The Nation January 09, 2012 by The Nation

Nigeria’s widest circulating newspaper

President: Boko Haram has PREVIEW Bank CEOs, infiltrated govt, military analysts give NEWS

Page 4

•‘Security challenge greater than civil war’

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VOL. 7, NO. 1999 MONDAY, JANUARY 9, 2012

2012:

NEWS Pages 12 - 16

verdict on economy

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Achebe, Soyinka, Clark urge rethink of subsidy withdrawal •Literary giants insist on national conference •Warn against retaliation of Boko Haram attacks

IGERIA’S foremost writers have advised the government to pull the brakes on the subsidy removal that has put the nation on edge. They also cautioned security agents against turning their guns on protesters, saying their duty is to protect citizens. Nobel laureate Prof. Wole Soyinka, Prof. Chinua Achebe and Prof. J.P. Bekederemo-Clark yesterday issued a joint statement on the state of the nation. They called for the convocation of a national conference to address the national questions. They also cautioned against reprisal attacks over the Boko Haram killings in the North. The statement is another rare intervention by the eminent writers. They intervened, though unsuc-

•Soyinka

•Achebe

cessfully, in 1986, to prevent the execution of Gen. Mamman Vatsa after his conviction for coup plotting. It was during Gen. Ibrahim Babangida’s military government. The statement entitled: “Let not this fire spread: An appeal to the Nigerian national community”, reads: “The fears we have all secretly nursed are coming to realisation. The nightmare we have hugged to our individual breasts, voicing them only in family privacy, or within trusted caucuses of friends and colleagues - lest they become instances of materialising evil thoughts - has finally burst through into our social, physical environment. Rumblings and veiled threats have given way to eruption, and the first cracks in the wall of patience and forbearance can

•President Goodluck Jonathan (second right) cutting the tape to launch the Federal Government-Assisted Public Mass Transport Scheme in Abuja ... at the weekend. With him are from left: Vice President Namadi Sambo; Minister of Transport, Idris Umaru; Minister of Finance, Mrs Ngozi Okonjo-Iweala and Minister of Labour, Chief Chukwuemeka Wogu

Continued on page 58

•Clark

•Civil society organisations seeking support for today’s strike on Keffi Street, Obafemi Awolowo Way, Ikeja, Lagos ... at the weekend PHOTO: RAHMAN SANUSI

All set for strike today Reps advise Executive to suspend petrol subsidy withdrawal Jonathan: resolution inciting Protesters in Abuja with blankets

HE stage seemed set last night for today’s petrol prices strike. A senators’ last-minute effort to stave off the strike failed. Labour mapped out details of its action and the Nigeria Bar Association (NBA) called on lawyers to join the strike. Besides, the House of Representatives advised the Executive to roll back the prices. But the Presidency described the resolution as inciting. Petrol now costs between N138 and N200 per litre, up from N65 before the New Year’s Eve’s sudden withdrawal of subsidy. Nigeria Labour Congress (NLC)

From Yusuf Alli, Onyedi Ojiabor, Sanni Onogu, John Ofikhenua

INSIDE

(Abuja) and Dupe Olaoye-Osinkolu

•Police deploy 24,000 in Lagos, 15,000 in Abuja •UK, U.S. issue alerts •Jonathan administration insincere, says ACN P2,3, •UN disowns official 5&58

Acting Secretary General Owei Lakemfa issued a directive on the protest in Abuja. He said: “The NLC and TUC have directed that Abuja residents converge on Berger Roundabout daily by 8.00am from Monday January 9. Please pass on information to others by means.” Some would-be protesters arrived at the Eagle Square yesterday, carrying mattresses, blankets and tents – ready for the action. The Lagos State council of the

congress will begin its protest from the Labour House in Tejuosho. NLC Deputy President Promise Adewusi said he was not aware of any official invitation to a meeting with senators. Said Adewusi: “I am not aware of

any formal invitation by the National Assembly. So, I will not attend a meeting without an invitation as that will be tantamount to gate crashing. We are not likely to go for any negotiation now without PMS pump price being firstly reverted to N65 per litre as that will amount to negotiating under duress. Nigerians have been fully mobilised by hunger, poverty, anger and angst and are primed for the start of the strike tomorrow. Like our President ordered, ‘no retreat, no surrender’. NLC and Trade Union Congress (TUC) leaders shunned the Senate’s

invitation for a meeting over the planned strike. The Senator Wilson Ake-led Senate Committee on Labour and Productivity scheduled the meeting for 3p.m. yesterday. It was not to be. A source said: “Members of the committee were actually at the Senate, expecting the labour leaders who did not turn up. After some time, the senators went to the Labour House to meet with the leaders but they were not there. Efforts to reach them on phone did not yield positive results as the Continued on page 4

