if you are applying for nursing jobs in Lagos without significant results, it may be time to look at

other cities - Kano, Ibadan, Abuja, Port Harcourt, Makurdi, etc.

If your job search is discouraging you, it may be time to give yourself a break. Job search is tedious, lonely, energy and self-esteem sapping. Without results, it is very easy to be discouraged.

Take a couple days off to think about why this is the career you chose and remind yourself that you’ll get there soon. Like they say in churches, encourage yourself.

But If after several weeks you still are not receiving any phone calls, it may be time to think about furthering your education or improve your skills.. Are there any classes you can take or certifications that will improve your appeal to employers? Your computer skills?

Get all the help you can. There is no shame in looking for jobs (it happens to virtually everybody two to three time in their

career). Friends and former colleagues are two more resources that can be useful during your job search. Ask your former colleagues for job search recommendations, advice, and direction.

See, at one point in their life they were in your shoes. Many people are willing to help.

Social media and the Internet can be useful for job search support. There are many online forums that will help you with interview tips, dress code suggestions, and application tips. Or direct information if you join the right group.

Good luck.

Olu Oyeniran is the Lead Consultant, EkiniConsult & Assoiciates.

Website: www.jobsearchhow.com E-mail: oluoyeniran@yahoo.com Tel 08083843230 (SMS Only).

THE NATION MONDAY, APRIL 2, 2012

39

INSURANCE

Offshore operations face challenges, says NAICOM F OREIGN subsidiaries of some underwriters are still battling to acclimatise with operating rules of domiciled nations, the Commissioner for Insurance, Fola Daniel, has said.

He told The Nation on the telephone that the results of some subsidiaries were not impressive due to the challenges confronting them. He said NAICOM was partnering with regulators to ensure that the foreign subsidiaries perform to expectations.

He rated the performance of the firms fair, adding that some of them acquired companies that were near liquidation, hence, it would require some time for them to be resuscitated.

Daniel said: “We have the ac-

Stories by Chuks Udo Okonta

counts of all the insurance subsidiaries. Beyond that, we are collaborating with the regulators of those jurisdictions so that we can exchange notes on these entities. The performance of one of the firms is not that impressive, but it is understandable, for when you venture into a country that is not yours, there are harsh conditions you must meet. And it will take three or five years to acclimatise before you can make significant progress.

“For instance, one of the firms took up a dead company in Ghana, and there are a lot of liabilities which they are, at present, settling.

So, if you factor in this type of development, it will take them a

while to settle down, wipe away the past and begin to make progress. That is the state of most of the companies. They are okay and fairly rocking ahead.”

He said the sector has the capacity to become the biggest market in Africa and among the biggest in the world, adding that although the sector failed in the past to record any real growth in 35 years after making allowance for inflation, and consistently made only about one per cent contribution to the nation’s Gross Domestic Product (GDP), as against, for example, South Africa’s 16 per cent, developments have confirmed that the sector has begun to, and will continue to grow and make contributions to the economy.

He stated that NAICOM has

mandated all insurance and re-insurance firms to submit copies of duly audited financial statements and yearly returns, in prescribed forms, by the first-half of every year.

He said in rendering yearly returns, composite insurers shall adhere strictly to the provision of Section 19 of the Insurance Act, 2003, regarding separation of accounts and reserve funds, adding that late filing of yearly returns shall in accordance with Section 26(3) of the Insurance Act, 2003, attract a fine of N5,000 per day for each day of default.

“Failure to file annual returns as prescribed by Section 26 of the Insurance Act, 2003, constitutes a ground for cancellation of operating licence.An insurer shall be

deemed to have failed to file its annual returns if the provisions of S.26 of the Insurance Act, 2003, are not met 12 months after the end of the financial year,” he added.

He said cash flow statements shall be prepared and presented directly, adding that each firm shall at the time of submission of yearly returns and audited financial statements pay the following filing fees: Composite insurers N200,000, life or general N100,000, reinsurers N200,000.

