The Nation August 13, 2012 by The Nation

Nigeria’s widest circulating newspaper

ACN: Akume still Minority Leader

NEWS

Page 15

•I’m not part of plot, says Mark

Okwechime, Duke join UBA board NEWS

Page 4

•Four women now on bank’s board

www.thenationonlineng.net

VOL. 7, NO. 2216 MONDAY, AUGUST 13, 2012

TR UTH IN DEFENCE OF FREEDOM TRUTH

•The Olympic flame is seen in the foreground at the stadium at the start of the closing ceremony of the 2012 Olympic Games in London...yesterday

N150.00

PHOTO: AFP

JTF kills 20 Boko Haram suspects in gun battle Soldier dies Policeman shoots deputy governor’s convoy

I •Aliyu

T was a bad weekend for members of the Islamic fundamentalist group, Boko Haram, with soldiers killing 20 of them in Maiduguri, the Borno State capital. One soldier died in the gun battle. In the Yobe State capital, Damaturu, gunmen engaged security operatives in a long battle, which shut down the town. Besides, Deputy Governor

From Joseph Abiodun, Maiduguri and Duku Joel, Damaturu

Abubakar Aliyu’s convoy was shot at. The Joint Task Force (JTF) in Borno State said it killed 20 suspected Boko Haram members during a shootout on Saturday night. Field Operations Officer Col. Victor Ebhaleme said in a telephone interview yesterday that one soldier was killed. Two others were injured dur-

ing the shootout. “We got intelligence report that some suspected Boko Haram terrorists were holding a meeting at a particular location in the metropolis. As we approached the venue, the terrorists opened fire on the JTF. Our men responded, which led to the killing of 20 of the terrorists. We lost one soldier and two others sustained injury,” Col. Ebhaleme said.

Gunmen yesterday engaged security operatives in a shoot-out at Bindigari, Damaturu. Police Commissioner Patrick Egbuniwe said the shoot-out ensued when security operatives went to the area on patrol. “Gunmen, as usual, have engaged our security operatives in a shoot-out. “The operation is still on in the Continued on Page 4

•CITYBEAT P7 •SPORTS P23 •CEO P32 •JOBS P37•POLITICS P43

THE NATION MONDAY, AUGUST 13, 2012

NEWS

Electronic

•Osun State Governor Rauf Aregbesola (second left), his Chief of Staff Alhaji Gboyega Oyetola, Secretary to Osun State Government Alhaji Moshood Adeoti (right) and Guest Speaker/President, Purpose of Life Foundation, Seattle, United States, Shaykh Khalid Yasin, at a Ramadan lecture at the Government House, Osogbo

Independent National Electoral Commission (INEC) chair Prof. Attahiru Jega has technically ruled out electronic voting in the 2015 elections. He said permanent voter cards would soon be distributed. He also hinted of a restructuring of the operations of the election umpire. Jega rated the conduct of Edo State governorship election very high and promised fairness in the October 20 governorship election in Ondo State. He also spoke on a wide range of issues in this interview with the News Agency of Nigeria (NAN) Permanent voter’s card coming soon

•Bayelsa State Governor Seriake Dickson and the Ambassador of Czech Republic to Nigeria, Jaroslav Siro, holding crucial talks on investment opportunities between Czech and Bayelsa State.

“As you know we did biometric data registration; before the end of this year, we will start issuing the permanent voter cards and these permanent cards that we are going to issue are chip-based, just like many of our own bank cards. “So they carry all the information on a microchip which is embedded in the card of the voter. “So what we believe we can achieve at the minimum by 2015, is that we can achieve 100 per cent authentication at the polling units.’’ “If a voter comes to the polling unit and brings out his or her card, we will be able to determine 100 per cent whether he is the legitimate holder of the card. “So the issues of people using other people’s cards to go and vote; the issues of stealing cards or even buying cards will be squarely dealt with and that, we believe we can achieve, God willing by 2015. “We already have all the data in our database; we are now going to issue the permanent voter cards; all we need to do between now and 2015 is to buy what I call card readers in which we will store all the information,’’ Jega said. The INEC chair explained further that card readers would be available in all the polling units to ascertain the legitimacy of the holder. Jega also said that the process of identifying valid owners of the card would go a long way in terms of improving the credibility and the transparency of the electoral process.

Electronic voting in 2015

•From left: Executive Director, Marketing, News Agency of Nigeria (NAN), Chief Jide Adebayo, Director-General, National Broadcasting Commission (NBC), Mr. Yomi Bolarinwa and Managing Director of NAN, Dame Oluremi Oyo, during Bolarinwa's participation in NAN Forum in Abuja...yesterday

“Technically, there is no proposal by INEC that it should be adopted in 2015. “Right now, if we are to introduce electronic voting in this country, we have to do a lot of piloting. “We have to do a lot of sampling of existing machines right now, because of that prohibition, we can’t even attempt to do it. “Now, if that is done in good time, and we are able to explore the possibility and it seems feasible, then obviously at that time we will tell Nigerians that it is feasible, and then maybe we should try it. “But right now, we haven’t gotten to that stage; right now what we want is the removal of a major hindrance for INEC to even begin to explore the possibility of electronic voting. “But what INEC is trying to do and then we are really again improving the use of technology in elections is that as you know we did biometric data registration.’’

Restructuring

•Group Chief Financial Officer, Notore, Mr. Femi Agbaje; Director-General, Commonwealth Business Council, Mr. Peter Longworth CMG, Agriculture and Rural Development Minister Dr. Akinwunmi Adesina and Head of Soft Commodities Research, Ecobank Group, Dr. Edward George at a panel on "Investing in Nigeria's Agricultural Value Chains" at the New World Nigeria Business and Investment Summit hosted by Bank of Industry (BoI) at Dorchester Hotel, London

“The problem is that in Nigeria, anytime you talk about restructuring and reorganisation, people think you are talking about retrenchment; it needs not be so. “In INEC, our restructuring and reorganisation is not synonymous with retrenchment. We are doing ev-

erything possible to bring efficiency and effectiveness and it can be done without the kind of massive retrenchment that people fear and expect. “We also need to motivate people. So, a lot of the reform efforts we are trying to bring has to do with what levels of motivation and adjustments in the conditions of service. “In a matter of a month, maximum two months, we will have the kind of restructuring and reorganisation that we would be pleased with in terms of actualising that vision of having the best election management body in Africa.’’

Transparency “We believe we have done quite a lot to lift the bar in terms of transparency and credibility of the electoral process. “The challenge for us as we move toward 2015 is to learn the lessons of all the elections which we have conducted and to continue to plan and improve upon the conduct of subsequent elections. “Many Nigerians want perhaps a perfect electoral system and it is possible to have near perfection in planning election, but unfortunately in the Nigerian context, things have been so bad for so long. As I quite often say, it takes a lot of time, energy and resourcefulness to be able to get there.’’

On Edo election “So, by all credible standards and measures, there was a high turnout this time around in Edo State than there has ever been in the election in the state since 1999. So, it is not correct to say there was voter apathy in Edo State. “We did our best to prevent it, but it was caused by a combination of factors and in Edo State, the delay was experienced in only two out of 18 local government areas. “We deployed a strategy in which we sent materials to the most difficult terrain areas first; to the farthest local government area first and then we distributed to the nearest local government areas last. “That’s why Oredo Local Government Area and the other local government areas which are within Benin City were the last where materials were distributed. “But by 3am, the materials had been distributed to what we call Supervisory Presiding Officers, who were supposed to go to the wards and distribute to the other Presiding Officers who go to the polling units. “But there was no security coverage, and we cannot move election materials unless there is security coverage. “Some of the Divisional Police Officers (DPOs) were posted to Edo on Thursday by the Inspector-General of Police and most of them did not get to their stations until almost midnight on the preceding Friday. “The police could not mobilise for a very long time. Though the posting of the senior police officers was done with the best of intentions, it af-

THE NATION MONDAY, AUGUST 13, 2012

NEWS

voting not likely in 2015, says Jega ‘ The police could

fected timely deployment of security to some areas. “The Supervisory Presiding Officers in Oredo Local Government Area, on the eve of the election, demanded that they must be paid in full before they proceeded for the election; it was unusual, it has never happened, but we had to pay them to ensure that materials now go to the field. “We must do everything possible to ensure that materials arrive in good time, but sometimes in spite of everything you do, challenges emerge in the field and they obstruct smooth conduct of the process. “In Edo State, no voter was disenfranchised. Where there were delays, the Resident Electoral Commissioner extended the time for accreditation and voting.’’

Ondo governorship election “Ondo State is not as riverine as any of these three states that I have mentioned and you can see that there was no complaint in the Bayelsa election about difficulty because of the place being riverine. “Wherever there is difficulty in terms of either security challenges or in accessibility these security agencies provide the support that we need. “Where it is necessary to lift materials by boat, the Navy provided the assistance. Where it is necessary to transport by air, the Air Force also provides the necessary assistance.’

Money politics “Obviously, it is unfortunate that in Nigeria there is a lot of use of money in politics. “It is unhealthy, it is illegal and we have to do quite a lot to minimise the role of money in politics and, we in INEC, it’s is one of the reforms measures that we hope to introduce long before 2015. “We in INEC are committed to ensuring that by 2015, we would have even more effective mechanism in place to be able to monitor campaign financing; to be able to monitor candidates’ expenditure and to also monitor a party’s expenditure. “You know it is a constitutional responsibility and we will continue to do it. I think a few months ago, we issued the results of the last audit and we pointed out parties that were in default and so on. “So really parties are not also serious about accountability, and we have our responsibility to keep on pushing them so that they become more transparent and more accountable in the way in which they keep their finances. “But I think it is part of politics that members of a party will become aggrieved and when they are aggrieved sometimes, they think the only option available to them is to actually leave that

not mobilise for a very long time. Though the posting of the senior police officers was done with the best of intentions, it affected timely deployment of security to some areas

‘ party and move to another party. “There is no doubt that the level of internal party democracy in our political parties leaves much to be desired “And we are doing our best to improve on our engagement with political parties so that we can encourage them to be more democratic in their outlook.

De-registration of political parties “The Constitution and the Electoral Act gave INEC the power to de-reg-

•Jega at the NAN Forum...yesterday

ister political parties and we have commenced that process and it is ongoing. “So, until there is a change in the legislation, obviously, any political party that does not comply with the provisions of the Electoral Act, we are obligated to de-register it. “So, it is an ongoing process. It’s a continuous process and we will do it. “I think there are very useful models of registration of political parties in other countries that we can learn from. “‘It is good to have a multiparty

PHOTO: NAN

system and to allow as many parties as possible to register, but we really need to sanitise the process of registering political parties. “This will ensure that only the most deserving in terms of their programmes, their constitution, and their physical presence in states and in localities that are registered. “But being a registered political party does not necessarily mean that you must field candidates in all elections. “It may be necessary for some parties to bid their time until they are ripe enough to field candidates at elec-

tions. “So, we think that’s the way to go rather than to limit the number of registered parties to just a few. “The fact of the matter is that INEC does not have the capacity to prosecute all offenders successfully because of the magnitude of offences. “There are still many cases which are still pending in the courts, but a successful prosecution is predicated on INEC prosecution. “Then the police must do the investigation and provide the necessary evidence, and the courts should hasten the process of prosecution.”

‘Security votes, hajj sponsorship avenues to steal’ Qatar Airways woos customers ANO State Governor Rabiu •Kwankwaso advises dialogue with Boko Haram with offline payment Musa Kwankwaso has said sesorship by government as another curity votes and Hajj sponsor-

ship are avenues to steal public funds. The governor, in this month’s edition of the London-based Africa Today magazine, said there would be no end to the Boko Haram insurgence unless the Federal Government dialogue with the group. He said: “You have to dialogue. In fact, there is no option.” Excerpts of the interview made available to The Nation by its publisher, Mr. Kayode Soyinka, quoted the former defence minister as saying security vote is a euphemism for siphoning funds that could have been used for development. He said it is wrong for governors not to account for how they spend security votes. Kwankwaso said: “They believe nobody should ask you. That it’s their money. No, it’s not your money. It’s the

By Olukorede Yishau

people’s money and you have no right to spend it like that without accounting for it. You have to account for it. These money was just going down the drains in the name of security vote. “We don’t have security vote here. I don’t believe in it. There is nothing to hide. If I am giving N10 to the Imam, it’s not my money. It should be recorded that I have given the Imam money to pray for the state. If he wants to pray for me, I will give him money from my pocket. That’s my own security. If I have given anything to anybody (the police, army), it should be there on record what you used it for.” Kwankwaso, who first governed Kano from 1999 to 2003 but failed in his re-election bid before staging a comeback last year, sees Hajj spon-

avenue to steal public funds. The governor said: “We are not sending anybody with government money to Mecca. Last year, we didn’t pay for any government-sponsored pilgrimage. This year too, we will not sponsor anybody. If you want to go, go. If you have money, go and stay at the Hilton. If you don’t have money, stay at home.” He condemned the spending of around N3 billion for the Hajj operation by the previous administration in 2010 alone, saying: “It’s not that they spent the money to send the people to perform Hajj. No. They just took the money because you won’t see the names or numbers of the people you will only see the figures.” Kwankwaso said he would rather use the money to fight poverty and develop the state.

ATAR Airways - the national airline of the State of Qatar - has announced the introduction of an offline payment solution for reservations made on www.qatarairways.com/ng. The new solution offers greater flexibility to passengers who can now book tickets online and pay later at a Qatar Airways reservations and ticketing office. Under the new dispensation, applicantions are to be completed within 48 hours of the booking, which attracts no additional booking fees. Once payment for the booking is made offline, applicants can check-in online and also select their preferred seat and meals. Passengers with credit cards can still complete their travel arrangements online. Qatar Airways Chief Executive Officer, Akbar Al Baker, said that the new offline payment solution was introduced to give passengers more payment options. He said: “Our passengers want to be able to book online 24/7 and instantly access our latest offers. So, this solution is both user friendly and gives passengers greater flexibility. “Qatar Airways is committed to continually innovating and improving our products and services to enhance the travel experience for our customers.” The Doha-based airways recently launched its new-look, customer-focused, interactive website, designed for a complete user-friendly experience.

THE NATION MONDAY, AUGUST 13, 2012

NEWS Okwechime, Duke join UBA board

•From left: The Diocesan Bishop of Kaduna Rt. Rev. Josiah Idowu – Fearon with the retired Bishop of Lokoja Rev. George Bako and the Bishop of Wusasa Rt. Rev. Ali Buba Lamido at the 19th Synod thanksgiving service of Kaduna Diocese at St. Christopher Church, Kaduna… yesterday

Police can’t find $620,000 bribe cash

HERE is the $620,000 bribe collected by House of Representatives member Farouk Lawan from businessman Femi Otedola? The puzzle remained unresolved at the weekend, the government is set to file charges against the lawmaker. Lawan was the chairman of the House adhoc committee on fuel subsidy probe. Also to be charged is the clerk of the committee, Mr. Borniface Emenalo. The trial of the suspects may start without the cash as the government is bent on going ahead with the arraignment in the light of the weight of evidence at its disposal. The Federal Government may file the charges this week, barring last-minute hitches. The Anti-Corruption Network yesterday asked the government to also arraign Otedola, who said he handed Lawan the cash in a sting operation arraigned by security agents. Lawan accepted collecting the money but refused to surrender it, saying it is proof of Otedola’s pressure on him to remove the oil magnet’s company from the list of those indicted in the subsidy probe. According to a source, the Special Task Force (STF) which investigated the case submitted its report to the Inspector-General of Police, Mohammed Abubakar and the AttorneyGeneral of the Federation, Mohammed Adoke (SAN), without any trace of the bribe cash.

•AGF set to arraign Lawan, Emenalo

From Yusuf Alli, Abuja and Emmanuel Oladesu

The source, however, claimed that “the evidence the police made available to the AGF were enough to sustain the prosecution of the suspects”. The source added: “The STF team tried to locate the bribe sum, which is vital to the trial of the suspects, but it could not because of vested interests in the matter. This is a high-profile case with high-profile intrigues. “But hope is not lost as there are other evidence ancillary to the fact that the bribe was given and taken. “The prosecution may have to rely on some clips and statements made on oath by some of those interrogated. The STF did a good job and the investigation was far-reaching although without the bribe cash. “With this investigation, you will appreciate that the Police did a thorough job.” Asked if the police could determine whether the bribery was a sting operation or not, the source added: “A sister agency was involved and we presented the raw facts to the AGF which I cannot divulge. “There are so many angles to this case; you have to wait for the trial to begin.” A source said yesterday: “All hands are on deck to file charges against Lawan and Emenalo, pending the return of the

lawmaker from the lesser Hajj. “The two suspects may be arraigned before a high court by the government prosecutor this week.” A source in the defence team said: “We are ready for the trial, let them go and file charges.” Another source said: “As long as a sting operation could not be established by the police, the whole case will become flat.” The Executive Secretary of Anti-Corruption Network, Mr. Dino Melaye, said the government should put Otedola on trial for the court to decide the guilty. Melaye, a former member of the House of Representatives, said: “From what we have seen and heard, they have exempted the name of Mr. Femi Otedola from the list of those to be prosecuted. “We are insisting that the three actors in the bribery saga (Otedola, Lawan and Emenalo) should be put on trial. The government should let the court determine whoever is guilty. “Anything short of that, we are going to mobilise Nigerians against the trial of Lawan and Emenalo.” Responding to a question, Melaye said the Network will resist plans to make Otedola a witness because “from police findings, they cannot call it a sting operation for lack of evidence.”

“If the government does not prosecute Otedola, it would amount to an attempt to waterdown the case and acquit him. “Nigerians are interested in this matter. Let the three suspects face trial and the proceedings of the court will enable them to have full insight into what transpired. The choice of a Senior Advocate of Nigeria, Chief Adegboyega Awomolo (SAN), as counsel for the state is completely unacceptable because he is the one standing in defence of ex-Speaker Dimeji Bankole and a Judge in the case of an alleged N6billion fraud. “So, there is actually a conflict of interest. A man who is standing against the state cannot at the same time prosecute for the state. You cannot approbate and reprobate at the same time. And public interest should be considered in this matter.” Melaye said: “We will stage a protest. We have a stake in this matter.” But a source said: “The truth of the matter is that Chief Awomolo withdrew from the defence team of the former Speaker. The Network should have done its homework very well. “Also, Awomolo has been handling landmark cases for the Federal Government, including being a counsel to the Independent National Electoral Commission (INEC). He has a reputation that no one can tarnish at all.”

State Police: Senator seeks referendum option

REFERENDUM to enable Nigerians decide on whether or not to adopt a state policing structure is necessary, Senator Olubunmi Adetunmbi said yesterday. Adetunmbi, vice chairman of Senate Committee on Interior, who spoke in Abuja, said he was surprised at the volte-face by North’s governors on the issue, having earlier surpported the idea at the Nigerian Governors’ Forum. Wondering what might have given rise to “this sudden regional colouration to the whole consensus on state police” the lawmaker said conducting a referendum in the northern part of the country on the subject had become needful. He said, “In any case, what

From Onyedi Ojiabor, Abuja

is wrong in conducting a referendum? “Why can’t we find out from ordinary Nigerians in this part of the country, the civil society in this part of the country, whether indeed state police is something they consider healthy or not. He described centralised police system as outdated and inefficient for a modern democratic federation. Adetunmbi drew similarity with what obtains in the United States , United Kingdom , India , Argentina , Pakistan and Ethiopia to buttress the need for Nigeria to toe the path of other democratic federations.

He said: “Federal Police in the United States has full authority to enforce federal laws at all levels. “There are several federal agencies that have mandate for enforcement of federal laws and matters that are within the exclusive power of the federal government. “In a similar vein, all states have statewide police organisations that provide law enforcement duties in states. “Law enforcement in counties or what we call local governments, is provided by Sheriffs’ Departments or County police. “They don’t stop there, municipal police range from oneofficer town to large organisations like the New York City

Police Department. “In fact, most US cities and towns have dedicated police departments. “The United Kingdom indeed has territorial police forces that carry out police duties in defined jurisdictions that make up the UK . “There are separate police authorities for England.” Wales , Scotland and Northern Ireland. “Most of the day-to-day policing of London is the responsibility of 33 Borough Operational Command Units (BOCUs) under the coordinating authority of the Metropolitan Police Service. “Ethiopia ’s federal police to investigates federal crimes and Continued on Page 59

INANCIAL giant United Bank for Africa Plc has appointed two women Mrs. Rose Ada Okwechime and Mrs. Owanari Duke - to the Group board. The appointments were made at a meeting of the Board of Directors in China on July 13, according to a statement from the bank. The appointments, which have received the approval of the Central Bank of Nigeria (CBN), bring to four the number of women on the board. Mrs. Rose Ada Okwechime is the Managing Director of Abbey Building Society; a multibillion naira mortgage institution. She has served as a public company director for over 20 years and her experience of the financial services industry includes service at the Bank of England. Mrs. Okwechime was a Non-Executive Director on the Boards of Standard Trust Bank Plc and United Bank for Africa Plc. She is a Fellow of the Chartered Institute of Bankers of Nigeria; the Chartered Institute of Bankers, London; the Institute of Brand Management; the Institute of Direct Marketing of Nigeria and a member of the Institute of Directors of Nigeria.

Mrs. Duke is a former First Lady of Cross River State and a lawyer, a specialist in mediation and dispute resolution and a philanthropist. She has been the Managing Partner of the law firm of Duke & Bob-Manuel and also the Executive Chairman of Allied Merchants & Brokers Limited. She is a Member of the Board of UNCTAD (United Nations Centre for Trade & Development) and the Country Director of EMPRETEC Nigeria Foundation; a UNCTAD Private Sector Support Initiative to assist Nigerians achieve higher levels of productivity and competitiveness among Small and Medium-Scale Enterprises SMEs. Mrs. Duke graduated from Ahmadu Bello University, Zaria, with LLB Hons in 1983 and a BL at Nigerian Law School, Lagos in 1984. “We welcome these distinguished members to our Board and look forward to benefiting from their wealth of experience, as we continue to provide the required leadership and drive to grow shareholder value and delivering on our objective of being a leading African financial services institution” said Chief. I C Ogbue, Chairman, UBA Board of Directors.

JTF kills 20 Boko Haram suspects in gun battle Continued from Page 1

area. So, we cannot confirm casualties yet. Other parts of the town are calm and security operatives are on top of the situation,’’ Egbuniwe said. Residents rushed indoors for safety as the gun battle raged. Egbuniwe said church services in the metropolis went on smoothly. “Apart from the areas, no other place is affected as normal activities went on in some parts of the state. Normal church services went on without any hitch at all churches in the state capital,” the police chief said. He said no casualty was recorded on the part of the JTF but that the sect suffered “serious” losses which he could not estimate. Seven days ago, a suicide bomber ran into a military convoy in Damaturu, killing 10 members of the JTF. A policeman fired at the convoy of the deputy governor at a check point on Maiduguri road, near Maisandari. Aliyu was returning from his farm at about 12.30pm when the incident occurred. A source told our correspondent that the police suspected a vehicle at the back of the convoy following which they fired in the air. The vehicle was carrying some security operatives in the convoy of the deputy governor. “What actually happened was that the police did not shoot at the vehicle but shot in the air. There was a break in communication. When the convoy passed, the other security men were telling the police at the check point to allow the last Hilux vehicle to pass through because it was a bit far from the convoy but a policeman instead thought that the Hilux vehicle was not part of the convoy and consequently fired - to scare the occupants. “The DPO has explained the situation and I heard that the policeman was commended

for his alertness”, the source said. Egbuniwe confirmed the incident, saying investigation was on. Another killing spree was averted as gunmen were stopped from storming a Church. But a policeman was killed at the All Saints Catholic Church, Kanoyel in Gombe State. A source told the News Agency of Nigeria (NAN) that the gunmen arrived at the church premises when the parishioners were coming out of the service and fired at the policemen. Rev. Fr. Williams Ochai, the Parish Priest, told NAN that the gunmen opened fire on the policemen deployed to guard the church during the mass. According to him, as soon as the parishioners heard the gun shots, they immediately shut the gate. One of the policemen died “instantly”. The other was injured. Gombe Christian Association of Nigeria chairman Rev. Abare Kalla described the incident as unfortunate. Kalla said CAN got information that there would be an attack but did not know where it would occur, adding that security agents were informed. The chairman said the aim of the attackers was to enter the church but that they could not succeed because of the fence. He confirmed that a policeman was killed in the incident and another was injured. Kalla commiserated with the family of the policeman and prayed for the recovery of the injured. Fwaje Atajiri, a Deputy Superintendent of Police, declined comments, saying only the commissioner could speak on the issue. Gunmen stormed - the Deeper Life Bible Church – Okene last Monday, killing 17 people during a Bible Study.

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THE NATION MONDAY, AUGUST 13, 2012

NEWS Resign for peace sake, Lam Adesina urges Jonathan From Oseheye Okwuofu, Ibadan

ORMER Oyo State Governor Lam Adesina has a piece of advice for President Goodluck Jonathan – he should resign, if it will bring peace. Adesina’s advice came on the heels of wanton destruction of lives and properties by the fundamentalist Boko Haram sect in the North. A similar counsel from the sect asking the President to either covert to Islam or resign as the condition for peace was spurned by Jonathan. Adesina, who spoke during the 2012 Ramadan Tefsir lecture held at the Gbadamosi Olowoporoku Adesina Memorial Mosque, Felele, Ibadan, admitted that impeachment through voting remains the conventional way of removing or sacking a president. According to the former governor and one of the leaders of the Action Congress of Nigeria (ACN), before the coming into power by President Jonathan, the country was relatively very peaceful. He said: “After a thorough assessment of the situation, it is my belief that we must achieve peace at this point in time because if there is no peace now, then Nigeria is going to collapse. “Therefore, while I am calling on the Boko Haram sect to soft-pedal, I am calling on President Jonathan, if it is his resignation that will bring about peace in Nigeria, let him resign. “To me, it has become abundantly clear that peace in Nigeria may not be achieved by President Jonathan. These people (Boko Haram) are bent on evoking violence on the people of this country. “If there is a way by which President Jonathan can stop the Boko Haram, let him continue, but definitely I don’t think this thing can continue indefinitely. Every peace-loving Nigerian is tired of what is happening today. That is why I am saying if it is resignation that will bring peace in Nigeria, let him resign.” Speaking on: “The effect of fundamentalism on Islam,” the Head of the Department of Arabic and Islamic Studies, University of Ibadan, Prof Abdul Rahmon Oloyede, said the activities of the Boko Haram sect in the past few months have proved wrong those associating Boko Haram with Islam. He described the sect as a tool in the hands of some politicians. Oloyede, who explored the effect of fundamentalism on Islam across the globe, called on governments to make religious studies compulsory in all schools. By so doing, he said, Nigerians would be well enlightened on the tenets of their religion, especially Islam. At the occasion were the Aare Musulumi of Yorubaland, Alhaji Azeez Arisekola Alao, the Iyalode of Ibadanland, Chief Mrs. Aminat Abiodun, former Power Minister Elder Wole Oyelese, the ACN chair in Oyo State, Chief Akin Oke, Head of Department, Arabic and Islamic Studies, University of Ibadan, Prof Abdul Rahmon Oloyede, Caretaker Committee chairmen of the 33 council areas in Oyo State and notable Islamic leaders in the state among others.

NNPC, affiliate stations at war over alleged N795m branding charge A COLD war is brewing between the Nigerian National Petroleum Corporation (NNPC) and its affiliate retail stations over alleged imposition of N795 million branding charge. The Corporation has more than 265 affiliate stations across the country. Besides the 37 mega-stations and 12 floating stations, owned by NNPC, the Corporation adopted more than 265 stations to alleviate consumers’ pains in times of fuel scarcity. It was learnt that NNPC may rake in as much as N795 million from the affiliate stations, if the levy succeeds. Owners of the affiliated stations are being asked to pay N3 million branding charge per station. Some of the owners alleged that despite the painting of their mega stations on their own, NNPC, through its subsidiary (NNPC Retail

From Yusuf Alli, Abuja

Limited), has directed them to pay N3 million per head. NNPC Retail Limited had, in a notice to some marketers, indicated that the charge amounted to the cost of branding the affiliated filling stations. The notice reads in part: “NNPC Retail Limited Affiliated Stations are not just painted but professionally branded with NNPC Retail Limited brand name, colours, logos, insignia and totems which are duly registered trademarks. “Only N2.5 million is applied towards the branding of an affiliate station while the balance of N500, 000 is retained by NNPC Retail Limited as brand deposit. “The brand deposit shall, however, be refunded upon the removal of NNPC Retail Limited’s brand

name, colours, logos, insignia and totems de-branding in the event of expiration or termination of the contract. “Further note that all brandings are done by approved vendors appointed by NNPC Retail Limited in order to maintain the quality image and goodwill it has built over the years.” The NNPC management, in June, met with the owners of the stations over the levy but no consensus was reached when the corporation said it would deduct the N3 million levies from the N10 million deposit of each affiliate station for the supply of products. Some of the owners said they had made representation to the NNPC but the management was adamant in going ahead with the levy. One said: “The information on the levy was passed

to us at a meeting with some NNPC officials on June 18, 2012. “All dealers were told of plans by the corporation to deduct N3 million from our products deposit as cost of painting filling each station. “Yet NNPC was not involved in painting some of these mega stations nationwide. We do not know why they have to do this to us. “Most of us paid N10 mllion as deposit for lifting products and if NNPC has to deduct N3 million for service not rendered, we cannot just understand. “We suspected that this emergency levy might be a ploy by some people to make money from the system. We beg the new GMD of NNPC, Andrew Yakubu, to assist us. “We are poor people in business but the NNPC is out again to deplete our

capital. When some of us painted our filling stations, we did not even spend as much as N3 million. “We see this step as just an attempt to extort us. This is really a wrong signal to up and coming investors in this retail sector.” A source within the NNPC Retail Limited, who spoke in confidence, said: “Some of the owners of the affiliate stations have not been truthful. We painted these stations and passed the bill to them for payment. “Nobody is out to exploit any owner as being claimed. As for those who do not want to defray the cost, they are free to immediately remove all NNPC Retail Limited colours and signs after which their security deposit would be refunded upon closeout reconciliation with our Finance and Accounts Department.”

Boko Haram painting Islam in bad light, says Akanbi From Adekunle Jimoh, Ilorin

•From right: Guest Speaker Prof Niyi Osundare, social critic and Campaign for Democracy chair Dr. Joe Okei-Odumakin, Mr. Femi Aborisade and the President, National Association of Ondo State Students, Ibadan Polytechnic chapter, Mr. Daso Feyiropo at a public lecture organised by the students

Vote of confidence for Adeboye’s leadership of RCCG •60th Convention closes with ordination of 735 pastors, farewell service

FAREWELL service and the ordination of 735 full pastors dropped the curtain on the 60th National Convention of the Redeemed Christian Church of God (RCCG). The service, which was dominated by special thanksgiving, also witnessed a renewal of confidence in Pastor Enoch Adejare Adeboye as the General Overseer of the church. Through the Governing Council, the church said that since Pastor Adeboye was divinely picked to succeed the founder of the church, his successor would also emerge through a divine arrangement. Those who were ordained two decades and a decade ago as pastors as well as the family of the founder, the late Pa Josiah Akindayomi, took their turns for a special thanksgiving after Pastor Adeboye’s family and the members of the Governing Council opened the floodgate.

‘

The ordination of pastors in the RCGG is the highest office is that of a pastor and the general overseer himself is a pastor.

’

Bunmi Ogunmodede,

Pastor Adeboye, who proclaimed the upgrading of the former assistant pastors said the more than the 700 brethren were joining his club as they would never be ordained again for as long as they remain in the RCCG family. According to him, the ordination was a critical moment in the lives of the pastors, who have attained the highest pastoral position in the church. Before he proclaimed them pastors and prayed, his lieutenants, led by his wife, Pastor Folu, had laid hands and

•Pastor Adeboye

anointed the heads of the pastors. “The ordination of pastors in the RCGG is the highest office is that of a pastor and the general overseer himself is a pastor,” Pastor Adeboye said before the pastors filed out to be anointed. Proclaiming them as pastors, he said: “You are ordained pastors in the RCCG in the name of the Father,

and of the Son, and of the Holy Ghost. “The almighty God will overshadow you and the Holy Spirit will be your strength. Whatever you bind on earth will be bound in heaven and whatever you loose on earth shall be loosened in heaven. “Whatever you ask to come will come and anything you ask to go will go. God will use you for His glory. You will not fail, you will not fall. The Lord will be with you and it shall be well with you.” Pastor Folu read the only Bible passage, taken for the service from Psalm 150 while Provincial Pastor/Special Assistant Pastor J. T. Odesola took the sermon entitled: “The House in View”. The 60th anniversary with “Come Up Higher” as its theme opened on August 6 with the ordination of more than 7000 deacons and deaconesses. A Bible quiz and sporting activities were some highlights of the week-long programme.

OR the erstwhile President of the Court of Appeal, Justice Mustapha Akanbi, members of the Boko Haram sect are desecrating Islam through their activities. Justice Akanbi, pioneer chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), made the remark in Ilorin, the Kwara State capital at the weekend. It was at the 2nd Ramadan lecture organised by Maassalaam Islamic Foundation in conjunction with Mustapha Akanbi Foundation. Justice Akanbi said: “The sect has given Islam a bad name. When we were growing up, there was nothing like Boko Haram. All this nonsense can be remedied if men and women of faith muster the courage to enlighten us more about Islam. Akanbi’s lecture was entitled: “The Muslims and Society in Nigeria: Challenges, prospects and solutions.” The Grand Khadi of the Kwara State Sharia Court, Justice Idris Haroon, who chaired the occasion, said the corporate existence of Nigeria was being threatened by the challenges facing Islam. His words: “More than ever before, Islam today is encountering a lot of challenges, which are threatening the nation’s sovereignty and unity. “The co-existence of this great country and its unity, which was laboured for by our forefathers and preserved by those great patriotic Nigerians, is now at the verge of collapse. “Unless God-fearing ones among us rise quickly, it may be too late to rescue this nation from the looming doom. “One will be amazed and totally embarrassed, considering the message of Islam and what is now happening in our land regarding freedom of worship, attacks here and there from both Muslims and Christian against one another.”

THE NATION MONDAY, AUGUST 13, 2012

NEWS Fayemi: I can’t influence Judiciary EKITI State Governor Kayode Fayemi has said his administration has no reason to interfere with the dispensation of justice because of his strong belief in the rule of law. The governor spoke in Awo-Ekiti during a thanksgiving service for Justice Ayodeji Daramola as the Chief Judge of the state. Dr Fayemi, who spoke on the series of court cases that the government has lost at the Ado-Ekiti High Court, restated the commitment of his administration to upholding the rule of law. He said he would not do anything to undermine the Judiciary. The governor noted that it is normal for the government to lose cases if its facts on them are not well presented before judges. Fayemi hoped that judges would always attend to cases in fairness and justice in accordance with the rule of law “regardless of whose ox is gored”.

Osun Osogbo: Govt building pavilion From Adesoji Adeniyi, Osogbo

AS this year’s Osun Osogbo Festival begins today with Iwopopo (spiritual cleansing of the path leading to the palace of the Ataoja of Osogbo), the Osun State Government has begun the reconstruction of the pavilion at the grove. Governor Rauf Aregbesola has inaugurated an inter-ministerial 16-man committee, headed by his Special Adviser on Culture and Tourism, Ladipo Soyode, to plan the celebration. Addressing reporters yesterday in Osogbo, Soyode said: “The old pavilion has been pulled down and engineers have been working day and night to ensure that the first phase of the project, which is the platform, is completed soon.” He said work would still go on at the grove, even after the festival, adding that the governor wants to make Osun Osogbo a world heritage site.

Police warn vehicle owners THE Lagos State Police Command has warned owners of abandoned vehicles at Igando Divisional headquarters to remove them or lose them to auction. In a statement by the command’s spokesperson, Ngozi Braide, a Deputy Superintendent (DSP), the police gave the brands and number plates of the affected vehicles as Nissan Quad space bus with registration number (Lagos) CW923LSD; BMW (Lagos) XK 817LSD; Honda Legend (Lagos) JU462AAA: Toyota Camry (Lagos) CW18SMK; and Toyota Hiace bus with Lagos commercial colours and registration number (Lagos) XV282KRD. The police gave the owners 21 days to claim them.

Oke remains Ondo PDP candidate, says Tukur From Damisi Ojo, Akure

•The wife of Ekiti State Governor, Erelu Bisi Fayemi (right); wife of the Secretary to the State Government (SSG), Mrs. Modupe Owolabi (left) and wife of the Commissioner for Arts, Culture and Tourism, Alhaja Fatimah Jinadu, during the second annual Iftar (breaking of fast), distribution of gifts to Mulsim women and dinner hosted by the governor’s wife at the Goverment House Mosque, Ado-Ekiti, for this year’s Ramadan.

Alleged witchcraft: Ekiti monarch denies links with woman’s death HE monarch of Omuo-Ekiti in Ekiti State, Oba Noah Omonigbehin, has denied the allegations linking him and members of his community with the killing of Mrs. Rebecca Adewumi for alleged witchcraft. Mrs Adewumi, 70, was allegedly beaten to death on June 30 by youths, who accused her of afflicting her stepson, Ola, now late, with an ailment. Oba Omonigbehin said the community did not know how the woman died. Addressing reporters at the weekend in Ado-Ekiti, the state capital, on behalf of the monarch, the Odofin of Omuo-Ekiti, High Chief Sunday Olonitoke, said the allegation was concocted to stain the town’s name. Olonitoke denied reports that Mrs Adewunmi

•Family vows to ensure justice From Sulaiman Salawudeen, Ado-Ekiti

was humiliated and tortured to death by the people of the community. He said: “An autopsy has been conducted on the body of the deceased twice and it was reported that she was not poisoned, starved or beaten to death, as claimed by her family. “The body of the deceased was physically examined and there was no proof that her fingers were cut, or her hair shaved with broken bottles, body roasted, or her body mutilated as a result of beating or the application of any other thing, as claimed by her relations.” The chief said the autopsy was done by a qualified pathologist with the Adewumi family in attendance.

According to him, it is unfair that the monarch’s name is being linked with an incident which he knew nothing about. But the late Mrs Adewumi’s family has vowed to ensure that their mother’s killers are brought to justice. It said the matter “seems to be taking a strange turn”. The family rejected the result of the autopsy, alleging that it was a travesty as “only physical examination was done and even physical signs of torture manifest on the body were misinterpreted by the pathologist”. Speaking with The Nation on phone, the family’s spokesman, Mr. Gabriel Omokanju, said: “It is a

matter of time for the actors behind the dastardly and barbaric killing of Mrs Adewumi to be exposed. “Despite all the antics being played up now and again, we will continue to pursue the case to get justice. It is said that the mills of justice grind slowly but they grind exceedingly surely. “We suspected foul play and grand conspiracy a long time. As I am talking with you, no one has been arrested and it is not likely that anyone will be over the killing, despite mounting proofs suggesting this. “We can only appeal to the public and notable Nigerians to save us from a grand scheme to sweep blue murder under the carpet, even to wipe our family out of the town by all means.”

ACN in UK inaugurates Akeredolu’s campaign HE Ondo State Action Congress of Nigeria (ACN) in the United Kingdom (UK) at the weekend inaugurated the campaign team for its governorship candidate for the October 20 election, Mr. Oluwarotimi Akerdolu (SAN). It is called the Aketi Group Worldwide Campaign (AGWC). The event was attended by ACN stalwarts, including the party’s state chairmen in the UK. The chairman of the party’s Administrative Committee, Dr. Philip Edaewor, noted that the poll is a mustwin for ACN to rule the state from February 2013. The UK Southwest Chairman and member of the Administrative Committee, Mr. Kehinde Ojutalayo, said ACN would solicit the necessary support throughout the region to ensure the party’s victory. The chairman of the group, Tunde Doherty, said the vi-

From Damisi Ojo, Akure

sion of ACN government is to make Ondo State the economic, industrial, technology-driven and commercial hub of the Southwest. According to him, the party wants to ensure that the residents’ quality of life is sustained at the rural and urban centres on the principles of regional competitiveness and integration. Doherty said the five cardinal principles on which this could be achieved is set

on AKETI with the acronym: A-Agriculture, K-Knowledge, E-Entrepreneur, TTechnology, and I-Industrialisation. Doherty inaugurated the campaign group while members were selected from various regional and state groups that constitute the ACN UK chapter and other groups representing Ondo State Communities. Akeredolu hailed the group on its efforts to ensure ACN victory in the October 20 poll.

He promised to deliver good governance based on social justice and fairness for every indigene, a reflection on his days as the Nigerian Bar Association (NBA) President. Members of the committees were introduced and their terms of reference explained. The meeting heralded the beginning of an extensive campaign and fund raiser for the actualisation of the collective dreams of Ondo people.

HE National Chairman of the Peoples Democratic Party (PDP), Alhaji Bamanga Tukur, at the weekend said the party’s executives and the Presidency have endorsed Chief Olusola Oke as the party’s governorship Ondo State candidate in the October 20 election. Tukur was reacting to the rumour that the party’s national executives and President Goodluck Jonathan have endorsed Governor Olusegun Mimiko of the ruling Labour Party (LP) for a second term. He spoke at the “Unity Rally” in Akure, the state capital, to begin the campaign of the party’s former National Legal Adviser, its candiate. The rally was attended by party leaders, chieftains and supporters, including former President Chief Olusegun Obasanjo. Tukur, who was represented by PDP Deputy National Chairman, Dr. Sam Jaja, urged members to begin door-to-door campaigns for Oke. He said: “We are solidly behind Oke’s candidature. The PDP has picked a credible candidate for the people of the state. We know his antecedents in the PDP and in the state.”

‘Ehinlanwo is Ondo CPC candidate’ From Damisi Ojo, Akure

HE Ondo State chapter of the Congress for Progressive Change

(CPC) at the weekend re-affirmed the election of its governorship candidate for the October 20 poll, Prince Soji Ehinlanwo. The party said its primary on August 2 in Akure, the state capital, produced the consultant with the European Commission (EC) as its candidate. The party’s Women’s Leader in the state, Mrs. Damilola Oluyemi, was picked as Ehinlawo’s running mate. A statement by the party’s Publicity Secretary, Mr. Olu Falarungbon, said the governorship primary was witnessed by stakeholders, including officials of the Independent National Electoral Commission (INEC) and security officials. It said leaders and officials of the CPC at the national and Southwest attended the primary.

Oyo to begin e-payment of retired council workers, others

HE Oyo State Government is to begin e-payment of gratuity and pensions of retired local government workers and primary school teachers. In a statement at the weekend in Ibadan, the state capital, the Chairman of the Local Government Staff Pension Board, Chief Lasisi Ayankojo, said the government discovered a

N2,608,398,709.29 pension fraud in the board. The interim investigative report of the Local Government Service Commission into the account of the board between September 2010 and March 2011, which revealed the alleged fraud, indicted 10 civil servants. Eight of the suspects are being detained by the po-

lice, while two of them are said to be on the run. Ayankojo said the electronic payment is meant to streamline the payment of the benefits due to them and end the hardship accompanying the old system of payment. He said the board engaged the services of Skye Bank PLC to do a biometric and payroll

verification of the retired local government workers and primary school teachers. The verification, which begins today, will hold in all the 33 local government headquarters. Ayankojo urged the affected retirees to cooperate with the bank officials to make the exercise a success.