•BANKS GIVE FARMERS N30B LOANS P9 •NAIRA FALLS ON STRIKE FEARS P9

THE NATION MONDAY, JANUARY 9, 2012

NEWS PROTESTS OVER SUBSIDY REMOVAL

ACN: Jonathan administration insincere

RESIDENT Goodluck Jonathan’s defence of his administration’s decision to withdraw petrol subsidy has failed to address pertinent issues, the Action Congress of Nigeria (ACN) said yesterday. The party said the President only succeeded in deepening the people’s mistrust in his administration. In a statement in Lagos yesterday by its National Publicity Secretary, Alhaji Lai Mohammed, ACN said the deficit of trust between the Jonathan administration and the people was the reason the people did not take the President’s speech seriously. It said this showed in organised Labour’s response that the strike on the matter will hold today despite the President’s speech. It recalled that while the President promised to consult with all stakeholders across the country and collate their views before taking a decision on the fuel subsidy issue, probably in April, he rather decided to ambush Nigerians and ruin their New Year celebrations by rushing to withdraw the subsidy after just one stakeholders’ meeting in Lagos. ‘’If the President did not stand by his earlier promise to Nigerians on this issue, why should they believe him now to do all that he has promised in his speech?’’ the party queried. ACN re-stated its opposition to the removal of the fuel ‘subsidy’, saying all that the government subsidises are corruption and inefficiency. It also hailed the Governors of ACN states for their courage in standing on the side of the people and labour, in their quest to get the government to rescind its decision to remove fuel subsidy. ‘’The President seemed surprised that his action has inflicted untold suffering on Nigerians. He also said he feels the people’s pain. Our stand is that he does not. If he did, he would have rescinded a policy of fuel subsidy removal that obviously was not well thought out. What was the President thinking would happen when petrol price shoots up from N65 per litre to as high as N200 ? Did we not warn that the action would deepen poverty and worsen the suffering of Nigerians?’’ the party queried. On the so-called sacrifices by the government, which the President reeled out in his speech, ACN said it amounted to a mere tokenism compared to the avoidable pain and suffering that his administration’s decision has inflicted on Nigerians in the New Year. ‘’The President must tell Nigerians what 25per cent of basic salaries of public office holders amount to, and what impact this will have in a government suffused with incredible profligacy. We will also like to know the allowances and other perks that these officials receive, which is the core issue. ‘’We recall that when the stakeholders’ meeting was held in Lagos, gov-

•A member of the Civil Society Intervention Group protesting the imposition of a governorship candidate in Bayelsa State at a rally in Lagos... yesterday

By Nneka Nwaneri

ernment officials who attended were ferried to Lagos in four different private jets. So, who is fooling who about cutting the cost of governance. In any case, the recurrent vote in this year’s budget is high as 74 per cent, compared to 26per cent for capital. How will the tokenism announced by the President reduce this? ‘’The truth is that a government that has budgeted N2.3 billion in just a little over two years, including N1billion in 2012 alone, for feeding the presidency alone cannot be serious about cutting cost or engaging in shared sacrifice. This sacrifice is one-sided, and it is being borne by the people of Nigeria while the government engages in Arabian-style opulence,’’ the party said. On other measures like provision of buses and completion of railway lines, ACN said the President was merely putting the cart before the horse by removing subsidy first. ‘’We had called for safety nets to be provided by the government if it was bent on removing subsidy. We had called for massive infrastructural development, including roads and alternative means of transport like the waterways and the railways. We had asked the government to repair existing refineries and build modular ones. The government ignored all this, only to now be talking about some ill-thought-out mass transit programme. Even if all the 1,600 buses to be procured by the government are deployed to Lagos, on what roads will they be driven? What impact can they have in a state with a population in excess of 15 million? ‘’We maintain that it is disingenuous for the government that says it can no longer afford the funds to subsidise fuel to now turn around to say it will use the funds to build infrastructure. In the first instance, were the savings from the fuel subsidy included in the 2012 budget? Can the government spend money that has not been appropriated? In any case, we have always argued that the issue of fuel subsidy is not pure economics, but that it has implications for the welfare and security of the citizenry,’’ the party said. It also challenged the government to counter, with facts and figures, the conclusion by experts that there is indeed no subsidy on fuel; that the production from local refineries, even though they are functioning far below capacity, is enough to meet domestic needs hence there is no need to import fuel. ‘’We will also like to ask the government again to tell Nigerians what happens to the 445,000 barrels per day allocated to the NNPC? If part of this is refined locally, what is the cost? And what is the landing cost of part of the NNPC allocation swapped with some refineries abroad? And who are the beneficiaries of this?’’ ACN said.