He noted that insurers and reinsurers shall obtain approval of their yearly returns and accounts from it before consideration by the shareholders at the companies’ annual general meeting (AGM) and distribution of dividends to shareholders.

NCRIB to de-list erring members

T

• From left: Managing Director, Galaxy Backbone, Mr Gerald Ilukwe; Executive Commissioner, Technical Services, representing Executive Vice-Chairman, Nigerian Communications Commission (NCC), Dr Bashir Gwandu; Chairman, House of Representatives Committee on Information and Communications Technology (ICT), Dr Ibrahim Gusau; Minister of Defence, Dr Bello Mohammed and Commandant, Nigeria Defence Academy, Maj.Gen. Emeka Onwuamaegbu, at the Defence Sector ICT Forum hosted by Galaxy Backbone and the Defence Headquarters in Abuja ... last week.

Cover for terrorism coming

I

NSURANCE cover for terrorism risk is to be unveiled soon by some underwriting firms, the Executive Director, Technical, Niger Insurance Plc, Ibrahim Hassan, has disclosed.

He told The Nation that insurers are intensifying efforts to evolve products to meet terrorism risks.

He said the Research and Product Department of Niger Insurance was working on a product to provide succour to people affected by terrorism.

He noted that insurers did not pay attention to such risks before because they did not anticipate that such would happen in the nation, adding that the present situation has propelled underwriters to find protection for people who incur losses due to the menace.

Hassan said: “Before the recent bombing experience across the country, criminal activities had not developed to that level in our society. Perhaps that is why our local insurance industry did not pay attention to such insurance policy.

“I know that one of the purposes of insurance is to take care of uncertainties. Now that this activity of bombing is predominant in the society, insurance practitioners are bracing up for products that can take care of this segment of risk. Very soon, you will hear of some insurance compa-

nies coming out with products to take care of that.

“I can tell you authoritatively that we are even working on it.

Our Research and Product Department is working to come up with a product that would take care of that risk. And I know other insurance companies would follow suit to make sure that this aspect of risk is covered.”

Hassan noted that the level of insurance penetration in the country is very low, adding that various factors are responsible for the ugly situation.

He identified low level of awareness, high rate of illiteracy among Nigerians and poverty as major reasons for the poor development of insurance, adding that many Nigerians don’t even know what insurance is. Therefore, there is the need for campaigns to educate the masses on the benefits of insurance.

“The acquisition of insurance products is tied to income. Poverty in the society is still on the high side. It is still believed that it is only when you are comfortable that you can take up insurance policy. But the disposable income to individuals in the country is still very low, and as a result, they cannot afford to take the policy no matter how small the premium is.

“In addition, some societal

HE Nigerian Council of Registered Insurance Brokers (NCRIB) has warned tha it will de-list the 31 brokering firms whose licences were withdrawn by the National Insurance Commission (NAICOM) for failing to meet some legal requirements.

A source at NCRIB, who pleaded anonymity, said the council, in keeping with the industry’s rule, would remove the alleged offenders from its list, until they settle with the regulator.

He said the council recognises only brokers who comply with its rules and would not tolerate charlatans in the industry.

The affected brokers are APL Insurance Brokers Limited, ASO Solid Insurance Limited, Bambi Insurance Broker Limited, CIB Insurance Broker Limited, Cachet Insurance Brokers Limited, Clown Field Royal Insurance Limited, Cobal Insurance Brokers, Col-Val Insurance Brokers, Commercial Marine Brokers.

Others are Consolidated Insurance Brokers, Corporate Trust Insurance Limited, Delight Insurance Brokers Limited, Fair Deal Insurance Limited, First Cover Master Broker Limited, Goodgate Insurance Limited, Hope equity & Trust Brokers Limited, I B P C Insurance Brokers Limited, Inland Insurance Brokers Limited, Ma Aji Insurance Brokers Limited, Mark

of Security Insurance Limited.