THE NATION MONDAY, AUGUST 13, 2012

CITYBEATS

Motorcyclist arraigned for raping minor By Tumininu Owolabi

A 45 YEAR-OLD man, Alabi Bakare has been arraigned before a Lagos Magistrate’s Court in Ikeja, for allegedly having carnal knowledge of a five year-old school girl. Bakare, a commercial motorcyclist is married with two wives. Prosecuting Assistant Superintendent of Police (ASP) Barth Nwaokoye told the court that the accused had also raped two other minors, whose names were simply given as Jumoke 4 and Azeezat 3. The prosecutor said the accused committed the offence on August 3, about 7 pm at 19, Oluwakemi Street, Alapere, Ketu, Lagos. The offence, according to Nwaokoye, is punishable under Section 137 of the Lagos State Criminal Laws Vol. 44 No. 11 of 2011. Nwaokoye alleged that Bakare has been sexually assaulting the children over time, before he was caught. He said it was one Kehinde Ogundare of the same address who caught him raping the girl and reported the case. The prosecutor said Bakare as a commercial motorcyclist and a neighbour took the children to school every day. He said the accused had access to the children because of the familiarity. The accused pleaded not guilty. Chief Magistrate A.O. Isaac ordered him remanded in prison custody and adjourned till August 13.

Man docked for ‘stealing’ Igwe’s car A 30-year-old man, Michael Oguike, has been arraigned before an Igbosere Magistrate’s Court for allegedly stealing a Mercedez Benz C350, valued at N8million belonging to the late Igwe GCN Ezeude Ezendu. He was said to be a driver to the late Igwe. Prosecuting Inspector Peter Nwangwu said Igwe’s son Charles, reported the matter to the police when Oguike did not return with the car. Nwangwu said the accused claimed it was the 22 year-old Charles who told him to bring the car to Lagos and keep it. He also claimed that it was Charles who changed the car’s numberplate. The Igwe’s son was also arrested and was later released by the family. Nwangwu said the car’s number plate was changed from HRH 12 GG to NR 297 AAA, with a fake vehicle document. Oguike, the prosecutor said, alleged that he went to meet his wife, Chidinma, who was about to put to bed and that affected his early delivery of the car to the Igwe’s son. The prosecutor added that when the accused’s wife was interrogated she claimed she had not seen her husband in a while. The accused was charged with conspiracy, fake document and stealing. He pleaded not guilty to the offence, which contravenes Sections 409, 363 and 285 of the Criminal Laws of Lagos State, 2011. Magistrate F.O Abegunde Davies granted him N250,000 bail with two sureties in the like sum. The matter was adjourned till September 14.

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NURTW chair gets one year jail for assault

LAGOS Magistrate’s court has sentenced the chairman of Bariga Branch of the National Union of Road Transport Workers (NURTW), Comrade Ayoola Ogunsakin, has been sentenced to one-year imprisonment with hard labour for assault. Magistrate Olagbegi Adelabu found Ogunsakin guilty of assaulting one Obasin Ehi Yusuf, a member of Self Employed Commercial Drivers Association of Nigeria (SECDAN). The judge however, granted him an option of N50,000. Magistrate Adelabu also banned NURTW for two years in Bariga for peace to reign. Prosecuting Inspector Rachael Williams had accused Ogunsakin of assaulting. Ogunsakin was charged with

By Tumininu Owolabi

Oladipupo Fakoya on a onecount charge of assault, occasioning harm. They pleaded not guilty. The prosecutor said the convict committed the offence on May 20, about 11:15am on Odo Oba Street, Bariga. The offence, according to Williams, contravened Section 355 of the Criminal Code, Laws of Lagos State 2003. The Investigating Police Officer (IPO), in charge of the case W/Corporal Antonia Okoli, testified that “both parties have been disturbing the peace of Bariga and that the Divisional Police Officer (DPO) usually tries to settle the matter.

Okoli said: “Both parties had gone back to foment trouble after the DPO had mediated and urged them to uphold peace.” The prosecutor alleged that Comrade Ogunsakin threatened to attack members of SECDAN. She also alleged that NURTW SECDAN members were attacked by the members on the said date. The prosecutor said: “It was Comrade Ogunsakin who ordered his boys to beat the SECDAN members up and even ordered them to kill at least three of them.” Magistrate Adelabu discharged and acquited Fakoya. Mrs. Adelabu held that the convict contradicted himself

severally that his evidence became totally unreliable before the court. She said his statement with the police is distinctively different from his evidence in court. Magistrate Adelabu found him guilty as charged and sentenced him to one year in prison with hard labour. She noted that the case is one of the numerous cases involving members of NURTW and SECDAN in her court. Mrs. Adelabu therefore sent out a loud signal that any person, group of persons, unnamed individuals or groups who are interested in turning the state into battlefields and found contravening the laws of the land will be sufficiently and competently dealt with by the court of law.

Railway urged to sustain modernisation efforts

HE management of Nigerian Railway Corporation (NRC) has been urged not to relent on its efforts at easing the growing transportation challenge. An official of the Lagos State Judiciary, Chief Magistrate Adesola Ikpatt, gave the advice when some senior NRC officials led by the Director, Administration, Ahmed Gusau visited her office. NRC’s Assistant Director, Public Relations David Ndakotsu, in a statement, quoted Mrs Ikpatt as saying that there was a greater need now than ever before, for a transformed and efficient rail transportation system because of its multiplier effect on the nation’s socio-economic life. Mrs Ikpatt said the judiciary, in assisting to ensure a revamped rail system, would ensure diligent and prompt handling of cases relating to its operations, particularly those bordering on abuse of NRC’s

By Eric Ikhilae

infrastructure and right of way. Railway, she said, is indispensable to any nation’s economy because it has the capacity to bond people and make towns and cities livable. She praised the resilience of the NRC despite decades of neglect. Gusau said the visit was a management decision to partner with the judiciary across the country as part of strategies to safeguard railway facilities nationwide. He said the ongoing rehabilitation of railway infrastructure was in furtherance of the Federal Government’s intention to allow private participation in railway operations with the planned amendment of the Railway Act 1955. Gusau said the rehabilitation and the amendment of the Act

•Gusau presenting a souvenir to Mrs Ikpatt, at the Ebute Metta Magistrates’ Court, Lagos during the visit.

would made the sector attractive to private investors. He said the next phase of the NRC’s expansion programme would be to connect seaports and airports with the existing rail network.

He said the NRC was undergoing transformation because of the government’s “huge investment” government to ensure that the corporation expands and modernises.

Lagos Treasury Office implements transparency service charter

HE Lagos State Treasury Office (STO) has launched its One-Stop Public Enquiry Services (OSPES), becoming the first government agency to adopt the policy launched five weeks ago by Governor Babatunde Fashola to foster responsiveness and transparency. According to Mr. Toba Otusanya, Director-General of the Office of Transformation, OSPES is a derivative of a lager vision of transforming the state into Africa’s model mega city. “The idea is rooted in the fact that the sustainability of any mega city is premised on the availability of an enhanced service delivery system,” he said. The Accountant General, Mr. Akin Ambode, said STO’s OSPES office is “the first face of Lagos State Government” that the public should see. It is an important office considering that government exists solely for public service, he said. The operations of OSPES demand that the implementing agency creates an information desk managed by resourceful personnel who have fluid knowledge of all the operations, offices, and key officers of the agency so that all public enquiries and complaints can be dealt with professionally, he said. “We are laying a new foundation for re-engineering service delivery. Now, nobody needs any ‘connection’ before

By Segun Balogun

relating with us.” On OSPES benefits Otusanya said members of the public are vulnerable to any advice that comes their way, whether good or bad, when they walk into an agency of government without knowing the appropriate official to talk to. “OSPES will help the public a lot and promote professionalism in public service. It will enhance customer service culture; ensuring queries are addressed efficiently

and effectively within shorter timelines. It will also remove administrative bottlenecks, thereby, allowing our officers to concentrate on core public service tasks. Most importantly, it will bring greater public confidence in governance,” he said. Mr. Seyi Wenu, Director of Service Matters, who represented the Head of Service, advised other agencies of government to emulate STO as quickly as they can. He also advised OSPES officers to “serve with utmost professionalism.” “STO has many visitors,

especially contractors. Let them come here and receive a worldclass service. Lagos cannot afford to underperform because other states want to emulate us,” he said. Roland Akinosun, a Lagos resident, who spoke to The Nation on the initiative said: “It is a beautiful one. One of the reasons that advanced countries have friendlier business environment is because information can be accessed easily. However, I wish for the day Lands Bureau will implement this initiative.”

Fake US Embassy worker in police net

SUSPECTED fake United States of America (USA) worker who has been allegedly defrauding people through visa racketeering is now in police net. Chinedu Ezeona (37), had allegedly defrauded his victims of N5million. He claimed to be a senior system analyst at the visa section of the American Embassy. The suspect was arrested by detectives attached to the Special Fraud Unit (SFU) in Ikoyi, Lagos. The SFU chief, Mr. Tunde Ogunsakin, a Commissioner of Police, said the suspect who operated from his base in Enugu, also drove around town with American Embassy diplomatic number plate. Ogunsakin said the suspect connived with Obiora Agu of OBITEX Cosmetic Ventures and Sam Ufomadu to defraud a victim of N4.9m to help him secure admission into an American university and procure visa. Ogunsakin said Ezeona had successfully hacked

By Jude Isiguzo

into two foreign telephone numbers, +1940/31528 and +19406049866 which he claimed belong to Atlanta University. “He is said to have used the telephone numbers to contact his victims to make his claims real. His greed landed him in police net as he requested for another $4,100 from his victims. The victim became suspicious and reported to the police,” Ogunsakin said. Another fraudster, Kelvin Ewuzie, who allegedly duped an American has been arrested by the SFU. Ewuzie allegedly duped the American $182,450.00 between February and March. Police sources said the victim was tricked with an un-existing business deal. Police said the transaction was done through a HSBC bank account No. 652093428838 domiciled at No. 1 Queens Road, Central Hong Kong. Ogunsakin advised the public to be careful of the kind of people they go into business with.

THE NATION MONDAY, AUGUST 13, 2012

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Emergency agencies chiefs meet on prompt disaster management

EADS of emergency response agencies in Lagos

State have to fashion out strategies to further smoothen prompt response to disasters. The State Safety Commission (LSSC) disasters in the country on lack of safety precaution among residents, describing the attitude as a threat to disaster prevention efforts. Addressing reporters after the meeting, LSSC’s Director-General Mrs Dominga Odebunmi said lack of safety precaution let to the disasters recorded in the past. She advised residents to always put safety first in their

‘Why NAFDAC endorsed exhibition’

By Miriam Ndikanwu

undertakings as a precaution against disasters. Disasters, she said, occur because people ignored simple safety precautions. She said: “Safety is a collective responsibility. It is not something done as a last resort. It should be our core value and something we give consideration to in all our undertakings. “We need to always guard against accident, injury or disaster. It should be a culture and indeed it is cheaper than managing disasters.” Mrs Odebunmi said the commission would embark on aggressive sensitisation of

residents on the need to adopt safety precautions in workplaces, public places and anywhere they found themselves. The meeting, she said, was to evolve strategies aimed at sharpening the response of emergency agencies to disasters. The General Manager, State Emergency Management Authority, Dr Femi OkeOsayintolu, decried the crowding of accident scenes by hoodlums to loot describing the trend as inhuman. He said emergency responders always had to contend with crowd control, which according him, prevents them from discharging

CITYBEATS

their responsibilities. Government had established emergency committees at the councils to make response to emergencies more effective, adding that emergency simulation exercises would soon be held in all the local governments to test the preparedness of these committees to handle emergencies. “This is a very important forum because we have to review our various management strategies. This platform would assist in strengthening our capacity to manage emergencies. People must be enlightened against looting during disasters,” he said.

HE National Agency for Food Drug Administration and Control (NAFDAC) has said it endorsed a pan-WestAfrican food and beverage exhibition to be held in Lagos as a major regulator in the food sector. Speaking at its Oshodi, Lagos office, a NAFDAC Director, Mrs. Ogochukwu Menaisara, who represented the Director-General, Prof Paul Orhii, said the agency would ensure that products offered for consumption by the public comply with proper levels of hygiene, packaging and product integrity. The exhibition will hold at the Expo Centre of the Eko Hotel and Suites from August 27 to 29. Mrs Menaisara said NAFDAC committed to creating an appropriate environment for the vibrant development of food and beverage businesses, by ensuring

•CEO, AIQ Capital, Uzo Nwankwo; Ohuabunwa; Egyptian High Commissioner to Nigeria, Dr. Sakr Ahmed; Meinasara and President, Nigeria British Chamber Of Commerce, Mr. T. C, Awagu at the event. By Joseph Jibueze

food safety and standard manufacturing practice. Chairman of one of the organising partners, 151 Products Ltd, Mazi Sam Ohuabunwa, said the exhibition would be a great opportunity for new and existing brands to consolidate market

shares as they promote brands, meet new distributors and enjoy media exposure. He said: “A gathering of distributors from across the region and various markets in Nigeria is definitely a prime audience for business development. Often distributors and middle level

channel members are important because they play a key role in the ultimate consumer decision.” The exhibition, tagged: Foodbext West Africa 2012, has also received endorsements from the Egyptian High Commission, Spanish Embassy, Indonesian Consulate, among others.

Brisk business at Redeemed’s convention By Segun Balogun

THE number of worshippers at the annual convention of the Redeemed Christian Church of Gods (RCCG) was blessing for traders, suppliers and dealers in essential goods and services. A first time attendee from Benue State, Mr. Oche Adikwu, described the week-long convention, which ended yesterday as “a huge human assembly.” “I have never seen this volume of people in my life. The people who turned up here are just amazing. I am sure the church leadership cannot put a figure to the number of people here,” he said. As the attendees sought God’s face they became a source of blessing for food vendors, commercial transport, and hospitality services providers. The facilities provided at the camp operated in full round the clock, but the large number of people overstretched the facilities which spill over effect saw many worshippers patronising food vendors at an almost exorbitant costs. This aspect of “life on the camp” was puzzling to Mr. Adikwu, who said N100 each time he had to bath and N80 for one sachet of noodles that should cost N50. The Nation’s investigation should that a chalet went for about N5,000 per day. “I see there is some good business here cashing in on the fact that existing facilities are not enough on demand,” he said, “for instance, when I saw the long queue at the bathroom, I could not wait. So I had to pay N100 elsewhere.” The condition at the camp provides opportunities for business, but whether the services should be higher than normal in a religious centre was the question on Mr. Adikwu’s mind.

THE NATION MONDAY, AUGUST 13, 2012

NEWS Ajimobi increases workers’ YO State Governor housing loans

Abiola Ajimobi has approved an upward review of housing loans to public and civil servants. In a statement by his Special Adviser on Media, Dr. Festus Adedayo, the governor said the review, which was communicated to the workers via a circular by the Commissioner for Lands, Housing and Survey, Ajiboye Omodewu, last week, was part of the government’s plan to restore dignity to civil and public service. The Ajimobi administration said it has concluded discussions with private developers to build houses for civil servants at the Ajoda New Town and on another expanse of land on the Ibadan–Oyo road. The government plans to build three-bedroom flats for civil servants who could pay between N3million and N3.5 million, the statement said. It noted that civil and public servants on Grade Levels (GLs) One to Six, who for-

merly took N500,000 loan, can now take up to N800,000, while those on on Grade Levels 07 and 08 have theirs increased from N600,000 to N1,000,000. Loans for those on GLs 09 and 10, the statement said, have been increased from N800,000 to N1,500,000. Workers on GLs 12 and above, would henceforth enjoy N2million loan from N1million. Ajimobi said the increases are in line with his administration’s policy of restoring the pride of public and civil servants. He said the dignity of a man begins from his ability to have a decent roof over his head. The governor said the review is part of the government’s plan to improve the conditions of living of workers, adding that his administration is at the highest level of discussion with the Nigerian Housing Fund (NHF) to harness its loans to uplift civil and public servants.

Alaafin urges peace, security for nation’s growth T HE Alaafin of Oyo, Oba Lamidi Olayiwola Adeyemi III, has said the search for national growth and development would remain a mirage unless there is guaranteed peace and security in the land. The monarch spoke at his palace in Oyo town when he hosted the Controller of the Oyo State Command of Nigerian Immigration Service (NIS), Joseph Olasunkanmi Olaitan. The NIS chief was on a tour of the command’s offices in the four local governments in Oyo Division.

From Oseheye Okwuofu, Ibadan

Alaafin recalled that the defunct Oyo Empire was the longest survivor among its peers, lasting over 600 years, more than the Roman Empire, which lasted 106 years. The monarch noted that Oyo Empire achieved the feat because it ensured sustainable peace and security. He promised to mobilise his subjects to cooperate with the NIS to identify il-

legal immigrants within his domain. Oba Adeyemi decried child trafficking and the employment of aliens as domestic servants because of the menace they often cause. He said: “We, in Oyo, have condemned child trafficking and the employment of foreigners as house maids because of the menace they constitute to our people. Some of them either kill or steal the belongings of their employers, or do both, and run away.

“Before your arrival, I had ordered the Oyo Mesi (kingmakers) to go round the villages to educate the farmers on the need for them not to harbour foreigners. “I want to urge all the local government chairmen in the state to include security agents’ expenditure in their budget to enable them render quality assistance to the agencies.” Olaitan described the visit as his home-coming. He hailed the Alaafin for supporting the NIS, adding that the monarch had also given financial and logistics support to enhance the agency’s effectiveness.

Philosopher to deliver OOU 56th inaugural lecture

HE Olabisi Onabanjo University will tomorrow hold its 56th inaugural lecture, entitled: Philosophy, African Philosophical Template and the Question of Man, at the Otunba Gbenga Daniel Lecture Theatre, Main Campus, AgoIwoye, Ogun State, at 2pm. The lecture will be delivered by Prof Samuel Adeboye Ali, a Professor of African Philosophy and Aesthetics. It will be chaired by the Vice-Chancellor, Prof Saburi Adejimi Adesanya. Born 52 years ago in Ago-Iwoye, Professor Ali obtained a Bachelor’s degree in Philosophy from the Ogun State University (now OOU) and holds Masters in Philosophy (1988) and Ph.D in African Philosophy (1999) from University of Ibadan (UI). A statement by the university’s Public Relations Officer, Mr Sam Oyeleye, said Prof Ali began teaching at OOU on October 1, 1987, as a Graduate Assistant.

‘ACN chief had premonition of his death’ HE Alake of Egbaland,

Oba Adedotun Gbadebo, at the weekend said the late Egba High Chief and chieftain of Action Congress of Nigeria (ACN), Segun Taiwo, had a premonition of his death. The monarch spoke in Abeokuta, the state capital, when a former governorship aspirant under ACN in Ogun State, Asiwaju Kayode Soyinka, paid him a condolence visit. Oba Gbadebo recalled that the late Taiwo, who was the Oluwo of Ake, had been conscious of his prolonged heart problem. The monarch said he was to see the late politician the day before his death, adding that he complained on phone that he was not feeling comfort-

able. The Alake noted that in view of the late Taiwo’s health, he (the monarch) rescheduled the visit to the palace to the following day. However, the late Taiwo died before the rescheduled visit. Oba Gbadebo said: “He had been having heart challenges for some time. He was always conscious of this and he ensured he never toyed with medication. Hence, he always took his medical attention as paramount. “I recall the night before his death. He was to see me in the palace but called me on phone to tell me that he was a little bit tired and could not make it, but would see me the following day.”

Ex-Adviser’s wife dead

N educationist and retired school principal, Mrs Morohunfayo Oyetayo Ifemade (nee Oyesiku), is dead. She was 59. Mrs Ifemade was the Principal of Tolu High School, Olodi-Apapa, Lagos, and was an active member of All Nigeria Conference of Principals of Secondary Schools (ANCOPSS) and Committee of Wives of Lagos State Officials (COWLSO). A devout Christian, the deceased was the President of Ladies Friendly Society, Methodist Church, OdiOlowo, Apapa, Lagos.

•The late Mrs Ifemade

She is survived by her husband, Olalekan Ifemade, a former Special Adviser to the Lagos State Governor on Local Government and Chieftaincy Affairs, children and grandchildren. The funeral arrangements will be announced by the family.

•From left: Chief Imam of Apo Legislative Quarters Juma’at Mosque, Abuja, Sheik Nura Khalid; Archbishop of Abuja, Rev. John Onaiyekan and Most Rev. Donald Hanchon, of the Catholic Archdiocese of Detroit, United States, at an inter-faith Peace prayer and Iftar (Muslims’ breaking of fast) at Apo Mosque, Abuja...at the weekend PHOTO: ABAYOMI FAYESE

Ondo ACN ward leaders mobilise for Akeredolu

CTION Congress of Nigeria (ACN) ward executives in Idanre Local Government Area of Ondo State have begun a door-to-door mobilisation for the party’s governorship candidate in the October 20 election, Mr Rotimi Akeredolu (SAN). The ACN ward leaders are to enlighten the electorate on why the former Nigerian Bar Association (NBA) is the best man to occupy the Government House in 2013 and why they should vote for him. A party chieftain, Ade Adetimehin, and his political associates have donated 12 motorcycles to the 12 wards in the community. Addressing reporters after the donation, Adetimehin, who is also the Deputy Director of Aketi Campaign in Ondo Central, said the gesture would enable members to take the philosophy of the ACN to every part of the community. Adetimehin said he donated the motorcycles because the roads in the area are in a bad shape following the neglect by the Olusegun Mimiko administration. The politician noted that despite the high number of

Over 10,000 youths apply for jobs

ESS than three weeks after Ondo State Action Congress of Nigeria (ACN) governorship candidate Mr Rotimi Akeredolu (SAN) promised to create 30,000 jobs in his first 100 days in office, over 10,000 youths have submitted their curriculum vitae (CVs) in various wards. It was learnt that most of the applicants are from Akure, Ondo, Okitipupa, Owo, Ikare and other major towns. During his campaign tour of wards in Akoko Southwest, Akeredolu said Ondo State has the capacity to create such jobs for youths because its economy is bigger From Leke Akeredolu, Akure

Idanre indigenes in the ruling Labour Party (LP) government, the community cannot point at a project it has benefited from the government. He said: “Our people are eager for a change. They are tired of a government of ‘promises and fail’. Our people want to enjoy the dividends of democracy, like other ACN ruling states. Despite the number of Idanre sons and daughters in Mimiko’s government, there is nothing good you can point to in the community. Some of the projects they embarked upon since three and a half

than those of Osun, Oyo and Ekiti put together. He promised to use the state’s resources prudently to uplift the residents. The frontline lawyer urged youths to continue to submit their CVs at the wards or local government offices of the party nearest to them for transmission to his office in Akure, the state capital. Akeredolu urged the residents not to sell their voters’ cards. In a statement by his Director of Media, Publicity and Strategy, Mr Idowu Ajanaku, the ACN candidate promised not to disappoint the people.

years ago have been abandoned. “The Chief of Staff to the Governor; the Commissioners for Information; that of Labour and Productivity; the Chairman of the Library Board, are from the community. “No amount of threats from LP hoodlums will stop us from winning the election. “Few weeks ago, you will recall that the party received some opposition leaders, including a former senatorial aspirant of the LP, Alhaji Gboyega Akindeko, who is a cousin to the Chief of Staff, among others. They are defecting because the LP has failed

them.” The Idanre Local Government ACN Chairman, Ade Alalabiaye, urged members to go back to their wards and work for the success of the party. He said: “You can only be a leader when you deliver your ward. Our people are ready to cast their votes for ACN because of the party’s history. It is a party the people trust so much. They have witnessed rapid development during the late Obafemi Awolowo’s, Adekunle Ajasin’s and Adebayo Adefarati’s governments. They are ready to accept our candidate because of these great political leaders.”

THE NATION MONDAY, AUGUST 13, 2012

NEWS

•Members of the 195 Battalion demonstrating at the Nigerian Army Peacekeeping Centre in Jaji, Kaduna, at their graduation...at the weekend.

Boko Haram: Church tightens security From Tayo Johnson, Ibadan

HE management of Gospel Faith Mission International (GOFAMINT) Church, Ibadan, Oyo State, has taken precautionary measures against likely Boko Haram attacks following the sect’s threat that its next attacks will be in the Southwest. GOFAMINT is celebrating its annual convention at the International Conference Centre, Igbo-Oloyin, Ibadan. The Nation learnt that part of the safety measures is the redesignation of the entrance and exit of the camp grounds at Control Post Roundabout. Over 100,000 worshipers gathered for the convention, tagged: The Kingdom World in a Changing World. Visitors will now pass through checks at the entrance to the church auditorium by security operatives, comprising policemen, State Security Service (SSS), Nigeria Security and Civil Defence Corps (NSCDC) and the Federal Road Safety Corps. Vehicles are no longer allowed to park near the church auditorium, especially the entrance to the main gate.

Minister unveils e-portal

INISTER of Interior Abba Moro will today unveil the ministry’s Internet portal, e-Citibiz, at a stakeholders’ conference in Lagos. The organiser of the conference and provider of the portal, Anchor Dataware Solutions (ADS), said Moro would introduce stakeholders to a system meant to integrate and automate the ministry’s operations and streamline its naturalisation, citizenship, marriage registry and expatriate quota management sections. In a statement, ADS Managing Director Joel Adi said: “Our professional and proactive team is putting finishing touches to all installations and required infrastructure for the success of the project, as well as the actualisation of the government’s goals.” He said e-Citibiz will allow easy flow of data in the public service.

ANPP advocates punishment for pension thieves From Gbenga Omokhunu, Abuja

HE All Nigeria Peoples Party (ANPP) yesterday urged the Federal Government to resolve its differences with the Nigerian Labour Congress (NLC) to prevent a strike. Last Thursday, NLC threatened to embark on a nationwide strike, if after seven days the government fails to pay Power Holding Company of Nigeria (PHCN) workers their severance benefits in-line with the 25 per cent contribution to their pension scheme. ANPP said workers have the right to demand their due and urged the government to fight corruption, “instead of fighting workers”. In a statement by its National Publicity Secretary, Mr. Emma Eneukwu, ANPP said corruption has permeated our national life as “exemplified by the squandering of the Pension Fund”, which it said is the root of the “PHCN versus Labour brouhaha”. It urged the National Assembly to examine the issue of minimum wage before expunging it from the Exclusive List. The statement reads: “In a nation like ours, with a peculiar malady of institutionalised corruption, it would be foolhardy for the government to match roughshod over power sector workers, while workers in other sectors are watching and thinking they would be the next to be trampled upon. “The ANPP believes the singular battle facing the government is the fight against corruption and not against workers. Corruption has permeated our national life as exemplified by the squandering of the nation’s pension fund, which is the root of the PHCN versus labour brouhaha. “Therefore, the task before the government is to unravel it without further aggravating the fragile state of the nation, starting with decisive punitive action against the pension thieves.”

CPC: Okupe a liability to Jonathan

HE Congress for Progressive Change (CPC) yesterday said the Senior Special Assistant to the President on Public Affairs, Dr. Doyin Okupe, is a liability to President Goodluck Jonathan’s administration. The party said Okupe’s attack on Pastor Tunde Bakare and Mallam Nasir el-Rufa’i, who urged the President to resign “on account of his failure to tackle the nation’s problems”, was needless. In a statement in Abuja by its National Publicity Secretary, Mr. Rotimi Fashakin, CPC said. “Our attention has been drawn to a statement credited to Okupe, where he unleashed needless vituperation on Bakare and Nasir el-Rufa’i for their call on the President to resign on account of his administration’s helplessness in tackling the myriad of prob-

From Gbenga Omokhunu, Abuja

lems besetting the Nation. “Okupe is a liability to any employer engaging his services. Over the years, he seems to have perfected the art of being more loyal to his belly than to anyone else. In the last few years, he had showed loyalty only to his subsisting source of livelihood, while castigating his immediate past employer. For instance, he disparaged former President Olusegun Obasanjo after he (Okupe) was relieved of his post. As is commonly said, ‘the whip used on the senior wife is reserved for subsequent ones’. “Okupe, in a desperate attempt to justify his appointment and invariably satisfy his employers, lambasted Bakare and el-Rufa’I with such crudity that is not in con-

sonance with decent, diplomatic comportment. “Understandably, the reason for his appointment was his experience in a similar position under another Peoples Democratic Party (PDP)-led Presidency, though he was unceremoniously relieved of his position for undisclosed misdeeds in 2000. “It is therefore not unlikely that the Jonathan administration had hoped to leverage on his previous use of the position as an avenue to launch unceasing tirades on his employer’s political adversaries. “In his characteristic style of persecuting the messenger, rather than examining the merit of the message (as a basis for constructive engagement), the Jonathan administration’s new attack dog chose to cast aspersion on Bakare’s pastoral calling

in relation to his political activism. “Indeed, world history is replete with examples of clergymen that used the pulpit as the pedestal for ensuring political freedom for their people. Martin Luther King, a Baptist minister, used his position to awaken civil rights in America. The undying seed of that effort eventually paid off with a black man being the current president of American. “Archbishop Desmond Tutu, an Anglican minister, was unsparing in his scathing criticisms of the apartheid regime and was actively involved in the ethical and political reshaping of postApartheid South Africa! The Old Testament prophets were known to be very vociferous against the oppressive tendencies of the principalities in their time.”

Babangida, Obasanjo guilty of treason, says cleric

HE Prelate of the Presbyterian Church of Nigeria, Rev. Emele Uka, yesterday urged the Federal Government to charge former Military President Ibrahim Babangida and former President Olusegun Obasanjo with treason for their role in Islamising the country. Condeming the killings in the North, Rev. Uka said the duo contributed to Islamising the country by registering Nigeria in the Organisation for Islamic Conference (OIC)

From Kazeem Ibrahym, Uyo

and attending the G-8 meeting of the group in Egypt in 2001. The Prelate spoke with reporters in Uyo, the Akwa Ibom State capital, after the opening of the 20th General Assembly of the church. He said by registering Nigeria in the OIC, Babangida and Obasanjo violated the nation’s constitutional provision as a secular country and Nigeria became an Is-

lamic state. The Prelate said: “It was Babangida that registered Nigeria as an Islamic country in OIC. Unfortunately, during the last meeting of the G-8 Islamic countries in Egypt in 2001, Obasanjo identified Nigeria as an Islamic country by attending that meeting. “They have violated our constitution and should be tried for treason. Nigeria must delist itself from the Islamic countries of G-8 and

change its status to secular. I urge the executive, as well as members of the Senate and the House of Representatives, to take action. Unless Nigeria is removed from OIC, these killings will continue.” The cleric condemned Boko Haram’s call for President Goodluck Jonathan to become a Muslim. He urged Nigerians to continue to pray for God’s intervention.

Research workers begin nationwide strike

NIONS in research and allied institutions will begin an indefinite nationwide strike today. The unions, under the aegis of Joint Research and Allied Institutions Sector Unions (JORAISU), comprise the Academic Staff Union of Research Institutions (ASURI), the Academic Staff Union of College of Agriculture (ASUCA), the Non-Academic Staff Union of Educational and Associated Institutions (NASU) and the Senior Staff Union of Research, Development and Associated Institutions of Nigeria (SSURDAIN). In a letter to the InspectorGeneral of Police (IGP), dated August 8, the unions said it planned to picket the affected

From Oseheye Okwuofu, Ibadan

institutions, “so that the management of the various institutions will not instigate law enforcement agents against the union”. JORAISU said picketing of affected institutions during strike a “is in line with Nigeria’s Labour Laws (Trade Unions Act, CAP T 14a part V, Section 43 (1) and (2))”. It said the police was also informed so that the managements would not use its agents to challenge or obstruct “a legitimate union activity or remove the posters that would be pasted at strategic places in the various institutions”.

In another letter dated July 30, JORAISU informed the Minister of Labour and Productivity of the decision to resume the suspended industrial action, recalling that it was at his instance that the strike embarked upon in January was suspended. It said the government has failed to implement some parts of the agreement reached with the union in 2009. They include the implementation of CONRAISS from July 1, 2009; withdrawal of the circular on non-skipping and 65 years retirement age. Others are the payment of peculiar allowances/earned allowances, the establish-

ment of a central body to be known as NARICOM and the funding of research institutes. In a letter by JORAISU representatives, which was copied to several ministers and other top government officials, the union leaders said: “We are constrained to inform you that the negative attitude of the Federal Government has aggravated tension in research and development institutions. “This is gravitating towards a strike, which leaders of the various unions can no longer contain. It is against this back ground that we have been directed to inform you that with effect from August 13, the suspended strike will be resumed.”

THE NATION MONDAY, AUGUST 13, 2012

NEWS

Dana crash: What Obakpolor’s review panel left undone, by expert Following the crash of the Dana aircraft in June, Minister of Aviation Stella Oduah set up the Group Captain John Obakpolor-led technical and administrative panel to review domestic airlines. The panel’s report, however, delved into other areas that appeared to infringe on the oversight responsibilities of the International Civil Aviation Organisation (ICAO). In this piece, Aviation expert HUSHI DIALOKE reviews the committee’s submission. HE Terms of Reference specific ICAO Protocols. The very specific process. The USO- Programme (CAP) submitted the areas covered by the NCAA. use of the two reports -the ICAO

(TOF) given to the committee amounts to determination of the effectiveness of the Safety Oversight System available in Nigeria. This is exactly what the International Civil Aviation Organisation (ICAO) does in its Universal Safety Oversight Audit Programme (USOAP), in this case, in respect of Annexes 1,6, and 8 of ICAO rules. This type of audit is done by ICAO trained auditors using

process requires completion of specific questionnaires by the State, including State Aviation Activities Questionnaires and Compliance Checklist (SAAQ and CC). ICAO auditors will undertake requisite analyses prior to audit of the Eight Critical Elements of Safety Oversight. This process covers upwards of three months. The panel definitely did not have enough time to follow through this important and

AP process is the international standard by which ICAO determines the effectiveness of the Safety Oversight System. Thus, a finding that does not follow this process could be seen as opinion and may be grossly misleading. In this regard, the other viable option will be to take advantage of the result of ICAO audit of Nigeria, done in 2006 and the level of implementation of the Corrective Action

Akume remains Senate Minority Leader, says ACN

HE Action Congress of Nigeria (ACN) has passed a vote of confidence in Senator George Akume as the senate minority leader. It described as ‘phantom plot’ a plan to remove him. The ACN credited the plot to some reactionary and anti-democratic force in the Senate. In a statement by its National Publicity Secretary Alhaji Lai Mohammed, the party expressed satisfaction with the manner Akume has so far, discharged his responsibilities, saying the choice of the minority Senate leader is the sole and exclusive preserve of the leadership of the ACN and no amount of horse-trading, intrigue or blackmail could change this. The party absolved its senators, blaming the leadership of the senate who would “prefer a more pliable and easily compromisable minority leader to our principled and disciplined senator George Akume.” It added: “As the saying goes, all politics is local and the plot to remove Senator Akume can be located first and foremost in the battle for the soul of Benue State and even more importantly in the paralysis and fear that have gripped the People’s Democratic Party following the growing popularity and acceptance of the Action Congress of Nigeria all over the country.” The party recalled that a thoroughly confused PDP described the ACN as a ethic party. “Can a party with a governor from the Southsouth geopolitical zone, senators from Benue, Edo and Anambra states, House of Representative members from Anambra, Akwa Ibom, Cross Rivers, Ad-

Mark: count me out From Onyedi Ojiabor, Abuja

amawa, Benue, Kogi and Imo states among others be described by right thinking people as an ethnic party? “Is the plot to remove Senator George Akume as the party’s senate minority leader not part of the desperate plot of the ruling People’s Democratic Party to give the impression to Nigerians that we are an ethinic party, especially when we remove Senator Akume and replace him with a senator from the Southwest, the party queried”. Senate President David Mark, however, distanced himself from the alleged plot to remove Akume. A statement by Special Adviser (Media) to the President of the Senate, Kola Ologbondiyan, said Mark described the allegation as “crude and shocking”. It quoted Mark as saying that as a Senator elected on the platform of the majority party in the Senate, the Peoples Democratic Party (PDP), he does not attend the meeting of the minority parties. Mark said: “I am not a member of the minority parties. I do not attend the meetings of the minority parties. “How then do I get involved in the plot to remove the minority leader? The Senate President added that “election or nomination of officers of the party in the National Assembly is the exclusive preserve of the political parties. How then would a non party member get involved?” He advised ACN “to put its house in order if it smelt a rat.” According to him, “the Senate as a body is cohesive and united in enacting laws that

NITAD holds annual conference

IGERIA Institute of Training and Development (NITAD) will hold its 20th Annual Conference in Abuja between August 21 and 23. The theme is: The Training function and the bottom-line: A new Perspective. Five-hundred resources persons from the public and private sectors are expected to brainstorm, interact, and update their skills and knowledge. They will recommend a road map for training, learning and development practice in Nigeria. In a statement in Lagos, conference Chairperson Mrs. Jumoke Lambert said the conference would provide an opportunity for cross-fertilisation of ideas and bests practices in learning and development from various industries and human resource functions. Those expected at the conference include Chief Learning Officers, general managers, policy makers, academics, researchers and scholars, training professionals, management and communication consultants as well as human resource practitioners and trainees. A keynote address will be presented by Professor Longmas Wapnuk, the Director-General of Industrial Training Fund (ITF). There will be other training seminars where papers will be presented on various topics, which include:”Human Resource Metrics and Quantifiable Returns on Investment”, “Harvesting Lost Proceeds and Public Sector Training.” Designing Training Policies to Meet organisational goals”, “Effective course development”, and “the training consultant as a business partner in achieving bottom-line objectives among others .

will continue to improve the standard of living of all Nigerians.”

to address the identified deficiencies. There is an international impact of the work of the Panel since ICAO is implementing a continuous monitoring approach of the USOAP and any information on Safety Oversight System of the State would have an effect. For this reason, it is important to ensure that the process employed by the panel should meet international best practice. Since ICAO audited Nigeria in 2006 and found out that Nigeria was 86 per cent in compliance, majority of the findings against Nigeria at the time of ICAO audit were in the area of Air Navigation System (ANS) and airports, and not on

After this audit, Nigeria has continued to provide Corrective Actions to ICAO findings and has improved further. From this audit, Nigeria has become a shining example for all African countries. In general, the global average of compliance to ICAO Safety Oversight Audit is 60per cent. At the African Ministerial Conference in Abuja, it was agreed that all African countries should make efforts to attain 60 per cent compliance by 2017. In addition, the panel should recollect that the United States carried out the IASA process on the Nigeria aviation industry in 2010 as a result of which Nigeria was awarded Category 1 (Cat 1) status. The panel should have made

audit of 2006/corrective Actions and the US IASA - as basis for its work. Otherwise, the panel will have to do its own full audit following the internationally acceptable methods. The panel also did not comply with the ICAO provision which requires that when an audit is completed, any deficiencies found must be made available to all parties concerned as it is done internationally be it ICAO audit, accident investigation or even financial audit . This is to give the parties concerned the opportunity to make comments or to dispute whichever area they think that the auditor misunderstood or misinterpreted in the information provided.

THE NATION MONDAY, AUGUST 13, 2012

THE NATION MONDAY, AUGUST 13

, 2012

COMMENTARY EDITORIAL FROM OTHER LAND

EDITORIALS

BASA controversy •Aviation minister has a case to answer on how the fund was spent ID aviation minister Stella Oduah secure necessary authorisation for the utilisation of $76 million of the Bilateral Air Services Agreement (BASA) fund for the re-modelling of 11 airports? The fund – the accrued royalties paid by foreign airlines for the development of infrastructure and civil aviation in the country – is currently the subject of a petition by Whistleblowersmonitors Inc, a coalition of civil society organisations, to the Economic and Financial Crimes Commission (EFCC), and the Special Fraud Unit (SFU), Nigeria Police Force. Not only did the group charge the minister with spending the fund without the approval of relevant authorities, she was alleged to have spent it on projects not captured in the 2012 Budget. It also alleged failure to observe the due process in the award of contracts; saying that the contracts were neither publicly advertised nor contained in any of the Federal Government’s Tenders and Procurement bulletins. It charged that the transactions ran foul of the regulation prescribing spending limits for government functionaries. The minister has since responded to the charges. Speaking through an aide, Joe Obi, she claimed that it was her predecessor, Fidelia Njeze, who initially sought and obtained approval for the utilisation of $60million (about N7.5 billion) from the fund for the rehabilitation of infrastructure at the nation’s airports – funds Njeze could not access during her tenure. According to the ministerial aide, her boss merely initiated fresh processes to access the already approved $60miilion from the BASA fund “to form part of the resources required to execute the re-mod-

elling of 11 airports across the country in the first phase”. The minister insisted that relevant approvals from the Presidency and the National Assembly were obtained to access and utilise the fund – adding that reconstruction work at the 11 airports is over 90 per cent completed and will be due for commissioning soon. The issues at the heart of the contention would seem easy enough to isolate. The first is the nature of approval obtained by the minister – particularly the claim that necessary approvals were sought and obtained – both from the President and from the House of Representatives and the Senate. That raises an interesting poser: were the approvals by the two chambers of the National Assembly done through the committees of each or through plenary? Could these approvals have vitiated the requirements of legislative appropriation? That leads to the second issue; whether the re-modelling of the 11 airports was captured in the 2012 Appropriation Act. Clearly, the BASA fund could not have been part of the ministry’s budgeted funds; the poser here is whether the ministry could have embarked on the remodelling of the airports outside of the framework of the budget – or the Appropriation Act. Was it a case of BASA money fuelling the quest to re-model the airports? The third issue is one of due process. Coincidentally, the minister did not contest that there were no advertisements for tender by contractors before the jobs were awarded. No less revealing is that the minister actually admitted to seeking and obtaining due process waiver from the Bureau for Public Procurement

(BPP) for the project. The latter seems to us enough proof of intention to shun the requirements of due process. It says a lot about the minister’s commitment to transparency in the execution of the projects. Of course, we are alarmed at the suggestion that the so-called approvals entitled the minister to spend the money without the strictures of legislative oversight. If we may make the point - nothing in the books confers on her the sole authority to manage the BASA fund. This is what makes the petition against her not entirely baseless. A thorough investigation by the EFCC and the SFU is therefore in order. We expect the National Assembly to undertake its own investigation of the management of the fund. At stake is whether the nation could afford to trade the dictates of due process for an individual’s so-called good intentions.