PHOTO: RAHMAN SANUSI

Ex-militants allege assassination plot against Jonathan, others •Urge renegotiation of Nigeria’s corporate existence

NEW twist was added to the fuel subsidy removal controversy as former leaders of Niger Delta agitators said they have uncovered a grand conspiracy by some unnamed powerful Nigerians to assassinate President Goodluck Jonathan and key security personnel from the region. Speaking under the aegis of Leaders of the Niger Delta, the group at a news conference in Abuja yesterday named those pencilled down for elimination as including the Chief of Army Staff, Gen. Ihejirika, Senate President David Mark and the National Security Adviser, Gen. Owoye Azazi (rtd.). In a statement read by the President of Ijaw Youth Council, Mr. Miabiye Kuromiama, the group vowed that it would not watch idly as “disgruntled elements” work behind the scene to truncate the administration of President Jonathan. Kuromiama, who was accompanied to the briefing by different representatives of the Ijaw Nations including Asari Dokubo (Ijaw Rivers), Elder Ogoriba (Ijaw Bayelsa), Shole Mese (Itsekiri), Felix Tuodolor (Izon Delta) and Imo Iloko (Ibibio) among others, urged for a peaceful renegotiation of the nation’s corporate existence instead of bloody separation. He noted that the two peaceful opportunities that could be exploited by the leaders include (a) re-negotiating a new basis of our continued corporate co-existence as a nation and (b) Negotiate a peaceful dissolution of the Nigerian State as was the case with USSR, Ethiopia, and Czechoslovakia. He said: “Leaders of the Niger Delta involved in the long struggles to reinvent and revive the dire political

From Yomi Odunuga, Abuja

and socio-economic conditions of this country Nigeria, draw the attention of all Nigerians and the Global Community to an advanced conspiracy and plot to destabilise and disintegrate the country in the coming days and weeks. “The promoters of this plot seek to achieve their aims by assassinating the President of the Federal Republic of Nigeria, Dr Goodluck Jonathan and also eliminate very senior military and security officers from the South and Middle Belt including and particularly the Chief of Army Staff Gen. Ihejirika, the Senate President David Mark and the National Security Adviser Gen. Owoye Azazi (rtd).” Those identified in this sinister plot include retired senior military and security officers who are working quietly with some serving officers, some “powerful” opportunistic businessmen who benefit from existing incentives for corruption and profiteering in the economy including current subsidy on PMS otherwise call petrol and whose business is threatened by current government policy. ”Also in Alliance with them are corrupt and disgruntled politicians who are for once currently outside the corridors of Nigeria’s political power reality after over 40 years of monopolisng power and manipulating the people. This plot is now almost perfected by certain disgruntled elements in Nigeria and their co-conspirators. He went on: “Having been aware and studying the development of the situation since the emergence of a Niger Delta son in the leadership

of this country, we have resolved to take serious steps to guarantee the security and survival of our peoples in the Nige’’ ‘’We also advise all Nigerians to be aware of this plot, its deeper motivations, implications and the consequences that will befall all of us. Accordingly, we strongly and unequivocally warn that a plot against the life of Mr. President and derailment of this government is likely to spell disaster for this country and bring untold and sustained hardship to the masses far worse than any temporary pains of a deregulated down-stream petroleum sector is likely to cause. “We have always been aware, as many other Nigerian and the world over, that the struggle for power and control of government in Nigeria by political forces in the name of ethnic, religious, regional or group based interest has been to access and control the oil and gas resources from the Niger Delta by this kind of persons. ”Or do we allow the country to slide into a bloody disintegration of Africa and the Black race’s largest democracy, as did Sudan and Yugoslavia? As it appears now, the Sudan and Yugoslavia option are now very apparent and fearful looming as the anarchy and potential loss of innocent lives including plans to assassinate or overthrow the government of Dr. Goodluck Ebele Jonathan portrays. This is totally unnecessary. ”If and when the plan is executed, Niger Delta nations and peoples know exactly what steps to take and will not hesitate to progress with necessary measures towards such steps forthwith.”