Also affected are Mbc Insurance Brokers Limited, Mecartend Insurance Brokers Limited, Megatech Insurance Brokers Limited, MultiLateral Insurance Brokers, Risk Guard Insurance Broker Limited, Royal Trust Insurance Brokers Limited, Shield Insurance Broker Limited, Tulip Insurance Brokers Limited, Uni-Chartered Insurance Brokers, Unimag Insurance and United Modern Insurance Brokers.

NCRIB President Mrs Laide Osijo stressed that the council and the industry regulator are to rid the subsector of charlatans.

“In view of the need to affirm the provisions of the NCRIB Acts on registration of insurance brokers and eliminate the existence of charlatans from the insurance broking profession, NAICOM has continued to play complementary roles in this area, a move which is most commendable.

“NAICOM has forwarded a circular to brokers operating with its licence but without NCRIB registration certificates to normalise their records with the council immediately. The council has also forwarded written circulars to all those affected to comply with the directive to avoid embarrassment as the council would soon publish the names of all its members in some national dailies in adherence to the law,” she said.

‘N72b provision for pensions insufficient’

D • Hassan

norms also affect the insurance business and this is responsible for the low level of insurance penetration in the country.

“In the north, there is this religious belief that everything that comes your way is from the Almighty God. For both Christianity and Islam, God said: “If I give you fortune, you have to endeavour to protect it. If you do, and anything befalls it, people will know that you tried your best but God has taken it away,” he said.

Hassan noted that insurance remains the solution to catastrophy as it gives people something to fall back on whenever there is risk.

IRECTOR-General, National Pension Commission (PenCom), Mohammad Ahmad, has said the N72.17 billion budgeted by Federal Government for pensions is insufficient to offset its N94.17 billion liability for retirees this year In a statement, Ahmad said the amount includes N15 billion owed to employees who retired December 31, last year. He said the commission has drawn the attention of the Federal Ministry of Finance and appropriate committees of the National Assembly to the required figure for this year.

He said the value of pension assets under the Compulsory Pension Scheme (CPS) stood at N2.45 trillion as at December 2011 with monthly contributions of N20 billion, which represents 30 per cent yearly growth rate.

He said the Federal Government has been consistent in the remittance of the monthly pension contributions of its employees, adding that as at December, last year, N604.27 billion has been credited into the contributory pension account with the Central

Bank of Nigeria out of which N449.35 billion had been remitted into the Retirement Savings Accounts (RSAs) of the Federal Government’s employees domiciled with the various Pension Fund Administrators (PFAs).

Ahmad noted that the implementation of the scheme over the past seven years has, however, not been without challenges, particularly with the Federal Government’s retirees.

He said: “Section 29 of the PRA 2004 provides that an amount equivalent to five per cent of the Federal Government’s wage bill be paid into the Retirement Benefits Bond Redemption Fund (RBBRF) Account with the Central Bank of Nigeria (CBN) to pay the accrued pension rights of retirees, who had worked for the Federal Government prior to June 2004.”

Ahmad noted that in practice, however, the funds provided had not been sufficient to accommodate the pension liabilities of the Federal Government because of the additional claims arising from early exit occasioned by voluntary and mandatory retirements, or death.

THE NATION MONDAY, APRIL 2, 2012

40

NEWS TWO-DAY INVESTORS’ FORUM AT DLK EVENTS CENTRE, ABEOKUTA, HOSTED

BY THE OGUN STATE GOVERNMENT

• From left: Chairman Chapel Hill Denham, Mr Olawale Edun, Minister for Agriculture , Dr. Akinwumi Adesina, Governor Ibikunle Amosun, GMD Union Bank Mrs Funke Osibodu and Commissioner for Agriculture Hon. Ayo Olubori.