‘Of course, we are alarmed at the suggestion that the socalled approvals entitled the minister to spend the money without the strictures of legislative oversight. If we may make the point - nothing in the books confers on her the sole authority to manage the BASA fund. This is what makes the petition against her not entirely baseless. A thorough investigation by the EFCC and the SFU is therefore in order’

A peculiar injunction •For how long can a court restrain people from being charged over corrupt practices? F the allegation of corruption levelled against former Governor Peter Odili of Rivers State and some officials of his administration were to be before a court in some other climes, the case would have since been decided. Unfortunately, this case has not even taken off, more than five years after it began, due to perpetual injunctions that have stalled it since 2007. The matter started on October 31, 2006, when the Economic and Financial Crimes Commission (EFCC) began investigations into the finances of the state, following a petition against the administration of Governor Odili. On December12, 2006, the commission issued an ‘investigation report’ in which it alleged that over N100billion was diverted during the governor’s two terms, but it could not proceed with the case

‘If the hands of those against whom the allegations of corruption were levelled are clean, why do they need perpetual injunction to stop the EFCC or other agencies from investigating and prosecuting them? The perpetual injunction granted on this matter has outlived its usefulness; indeed, it has become counter-productive and should be vacated immediately, to allow the due process of the law take its course’

as the state’s attorney-general and commissioner for justice went to the Federal High Court in March 2007, to seek a perpetual injunction against the commission and other federal agencies, from investigating the state. The state government argued that the commission had usurped the powers of the state House of Assembly by investigating the disbursement of public funds in the state; directing banks not to release funds to the state government; initiating impeachment proceedings against the governor and grinding the state to a halt. On March 20, 2007, Justice Ibrahim Nyaure Buba granted all the declaratory and injunctive reliefs sought by the state government. He declared EFCC’s investigations invalid, restrained it and other defendants from publicising the report of the investigation; and also restrained the commission from any further action in relation to the alleged economic and financial crimes. When the matter began, Odili was governor and so enjoyed immunity from prosecution. However, after leaving office in 2007, he went to court to seek to benefit from the injunction earlier granted others involved in the matter; a prayer that the court answered in 2008, making him perpetually immune from arrest, investigation or prosecution. But injunctions are normally given when it is obvious that its denial could result in permanent injury to the applicant, and it usually comes with time limit. Although it could be renewed, we do not see the need for that in this instance. We are still at sea

as to how a court could grant an injunction of this nature. What is the big deal in investigating an administration over allegations of corruption? Even if politicians want to buy time by placing logic upside down, the court should not be seen to be providing cover for such politicians. We had thought that our judges would have taken a cue from the Ibori saga in London, by abstaining from actions that could bring the judiciary and the entire country to ridicule. We do not know any law that says it is only the state houses of assembly that should investigate allegations of corruption against public officials at the state level. If this were so, not a single governor would be punished for corruption because the state legislators in most states are in the pockets of the governors. In addition, the EFCC had prosecuted some other governors for similar crimes. So, what is it that makes the Rivers State’s case special or different? If the hands of those against whom the allegations of corruption were levelled are clean, why do they need perpetual injunction to stop the EFCC or other agencies from investigating and prosecuting them? The perpetual injunction granted on this matter has outlived its usefulness; indeed, it has become counter-productive and should be vacated immediately, to allow the due process of the law take its course. Nigeria has lost so much to corruption and we should not be seen to be shying away from dealing with it.

Sudan and South Sudan Make Progress

UDAN and South Sudan ended a dangerous stalemate when they finally reached an agreement on oil pipeline fees last week. The elements of the deal should be carried out as quickly as possible given the severe financial stress on both nations. Tensions came to a head in January when South Sudan shut down oil production after failing to agree with Sudan on fees for transporting crude through Sudan’s pipeline. After declaring independence last year, South Sudan inherited most of the former country’s oil fields. But the new country is landlocked, and Sudan controls the pipeline that gets oil to market. The impasse had a devastating effect. Without oil, South Sudan lost 98 percent of its revenue, and foreign exchange reserves plummeted. Sudan cut back on gas subsidies, sending prices for goods soaring and thousands of protesters into the streets. In April, fighting erupted along the border, reviving fears that the two sides were again sliding toward war. Their conflict from 1983 to 2005 killed more than two million people. Some 650,000 people have been displaced in the recent fighting. It was good news that Sudan and rebels allied with the South finally signed an agreement on Sunday with the United Nations to allow aid into rebelheld areas. Pressure from the United Nations, the African Union and Secretary of State Hillary Rodham Clinton, who visited Juba, the capital of South Sudan last week, helped push Sudan and South Sudan to reach terms on the fees. The final details have not yet been made public, but Jeffrey Gettleman of The Times reported that South Sudan had agreed to pay Sudan about $10 per barrel, compared with $1 it offered and the $36 Sudan initially demanded. South Sudan also agreed to pay about $3 billion to Sudan in compensation for lost revenues. There is some concern that Sudanese officials might still hold up the deal until security issues are worked out. The two countries have so far failed to delineate their common border, settle the status of the oil-rich region of Abyei, which straddles the disputed border, and resolve accusations traded by both sides that the other is supporting rebels. They are expected to resume negotiations on these issues later this month. The United Nations Security Council has threatened sanctions against both nations if insufficient progress is made. Sooner rather than later, both sides also have to deal with even more fundamental challenges: improving governance, ending human rights violations and eradicating corruption. Sudan and South Sudan are inextricably intertwined. If the two can carry out the fee deal, they will have a better chance to resolve other critical issues. – New York Times

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THE NATION MONDAY, AUGUST 13, 2012

CARTOON & LETTERS

IR: For me, a proud adopted son of the Ijesa Professor of Animal Science and an Omoluabi par excellence, Titus Adebowale Omole, OFR, I have learnt that it is more useful to study human models than one could ever probably learn in a formal course of study at any given institution of learning. It could be that I have accepted to take Omole as my own practicals; but every interaction with the Ijesa prince and two-term Vice Chancellor of Obafemi Awolowo University, Ile Ife, has continually unveiled itself as a fresh page of a highly interesting and unique book on the very contentious subject of surviving in the sometimes complex endeavour of human existence. Always ruled and guided by the conviction that his actions should deepen human integrity, the descendant of Biladu/Bilagbuyi ruling dynasty of Ilesa will pointedly move ahead to take steps, not minding whose ox is gored, the moment his conscience gives the go-ahead. Like the legendary Ogedengbe who gave birth to his progenitors, Omole is not only fearless but equitable and just at all times. A strong believer in bequeathing the highest standard of morals to the upcoming generations, his three biological children, in spite of progressing steadily in their individual fields of human endeavour, are keenly aware that one must keep striving to meet up with the very high standard of the no-nonsense disciplinarian that they have

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Wale Omole: The omoluabi @ 70 as father – if one must continue to see his good side. I remember being summoned a number of times with that unmistakable dictatorial voice to receive bashings for steps; either wrongly taken or not adequately embarked upon enough. Each time that voice calls on me, it is first the fear, then the reassurance that one could still make it if you take to correction. All the time, you are reassured that nothing good comes easy and that you must strive on in life, not being laid back, and accepting the

IR: Chief Olusegun Obasanjo did not under-develop the North as Professor Ango Abdulahhi said in a recent interview . While one will not hold brief for the ex-President for he is largely a part of the nation’s numerous woes, it is pertinent to state that it is the northern leaders that underdeveloped the region and are still doing so. One wonders at times whether the North is actually a part of Nigeria seeing the magnitude of grinding

challenge that there is no option than pushing oneself to be the best one can be. One of the lessons I learnt from him, when he was Vice Chancellor of OAU, is that a leader must be prepared to do everything to erect a lasting legacy. His detractors conspired and worked against his decisive and focused administration, but he got vindicated in all the snares. This brings to mind the biblical phrase that though many are the afflictions of the righteous, HE delivereth him from all. I think this

was responsible for Omole’s highly successful reign as the first alumnus to be VC of that institution. Omole is quick to forget wrongs done him. He has no time to carry on with anger. He threatens to abandon you if you are not learning fast; but he is in hurry to offer support during whatever storm threatens to consume you. He prides diligence; loves integrity; rewards loyalty; loathes dishonesty and laziness. He has no time for the saying: jack of all trade; he was master

The North and its leaders poverty ravaging the people and the level of underdevelopment there. A cursory look at the history of Nigeria shows that more leaders have emerged from the region of Usman Dan Fodio than any other part of Nigeria put together. Starting from the days of the unassuming Tafawa Balewa to the period of Umaru Musa Yar’Adua, the North has always had access to the highest echelon of political power. What is holding back the North is the servile subservience of the masses to

their leaders. Their leaders, in turn, continue to deprive them their basic needs while they live off on the commonwealth of the people. It is a parasitic association gleefully entered into by the people with their Oliver Twist leaders because of their limited education and exposure. Agreed, the Nigerian nation is grossly underdeveloped considering its humongous natural endowments and human resources. The northern zone of the country remains a paralysing specimen of the

Menace of cart pushers on Lagos roads

IR: The new Lagos Traffic Law just signed by Governor Babatunde Fashola (SAN), aside being comprehensive in details, will surely bring sanity to the traffic situation in the state. One aspect of the law that gladdens my heart greatly is the section concerning cart pushers. I remember that not quite long ago, the State Commissioner of Police, Mr. Umar Abubakar Manko, said cart pushers would no longer be allowed to ply major highways with loads of goods. Also earlier, the State Government banned the use of cart pushers to evacuate refuse from residential homes and commercial concerns. But these regulations have continually been flouted. On Ikorodu Road, for example, these cart pushers are daily seen

pushing loads of yams from Mile 12 Market to Ikorodu and other major markets both within the Lagos Metropolis and its outskirts. In doing this, they create a lot of problems for motorists, especially on the expressways. For example, aside from pushing their trucks against traffic flow, they also take up a substantial part of the road and because of the weight of their load, they most times cannot control the cart. On Ikorodu road a few weeks ago, a fast moving vehicle crashed into one of the carts as the driver was negotiating a bend forcing the driver to lose control and the car ending up in a swamp while the cart pusher was equally thrown into the swamp by the impact. Though no life was lost, the driver was seriously injured on both arms while

of all. Whatever you get from him in terms of favour is not as a result of your being his friend or foe. Quintessential Omole is a lover of all, particularly of the youths whose lives he willingly and steadily wants to mould even as he rides on in life. To me and many other adopted children of this highly principled believer in the possibility of a great Nigeria if dialogue is allowed, the Yoruba’s adage, “obini o to on woni”, meaning literally that the nurturer supersedes the parents, is more than apt in the lesson of life which ends only at death. He is 70 today, but continues to lead life in the interpretation of his alma matter, the great Ilesa Grammar School, whose Motto admonishes its products, “E Huwa Omoluabi”, simply meaning, “behave responsibly.” •Lekan Fadeyi, Ado-Ekiti, Ekiti State

the cart pusher suffered a broken leg. The car lost its two front tyres and the right fender. These cart pushers, from the way they move in droves, seem to believe they have the right of way because they do not respond to horns from motorists. They just move on without caring whether or not they are obstructing traffic flow. At the Mile 12 Market, they practically compete with motorists for right of way thereby causing traffic holdups on that road. The problem is further compounded by the fact that majority of them lack understanding of the basic traffic rules. It will, therefore, be a welcome relief and a life-saving measure if this law is effectively enforced to keep the major roads free of the cart

pushers, not only for the sake of the motorists but also for the their own safety as well. As the Commissioner of Police said on the day he spoke on television, traders, particularly market women and men, who use these cart pushers for such long distance haulage must stop forthwith. They should use vehicles to make such haulage. It is even inhuman to subject those young men to such long distance labour and exposing them to the risk of getting crushed by fast moving vehicles. In any case, I think the government once warned against patronizing cart pushers who do more harm than good. . • Arugeza Okonkwo Mile 12, Lagos.

abject privations of life. As long as the subservience mentality continues to operate coupled with a lowlevel of civilisation of its rural populace, a century of access to political power will bring no difference. This is the tragic reality. As they say, education makes the people easy to lead but difficult to enslave. For the North to record any meaningful development, mass education of the people should be the utmost priority. The people have to be educated in order to embrace modern changes that will impact their lives positively without compromising their faiths and culture. Without Boko Haram, most kids from the North do not seem to have the enthusiasm in going to school. And now that education is purported to be sinful by the terrorist sect, acquiring western education in the North is now a herculean task. This is where the likes of Ango Abdulahhi, Muazu Babangida, Adamu Ciroma and many other prominent leaders in the zone should step in before the North selfdestructs. Waiting for the federal government to do it might just be like the case of man who is patiently waiting for his lover who has eloped with another man to another town. It may never happen. Quranic education is not just enough. They have to merge with western education. • Akinboyo Temidayo, Igbotako,Ondo State

THE NATION MONDAY, AUGUST 13, 2012

COMMENTS

HAT does it feel like to nurture great hope, visions and aspirations and work so assiduously at it, only to be shattered with the reality of shame and disgrace? How does it feel to love one’s nation dearly and serve her with all exuberant vigour and youthful zeal, far and beyond the call of duty, only to be rewarded with scorn, reproach and punishment because subsisting social structures and mores do not support such extinct ideals? The feeling is obviously one of dejection, frustration and near collapse that prompts quick re-evaluation of strategy. While some youths have stoically waded through such ugly experiences and re-launch dramatic comebacks managing to keep their tattered virtues, many others have been too wounded to survive; they turn around polishing their crafts and grafts to hunt the system they once craved to serve. The puritan blends with the system and learns the art of corruption even faster than the masters. I am a youth presently distraught with the reality of unreciprocated love for fatherland and I wonder if there is hope for my kind in this nation. While at the NYSC Orientation Camp, I had planned to draw attention to needs in my place of assignment through the media by virtue of my communication discipline. But I was told corps members were not allowed to speak with the press. I was unhappy. How can that be? Do they want to repress my spirit? I might faint if I didn’t write for a fortnight. How much more for a year? I read the rules and discovered the bye-laws forbid ‘’...granting interviews on matters affecting NYSC policies...’’ Eureka! I found the answer. We were only forbidden from granting interviews, so I still had my freedom of expression. In fact, I knew NYSC wouldn’t have mounted any contradiction to Section 39 of the 1999 Constitution which expressly endows every Nigerian with freedom of expression. I started writing and publishing right from camp, basking in the euphoria of serving my nation. Aside delivering one of the most evocative speeches at the orientation camp, urging fellow corps members to sincere service, I re-oriented many outsiders who had no idea of what fun awaits in the uncharted hearts of the jungles. From my interior village, I darted in writing, defending Ebonyi youths after the state government’s unpopular decision to stop full payment of their certificate examinations under the flimsy, faulty pretext of meeting up with minimum wage. I wrote for the Abia State University girl gang-raped by five monsters, urging justice for the poor girl. I wrote for the NYSC girl allegedly raped by a monarch in Osun. I wrote in defense of NYSC itself, telling the scrap proponents to be more constructive in their arguments. Despite the hail of accolade I was drawing from external readers, NYSC never communicated praise or warning. Then came the delay in corps members’ allowance. I thought if I could speak for the right of others, why should I be silent now? I wrote in defense of corps members in the country who were

ESTERDAY, we yearned for a better tomorrow; today, we mourn the loss of a better yesterday, how

sad!” These words of lamentation by the late politician Pa Alfred Rewane readily came to mind on August 7. It was at the public presentation of The Nigerian Political Turf: Polity, Politics and Politicians, a compilation of public commentator and journalist, Mobolade Omonijo’s own ‘lamentations’, at The Muson Centre, Onikan, Lagos. The book is a compendium of the author’s grievances, well-informed critique and dispassionate observations of how well or otherwise, political practitioners in the country have over the years, wielded the people’s sacred mandate. As would be expected, the book launch became an avenue for the outpouring of emotions over the exacerbating plight of the embattled ‘specie’ of Nigerians – the pauperised, and indeed, the progressive all-round somersault the nation daily suffers. Hearts bled when the national leader of Action Congress of Nigeria (ACN), Asiwaju Bola Tinubu and Ekiti State Governor Kayode Fayemi took turns to speak. ExLagos State Commissioner for Health, Dr. Leke Pitan stood in for the former who was outside the country. That thoughts were provoked is an understatement. Pindrop silence gripped their hearers who often responded with deep sighs and nods of pity for the deprived lot who had for decades remained at the receiving end of misgovernance in the beleaguered polity. It won’t be wrong to surmise that Tinubu must have wept inside him while putting together the speech delivered at the event. He decried the various ills that had continued to plaque the country unabated, especially the orgy of bombing-related massacre that has for several months now, remained a recurring decimal, especially in the North. He expressed his disgust and fear over the unbridled acts of brigandage by the dreaded Boko Haram sect that has not only decimated the nation’s population without let, but has continued to make insecurity and fear the com-

‘But what should be done? Fayemi proffered this panacea: “We must move away from transactional politics to transformative leadership. Genuine representatives of our people, not retail traders of the common wealth.”

NYSC: What did I do wrong? By Folarin Samson going through unimaginable hardship. I succinctly painted the horrid pictures like a skilled artist. I must admit it was indeed the angry piece of a hungry corper. If you are in government and you read it, you will understandably be angry at the spunky brat who wrote it. And if you are outside government, you will be angry at government for treating corps members the way the writer portrayed. It was an angry piece that invoked anger. Where you direct the anger depends on what side of the divide you belong. The piece probably reflected in raw terms the mood of corps members in the country at the time. That was when NYSC Ebonyi woke up and invoked one of its rules against me. The writer must be made a public example. For daring to ask questions when he should have kept quiet, he deserved query and extension. NYSC is highly regimented, and you are expected to always play the yes-man. You can’t fight your employer or else you will be fired. In fact, it was not wise to have written such a reckless piece putting yourself in unnecessary risk. You dey do oversabi, ehn? Na only you fit write? Did you say the query came seven days to your passing out? What a rude shock that must have been. It was perfectly timed for you. And now, with that extension twig in your file, your viability for public office in the future is endangered. Those were some of the thoughts of people who had reacted out of genuine concern for Folarin. But you know what? I have no regret. I have no regret for serving with so much innocence. I have no regret for writing because it’s my calling; I take my ordeal in good faith. I am no bad writer, except when I’m angry, literary anger, mind you. At such times, I write with fire and brimstone dripping off my pen. Like a jury, I summon offenders before the table of public conscience and examine their conduct in the light of their sworn obligations to society. And was I not supposed to be angry? You must know I saved 50% of that stipend, paid 10% as tithe, fed, transported, supported siblings, fulfilled financial obligations and commitments with the remaining 40%. And how much is the 40%? 7,800. Sincerely, there are corps members with stricter financial plans. So, when there is delay payment, you can only imagine the hardship and torture. I was slammed with one month extension that led to two months delay even when none of the officials could open the particular section I breached. Together with the PRO, we perused the NYSC Bye-law searching for the appropriate section I violated. Then he finally fingered one: disclosure of official information. Laughable, isn’t it? Was I the one who disclosed the information to the public? The former Minister for Youth Affairs, Bolaji Abdullahi had

announced before I published? Little wonder even the query I was issued reflected confusion and distortion in citation. The offence was publishing; the citation was dereliction of duty. Worse, I was not paid a farthing despite the recommendation of the same invoked 2011/2012 Bye-laws that there should be half payment in certain cases. My situation must be worse than that of a prisoner, because even prisoners get fed no matter their crime. I was whisked back to my village, to the consternation of my principal and his staff. Many of the teachers were too shocked to say a word. Few who found their voice wondered why the best always get the worst treatments. When the extension letter was handed to me, my initial reaction was that of utter disbelief, sorrow, frustration and disappointment that gave vent to the morbid thought of suicide. A top government officer, formerly in the media, who was briefed and had promised to help look ‘immediately’ at the matter, did nothing to save me. His promise petered out like the gentle snuffing of a flickering candle flame. I bled deeply within. I wept. I remembered all I had showed and showered was love and passion for my nation. My June 5th page 10, full-page clincher in The Guardian Newspaper captured my excitement for NYSC. Funny enough, I gave the State secretariat my only copy which they gladly accepted. And when I expected appreciation, commendation and reward from a grateful people, I got the back-stab of extension because I asked an innocent, genuine question: NYSC, where is our allowee? The system does not tolerate questions. The system does not tolerate criticisms. Despite pressure to go public, I said nothing throughout my ordeal in deference to the section of the NYSC Bye-laws which frowns at seeking redress to grievances of this nature through the media. In my quest for justice, I would not want to be guilty of wrong doing. Hence, I bore the shame of the extension knowing the time will come to tell my story and let the people judge. As I get my certificate this month and return home into the waiting hands of loving parents, friends and loved ones, some questions trouble me that I deem fit for national meditation. What are the parameters of our reward system? A corrupt politician is garlanded with honours, a Taiwo Akinkunmi languishes unrecognized in a shanty. Clearance corpers, ghost corpers, lazy corpers cheat the system and get applauded for playing smart, an acclaimed hard-working village corper without any blot of wrong-doing gets extension even when there’s no established offence? What do I have to show for my hard labour and passion? What will be my new exhortation to my generation? Does it pay to serve Nigeria with heart and might? Will this infringement go unaddressed? Will I go, my wounds undressed? Samson sent this piece from Abakaliki, Ebonyi State

Voices of reason for Jonathan’s ears By Dada Aladelokun monest commodity around the country. For how long are helpless Nigerians going to live with this frightening situation in the face of federal government’s obvious apathy or helplessness? This is among the questions asked by the former Lagos governor. What else did he not bemoan? Everyone tacitly agreed with him as he submitted with an admonition that happenings in the country were symptomatic of a nation on a free fall (and I felt within me) into a state of despondency and abysmal national failure. His warning did not end there. Apart from reiterating his oft-repeated call for ideal federalism through decentralisation of government policies, the ACN stalwart urged the federal government to act fast on the insecurity in the country or allow darkness to descend on the land. To many, it was not surprising that Governor Fayemi spoke in the same vein. In his impressively delivered lecture, a 14-page ear-opener entitled ‘The Nigerian Polity, Politics and Politicians: Moving from Transaction to Transformation’, the activist politician dug deeper into the belly of the failing Nigerian project. Again, the crux of the lecture is the tumbled living condition of the deprived. The governor had said inter alia: “Unemployed youths, when they do not become criminals, join vigilante organisations which supplant the job of the security forces by dealing out direct justice – at which point this threatens the state’s supposed monopoly on the legitimate use of force? “Also, beyond this, they become thugs-for-hire, abused in their vulnerability by their scheming elders, who expend them in gang fights over electoral wards or dispose of them for a few N100 notes in order to destabilise towns and cities for sectarian advantage. Nigeria’s youth needs gainful employment. And so do its rural and urban poor, its old, its women, and anyone who does not happen to be lucky enough to have connections to persons of influence.” But what should be done? Fayemi proffered this panacea: “We must move away from transactional politics to transformative leadership. Genuine representatives of our people, not retail traders of the common wealth.” There is no gainsaying the painful fact that democracy, which naturally should serve the people, has over the years

been made to walk on its head in our own country, while the disadvantaged have been left to wallow in the lurch without any solution in sight. Besides Tinubu and Fayemi, there are other patriots across the land, though numerically insignificant, who have always shared their feelings on the worsening plight of the ordinary Nigerians who are being dragged through the valley of shadow of death by those that should be their saviours. With the stupendous endowment of the country, how many Nigerians have access to qualitative health, good roads, worthy education, befitting shelters and even a decent meal per day? Why should a family attempt to sell one out of four children to send eldest among the rest to school? Why should a car owner think of selling his vehicle simply because he cannot afford the cost of fuelling it? When will exploitation and oppression of the poor end in Nigeria, a country where official kleptomania has become the norm? These are among the posers raised by Tinubu and his political son in Ekiti at the event. And finding answers for them remains the central concern of Omonijo’s book. But will the President take a bite from the meat of the important forum and give the needy a new lease of life? The waiting game continues! • Aladelokun is a staff of The Nation

‘It won’t be wrong to surmise that Tinubu must have wept inside him while putting together the speech delivered at the event. He decried the various ills that had continued to plaque the country unabated, especially the orgy of bombing-related massacre that has for several months now, remained a recurring decimal, especially in the North’

THE NATION MONDAY, AUGUST 13, 2012

COMMENTS

HE controversy within the Edo state branch of the People’s Democratic Party PDP as to whether to challenge the last governorship election at the tribunal, has thrown up events reminiscent of the 2011 governorship poll in Imo State. Reports have it that the party’s Director of publicity, Okharedia Ihimekpen had justified the petition filed by the party on the ground that it will deepen democracy and the rule of law. But the state Chairman, Dan Orbih countered, arguing that the party decided not to file any petition at the tribunal in the interest of the state. He said the party leadership was mindful of the consequences of protracted litigation on the state even as he described the outcome of that election as ridiculous and at variance with rational reasoning. There are issues in this development. First, it is either the petition did not have the blessing of the leadership of the party or they had a rethink and decided not to continue with it. Secondly, the party believes it could still sufficiently lay claim to victory if it decides to contest the election outcome. But for the reasons adduced, they decided to give peace a chance. It is good a thing the party has come out clearly stating that it is no longer interested in the petition. We do hope it will be so. The logical expectation is that the party will take necessary steps to withdraw any petition on the matter already filed at the tribunal. In which case, we may not see a replay of events that characterized the last governorship election in Imo State. In that election which shares similar traits with the one in Edo, the then governor Ikedi Ohakim, after a clear humiliation at the poll, congratulated the winner Rochas Okorocha and told the nation that having accepted its outcome, he was not going to challenge the election at the tribunal. But he later connived with the state chapter of the same PDP

‘What the PDP could not achieve in Edo and Imo because of the stiff resistance of the people, it thought it could procure through the tribunal’

Emeka OMEIHE 08121971199 email: EmekaOmeihe@yahoo.com

Between Edo and Imo polls to challenge the same election. By fronting the PDP, he shielded himself from the resentment and public contempt he would have attracted by swallowing his words. But the fact that he stood out as the sole beneficiary of that litigation unmasked the deceit in the entire episode. Apparently basking on the awesome federal might, they were later to invent sundry subterfuge and spurious figures to sway the tribunal to award them victory. But they woefully failed. It is hoped that we will not witness a replay of the Imo experience in Edo. Unlike the case of Imo, Adams Oshiomhole performed very creditably. His footprints are palpable in the rapid infrastructural development the state witnessed since he came on stream. As a former labour leader, he had no doubt what the needs of the common people were and how to align with the people. Thus, he set out to address these needs which in turn endeared him to the people. The huge success he made was responsible for the large turn-out of voters who did not want to leave any thing to chance in seeing to it that their performing governor was returned overwhelmingly. And they succeeded in giving him another mandate through a landslide victory. Given the margin and general spread of votes with which Oshiomhole defeated his closest rival of the PDP, one was taken aback that the PDP could even contemplate going to the tribunal to contest its outcome. They said their motive was to deepen democracy and the rule of law; whatever that meant in the present circumstance.

PDP, heal thyself

NDISCIPLINE is a growing cankerworm in Nigeria’s political parties. The People’s Democratic Party, PDP, has secured the greatest share of this malady which seems so intractable, probably due to the size of the party that prides itself as the biggest in Africa. More significantly, due to lack of will to institute reforms that will properly structure and position the party – making it truly an association of people of like minds – it has become a big headache of the PDP. For now, all you have in PDP are vote seekers, disparate politicians who at the slightest provocation will revolt against the party and its leadership. It is indiscipline for party men to see crossing political lines as “no big deal”, throwing overboard tradition, principle and culture that party men should hold on to. And as toddlers crossing a very narrow backyard gutter, they jettison all that is sane in rebuilding their political party and ensuring order. In this same Nigeria for example, a presidential aspirant would be the candidate of one party in the morning, another party in the afternoon, and yet before dawn the candidate of another political party. Without any shame, with such speed as chameleons replace his clothing they change party affiliations. The surprising thing again: the

‘The Alex Ekwueme Committee established in June 2012 and mandated to advise the party leadership on the best way to return it to the people as envisaged by the founding fathers must deal extensively with this rampaging scourge. The committee must use this development to fashion out a reform agenda, solidly built on party discipline without which not significant achievements can be made by the party’

But beneath this facade of a reason, is this thinking within the political class that electoral victory could be procured through hook and crook. This is very common among members of the ruling PDP. Hiding under intimidating federal powers, they are propelled by the delusion that leadership can be imposed on an unwilling electorate without dire consequences and that the votes of the people do not necessarily count. That was why despite the humiliation and disgrace suffered by Ohakim in the hands of the Imo electorate, he still shamelessly went to the tribunal with the aim of procuring questionable victory. That also accounts for why the same party in Edo had the effrontery to file a petition even with the disgrace suffered by their so-called godfathers at their own backyards. It is only in this country that such a thing can happen. If the outcome of the Edo election still leaves the PDP in comfort that they could upturn it at the tribunal, then something must have gone awry with our justice system. As I asked in a write-up on the Imo case, so if Charles Airhiavbere of the PDP is by any contrivance foisted on the Edo people now as governor, will take up the offer? This poser is germane as it mirrors the character of some of those we present as our leaders. If they are people of character and high integrity, if they have any modicum of respect for the will of the electorate as expressed at the ballot box; they will fear to approach the tribunal having been overwhelmingly rejected by their people. For, any attempt to impose them on the

same people will amount to an obvious invitation to anarchy. But these may not matter to them since vaulting ambition and selfserving interests have become their main driving force. It is that same feeling that propelled the party to contemplate challenging the Edo election despite its woeful outing. We saw it in Imo State and it is playing out again in Edo State. What the PDP could not achieve in Edo and Imo because of the stiff resistance of the people, it thought it could procure through the tribunal. Can any person trust such a party to be a believer in free and fair elections? And that brings to mind some statements that have become commonplace since the conclusion of the Edo election. There is no doubt the outcome of the Edo election gladdened the hearts of many. The doggedness of the electorate in ensuring that the election is not rigged coupled with the demystifying of the so-called godfathers has resulted in very positive comments as to its significance for the sustenance of democracy. It is common to hear such patronizing statements as, the Edo election is a classic demonstration of the will power of the people; it has shown that the people can take control of their destiny or that it has shown that democracy can survive in this country. Such kind and generous words can reasonably be applied to the Edo case. But that was not the first instance as Imo ought to take the glory of such claims before Edo. There are many reasons for this. Imo had a sitting governor of the PDP stock. He had the advantage of the power of incumbency and also the backing of the federal government. But that party was resisted even physically from its plans to rig the election. That was why they had a supplementary election. That was why election was stalled in the Oguta local council even on the rescheduled date. But for the resilience and strong will power of the people, the matter would have turned out differently. Oshiomhole in contrast had the power of incumbency. But the centre was against him. Thus, in terms of contributions to the deepening of democracy, Imo stands shoulders higher than Edo because it was able to unseat a PDP governor. It is vital to make this point else, there may be distortions someday.

By Kehinde Laniyan itinerant politician may still be welcome home with drums, drinks and celebration back into the fold of people he had publicly derided and called all sorts of names using unprintable words. PDP, as the strongest political party in Nigeria, could have given the polity a ray of hope by setting the pace in instilling party discipline, unfortunately very familiar happenings in the House of Representatives had deemed the hope of seeing a successful reform, reconciliation and rebuilding of PDP. Party discipline which was promised by PDP Chairman, Alhaji Bamanga Tukur, while seeking the mandate of his party men during the PDP Convention on March 24, is a crucial element now. This is because party sacrileges have become fashion, with party leadership in the legislature ensuring the defeat of sound government policies in collusion with the opposition legislators. Indeed, the conduct of PDP members in the House during the call for 100% 2012 budget performance from the executive - a rarity anywhere in the world - had cast some shadows on Alhaji Bamanga Tukur’s reform agenda since party men had failed severally to toe party lines in debates, voting and policy matters. Rather than strengthening the party, expectations of seeing a strong PDP ahead of 2015 had been dampened with rebellious attitude. The 2015 election will be a tough challenge indeed for the PDP that would have dominated the Nigerian political landscape for unbroken 16 years by the year 2015. It will equally be a disaster for the party if elections are approached with all these baggage, human liabilities and fractures. Certainly PDP needs strong party discipline, order and camaraderie to scale the impediments of 2015 elections. Today, the leadership of the PDP in the House has bellicose attitude against the entire

party and it will not be of assistance in the tall order to rebuild PDP. For example, a PDP member and spokesperson of the House saw himself more as opposition party megaphone, constantly regurgitating nuances of opposition. The language was also not decorous enough to rebuild a party that is aiming at getting very strong for future challenges. Some PDP honourable members too had also become vociferous, following the path set by opposition and this led to the controversial impeachment warning served on President Goodluck Jonathan who is the leader of PDP. Even, honourable members who witnessed the day’s proceedings when Minority Leader Femi Gbajabiamila interjected with his “amendment to a motion”, issuing ultimatum that performance of budget be taken to 100%, were surprised because the subsisting original motion was drowned in subsequent public debates led by a PDP legislator. Attitude of this nature had gone beyond the calling of duty. They cast pathetic picture of ingrates to party mission; men who enjoy deriding the platform that elevated them in the first instance. For instance, Zakari Mohammed after Thursday sitting of the House had with no charitable words likened the PDP government to a despotic government and in several pages of paid advertorial explained that the PDP government was suffering from military hangover. The PDP National Working Committee, NWC, meeting of Thursday July 26 that was held to discuss the impeachment threat had assured Nigerians that the party would intervene through taking over the process and by reconciling the legislators and the executive. “This thing must be attended to diplomatically, so that wherever anybody has gone wrong it will be sorted out and eventually this storm will definitely die down”, the Deputy National Chairman of the PDP, Dr. Sam Jaja, explained while

briefing journalists after the meeting of NWC. This is the right attitude to containing the festering problem before it gets out of hand. There is no doubt that PDP had some internal mechanism for addressing conflicts on policy which has failed to work in this instance thus leading to open and intemperate exchanges among top party men thus emboldening even PDP legislators to show open rebellion to party rules. One PDP legislator told the media that “no amount of intimidation and blackmail” will starve off their mission to impeach a President elected on the platform of PDP. The 50-man Committee of eminent members of the party that was established by the Chairman, Tukur, has a great job to do, drawing from the lessons of the unpleasant skirmishes between the legislators and the Presidency. The Alex Ekwueme Committee established in June 2012 and mandated to advise the party leadership on the best way to return it to the people as envisaged by the founding fathers must deal extensively with this rampaging scourge. The committee must use this development to fashion out a reform agenda, solidly built on party discipline without which not significant achievements can be made by the party. •Laniyan, policy analyst, sent his piece from Abuja.

‘The 2015 election will be a tough challenge indeed for the PDP that would have dominated the Nigerian political landscape for unbroken 16 years by the year 2015. It will equally be a disaster for the party if elections are approached with all these baggage, human liabilities and fractures’

THE NATION MONDAY, AUGUST 13, 2012

BUSINESS THE NATION

E-mail:- bussiness@thenationonlineng.net

ISSUES

Agric Scheme may be scrapped THE Agricultural Credit Guarantee Scheme (ACGS) , one of the Central Bank of Nigeria’s (CBN’s) interventions in the real sector of the economy may be scrapped in October.

- Page 26

Car imports up by 15%

NEW car imports into Nigeria rose by 15 per cent in the first half of this year, compared with the same period last year, as credit flows recovered, dealers said.

- Page 26

- Mrs Omobola Johnson, Minister of Communication Technology

THE CEO

Budget: Controversy over cash flow and increased oil production - P. 27 News Briefing

The goal of the National ICT policy is to provide a framework for streamlining the ICT sector and enhancing its ability to help address some socioeconomic and development challenges.

Why CBN should remain independent’ - P. 32

CBN to release report on microfinance banks T HE Central Bank of Nigeria (CBN) plans to release the report on the performance of the 671 microfinance institutions (MFIs) in the country before the end of the year, The Nation has learnt. The report, which is expected to appraise the sub sector, will provide information on the performance of the banks, their capital base, participation in the Rural Finance Institutions Development Programme (RUFIN)and loan recovery efforts, among other initiatives. Sources close to the apex

By Akinola Ajibade

bank said the report on the activities of the MFIs would be completed by the end of this year and presented to the public. The source, who spoke on condition of anonymity, said the report would capture how the banks have been able to service their 346,266 registered customers, among other issues. Speaking on the issue, a former director, Budget and Supervision, CBN, Titus Okunronmu, said such a report is timely be-

cause the problems facing some of the institutions. Okunronmu said CBN’s decision to schedule the report for the end of the year is so as to enable it get enough information about the activities of the institutions. He said: “The apex bank collects information on banks throughout the year. I think the report is going to say a lot about the operations of the MFIs, their capacity for growth to meet the yearnings of depositors and loan portfolios, among other issues. It is good for the public be-

cause the report will expose the MFIs to the public. Through the report, the members of the public will know whether to continue doing business with some of the banks. It is a good information that should be made readily available to the people.” He said the decision to release the report is good for the sub-sector, noting that such a report is difficult to come by because it is highly investigative. “If they tell us the position of the banks, many would run away. But they

Finance Houses funding FINANCE Houses operating in the country have lamented the limited sources of funding for operators of the sub-sector.

- Page 30

CBN boosts naira THE Central Bank of Nieria (CBN) last week moved to improve the status of the naira by auctioning N172 billion in excess of N142 billion initially targeted.

- Page 31 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 $35.8b FOREX CFA 0.2958 EUR 206.9 £ 242.1 $ 156 ¥ 1.9179 SDR 238 RIYAL 40.472

•From left: Mallam Ahmed Kuru, Managing Director/Chief Executive Officer, Enterprise Bank Limited (EBL); Mr Ayotunde Ogunsakin, Commissioner of Police, Special Fraud Unit and Mr Chuks Ekpunobi, Enterprise Bank Chief Inspector during a visit by the Police chief to Ogunsakin in Lagos.

‘Large PFAs manage over N500b pension funds’

ARGE Pension Fund Administrators (PFAs) manage over N500 billion pension funds, Chairman, Pension Operators Association of Nigeria (PENOP), Dave Uduanu, has said. He told The Nation that pension operators now rate second in the financial sector after the banks, adding that pension fund administrators are being repositioned to play a better role in the larger economy, as most PFAs have recapitalised to N3 billion. He said: “Pension fund administrators are being repositioned to play a better role in the larger economy. By way of rivalry, the only financial institutions that are bigger than the PFAs today

By Akinola Ajibade

are the banks. PFAs are bigger than insurance companies because they manage bigger assets. So, the size of a company is not dependent on its shareholders’ funds, but the assets it manages. The biggest PFAs manage in excess of N500 billion, while the biggest insurance firm

may be N50 billion, he stated. “The industry’s shareholders’ fund is more that N18 billion, N1 billion is the minimum for a PFA, but some PFAs have N2 billion, while others N3 billion.” He said the shareholders’ fund of PFAs is not what determines the impact of the pen-

sion in the larger economy, adding that it is the size of the pension fund which is about N2.6 trillion. It is this N2.6 trillion that is invested in the various instruments, such as the money market, bond, capital market, infrastructure and others that would impact on the larger society, Uduani added.

Fed Govt to sell N75b of domestic bonds in August

HE Federal Government plans to raise N75 billion ($472million) in local bonds with maturities of between five and 10 years at its regular auction this month, the Debt Management Office (DMO) has said. The debt office, according to Reuters, said it would sell

N25 billion apiece of five-, seven- and 10-year bonds with terms to maturity of four years and seven months, six years and nine months, and nine years and four months. The bonds are re-openings of previous issues. “The DMO reserves the right to alter the amount al-

lotted in response to market conditions,” the debt office said in a public notice. The Federal Government issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

don’t normally give such information until there is crisis. The report will tell us the money the MFIs are having, and how they are using the money. It will tell us whether the money is well spent or not. From experience, MFIs are ready to give loans to customers,” he added.

Interbank rates fall, banks access repo

IGERIA’S interbank lending rates eased on Friday to an average of 15.83 per cent, two days after the overnight borrowing rate hit a more than two-year high of 35 per cent on the back of Central Bank of Nigeria (CBN) measures to tighten liquidity. The cost of borrowing among banks, according to Reuters, was, however, higher than the 17 per cent on average it closed penultimate Friday. The banking watchdog two weeks ago raised the cash reserve requirement for lenders to 12 per cent from eight per cent and reduced net open foreign exchange positions to one per cent from three per cent to support the currency. The bank also two weeks ago barred banks that borrow funds from its repo window from participating in foreign exchange auctions or lending the same funds to other banks. Dealers said rates went up on Wednesday because many banks could not access the central bank’s repo window to borrow short-term to meet their obligations as a result of the new rules. The secured open buy back (OBB) rate, which jumped to 28 per cent on Wednesday, dropped to 15 per cent on Friday and lower than the 16.50 per cent it closed last week Friday, while the overnight rate tumbled to 16 per cent, against 35 per cent on Wednesday. Dealers said the market will remain short, with a cash deficit of about N126 billion ($793.70 million) on Friday, despite inflows on cash call payments of N22 billion to joint oil production partners and N81 billion in matured open market operations bills. “The market will still be tight next week (this week), so we expect the cost of borrowing to inch up a little above the present level, but not as high as the 35 per cent seen on Wednesday,” another dealer said.

THE NATION MONDAY, AUGUST 13, 2012

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 7. Arik 07.15 08.15 7. Chanchangi 07.15 9. Air Nigeria 08.15 09.35 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. Aero 12.20 13.30 15. Air Nigeria 13.25 14.45 16. Chanchangi 13.30 14.30 17. Arik 13.45 14.45 18. IRS 14.00 15.20 19. Aero 14.10 15.30 20. Air Nigeria 14.50 16.10 21. Chanchangi 15.30 16.30 22. Arik 15.50 16.50 23. Aero 16.00 17.20 24. IRS 16.30 17.50 25. Arik 16.50 17.50 26. Chanchangi 17.30 18.30 27. Air Nigeria 17.35 18.55 29. Air Nigeria (T/TH) 18.30 19.50 20. Arik 18.45 19.45 31. Aero 19.20 20.40

1. 2. 3. 4. 5. 6. 7. 8.

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

1. 2. 3. 4.

Arik Aero Arik Aero

1. Arik 2. Aero 1. 2. 3. 4.

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

08.30 09.10 11.50 12.45 13.40 15.20 16.30 16.40 08.50 12.40 14.10 17.20 12.15 12.45 09.10 11.00 11.10 16.20

LAGOS – PORT HARCOURT (CIVIL) 1. Aero 07.15 08.35 2. Arik 07.15 08.35 3. Arik 09.00 10.20 4. Aero 10.50 12.30 5. Arik 11.40 13.00 6. Air Nigeria 12.00 13.10 7. IRS 13.30 15.00 8. Arik 14.00 15.20 9. Air Nigeria 16.00 17.10 10 Arik 16.10 17.30 11. Aero 16.15 17.30 12. Arik 17.10 18.30 1. 2. 3. 4. 5.

LAGOS – OWERRI Aero 07.30 Arik 07.30 Air Nigeria 13.40 Arik 14.00 Arik 16.30

08.40 08.40 14.55 15.10 17.40

1. 2. 3. 4.

Arik Aero Arik Aero

LAGOS – WARRI 08.15 11.50 11.55 14.55

09.1 12.50 12.55 15.55

1. 2. 3. 4. 5.

LAGOS – KANO Air Nigeria 07.10 IRS 08.00 Arik 12.20 IRS 14.00 IRS 18.15

08.50 09.45 14.00 15.45 19.55

LAGOS – OWERRI 07.20 14.00 16.30

08.30 15.10 17.40

1. Arik 2. Arik 3. Arik

LAGOS – MAIDUGURI 1. IRS 11.15 13.15 2. Arik 15.50 18.00 LAGOS – ILORIN 1. Overland 07.15 2. Arik (M/T/TH/F) 17.30

08.00 18.00

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

•From left: Mr Viv Oates, Africa Leader, Advisory Services, Ernst & Young; Mrs Funke Osibodu, Group Managing Director/Chief Executive of Union Bank of Nigeria Plc; Mr Philip Ikeazor, Executive Director, CII&T, Union Bank and Mr Kunle Salau, Partner, Advisory Services for West Africa, Ernst & Young, during their courtesy visit to Union Bank Head Office in Lagos.

Agric Credit Scheme may be scrapped in October

HE Agricultural Credit Guarantee Scheme (ACGS), one of the Central Bank of Nigeria’s (CBN’s) interventions in the real sector of the economy may be scrapped in October. The Nation’s findings showed that the scheme may be collapsed after apex bank’s planned launch of Micro Small and Medium Enterprises (MSME) Fund. The agric scheme has guaranteed N55.99 billion for 763, 514 borrowers while a total of N34.11 billion was recovered from 562,224 borrowers. The apex bank is also considering an intensive performance rating for commercial banks to determine their effectiveness of lending to agriculture. To achieve this, the apex bank has set aside, N1.5 billion, out of the N75 allocated for the full implementation of the Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) project. A statement from CBN Director, Development Finance Department, Paul Eluhaiwe, said the rating of the banks is one of the strategic measures being taken by the apex bank to stimulate lending to the sector.