This anti-people policy must not stand, says Akeredolu

ORMER President of the Nigerian Bar Association (NBA) Oluwarotimi Akeredolu (SAN) at the weekend condemned the Federal Government’s decision to deregulate the petroleum industy’s downstream sector. In a statement in Lagos, he criticised those he described as ‘clueless representatives’ who failed to tell the government that there was no subsidy on a litre of petrol at N65. The statement reads: “Those who should know have told the leaders of the ruling party and their clueless representatives in government that there is no subsidy whatsoever in the price of petrol at N65. The fact on ground confirms that Nige-

•’The will of the people is supreme’ By Nneka Nwaneri

rians have been subsidising this rudderless government and the criminal clique in the sector. In spite of all these, Nigerians have been told that the decision is irreversible. “Democratic government doesn’t anticipate acts of dictatorship on the part of elected representatives and their appointees. The socio-economic security of the people must be the primary purpose of governance. Ultimate sovereignty rests with the people. Their will is supreme. No functionary who claims to derive his mandate from this collective

will should arrogate to himself a monopoly of wisdom in a matter of national importance. It is a subversive of the sovereign will of the people or a group of people, with barely disguised contempt for the rest of us, to insist that this outrageous imposition will stay even after the people have risen in unison against it. “In a situation like this, a truly democratic government will call for a plebiscite to determine the will of the people. The dubious contraption organised to achieve a desired end was exclusive. The people handpicked to discuss this issue of grave significance did all but

convince Nigerians on the desirability of the removal of the so called subsidy. Government representatives and sponsored spokespersons only succeeded in exposing the unimaginable level of criminality in government circles. Nigerians cannot continue to subsidise sleaze consecrated as governance. “I enjoin all patriotic Nigerians to join the organised labour organisations and civil society groups to call off the bluff of this Government. “We must also seize this opportunity to warn security agents to refrain from perpetrating any acts of repression against the people. Every individual should be ready to answer for every illegal action.”

•Akeredolu

THE NATION MONDAY, JANUARY 9, 2012

NEWS PROTESTS OVER SUBSIDY REMOVAL

Protesters storm Eagle Square in make-shift tents, blankets

HE stage was set last night for the strike. Some protesters invaded the Eagle Square with make-shift tents and blankets. But the Police have cordoned off access to the Square with armoured tanks. Our correspondent observed that as at 8.30pm the daring protesters, some of whom came in their personal cars, travelled to Abuja from different parts of the country. Armed with their placards, the protesters were mounting their tents opposite the Eagle Square in readiness for a rally to mark the nationwide action. Reminiscent of the occupation of

Tahir Square in Egypt, the protesters also brought in candy foods that could last them some days. As at the time our correspondent got to the Eagle Square, the protesters were playing the legendary inciting music of “Suffering and smiling.” One of the protesters, Mr. Michael Dung, said: “We are ready to sleep at the Eagle Square until President Goodluck Jonathan restores fuel subsidy. “They think we are joking but Operation Occupy Nigeria has started. We will sleep in this open yard, not minding the biting harmattan until our demand is met.”

Replying a question, Dung added: “As you can see, the police have prevented us from having access to the Eagle Square but we have pitched tent by the roadside opposite the square to sleep till tomorrow when the strike will begin.” Although the police sealed off the road leading to the square, they did not molest the protesters. The blue armored tanks were heavily guarded by stern looking and armed mobile policemen. Some protesters had also stormed the Old Parade Ground in Area 10 but police were trying to evacuate them as at 9pm, it was gathered.