• From left: Speaker, OGHA, Rt. Hon. Suraj Adekunbi, Senator Markafi, Senator Gbenga Obadara, Prof. Pat Utomi, Chief Tokunbo Ali and Chief of Staff, Ogun State, Ambassador Ademola Ogunnaike

• Chief Olusegun Osoba, Governor Patrick Yakowa of Kaduna State and Governor Babatunde Raji Fashola (SAN) of Lagos State

• From left: Chief Segun Awolowo, Chief of Staff, Ogun State, Ambassador Ademola Ogunnaike, Deputy Chief of Staff, Ogun State, Alhaji Shuaib Salisu and Commisioner for Information and Staff, Mr Yusuph Olaniyonu

• From left: Senator Ganiu Solomon, former Senate President, Ken Nnamani and Deputy Governor Ogun State, Prince Segun Adesegun.

• House of Assembly and some delegates at the event

• Cross section of delegates at the event

• From left: Head of Service, Ogun State, Mrs. Modupe Adekunle, Chairman, Ogun State Civil Service Commission, Mrs. Susan Folarin, Mrs. Doyin Ogunbiyi and Commissioner for Youth & Sport, Mr Gbenga Otenuga

• Cross section of delegates at the event

• Cross section of Permanent Secretaries at the forum

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NEWS

Okada ban: ‘We won’t be part of protest, litigation’

A

LL Nigeria Autobike Commercial Owners and Workers Association (ANACOWA) and Motorcycle Operators Association of Lagos State (MOALS) yesterday said they were not part of the planned protest against Lagos State,which is to take place today.

The government had banned commercial motorcyclists from operating within the Ikeja business district of Lagos. It was learnt the commercial motorcyclists are planning to take the state government to court.

But ANACOWA Chair-

•Seek dialogue with Fashola man, Mr. Ade Ikuesan, said there is need for dialogue.

He spoke in a statement he co-signed with his secretary, Mr. Mordi Elvis.

MOALS Chairman Mr. Tinjani Perkins backed the state government, explaining that it is meant to regulate operators in the state.

Perkins said: “We are not interested in protests, which some minute associations are planning. We are not in-

terested in the court actions.

If our members operate on the route the state government asks them to operate, there will not be any issue.”

Disturbed by the actions pending in court, Ikuesan dissociated his group from other associations, which he said had sued the state government. He stated that it would be better the okada matter “is resolved through dialogue”.

Ex- militants: Fed Govt slams oil , gas firms

S

PECIAL Adviser to the President on Niger Delta Matters Kingsley Kuku has criticised oil and gas firms for failing to train 3,000 ex- militants it pledged to train.

Kuku said the companies have failed not only by giving insufficient training to only 1,200 youths but have also failed to train the youths in relevant areas.

The presidential adviser

L

By Kelvin Osa-Okunbor

said he was piqued by the sloppy attitude of the oil and gas companies and vowed to withdraw the ex- agitators from their training centres.

He said he would embark on an assessment tour to ascertain the state of the training facilities, even as he said failure to meet global standard will attract stingy pen-

alties, part of which he listed to include the withdrawal of ex-militants from such quarters.

Kuku explained that the target of the amnesty office in 2012 is to train as many as over 8,400 ex- militants in many areas, such that people of the region could get job placement in the oil and gas sector, where many expatriates are holding the economy to ransom.

NBA should prosecute Halliburton scandal suspects, says Falana

AGOS lawyer and human rights activist Mr. Femi Falana has urged the Federal Government to allow the Nigeria Bar Association (NBA) to assemble a team of experienced prosecutors to take over the prosecution of the suspects indicted in the Halliburton scandal to save the country the embarrassment of having them tried in a foreign country.

He said plans by the government to file an appeal against last week‘s judgment of an Abuja High Court, presided over by Justice Abubakar Sodiq Umar, which struck out the case against the suspects for want of diligent prosecution was provocative and a design to pull a wool over the

By Adebisi Onanuga

eyes of Nigerians.

In a statement in Lagos yesterday, the human rights activist claimed that there is no basis for an appeal since the case can be re-filed so that hearing can commence into the matter as long as the witnesses are instructed to attend the trial court and give evidence for the prosecution.

Falana remarked that the sloppy manner in which the trial is being handled showed that government is not committed to prosecuting the matter to a logical conclusion, a situation which has exposed Nigeria to ridicule before the world.