•N55b guaranteed for farmers By Collins Nweze

According to him, the NIRSAL objective is to de-risk agriculture finance value chain, build long term capacity and instituionalise incentives for agricultural lending. He explained that potential lenders include traditional banks, microfinance institutions, trade finance providers, asset managers, and private equity funds. Credit to the sector could also come as a loan portfolio, a loan, a bond or in some cases, a specific commitment letter. He said NIRSAL Credit Risk Guarantee range from 30 per cent to 75 per cent and could be loan principal, or loan principal and interest payments. The funds are targeted at farmer groups, large corporate farmers, processing companies, agricultural service providers, logistic companies, wholesale distributors, among others. It can also be targeted at whole agribusiness value chain covered across all crops and livestock activities. He said NIRSAL was a public/pri-

vate initiative designed by the apex bank and the Federal Ministry of Agriculture in 2011 to disburse such grants to financial institutions for easy access by farmers nationwide. He further explained that N45 billion had been earmarked from the N75 billion as loans to the farmers, while the balance would be used to train the farmers and insure them. The CBN Director said the funds will be driven by five pillars, in which N45 billion will be channelled into risk sharing facility. There is also a N4.5 billion insurance facility that links insurance products to loans provided by banks to borrowers. He reaffirmed that NIRSAL’s target is to de-risk agriculture finance value chain, build long term capacity and institutionalise incentives for agricultural lending. According to him, additional technical assistance facility of N9 billion, will be used in building capacity of banks, microfinance institutions, agricultural value chain actors and expanding financial inclusion.

Car imports up by 15% as credit recovers

EW car imports into Nigeria rose 15 per cent in the first half of this year, compared with the same period last year, as credit flows recovered, dealers said. Car sales in Nigeria are a proxy measure for consumer purchasing power and analysts see them as a good indicator of economic growth in the continent’s most populous nation. Nigeria’s economy grew 6.17 per cent in the first quarter of this year, down from 7.68 per cent in the fourth quarter last year, according to official figures. Port figures according to Reuters, showed new vehicle imports increased to 24,158 units in the first six months to June, from 21,024 units in

the same period of last year, as bank credit started to trickle in, according to vehicle importers. Bank credit to the private sector grew 48 per cent at the end of June, compared from the same period a year ago, the Central Bank of Nigeria (CBN) figures showed, boosting demand for big-ticket purchases including vehicles. Credit flows grew less than two per cent in 2010 as Nigeria’s banking crisis bit. Dealers said vehicle imports had started to recover, driven by an increase in passenger cars, after it took a hit at the start of the crisis, with credit sales then almost at zero. Passenger vehicles accounted for 54 per cent of new car imports in the first

half, while the remaining were commercial, port figures showed. Lenders in Africa’s most populous nation have all turned a profit in the first half, driven by increased lending, after a 2009 bailout and subsequent sell off of bad loans to a governmentowned entity AMCON balanced their books. Dealers said most consumers in Nigeria rely on bank financing to purchase vehicles and estimated the pentup demand meant sales could recover sharply as credit recovers — although central bank measures to tighten liquidity this week have pushed up interbank rates, which could hurt lending. Credit accounted for around 22 percent of a total 75,000 new car imports in 2008, before the bailout.

Shell, Caverton Helicopters lauded on local content R EGULATORS and other stakeholders in the oil and gas and the aviation sectors have commended Shell Petroleum Development Company and Caverton Helicopters on their strong commitments to indigenous manpower and capacity development in fulfillment of the objectives of the Local Content Development Act. This commendation was given at the Business Performance Review of the five-year contract awarded in 2010 by Shell to Caverton Helicopters/ Dancopter for the provision of aviation support services. Won after a competitive bidding process, the contract is the biggest ever awarded by the oil multi-national to an indigenous com-

pany and is seen as a major milestone in a field previously dominated by foreign companies. The meeting was held primarily to review the performance of the contract as indicated in the contract documents, but it ended not only with praises for both partners but with a strong vote of confidence in the Local Content Development Act, a legislation designed to aid the development of indigenous capacities in the oil and gas sector of the economy. The consensus among stakeholders at the meeting, which held at Sheraton Hotel in Lagos, was that the Shell/

Caverton Helicopters’ partnership is early proof of the workability and gains of the national content development initiative of the Federal Government. The Director-General, Local Content Development Board, who was represented by Mr David Adeyeye, lauded Shell for taking local content development seriously and for taking the lead in this area. He also commended Caverton Helicopters for making a bold statement on behalf of indigenous companies. “Caverton Helicopters has demonstrated that, as a nation, we can succeed if we are serious about capacity building and that the opportunity and potential to grow and do more is there,” he said..

Aero loses $7.5m to bird strike By Kelvin Osa-Okunbor

IRDS strike has cost Aero Airlines over $7.5 million this year, the Managing Director, Captain Akin George has said. He told The Nation that on the average, the airline spends over $1.5 million to fix an engine. This is apart from the amount paid as taxes, on the engines, when they are flown for maintenance abroad, he added. George explained that until the issue of easy access to finance through multi-lateral institutions with low interest rates is fixed, indigeneous operators would continue to have funding challenges. He said the high interest rates charged by banks would not attract any operator, who may be able to pay back, the loan, given the current state of operations. The Aero boss explained that the merger and consolidation of carriers canvassed by some experts in the industry may not be achievable, because of the personal nature of aviation. He explained that until the safety component of the airport remodelling is fixed, the state of facilities at the nation’s airports still remains unsatisfactory. George further said the government should take a firm stand on the removal of duties on aircraft and spare parts to reduce the burden of high cost, which operators are grappling with.

Group moves against building failures By Okwy Iroegbu-Chikezie Asst Editor

IQUED by frequent cases of building collapse in the country, professionals in the nations built environment have taken a stand against the recurring industry menace. In separate interviews with The Nation, the professionals lamented that at a time other countries are taking buildings to the skies, the nation is still battling with the problem of building collapse. National Publicity Officer of the Nigeria Institute of Building (NIOB), Kunle Awobodu, said relevant professional bodies in the sector have realised that the challenge cannot be solved by rhetoric or promulgation of laws, saying the reality staring the nation in the face called for a practical approach to solve the man- made problem. “We have evolved a practical approach to solve a man-made problem that has so much cast aspersion on the professionals in the construction industry. When a problem has reached epic proportion, it is subjected to serious research and data remains a fundamental requirement. Records reveal that no Structural engineer or professional builder was involved in any known building collapse here in Nigeria,” he stated.

THE NATION MONDAY, AUGUST 13, 2012

ISSUES

• Dr Okonjo-Iweala

•Speaker House of Representatives, Hon Aminu Tambuwal

Budget: Controversy over cash flow and increased oil production As the controversy surrounding the implementation of the 2012 budget, which pitched the executive arm against the legislature brews, the Finance Minister, Dr Ngozi Okonjo-Iweala’s explanation that cash flow is the challenge the government faces, has further compounded the issue, when juxtaposed against Nigeria's recently increased oil output, writes EMEKA UGWUANYI N the past few weeks, the feud between the executive and the legislative arms of government over the level of the 2012 budget implementation dominated the news space. While the executive arm insisted the implementation level is impressive considering the time the actual implementation started, the legislature thinks otherwise. The insistence by the National Assembly that the 2012 budget implementation is behind schedule has been consistently denied by the government. The Minister of Finance and Coordinating Minister of the economy, Dr OkonjoIweala, in her defence of the budget implementation, which she put at about 56 per cent as at

the end of June, said the process was on course, but alluded to cash flow as one problem government is encountering in the course of its implementation. The fact that Nigeria's economy is monolithic, majorly driven by the petroleum sector, which according to the World Bank accounts for more than 80 per cent of its revenue and almost 95 per cent of its exports or foreign exchange earnings, means that any development in the sector has direct impact on the fortunes of the nation's revenue profile. Consequently, the implementation of budget and its performance is directly related, to a large extent on the production and export level of its crude.

The debate Okonjo-Iweala's reference to cash flow as a challenge facing the government in its budget implementation, has drawn the ire of stakeholders, who argue that at a time crude production is rising, the excuse that cash is in short supply would be untenable, since there is a direct correlation between crude output and accrued revenue. In the heat of the controversy, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu announced that oil production had increased to 2.7 million barrels per day (bpd). It is in view of

the development that many Nigerians were appalled and disenchanted by Okonjo-Iweala's testimony before the National Assembly that the country suffers cash flow constraints. It was a worrisome statement as it was difficult to reconcile the increasing oil output and the dwindling cash flow. The issue tended to reinforce the doubts on the buoyancy of the economy and again brought to the fore the question on whether Nigeria is not actually broke. In her words: "The country is absolutely not broke. And I want to repeat that again, because there are those who would want to push Continued on page 28

THE NATION MONDAY, AUGUST 13, 2012

ISSUES

Budget: Controversy over cash flow and increased oil production Continued from page 27

that idea. The country is not broke; the country may have cash flow problems from time to time. That is normal and is to be expected because a person may be very wealthy, he may have a lot of assets but at a particular point in time the stream of income may delay. "You are running a business, you can be assets rich, therefore you cannot be broke, but you may have a month when the flow is not as it should be because the price of that product may be lower. The time for you to collect money from that product may take a little longer because you extended credit to people by selling to them and then telling them you will collect later. So, sometimes there may be temporary cash flow issues. But is the country broke? The answer is no."

Joint Venture Notwithstanding the argument, the assertion raised some questions, as it would not be the first time the question of whether Nigeria is broke, would arise. In 2010, a sitting minister declared that the country was broke. The Federal Government in its usual manner debunked the statement and afterwards the minister lost his job. The fact remains that there are a couple of factors that could come into play that can result in fluctuation in the cash flow equation of a country, Nigeria inclusive. The economy is driven by the oil and gas industry, and the international price of oil has been hovering around $100 per barrel in the last two years. As is commonly observed, the oil business has some unpredictable complexities, therefore, the revenues from oil is not a straight mathematical formula of multiplying output by the prevailing market price, said an operator. That Nigeria produces 2.7 million barrels doesn't translate to that volume multiplied by the price in the international market. The petroleum extraction business is a capital and technology intensive one. As a result of the level of risk involved , no one country does its petroleum business alone. Companies enter into joint ventures and several different partnerships to share or minimise risks. In Nigeria's case, the situation is worse because the country depends on foreign multinational companies for funds, technology and skilled manpower. It is only of recent that the situation started improving especially in the area of development of indigenous skilled manpower base. Therefore, Nigeria doesn't totally own its entire oil production as the operator companies, Shell, ExxonMobil, Chevron, Total, Agip, Addax and a couple of other indigenous companies take their equity shares and production costs depending on the type of production arrangement, before the government access its shares. For example, in Joint Venture arrangements with the international oil companies (IOCs), the Federal Government, through the NNPC, shares production costs and oil output in a 60:40 ratios. The government owns 60 per cent while oil companies have 40 percent. But in some cases, the sharing ratio can be 45:55. In the joint venture, the government pays 60 per cent production through cash calls but in the Production Sharing Contracts (PSCs), where the oil companies bear total production costs, the equities stake is also adjusted to reflect the associated risks. Besides, because the country is largely import-dependent, in-country value creation from the oil proceeds is minimal as most activities are exported. The immediate former Executive Director, Operations, Nigerian Petroleum Development Company (NPDC), the exploration and production arm of the NNPC, Ikechukwu Okafor, confirmed this when he said that most Nigerians don't know the working dynamics of the oil business. He said Nigeria's oil is not owned 100 per cent by Nigerians. He said: "I don't know the reasons for the Finance Minister's cash challenges claims and definitely I cannot speak for her. But in terms of production and as a professional, indeed, we have 2.7 million barrels of oil production. However, 2.7 million barrels, remember very well the oil doesn't completely belong to Nigeria as a country. He said the Federal Government's stake is petroleum profit tax (PPT) and royalty, " that is actually what goes to the government's coffer," he said, adding, "the oil companies have to remove the cost of operation. Therefore, the 2.7 million barrels doesn't translate to that volume multiplied by the oil price. What accrues to the Federal Government depends on what is in the

•Yakubu

•Ene

•Oil tank farm

agreement in the respective acreages. Some have very high returns and some don't. But either way, the Federal Government still has to get its PPT and royalty, and the oil companies, depending on their percentage equity will get that part of production. The 2.7 million barrels is not totally Nigeria's oil."

NNPC’s perspective A source from the NNPC who spoke in confidence, also said the 2.7 million barrels per day is just mere capacity. The country doesn't export 2.7 million barrels per day. The country's oil export has not exceeded 2.4 million barrels per day. This is not as a result of production quota. The Organisation of Petroleum Exporting Countries (OPEC's) quota exists only in principle; it is mere gentlemen's agreement, hence you see member countries increasing production levels whenever oil price goes up. The source also noted that it is not always that the entire oil is sold, adding that it is out of the 2.4 million barrels per day that NNPC's daily 445,000 barrels is extracted. The source said: "The 2.7 million barrels per day production announced by the NNPC's boss, is not our export volume. It only means that the country has the capacity to produce that volume whenever there is need to do so. Currently, there is no decision to sustain the 2.7 million production level as we are still doing 2.4 million, which is not as a result OPEC quota restriction. Remember also that it is from this volume that the corporation gets its daily 445,000 barrels per day allocation, which it pays for, depending on the prevailing market price. It is not as if NNPC

collects the allocation free. "Apart from this, remember that we sell our crude in cargoes, and in some months, we don't sell all the cargoes for lack of buyers. It is not always that we sell all the reportedly produced oil, and in such months, the unsold cargoes are definitely carried over to the next month. That is why a lot of transaction reconciliation and harmonization are done every month. The oil business is not as simple as non industry people think, therefore, it is erroneous to just multiply out the production volume by the market price per barrel."

Operators’ perspective The Chairman of Petroleum Technology Association of Nigeria (PETAN), Emeka Ene, who also manages an oil service firm - Oildata, said the increasing oil production and the prevailing cash crunch, is indicative of the state of the economy. He said the development shows that the challenges surpass the resources adding that the simple reason for this is that oil resources and money that is realised from the oil don't create reasonable value in-country. Oil is Nigeria's major export yet we don't maximize the value. He said: "I think to a large extent, it is a reflection of what I believe the government is trying to achieve and what we have been advocating in the oil industry, which is, activity should be the focus rather than just the end result. Everybody focuses on the budget, and the budget for example, is an end result, reflecting the money to be spent, whereas we should be concerned with what activity this money will generate. If you have a budget of $10 billion for the oil industry,

‘Therefore, Nigeria doesn't totally own its entire oil production as the operator companies, Shell, ExxonMobil, Chevron, Total, Agip, Addax and a couple of other indigenous companies take their equity shares and production costs depending on the type of production arrangement, before the government access its shares’

we should ask what quantum of activity would Nigerian companies engage in during the life of this budget. When put this way, we can create the multiplier effect. "Yes our production is going up, but it appears that the challenges are outstripping the available resources. The way out is not just the private sector, but to keep on attracting investment. It is vital to understand that government cannot do it all. I think once there is direct engagement between the private sector and the government - the executive and the National Assembly. We will see a lot more impact in things that are done. When Nigerians appear in foreign fora looking for investment, they tend to forget that the best investors in Nigeria are the investors that are already here. "If we need to grow as a country, we should look at what South Korea, India and China have done. I met an Indian company a couple of weeks ago in India. The CEO of this company had a career in UK and relocated back to India to start his company in the late 1980s. The CEO said that he got back from UK, the Indian government gave him $300,000 to set up a business in India, and that was why he came back to India. In other words, there is linkage between creating the essential infrastructure and investment that you will do, which means that at the end of the day, Nigerians are the best investors in Nigeria. If you invest in them or create the partnership that is required to back them, you can develop strength which starts from the oil industry by building services and strengthening the fabrication engineering. These are also applicable in the power industry or in the agricultural industry. We are saying that for us as country to have full benefits of investing in Nigeria, start with Nigerian investors who are already on ground and I assure you that private sector can deliver Nigeria." In view of the challenges, the operators reinforced the need for the National Assembly to thoroughly debate the Petroleum Industry Bill (PIB), which is before them. They are of the view that if the legislature turns out a balanced PIB before passage into law, it would substantially address the gaps in the industry but noted that investment inflow must be encouraged to keep the oil industry afloat. For instance, the PETAN chief said: "The need for the PIB came because there were certain gaps in the industry that existed that we needed to close. Our petroleum business is driven by a contraption, which is Petroleum Act, and a contraption of policies and interventions over many years. As at 2012, the Nigerian oil and gas industry and fracking legislation need to be in the 21st century. In other words, looking at oil as a strategic resource and see how we can get best extract value from that resource and also stimulate the rest of the industry and by extension the economy. "A well legislated PIB will deal with the realities of the moment, the Niger Delta crisis, lack of infrastructure development and investment in the industry, among others. Rather than draw a comparison with previous versions of PIBs and similar documents in other countries, we need to ask ourselves whether the bill has tried to address some of these gaps. There is investment gap, in fact, investment in the industry needs to flow at this time to guarantee achievement of our aspiration of attaining 4 million barrels per day production. In that respect, the bill has tried to address it. Some operators have said the bill didn't address these issues enough while others are of the view that the bill has been too radical in trying to address the issues. I think the debate has just started; one cannot really draw a line because everybody has a different opinion on how far the bill has gone to address the fiscal aspect of the issues. The fact is that there is always a need for a balance. Money flows in the direction of energy, so at the end of the day the outcome of that Act will attract more investment. "If we don't want to kill the goose that lays the golden egg, all these clichés are very important. The PIB as it stands today tries to strike that balance. Achieving right and generally acceptable balance will depend on a lot of debate and discussions and the industry is girding up, to know if the bill has gone far enough or gone too far in terms of tightening up investment flows coming into the industry. "From the PETAN perspective, we want the PIB to open the industry to oil fields activities particularly oil steel activities from Nigerian companies. This has a potential impact on the rest of the economy. When people are working, there is less likelihood for agitation even in the Niger Delta or anywhere else. We think as a major stakeholder in this industry that the PIB needs to strike that right balance."

THE NATION MONDAY, AUGUST 13, 2012

BUSINESS INTERNATIONAL

Trade surplus shrinks in China C

HINA’S trade surplus unexpectedly narrowed last month as exports barely grew from the year-earlier month and imports increased at a smaller rate, according to data released Friday. The data — coming on the heels of anemic growth in China’s monthly industrial output and retail sales figures — heightened worries about the nation’s economic outlook and dragged down equities, commodities and “risk currencies” such as the Australian dollar. The trade surplus for the month dropped to $25.1 billion from $31.7 billion in June, falling far short of estimates for a surplus of $35.2 billion in a Dow Jones Newswires survey of economists. Exports rose just one per cent from the year-ago period, while imports expanded 4.7 per cent, compared to expectations for an eight per cent rise in exports and a seven per cent rise in imports. In June, China’s exports rose 11.3 per

cent, while imports increased 6.3 per cent. “Trade data has come in dramatically below expectations — the worst export growth number (excluding Chinese New Year) since November 2009 — highlighting the risk that the external environment poses to an economy,” wrote IHS Global Insight economists Alistair Thornton and Xianfang Ren. “This confirms that the strong export numbers in May and June were, as expected, complete anomalies,” they said. Investors sold down markets across multiple asset classes in the wake of the data, as the trade figures “added to the dour picture emerging from July activity and output,” RBC Capital Markets strategist Michael Turner wrote in a report. Chinese data released at the weekend showed price pressures were abating as a weakening economy affected growth in industrial production and consumption, strengthening

calls for Beijing to respond by further loosening its monetary policy. Aided by falling food prices, the consumer-price index rose 1.8 per cent in July from the year-ago period, the lowest print since January 2010, according to data from FactSet, and down from June’s 2.2 per cent increase. The monthly producer-price index dropped 2.9 per cent, accelerating from a 2.1 per cent deflation recorded in June, figures released Thursday morning by the National Bureau of Statistics showed. Economists surveyed by Reuters had expected the CPI to rise 1.7 per cent, and the PPI to drop 2.5 per cent. “The data reflect downward pressure on prices coming from weaker commodities .... The numbers confirm that the door for more monetary easing is open,” said Dariusz Kowalczyk, a senior economist at Crédit Agricole. Several economists agreed that more easing measures were imminent, but differed on how much, and on the choice of a policy tool.

Kowalczyk said he expects a cut in bank-reserve requirements soon, but that room for further easing was limited as July will likely mark the bottom for China’s CPI inflation in yearon-year terms. HSBC economists said they expect another 0.25 percentage point rate cut by the Chinese central bank, “along with other monetary and fiscal measures.” IHS Global Insight economists led by Xianfang Ren said that while the authorities needed to act, it didn’t necessarily have to be through another rate cut or a reduction in the RRR, and that local governments were likely to boost government investment. “In this respect, it matters less how far inflation falls, and more how much investment rises,” they said. Chinese stocks in Hong Kong and Shanghai were firmly higher after a choppy morning session, on expectations for an accommodative policy stance from Beijing. The Shanghai Composite, which dropped earlier in the day, ended the

day 0.6% higher to complete a fiveday winning streak, while the Hang Seng Index extended gains in the afternoon to close one per cent higher. Meanwhile, data released separately by the NBS Thursday afternoon showed monthly industrial output increased 9.2 per cent in July from the year-ago month. That was lower than a 9.5 per cent improvement in June and fell short of a 9.8 per cent expansion expected in a Reuters poll of economists. The data also showed retail sales for the month rose 13.1 per cent, weakening from a 13.7 per cent increase in June and missing estimates for a 13.7 per cent growth. The NBS figures also showed fixedasset investments in nonrural China climbed 20.4 per cent in the first seven months of 2012, compared with expectations for a 20.5 per cent increase in a Dow Jones Newswires survey of economists. •Source: Market Watch

College offers scholarship for mgt courses

From left: Managing Director, Danvic Concepts,Dr. Mayowa Afe, Manager, Deepwater Production, Esso, Mr. Goodluck Adagbasa, and Mr Ahmed Abdullahi of NAPIMS, during the Train-the-trainer Geoscience Workshop for University Lecturers held in Benin City.

OPEC retains world oil demand forecast

HE Organisation of Petroleum exporting Countries (OPEC) Reference Basket last month rebounded from a three-month long declining streak to settle near $100/ b, almost six per cent above the previous monthly level. All Basket component values improved by around $6. Year-to-date, the Basket averaged $110.28/b. Crude oil futures prices recovered from the low levels reached in June, though most of the fundamental reasons behind the fall remain in play as the greater uncertainty economic outlook persists and global crude inventories are somewhat high. ICE Brent front-month prices increased by over seven per cent to settle at $102.72/b, while the WTI front-month improved by $5.53 to average $87.93/b. So far this month, the OPEC Reference Basket has continued to rise, standing at $108.36/b on 8 August. World economic growth forecasts remain unchanged at 3.3 per cent for this year and 3.2 per cent for 2013. The US economy has seen some marginal improvements, leading an upward revision of 0.1 percentage points (pp) to the 2012 projection, which now stands at 2.2 per cent, while the forecast for 2013 remains at 2.0 per cent. Other forecasts remain broadly unchanged. Japan’s recovery continues to face external challenges and growth is forecast at 2.5 per cent this year and 1.2 per cent in 2013. Uncertainties prevail in the Euro-zone and the economy is expected to contract by 0.4 per cent this year before expanding by 0.1 per cent in 2013.

Amid efforts to stimulate the economy, China’s growth forecast for this year remains at an encouraging 8.1 per cent in 2012 and at 8.0 per cent in 2013. India is seen growing at 6.4 per cent and 6.6 per cent respectively in 2012 and 2013. World oil demand has overcome earlier expectations of a declining momentum and moved to a more stabilized trend, supported by the summer driving season, the summer heat, and the continued shutdown of most of Japan’s nuclear capacity. As a result, the forecast for global oil

demand growth in 2012 remains unchanged at 0.9 mb/d. There is considerable uncertainty surrounding the forecast for world oil demand growth in 2013, which remains unchanged at 0.8 mb/d. However, risks are currently seen to be skewed to the downside. Non-OPEC supply is expected to increase by 0.7 mb/d in 2012, following an upward adjustment to the absolute level, mainly due to historical revisions, as well as an improved outlook and higherthan-expected output from the US, Australia, the

Sudans, and Yemen. In 2013, nonOPEC oil supply is forecast to grow by 0.9 mb/d, unchanged from the previous report, supported by projected increases in the US, Canada, Brazil, Kazakhstan, and the Sudans. OPEC NGLs and nonconventional oils are projected to increase by 0.4 mb/d in 2012 and 0.2 mb/d in 2013, unchanged from the previous assessment. In July, total OPEC crude oil output averaged 31.19 mb/d, according to secondary sources, representing a drop of 0.16 mb/d from the previous month.

US jobless claims fall to 361,000 in week

HE number of United States workers filing applications for jobless benefits fell slightly last week, suggesting that the labour market is stabilising. Initial jobless claims, an indication of layoffs, decreased by 6,000 to a seasonally adjusted 361,000 in the week which ended August 4, the Labour Department has said. Economists surveyed by Dow Jones Newswires had forecast 370,000 new applications for jobless benefits last week. Claims for the week ending July 28 were revised up to 367,000 from an initially reported 365,000. The four-week moving average of claims, which smoothes out often volatile weekly data, rose by 2,250 to 368,250. A Labor Department official said there were no unusual factors in

Thursday's report. Jobless claims data has been volatile in recent weeks, and economists have been careful not to read too much into any single report. But the broad trend appears to have improved since June, when claims ranged around 385,000 a week. "The longer the series remains near its current level, the more credible the lower range will seem," economists at Wrightson ICAP said before Thursday's numbers were released. Typically, job creation increases when layoffs decline. So far, this year, hiring has been uneven. A separate Labour Department report last week showed that the economy added 163,000 jobs in July, the biggest monthly gain since February and a welcome relief after a weaker June. But the politically im-

portant unemployment ticked up to 8.3 per cent. Policy makers at the Federal Reserve are closely monitoring the employment situation as they weigh another round of stimulus. At a meeting last week, officials said they "will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions." The Fed's policy makers next meet formally on September 12 and 13. Thursday's Labour data showed the number of continuing unemployment benefit claims--those drawn by workers for more than a week--increased by 53,000 to 3,332,000 in the week ended July 28. Continuing claims are reported with a one-week lag.

NITED Kingdom based Peacock College, a subsidiary of Peacock Travels and Tours Group, in Nigeria, is offering 100 per cent scholarship to Nigerian companies willing to send their employees abroad for short business, management and air travel-related courses. In a statement, the Principal, Zenon Adamek, said the scholarship is meant to celebrate the year of the Queen’s Golden Jubilee, the Olympics Games 2012 and Nigeria’s 52nd Independence Anniversary, and would hold for a week at the college’s facility in the UK during the month of October. The statement quoted the principal as saying, “We have been part of the Queen’s Jubilee celebration as well as the Olympics. Nigeria’s Independence is in October as well. This is why Peacock College UK is offering Chairman Scholarship, a full scholarship programme, on selected courses in October for employees in Nigerian companies. We believe the offer will allow companies in Nigeria to sample the most popular business and management courses we have on offer” The principal explained that the courses lasting for five days would be conducted for several weeks in October. He, however, noted that the free tuition programme would be limited to one participant per ‘company. The statement listed the courses on offer for the scholarship to include business acumen and finance for nonfinance managers; corporate ethics and governance; corporate governance ‘strategies for public and private enterprises; effective human resources management techniques in a dynamic economy; and strategies to leverage public and private finance.

Greece sacks nickel firm chief

REECE has sacked the head of its state nickel producer LARCO for refusing to reduce workers' pay, the first state company chief to lose his job in the fight to cut costs and stay hooked up to an international bailout. The Finance Ministry said in a statement that the president and CEO of LARCO, Anastasios Barakos, was asked to resign for flouting the law. "He did not apply legislation requiring a reduction of salaries across the wider public sector," the ministry said. Barakos was not immediately available for comment. LARCO is one of the world's top producers of nickel. Ministry officials said all state corporations were told in 2011 to reduce pay by 35 per cent over two years, with 25 pe rcent in the first year, in line with reductions in the core civil service.

THE NATION MONDAY, AUGUST 13, 2012

MONEY LINK

Finance Houses fret over limited funding

INANCE Houses operating in the country have lamented the limited sources of funding for operators of the sub-sector. Speaking at the CEO Business meeting and luncheon held in Lagos, Yemisi Tayo-Aboaba, an official of Finance Houses Association of Nigeria (FHAN) and former Managing Director,

Stories by Collins Nweze

First Funds Limited, said securing long-term and cost-effective financing remains a big challenge in the country. She explained that equity; private individuals, institutional investors, debt and/or equity from Developmental Finance Institutions, borrowings from individuals as well as institu-

tions and funding from government are key sources of funding for the sector. Tayo-Aboaba however, said that unlike banks, finance companies are not allowed to accept deposits. This limitation means finance companies can only source funds from shareholders, private equity companies, development finance institutions

and other institutional investors. According to her, most operators are sourcing for short –term funds to finance longer term assets thereby creating significant asset-liability mismatch. Such actions also open the business to reinvestment risks. Tayo-Aboaba said that high cost of funds leads to riskier in-

Sterling Bank to empower entrepreneurs

TERLING Bank has reiterated its commitment to empower entrepreneurs and developing human capital in the country. A statement from the bank expressed its focus on these areas, which it considers critical in wealth creation. Speaking at the end of the Fate Foundation Series sponsored by the bank, Group Head, Corporate Development, Shina Atilola, assured

that the lender will continue to empower entrepreneurs to achieve their desired goals. “It is the bank’s desire to see every Nigerian youth gainfully employed and being able to make a living without looking for jobs but starting their own businesses. Our partnership with Fate Foundation on these lecture series is to ensure that future entrepreneurs are well empowered and positioned to

try”, he added. Atilola maintained that the bank’s patrotism has positioned it as a leader committed to the development of nation. Sterling Bank, originally incorporated in 1960 as Nigeria Acceptances Limited, has continued to act in line with its mission to “deliver solutions that enhance stakeholders’ value.”

attract the right credit,” he said. Atilola said that the partnership will promote entrepreneurship and increase the level of Small and Medium Scale Enterprises (SMEs) awareness and participation across board. “It reiterates the bank’s commitment to continuous Corporate Social Responsibility Initiative to further promote education in the Coun-

vestments and makes finance companies less attractive to other institutional financiers. According to her, the subs-sector offers a variety of services including; funds management, equipment leasing, project financing, local purchase order financing, debts factoring, financial consultancy among others. She said that finance companies provide financial services for consumers industrial, commercial, or agricultural enterprises. She explained that finance companies as a group may be able to collaborate with government in providing funding and capacity building that is critical for growing the Small Scale Medium Enterprises (SMEs) segment. The Central Bank of Nigeria (CBN) is also considering developing a regulatory framework that will govern finance lease practice, institutionalising a “funding pool” to stimulate lending activities in the sub-sector and struc-

UBA to partner Benin Republic on infrastructure, devt

NITED Bank for Africa (UBA) Plc is to partner with the Government of Benin Republic on infrastructure and economic development. Group Managing Director/CEO, UBA Plc, Mr. Phillips Oduoza disclosed this when he met with the President of Benin Republic, Dr. Boni Yayi in Cotonou. In a statement, President Boni Yayi described the meeting with UBA as a seal on the harmonious relation-

ship between UBA and the government and people of Benin Republic. He called on the bank to explore more ways of assisting the government to grow the economy. “We are currently growing at three per cent but my plan is to achieve up to seven per cent growth rate” he stated. Speaking at the meeting, Oduoza expressed the bank’s willingness to partner and invest in the infrastructure and economic development of the West African country,

to the people” he stated. He said UBA has a solid track-record of supporting African economies and communities as exemplified by the $65million Pension Fund Financing in Zambia; the Euro180mm SAR Crude Oil Financing deal in Senegal; the $400m Bond Issuance for the government of Cameroon as well as the Tresor Public Financing in Benin, Tchad, CDI, Gabon. Specifically he stated that

noting that UBA has proven ability to finance big ticket transactions across the continent. ”We are committed to the long-term and sustainable growth economy of Benin Republic through direct investment and financing by UBA and subsidiaries. We will support the Cotton Campaign in Benin. But beyond the Cotton Campaign, we would assist in the other projects that will be beneficial and impactful

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

Amount Amount Offered ($) Demanded ($) 350m 150m 350m 138m 350m 113m

Price Loss 2754.67 447.80

INTERBANK RATES 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 28-04-2012 “ 14-04-2012

GAINERS AS AT 13-8-12 SYMBOL

O/PRICE

UBN ETERNA AGLEVENT FLOURMILL NEIMETH UTC PREMBREW GTASSURE MOBIL LEVESTOCK

4.65 2.56 1.09 50.00 0.76 0.77 0.90 1.60 113.00 1.34

C/PRICE

4.88 2.68 1.14 52.00 0.79 0.80 0.93 1.65 116.49 1.37

NGN USD NGN GBP NGN EUR NIGERIA INTER BANK (S/N) (S/N) Bureau de Change (S/N) Parallel Market

Current Before

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

C/PRICE 15.61 7.29 2.12 4.50 2.95 4.30 0.50 0.53 2.86 2.71

CHANGE 0.82 0.38 0.11 0.23 0.15 0.20 0.02 0.02 0.10 0.09

DISCOUNT WINDOW Feb. ’11

July ’11

Dec ’11

MPR

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 2-7-12 27-6-12 22-6-12

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

LOSERS AS AT 13-8-12

SYMBOL O/PRICE ARBICO 16.43 BERGER 7.67 PAINTCOM 2.23 DANGSUGAR 4.73 VITAFOAM 3.10 UBA 4.50 GOLDINSURE 0.52 ROYALEX 0.55 SKYEBANK 2.96 DIAMONDBNK 2.80

Exchange Rate (N) 155.2 155.8 155.7

CAPITAL MARKET INDEX Year Start Offer

CHANGE

0.23 0.12 0.05 2.00 0.03 0.03 0.03 0.05 3.49 0.03

Amount Sold ($) 150m 138m 113m

EXHANGE RATE 6-03-12 Currency

OBB Rate Call Rate

HE Managing Director, Export-Import Bank (NEXIM Bank), Roberts Orya has held talks with a delegation from the Embassy of Romania led by its Head of Mission, Ambassador Nicolae Moldoveanu when they visited the bank in Abuja. A statement from the bank said, Orya, took the visitors through the business of the bank, explaining its mandate, as the Trade Policy Bank of Nigeria, to promote export-related investments in the Manufacturing, Agriculture, Solid Minerals and Services sectors of the economy. He also shared experiences on the bank’s activities to deepen trade with the West and Central sub-regions through the facilitation of Sealink Project, which is expected to provide seagoing vessels for ease of movement of goods and persons and the ECOWAS Trade Support Facility, which is targeted at financial documentation of commercial exchanges within the region.

WHOLESALE DUTCH AUCTION SYSTEM

MANAGED FUNDS

NIDF NESF

NEXIM holds talks on Romania

DATA BANK

Tenor

Initial Current Quotation Price Market N8250.00 5495.33 N1000.00 N552.20

the Group through its Benin operations has financed a number of projects including the $50million SBEE (National Electricity distribution company) transaction, the $10.4 million Coastal erosion project financing of the Ministry of Town Planning, Land Reforms and Environment just as it has made Money Market Investments totaling XOF 38.75 billion and bonds investment in Benin totaling XOF 12.4billion.

•CBN Governor, Sanusi Lamido

Offer Price

Bid Price

ARM AGGRESSIVE 9.17 KAKAWA GUARANTEED 1.00 STANBIC IBTC GUARANTE 123.44 AFRINVEST W.A. EQUITY FUND 108.49 LOTUS CAPITAL HALAL 0.74 BGL SAPPHIRE FUND 1.09 BGL NUBIAN FUND 0.94 NIGERIA INTERNATIONAL DEB. 1,770.97 PARAMOUNT EQUITY FUND 8.95 CONTINENTAL UNIT TRUST 1.39 CENTRE-POINT UNIT TRUST 1.87 STANBIC IBTC NIG EQUITY 7,978.48 THE DISCOVERY FUND 193.00 FIDELITY NIGFUND 1.67 • ARM AGGRESSIVE • KAKAWA GUARANTEED • STANBIC IBTC GUARANTE • AFRINVEST W.A. EQUITY FUND

9.08 1.00 123.30 108.31 0.72 1.09 0.92 1,769.06 8.51 1.33 1.80 7,766.71 191.08 1.62

Movement

OPEN BUY BACK

Bank P/Court

Previous 04 July, 2011

Current 07, Aug, 2011

8.5000 8.0833

Movement

THE NATION MONDAY, AUGUST 13, 2012

MONEY MARKET REPORT

CBN boosts naira with N172b TBs T

Data Security Standards (PCIDSS) has assisted operators to mitigate risks associated with the use of bank cards and payment channels. Deputy Governor, Operations, CBN, Tunde Lemo, disclosed this at a workshop on PCIDSS and Cash-less Nigeria in Lagos. He said one major concern noted by the CBN during a forum on cash-less Lagos was the fraud risk or the security of e-payments channels. “I am delighted to note that compliance with PCIDSS helps to mitigate risks associated with prevalent use of bank cards and payment channels,” he said, adding that banks have continued to roll out more innovative electronic payment platforms to meet customers’ expectations.

HE Central Bank of Nigeria (CBN) last week moved to improve the status of the naira by auctioning N172.1 billion in Treasury Bills (TBs), N30 billion in excess of N142.1billion initially targeted. The apex bank also increased the yield it offered on the short-dated paper to mop up liquidity and support the currency. Details of the transactions showed that the apex bank sold N50 billion of 182-day TBs at a yield of 15.30 per cent, higher than 14.94 per cent which was at its previous auction last month. It sold N90 billion of 364-day bills at a yield of 15.38 per cent, compared with 15.60 per cent a month ago, and N32.06 billion of 91-day bills at a yield of 14.5 per cent, higher than 13.94 per cent at the auction a month ago. Analysts at Afrinvest said demand for the country’s local debt since the beginning of the year has been high due to attractive yields. Nigeria issues TBs twice monthly to reduce the money supply; curb inflation and help lenders manage their liquidity. Data from the CBN website showed that the naira surged 1.1 per cent to a more than two-week high on the interbank market on Thursday following the sale and after the Nigeria National Petroleum Corporation (NNPC) sold $450 million to banks in exchange for the local currency. Managing Director, Financial Derivatives Company (FDC) Limited, Bismark Rewane, said in FDC August Economic Report that rising oil output will also help the naira to stabilise. “We believe the outlook for Nigeria’s crude oil production is positive. The likely passage of the Petroleum Industry Bill (PIB) will result in an increase in oil production, above the current trend of 2.1 million barrel per day (mbpd) on average, in the short run. We forecast an average production of 2.45mbpd for the rest of the year as well as a sharp appreciation in the naira to N152 to N153 to a dollar,” he said.

Budget The Federal Government last week agreed to increase spending by five per cent, but reduced the fiscal deficit in next year’s budget. The 2013 budget will be sent to parliament for approval next month, the Finance Minister, Dr. Ngozi Okonjo-Iweala said. The Federal Government agreed to a total 2013 budget spending of N4.929 trillion, up from N4.697 trillion this year. By this, the fiscal deficit and domestic borrowing would come down to 2.17 per cent and N727.19 billion next year, from 2.85 per cent and N744.44 billion this year, she said.

Whistle-blowing guidelines The CBN has developed guidelines for whistle-blowing in the Nigerian banking sector. The exposure draft being reviewed by banks and discount houses is expected to strengthen governance practices, eliminate perceived ambiguities in and align existing code of corporate governance in the sector with realities and global practices. In a circular to banks and discount houses, the banking watchdog said the guidelines represent the minimum standards whistleblowing, which financial institutions under its supervisory purview shall be required to comply with. Banks are, therefore, expected to have a whistle-blowing policy made known to employees and other stakeholders. Such policy is expected to contain mechanisms, including assurance of confidentiality, that encourage all stakeholders to report any unethical activity to the bank or the apex bank.

Discount window The apex bank has stopped authorised dealers from accessing funds from the Discount Window and the Wholesale Dutch Auction System (WDAS). In a statement signed by CBN Director, Financial Markets Department, E.U Ukeje, tagged: “Review of the revised guideline for accessing CBN Lending Window and Rapo Transactions,” the apex bank prohibited Authorised Dealers from accessing the Wholesale Dutch Auction System (WDAS) and the Standing Lending Facility (SLF) on the same day.

Bank-to-bank report

•Naira notes By Collins Nweze

Reserves Foreign exchange reserve fell by 1.4 per cent month-on-month to $36.40 billion at July 25, from $36.93 billion a month before, hit by falling oil prices and strong dollar demand, CBN figures showed. Foreign reserves stood at $36.71 billion at the end of June, higher from $33.45 billion a year before. The reserves, which stands at $36.39 billion on August 7, 2012 is expected to hit $60 billion as Nigeria’s oil production soars. Nigeria’s crude oil production spiked to an all-time high of 2.7 million barrel per day (mbpd) on July 25, the first time in 50 years. This peak represents an increase of 28.57 per cent from the year-to-date average of 2.11 mbpd.

Citiserve Citiserve, a national service provider for e-products and subsidiary of Vigeo Holdings Limited, launched the New OrangeBox Point of Sale (PoS) and communication channels machine to address the connectivity challenges being raised by merchants. Speaking at the launch in Lagos, Citiserve Managing Director/Chief Executive Officer, Lola Ogunbambi, explained that the new channel accepts all local bank cards, such as MasterCard, Visa, Genesis and Freedom. It is integrated into Nigerian Interbank Settlement System (NIBSS) network, and is national central switch compliant. According to her, connectivity hitches being experienced by merchants have led to poor and delayed signals in key locations in the coun-

try. These she said have to be addressed. “Connectivity hitches have been the most frequent reason for low adoption rate of the e-payment policy, especially the cash-less Lagos project. We have had over 10 years experience in testing communication signal strength to determine, which solution works best for given area,” she said.

KYC The CBN issued additional Know Your Customer (KYC) requirements for designated non-financial businesses and professions (DNFBPs). This is expected to enable the regulator check money laundering and other malpractices in the sector. A circular signed by CBN Director, Financial Policy and Regulation,Chris Chukwu, said financial institutions are required, prior to establishing business relationships with DNFBPs, to obtain evidence of registration. Such evidence include certificate of registration showing registration number with Special Control Unit on Money Laundering (SCUML) of Federal Ministry of Trade & Investments. He listed DNFBPs to include dealers in jewelry, precious metals and stones, cars and luxury goods, audit firms, tax consultants and clearing and settlement companies. Also included are lawyers, notaries, other independent legal practitioners, and chartered accountants, trust company service providers.