UN disowns official over comment on subsidy removal

REMARK made by Prof Jeffrey Sachs, the Special Advisor to the United States (US) Secretary-General Ban KiMoon, on the withdrawal of subsidy on petrol by the Federal Government has created a gulf between the world body and the official. The UN yesterday distanced itself from the remarks credited to Sachs on the dispute created by fuel subsidy removal. During a visit to President Goodluck Jonathan last week, KiMoon’s aide had described the fuel subsidy withdrawal as a “bold and correct policy.” He was quoted as saying that the funds accruing from the removal

From Augustine Ehikioya, Abuja

would be ploughed into rapid infrastructural development. But a statement issued by the UN System in Nigeria yesterday said that Prof Sachs’ comment did not represent the position of the UN. The statement reads: “Professor Jeffrey Sachs’ remarks relayed by the press on January 6, 2012 require clarification. Contrary to some press reports, Professor Sachs was not representing any official United Nations position on the removal of subsidy on petroleum products. “Professor Sachs was visiting Abuja to discuss and assist in Ni-

geria’s programs for the Millennium Development Goals and poverty alleviation. “The United Nations System in Nigeria takes this opportunity to stress its continued commitment to contributing to peace and stability in Nigeria.” The UN also reiterated its belief in the principles of peace, human rights, democratic governance and solidarity as essential ingredients for equitable and sustainable development. The statement further reads: “The United Nations System in Nigeria highly appreciates the support of the government and people of Nigeria in delivering its mandate in the country.”

Avert revolt, group tells Jonathan THE Yoruba Ronu Leadership Forum has urged President Goodluck Jonathan to avert bloody revolt by the people by reversing the removal of subsidy on petrol. In a statement by its Secretary General Akin Malaolu, the group said: “In the prevailing circumstances of Nigeria, it should be crystal clear to all of us that our democracy has been greatly undermined by elected political leaders across the nation. “We feel sad for the dismal and almost hopeless plight of the helpless millions of people due to the sudden increase in the price of petrol, its multiplier effect on standard of living and general state if insecurity in the nation. We urge leaders to look in whichever direction they like, the omens for Nigeria are dreadful and too uncomfortable to contemplate because today, our democracy is certainly under performing.”

From Kamarudeen Ogundele, Abuja

ORMER President of Nigerian Bar Association (NBA) Chief Bayo Ojo (SAN) has advised the Nigeria Labour Congress (NLC) to obey the National Industrial Court (NIC) order, halting their proposed strike. The strike, billed to start today is to protest the removal of petroleum subsidy by the Federal Government. The Attorney General of the Federation and Minister of Justice, Muhammad Bello Adoke (SAN) on Friday,got an injunction against the NLC and the Trade Union Congress (TUC). But the NLC has insisted on embarking on the strike. In a statement in Abuja, yesterday, Ojo said: “The court is a product of an Act of the National Assembly empowered by the 1999 Constitution of the Federal Republic of Nigeria (as amended). It is an elementary principle of our laws that whether the order is right or wrong, it has to be obeyed until the same court or the Court of Appeal sets it aside. In other words, whether it is “white market” or “black market” injunction as is being unfortunately insinuated in some quarters, it is a subsisting order of a court of competent jurisdiction and has to be obeyed. According to the former Attorney General of the Federation (A-GF), insisting on the strike could lead to fracas with law enforcement agencies. “While I share the sentiment of the NLC and other Nigerians on the hardship occasioned by the withdrawal, being lawless in protesting the withdrawal, would erode the essence of the struggle. The NLC which is also a product of the same law of the land should not be seen to be deliberately overreaching a court of record and flagrantly disobeying its subsisting order.

Sack service chiefs now, say Northern GROUP, Concerned NorthChristians ern Christians yesterday

called for the sack of all security chiefs. It accused them of lacking in basic knowledge of the security challenges facing the country. The group spoke just as a Coalition of Peace Workers in Kaduna yesterday expressed concern over the growing insecurity in the country and asked the Federal Government to dialogue with aggrieved individuals and groups with a view to ensuring lasting peace in the country. The group, in a statement made available to The Nation in Kaduna said the current security chiefs lacked professionalism and genuine patriotism in handling the security challenges facing the country, adding that they should replaced with those who have better knowledge of the nation’s security lapses. The statement which was signed by its Coordinator, Yahuda Peter Marsa questioned the criteria used by the President to declare a state of

From Tony Akowe, Kaduna

emergency in parts of the country, leaving out other parts where innocent lives are being wasted with reckless abandon. The statement reads:They noted that “Nigerians deserve to know the criteria used in declaring emergency because the ongoing security lapses despite the declaration of emergency are a source of worry or at best an indication of foul play somewhere leading to the regular attacks and series of violencein some states. “That the Federal Government should review the welfare of junior police, military and plain clothes security personnel to ensure that they are fairly treated, and enjoying sound remunerations from the higher authorities of the several arms they belong to as they are directly exposed to several risks in the cause of their daily tasks”.