Senate to intervene in FAAN-MAEVIS face-off

T

HE Senate may have concluded arrangements to intervene in the face-off between the Federal Airports Authority of Nigeria (FAAN) and its concessionaire, MAEVIS Limited.

A member of the Senate Committee on Aviation told our correspondent yesterday that the fear of the committee is that the country might be exposed to danger, if the face-off

By Onyedi Ojiabor, Assistant Editor

is not quickly resolved.

The lawmaker, who spoke on the condition of anonymity, said: “We are still considering issues involved in the dispute.”

He said most members of the Senator Hope Uzodinma led committee are concerned that the face-off might lead to

a breach of the country’s security.

He noted that they are worried about the report that air passengers were made to undergo a cumbersome manual screening for over one week after FAAN took over the operations that MAEVIS have been handling since 2007 under a concession agreement between the parties on March 24.

FOREIGN NEWS

Malian leader pledges to cede power

•Sanogo

M

ALI’S junta leader promised to reinstate the constitution from yesterday, hours before a deadline set by West African neighbors to start handing over power, as northern rebels entered the ancient trading post of Timbuktu.

Amadou Sanogo, who led a military coup on March 22, also pledged to re-establish all state

institutions before organising a transfer of power back to civilians through democratic elections.

He made the promises after the 15-nation ECOWAS grouping threatened sanctions, including a crippling closure of borders around the landlocked state, if the junta did not begin handing power back by midnight.

The aim of the putsch by disgruntled soldiers was to step up the battle against the northern rebels. But the coup has backfired, emboldening the Tuareg-led rebellion to seize new ground in its quest for a northern homeland. Yesterday they entered their latest target, Timbuktu, after government forces fled.

“We are making the solemn commitment to re-establish,

from today, the Malian constitution of February 25, 1992 and the institutions of the republic,” Sanogo said in a statement read out at a barracks outside the capital Bamako.

Sanogo, a hitherto obscure United States.-trained captain, said the junta had agreed to consult with local political forces to set up a transition body “with the aim of organising peaceful, free, open and democratic elections in which we will not take part”.

There was no immediate reaction from ECOWAS. However, the re-establishment of the constitution and state institutions were two measures named earlier by an envoy of Burkina Faso President Blaise Compaore, the crisis mediator, as essential preconditions for Mali to avoid sanctions.

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www.thenationonlineng.net

MONDAY, APRIL 2, 2012 TRUTH IN DEFENCE OF FREEDOM

TOMORROW IN THE NATION

‘Alhaji Bamanga is only a dreadful metaphor. What is playing out is an all-out politicking for 2015. It is a president’s near-desperate move to enforce his right to run again in 2015. ’

VOL 7 NO 2,083

OLAKUNLE ABIMBOLA

C OMMENT & D EB ATE EBA

F

INANCE MINISTER Ngozi OkonjoIweala has a dream, and we saw her on CNN last week trying to articulate the power of that dream. She wants to be the president of the World Bank. If that comes to fruition, she will become one of the most powerful persons in the world.

Clad in her often traditional gear, she tries to portray herself as an authentic African, speaking flawless English with an unmistakable African accent. The chemistry of flawless syntax in African elocution gives her a complex hue, as a personage who is both a good African and Westerner. This view, on the surface, is hard to duel when we realise that she has soared in the ambience of the Bretton Woods system and as a Nigerian minister.

That is on the surface. But from her dual forays as minister - first under Obasanjo and now under Jonathan - it is clear that she is an African by name, birth, marriage and, to some extent, culture. But as far as her intellectual, professional and technocratic pedigrees go, Okonjo-Iweala is a daughter of the West. She thinks in the paternalistic complexion of the so-called Western liberal view of the developing economy, and that view bears a condescending attitude towards the African people. She is a daughter in whom they are well pleased.