Payment risks Compliance with Payment Card Industry

‘Details of the transactions showed that the apex bank sold N50 billion of 182-day TBs at a yield of 15.30 per cent, higher than 14.94 per cent which was at its previous auction last month. It sold N90 billion of 364-day bills at a yield of 15.38 per cent, compared with 15.60 per cent a month ago, and N32.06 billion of 91-day bills at a yield of 14.5 per cent, higher than 13.94 per cent at the auction a month ago’

The private sector arm of the World Bank said on Wednesday it would buy $70 million worth of convertible loans from Diamond Bank to boost the capital base of the mid-tier lender. The World Bank unit, the International Finance Corporation (IFC), said the funding would help finance lending to small and medium-sized businesses in the country. Unity Bank said it is ready to reward more participants in its savings promo- Aim, Save and Win, as it holds a second round of the Zonal Draws in five different locations across the country. Winners at the zonal draws will take home motorcycles, plasma television sets, generators, bicycles, refrigerators and telephone handsets. According to the External Communications Manager, Sani Zaria, the zonal draws will take place in Lokoja, Kogi, Uyo, Akwa Ibom State, Ibadan, Oyo State, Gombe, Gombe State and Kano in Kano State. FirstBank has won regulatory approval to transfer its subsidiaries into a newlyformed holding company, in line with regulatory requirements to separate core lending from other businesses. Onche Ugbabe, the Chief Strategy Officer, said the bank had received a nod from the Securities and Exchange Commission (SEC) to proceed with the new structure and was waiting for approval from the apex bank and shareholders. “We expect to conclude the implementation by the third quarter,” Ugbabe told a conference call with analysts. Ecobank Transnational Incorporated (ETI) has said it will double Nigeria’s contribution to its group profit next year from around 20 per cent after integrating former rival Oceanic Bank, which it bought last year. ETI Chief Executive Arnold Ekpe told Reuters that Oceanic Bank had turned profitable after Ecobank acquired the loss-making group in 2011 and spent around $80 million integrating it. Ecobank had reported a six per cent fall in first-half pre-tax profit to $126.3 million. Ekpe said the decline was mainly due to one-off integration costs and he expected a pick-up in the second half. Nigeria contributed $25.4 million to the pre-tax profit in the first half. Ekpe said ETI has the largest branch network in Africa with 1,200 branches, following the acquisition of Oceanic and Trust Bank in Ghana last year. “Oceanic on a stand-alone basis is now profitable. We have put in some capital there, so it’s a much better capitalised business,” he said. Keystone Bank has supported the appointment of Renaissance Capital (RenCap) Consortium as advisers by the Asset Management Corporation of Nigeria (AMCON). The bank said in a statement that after 12 months into its operation, it is set to embark on another crucial stage in its transformation. It said AMCON Chief Executive Officer, Mustafa Chike-Obi, had in a telephone conversation with the Managing Director/ Chief Executive Officer, Keystone Bank, Oti Ikomi, confirmed Rencap Consortium’s choice as adviser and offered his best wishes to staff, customers and stakeholders while expressing his pleasure on the transformation success achieved by the bank in the last one year.

THE NATION MONDAY, AUGUST 13, 2012

THE CEO

‘Why CBN should remain independent’ The Central Bank of Nigeria (CBN) has been in the news of recent following the National Assembly’s move to amend its Act. If the amendment sails through, the bank will come under legislative control. Will this be good for the bank? No, says it’s Deputy Governor, Financial System Stability (FSS), Dr Kingsley Moghalu in this interview with COLLINS NWEZE during the Nigeria Development Finance Forum held in London. • Moghalu

HAT is the CBN doing to avert future collapse of banks? We are considering the adoption of a macro-prudential regulatory framework for banks. This requires the measuring of the health of the banking system, and how it contributes to the growth of the economy, rather than concentrating on the health of individual banks. Macro-prudential regulatory framework is becoming popular among developed nations and covers the entire financial system and the economy. Currently, the CBN is applying the risk-based supervision approach for the banks, where it assesses the direction of the risks, to determining whether such risks are increasing or decreasing. Part of the plan being considered is that banks should have counter-cyclical capital buffer, which requires that they increase their capital and volume provisions they are making for bad loans when the going is good. Such practices are already being implemented in the United States of America, Britain and Malaysia. Why do you think Nigeria needs this model? A country, such as Nigeria that is a monoproduct economy should adopt this model because it is imperative for the country. The role of the macroeconomic supervisors is critical. It is important to measure individual banks and what they are doing. But it is more important to measure the health of the entire banking system and how they contribute to the growth of the economy. What is your view of the banking sector? The banking industry is constantly evolv-

ing all over the world, and we should understand that banks operate in the context of wider microeconomic environment. It is important to note that the role of fiscal managers is as critical as that of the supervisory institution in ensuring stability in the banking system. The challenge is to look beyond the strength of an individual bank and emphasise the link between the banks and the micro-economy as well as the real economy. It is only when the real sector is not developed, that banks will not have basis to sustain their growth. Otherwise, they will be tempted to go into speculation, and this is what we need to guard against. We should make sure that the real economy is revived. Manufacturing, agriculture and infrastructure have to come back on track to liberate the potentials of the economy. We need mutually beneficial relationship between the banking sector and the economy. If we had applied the high level macro-prudential tools during the global financial crisis of 2009, we would have been able to know that the high price of oil, which kept the banks awash with capital and the combination of excessive margin lending especially at the capital market, posed systemic risks to the health of the banks. The new approach will make it difficult for the banks to fail. We will not be caught off-guard the next time. How healthy are the banks now? We are at a point, though the reform has not been completed, when we can say we have set a standard for the stability of the industry. Reform is a process, not a destina-

tion. The previous management of the CBN instituted progressive series of reforms in the management of the banking sector. Hence, it will be immodest for us to say the current management is the only one that has embarked on reforms in the bank’s history. However, what we are doing is fundamental to the evolution of the banking system. The banks are actually very healthy. Recently, the International Monetary Fund (IMF) conducted a stress test for the banking system; the results showed that the banks are in sound health. Today, Nigerian banks are about the most capitalised in Africa. The average capital adequacy ratio is about 18 per cent, which is quite high; the average liquidity ratio is about 64 per cent. What other reasons make you think that the banks are now healthy? For instance, the average non-performing loan ratio is about 4.5 per cent, a sharp contrast with the 30 per cent it stood before the reform. The total assets of the sector stand at about N18.5 trillion while total deposits are N12.5 trillion. Total credit is N7.3 trillion while only N335 billion is non-performing — that is about 4.4 per cent. This is, however, not the end of the history. The banking industry is constantly evolving all over the world, and we should understand that banks operate in the context of wider microeconomic environment. It is important to note that the role of fiscal managers is as critical as that of the supervisory institution in ensuring stability of the banking system. The challenge now is to look beyond the

strength of an individual bank and emphasise the link between the banks and the micro-economy as well as the real economy. This is because, if the real sector is not developed, banks will not have basis to sustain their growth. They will be tempted to go into speculation, and this is what we need to guard against. We should make sure that the real economy is revived. Manufacturing, agriculture and infrastructure have to come back on track to liberate the potentials of the economy. We need mutually beneficial relationship between the banking sector and the economy. Can you compare the health status of the nationalised banks with what they were before the CBN intervention? A major aspect of the reform is the recapitalisation of the banks that were adjudged to be fragile. The three banks: former BankPHB (Keystone Bank), former Afribank (Mainstreet Bank) and former Spring Bank (Enterprise Bank) that were bridged were in the category. I don’t use the word nationalisation because CBN does not believe that those banks were nationalised. Nationalisation involves direct injection of funds from the treasury and direct control by the fiscal authority. Neither of these happened in the case of the three banks. What happened is that the previous banks — Afribank, Spring Bank and Bank PHB — could not recapitalise. So, there was a regulatory intervention in accordance with the law. They were failing and the Nigerian • Continued on page 33

THE NATION MONDAY, AUGUST 13, 2012

THE CEO •Continued from page 32

Deposit Insurance Corporation (NDIC) had to come in to take over their assets and establish bridged banks. Because the Asset Management Corporation of Nigeria (AMCON) was available, the assets were transferred to it. AMCON has recapitalised the banks, which are now healthy. What remains is for them to rebuild their business operations, develop their new brands and create value for their shareholders. They have to come to a state of profitability like other banks. I think the banks are in healthy condition. What could have caused the National Assembly’s move to review the CBN Act? I don’t know whether I should call it a reform process. It is a proposed bill to amend the CBN Act. I cannot speculate on why some members of the National Assembly want the Act changed. What I do know is that if they succeed, the consequences will be disastrous for the country in several ways. First, when the CBN is seen to be under political control, it will lose credibility and ability to fight inflation. If the bank is not independent, nobody will believe it because it is being directed by politicians. All over world, politicians look at shortterm interests, especially in the management of macroeconomic policies; they want immediate results that can be used for political purpose. Central Banks are not managed by politicians; hence, they are better placed to manage a longer-term view of what is in the best interest of the national economy. And some of those decisions that are in the best interest of the national economy are not always pleasant ones. Why are you asking for CBN autonomy? The institution has to be independent and autonomous enough to take decisions necessary to manage inflation; promote safety and the soundness of the financial system; manage the legal tender; manage external reserve or advise the government. The ability to execute each of these functions effectively depends on the level of independence of the bank. We should understand that if the independence is reduced, it could lead to financial system instability. We saw this recently. At a time the global financial crisis and weak corporate governance led to near failure of banks, the CBN intervened quickly and decisively to arrest the situation. It is on record that no depositor lost a kobo; it is on record that no bank failed. The ability to achieve this kind of record could only reside in independence and ability to exercise professional judgement backed by the CBN Act and Banking and Other Financial Institutions Act (BOFIA). If these powers were removed or reduced in a way that whittle them down or subject them to direct control of the National Assembly, through either budgetary process or other measures, the result will affect CBN’s functions. This is because legislative processes are slow, whereas the duties and circumstances under which the CBN operates call for speed and decisiveness, not longterm approach. If it had not exercised its function as a lender of last resort in recent crisis, a lot of banks in Nigeria would have collapsed. It is not a matter of academic discussion; there are practical consequences. What are other implications of a controlled CBN? Another major consequence is that Nigeria will get a lower sovereign credit rating. Before a credit rating is given to a country, agencies look at the robustness and independence of institutions that are related to macro economic management of that country, especially Central Bank. If the Central Bank is not independent, the agencies will lower the sovereign credit rating of Nigeria. That means the ability of the country to access long-term credit from the capital market will be severely affected. It will also affect the flow of direct foreign investments (FDIs) into the country. Nigeria’s rating was recently increased — an action that was taken in recognition of the ongoing economic reforms. A major influencer of the decision was the banking reform and independence of the CBN. These are some of the things you are putting on the line when you are changing the CBN Act. What are the implications of submitting the CBN budget to legislative approval? The implication of subjecting its budget to legislative approval is emasculating the financial autonomy of the bank. Financial autonomy is necessary to achieve all other functions. The ability of the bank to create its budget and be responsible for it is necessary to achieve other functions. If you remove the authority, you are removing its ability to achieve its core mandates efficiently. It is

‘Why CBN should remain independent’

• Moghalu

‘You cannot fundamentally weaken an institution because you have a problem with an individual. That is not enough to destroy an institution. You can deal with any issue that arises in the management of CBN in a different way. The CBN is accountable to the National Assembly in many ways’

• Moghalu

important to also consider the global practice of Central Banks. Current global practice favours more liberal independence for Central Banks. A survey of 70 countries some years ago showed that Central Banks that were independent recorded better performance in inflation management than others. And this is where we want our country to

go. Reducing the autonomy of the Central Bank will send a message of retrogression. Could the National Assembly’s resolve be linked to its perception of the operational style of the Governor of the CBN, Sanusi Lamido Sanusi? We need to understand the difference between individuals and institutions. It will

be wrong to confuse an institution with an individual, no matter how highly placed that individual may be in the institution. An individual comes and goes but an institution remains. You cannot fundamentally weaken an institution because you have a problem with an individual. That is not enough to destroy an institution. You can deal with any issue that arises in the management of the Central Bank in a different way. The CBN is accountable to the National Assembly in many ways. It must submit audited account to the Assembly every year; we brief it, at least, twice a year. Even the outlines of the budget are provided to the National Assembly through the Ministry of Finance, as required by the Fiscal Responsibility Act. All its responsibilities are matched with accountabilities. Nobody is advocating a CBN that is not accountable to any institutional framework. Such framework already exists. The mistake many people make is to look at the CBN and say why is it that this institution is not subject to direct control of the legislature? It is because of the unique nature of a Central Bank? If you look at the Federal Reserve, Bank of Ghana, Bank of Malaysia, Reserve Bank of South Africa and Bank of Botswana, you will see that they are independent of direct political interference. Immediately you subject the budget of the Central Bank to direct approval of the National Assembly, you have opened a link for direct interference in the administration of the bank. Renaissance Capital has hinted that there would be further consolidation in the banking industry in the next 24 months. To what extent is this true? Anaysts are entitled to their opinions and projections while our policy decisions are informed by available information. But, do you see the possibility of further mergers and acquisitions in the nearest future? It is possible for more banks to come together but that is voluntary process. We have not legislated on specific number of banks for Nigeria. If two banks decide in their mutual interest, to come together, we will examine the application and approve if circumstances permit. It is possible but I am not aware that there is any deliberate policy on further consolidation in the industry. There will be new banks; we have received applications for new licences. This is because we have created new models as part of the reform. There are several aspects of the economy that remain under-banked and if people want to create specialised banks to address these, we will support them. We have received new applications, which we are processing. Are they for commercial banks? They are across the range — commercial, merchant and others. Foreign banks showed interest in the market at the outset of the reform but we haven’t seen any yet. What stopped them? You need to understand that Nigeria is different from other African markets. It is a market where indigenes have the resources and the human capacity to create value. What they need is the right environment to do so. While we welcome foreign investors, it will not, in anyway, determine the strength of the industry. There was a level-playing field for both local and foreign investors to participate in the mergers and acquisitions of the banks that were distressed. I am not against foreign investors neither do I have anything against local investors. There is a clamour for rebasing the Gross Domestic Product (GDP) with many arguing that the economy would surpass that of South Africa if the exercise is properly carried out. How can we do this to capture the disorganised informal sector? Rebasing the GDP is something countries do after a number of years in order to improve the accuracy of macroeconomic statistics, to take into account developments such as evolution of prices, and changes in output and consumption. In Nigeria, my understanding is that we will alter the base year for the calculation of our GDP from 1990 to 2009. This will, of course, see the GDP of around $270 billion rise sharply, perhaps by as much as 40 per cent. The growth of the telecommunications industry since 1990 is not yet accurately captured in the GDP figure. Rebasing the GDP will have some positive symbolic implications such as bringing our GDP much closer to that of South Africa and possibly making Nigeria more attractive as a potential foreign investment destination. But in my personal view, it still does not address the fundamental structural changes needed in the economy.

THE NATION MONDAY, AUGUST 13, 2012

EQUITIES NIGERIAN STOCK EXCHANGE

Wema Bank sells five subsidiaries â&#x20AC;˘Access Bank merges subsidiaries

DAILY SUMMARY AS AT 13-8-12

EMA Bank Plc has sold five non-core banking subsidiaries in compliance with the new banking regulatory framework introduced by the Central Bank of Nigeria (CBN), which requires banks to divest from non-banking subsidiaries or form a holding company to hold their non-banking businesses. Wema Bank had opted to divest from its insurance and capital market subsidiaries as well as scale down its geographical definition with the adoption of regional banking status. Official filing obtained at the weekend showed that Wema Bank has divested from Great Nigerian Insurance, Wema Insurance Brokers Limited, Wema Registrars Limited, Independent Securities Limited and Whyte Cleon Limited. The bank has also integrated operations of four other subsidiaries into its core banking business. These included Wema Asset Management Limited, Wema Securities and Finance Plc, Wema Homes (Savings and Loans) Limited and Wise Properties Limited. Wema Bank had 100 per cent equity stakes in the trio of Wema Registrars, Wema Insurance Brokers and

By Taofik Salako and Tonia Osundolire

Whyte Cleon Limited.It also had 94.7 per cent stake in Independent Securities and 75 per cent in Great Nigeria Insurance, a publicly quoted entity. According to the filing, the Central Bank of Nigeria (CBN) has given approvalin-principle to the divestments. Under the new banking model, a regional bank can operate in a minimum of six and a maximum of 12 contiguous states and the Federal Capital Territory (FCT) but those states must be within not more than two geopolitical zones. However, a regional bank can offer the same bouquet of banking services like a national or international bank in as much as its physical operations remain within its defined region. In related development, Access Bank Plc appeared to be optimising values from its recent acquisition of Intercontinental Bank Plc. The bank has decided to consolidate the operations of WAPIC Insurance Plc and Intercontinental Properties Limited, two subsidiaries of the defunct Intercontinental Bank, into a single legal entity.

According to the proposal, the combination of the two companies would be done through a scheme of merger pursuant to Part XII of the Investment and Securities Act 2007. Directors of the companies have already appointed Marina Securities Limited as stockbroker to the scheme of merger. Meanwhile, transactions at the Nigerian Stock Exchange (NSE) slowed down last week with a turnover of 1.318billion shares worth N9.136 billion in 19,200 deals as against a total of 1.471 billion shares valued at N12.350 billion traded in 19,228 deals in previous week. The financial services sector remained the most active during sector with a turnover of 1.113 billion shares worth of N7.055 billion in 11,381 deals. Volume in the sector was largely driven by trading in the shares of Zenith Bank Plc and First Bank of Nigeria Plc. Trading in the shares of the two banks accounted for 270.345 million shares, representing 35.26 per cent, 24.29 per cent and 20.51 per cent of the turnover recorded by the subsector, sector and total turnover for the week, respectively. The overall market position closed on the negative. The NSE All-Share Index (ASI) dropped to 23,239.03 points as against its opening index of 23,523.16 points. Similarly, market capitalisation of equities dropped from N7.49 trillion to close at N7.40trillion.

NIGERIAN STOCK EXCHANGE DAILY SUMMARY AS AT 13-8-12

THE NATION MONDAY, AUGUST 13 , 2012

EQUITIES WATCH

Email: taofad2000@yahoo.co.uk

With two new major acquisitions that brought the number of active publicly quoted subsidiaries in the UAC of Nigeria (UACN) Group to four; the conglomerate is trailing market average and is still considerably below its recent momentous performance. With emerging figures indicating appreciable improvements in constituents and expansionary drives of the company, there appears to be a missing link between UACN's fundamentals, reports and secondary market consideration. TAOFIK SALAKO reports

T 7.5 per cent, UACN's year-to-date return is below the average return at the Nigerian stock market. The benchmark index at the Nigerian Stock Exchange (NSE), the All Share Index (ASI) - a common valuebased index that tracks changes in prices of all quoted equities, opens today at 12.10 per cent. While the modest positive average return represents considerable improvement against the mind-boggling negative returns in previous years and underlines a recovery, the benchmark index also mixes significant gains by several stocks with medium to modest gains by other stocks to moderate stagnation and declines in share prices of several stocks. In spite of its generally stable fundamentals, UACN's market consideration has been rather tepid, fluctuating mostly towards the downside. From a recent high of N58.48 per share in 2010, UACN's peak narrowed down to N42.50 in 2011. It has hovered around a high of N36 so far this year. The 2012 high is 15.3 per cent below the 2011 high while the latter was also 27.3 per cent below the 2010 high. While cash dividends have increased over the past two years, the technical consideration is cumulatively negative. Viewed against the negative full-year return of 16.9 per cent in 2011, the current year-to-date return of 7.5 per cent implies a 20-month return of -9.4 per cent. UACN's share price had traded between a range of N58.48 and N36.16 to close 2010 at N37.51. In 2011, the conglomerate's pricing trend ranged between N42.50 and N28.70 before it eventually closed at N31.18. So far this year, UACN's market consideration has fluctuated around 29 per cent band with a high of N36 and low of N28. UACN opens today at N33.52 per share. But these periods, particularly this year, have seen an increasingly resilient performance by the conglomerate and its major constituents. Besides, the strategic rethink and corporate repositioning of the conglomerate appears now more certain than ever before.

Reappraising the fundamentals At current market consideration, UACN is priced almost flat at its net book value, a somewhat unnerving position for a long-standing and stable profitable company. With appreciable improvements in key fundamentals in 2011, net assets per share had grown by 13.5 per cent from N28.48 in 2010 to N32.32 in 2011. Audited report and accounts of UACN for the year ended December 31, 2011 showed that group turnover rose by 22 per cent driven largely by the conglomerate's paints, real estate and food and beverages businesses. The top-line performance represented significant recovery for the conglomerate, which sales had contracted by 7.6 per cent in previous year. While the net proceeds of N5.7 billion from the sale of the 49 per cent equity stake in its food business to Tiger Brands of South Africa accounted for almost 44 per cent of pre-tax profit, which rose by 83 per cent from N7.09 billion in 2010 to N12.98 billion in 2011, the overall performance was largely indicative of a recovery rather than relapse. Net operating profit had increased by 22 per cent from N7.04 billion to N8.57 billion. The group's net operating margin remained steady at 13.5 per cent in 2011 as against 13.45 per cent in 2010. Group turnover rose from N52.31 billion in 2010 to N63.59 billion in 2011. Segmental top-line analysis showed that the main foods and beverages business segment increased turnover by 23 per cent from N35 billion to N43 billion. Paints business recorded a turnover of N4.3 billion in 2011 as against N3.6 billion in 2010 while turnover from the real estate business improved from N8.2 billion to N10.8 billion. Gross profit stood at N17.98 billion as against N16.45 billion. With total net earnings per share increasing from N3.41 in 2010 to N6.37 in 2011, the conglomerate increased gross dividend from N1.76 billion to N2.40 billion. Dividend per share thus stood at N1.50 in 2011 as against N1.10 in 2010. Dividend outlook further improved with dividend cover of 4.25 times in 2011 as against 3.10 times in 2010. UACN, Nigeria's largest and second oldest surviving conglomerate, comprises of several active companies spread through manufacturing, services, logistics and real estate sectors of the Nigerian economy. UACN Group includes two quoted subsidiaries-CAP Plc and UACN Property Development Company (UPDC) Plc, each leader in its business segment. Other members of the group includes UAC Foods Limited, GM Nigeria Limited- a joint venture with General Motors Corporation of United

Is UACN base-forming? States of America, MDS Logistics Limited, Warm Spring Waters Nigeria Limited, Grand Cereals Limited, UAC Registrars and Unico CPFA Limited.

New growth centres UACN last month made two major announcements indicating acquisitions of majority stakes in two quoted companies. UACN would be buying significant equity stake in Livestock Feeds (LSF) Plc. The equity investment was driven by potential synergies between the two companies in the animal feeds industry and fell into UACN's strategy of building portfolios and partnerships that deliver long-term growth and value to the company and its stakeholders. UACN, which already has substantial investments in agro-allied business including livestock feeds, will find significant synergies in Livestock Feeds, a N1.6 billion animal feeds specialist company. The business combination would provide new catalyst by leveraging on LSF's manufacturing platform to penetrate new market geographies as well as deepening presence in existing markets, enhance and consolidate market power, achieve scope and scale economies in procurement, production and optimise manufacturing configuration that mitigates concentration risks. UACN also announced that it had signed agreement to buy controlling equity stake in Portland Paints and Products Plc (Portland Paints), another publicly quoted company. With net assets of N1.01 billion, Portland Paints recorded a turnover of N2.58 billion in the immediate past year ended December 31, 2011. Profits before and after tax stood at N274.95 million and N156.89 million respectively. It has shown better prospects this year with first quarter sales of N832.22 million and profit before tax of N110.33 million. Net earnings for the first three months stood at N75.02 million. The acquisition represents a major market consolidation thrust for the conglomerate, which already has controlling equity stake in CAP Plc, the largest quoted paints and chemical company. With already established presence in the Nigerian paint industry, the new deal would deepen the conglomerate's control in existing markets and create synergies for growth through larger scope and scale economies in procurement, production and

distribution. The acquisition of Portland Paints will not only enhance the existing decorative paints portfolio of the UACN Group, but it also holds possibilities for new businesses. Besides its flagship brand-Sandtex, Portland Paints' products include marine and protective coatings for oil and gas sector, sanitary ware, instant road repair material for repairs in all weather for cracks and potholes in asphalt, concrete and landing runway areas in airports as well as its traditional decorative and industrial paints. UACN, with its marketleading UPDC in the real estate sector, will find cost-saving synergies from other nonpaint businesses of Portland Paints. Although the two acquisition deals are still subject to final approval of the regulatory authorities, there is nothing statutorily against any of the deal, either in terms of competition or preemptive rights to sell. This initial clearance should have weighed in on the market consideration of UACN, as much as it has impacted on market considerations of the takeover targets. Because the underlying value is evident in each of the deal, whichever way the conglomerate seeks to consummate the synergies- either to continue to run the companies separately, a much-favoured option, or to integrate them in existing businesses.

Emerging results Besides, existing subsidiaries of UACN appeared to be in good stead for better performance in the current business year. While the three companies under the UACN Group had projected that they would pool about N6 billion in pre-tax earnings for the first half of this year, available actual results showed mixed performances. According to forecasts, the three companies were expected to pool total sales of about N39.6 billion while pre and post tax profits could be N5.8 billion and N4.02 billion respectively. UACN was projected to earn profit before tax of N3.75 billion on turnover of N31.01 billion during the period. Profit after tax is estimated at N2.63 billion. UPDC was estimated with turnover of N6.27 billion while profits before and after tax were projected at N1.35 billion and N920 million respectively. CAP had estimated net profit of N468 million from total sales of N2.30 billion. The paint and chemical company estimated that profit before tax could be N681 million, 8.1 per cent above operating profit of N630 million.

â&#x20AC;˘GMD, UACN Plc, Mr Larry Ettah

Actual interim report showed that CAP surpassed all targets with turnover of N2.53 billion during the first half while profits before and after tax stood at N849.31 million and N577.76 million respectively. Operating profit was N767.23 million. With half year earnings per share at N1.03 as against full-year earnings per share of N1.87 for 2011, the paints company appeared set for improved returns. However, UPDC fell below targets, although its 2012 performance was better than the comparative period of 2011. Turnover stood at N5.42 billion in 2012 as against N3.69 billion in 2011. Profit before tax stood at N683 million compared with N514.29 million in 2011 while profit after tax rose from N445.72 million in 2011 to N616.88 million in 2012. UACN recorded turnover of N30.50 billion in 2012 as against N26.27 billion in 2011. Operating profit rose from N3.65 billion to N4.15 billion. Profit before tax stood at N3.47 billion as against N3.12 billion while profit after tax improved from N1.82 billion to N2.14 billion.

Future position It may be too early to pinpoint the actual synergistic values of UACN's expansionary drives and the headwinds of costs also still remain threats, but there are several incontrovertible macro variables that suggest some potential. First, agricultural businesses hold strong potential under the government's profarm fiscal policy. With several sector-specific intervention funds and fiscal concessions, UACN can leverage on government's incentives to strengthen its internal productivity. The building and construction industry, with its allied sectors such as paints sector, is a buoyant sector with significant headroom for growth. Nigeria is not only below average housing target, its national infrastructure is inadequate. Growing as emerging economy will imply substantial growth in these areas. Besides, expected growth in mortgage finance, domestic cement production and availability, per capita income and other related variables would positively impact the demand for paints and accessories. While its conservative status might have weighed in negatively in the conglomerate's perception, in an emerging recovery like ours, such conservative nature as well as the steadiness of its earnings and consolidation should tickle long-term investors. It's always reassuring to feel the bricks and mortars behind the fluidity of pricing at the secondary market.

THE NATION MONDAY, AUGUST 13 , 2012

DUE DILIGENCE

Cutix: Struggling with costs

â&#x20AC;˘Chairman, Cutix Plc, Dr Ajulu Uzodike

2007

UTIX Plc continued to struggle with sluggish sales and high costs, which depressed its bottom-line for the second consecutive year. Audited report and accounts of the company for the year ended April 30, 2012 showed lower margins and returns. With top-line growth of 9.5 per cent, relatively significant increase in topline costs depressed average profit per unit of sale to its lowest level in recent years in 2012. Underlying returns also slipped to recent lows, reflecting the negative bottom-line. The company's balance sheet remained strenuous, with key benchmarks closing almost flat. Meanwhile, the cable manufacturing company retained its cash dividend payout. The financing and liquidity positions of the company also improved with better coverage for emerging liabilities.

Financing structure Cutix's paid up share capital re-

Fiscal Year Ended April 30 Nmillion Profit and Loss Statement Main Business Segment Total turnover Cost of sales Gross profit Operating expenses Interest and other incomes Finance expenses Pre-tax profit(loss) Post-tax profit (loss) Basic earnings per share(kobo) Gross dividend 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

2008

2009

2010

37.9 per cent.

By Taofik Salako

mained unchanged at N264 million but shareholders' funds improved marginally by 3.2 per cent from N496 million to N511 million. Total balance sheet size was almost flat at N944 million in 2012 as against N935 million in 2011. Current assets grew by 6.0 per cent from N574 million to N609 million while permanent assets dropped from N361 million to N335 million. Total liabilities meanwhile, slipped from N439 million to N433 million. The financing position of the company was stable. The proportion of equity funds to total assets improved marginally from 53 per cent to 54.2 per cent. The debt-to-equity ratio was better at 37.5 per cent in 2012 compared with 37.8 per cent. Longterm liabilities/total assets ratio stood at 45.9 per cent in 2012 as against 47 per cent in 2011 while current liabilities/total assets ratio improved from 38.5 per cent to

Efficiency The cable manufacturing company witnessed decline in productivity and efficiency during the period, although available details were not sufficient to determine the level of productivity and overall efficiency. Total costs of business-excluding finance charges, rose to 91 per cent in 2012 as against 89.1 per cent in 2011.

Profitability

Cutix's profit outlook worsened in the immediate past year with declines in both actual and underlying profitability. Generally negative underlying profitability indices underscored the decline in the overall profitability of the company. Gross profit margin dropped from 31.5 per cent in 2011 to 27.8 per cent in 2012. Pretax profit margin, which indicates average profit per 2012 2011 unit of sales, slipped from 12 months % change 12 months 8.7 per cent to 7.5 per cent. Returns on total assets dropped from 13.4 per cent 1,573 9.5 1,436 to 12.6 per cent. Return on

1,573 1,135 438 294 10 35 119 79 15 63 12 97

9.5 15.5 -3.3 -0.6 14.1 -8.2 -5.4 -6.3 -6.6 0.0 0.0 3.2

1,436 983 453 296 9 38 125 84 16 63 12 94

2011

2012

equity also dwindled from 17 per cent to 15.5 per cent. Total turnover stood at N1.57 billion in 2012, representing modest increase of 9.5 per cent on N1.44 billion recorded in 2011. Cost of sales however, rose by 15.5 per cent to N1.14 billion as against N983 million, undercutting gross profit by 3.3 per cent. Gross profit stood at N438 million in 2012 as against N453 million in 2011. The company contained its mid-line costs with both administrative and distribution costs relatively lower than previous positions. Total operating expenses thus flattened to N294 million as against N296 million in 2011. Non-core business incomes improved by 14 per cent from N9 million to N10 million. Interest expenses also dropped marginally to N35 million from N38 million. With these, profit before tax slipped by 5.4 per cent from N125 million to N119 million. Profit after tax followed the downtrend at N79 million as against N84 million in 2011. Further analysis of net earnings showed that basic net earnings per share reduced from 16 kobo in 2011 to about 15 kobo in 2012. The company retained a dividend per

Fiscal Year Ended April 30

2012 %

2011 %

54.2 45.9 37.9 37.5

53.0 47.0 38.5 37.8

27.8 7.5 12.6 15.5 1.3

31.5 8.7 13.4 17.0 1.3

NA NA 90.9

0.7 0.72 89.1

1.70 16.0 104.6

1.59 14.9 78.3

Financing structure Equity funds/Total assets Long-term liabilities/Total assets Current liabilities/Total assets Debt/Equity ratio Profitability Gross profit margin Pre-tax profit margin Return on total assets Return on equity Dividend cover (times)

326 335 101 609 944

-9.7 -7.3 63.9 6.0 0.9

361 361 61 574 935

96 192 358 75 433

22.6 2.2 -0.7 -5.1 -1.4

78 188 360 79 439

Pre-tax profit per employee (Nm) Staff cost per employee (Nm) Cost of sales, operating exp/Turnover

264 511

0.0 3.2

264 496

Current ratio Working capital/Turnover Debtors/Creditors

Efficiency

Liquidity

share of 12 kobo, totaling N63 million, the same amount distributed to shareholders for the past three years. However, the probability of sustaining such cash payout declined with a dividend cover 1.25 times in 2012 as against 1.3 times in 2011. Net assets per share inched up by 3.2 per cent from 94 kobo to 97 kobo.

Liquidity The liquidity position of the company improved generally with better working capital and coverage for emerging liabilities. Current ratio, which relates current assets to relative liabilities, improved from 1.59 times in 2011 to 1.70 times in 2012. The proportion of working capital to turnover however, improved from about 15 per cent to 16. Debtors/creditors ratio stood at 104.6 per cent in 2012 as against 78.3 per cent in 2011.

Governance and structures Cutix is an indigenous company wholly owned by Nigerians. Incorporated in 1982, the company gradually transformed from a private limited liability company formed and owned by friends and family members to become a publicly quoted company. The company recently embarked on major corporate changes including restructuring of its board of directors to become more compact and supportive of business growth and good corporate governance. Meanwhile, the management of the company remained stable under Mr Ifeanyi Uzodike. The company has largely complied with code of corporate governance and best practices.

Analyst's opinion Against the background of the macroeconomic environment, the performance of Cutix is appreciable. The increase in top-line, though still marginal, showed a reassuring break from recent downtrend. Cutix's performance was adversely affected by general challenges of poor infrastructure and unfavourable fiscal and monetary policies faced by the Nigerian manufacturers. With increase in cost of fuel and erratic public power supply, the company was bedeviled with rising costs amidst erosion of market share by substandard imports. Global increase in the cost of raw materials also compounded local cost variables. Government needs to protect the competitiveness of local manufacturing by ensuring that imports comply with Nigerian standards. Overall, there is the need for the company to step up its marketing activities and continue to contain costs.

JOBS THE NATION

Website:- http://www.thenationonlineng.com

THE NATION MONDAY, AUGUST 13, 2012

The dream of generating jobs through Foreign Direct Investment (FDI) will become a reality when the Lekki Free Zone (LFZ) begins operation in 2017. It is expected to create about 900,000 direct and indirect jobs, according to Trade and Investment Minister Olusegun Aganga. TOBA AGBOOLA reports.

900,000 jobs coming in Lekki Free Zone I

T still has five more years to take off, but its enormous potentials for creating jobs are being lauded now. The Lekki Free Trade Zone (LFTZ) is taking off in 2017 and when it does, it will create “900,000 direct and indirect jobs”. According to Trade and Investment Minister Olusegun Aganga, the zone will create 300,000 direct and 600,000 indirect jobs.

Describing the project as laudable, Aganga said the LFTZ is critical to the country’s economic development in terms of job creation and poverty alleviation, foreign exchange earnings, technology transfer and economic integration, among others. The Federal Government, he said would support Lagos State and the Chinese investors to ensure the success of the project. “The Federal Government is delighted at

the technology that would be brought to the country through the zone: the jobs that would be made available when the zone commences operation and investments that would come with the free trade zone,’’ Aganga said at the LFTZ Investment forum and opening of Eko Expo 2012 in Lagos. Investors in the zone include Puma Energy Free Zone Enterprise (FZE), which is investing in oil and gas terminal depot con-

struction. The company, which has began construction, is investing $400 million. Others are Imad Oil and Gas FZE, which is investing $200 million; China Railway Construction Corporation, $50 million and YFK Pharmaceutical FZE, $30 million, among others. • Continued on page 38

THE NATION MONDAY, AUGUST 13, 2012

JOBS

900,000 jobs coming in Lekki Free Zone • Continued from page 37

Aganga said: “The Lekki Free Trade Zone is indeed the biggest of the 19 free trade zones Chinese investors have presently outside China, and it has all the features to make it one of the most successful free trade zones in Africa. I have been informed by the Managing Director of the zone that about 48 investors have already committed to investing close to $1.1 billion in the zone. “I, therefore, salute the commitment of the major stakeholders in the LFTZ venture, the Lekki Worldwide Investment Limited, the China African Lekki Investment Limited, the Nigeria Export Processing Zones Authority (NEPZA) and indeed, the host community. I also commend the staff and management of LFTZ for their hard work and dedication, which have helped to shape this ongoing success story.” He said in line with the determination of the President Goodluck Jonathan’s administration to transform the economy through sound and viable trade and investment policies, the government would support Lagos State, the consortium of Chinese investors and other stakeholders in ensuring that the LFTZ is developed to attain its full potentials. Aganga praised the management for attracting investment into the zone, the technology it has brought and the jobs so far created. He said: “In today’s world, business relationships are symbiotic in nature. While we are expected to provide a conducive environment for investors, we also expect that investments coming to the zone will create jobs for Nigerians. And to enhance the contribution of FTZs to the growth of the economy, my ministry will work with the

• Aganga,

• Fashola

African Free Trade Zone Association, through NEPZA, to provide the necessary facilities to support the operational efficiency of FTZs in Nigeria. “Globally, FTZs are known to have one of the largest job creation capacities. Record has shown that for every job created in

FTZs, two additional jobs are created through a multiplier process.” Governor Babatunde Fashola praised the minister for his commitment in fast-tracking LFTZ’s completion. He said: “What we are seeing here today is the first tentative test for the implemen-

‘In today’s world, business relationships are symbiotic in nature. While we are expected to provide a conducive environment for investors, we also expect that investments coming to the zones will create jobs for Nigerians’

tation of the plan for LFTZ. The project will out-live many of us and will be a good legacy that our children will be proud of and thankful to those who visualised the project. “The partnership we have with the Federal Government and the enthusiasm the Minister of Trade and Investment has shown towards the project, is a very strong signal of our commitment to taking advantage of the investment opportunities in the state now.” He said there was need for a direct gas pipeline into the zone for the generation of power, noting that this is a major requirement for the sustainability of the zone. Out-going NEPZA Managing Director Dr. Adeshina Agboluaje, described the project as the the nucleus of the economy. Every free zone has its peculiarity, just as it plays individual roles in the economic development of its country, he said. Agboluaje, who is retiring after almost 10 years in NEPZA, said for Nigeria to be globally competitive, there must be a sustained effort by government and entrepreneurs in harnessing its potentials. Agboluaje said: “Free zones sell ideas. What you call yourself is what they call you in free zone operations. There are no two free zones in the world that are the same. Every free zone has its own peculiarity. The free zone sells an idea. It is actually the direction to go for Nigeria to take a leap. I have played a role in free zones operations in the country in the past 10 years. “I am grateful to the current government for doing everything possible to encourage these establishments. This is the future, and the future lies with free zones operation both in the areas of manufacturing for export and in jobs’ creation. I will remain committed to the ideals even after leaving.”

CAREER MANAGEMENT

Job interview-questions and answer quick guide

AM sure you had a feeling of strong urge to have real answers to potential questions contained in last week’s presentation. Really, nobody can provide the actual answer, as it were. It differs from interviewto-interview, from employer to employer and from candidate to candidate. Be as that may, we have provided a quick guide to theses questions and more. Why would you want to work here? Mention the following: • the good reputation of the firm; • any other positive information you have about them - for example: their training record or work environment; • the job will give you the opportunity to do work that excites/interests you. Why did you leave your last job? Be positive. If you left for health reasons, explain that you’re now able to carry out all the duties for the job you are applying for. Don’t use this as an opportunity to criticise your previous employer. If you were dismissed, say that you take responsibility for your actions and have learnt from the experience. Have you done this kind of work before? If you have, tell them the skills and experience you have and how you can use them in this job. If you haven’t, describe other work/ relevant non-work experience that is relevant to this job or which will help you learn this job quickly. Emphasise your interest and your enthusiasm to learn. What did you do in your last job? Describe the following things: • skills and duties relevant to the new job; • your responsibilities; • how you worked with others; • if you worked with customers - say how you worked with them; • how long you were there; • whether you were promoted; • responsibilities you volunteered to take on; • more importantly, you achievements/ results. What kinds of equipment can you use?

By Olu Oyeniran

This is an opportunity to show an employer how you can fit into their company, remember to: • name the types of equipment you can use that are relevant to the new job; • mention any relevant qualifications or training you have had; • tell them the length of time you have used this equipment. How long have you been out of work and how do you spend your time? Describe the following: • what you have done to look for a job; • any further education, study or training you have taken part in; • your hobbies and leisure activities – if appropriate. Try to link what you did to the skills and experience the employer is looking for. What makes you think you are the right person for this job? Tell the interviewer about the following: • the training, skills and experience you have which are relevant to the job; • the personal qualities that you bring to the job. Why have you had so many jobs? You could say the following things: • you wanted to widen your experience in different types of work or in different companies; • many of the jobs were temporary; • you would rather be in work than out of work. Why have you only had one job? You could say the following things: • you had several jobs within your last company; • the job offered you the opportunity to develop; • you enjoyed the work. Why should the employer take you on? Be ready for this question and answer confidently and positively: • describe your skills and experience and how relevant they are to this job;

• tell them you are enthusiastic and willing to learn; • tell them you are hardworking, reliable and capable; • stress positive personal qualities/traits. Aren’t you overqualified? Emphasise the following: • you are looking for something different; • you can take as well as give instructions. How do you get on with people? Tell the interviewer: • how you have worked as a team in the past; • how you get on with people at all levels - give examples; • how you have provided good customer service, if this is relevant - give examples. What makes a good team member? Describe the skills needed, for example: • good communication skills; • flexibility; • the ability to adapt to change; • the ability to cooperate with other people; • having a good sense of humour. Give examples of how you showed these in previous work situations or leisure activities. How do you cope with pressure? Describe pressures in previous jobs using a recent example - such as how you: • coped with a deadline that had been brought forward; • completed a rush order; • dealt with staff shortages. What are your strengths and weaknesses? It is a good idea to have one or two examples of each ready for this question. Employers value people who can admit their mistakes rather than blaming their failings on others. • strengths: the employer should already know your strengths from your application but you may want to emphasise particular skills relevant to the job by giving examples. • weaknesses: start by describing parts of your last job which you found difficult and

then explain how you overcame these difficulties or be brief but honest - for example: ‘I can sometimes be a little too enthusiastic’. What would you like to be doing in five years’ time? Explain that you would ideally like to be working for the same company but to have developed within it. What wage do you expect to earn? If the wage level is negotiable, be prepared to negotiate. The difficult thing to decide is where to start. If you tell them a wage that is too high, you could price yourself out of the job. If you give an amount that is too low you could lose out. Before going to the interview, try to find out about wage levels in your area. You can look at similar jobs advertised with your Jobcentre, in newspapers or on the internet. You might be able to use this information in your negotiations. If you are really not sure, then say you would expect to receive the going rate for the job. When would you be available to start? As soon as possible. But be truthful if you have a mandatory notice requirement in your current employment contract. Otherwise, do not put any barriers in the way. Do you have any questions? You may like to prepare for this, as it is almost always asked at an interview. Asking some questions (but not too many) can show you are interested. One or two of these may be appropriate. • Do you offer ongoing training and development? • What will my first job be? • How soon will I hear the result of my application? • Does the company carry out performance reviews and how often? Olu Oyeniran is the Lead Consultant, EkiniConsult & Associates. Website: www.jobsearchhow.com E-mail: oluoyeniran@yahoo.com Tel 08083843230 (SMS Only).