They want to think for us on how to make wealth, secure loans, leverage other resources, set goals, run our society after their own image. In the final analysis, we become dumping grounds for the jetsam and flotsam of their economic tragedies. That explains two distinct policies we have seen under President Goodluck Jonathan. One, the decision to give over our sovereign wealth fund to Western investors, the same financiers, like Goldman Sachs and JP Morgan, who railroaded Western economies into a bubble and bust under which the whole earth reels to and fro.

In her CNN interview, she pledged to make the World Bank “nimbler.” She has not succeeded in making our economy even nimble. Between her first advent as minister and her second, the average Nigerian is poorer, crippled by power failures, infrastructure deficit, shrinking job markets and more capital flight, an economy that is fluky with near anarchic spasms. She and her boss, President Jonathan, speak of developing local economies and investors like small and medium scale enterprises. Yet, when we have a sovereign fund, our own money, President Jonathan and Okonjo-Iweala trust it to foreigners.

That is why I think she is a good fit for the job at World Bank and unfit for the job as minister of finance at home. Ironically, she is brandishing her doing as finance minister as a lofty part of her resume. But I ask, how does failure at the root make the flower blossom abroad?

The second policy is the decision to hand over Nigerian contracts to the same World Bank for vetting. Jonathan and his minister do not believe in their our own institution.

This is the same president who, in his “I am

RIPPLES NIGERIA TO EXPORT POWER TO CENTRAL, SOUTHERN AFRICA

Export...or you mean IMPORT?

SAM OMATSEYE

IN TOUCH

intouchsam@yahoo.com 08054501081(sms only) •Winner, Informed Commentary 2009& 2010 (D.A.M.E)

Son and daughter of the West

•Mrs. Okonjo-Iweala not a lion speech,” declared that he was building institutions. What he is doing is cede them. For Okonjo-Iweala, she will do well at the World Bank since she is by ideology and temperament a World Bank person, eminently Western. She will do well for them, not us.

While Okonjo-Iweala may be blamed for part of the policy, the President bears the greater scar. He enunciates the policy. He is the boss.

He is ceding our institutions to foreigners.

The other example is security. In the fight against Boko Haram, he is also giving up much of our security to the Americans and British. Nothing wrong with collaborations with foreign agencies. But the bumbling of our local forces has meant that the Americans and British do not trust the Nigerian government to secure Nigeria. The foreign governments have a lot at stake in a tranquil Nigeria. In their cynical love, they want an oil-rich Nigeria to prosper for them, and they have their nationals on our shores. That is not how Americans handled Al Qaeda on their soils. They adjusted and stepped up their intelligence and we have not witnessed another assault on their soil since 9/11.

‘While OkonjoIweala may be blamed for part of the policy, the President bears the greater scar.

He enunciates the policy. He is the boss.He is ceding our institutions to foreigners’ What we have here is a new colonialism, but this colonialism is coming from the top and it is self-induced. This is voluntary official servitude. But if we look at the style of our president closely, we will observe this sort of distance from institutions.

Take the issue of oil and the so-called subsidy aftermath. He set up at least two committees, one under Christopher Kolade and another under Mallam Nuhu Ribadu to carry out tasks that could easily have worked if the petroleum ministry was a working institution.

Our waterways are also not under government supervision but under an ex-militant.

The Presidency has flailed and failed to offer an explanation as to why Tompolo should secure our territorial waters when we have many institutions like the Nigeria Ports Authority and NIMASA on which the government splurges resources.

Okonjo-Iweala is competing with an American-sponsored candidate, and she talks with confidence about her ability to best her Western rival for the post. I think her ambition is the least of our problems in Nigeria. We need leaders who can build institutions that we can call our own. Last week, the House of Repre-

HARDBALL

S

HORTLY after last month’s Peoples Democratic Party (PDP) national convention, President Goodluck Jonathan warned it was too early to start politicking for 2015 presidential election. The government should be allowed to concentrate on governance, he was reported as saying.

Though he did not say so, the president was probably reacting to strongly worded statements made by certain northern groups and coalitions suggesting that Jonathan’s manoeuvres during the convention presaged a tactical outflanking of the North. The groups then asserted that the North must make a claim for the presidency in 2015 in the face of what they inaccurately described as Jonathan’s third term ambition.

If the president or the ruling party’s top hats felt that Jonathan’s caution meant anything, they were grossly mistaken. The northern groups may have quietened down a little over their allegations of Jonathan’s third term ambition, but they have not stopped discuss-

2015 just won’t go away ing and manoeuvring forcefully for 2015. And from all indications, they will continue to do so vigorously. However, it is not only the North that is talking and acting 2015 politics, and won’t be dissuaded from continuing to do so, the Niger Delta itself has assembled an army of talkers, propagandists and action figures led by Chief Edwin K. Clark and a host of ex-militants whom the oil region prefers to canonise as freedom fighters.

As the weeks come and go, and with some active help from Nigeria’s relentless and obdurate media which has taught itself to stay on stories, 2015 will not only refuse to go, it will acquire more pertinence and even urgency. Chief Clark, the elder statesman who has acted immoderately and self-righteously

sentatives asked a committee to look into the arbitrary withdrawal of N114 billion from our stabilisation fund without due process. The withdrawal of that whopping sum happened within months. This is the same system that the minister who coordinates the economy wants to deploy as evidence of her competence to steer the World Bank for our benefits.

If Okonjo-Iweala is the daughter of the West, does that make President Jonathan the son of the West for going along with such policies? It is hard to think otherwise. Dem be oyibo pikin.

Philosophers have identified an idea called nihilism, in which its advocates disavow all institutions. They don’t believe in law and due process. I wonder if many of our leaders are not closet nihilists. When you don’t obey the law in conducting elections, or when you use the army and police to impose a candidate, you disdain institutions. You are a nihilist, if you don’t know it.

That was the obsession of Russian novelist Ivan Turgenev in his masterpiece, Fathers and Sons, where the main character Bazarov disinherits everything.

What we need is not for the president to ape the West, but to be an authentic leader.

That means he should take charge. The only area where he takes charge is in the game of politics where he hounds his enemies, imposes candidates both at state and national levels without finesse.

If he lacks subtlety in politics, at least he should not mortgage our nation to the West.

Tinubu: in power out of power

L

AST WEEK, Asiwaju Bola Tinubu enjoyed a carnival week for his birthday.

The celebration was remarkable for a man who is neither a governor nor president. He does not brandish arms nor hide behind a coat of armour. He drew crowds and panoply of eminent persons from across the country and abroad. So, it is hard to see any precedent of enthusiasm from such high-profile and ordinary folks in terms of acknowledgment across party and ethnic lines. The week underlined him as a natural leader of men, unrivalled in this generation.

When governors and presidents draw such attentions on their birthdays, it is because many people know they occupy the seats of power. But Asiwaju is an example of a man in power out of power. Harvard scholar Joseph Nye designates it as soft power, which is often more potent and enduring than the familiar “hard power.” Soft power is influence based on the force of personality. Hard power relies on a position, materiel and material instruments of control.

Soft power is the true meaning of influence and derives from years of hard work, moral suasion, introspection and planning.

•Hardball is not the opinion of the columnist featured above sectional on Jonathan’s qualification to stay in office and aspire for more, will continue to provoke the North and in turn be provoked by the North on the 2015 matter.

The president’s remonstrance will mean nothing to him, as it has meant nothing to the North’s impatient power brokers.

It is of course distressing that Chief Clark and many ex-militants have reduced the Jonathan presidency to a tokenistic gesture designed to placate the Niger Delta, with the president himself sometimes acting as if his legitimacy derived from the oil resource buried in the oil region. However, as tempers rise and pressure mounts on the president to abjure his re-election ambition, something he is unlikely to heed, expect the Niger Delta to get more bellicose, and the North more vituperative and insistent. No matter how the two regions react to each other’s politicking in the coming months and years, 2015 won’t go away soon or even at all.

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