THE NATION MONDAY, AUGUST 13, 2012

AFRICAN BUSINESS Gold extraction reopens in Ghana

Food inflation yet to G abate in southern Africa S

OUTH African inflation is not seen racing to 13 per cent next year, but pressure from food prices -- which account for 14 percent of the inflation basket -- are seen remaining in place. Local wheat prices, for example, are sizzling with the December contract hitting record highs in July. There is a strong-nine month tie lag between South African consumer inflation and domestic wheat futures. Inflation pressures nine months hence could have wide consequences as mine workers and platinum, gold and coal bosses will start sitting down then to hammer out new wage deals. This, in turn, could keep the pedal on overall prices in the economy if the settlements far exceed inflation. Even if grain futures suddenly fall back to earth, the prices consumers pay in South Africa and elsewhere in the region may not follow suit because of ballooning input costs. According to Mike Schussler, director of economists.co.za, South African seed prices have been rising at almost 18 percent per year since 1999, almost triple the average inflation

rate over the same period, because there are so few distributors. "Regionally, I think food inflation is likely to be higher for the next 18 months to two years," Schussler said. "I think the whole costs base here in southern Africa is under pressure as diverse costs such as rail fees and port fees and seeds all are increasing above the rate of inflation." With inputs so high, commercial and peasant farmers alike will have no incentives to plant big crops if global grain futures do cool off and domestic prices fall with them. This in turn could push domestic prices back up. And in the longer run, the outlook for regional food prices can only be skyward because of demography, which will lift demand, and also possibly climate change, which may hit supply if events such as the current United States drought become frequent. Take Zambia and Malawi. Both countries have been reaping bumper harvests in recent years, helping to contain inflation. Zambia needs around 2.5 million tonnes of maize for human consumption and output has been topping that. The 2010/2011 season saw a record

crop of over three million tonnes. But this 500,000-tonne surplus could get snapped up by population growth if harvests don't continue to grow. According to the United Nations Population Fund, 46 per cent of Zambia and Malawi's populations are under the age of 15, a trend seen in other countries in the region such as Angola. In South Africa the number is lower but still high at 30 per cent. Such a demographic profile can only mean demand for maize will continue to rise briskly for the foreseeable future. It also points to an economy where dependents far outnumber breadwinners, a scenario that further feeds into labour wage demands in the most unionised region on the continent. Southern Africa also has a growing middle class that will rely less on maize as a staple but trends in other emerging markets suggest this shift in diet will boost consumption of meat products such as beef which also rely heavily on corn. It all points to growing demand amid uncertain supply: the key ingredients for a food inflation recipe.

OLD Fields' Ghana operations, where gold is extracted from ore, have reopened after being shut for over three weeks by the country's Environmental Protection Agency, the company has said. Gold Fields, which produces around 850,000 ounces globally each quarter, said it lost about 15,000 ounces to the closure of what are known as "heap leach facilities". The company is the world no. 4 bullion producer.

The operations are part of the company's Tarkwa gold mine and were shut on July 16 to comply with an EPA directive calling for water discharges to be directed through a treatment plant. "Although Gold Fields believes that Tarkwa was complying with the prescribed conductivity levels in its water discharges, it has nonetheless commissioned the construction of two water treatment plants at the heap leach facilities," the company said in a statement.

Tunisia seeks $1b loans for budget

UNISIA has said it expects to secure $1 billion in loans soon from the World Bank and the African Development Bank (AfDB) to support its budget, as its economy gradually emerges from the aftermath of the uprising that toppled the former regime. Investment Minister Riadh Bettaib told reporters the two institutions would each lend $500 million. The loans "will support the budget for the last six months of 2012", he said. Bettaib said the loans would fund infrastructure projects, job creation and help the private sector recover from the repercussions of the revolt. The government forecasts a budget deficit of 6.6 per cent of gross domestic product this year. Police fired teargas and rubber

bullets on Thursday to disperse protesters demanding jobs and more investment in the town of Sidi Bouzid in central Tunisia, where the revolution that ousted Tunisia's autocratic leader last year began, triggering the Arab Spring uprisings. The protest reflected how far Tunisia has to go to fulfils the promise of its revolution, which began with the death of jobless university graduate Mohamed Bouazizi who set himself on fire in despair after police confiscated his unlicensed fruit and vegetable cart. The Tunisian economy is gradually recovering from last year's political turmoil but it faces problems as a result of the crisis in the euro zone, the main market for its exports and the source of most of its tourist visitors.

Ramadan: Sudanese protest rising meat prices

â&#x20AC;˘Chairman, Vono Products PLC, Mr Bashiru Lasisi(centre) flanked by Company Secretary/Legal Adviser, Mr Lekan Sanni and Managing Director Mrs Titilola Bakare during the companyâ&#x20AC;&#x2122;s 51st AGM in Ikeja, Lagos.

American firm to drill offshore well in Kenya

NITED States explorer Apache Corp. plans to drill an offshore well off the Kenyan coast soon, company executives said, expanding the search for oil in the east African country that struck oil onshore in March. East Africa and the Horn of the continent have become hot spots for oil and gas exploration in recent years, spurred by new finds in countries including Kenya, Uganda, Tanzania and Mozambique. However, oil companies have yet to make finds offshore. Apache will drill in an area known as the Mbawa prospect on Block L8 in the Indian Ocean. "Spudding is imminent," Barry

Rushworth, Chief Executive Officer of Pancontinental Oil and Gas, one of Apache's partners with a stake in the block, said in an email to Reuters. Apache, the operator in the block, is partnered by British firm Tullow Oil, which made Kenya's onshore discovery this March, and Australian firms Origin Energy and Pancontinental. Tullow has placed the odds of the well's success at 15 per cent, while Pancontinental has estimated the well could contain as much as 4.9 billion barrels of oil. In 2007, Australia's Woodside Petroleum drilled Kenya's last offshore well at a cost of nearly $100 million, but found no oil deposits and paid the government to exit from a con-

tract that had required the firm to drill a second well. Apache said in July it had taken special precaution to ensure the operation goes smoothly. It has enlisted the Kenyan Navy to protect the drillship from pirates who have been hijacking ships in the Indian Ocean for ransom. The well is expected to take 60 days to complete and reach 3,250 metres below the sea in water depth of 860 metres. "The main concern that we have with regard to security is the potential for piracy, and with that regard, we have partnered with the navy," said Tim Gilblom, managing director of Apache Kenya.

HEN Sudanese school teacher Abdelaziz Ibrahim enters a market in Khartoum to buy food for his family to break the fast in the Muslim month of Ramadan he doesn't even bother checking meat prices. There's no point; it's far too expensive. "Food prices have gone up like crazy. We can rarely afford meat anymore so we'll have to eat more vegetables," said Ibrahim, who bought tomatoes and beans after checking prices at several makeshift stands for a long time. "This is the worst Ramadan we've ever had," said the teacher, who needs to feed six children, his wife and his mother at his home in north Khartoum. Food prices always go up across Muslim countries during Ramadan when people like to enjoy long evening meals, or iftars. But in Sudan, an economic crisis exacerbated by the loss of three-quarters of its oil wealth after archfoe South Sudan became independent a year ago has made things even worse. Faced with a gaping budget deficit due to the loss, President Omar Hassan al-Bashir has unveiled austerity measures that have sparked small demonstrations. In Khartoum and other large cities the protests have petered out after a security crackdown and the start of Ramadan when most people stay indoors all day. Sudanese activists estimate more than 1,000 people were detained

before that since June, though the figures are impossible to verify. Protests have so far been much smaller than those seen in Egypt, Tunisia or Yemen with mainly students, lawyers and intellectuals demanding an end to Bashir's 23-year rule. Bashir has dismissed the protests as insignificant. But rising food prices risk upsetting a larger number of people at a time when people like to socialise all night after fasting. "We're cutting and cutting on food and drinks. Every iftar costs at least 40 pounds because we are seven at home," said Ibrahim Ali, a 70-year-old retired civil servant. His family's iftar now mainly consists of ful, a poor man's diet consisting of beans, and they can only afford to drink tamarind juice sometimes. The loss of oil deprived Sudan of its main source of dollars needed to fund its food imports. Annual inflation hit 41.6 percent in July, almost triple the figure of 15 percent registered just over a year earlier before South Sudan became independent. Even prices for locally produced food such as lamb are soaring because the government is scaling back fuel subsidies, pushing up transport costs in the vast country. A kilo of lamb meat costs 50 pounds, compared to 35 pounds a year ago. A kilo of tomatoes costs up to 30 pounds, double the price last year.

South Africa benchmark index hits record

OUTH Africa's benchmark index hit a record close on Friday, rising 0.25 per cent as Gold Fields and other bullion producers were helped by dim Chinese data and fading hopes that Europe will take resolute action on its economy. The benchmark Top-40 finished at 31,330.12, about 15 points above its previous closing high, registered in May 2008. The All-share index, the broadest measure of South African stock performance, also hit a record closing high by gaining 0.23 per cent to 35,574.51. Share prices were negative for most

of the day, reflecting the negative sentiment in most world markets as lower than expected reading in China's July exports soured the mood on Friday. "It's lacklustre trading, the volumes are thin and you can see that the overseas markets were really not performing well due to the Chinese data that came out this morning," said Wilmar Buys, portfolio manager at Finance, Futures and Options Securities. "If Chinese data points to lower growth and also subdue demand then commodities are going to get hurt."

The world's biggest consumer of metals, China's exports grew just over 1.0 per cent in July from a year earlier, missing forecasts by a big margin. But some of the uncertainty helped the gold price, which often benefits from nervous markets. That, in turn, lifted gold miners. Gold Fields led the gainers at 112.62 rand, rising three per cent. Africa's biggest miner of the precious metal, AngloGold Ashanti, added nearly two per cent to 281 rand. Fixed-line operator Telkom SA surged nearly seven per cent to 19.36 rand as investors bet the long-suf-

fering stock may have fallen too far in recent sessions, and on speculation the government could pay a premium if it decides to nationalise the company again. Shares of Telkom are down more than 30 per cent this year, making it the fifth-worst performing stock on the All-share index. It is also near its lowest since late 2003. The ruling African National Congress has been discussing a potential nationalisation of Telkom, although nothing has been decided. "If there's going to be a buy back of the stock, obviously there's going to be a minority take out as well, which

is obviously is going to be at a premium," said Thys van Zyl, a trader at Thebe Stockbroking. Shares of the exchange operator JSE Ltd fell 1.6 per cent to 75.90 rand after it announced earnings would likely decline by up to 20 per cent due to some impairment costs. Traded volumes were lower with 133 million shares trading hands, according to latest bourse statistics, after a holiday on Thursday. This compares with a total 150 million in the last trading session on Wednesday. Advancers outnumbered decliners at 138 to 135. A total of 59 stocks were unchanged.

THE NATION MONDAY, AUGUST 13, 2012

LABOUR

NUJ to Ibrahim: pay Newswatch staff their arrears T HE Nigeria Union of Journalists (NUJ) , Lagos State Council , has asked the management of Newswatch magazine to pay its workers their four months’ salary arrears before talking about repositioning the publication. The NUJ disclosed this in a statement from its Chairman, Deji Elumoye and Secretary, Sylva Okereke. The Newswatch management had last Tuesday suspended the publication of the weekly magazine. The Lagos NUJ wondered why the Chairman of Newswatch magazine, Mr Jimoh Ibrahim , will be talking about repositioning the publication without considering the welfare of the workforce, which stands at 106. ‘’How can you be repositioning when in the last 15 months when Jimoh Ibrahim bought 51 per cent controlling shares in Newswatch he has been finding it difficult to pay staff salaries and it came to a peak that workers have not been paid since May. ‘’So what is there to reposition when even management is also having problems of paying common weekly transport claims to the editorial staff and that as at today the claims ( BTA) for over 10 weeks are yet to be cleared, ‘’ the NUJ querried. It said it was aware the publication is doing well on the newsstand, adding that the fear of the management is to pre-empt the move by journalists in Newswatch to down tools’’ going by the content of the letter they wrote to Jimoh Ibrahim last week, a copy of which was sent to the Lagos NUJ’’ The Council said it swung into action upon receiving the letter, which culminated in the holding of a Congress in Newswatch newsroom on August 2 ‘’where it was resolved that management going by the earlier assurance of the Chief Operating Officer (COO), Mr Ige should be given up to August 16 to clear all outstanding salaries and

Stories by Dupe Olaoye-Osinkolu

allowances.’’ ‘’We were, therefore, shocked on August 6 when workers were given one hour notice to attend a meeting with the CEO , Mr Ibrahim by 1 pm during, which the management was now singing a different tune including suspension of publication and repositioning.” The council added that the management should have a re-think about suspending the publication ‘’and rather tackle headlong the issue of low morale among the staff due to non payment of salaries and allowances.’’ Founding directors of Newswatch have also asked Ibrahim to reverse its decision of suspending the publication in the interest of the company, its staff, the advertising community and the reading public. The directors - Ray Ekpu, Dan Agbese, Yakubu Mohammed and Soji Akinrinade speaking through Ekpu at the Ladi Lawal Press Centre, secretariat of the Lagos NUJ, asked Ibrahim to pay outstanding salaries and allowances of the staff and inject the agreed funds into the company. Ekpu, former Editor-In-Chief of the magazine, said other board members were shocked at Ibrahim’s solo decision. They accused him of compounding the magazine’s problems when he came on board as investor. Besides, they said instead of investing in it, he opened a new account for Newswatch, making himself and one Bankole Makinde, a member of staff. He paid the N510 million, being first installment in the agreement for the 51 per cent equity share acquired in the company and later withdrew N150 million from the money, which he returned to NICON Insurance.

The agreement, according to Ekpu, was that Ibrahim should pay the initial amount of N510 million to Newswatch, and after three months, pay another N500 million. “Fifteen months after, Newswatch is worse than Mr Ibrahim met it,” he said. While announcing the suspension of the magazine, Ibrahim had said the publication needed “corporate surgery.” He said: “The decision is taken to reposition the magazine and make it relevant to modern development, and as such, the magazine is due for corporate surgery.” When asked why they sold Newswatch to Ibrahim, Ekpu said they brought him in to inject fresh funds into the company and turn it around. “We had thought that after nearly 15 months of the new management of the company being in the saddle, the fortunes of Newswatch would have improved dramatically or at least the seeds of its improvement would have been sown and would have started to germinate. “The decision came to us, as indeed to millions of Nigerians, as a big shock. Newswatch has faithfully kept faith with its readers and the public since its debut as the pioneer weekly magazine on February 28, 1985. In that time, through good and bad business times, except for its proscription for six months by the Babangida administration, the magazine has hit the newsstand every week.” He said no board meeting was held before the decision to suspend the publication of Newswatch. He added that Ibrahim made a public announcement that he would turn the company around by investing in a new printing press, building a new head office at 3 Billings Way, Oregun, improving on the technology already available at Newswatch and funding the company to enable staff, particularly the editorial staff to do their work diligently and effectively.

Institutes’ non-academic staff begin strike today

HE Non-Academic Staff Union of Research Institutes (NASURI) said its members would begin a nationwide strike today if the Federal Government failed to implement the agreement they entered into. National Deputy President of the union, Comrade Tijani Wakili, disclosed the planned strike in a telephone interview. He said the Federal Government did not give an effective date for the commencement of payment of the Consolidated Research and Allied Institute Salary Structure (CONRAISIS). Wakili said that in the agreement with the government, the effective date for the implementation of CONRAISIS was 2009. He said the government commenced the payment from 2010, thereby owing his members 12 months’ arrears. “Our 53.37 per cent salary increase, the effective date is supposed to be July 2009, but they gave us July 2010. We are thinking it is not fair enough since other establishments have received that money from January 1, 2009. “At the meeting with government, it was said there is a policy the government will not pay arrears; but since they paid arrears to other establishments why is that of research different?” he asked. The deputy president listed other agreements to include funding of research institutes and establishment of a central body to coordinate the affairs of research institutes. He said the union had earlier given the government 60 days warning ultimatum, while the 14 days ultimatum that expired yesterday would be followed by the strike today. Wakili expressed dismay at the negative attitude of government towards research development. “We want the government to fund research. Research is the bedrock of the development of any nation. If we want to develop, we have to take research seriously. “If you look at developed nations, they take research very seriously. And that is where their development starts from. “If we focus on research in Nigeria, I think it will go a long way in bringing about the development of the country,” he said.

Under-qualified teachers in Kaduna get ultimatum

•From left: Deputy Governor of Osun State, Mrs. Titi Laoye- Tomori; outgoing Head of Service, Elder Segun Akinwusi,his wife, Yinka, Chief of Staff to the Governor, Mr Gboyega Oyetola and former Head of Service/Secretary to the State Government, Mr Foloruso Abiona at the celebration of the retirement of Akinwusi in Osogbo recently.

Civil service pensioners protest non-payment of arrears

HE Joint Committee of Associations of Federal Pensioners last Thursday in Abuja held a peaceful demonstration to protest the non-payment of the arrears of its members. Members of the committee staged the protest outside the office of the Head of Service at the Federal Secretariat. The pensioners blocked major roads leading to the secretariat, resulting in traffic gridlock around the area. They also called for the dissolution of the Pension Task Force. Public Relations Officer of the Pension Reform Task Team, Mr Hassan Salihu, however, said the pensioners did not contact the task force before embarking on the protest. Salihu said pensioners’ arrears were being paid in batches after thorough vetting of their claims by the task team. He said all genuine pensioners would be paid as the Federal Government had adequate funds to pay them. According to the pensioners, the demonstration will not stop until the Federal Gov-

ernment meets their demands. Chairman of the committee, Mr James Bassey, said some categories of pensioners had been short-changed in the payment of their gratuity. “Due to wrong calculations of their terminal benefits, using wrong grade levels and steps, some pensioners are yet to be placed on the monthly payroll for their pension allowances since leaving the service,’’ Bassey said. Bassey quoted the Director-General of Budget Office of the Federation as saying that funds had not been released to cover the payment of increment in the allowances of pensioners. President Goodluck Jonathan in 2010 approved the upward review of allowances of pensioners by 53.4 per cent. But Bassey said the money for payment of arrears to pensioners had not been released because they are waiting to clear ghost pensioners from the pension payroll. “We were told severally that the civil service is trying to sort out the ghost workers in the service; it is not enough reason for

the delay in paying salaries and the Jonathan Award,’’ he said. Bassey stressed the need for the government to sanitise pension management and administration, adding that it would enhance the welfare and well-being of pensioners. He called for the dissolution of the Pension Task Force, saying it had accumulated more problems for the pensioners instead of solving them. “We request for the dissolution of this pension task force while immediate consideration is given for the creation of a civilian pensions board.’’ Also speaking, Mr Ehada Mohammed, who represented the General Secretary of the Nigerian Union of Pensioners (NUP), Mr Actor Zal, said the pensioners were only trying to ensure that their problem was addressed. “We believe that what we are doing is the right thing and this is the only way to address the issue so that we can recover our money fast after all the delay.’’

HE Kaduna State government has given 18,231 under-qualified teachers in its schools five years to upgrade their qualifications or leave the service. Commissioner for Education, Alhaji Muhammad Usman, said the government took the decision at the state executive council meeting last week. “The council has approved that all the teachers, who are under-qualified, must enroll in one of the training institutions so that within the next five years they should have completed on a part-time basis, the NCE programme,’’ he said. The Nigeria Certificate in Education (NCE) is the minimum qualification to teach in Nigeria. Usman decried the dearth of quality education in the state and attributed the development to the failure to implement a stipulated time frame for under-qualified teachers to obtain teaching certificates as mandated by the Federal Government. “ Our statistics show 18,231 teachers in the service are under-qualified, as they do not possess the NCE certificate, which is the minimum qualification adopted for teaching, ’’ he said. He said the government would not tolerate non-compliance with the directive, as it had given the teachers the opportunity to obtain the certificate and remain in the service. “ The ministry is expected to receive annual report on the progress of the teachers from the institutions they decide to enroll in to ensure the decision is complied with, ’’ he said. The commissioner said the teachers could obtain certificates from the College of Education, Gidan Waya, Federal College of Education, Zaria, National Teachers’ Institute or Faculty of Education, ABU, Zaria. He warned that failure of the teachers to produce the certificate within the stipulated time would attract dismissal from the service. Usman said the committee on the implementation of white paper on the report of teachers’ qualification in 2011 under his Chairmanship showed 1,840 teachers had fake certificates and were dismissed.

•At arm's length: Hungary's Szabolcs Zubai (left) tries to block Croatia's Blazenko Lackovic during the men's handball bronze medal match

•Gold medallists Mo Farahh and Usain Bolts pose on the podium

Monday, August 13, 2012

•SETTING THE BAR: Russia led after the first rotation in the allaround gymnastics final •RECORD BREAKER: Sarolta Kovacs of Hungary looks to the scoreboard after she won the swimming competition with a modern pentathlon record time

•Australia celebrate in the Olympic Rings at Weymouth and Portland Mathew Belcher (R) and Malcolm Page (L) of Australia celebrate in the Olympic Rings after winning gold in the 470 Sailing on Day 14 of the London 2012 Olympic Games.

•Oleksandr Usyk of Ukraine celebrates defeating Clemente Russo of Italy to win the Men's Heavy (91kg) Boxing final bout on Day 15 of the London 2012 Olympic Games at ExCeL

•USA Basketballer

•Francena McCorory, Allyson Felix, Sanya Richards-Ross and DeeDee Trotter of the USA celebrate winning gold in the women's 4 x 400m Relay final.

•Denmark fans cheer

•Laura Trott poses with her medals •Athletes compete in men's marathon

•Caster Semenya of South Africa

•Britain's Liam Killeen (25) tackles the cross country course at Hadleigh Farm

•Bulgaria performs with the ball during the group all-roumd rhythmic gymnastics final

MONDAY, AUGUST 13, 2012

POLITICS THE NATION

E-mail:- politics@thenationonlineng.net

Almost 52 years after independence, Nigeria is still grappling with the dearth of visionary and exemplary leadership. Besides, there are salient national questions begging for answers. EMMANUEL OLADESU and AUGUSTINE AVWODE present the views of two eminent Nigerians, Asiwaju Bola Tinubu and Ekiti State Governor Kayode Fayemi, on the way out.

Tinubu, Fayemi: Re-engaging the national question

UESTIONS abound on the future of Nigeria’s fledging federalism. Many stakeholders contend that, central to peaceful coexistence, stability of the country and consolidation of democracy is the resolution of the national question. Is the country not ripe for restructuring? Should the power-loaded distant federal government devolve power to the state? Why should governors who are chief security officers depend on the Inspector General of Police for security of their states? How should the 1999 Constitution be reviewed? What is the basis for a national conference? These fundamental questions resonated at the launch of a book: ‘The Nigerian Political Turf: Polity, Politics and Politicians’, written by the Group Political Editor of ‘The Nation’, Mr. Mobalade Omonijo. Eminent Nigerians who spoke at the ceremony, which held at Muson Center, Lagos, including the National Leader of the Action Congress of Nigeria (ACN) Senator Bola Tinubu, Ekiti State Governor Kayode Fayemi, Senator Olufemi Lanlehin and Senator Ganiyu Solomon, lamented that the non-resolution of the fundamental issues germane to national unity and stability constituted a drawback. “Nigeria needs fixing and this fixing is a task for both the leaders and followers”, intoned Tinubu, who was represented by former Lagos State Commissioner for Health, Dr. Leke Pitan. “Nigeria is fast becoming a country of lamentations. Lamenting about our condition will not bring about change. Only action will”. Fayemi, who delivered a lecture titled: ‘The Nigerian polity, politics and politicians: Moving from transactional to transformational leadership’, faulted the leadership recruitment procedure in the country, noting that many in the corridor of power are political traders. He said the resolution of these problems is being delayed or postponed because Nigerians are docile. The governor observed that the country cannot afford to avoid conditions that can accord it the status of a nation-state. “Many of the internal contradictions of the Nigerian state have been sharpened to a point that the bare bones are now visible. The failure to address the national or nationality questions in an inclusive manner is evident in the varied responses across the country to conflicts over identity, nationality, selfdetermination and autonomy”, Fayemi added. These puzzles, in his view, are tied to the question of what type of federalism to adopt. Fayemi observed that, unlike in the past when the government decreed issues, including religion, autonomy and resource control as constitutional “no-go areas”, Nigerians are now openly debating them, thereby putting to test the hitherto authoritarian might of the ‘federal centre’. “What is the nation called Nigeria?, What does it mean to be a Nigerian?, How do we manage diversity and difference in a multi-ethnic, multi-faith polity? These are some of the questions that we avoided in the events leading up to May 29, 1999, in the desperation for anything but the military”, he added. Many core issues captured by the

•Osun State Deputy Governor Titilayo Laoye-Tomori (right), Senator Ganiyu Solomon and representative of Delta State governor Prof. Hope Eghagha at the book launch in Lagos.

Fundamental issues: • True federalism • Restructuring of the polity • Devolution of power • Resource allocation and control • State and Community police • Local Government • Form of government • Electoral reforms • Secularity of the state • Marginalisation and power rotation • Land Use, quota system and federal character. • Constitution review • Sovereign National Conference book and re-echoed by Tinubu have shaped the perception and direction of response to the political milieu by aggrieved ethnic nationalities. They include the continuous controversy over the 1999 Constitution, lack of true federalism, unending battle for control and power by politicians, elections and electoral reforms, fuel hike and corruption. Taking a swipe at the monopolisation of power, privileges and resources by a tiny political class, Tinubu said Nigeria has become a country where everything is politicised and where, unless you are in politics or connected to someone in politics, you are not likely to make headway. More worrisome to the former governor is the growing insecurity in the land. “The present state of insecurity and bombings is symptomatic of a free fall. The government must act quickly and intelligently to curtail the situation before Nigerians resort to self-help”, he said. But he quickly added that that the solution is not beyond reach. Noting that the debate over state or community policing is long overdue, Tinubu emphasised that “Nigeria needs to decentralise its policing system in line with universal policing trends”. In the pre-1999 period, the resolu-

• Asiwaju Tinubu

tion of the national question was on the agenda of pro-democracy activists. However, when democracy was restored, power landed on the palms of retired soldiers who compounded the nation’s woes during the long period of military rule. “We ended up with a democracy with pseudodemocrats”, Fayemi said, pointing out that these emergency democrats have created strains and international contradictions threatening the flawed system. “Nowhere are the limits of the democratic project in Nigeria more apparent than in the question of creating appropriate institutional arrangements for the political accomodation and management of social diversities and differences”, he stressed. The consequence is national crisis of ethnic nature. As Fayemi put it, the lethality of many of these conflicts has been transformed in score and intensity with the unrestricted availability of small arms and unemployed youths. “At the core of the crisis either in the Niger Delta or in the North is the failure of politics to allocate authority, legitimise it, and use it to achieve the social and economic ends conducive to wellbeing”, he said. Fayemi called for state or commu-

• Dr Fayemi

nity police. But he also said that in its drive for security, leaders should also focus on ‘human security’, which includes access to the means of life, provision of good roads, sustainable environment and democratic freedoms. The governor canvassed “a new political and economic framework, guaranteed by a new federal constitution, that would transfer power, and with it, the control of economic resources, to local people; allowing them in turn to pay appropriate taxes to federal coffers”. Also, Fayemi hammered on good governance, saying that it is better to take politics beyond political parties. “The immediate challenge for all of us is to concentrate on how to rescue our people from bad governance”, he added. The sure path to resolving the leadership question in the country, according to Tinubu and Fayemi is mass participation in the process of governance. At the event, they canvassed vehemently in their separate presentations, an end to the passive attitude which many Nigerians elite have displayed all along. Tinubu warned that “Nigeria is right now at a sorry pass and no one needs a soothsayer to reveal that Nigeria is almost at the tipping

point”. He warned that except all join hand and speak out, and jointly find a solution now, no one will be spared. He told the story of a German protestant pastor, Martin Niemoller, during the Nazi rule to illustrate his point. He adopted a passive attitude when the powers that be came for those who were involved, thinking that he would be spared but how wrong he was. According to Tinubu, “But we cannot continue like this. That we are where we are today is because the politicians, in whatever garb, have turned politics into zero sum game. Winner-take-all. Some kind of booty game. “A rat race where you must gobble up as much as you can in the shortest time possible. Nigeria is prostrate because we have taken the morality out of politics and replaced it completely with enlightened self interest. “The resounding message from Omonijo is that unless we speak up, unless we mobilize for action, unless the people wake up from the slumber, a Moses will not emerge, a revolution will not happen and Nigeria will remain in the auto-repair section”, he stated. He listed the consequences of maintaining a passive disposition. In his words: “When we refuse to speak up against injustice against our fellow citizen. When we fail to rise up in defence of our rights and freedoms; when we slumber and sleep rather than line the streets to make our case and demand that those who misrule us be pushed out; when we behave like we are a sadistic people who enjoy pains being inflicted on us by those elected to protect us, we open ourselves up to abuse, exploitation and pauperization. As Nigerians, we must learn to walk the talk, we must band together to demand from our leaders that our country is better governed and we must not relent until we witness the changes we so much desire. Else, darkness will descend. And no man, either from Sokoto to Samunaka, or from kontagora to kaduna, or from Ibadan to Imo, or from Delta to Plateau will be spared”, he warned. He insisted that “Nigerians have a right to demand to be governed properly”, saying the Arab spring protests and the near revolutionary process that it continues to unleash remains most instructive in the Nigeria situation of today. Fayemi explores what he described as “citizens’ engagement in democracy”. He argued that “ the issue should not be one for politicians or non-politicians, but the extent to which we are able to achieve citizen participation in our democracy. The issue of leadership – particularly, how we conceptualise leadership is central to the discourse. “In my view, our discussion should really focus more on the making of leaders and citizens in a good society because without direct citizen participation, the legitimacy of our political institutions will continue to decline. It is for this reason that I strongly believe that leaders – be they politicians or non-politicians should worry because their ability to lead effectively is being seriously undermined by the deser •Continued on page 44

THE NATION MONDAY, AUGUST 13, 2012

POLITICS House of Representatives member Dr. Babatunde Adejare (Agege Constituency) spoke with reporters in Lagos on national issues. Deputy Political Editor EMMANUEL OLADESU was there.

‘President should not joke with impeachment threat’

OULD you shed light on your activities in the House of Rep resentatives in the last one year? The major work I have put myself to doing in that House is how to see that the Public Procurement Law works to perfection. We have a very nice law about procurement, but the execution has not been the way it should be. There is supposed to be a Procurement Commission; there are lots of agencies that are supposed to be set up by the Executive arm that have not been set up; there are a lot of things they are not doing as per what the bill says. So I have put upon myself by a way of motion to see that we have proper maintenance of this Procurement Law. We as a House started the subsidy thing, we told you when the problem came and the president said he was going to remove subsidy on petrol. It was a serious problem on our hand then, we cut off our recess and we even sat on Sunday. And one of things we promised the people was that they should not go on the streets or go strike, we said we will look into the subsidy issue. We even went to extent of looking into whether anybody was even subsidising anything, and that was how it started and here we are today. And as far as subsidy is concerned, you have been able to see that there are so many shady deals; we have been able to discover that we don’t need that huge amount to subsidise our petrol. We also discovered that the way the subsidy was managed and funded was not according to the law of the land. The law does not permit anybody, not even the president to dip hands into our money without any appropriation to back it up. Why is the House always at loggerheads with the President? One of the sad days I have had in recent times was May 28. I can’t remember exactly what programme it was, but I think it was a parley between the three arms of government at the federal level. And the President came on the National television to say that the House of Reps is his problem and without being prompted, he went ahead to say that we don’t do things the way they wanted us to do it, and that it is only us that will not do things the way they wanted it. I felt bad because it came from my president, which I believe should not see it in that light. But at the same time, I was so happy that the president knows this, I am glad and I hope that the people themselves heard him that day and they are now seeing it too the way I was seeing it. Sincerely speaking, we are not there to satisfy the president; we are there all of us, including the

• Adejare

president, to satisfy the people. If we are doing that, no apology to Mr. President for him feeling the way he is feeling. I am even happy he is feeling that way because that has made them to even sit up better than before. The fear of the House of Representatives is the beginning of wisdom in government practice, it is not about intimidation, it because they all know that we will do it the way it ought to be done. They are a lot of things we need to do, but believe me sincerely, in the nearest few months, you will start seeing all these things coming up. I just want to beg the people on behalf of my colleagues that we need your supports; we are your representatives in that government and we are both your eyes and ears. For the little we have done, I can assure our people that they have not seen anything yet. This is our country and we won’t go and import outsiders to come and run it for us, we have to do it ourselves. I believe that Mr. President should see as instrument to use to achieve his aim of making Nigeria better. What is your position plans to impeach the President, if the budget is not 100 percent implemented? Concerning the debate on the 2012 budget, that is how well the budget has been executed by the executive. We all felt that as a House, we owe it a point of duty to our people to see that our budget is not just paper documents; we have to see that the budget is executed to the letter. We know that the budget cannot be implemented to a 100 per cent, but at least, let us start targeting up to 80 to 90 something per cent. In that way, even the infrastructural renewal that we are talking about will be easier to achieve. But you are talking about building up your infrastructure, which is what we should do as country, but your budget as at now which is half of the year

is still less than 30 per cent executed, it does not speak well of us. . It is true that as the president he has the right to say this budget should look like this and as a House a too we have the right to say this and this should not be like this because this and this are what we are getting from our constituencies, and that is the law. so if we as a House see that what they are doing is not right we need to talk and say no, we need to say you are not doing the right thing and that what we are doing. As of July, all the revenue generating agencies of the federal government have already generated about N3 trillion, which is N1.7 trillion less the total budget, yet we have plan for deficit, this government has taken the N400 billion to balance the deficit, they have taken it already alone. And yet, you have not released more N400 billion out of the N1.7 trillion Capital budget. We are making more money than we are spending and that is the belief of some of us. But if it is not like that, they should make their account public. The Finance Minister, Ngozi OkonjoIweala, has said that 100 percent implementation is impossible. Would the House still proceed to impeach the President who had explained that he was distracted by Boko Haram sect? With all due respect to the Finance Minister, I am aware she knows we are not buffoons in that House. When we say 100 per cent, we know it might not actually be 100 per cent, but something close to that. If we are all serious and determined to face these issues, let us start from somewhere and believe me sincerely, we will go ahead and start the impeachment process if that target is not met. At least, we all saw it when the Deputy National Secretary of the PDP came out to say it is true that the President has done some wrongs and that the House is right to say they want to start impeachment process. If his party has alluded to that fact, then what are we talking about? We are only trying to help the President to make sure he doesn’t disappoint our people. I am sure that Mr. President will be as surprised as me to know that the budget performance as at today is still about 12 to 18 per cent. On the issue of Boko Haram being a stumbling block to his administration’s performance, when we get to the floor of the House, we will take all issue as they come. There have been clamours for a Sovereign National Conference (SNC) and this seems to have divided the National Assembly. What is your view? It seems some people are not comfortable with that word ‘sovereign’, let us remove the word sovereign if that is what is causing problem. Let’s just have a National Conference. There is no way we won’t come to this table.

Don’t delay restructuring of polity, says Opadokun By Emmanuel Oladesu

HERE is an urgent need for the restructuring of the polity and the only vehicle is Sovereign National Conference, the Coordinator of Coalition of Democrats for Electoral Reforms (CODER), Mr. Ayo Opadokun, has

said. The pro-democracy activist said the plight of ethnic nationalities perceived as second class citizens would only come to an end, if there past deprivations and injustice are redressed. Opadokun urged minorities to intensify the clamour for re-arrangement, wondering why Yoruba in Kwara and Kogi states are still lumped with other ethnic nationalities in the North Central geo-political zone. He said President Goodluck Jonathan has only adopted former President Olusegun Obasanjo’s style by packaging the Belgore Committee, which has not come up with any novel recommendation. Opadokun canvassed an end to shadow chasing and window dressing, recalling that previous plots to foist a third term agenda on the country at the 2005 Constitutional Conference collapsed like a pack of cards. He said it is difficult for the leadership to turn the mere geographical expression to a virile nation, having wasted opportunities to reconfigure the political space. The CODER chief added: “ Why will President Jonathan ignore the popular will of the greatest majority asking ethnic nationalities and other stakeholders to meet in a representative assembly to confront the national question? “Its the unwillingness of our rulers to govern us legally and legitimately that makes Nigeria to be part of the 10 most corrupt nation in the world and also in the company of those with the highest infant mortality rate. How can anyone explain that as much more money is earned by Nigerian government from petrol dollars, the worst their living conditions? “Nigerians are going through a worst deprivations. No doubt with much government yet there is no governance. Every one must be a local council by sinking his own borehole and fixing a generator to power himself to survive”. Opadokun said Justice Alfa Belgore should not have chaired the panel, pointing out that he is one of the leading icons of the Belgore’s dynasty which have usurped a very strategic and historic town, Ilorin. He said Afonja, a rebellious war commander, sold the land to the Fulani dynasty, lamenting that, up to now, the Fulani descendants are still on the conquering offensive. He added: “How will Belgore react to the genuine agitations of Yoruba people of Kwara and Kogi states that they should be packaged together, and with boundary adjustment, they should make the seventh state of the Southwest? Our agitation predate the current wickedness going on in Nigeria. “Since the NPC and NCNC opposed the position of the AG that the report of the Henry Willinkson Commission must be acted upon before the ceremonial independence, other Nigerian leaders have not acted better either. For example, Ayo Opadokun is of the Ibolo stock of the Oyo Yoruba. In fact, historically, Offa is the headquarters of the Ibolo people. Ibolo extends to Iwo in Osun State now being positively and ideologically governed by Ogbeni Rauf Aregbesola. “Furthermore, no Yoruba from Kwara and Kogi states can successfully compete for any socio-political and economic position before he is reminded that he should go to the Southwest. It is painful when people of your nationality tell you that you are a northerner. We are neither birds or animals”. Opadokun maintained that the campaign for a national conference by the Arewa Consultative Forum(ACF), Middle Belt Forum, Ohaneze Ndigbo, Lower Niger Federation, Afenifere, Yoruba Council of Elders (YCE) and other credible Nigerians underscored the imperative of the national debate. He said the conference of ethnic nationalities cannot be hijacked by the government. Opadokun added: “Time is fast running out for government on this matter. NADECO has received a number of delegations which have produced their own constitutional drafts that they will present at the conference. Those who are currently living as second class citizens and those who have been denied their economic rights can no longer watch the usurpers’ a continuous free reign. The current Nigerian state cannot • Opadokun abort an already delivered baby.”

Tinubu, Fayemi: Re-engaging the national question •Continued from page 43

tion of average citizens from the public space, deepening the crisis of legitimacy in the country. “Yet, this lack of legitimacy cuts both ways. When we the people withdraw our trust in leaders or discountenance politicians, we make our democratic institutions less effective and risk making ourselves ungovernable. “For the majority of our citizens – democracy was supposed to bring the end of military dictatorship in form and content; they hoped that it would bring greater involvement of ordinary people in politics, whether in the federal, state and local institutions or even in civil society ones. “They hoped for real and immediate dividends in employment, clean water, affordable shelter, accessible

health care, improved education, reliable and consistent power supply, rehabilitated roads and food on the table. If democracy is not capable of wiping out poverty, curbing corruption, guaranteeing transparency and improving people’s well being and quality of life, it is at best an empty concept, at worst a sham to many. “Poverty and despair, oppression and humiliation, economic and social insecurities are breeding grounds – even if not the only reasons – for violence and conflict. As much as Nigerians want democracy, they also want to see concrete evidence of democracy making a difference in their lives and not just in an instrumentalist sense of embracing freedom. “Understandably, if you make po-

litical discourse more negative as some do – you deliberately turn ordinary people off politics; more people grow cynical and stop paying any serious attention to politics. This experience is not unique to us in Nigeria; in fact it is the crisis that democracy is experiencing all over the world, with low turn out at the polls and scant regard for political leaders. “Yet, if we as citizens choose not to play a part in this process of activism in our communities and our state, we will get the politicians we deserve, allow the hijack of the political realm by special interests, religious bigots and ethnic jingoists only keen in the promotion of their narrow agendas. So, being political is being patriotic and we all must be ready to leave our comfort zones

to embrace active engagement”. He argued that the field must not be left in the hands of those he described as ‘charlatans’. He insisted that when serious people turn away from participating in politics, those who have nothing to offer invariably take over. “It is my belief that committed social activism must help provide the road map that people can employ to help undertake various empowerment projects that will give them control over their own destinies and lives. It is the belief that public office is too serious to be entrusted in the hands of charlatans and that when serious people turn away from politics, the field is left to those who have nothing to offer than crass opportunism and damage to our people’s well being.

“We must – politicians and journalists alike - be determined to ensure that the State empowers rather than dictate, enables rather than control, pushes power down to the people and shares the responsibility of governing with them rather than turn them to supplicants at the table of power wielders”. This is a direct challenge to the Nigerians elite who often than not like to criticise and grumble aloud but would do nothing in the long run to effect a change. In essence, Tinubu and Fayemi are tasking Nigerians to dare to participate in the process of governance than adopt the now famous Sidon look attitude of the late former Attorney General and Minister of Justice Chief Bola Ige during the Gen Sani Abacha transition program.

THE NATION MONDAY, AUGUST 13, 2012

FEDERAL UNIVERSITY OF TECHNOLOGY, MINNA CENTRE FOR PRELIMINARY AND EXTRA-MURAL STUDIES

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THE NATION MONDAY, AUGUST 13, 2012

NEWS

Moving from transaction to transformation A lecture delivered by Ekiti State Governor Dr. Kayode Fayemi at the public presentation of The Nigerian Political Turf: Polity, Politics and Politicians, written by Mobolade Omonijo, on Tuesday, August 7, at the Muson Centre, Onikan-Lagos. •Continued from last Friday rather than tie themselves to the apron strings of power-holders. Power wielders who neither have a track record nor demonstrate a vision that can inspire our people and offer them hope about tangible transformation. This solid ground must be within a larger movement though, one that accommodates the place of political institutions. It should not simply be the celebration of astute individuals as the ultimate panacea to our crisis of governance. The most practical way to link individual choice to collective responsibility is to participate in the institutions that influence our lives. We must ensure that formal and informal institutions are democratised and giving more responsibilities for exercising state power. To do it well, we have to see Nigeria as a permanent enterprise that has to be fought over and restructured in order to provide cover for all Nigerians. Understandably, if you make political discourse more negative as some do – you deliberately turn ordinary people off politics; more people grow cynical and stop paying any serious attention to politics. This experience is not unique to us in Nigeria; in fact it is the crisis that democracy is experiencing all over the world, with low turn out at the polls and scant regard for political leaders. Yet, if we as citizens choose not to play a part in this process of activism in our communities and our State, we will get the politicians we deserve, allow the hijack of the political realm by special interests, religious bigots and ethnic jingoists only keen in the promotion of their narrow agendas. So, being political is being patriotic and we all must be ready to leave our comfort zones to embrace active engagement.

The State of the Polity Excellencies, Distinguished Ladies and Gentlemen, this is why I see the extended focus of the book on the polity quite useful. Important as politicians are, they are just the tip of the iceberg in the democratisation complex. Indeed, genuine democracy ought to rest on a much richer ecology of associational and organisational life and should be nourished and reproduced through every-day struggles of the citizens. Operating in the practical field of politics, I have come to realise how detached many citizens are from the institutions and structures that should ordinarily empower them to engage the State. To enable the citizens to engage, they must feel and actually be empowered to have oversight of their own state agencies and functions. They should be given local input and control in a genuine and open, not tokenistic and patronage-based, manner. Giving communities a role in their own development is the essential part of dismantling the command mentality which plagues our country today. This is why I am not sure that the solution to the current deficit that our polity is experiencing can be solved with this either - or approaches of politicians and non-politicians. For autonomous institutions to play a different role in mediating citizens’ democratic choices, their organic development must be combined in a more nuanced manner and a more systematic way with the use of public and state power. The choice is therefore simple: one can continue to snipe on the fringe and complain that government is not listening to the yearnings of the people. Alternatively, one can stop agonising about missed policy opportunities and organise in a manner that places citizens as drivers of change. Especially in our quest to restore communitarian values and create a future of hope and possibilities for our people.

This is why I am in politics. It is my belief that committed social activism must help provide the road map that people can employ to help undertake various empowerment projects that will give them control over their own destinies and lives. It is the belief that public office is too serious to be entrusted in the hands of charlatans and that when serious people turn away from politics, the field is left to those who have nothing to offer than crass opportunism and damage to our people’s well being. We must – politicians and journalists alike - be determined to ensure that the State empowers rather than dictate, enables rather than control, pushes power down to the people and shares the responsibility of governing with them rather than turn them to supplicants at the table of power wielders. Excellencies, Distinguished Ladies and Gentlemen, there is no doubt that the democracy we are enjoying today continues to be threatened by severe internal contradictions. Nowhere are the limits of the democratic project in Nigeria more apparent than in the question of creating appropriate institutional arrangements for the political accommodation and management of social diversities and difference. By its very nature, democratic politics has radically altered the existing social boundaries and divisions, accentuating hitherto dormant identities and conflicts. The consequences of the relationship between the two have not only posed a challenge to those who seek to understand these dynamics, it has also placed a question mark on the very viability of Nigeria’s democratic enterprise. The lethality of many of these conflicts has been transformed in scope and intensity with the unrestricted availability of small arms and unemployed youths. At the core of the crisis either in the Niger Delta or in the North is the failure of politics to allocate authority, legitimise it, and use it to achieve the social as well as economic ends that conduce to communal wellbeing. The ordinary people, expelled to the margins of politics and economics for so long appear now to be knocking insistently on the gate, demanding to be let in - in the renewed context of democratisation and freedom. Sadly, successive Nigerian governments have seen these communal crises as purely a security matter.3 Given Nigeria’s experience of prolonged authoritarian rule, a very narrow and traditional definition of security persists as the psyche of militarism remains pervasive in the system. There is therefore the need to re-conceptualise ‘security’ in a more responsive direction with a move away from the traditional emphasis on national/state/regime security to a focus on ‘human security’, with an expansion, concomitantly in the scope of the concept from its minimalist meaning (as in physical security) to include access to the means of life, the provision of essential goods, a clean and sustainable environment, as well as to human rights and democratic freedoms. It may well be that as Nigeria purges itself of its military, authoritarian past, the chance of embracing a more humane perspective of security becomes increasingly realistic. In this respect, a complement to massive security and law and order response and containment of conflict ought to be a new political and economic framework, guaranteed by a new federal constitution, that would transfer power, and with it the control of economic resources, to local people allowing them in turn to pay appropriate taxes to federal coffers. This would entail the democratisation of politics in such a way that the ordinary people would become the object and subject

•Gov. Fayemi

of development. In a country where stupendous wealth often lies astride abject poverty, the seeds of conflict are easily sown and understandably germinate faster. Set against the inability of the State to provide basic services for its citizens, new conflicts have manifested through politicised agents who appear to be using the conditions of the poor to address the responses or non-responses of the State to the legitimate yearnings of the people. This comes into clear relief in the context of a democratic transition, in which, conflict becomes an integral, and often inevitable result of power shift. In fact this is because democratisation or at least democratic transition represents in the large part restoration of agency to some actors, but also loss of power by others accustomed to its unaccountable use. There can be no doubt that the transformation and utilisation of objective factors in the exacerbation of conflicts in Nigeria is not unconnected to this fact. Given the above, the key to understanding and explaining conflict in Nigeria, it seems to us, lies primarily (though not exclusively) in specific local dynamics and responses, on the part of the communities and states, to the crisis conditions created by the existing economic and political conditions. It is also in the lack of institutional mechanisms to mediate conflict when they occur. The above, in our view returns our search to the patterns, texture and quality of politics that emerged with political liberalisation and transitions, which in Nigeria’s case reflected a reconfiguration and reassertion of preexisting (though temporarily submerged) structures of national and local power bases, rather than a fundamental transformation. It also involved, in other cases, the activation of alienated new strata – especially amongst the youths, reflecting the dangerous ideological transformations wrought by the combined forces of authoritarianism, economic decline and social marginalisation in Nigeria. Yet, as argued earlier, democracy is much more than just achieving material benefits. But without economic improvement, especially the broadening of the basis of wealth creation and possession, the conditions which threaten democracy and civil peace will continue to worsen. Poverty in Nigeria has not bred radical politics, but radical religious, ethnic and opportunistic agendas. Those who in the last decade would have eked out a living in the informal economy, are beginning to turn to the criminal economy to effect direct redistribution of wealth through the rising tide of terrorism, armed robbery, assassinations and kidnappings which form the backdrop to an increasingly brutalised society. Unemployed youths, when they do

not become criminals, join vigilante organisations which supplant the job of the security forces by dealing out direct justice – at which point this threatens the state’s supposed monopoly on the legitimate use of force? Also, beyond this, they become thugsfor-hire, abused in their vulnerability by their scheming elders, who expend them in gang fights over electoral wards, or dispose of them for a few hundred Naira in order to destabilise towns and cities for sectarian advantage. Nigeria’s youth needs gainful employment. And so do its rural and urban poor, its old, its women, and anyone who does not happen to be lucky enough to have connections to persons of influence. It is in this sense that the current debate on the insurgency known as Boko Haram is itself a debate about the status and quality of democracy in Nigeria; a debate about the future of the country as a united, federal entity. With bombs going off incessantly in the Northern part of the country in particular and an increasing level of panic in other parts of the country, thinking of innovative ways of accommodating social diversity in a democratic frame is a challenge that is at once intellectual and political and it is perhaps the greatest challenge to democratic transition and security in our country today. Consequently, it is my view that we must at least see what is happening in Nigeria today as an outcome of the nature of the country’s democratic transition. It is an argument for treating Nigeria’s democratisation project as a work in progress, not as a condition for hopelessness.

Road Map to Democratic Consolidation: Next Stage of the Collective Struggle Having spent the last seven years in partisan politics and participating in grassroots organising, my belief in the need to take politics beyond political parties is more reinforced. The immediate challenge for all of us is to concentrate on how to rescue our people from bad governance. Unless the critical mass of our people cutting across age, gender, zones and party political affiliations adopt the same positions, with a more clearly defined collective agenda, the current approach to solving our problem will not suffice. There is an urgent need to build coalitions and permanent platform in the public sphere that is beyond party and personalities, but all embracing enough to those who subscribe to the core values of integrity, honesty and dedication to transformation in Nigeria. This all-embracing platform could address a variety of issues, but none is more urgent today than the question of the structure of the Nigerian state. However, the task of such an all-embracing platform must not be limited

to reforming the institutional framework of the State alone. It must also focus on Leadership and Conduct in Public Life; The Constitution and the Legal Framework of the Federal State; Human Rights, Militarism and Civil Violence; Public Sector Management, Transparency and Accountability as well as visible economic progress and wealth creation for the ordinary citizens. This is not an exhaustive list, but it certainly provides civil rights activists, journalists and progressive politicians with a template for democratic renewal. Based on my own trajectory and experience from direct anti-establishment confrontation at the barricades through civic engagement with political actors and public officials to partisan political involvement, I am convinced that the ordinary people in Nigeria are committed to democracy and genuinely want to see it work. Herein lies my hope about the future. This hope is certainly not bleary eyed optimism. It is not even the optimism that the crisis of governance in our land will simply disappear or that journalists will stop being cynical; it is not the hope that political impunity would stop being the name of the game, overnight. I am talking about the hope of our founding fathers in the struggle for independence and freedom. I am talking about their unshaken belief in our inalienable right to rule ourselves. It is the hope that led us to resist military dictatorship in our land because of our belief that another Nigeria is possible – one that will be accountable to its citizens, legitimate in their eyes, transparent and respected around the world; the hope that allows us to hold our heads high, proud of our accomplishments and contributions to humankind; the hope that help is on the way. This hope is alive. I believe we can revive the Nigerian State in a qualitative manner and make democracy more meaningful to our people, provide jobs for the jobless, improve healthcare, modernise agriculture and reclaim our young people from a future of violence, decadence and despair by linking social enterprise, civil society activism to politics and not draw artificial divisions in our promotion of values-driven leadership. Renewing our democracy through the strengthening of institutions and public participation increases our collective capacity to tackle the major problems facing our society – with a corresponding achievement of individual contentment even as we pursue the common good. We need leaders who have a clear vision of the future, who see character as destiny, who advocate valuesdriven reorientation, who don’t just mouth transformation, who are compassionate about changing the decrepit plight of our people, who act with integrity and ethics, who create an entrepreneurial mindset and capabilities in followers, who see leadership as service and responsibility and who are not content with mediocrity. We must move away from transactional politics to transformative leadership. Genuine representatives of our people, not retail traders of the Commonwealth. This is our modest agenda for a collective rescue mission in Ekiti State, and indeed Nigeria. Our effort to change the orientation of our youth and the designs to transform our local economies are already bearing fruits. We are framing a future of virtue couched in values education and embedded in everyday competencies for a generation whose challenges are in a world where they not only are competing at the national level, but puts them against the best prepared of all nations at all times. But we do not claim to have all the answers to the numerous challenges faced by the people. What we do have is an unshaken faith in our people, the determination to restore integrity to politics and the commitment to turn Ekiti into a model for the polity. This is where we are headed and we are convinced we will get there but we must do it within the larger context of transformation in Nigeria. It is the only way to consolidate this democracy and not suffer dire reversals as we perch on this dangerous precipice. Thank you very much for listening.

THE NATION MONDAY, AUGUST 13, 2012

DISCOURSE

Challenges to governance in emerging democracies Text of a paper delivered by Chief Wole Olanipekun, SAN, FCIarb, during the 50th anniversary celebration of the Faculty of Law, University of Lagos (UNILAG) on July 26, 2012, in the school’s auditorium. • Continued from last Friday

N the case of Attorney-General of Ondo State v Attorney-General of Federation, the Su preme Court per Uwaifo JSC held: “As to non-justiciability of the Fundamental Objectives and Directive Principles of State Policy in Chapter II of our Constitution, Section 6(c) (sic) says so. While they remain mere declarations, they cannot be enforced by legal process but would be seen as a failure of duty and responsibility of state organs if they acted in clear disregard of them. The nature of the consequences of which having to depend on the aspect of infringement and in some cases the political will of those in power to redress the situation.” In an attempt to breathe life into the otherwise emasculated provisions of Chapter II of the Constitution the Supreme Court went on to hold: “We do not need to seek uncertain ways of giving effect to the Directive Principles in Chapter II of our Constitution. The Constitution itself has placed the entire Chapter II under the Exclusive Legislative List. By this, it simply means that all the Executive Principles need not remain mere or pious declarations. It is for the Executive and the National Assembly, working together, to give expression to any of them through appropriate enactment as occasion may demand.” —The cases discussed above that the National Assembly can well legislate if in its wisdom it considers it necessary to activate Section 15(2), for instance, so that “national integration shall be actively encouraged, whilst discrimination on the grounds of place of origin, sex, religion, status, ethnic or linguistic association or ties shall be prohibited.” In fact, a similar enactment can possibly be made in regard to section 16(2)(d) [and some other sections I earlier referred to] to ensure “that suitable and adequate shelter, suitable and adequate food, reasonable national minimum living wage, old age care pensions, and unemployment, sick benefits and welfare of the disabled are provided for all citizens.” This decision of the Supreme Court has been the platform of other decisions, which, in my opinion, shows a progressive course towards justiciability of Chapter II, or better still constitutional amendment stipulating enforceability and justiciability in positive terms. In Olafisoye v FRN, the Supreme Court per Tobi JSC held: “Section 6 vests judicial powers on (sic) the courts, which are enumerated in subsection 5. By subsection 6(6) (c) of the section, judicial powers shall not, except as otherwise provided by the Constitution, extend to any issue or question as to whether any act or omission by any authority or person or as to whether any law or any judicial decision is in conformity with the Fundamental Objectives and Directive Principles of State Policy set out in Chapter II of the Constitution. However, the non-justiciability of section 6(6) (c) is neither total nor sacrosanct, as the subsection provides a headway by the use of the words “except as otherwise provided by this Constitution”. This means that if the Constitution otherwise provides in another section which makes a section or sections of Chapter II justiciable, it will be so interpreted by the courts.” Of course, I am not unmindful of other challenges, in terms of locus standi, that a citizen wishing to enforce any of the provisions of Chapter II would face, as the law stands presently. Therefore, the non-justiciability of the provisions of Chapter II of the Constitution is, in my opinion the missing link between power and purpose in Nigeria, ultimately culminating in the ‘governance problem’. Having examined the theoretical underpinning of the ‘governance problem’, I will now go ahead to highlight specific areas of challenge(s) to good governance in Nigeria.

Challenges to good governance In every country, democracy is a “work in progress”. There is no country in the world which can claim that it has the perfect democracy; all have issues which they are seeking to address to a greater or lesser extent. There are numerous challenges facing good governance in emerging democracies in Af-

rica. There is no question that the world has a right to pass judgment on the state of Africa’s governance. But it is Africans ourselves who bear the responsibility for action, including the tailoring of our own approaches to our problems. Space and time will not permit us to discuss all the challenges and problems militating against good governance in Nigeria and Africa. We would however, set out the basic challenges and discuss them anon.

Rule of Law It is well established that the Rule of Law is a cornerstone of democracy and fundamental to the operation of a free and just society.[24] In a lecture I delivered recently I maintained that democracy is spoken of in its ideal form when it is anchored on the Rule of Law. No doubt, democracy and the Rule of Law are like Siamese twins. Adherence to one connotes or dovetails into adherence to the other. In a democracy that is predicated upon a foundation of the Rule of Law, issues such as respect for and obedience to court orders or judgments, respect for human rights, fairness and equality before the law are fundamental. The concept of the Rule of Law derives from the theories of early and ancient philosophers. According to Aristotle, it is anchored on the idea that “The Rule of Law is preferable to that of any individual.” While Bracton in his writing in the 13th Century abhors the divine right of kings and posited that the world was governed by human or divine law also known as natural law. Bracton served as a judge in the years of King Henry III and wrote in his treatise in Latin “Quod rex non debet esse sub homine, sed sub ded et lege” translated as: “That the king should not be under man, but under God and the Law.” The concept of the Rule of Law was propounded further by the writings of Professor Albert Venn Dicey. To A.V. Dicey, the notion of the Rule of Law has three meanings: “First it means the absolute supremacy or predominance of regular law as opposed to the influence of arbitrary power and excludes the existence of arbitrariness of prerogative or even of wide discretion by any authority on the part of the government. English men are ruled by the law and by law alone, a man may with us be punished for a breach of the law but he cannot be punished for nothing else. Secondly, it means equality before the law or the equal subjection of all classes to the ordinary law of the land administered by the ordinary law courts. Thirdly, the rule of law may be used as a formula for expressing the fact that with us the laws of the Constitution, the rules which in foreign countries naturally form part of a Constitution code are not the source but the consequence of the rights of individuals as defined and enforced by the courts.” In his report of 23 August 2004 to the Security Council, the Secretary-General of the United Nations spoke of the Rule of Law as a concept at the very heart of the organization’s mission. He continued: It refers to a principle of governance in which all persons, institutions and entities, public and private, including the State itself, are accountable to laws that are publicly promulgated, equally enforced and independently adjudicated, and which are consistent

•Chief Olanipekun

with international human rights norms and standards. It requires, as well, measures to ensure adherence to the principles of supremacy of law, equality before the law, accountability to the law, fairness in the application of the law, separation of powers, participation in decision-making, legal certainty, avoidance of arbitrariness and procedural and legal transparency. More recently, Lord Bingham encapsulated the core of the idea of the Rule of Law as being “that all persons and authorities within the state, whether public or private, should be bound by and entitled to the benefit of laws publicly and prospectively promulgated and publicly administered by courts.” He identified eight principles as central to the Rule of Law: The law must be accessible and, so far as possible, be intelligible, clear and predictable; Questions of legal right and liability should ordinarily be resolved by application of the law and not by the exercise of discretion; The law should apply equally to all, except to the extent that objective differences justify differentiation; The law must afford adequate protection of human rights; Means must be provided for resolving, without prohibitive cost or inordinate delay, bona fide civil disputes which the parties themselves are unable to resolve; Minister and public officers at all levels must exercise the powers conferred on them reasonably, in good faith, for the purpose for which powers were conferred, and without exceeding the limits of such powers; Judicial and other adjudicative procedures must be fair and independent; and There must be compliance by the state with its international law obligations. The above list addresses a number of factors that are important for the efficient functioning of the system. In our contemporary world, the Rule of Law has virtually become the most popular phraseology of the leaders and the led, whether within a democratic set up or dispensation, monarchical enclave, military or dictatorial junta. The phrase is as popular as democracy, fundamental human rights or the natural rights of man.[33] Arguably, the phrase ‘Rule of Law’ is the most widely used in Nigeria’s present day judicial and political lexicon.[34] Curiously, while we all talk about the Rule of Law, most do not even know what the law is, not to talk of giving effect to its rule. It was the Prophet Hosea that said: ‘My people perish for lack of knowledge.’ Sir William Blackstone at the opening of the Vinerian Lectures enthused in 1758: “For I think it an undeniable position, that a

It is well established that the Rule of Law is a cornerstone of democracy and fundamental to the operation of a free and just society.[24] In a lecture I delivered recently I maintained that democracy is spoken of in its ideal form when it is anchored on the Rule of Law. No doubt, democracy and the Rule of Law are like Siamese twins. Adherence to one connotes or dovetails into adherence to the other. In a democracy that is predicated upon a foundation of the Rule of Law, issues such as respect for and obedience to court orders or judgments, respect for human rights, fairness and equality before the law are fundamental.

competent knowledge of the laws of that society, in which we live, is the proper accomplishment of every gentleman and scholar; an highly useful, I had almost said essential, part of liberal and polite education.” Now, recent events in our polity have shown that even those in authority are ignorant of the very laws, which were supposedly promulgated by them. Sadly, lawyers are not left out of this pervasive ignorance, as most young lawyers fall far short of possessing ‘a competent knowledge of the laws,’ as Sir Blackstone put it. It is only axiomatic to state that one cannot be subject to the Rule of the Law he does not know. Challenges to the Rule of Law in Nigeria have been viewed more generally from the perspectives of adherence to the tenets and principles of federalism and separation of powers, respect for human rights, access to justice, obedience of court orders, fair hearing and compliance with the due process of law. The general consensus is that we still fall short of average standards in these areas. Nonetheless, I believe that there is no gainsaying the fact that we have progressed on a steady, but painfully slow, course from the days of military dictatorship when military decrees, constitution suspension and modification, ouster clauses, retrospective and retroactive legislation and outright arbitrariness were the norm. I will consider briefly here, the Rule of Law from a fresh perspective. Law is generally considered as an instrument for social engineering. In this wise, we can see law as a tool of governance. Law is not an end in itself but a means to an end. Therefore, law is an abstract instrument that produces visible and tangible results. Returning then to my analogy of power and purpose, I will say that the panoply of our laws should be used as a means for the attainment of the provisions of Chapter II of the Constitution. It was observed in a recent article in The Economist that: The rule of law is usually thought of as a political or legal matter ... But in the past ten years the rule of law has become important in economics too ... The rule of law is held to be not only good in itself, because it embodies and encourages a just society, but also as a cause of other good things, notably growth ... The ideals of Chapter II of the Constitution can only thrive when there is economic growth and development. There is, in my view, a direct causal link between the Rule of Law and economic growth and development. We all talk about creating an enabling environment for investment. This invariably refers to peace, security, orderliness, private property rights, enforcement of contracts etc, which are all functions of the Rule of Law. The Fraser Institute has developed an index which measures freedom to do business and market competitiveness.[38] Countries that rank low in respect of the Rule of Law are found to rank low in this index. Similar results showing a direct nexus between the Rule of law and economic development were also found by an index developed by Robert Barro in 1998. In the light of this crucial role of the Rule of Law, we ought to consider with great concern, the many developments in our democratic experiment, which undermine the promotion of the Rule of Law. This takes me to the indispensable role of the judiciary in the promotion and sustenance of the Rule of Law in Nigeria. Echoing the inseparability of the concepts of democracy, and the Rule of Law and elucidating on the role of the judex in this respect, the erudite jurist, Niki Tobi, JCA (as he then was) stated in Onagoruwa v InspectorGeneral of Police: “Nigeria is a democracy and by the grace of the Almighty God it will remain a democracy for all times. The foundation of any democracy is anchored on the Rule of Law both in its conservative and contemporary meaning. Putting it naively, we are paid mainly and essentially to uphold the Rule of Law in the entire polity. And so, once we fail to uphold the Rule of Law, anarchy, despotism and totalitarianism will pervade the entire society. The social equilibrium will be broken. Law and order breaks down. Everybody will be his own keeper and God for us all. We, as judges, cannot afford to see society decay to such an irreparable level. We must rise up fully to our duties by vindicating the tenets of the Rule of Law in our practised democracy.” With regard to the role of the judiciary, I have observed two recent trends, which, in my view, are capable of jeopardizing the enthronement of the Rule of Law. The first is the alarming rate at which our appellate courts, particularly the Court of Appeal, are churning out decisions, which are frontally and irreconcilably in conflict.[41] I talked earlier about ignorance of the law. This problem is accentuated and aggravated by these conflicting decisions, which have left the law in a state of uncertainty and flux. •To be Continued

THE NATION MONDAY, AUGUST 13, 2012

NEWS Group flays minister From Isaac Ombe, Yenagoa

HE National Coalition on Oil Spills and Gas Flaring in the Niger Delta (NACGOND) yesterday flayed Minister of Environment Ms Hadiza Mailafia, for the non-implementation of the United Nations Environmental (UNEP) report on Ogoni land. The minster attributed the fuel subsidy protests as reasons behind the Federal Government’s inability to implement the report. But NACGOND, in a statement, described Ms Mailafia’s explanation as “insensitive, misleading and unacceptable”. “The coalition is deeply concerned that one year after the release of the UNEP report, the Federal Government has not demonstrated enough political will to implement its recommendations,” the statement said.

Police to exhume kidnap victim

T • Delta State Governor Emmanuel Uduaghan, his wife, Roli (second left), and other guests at the outing/thanksgiving service for the funeral of his mother-in-law, Madam Rebecca Ayomike, at First Baptist Church, Warri, ...yesterday.

Banker held for alleged murder A

MALE bank teller has been arrested by the police in Edo State for alleged complicity in the murder of the chairman, Nigeria Union of Teachers (NUT), Esan North East Local Government Area, Daniel Akhibi. Akhibi was assasinated by a six-man gang on August 5 at his residence at Afuda Village in Uromi. It was gathered that the

From Osagie Otabor, Benin

teller was arrested last Monday in his office at Uromi to explain how he paid N20, 000 to the victim, a day after the killing. The victim’s younger brother, Kenneth, said the gunmen came in an unmarked Audi 80 car. Kenneth said the gunmen dragged his brother out of the car and shot him before

driving away in his brother’s Sports Utility Vehicle (SUV). He said he was shocked when his late brother’s phone got a debit alert from the bank, indicating that N20,000 had been withdrawn from his account. Kenneth said the investigating police officer accompanied him to the bank and after quizzing officials

of the bank, the teller was arrested. The deceased was a practicing lawyer and head teacher of the Idumu-Egberemolen Primary School, Uromi. Police spokesman Anthony Airhuoyo could not be reached for comments but police sources said the matter had been taken over by the Criminal Investigation Department in Benin City.

Oyerinde: activist seeks bail

•The late Oyerinde

EGAL fireworks for the release of the Executive Director of Africa Network for Environment and Economic Justice, (ANEEJ), David Ugolor, will begin tomorrow. Ugolor was arrested on July 27 by the police for the alleged murder of Governor Adams Oshiomhole’s Private Secretary, Olaitan Oyerinde.

From Osagie Otabor, Benin

Oyerinde was murdered on May 4 by four gunmen. Ugolor was arrested by the police after a suspect named him as the alleged sponsor of the murder. But the State Security Services (SSS) paraded other suspects, who reportedly confessed to the murder of Oyerinde.

Ugolor is asking for bail, challenging his continued detention by the police and the violation of his rights (in the State High Court, Benin City. His lead counsel, Olayiwola Afolabi, said several lawyers have volunteered to help seek Ugolor’s release. He said all the respondents in the suits have been served.

Rivers Varsity ASUU begins indefinite strike

EMBERS of the Academic Staff Union of Universities (ASUU) of the Rivers State University of Science and Technology (RSUST) in Port Harcourt are starting an indefinite strike today. The strike is to protest the reappointment of the ViceChancellor, Prof. Barineme Fakae, in an acting capacity. ASUU Chairman Dr. Felix Igwe yesterday said there was no going back on the decision. Governor Rotimi Amaechi, last week, inaugurated the

From Bisi Olaniyi, Port Harcourt

reconstituted Governing Council , chaired by Justice Adolphus Karibi-Whyte, who is also the Pro-Chancellor. Amaechi, who was represented by the Secretary to the State Government, George Feyii, said Fakae and members of the governing council had done well, thereby deserving the reappointment. ASUU said: “Following the resolution of ASUU’s RSUST branch at the congress of

August 1, the Visitor and Governor was requested to kindly rescind the reappointment of Prof. B. B. Fakae as the acting vice-chancellor within seven days or members of the union will withdraw their services, as the appointment violated the university’s law. “Considering the failure of the Visitor to rescind the reappointment and act in accordance with the university’s law, members of the unionhave unanimously agreed to withdraw their services, with effect from today,

until the university law is obeyed. “All members have been advised to comply accordingly.” But Commissioner for Information and Communications Mrs. Ibim Semenitari said Fakae’s re-appointment followed due process. Mrs Semenitari insisted that the vice-chancellor has transformed the university, with the ranking by the Nigerian Universities Commission (NUC) improving and RSUST now next to the Lagos State University (LASU).

Investors coming to Nigeria, says Akpabio

GROUP of investors in the Diaspora are expected to come and establish some industries in Akwa Ibom State and other parts of Nigeria. Governor Godswill Akpabio said the investors are interested in the power sector, refinery, Ibaka Seaport and agro-allied industry, among others. Akpabio, last week, attended the Akwa Ibom Economic Summit in Houston, United States, organised by Akwa Ibom Diaspora Network.

He said: ‘’I was amazed by the number of people who showed interest to invest in Akwa Ibom and Nigeria. ‘’We had presentations from people in the power sector. And we also had a group which was interested in building a refinery, a group which was interested in seaport construction. “Some of the people who came were interested in the agro-allied industry. Some in revamping the agricultural sector. ‘’So for us it was an eye

opener yet indeed that Nigeria is seen as an attractive destination, despite the challenges we have today in the country. “I think that if we can have an atmosphere of peace pervading the country, more investors would come and the fortunes of our children would be turned around. “In terms of wealth creation, I think definitely something would come out of the economic retreat’’.

HE Delta State Police Command is to exhume the body of an unidentified woman kidnapped a fortnight ago. Its spokesman, Charles Muka, said two persons have been arrested in connection with the crime. He said the victim, who was dressed in a white garment, was kidnapped at Uzere, Isoko North Local Government on July 31. Muka said the victim was taken to a hideout in Ughelli, Ughelli North Local Government Area belonging to Emma Fole.

From Okungbowa Aiwerie, Asaba

The spokesman said one of the kidnappers allegedly confessed to burying the woman alive in the compound after she became weak. He said the suspect gave himself up because his “soul was troubled”. Muka said the suspect’s confession led to the arrest of Kpoure Lofole. The spokesman said the grave had been identified. He said the body would be exhumed when the victim ‘s relatives have been identified.

JTF warns Rivers community From Clarice Azuatalum, Port Harcourt

HE commander of the Joint Task Force (JTF) Operation Pulo Shield, Brig- Gen Yusuf Tukur Buratai, has warned youths of Bille community in Degema Local Government of Rivers State against attacking soldiers. Brig- Gen Buratai gave the warning when he met with the Bille Council of Chiefs in Bille Town Hall at the weekend. He said: “ Two days ago, JTF received a threat that youths from here are planning to attack our facilities, our boats and specifically those deployed in this community.” The JTF commander urged the chiefs to call the youth to order. He also advised them not to attack anybody. “They should channel their energies for better engagements for national development and if they have any complaint, they should channel it through the appropriate quarters.” The council’s spokesman, Dagogo Temebo, said the threats of the attack could be a rumour from other communities.

Group holds talks

KPE leaders in Delta State are to meet next Sundayto debate the state of development in the kingdom. The leaders are expected to discuss the abandoned Sapele Market, uncompleted Sapele Stadium, the burnt

Orodje Market and the Sapele Polytechnic project. The Secretary-General of Okpe Union Worldwide, Henry Ebireri, in a statement in Lagos, said the leaders are working together to address the challenges of the kingdom.

Council on Niger Delta coming From Kazeem Ibrahym, Uyo

HE Federal Government is to establish a national council on Niger Delta. The Minister of Niger Delta Affairs, Godsday Orubebe, broke the news in Uyo, Akwa Ibom State, at a three- day management retreat. Orubebe said the council would address some of the challenges posed by the multiplicity of development actors and partners working at cross purposes. The minister also said the council would be akin to what obtains in other ministries, such as National Council on Health, Education and Information. Orubebe said the Council would, among other things, strive to enhance information sharing and exchange of ideas among stakeholders.

Aspirants warn against imposition

•Akpabio

SPIRANTS for the forthcoming local government election in Edo State have warned leaders of the Action Congress of Nigeria (ACN) against imposition of candidates. They urged their leaders to appreciate the beauty of transperency and popular democracy which Governor Adams Oshiomhole epito-

From Osagie Otabor, Benin

mised. The aspirants, in a communique after a meeting of the Owan East Chairmanship Aspirant Forum, said their warning was to forestall a possible breakdown of law and order in the locality. They kicked against a meeting held by the ACN leaders where some persons were allegedly adopted.

THE NATION MONDAY, AUGUST 13, 2012

NEWS PDP wins Imo Assembly by-election •Protests, low turnout mar poll From Okodili Ndidi, Owerri

•Wife of Anambra State Governor, Mrs Margaret Obi (left), presenting a cheque to a senior citizen, Mrs. Veronica Ilozo, in Ogidi...at the weekend.

ACN: we’ll take over PDP states

HE state congress of the Action Congress of Nigeria (ACN) in Abia State will hold on September 1. The ward and local government congresses are scheduled for August 30 and 31. The Abia Congress Committee announced this at the weekend during the party’s stakeholders’ meeting in Umuahia, the Abia State capital. The committee is headed by the party’s Chairman in Benue State, Mr. Abba Yaro, and the secretary is ACN National Youth Chairman, Mr. Miriki Ebikibina. The party’s governorship candidate in Abia State last year, Prince Paul Ikonne, was at the meeting. Ebikibina said the poor performance of the Peoples

•Sets dates for Abia congresses •State govt: Orji has performed From Ugochukwu Ugoji-Eke, Umuahia

Democratic Party (PDP) governors has given the ACN leverage to take over PDP-controlled states in 2015. He said PDP governors have brought hardship on the people and the electorate are yearning for a change. At the meeting, a former member of the All Progressives Grand Alliance (APGA), Mr. Pedro Madukwe, defected to the ACN. Madukwe said ACN is the only party that can put things right in Abia. He urged politicians with a sincere desire to serve the

people to join the ACN and save the country from the PDP’s rudderless governance. Ikonne said: “Abians embracing ACN is a testimony that the people are yearning for a change. Having been reduced to the last poverty level by the deceitful PDP administration, the people are anxious for 2015 to come, so that they can vote wisely. “The other day, over 1,000 PDP members defected to ACN and, today, you can see the number of people here. They know ACN is the only party that can give them a good platform because of our internal democracy.” Yaro urged Abians to take their destinies in their hands

when the time comes and vote wisely for ACN, which he said is the only party that can liberate them from their current travails. Ebikibina said another stakeholders meeting would hold on August 25, where final preparations will be made for the congresses. The Chief Press Secretary to the Governor Theodore Orji, Mr. Ugochukwu Emezue, said it would be insincere of anyone to say the Orji administration has impoverished the people. Emezue said: “I do not believe ACN can say such. PDP in Abia state, under Orji’s leadership, has done well. We are not talking about who will take over in 2015, as it is still a long way from now. We are focused on giving our people the dividends of democracy.”

HE Peoples Democratic Party’s (PDP’s) candidate, Chief Eugene Dibiagwu, has emerged winner of Saturday’s Imo State House of Assemble supplementary election in Oguta Local Government Area. He had 15,000 votes. Dibiagwu’s closest rival, Chief Walter Ezenwanne of the All Progressive Grand Alliance (APGA), had 3,401 votes. The Action Congress of Nigeria (ACN) had 520 votes and the All Nigeria Peoples Party (ANPP) had 152 votes. The election witnessed low turnout of voters in the four wards where it was held. Many parties boycotted the election, citing subsisting suits as reasons for their action. The people of the council took to the streets in protest of the Independent Electoral Commission’s (INEC’s) insistence on conducting elections in four wards, despite a pending court order instituted by other parties involved in the election against PDP and its candidate. Shortly after the accreditation of registered voters commenced, the protesters, mainly women and youths, went round the four wards with placards bearing inscriptions, such as “INEC must wait for the completion of all pending court processes” and “We are not part of this fraud”, among others. The youth leader of Mbano Nworie, one of the wards were the election was held, Bright Ihejirika, said except election is conducted in the 11 wards of the council, the result would not be accepted by the people. APGA State Chairman Prince Marshal Okaforanyanwu said he was not surprised that people did not turn out for the election. He said: “The people were not aware that there was an election. You can see the election was a one party affair, because other parties, including APGA, have already gone to court.”

Youths protest killing

OUTHS in Umunze, Orumba South Local Government Area of Anambra State, at the weekend protested the killing of a man simply identified as Ilodigwe (31), alias Iworiwo, by suspected members of a vigilance group. It took the intervention of anti-riot policemen from Ekwulobia and Awka to restore peace in the community. The protesters set bonfires on major roads leading in and out of Umunze. Banks closed for the day and residents hurried into the safety of their

From Odogwu Emeka Odogwu, Nnewi

homes. The youths alleged that Iworiwo was killed by some vigilance group members because he was accused of stealing a mobile phone worth N5,000. The protesters claimed that the deceased was innocent and was framed up by some people. Police spokesman Raphael Uzoigwe confirmed the incident. He said Iworiwo’s suspected killers have been arrested.

Muslims protest demolition From Odogwu Emeka Odogwu, Nnewi

HE Muslim community around the Head Bridge, Onitsha, where the Anambra State Government is currently demolishing illegal structures, has alleged that hoodlums suspected to be members of the dreaded Ndi Mpiawazu group attacked Muslims yesterday. It said the hoodlums allegedly attacked worshippers sleeping in the Mosque in the early hours of yesterday, injuring over 10 people. It was learnt that the armed thugs claimed that they were there to enforce the demolition order of the state government. Police spokesman Raphael Uzoigwe said no one was injured. He said: “What happened was government action and hoodlums were not involved. The government has given the mosque another site to relocate to and they are not the only group affected by the relocation order. “It is not politically motivated as alleged and was done in public interest. It was peaceful and they were given enough notice. Nobody was injured.” Uzoigwe said mosque was among structures marked for demolition by the government to give way for the expansion of the Head Bridge. Yesterday, Muslims protested the mosque’s demolition. Leader of the Hausa and Yoruba communities, Alhaji Habib Farouk, said: “Few hours after our mosque was demolished, our business places were also leveled on the pretence that the Federal Government has taken over the land at the Head Bridge. “The governor said he would give us an alternative site, but he is yet to do so. We see everything as a ploy to sack us from Onitsha. This is the only place where you will find Hausa people doing business in the whole of Onitsha and indeed Anambra State. We urge President Goodluck Jonathan and the Minister of Works to intervene, because we have no place to park and load our trucks and do other businesses.”

Govt pays N325m for Second Niger Bridge

•From left: Chief Okwesilieze Nwodo, Senator Nnamdi Eriobuna, Chief Inyama and Chief Orji Orizu at the inauguration of the Constitution of the Southeast Forum (SEF) in Enugu...last week. PHOTO: OBI CLETUS

HE Federal Government has given a firm, Messrs Roughton International Limited, N325 million to kickstart the construction of the Second Niger Bridge in Onitsha, Anambra State. Works Minister Mike Onolememen announced this in Lagos at the weekend.

By Okwy Iroegbu-Chikezie

Onolememen said the bridge tops the list of projects to be executed by the Subsidy Reinvestment and Empowerment Programme (SURE P). He said: “The over N30 billion budgeted for the bridge in SURE P is the counterpart funding.”

THE NATION MONDAY, AUGUST 13 , 2012

NEWS Aliyu alerts public to hacked e-mail account From Jide Orintunsin, Minna

NIGER State Governor Mu’azu Babangida Aliyu at the weekend said he had fallen a victim of e-fraud. He raised the alarm that his e-mail account had been hacked into by unidentified persons. A statement yesterday by his Chief Press Secretary, Danladi Ndayebo, said Aliyu’s e-mail account had been hacked by unknown persons who used it to send messages to many of his contacts soliciting assistance from them. According to Ndayebo, the message sent out by the hackers to Aliyu’s contacts had the subject: ‘Urgent assistance’, and it reads: “I didn’t tell you about our travel to Spain for a short vacation, but unfortunately we were robbed at the hotel where we lodged along with other folks. We didn’t bring our phones here and the hotel telephone lines were disconnected during the incident. So I have access to only e-mail. “Please I’m going to need some sort of loan from you for us to relocate to another hotel close to the embassy and that to get us another flight ticket…Please, let me know if you can help us out. I’m looking forward to hearing from you.” Describing the hackers as unscrupulous, Aliyu said he neither sent nor authorised anyone to send out such messages on his behalf. The governor asked those who have received the ludicrous solicitation to ignore it. He thanked Nigerians who brought the issue to his attention.

Northern CAN: Jonathan has failed Nigeria

HE Christian Association of Nigeria (CAN) in the 19 northern states and the Federal Capital Territory (FCT) yesterday decried the failure of the President Goodluck Jonathan administration to check the Boko Haram insurgency. The northern CAN was reacting to President Jonathan’s statement that the Boko Haram insurgency has not been checked because “members of the sect are our siblings and you cannot ask the Army to wipe out your family.” In a statement made available to The Nation in Kaduna, CAN said “Nigerians now know why the activities of the sect have continued unabated.” The statement signed by the northern CAN spokesman, Sunday Oibe, said the position of Jonathan on the activities of Boko Haram shows that the nation has a big problem It noted: “The president seems not to understand that

From Tony Akowe, Kaduna

the aim of the sect is to destabilise the country and undermine his administration.” CAN said it was shocking that President Jonathan refused to deploy the military to deal with terrorist groups making life unbearable for Nigerians and threatening the corporate existence of the nation. It accused him of protecting the group at the expense of Nigerians who are killed on a daily basis. While urging Nigerians to be careful about the type of leadership they vote for in future, CAN said: “The questions we want to ask Mr. President are these: Are those being killed by the sect, particularly Christians, not members of the Nigerian family he is talking about? Is he now saying Boko Haram members are sacred cows? “What he is telling us now

is that there is nothing he can do about it. But we know that the Federal Government has the power to stop the cruelty being unleashed on Nigerians. It is obvious that the President is willing to shield criminals. “Nigerians can recall how former President Olusegun Obasanjo reacted when the Niger Delta militants attacked soldiers at Udi. Though the militants were asking for their legitimate right, Obasanjo dealt with them for resorting to criminality while agitating for their right. “No country in the world will allow its soldiers, trained to defend its territorial integrity, to be killed by a gang of criminals without reacting. Nigerians can also recall that in Zaki-Biam, Benue State, the same Obasanjo sent troops to deal with the people for allegedly killing soldiers. “Now on a daily basis, soldiers, police and other secu-

rity personnel are killed by Boko Haram members and all the President could tell us is that these murderers are members of the Nigerian family and he cannot mobilise the army to deal with them. “We know that no responsible family can condone any form of crime, let alone murder and destruction of property. The President should tell us the offence of Christians who have been killed by Boko Haram members who have vowed that they would continue to attack government functionaries, security agencies and Christians. “So the President is not bothered about the killing of Christians and other Nigerians! Is it because Christians are not members of this family he is talking about? So the security agents who are being killed by the Boko Haram are not members of this family? “Jonathan has failed Christians, he has failed Nigerians

Mpape: Falana urges minister to respect court order From Kamarudeen Ogundele, Abuja

‘Unemployment not cause of violence in North’ From Tony Akowe, Kaduna

THE 19 Synod of the Kaduna Diocese of the Church of Nigeria, Anglican Communion, yesterday faulted claims in many quarters that unemployment, economic backwardness and low level of education were responsible for the crisis in the region. The Synod warned against the slide of the nation into disintegration, saying Nigerians must halt the chaos and live in peace. In a communiqué at the end of the Synod signed by the Diocesan Bishop, Rev. Josiah Idowu-Fearon, it asked government at all levels to implement the relevant reports and recommendations of the previous panels, especially the Sheik Lemu Panel on the postpresidential election violence. It urged the northern elite to concentrate their energies on the development of the region, adding that government must adopt a mechanism for addressing the grievances arising from perceived wrongs as well as tackle insecurity by generating public confidence in the nation’s security agencies. The government, it said, must tame the vices of corruption and materialism.

and should resign because by his statement, it is clear that he is not capable of tackling the Boko Haram insurgency. “Look at the reasons the Federal Government gave for insisting that the Boko Haram should not be branded as a terrorist group during the visit of the American Secretary of States, Hilary Clinton. “It said if the Boko Haram sect was designated as a terrorist group, the country might be sanctioned, which would hurt Nigerians, scare away investors as well as lead to visa restriction and subject Nigerians to maltreatment at airports all over the world. “But are we not hurt already? Are Nigerians not suffering? How many investors are coming into the country? Many business premises in Yobe, Maiduguri, Kano, Kaduna and Jos have been closed down. Nobody is coming up North to establish any business. People are selling their houses and relocating from the North. Our churches are being closed down on a daily basis. So what investor is the government talking about?”

•Commander, 22 Armour Brigade, Brig.-Gen. Saidu Bello (l), discussing with the Deputy Commandant, Nigerian Army Peacekeeping Centre, Brig.-Gen. Abubakar Tarfa, during the graduation ceremony of the 195 battalion pre-deployment training, at the Nigerian Army Peace-keeping Centre, Jaji, Kaduna. PHOTO: NAN

ACN decries Kwara’s action on Belgore’s free lessons T

HE Action Congress of Nigeria (ACN), Kwara State chapter, yesterday dismissed as “repressive, anti-people and short-sighted”, the decision of the Peoples Democratic Party (PDP)-led government to stop the free holiday classes sponsored by ACN leader Mohammed Dele Belgore (SAN). ACN Chairman Kayode Olawepo said in a statement in Ilorin that the action of the government has plunged its rating downward among the masses who are the benefi-

ciaries of the kind gesture. “What this disgraceful, short-sighted and repressive act shows is that the government is not interested in the empowerment or development of its youth, but only interested in saving its own skin,” he added. The statement reads: “We have read the lame excuse the PDP government gave to justify what public reactions have shown to be the reactionary behaviour of

this administration. How low is this government prepared to go in the name of politics by attacking the MDB Solidarity Team and threatening schools that provide their facilities? “The effort by the MDB is not intended and cannot replace the educational facilities provided by the government. What Belgore is doing is giving support through extra lessons for candidates sitting for the Unified Terti-

ary Matriculation Examination (UTME), Senior School Certificate Examination (SSCE) and others. “Government should encourage individuals and institutions who help in organising the lessons. Nothing should get in the way of uplifting the education of our children. “No right thinking government concerned about the future of its youths would hinder their progress. This should be the number one priority of any dynamic government.”

Stop linking us with Boko Haram, say Fulani herdsmen

ULANI herdsmen, under the aegis of the Meyyetti Allah Cattle Breeders Association (MAKABA), Kogi State chapter, have urged the government and security agencies to stop linking them with the Boko Haram sect. The Chairman of the as-

From Mohammad Bashir, Lokoja

sociation, Alhaji Shuaibu Sule Idrisa, who spoke at a stakeholders’ meeting in Lokoja, lamented the illtreatment meted out by the security agencies. He said: “Once there is robbery in the state, the next target are the Fulani. They

will arrest our kinsmen and take bribe from them to bail them out. “We appeal to the government to treat us as citizens, not as criminals. Is it because we have no one at the top to fight for us?” Idrisa said the Fulani should not be victimised again or else they would be

forced to withdraw their livestock from the market. “We live in the forest with our families. We don’t know what is happening in the town. Once there is crisis, the next target are the Fulani. This is unfair,” he added. The association enjoined the government to carry it along in its policies.

PAPE residents in the Federal Capital Territory (FCT) have urged the FCT Minister, Senator Bala Mohammed, to respect a court order asking the FCT Administration not to take steps against their suit. Five residents, Messrs Jacob Obor, Olasogba John, Israel Awoyemi, Young Okeugo and Macos Gabriel suing on behalf of themselves and other residents are challenging the plan by the FCT Administration to demolish their houses. In a letter by their counsel, Mr. Femi Falana, the residents drew the attention of the minister to the August 3 ruling of Justice Abubakar Kutigi of an Abuja High Court sitting in Bwari. The letter is coming on the heels of a statement attributed to the minister. He was said to have vowed to go ahead with the demolition. Falana reminded him that the court asked him not to do anything that would destroy the substance of the case before the matter was determined. He said: “In his ruling, the judge at page 24 reiterated the fact thus: ‘It is now trite principle of general application that parties, including government agencies or institutions such as defendants, have no right to take matters into their hands once a matter is in court. ‘This is a very sound principle on which the rule of law and the integrity of the judicial process is predicated. ‘It behoves on all parties therefore to ensure that they do nothing that would have the effect of hoisting on the court a situation of complete hopelessness, any order the court may make when the matter is finally determined.’”

THE NATION MONDAY, AUGUST 13, 2012

NEWS

el-Rufai is peddling falsehood, says Okupe

ENIOR Special Assistant to the President on Public Affairs, Dr Doyin Okupe, yesterday faulted Former Minister of the Federal Capital Territory, Mallam Nasir elRufai’s criticism of the government. The presidential aide described el-Rufai’s submission as “laced with lies not supported by facts on ground and are outright falsehood”. A statement by Olusanya Awosan, his Media Director, said: “It is unfortunate that Dr Okupe’s call for unified disposition in the face of present challenges has been misconstrued by the ‘patriot’ Mallam el-Rufai and presented as “outsourcing governance” or “begging the opposition for ideas.” “We sympathise with Mallam el-Rufai, because he is obviously constrained and motivated by the prevailing, fractionalised elite structure in our country; hence his unfortunate misinterpretation of Dr Okupe’s patriotic call to national duty. “Our brother should not

From Vincent Ikuomola, Abuja

hide his political frustration and deep-seated hatred propelled by other reasons best known to him, in his attempt to demean this administration and discount its unwavering commitment to progress and development.” He added: “This administration is not interested in hoodwinking Nigerians with the propaganda of fleeting performances, but even within this short period of its existence, and in spite of incessant attacks from certain quarters to frustrate and distract government, President Goodluck Ebele Jonathan’s administration has engaged in concrete and sustainable socio-economic deliverables that will transform the Nigerian society’. Okupe said in the power sector, the country has witnessed a steady power supply because of the investments there. “This administration met 10 abandoned NIPP projects and

has successfully revitalised all. More importantly, they are all within the range of 95-100 per cent completion stage and are awaiting gas supply for which government has taken very concrete steps to address. Government has improved the power generation from under 3000mw in 2011 to 4300 mw by August 2012. Various communities across Nigeria can attest to the fact that steady power supply is gradually being restored” he said. On Agriculture, Dr Okupe said: “Government has elevated the living standards and income of farmers and rural dwellers through the free distribution of several millions of improved seedlings including cotton, sorghum, rice and cassava. Today, Nigeria is the world’s largest producer of cassava and is on its way to becoming the largest exporter of cassava products globally. The agricultural transformations agenda will double cocoa production from its present 250,000mt to 500,000mt /annum by the year 2015".

‘Embrace peace not terrorism’

HE National Chairman of Unity In Di-

•el-Rufai

The presidential aide also noted that with the achievements recorded by the administration of Dr Goodluck Jonathan within the short time in office, ‘all the fallacies, deceits, misinformation and disinformation about incompetence and non-performance of the President Goodluck Jonathan’s admiration are unfounded. “Irrespective of what the detractors of this administration want the general public to believe, the truth and indeed the absolute truth is that this government is alive to its responsibilities, effective, actively performing and responding to the needs of the Nigeria people.”

Fraud: Court jails graduate for 28 years

HE Economic and Financial Crimes Commission (EFCC) yesterday said Justice Sa’ad Mohammed of a Gombe State High Court, at the weekend sentenced a 34-yearold graduate of Quantity Surveying, Oluwaseun Abatan, to 28 years imprisonment. According to a statement by the Head of Media and Publicity of the EFCC, Mr. Wilson Uwujaren, the convict, who was first arraigned on June 18, 2009 was found guilty on four of the eight-count charge of forgery and obtaining by false pretence.

From Yusuf Alli, Abuja

The statement said: “The convict was arrested in 2008 following intelligence report on the illegal activities of Guarantee Investment Network International Limited (GINI), which was defrauding unsuspecting members of the public while masquerading as Real Estate Developers and Business Managers. “Abatan, who claimed to be the General Manager of the outlet in Gombe, lured innocent persons to deposit sums of money with the promise of

earning interest of 40 percent within six weeks on such deposits in the short term, and acquisition of plots of land or houses in the long term. “However, investigations revealed that GINI Limited which has its head office in Lagos was incorporated as a trading company that sells mostly domestic consumables. “But unknown to the company, Abatan had devised means of using its name to carry out fraudulent activities. He collected a sum of N2, 505,700 from a total of 487 persons that were registered by him.

Sacked MD: Court dismisses Trust Fund objection

HE National Industrial Court has dismissed an objection by the Trust Fund Pensions Plc, seeking to stop the suit by its sacked Managing Director, Mr. Bernard Nkem Ekwe, who is challenging his removal from office. The court had earlier stopped the pension company from appointing a new managing director pending hearing and determination of the suit. Justice A.O. Shogbola, while dismissing the objection, said the court was empowered to

From Kamarudeen Ogundele, Abuja

hear cases arising from disputes between employees and employers. He said: “Following a careful perusal of the claims, it is very clear that the claimant is challenging his removal as the managing director of TrustFund Pensions Plc by the defendants. “From the facts available to this court, the claimant was an employee of the defendants before his employment was brought to an end abruptly.

“This means that the issue involved in this matter has to do with employment or nonemployment of the claimant.” In it’s preliminary objection, Trust Fund had challenged the jurisdiction of the court to hear the case. It contended that only the Federal High Court has the jurisdiction. But Mr.Adeyemi Pitan who appeared for the plaintiff said that the Federal High Court lacks the jurisdiction to hear cased bordering on contractual relationship between an employee and an employer.

State Police: Senator seeks referendum option Continued from Page 4

state police have the power to investigate crimes limited to their jurisdiction and co-operate with the federal police on a need-arise basis. “In India , the states have their independent police forces headed by a director general of police and in fact, about 30 per cent of the Indian Federal Police Service is recruited from the state forces. “ Pakistan has one federal and four provincial police organisations with clearly defined jurisdictions and sets of offences that they cover. “Argentina has federal and 23 provincial police forces “Most routine police functions in Argentina are carried out by the provincial police which are the equivalent of the state police that Nigerians are asking for. “It’s only in Buenos Aires (the

capital) which is the equivalent of our Federal Capital Territory (FCT) that the federal police act as local police. “In many of these federations, there are not just federal and state police, they also have county or district police as well as municipal police authorities. “In most of the countries, the federal police is even not a single behemoth as we have in Nigeria . “They are further disaggregated into smaller, more nimble and specialised investigative agencies responsible for specific areas of activities such as interstate and federal crimes, intelligence, drugs and narcotics, transport, railways, coastal and naval police, airport and others. “They also have tactical forces to deal with special infractions such as terrorism.” The Senator said the oppo-

sition against state police calls for more work and more consultation “so that we don’t dance to the tune of gatekeepers who are interpreting a completely different music in the ears of the people in the name of governors or whatever they are called.” Explaining his surprise about the position of northern governors he said if there were any part of the country where state police is supposed to have immediate impact and result, it is in areas where there are subsisting security challenges. “So I am quite surprised and I kept asking myself, what could be the reason? “I hope it is not a case of some futuristic warehousing of federal powers in anticipation of some future presidential ambition that wants the full work of existing presidential powers when they come to that office.”

“During trial, directors of the company testified that the company had no interest in real estate, that they did not appoint Oluwaseun Abatan as General Manager of the company’s Gombe outlet. They claimed that the flyer used by Abatan to promote his fraudulent business was different from that of the company. “In his judgment, Justice Mohammed held that the prosecution had proved its case against the accused person beyond all reasonable doubt on four of the eight-count charge and sentenced him to seven years on each of the four-count charge without any option of fine.

versity Initiative (UIDI), Rev. Benneth Mozie, has appealed to youths to shun all forms of terrorism and embrace peace, unity and tranquilly. The cleric, in a statement in Abuja yesterday, condemned the rampant bombings and killings in some parts of the country. He appealed to the perpetrators of violence to have a change of heart in order for the country to move on. He said: “Nigerian youths should take advantage of every programme that runs in concert with President Goodluck Jonathan’s agenda, which will help the youths contribute immensely to nation development. “All Nigerians should exhibit the spirit of nationalism and patriotism, youths should not be deceived by unscrupulous elements that use them for selfish reasons. These people take advantage of the security situation

From Franca Ochigbo, Abuja

in the country and plant ill feelings in their hearts against ethnic and religious groups. “It has become more evident that the hostilities of the terrorist groups operating mostly in the north are neither ethnic nor religious, but complexity of political and other considerations which the government is tackling,” he stressed. Rev Mozie said Unity in Diversity Initiative is to promote national co-hessians and peaceful co-existence in Nigeria. The objective is to promote love, trust and mutual respect in order to promote international relationship and stable democracy. It is also to impact knowledge and skills to vagrants and the restive for them to contribute toward national growth and development. Unity in Diversity Initiative will also be organising soft loans and credit facilities for those in need, he said.

THE NATION MONDAY, AUGUST 13, 2012

FOREIGN NEWS US Navy ship collides with oil tanker A U.S. Navy guided missile destroyer was left with a gaping hole on one side after it collided with an oil tanker early yesterday just outside the strategic Strait of Hormuz. The collision left a breach about 10 feet by 10 feet (three by three meters) in the starboard side of USS Porter. No one was injured on either vessel, the U.S. Navy said in a statement. The collision with the Panamanian-flagged and Japanese-owned bulk oil tanker M/V Otowasan happened about 1 a.m. local time. Photos released by the Navy showed workers standing amid twisted metal and other debris hanging down from the hole. The cause of the incident is under investigation, the Navy said, though the collision was not “combat related.” There were no reports of spills or leakages from either the USS Porter or the Otowasan, the Navy said. Navy spokesman Greg Raelson said the destroyer now is in port in Jebel Ali, Dubai. “We’re just happy there were no injuries,” he said. “An investigation is under way.” The USS Porter is on a scheduled deployment to the U.S. 5th Fleet, which is based in Bahrain, an island nation in the Gulf, near Iran. The Strait of Hormuz, at the mouth of the Gulf, is a crowded and tense waterway where one-fifth of the world’s oil is routed. Tensions have risen there over repeated Iranian threats to block tanker traffic in retaliation for tighter sanctions by the West. The sanctions are aimed at persuading Iran to abandon its uranium enrichment program, so far without success.

Egyptian leader orders army chief to resign E GYPTIAN President Mohammed Mursi has ordered the retirement of the powerful head of the country’s armed forces, Field Marshal Mohamad Hussein Tantawi, a presidential spokesman has said. He also said a constitutional declaration aimed at curbing presidential powers had been cancelled. Mursi, who was elected in June, is a member of the Muslim Brotherhood. Relations between Islamists and the military have been increasingly tense since the fall of President Mubar-

ak. “Field Marshal Hussein Tantawi has been transferred into retirement from today,” presidential spokesman Yasser Ali said in a statement. He added that a career army officer, Gen Abdel-Fattah al-Sisi, would replace Field Marshal Tantawi as both armed forces chief and defence minister. Chief of staff Sami Annan is also retiring, the spokesman announced. Field Marshal Tantawi, 76,

has not yet indicated whether he accepts the moves. However Gen Mohamed el-Assar, a member of the Supreme Council of the Armed Forces (Scaf), told Reuters news agency that the decision had been “based on consultation with the field marshal, and the rest of the military council”. BBC Middle East correspondent Kevin Connolly says the dismissal of senior military officers will be seen

Mexican mayor-elect killed

HE mayor-elect of the city of Matehuala in the Mexican state of San Luis Potosi has been killed. Edgar Morales Perez was shot dead along with his campaign manager, Francisco Hernandez, when gunmen opened fire as they drove home from a party. One person survived the attack, the motive of which is unknown. San Luis Potosi has been spared much of the violence which more northern states

have seen, but last week 14 bodies were dumped by a main road. Morales Perez, from the Institutional Revolutionary Party, or PRI, had been elected on 1 July. A spokesman for the PRI condemned the murder and demanded that the authorities did their utmost to solve the crime. The survivor of the attack, who has not been officially named, said she could not identify the attackers. On Thursday, police found

the bodies of 14 people in an abandoned van outside the city of San Luis Potosi. It was the first time such a large number of bodies had been dumped in the state in recent years. The vast majority of killings in Mexico have been committed in the northern state bordering the United States. Police say they are mainly drug-related with criminal gangs fighting each other for control of smuggling routes into the US.

by Egyptians as a decisive move in a struggle for real power between the country’s newly elected politicians and the generals who have exercised power for many years. As head Scaf, Field Marshal Tantawi became Egypt’s interim ruler after President Hosni Mubarak was ousted following mass protests in February last year. Under the interim constitutional declaration issued by Scaf before Mursi was sworn in, the president could not rule on matters related to the military - including appointing its leaders. The council also dissolved parliament, which is dominated by the Muslim Brotherhood. Tensions between the presidency and Scaf were further exacerbated after Islamist militants in the Sinai peninsula killed 16 border guards last week, in a raid that embarrassed the military. The president, whose own Brotherhood movement renounced violence long ago, sacked Egypt’s intelligence chief and two senior generals following the attack.

Romney, Ryan tour key states THE US Republican presidential candidate, Mitt Romney, and his running mate are touring key states that they need to win in November’s election. Paul Ryan was announced as Romney’s choice for vicepresident in one such state, Virginia, on Saturday. The pair are going on to tour North Carolina, Florida, Ohio - and Ryan’s home state of Wisconsin. Ryan vowed to save the country from “high unemployment, declining incomes and crushing debt”. But Obama’s campaign has said Ryan stood for what they called “flawed” economic policies that would repeat “catastrophic” mistakes. Ryan is chairman of the House of Representatives budget committee and authored a controversial alternative budget to counter President Barack Obama’s plans in 2011 and 2012. Romney, 65, formally unveiled his 42-year-old running mate before hundreds of cheering supporters at the retired battleship USS Wisconsin in Norfolk, Virginia.

•A little girl crying over the loss of her family...yesterday.

PHOTO: AFP

Iran begins relief efforts after earthquakes

ELIEF operations are under way in Iran after two strong earthquakes in the north-west left at least 250 people dead and more than 2,000 injured. The 6.4 and 6.3 quakes struck near Tabriz and Ahar in in East Azerbaijan province on Saturday afternoon, followed by dozens of aftershocks. More than 100 villages suffered damage - thousands of people spent the night in emergency shelters or in the open. Relief agencies are providing survivors with tents, bread and drinking water. The BBC’s Mohsen Asgari in the capital Tehran says

hundreds of people were rescued overnight, but that the aftershocks had made the operation exhausting. By midday yesterday, Deputy Interior Minister Hassan Ghadami said “all those under debris have been rescued and the quake-stricken people are now being provided with their basic needs”. Our correspondent says the operation could be completely quickly because villagers knew each other well so knew where to search, and because the houses were small. The towns of Haris and Varzaqan were also among those hit and one resident of Tabriz told the BBC: “The

quake has created huge panic among the people. Everyone has rushed to the streets.” But local officials said all the deaths have been in rural areas, not in the main towns and cities. The official Fars news agency reported that about 110 villages had been damaged. At least were four totally flattened and 60 others sustained extensive damage. “This village is a mass grave,” said Alireza Haidaree, who had been searching for survivors in Baje Baj village. “There are so many other villages that have been

completely destroyed,” he told AFP. Reports said rescuers attempting to contact remote villages had to do so by radio as many phone lines were cut off. A resident of Tabriz told Reuters that a local hospital he visited to give blood was struggling to cope with the number of injured people, most of whom had been taken there by their families. Arash, a resident of Ahar, told Reuters the hospital there was full, and that the road between the two towns was jammed with people trying to find medical help.

Italian airline suspends flights

N Italian cashstrapped budget airline, Wind Jet, has suspended all its flights, leaving hundreds of passengers stranded. At Rome’s Fiumicino airport, some 200 Israeli nationals - who had been due to fly to Tel Aviv - spent the night at the terminal. Another five flights to destinations across Italy were cancelled as well. The Sicily-based firm is now close to losing its operating licence after takeover talks with Alitalia failed. Further chaos is expected as some 300,000 passengers across Italy have booked tickets with Wind Jet in coming weeks. Alitalia - Italy’s national airline - says it will help Wind Jet passengers to find alternative flights, but only on payment of supplements. The country’s aviation authorities have set up a crisis centre to help stranded passengers at the beginning of the busiest holiday week of the year.

Climate change may cause frog disease

ORE changeable temperatures, a consequence of global warming, may be helping to abet the threat that a lethal fungal disease poses to frogs. Scientists found that when temperatures vary unpredictably, frogs succumb faster to chytridiomycosis, which is killing amphibians around the world. The animals’ immune systems appear to lose potency during unpredictable temperature shifts. The research is published in Nature Climate Change journal. Chytridiomycosis, caused by the parasitic fungus Batrachochytrium dendrobatidis (Bd), was identified only in 1998. It affects frogs and their amphibian relatives - salamanders, and the wormlike caecilians - and has caused a number of species extinctions. “I’m not convinced that the effect we’ve discovered could be considered responsible for declines or extinctions in the ways way that the spread of Bd can be considered responsible,” said Thomas Raffel, lead scientist on the new research. “It might be, however, that climate change has sped up the decline or extinction after the parasite arrived,” the Oakland University researcher told BBC News. Over the years, various teams of scientists have conducted a whole raft of experiments to find, for example, whether Bd is more active in warm or cold temperatures. Bd spores in microscope image Bd spores spread from the skin of amphibians The new research looked at what happens in a more real-life situation - when chytrid fungus is actually on a vulnerable frog.

THE NATION MONDAY, AUGUST 13, 2012

SPORT EXTRA

Mikel, 3.5m Chelsea fans in Nigeria C to celebrate CL triumph HELSEA fans in Nigeria, in collaboration with Super Eagles’ midfielder, Mikel Obi is planning a grand party in celebration of the triumph of the coveted UEFA Champion trophy last season. The party tagged “The Chelsea FC Million- Man Grand Party and Gala Night” is slated for the Teslim Balogun Stadium, Lagos, and powered by Pelican Breed Nigeria Limited.

By Innocent Amomoh

With the date marked for September 2, 2012, the group intends to seize the opportunity of the FIFA free-week to ensure that the Nigeria international and some of his teammates storm the country for the epic event. Described as the first of its kind in Africa, while addressing the media in Lagos at the weekend, the Chief Executive

•Other Chelsea players may storm Nigeria Officer, Pelican Breed,Paul Sambo said the essence is to also celebrate the role of Nigeria’s Mikel Obi, in the history- making feat. “The Nigerian Celebration

has a national angle to it. Our own John Mikel Obi was on the pitch for every minute of this historic competition and did not disappoint. As a mat-

Rivers bid to host 2013 PASAN Games

HE Speaker, Rivers state House of Assembly, Rt. Hon. Otelemaba Amachree has revealed plans by the state to bid for the next edition of Parliamentary Staff Association of Nigeria (PASAN) games coming up in 2013. Speaking at the reception ceremony of the Rivers PASAN athletes who put up wonderful performance at the recently concluded 2012 edition held in Ogun state, the speaker who was thrilled by output of his athletes who made a debut appearance this year said he

From Florence Nkem Israel, Port Harcourt

is motivated to bid for the next hosting and would give all necessary support to ensure that the state gets the right. He also made a promise to motivate the state team with a bus despite financial rewards and a resounding reception given the team on arrival from Ogun 2012. Speaking with the Press after the reception which took place at the Assembly complex auditorium, the Clerk of the Rivers state

Man City defeats Chelsea to lift Community Shield

ANCHESTER City's French midfielder Samir Nasri celebrates scoring the third goal during the FA Community Shield football match between Manchester City and Chelsea at Villa Park in Birmingham, on August 12, 2012. Manchester City underlined their determination to retain the Premier League title as the champions warmed up for the new season with a hardfought 3-2 win over 10-man Chelsea in the Community Shield on Sunday. Roberto Mancini's side will kick off their title defence against Southampton next weekend and this was the ideal preparation as City came from behind to win in a fiery encounter including a red card and eight bookings at Villa Park. Fernando Torres had given Chelsea the lead in the 40th minute, but the dismissal of the Blues' Serbian defender

Branislav Ivanovic moments later proved crucial. City duly capitalised with fine strikes from Yaya Toure and Carlos Tevez soon after half-time turning the game around before Samir Nasri got their third on 65 minutes. Although Chelsea substitute Ryan Bertrand pulled one back 10 minutes from the end with his first goal for the club, City held on to record their first win in the traditional curtain raiser to the English top-flight season since 1972. "It was a great day for the club again. It doesn't matter what the trophy is, we'll celebrate it," City captain Vincent Kompany said. "For the red card, to be honest I was far from the action, all I can say is before that we had more possession anyway. "But it will be a tough league this season because you could see the quality Chelsea have. If we can improve on last season I'll be very happy."

14TH MILO SECONDARY SCHOOL BASKETBALL CHAMPIONSHIP

St Augustine emerges winners

T was basketball at its best at the weekend when St Augustine College, Ebonyi state, defeated Ahmadiya Grammar School, Kano state 58-48 point to clinch the coveted trophy of the boy’s final at the 14th Milo Basketball Championship. The Ahmadiya lads started on a promising not in the first quarter, dictating the pace, but they soon succumbed to the fighting spirit displayed by the students from St Augustine during the second at third quarters respectively. Fighting their way through the keenly contested encounter, players of the St Augustine College

•Defeats Ahmadiya 58-48 showed class in all the departments of the game. Meanwhile, in the girls’ category, St Jude’s Girl Secondary Amarata, Bayelsa state, defeated Asaba Girls Gramar School, Asaba, Delta State, 30-25 points to emerge winners. While St Augustine went home with a cash prize of N150, 000, the second placed team, Ahmadiya College got N120,000 for their efforts. The third placed team, however, got N100,000. Stanley Eze of St Augustine College was named tournaments most valuable player (MVP).

house of Assembly, Sir Emma Ogele described the performance of the athletes in Ogun state as a creditable one. "It is historic because ever since Nigeria came back to democracy we have never witnessed this here. We were not at the first edition but going for the second edition, these athletes performed creditably, that is why we are cel-

ebrating these people who has made us proud. We want to appreciate and motivate them so they can perform better in subsequent editions", he said. The Rivers team had come second and third in the football and tennis championships and were also voted the most disciplined team during the national event at Ogun state.

ter of fact, His Excellency Goodluck Jonathan, publicly claimed the Chelsea FC victory as a work of providence in support of his administration” he said. He further informed: “This celebration will be a six-hour event scheduled between the hours of one o’clock in the afternoon and six in the evening. Outline of the party will include music fan fare where prominent artistes from the Nigerian Music industry will be featured, ball juggling from past and present Super Eagles stars, dances from prominent dance groups; both traditional and contemporary and many more. A gala night “A night with Mikel” will follow in the evening to complete the celebration.

“There are over 3.5 million Chelsea fans in Nigeria and about 2 million in Lagos alone. This is a conservative estimate that can easily be verified. And over 60, 000 of these eager fans are expected to storm Lagos for the Chelsea Fc fans party. “We urge every Nigerian, sports lovers and Chelsea fans to support this event. It is our event, aimed at honouring our very own, John Mikel Obi. Therefore let us come out large numbers with unity of purpose, to make this event a memorable one,” he said. Sambo assured that plans are in place to ensure adequate security, as he hopes that the celebration will further bring fans of the ‘Blues’ under one umbrella.

THE NATION MONDAY, AUGUST 13, 2012

SPORT EXTRA LONDON 2012 OLYMPIC GAMES...LONDON 2012 OLYMPIC GAMES...

•Viatlana Usovich of Belarus and Regina George of Nigeria compete during the Women's 4 x 400m Relay Round 1 heats on Day 14 of the London 2012 Olympic Games at Olympic Stadium

Abdullahi’s food for thought L ONG when it has become statistics and data for sports historians and sports journalists, history will record that Team Nigeria returned from London 2102 Olympic Games without a medal, just like it happened at Moscow ’80 and Seoul’ 88 games. But if sports historians want to be fair, they will record that for the first time in more than three decades, Team Nigeria received money for preparation for the Olympics, six months before, this all thanks to the current the Honourable Minister of Sports and Chairman, National Sports Commission, Mallam Bolaji Abdullahi, who was then the Minister of Youth and supervisory Minister of Sports then. Mallam Abdullahi also ensured that all the athletes that qualified to represent Nigeria received all they needed to excel at the games. They were exposed to

quality training and facilities available to their counterparts from other parts of the world, their bonuses and allowances were paid as when due. But by far Mallam Abdullahi greatest achievement was his ability to admit that we failed in London and we have to start again immediately. It takes a minimum of five to years ten years to prepare an athlete to win an Olympic medal, Abdullahi became Minister of Sports two months ago, yet instead of looking for excuse and apportioning blames, at a media briefing during the games last week, he said, “two weeks, ago, we arrived London for the 2012 Olympics with a contingent of 51 sportsmen and women competing in 8 sports namely, athletics, weightlifting, taekwondo, boxing, wrestling, table tennis, canoeing and basketball. We were

competing in the last two for the first time ever. Even though we did not expect to win the competition, we had arrived hoping to make a decent showing. We even had reasons to believe we could surpass some of our recent achievements at this level of competing. Why not? We had arrived London riding on the wave of a short but intensive preparation of our athletes in different parts of the world where they did not only have the benefits of high quality facilities and technical support but also had the opportunity to match up against some of the best athletes from other parts of the world, and on some occasions, beating them.’’ Abdullahi revealed that we had one of our best preparations coming into this competition in recent years. ‘’This, coupled with a system that put athletes’ welfare at the heart of

planning and an atmosphere devoid of rancour and acrimony, we believed would guarantee us a couple of medals’’ He said that last week that as the game draws toward an end, ‘’ only a few days to the end of the competition. Team Nigeria is still not on the medals table. I must say this is as disappointing for my team and myself as it is for all Nigerians everywhere.’’ But even as painful as this disappointment is, Abdullahi said we must have the courage to see it for what it is. This, therefore, is a scientific diagnosis of our condition; a clear testimony to how far our sports have fallen behind. ‘’We shall therefore not attempt any excuses or indulge in any unproductive blame game. Rather than see this as a failure, we must see it as an opportunity to rebuild. When other countries have

found themselves in this kind of situation in the past, they have used the galvanizing power of disappointment to get down to work. At Atlanta 1996 Olympics, Team Great Britain won only one gold medal. Returning home, the right questions were asked, and the necessary actions were taken. Four years later in Sydney, they returned with 11 gold out of 28 medals. In Beijing four years ago, they returned with 19 gold medals out of 47, placing them in the fourth position. Today, Team GB is sitting pretty in the third position of the medals table surpassing their own expectation. Today, they are able to look back and say they have moved from “zeroes to heroes.” Abdullahi believed this is our chance and we must see this crisis as the necessary disequilibrium required for serious actions and drastic change.’’ We will not allow this opportunity to pass. Having being appointed Minister and Chairman, National Sports Commission only two months to the Olympics, I have had to learn very quickly. And I have not received a better lesson than in the last two weeks of the London 2012 Olympics. I have learnt three key lessons from this Olympics:’’ Abdullahi posited that Olympics medal is about hard cash and that it is not a coincidence that the medals table appears to reflect the level of economic development of the countries. ‘’But having the resources is one thing, making the right strategic investment is another. Team Great Britain largely owes its dramatic success to what is described as “unprecedented financial investment” totaling up to more than 740 million GBP over 15 years. The current annual spending on sports stands at 100 million GBP. However, only 40% of this comes from the treasury, while the remaining 60% is lottery fund.’’ He compared Great Britain with Australia a country which finished fourth in Sydney with 16 gold medals but in London, Australia has fallen outside the top 10 with 6 gold medals. ‘’Every medal is clearly projected and carefully planned for both in financial and technical terms over a sustained period of time. Only years of intensive, unrelenting training and preparation can win medals. There is

no short cut. Medals are won by people who have worked hardest not by those who have prayed hard. We can only win medals by building systems that are capable of producing medallists and champions not by selecting athletes that we hope can win medals”. Abdullahi also posited that Olympics are a lifetime commitment. “The champion is in the child. Ye Shiwen, the 16 year old Chinese girl that shocked the swimming world by setting a new world record in individual medley was only 12 when her country hosted the Olympics. Lizzie Armistead who won the Team GB’s first medal in this Olympics with Silver in cycling got her first bicycle at the age of 4.The immediate challenge for us is how to translate these lessons into concrete actions in the days ahead.’’ Abdullahi revealed that the process of rebuilding will start with the National Sports Festival in Lagos later this year. ‘’We shall use this event to flag-off our preparation for the 2014 Commonwealth Games in Glasgow and thereafter the 2016 Olympics in Brazil.’’ He outlined the following as his top priority: identifying five sports that give us competitive opportunities, restructuring the Federations of these Sports to make them more democratic, accountable and efficient. ,developing a Sports Calendar that will ensure year-round sports activities both within and outside the schools, strategic engagement with the private sector with the aim to improve funding for sports, Strengthen our coaching and training capabilities by developing strategic partnership with national and international bodies. The lesson from above is for Nigeria to support Abdullahi so that like Great Britain, Nigeria will be a great sporting nation in our nation in another ten years.

•Bolaji Abdullahi

NATIONSPORT MONDAY, AUGUST 13, 2012

EXTRA

Di Matteo impressed by ‘hardworking' • Kompany

Kompany targets more trophies

APTAIN Vincent Kompany set his sights on a trophy-laden season with Manchester City after they secured their first of the new campaign with a 3-2 victory over Chelsea in the Community Shield. City went behind in the first half to a Fernando Torres strike before Branislav Ivanovic was dismissed for a studs up tackle on Aleksandar Kolarov just two minutes later. The Premier League champions stepped up a gear in the second half scoring through Yaya Toure, Carlos Tevez and Samir Nasri. Ryan Bertrand pulled a goal back to set up a nervy finish but City held on to win their first Community Shield since 1972. Tevez was lively throughout the game match and Kompany was inevitably asked about the Argentine striker, and whether he would make headlines fire the right reasons after his much publicised spat with Roberto Mancini last year. "I couldn't care less what the headlines say as long as the club wins trophies," Kompany said. "We'll celebrate.'' City start their campaign at home to Southampton next Sunday and Kompany added: "It's going to be a tough league this year because there's a lot of quality around as you've seen today. It will be another interesting season again and if we can improve on last season again I'll be very happy.'' Asked for his view on Ivanovic's red card Kompany added: "I'm not going to get involved. I was a bit far from the action so didn't see.''

Torres

Carroll nets in Reds win

• Di Matteo

HELSEA manager Roberto Di Matteo has praised goalscorer Fernando Torres’s performance against Manchester City in the Community Shield. The Spaniard opened the scoring in the first half before ten man Chelsea went on to lose 3-2 to the Premier League champions. And the Italian, who was made full time Blues boss this summer after winning the Champions League and FA Cup last season, was impressed by the enthusiasm his £50m striker showed. “He was good,” Di Matteo said. “He scored a goal but he also worked very hard for the team, ran a lot and looked good. “He moved a lot, was in good positions, played with the other team members as well so it was a good performance.”

UT-OF-FAVOUR striker Andy Carroll capped a comfortable 3-1 victory for Liverpool over Bayer Leverkusen in their final pre-season friendly before they kick off their Premier League campaign. It took just three minutes for the home side to break the deadlock at Anfield through youngster Raheem Sterling. The 17-year-old latched on to an incisive ball from Jose Enrique down the left before cutting inside to curl a shot into the bottom corner past Bernd Leno in the Leverkusen goal. Liverpool's second of the match came on the 29th minute from a freekick won by Luis Suarez, who was brought down by Daniel Schwaab on the edge of the area. The cleverly worked set-piece found Suarez unmarked in the area, who got the ball stuck under his feet before it was deflected into the path of Lucas Leiva, who side-footed home into an open goal from six yards out. A goalkeeping blunder allowed Liverpool to get their third of the match on 65 minutes when substitute Carroll turned nicely on the ball before firing a routine shot from outside the area goalwards that Leno fumbled into the back of the net. The visitors snatched a consolation through Gonzalo Castro on 75 minutes when he shrugged off Jamie Carragher and unleashed a fierce left-footed shot that sailed past Jose Reina in the Liverpool goal.

Rodgers: We're in a good moment

•Rodgers

R E N DA N RO D G E R S b e l i e v e s Liverpool's preparations for the start of the Barclays Premier League season could not have gone any better as he watched his side beat Bayer Leverkusen 3-1 at Anfield on Sunday. The Reds signed off from their final friendly of the summer with a comprehensive victory as goals from Raheem Sterling, Lucas Leiva and Andy Carroll ensured Sami Hyypia's first return to Merseyside as an opposing manager ended in defeat. It was Rodgers' final chance to assess his players in match action ahead of next Saturday's trip to West Bromwich Albion, and he's delighted with how

the squad have geared up for the campaign over the last two months. "I thought the players were excellent today, especially on the back of a competitive game on Thursday," the boss told his post-match press conference. "I am very pleased. I see the idea of the team improving each time we play and in a very, very short period of time the players have taken on board that tactical concept of controlling and dominating the game. "Last time they were out, Bayer Leverkusen won 7-1 against Frankfurt, so for us to play with that control and domination against a very good side was excellent.

•Carroll

www.thenationonlineng.net

TODAY IN THE NATION

‘What the PDP could not achieve in Edo and Imo because of the stiff resistance of the people, it thought it could procure through the tribunal’ MONDAY, AUGUST 13, 2012 TRUTH IN DEFENCE OF FREEDOM

EMEKA OMEIHE

VOL 7 NO 2,216

C OMMENT & D EB ATE EBA

HY have Nigerians continued to complain over our physical paralysis at the just ended Olympics? It is because, as optimists, we always expect something out of nothing. Expecting something out of nothing has been the Nigerian way in a generation. We like to reap but despise the sower. In politics, we rig. In business, we defraud and laze our way to profits. In culture, we endorse and extol the winners of rigging and commercial fraud as models in praise singing parties and worshipful obeisance. If we get something out of nothing in both, it is natural for the Nigerian to have expected something – a medal - in Britain in the past few weeks. We wanted to foolishly ape the words of the scriptures where Christians should conjure things that are not as though they are. We want to distort the line of the absurdist or existentialist philosophers like Albert Camus, Jean Paul Sartre and their German counterparts like Soren Kierkegaard and Martin Heidegger who called for a leap of faith. It is a leap of faith that makes an unpopular politician win an election in a flush of applause and throws a party afterwards. That was the reason we expected something out of the Olympics. Some Nigerian-born or parented athletes abounded in blue chip countries like Britain, Canada and the United States and did not want to represent their countries. The point is the Nigerians were shunned by their country because Nigeria did not have the atmosphere or the zeal for them. So many came from outside in the lead-up to the games on their own resources, but a good number of them were treated shabbily. They wanted to be good ambassadors of their countries. They wanted to do something in order to get something. These are more redeeming specimens of the Nigerian soul. They wanted to earn. They were different from the country they met. They saw a country without a stadium of any good quality by world’s standards except, of course, the one in Calabar. What happened to the Stadium in Abuja, and our dear National Stadium in Surulere, Lagos? They are now relics. Relics, by classical definition, should refer to ancient edifices. Ours is barely a generation old. Just as Nigerians die young, so do our dreams. But our monuments are born prematurely. So why are we surprised to see a name like Oluseyi or Osagie in the colours of Canada and Great Britain? It is not that we cannot win gold, with our big population. We have grandiloquent dreams as individuals but no dreams as a people. As Abraham Lincoln noted, the greatness of a country consists not in the number but the quality of its citizens. Do we have what it takes to rival Michael Phelps, the fastest human fish on the planet? Of course. Can we breed Usain Bolts? Why

SAM OMATSEYE

IN TOUCH

intouchsam@yahoo.com 08054501081(sms only) •Winner, Informed Commentary 2009& 2010 (D.A.M.E)

The ambassadors

•London Olympics logo not! My father, Moses, told me stories of his days in the creeks as a lad, and how he and his friends played sport of out-swimming fishes and even staying under water for hours on end. In the heydays of the national sports festival, we saw the potential of Nigerians in swimming. We had talent hunts for athletes on every level. What we have today is a feast of corruption. Who says we cannot have Nigerians excel in shooting or tennis, both the table and lawn varieties? Rather than shoot for glory, we make carrion flesh of fellow nationals in robberies and ethno-religious rampages. Britons took advantage of the Olympics to retail the best of their nation. The opening ceremony was a paean of their history, its march from medieval rut to the majesty of

RIPPLES DEMOCRACY NOT ON COURSE IN NIGERIA– Afenifere chieftain

it’s on SABBATICAL

HERE are two ways Nigeria can react to its failure to win medals in the 2012 Olympic Games: either it shrugs it off fatalistically as one of those necessary but inconvenient setbacks in life, of course after bellyaching for a while, or it lashes out in its typical fashion looking for scapegoats to blame for the woeful performance of its athletes. If precedence is anything to go by, the country is unlikely to conduct a proper postmortem of what went wrong and how to fix it. To do what is necessary to fix the problem and design a realistic and permanent solution would require the kind of discipline economically developed societies often bring to their domestic and international affairs. If we had a modicum of the sort of discipline that produces positive change, we would have applied it to previous Olympics and avoid today’s debacle. Already, many Nigerians are attempting to correlate the $14 million spent on preparing our athletes for the games with the woeful results they got. They suggest it was good money down the drain. But in talking about the ‘huge’ fund, we must not forget that it was released a few weeks to the

the industrial revolution as well as the pomp of royalty. We saw a country celebrate its history as the pageant of world history, and it succeeded. The London Times, which writes some of the best editorials in the English language, serenaded the country’s display as “a festival of Britishness.” The Chinese, affirming their ascent in the world, basked in a sweep of medals. The Americans showed their hubris as still the nation to beat. They dominated the medal haul. If anything, the blue-chip countries have shown us that there is no short-cut to glory. We could not rig our way to success as we do in elections, court verdicts and business deals. There is no fakery in the Olympics. It is all about rules, and if you cannot abide, you lose. No godfather here, no moneybag heaven, but the consummation of talent. The Olympics celebrated the best of the world, and our country was absent, a tragic no-show in the carnival of honours. Our ambassadors represented us well from the rear where we belonged. Rich countries like China and the U.S. worked hard with vision and industry before they excelled. It is the same spirit they invested in the Olympics. Nigerians can learn from that. President Goodluck Jonathan can learn a lesson or two about being an ambassador. It is not about travelling to Trinidad and Tobago when his country founders in a show of electoral strength in the African Union, or flying to Brazil for an earth summit while Boko Haram burns the Nigerian earth. It is not about going to retail our sovereign funds to foreign investors in Europe while our own investors are famished for funds. It is about telling the best of our efforts and regenerating our pride as a people. If he knew that, the President could have shown a sense of concern about the games. Sport today is the modern translation of war among nations. If he had a good vision, he should have done something about our pre-

paredness. All he did was dole out money. We have not heard Jonathan intervene in the sports in a fruitful way in the past year. He could have done what Britain did: hunt all over the world for Nigerian talent and furnish them to don our uniforms. We may not have hunted for non-nationals as England and other Western countries did. We would have had enough Nigerians on the team as a start in generating interest in Nigerianness. He should have quickly changed the face of our stadiums all over the country, especially Lagos and Abuja. He should also have set in motion, as others do, the necessary talent hunt for the next Olympics. Nothing of the sort is going on. The President is adept at the sort of dominance his party has, which is through rigging. When Jonathan visits other countries, he is like the Nigerian athletes at the Olympics. They go there to give a good impression of our country. They end up having a good impression of others. It is like the novel, The Ambassadors, by Henry James about an American who travels to England with superior airs but the English high society overawes him. Who, then, is the superior ambassador? That is the story of our Olympics. The cultural evangelist becomes converted. We become, like a character in The Ambassador describes himself: “the perfectly equipped failure.”

Cursing the darkness

OWER is one of the drawbacks, or shall we say the absence of it of our lives. But for labour to exploit it in the guise of activism is not only perilous for us as a country, it is a new look to opportunism. The NLC has decided to go on strike if the PHCN does not remove security forces already guarding the PHCN stations around the country. So, what good can come out of such show of shame? It is also stated that the PHCN junior workers are fighting over pensions. That is a more reasonable ground to go on strike as many retirees in this country have been left in the lurch. But even at that, I understand that they claim 25 percent of their salaries have been deducted over the years. But it turned out that there was an agreement in 2004 to deduct 15 percent, which the PHCN, in bad faith, did not do. So the PHCN relied on IGR for the few who retired until the snag came when mass retirements happened. Now, labour wants 25 percent of the money they never paid for retirement or we shall have darkness that we already are used to in our misery. I am sure an agreement can be reached on workers’ money. But to threaten strike because of those guarding the stations is like asking for a curse. What this means is that labour wants to curse the darkness rather than light candles. All we want is regular electricity, and labour is not helping matters.

HARDBALL

•Hardball is not the opinion of the columnist featured above

Olympics humiliation

30 and 56 percent, depending on whose figures you rely. We have been unable to maintain the country’s major arterial roads, we ran aground our shipping line, destroyed the national air carrier, and are struggling to resuscitate an antiquated railway network. We must be careful not to isolate the Olympics failure, as if it was possible to make a success of it in spite of operating a huge and comprehensive template of policy and infrastructural inadequacies. Countries that harvested scores of medals at the 2012 Olympic Games prepared hard and long for success. It is a miracle we achieved modest success in basketball before the US humiliated us in the games. If we are able, if we would stop being our usual selves, let us urgently design a comprehensive programme of action and budget for the next Olympics, subject it to thorough vetting by local and foreign experts, and begin to implement immediately, not with the cavalier and contentious manner we implement budgets, but with the seriousness of a focused nation. The alternative is to go to sleep and pray for miracles in the 2016 games.

games, and that it does not even compare favourably with what other countries spent on their athletes. A country like Great Britain, which has supplied statistics of its preparation for the games, disclosed it spent over 260 million pounds to prepare its team, and the fund was released over many years, not a few months to the game. China and the United States are likely to have spent much more. So, too, did Jamaica, though its success was virtually limited to the more showy sprints, thanks to Usain Bolt. It will be unwise to blame either the athletes alone for displaying poor athleticism, or sports administrators for incompetence, or even the government for slow response. The Olympics failure is a reflection of a much deep-seated national malaise. Consider, for instance, the controversy over budget implementation, especially the slow release of fund that has reduced execution to between

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