Saraki urges Nigerians to eschew violence From Adekunle Jimoh, Ilorin

•Leader, National Consensus Group, Dr. Tunji Braithwaite addressing a news conference on the labour strike in Lagos…yesterday. With him is National President Arewa Youth Consultative Forum, Alhaji Yerima Shettima PHOTO: ABIODUN WILLIAMS

Why strike is non-negotiable, by civil society groups HE Coalition of Civil Society Organisation (CCSO) unfolded plans to offer legal and medical assistance to protesters during the nationwide anti-subsidy removal strike, which kicks off today. The organisation reiterated its determination to compel President Goodluck Jonathan to rescind his decision on the removal, saying that it is against the wish of Nigerians. Also, the Chairman of the House of Representatives Committee on Legislative Budget and Research, Opeyemi Bamidele, said he would lead the protest in Ado Ekiti, the Ekiti State capital, today, on behalf of the masses. He said: “The policy is killing and diversionary. That is why it is introduced at a time the nation is being pushed to the precipice. I have consulted with my people and their response is that the removal of fuel

Ex-NBA chief advises Labour to obey court order

•Bamidele: I will lead protest in Ekiti By Emmanuel Oladesu Deputy Political Editor

subsidy is a bitter pill to swallow”. CCSO spokesperson Dr. Joe OkeiOdumakin lamented that President Jonanthan preferred to dance to the tune of the International Monetary Fund (IMF), adding that government was imposing a heavy burden on Nigerians who suffer from graft and corruption in high places. Reiterating the group’s support for the strike, she added: “In stopping this deliberate impoverishment of Nigerians, we shall be collaborating with labour and others to ensure a total shut down of the system. We shall not be telling these characters the value of good governance. They know it. Their children enjoy it in foreign countries by the grace of our stolen

money. They have stolen the proceeds of subsidy removal in their heart before they even announced it. It shall not stand”. Mrs Okei-Odumakin called for total support for the action in the interest of the masses. She said: “There will be betrayal on the road. There will be treachery at some points. But Nigerians will win this war against the scourge of looters. Nigeria will be here long after they are gone”. Bamidele, who represents IEkiti Central Federal Constituency, decried what he called police brutality against protesters in some cities, urging Nigerians to remain undaunted. He said: “This brutality against the electorate should be taken as a tonic for the struggle for the liberation of the people from the pangs of inefficient and insensitive leadership”.

HE Senator representing Kwara Cental Senatorial District, Dr Bukola Saraki at the weekend urged Nigerians to eschew violence, saying that is the only way to entrench enduring democracy in the country. Saraki, who is the immediate past governor appealed to Nigerians to relate with one another like brothers and sisters. He spoke in Ilorin, the Kwara State capital during a condolence visit to the family of Mustapha Opobiyi, who died during last week’s protest over the withdrawal of subsidy on Premium Motor Spirit (PMS) by the Federal Government. Saraki, who was represented at the event by the Chairman, Kwara State Local Government Commission, Alhaji Kayode Yusuf and some of his aides said: “Muyideen is no more today but we need to learn some lessons on how to live in peace among ourselves. This was what gave us independence in Nigeria. If our forefathers had been living in crisis, nobody would have given them the much needed independence. “We commiserate with the family of our brother who died during the protest on subsidy, we wish him eternal rest. Apart from the fact that the sad incidence occurred in my constituency, a member of the family of the deceased, Alhaji Saka Opobiyi is a friend to our political leader Dr Olusola Saraki.”

NBA to members: stay away from courts

HE Lagos branch of the Nigerian Bar Association (NBA) has directed its members to boycott courts today in protest of the increase in petrol price. The association said its decision was informed by the willingness to work with the Labour in its planned strike as directed by the national body of the NBA. It arrived at the decision yesterday after a meeting of its principal officers. The Lagos NBA is planning a rally today. It is expected to be attended by its members. The rally will take off at the Lagos High Court and terminate at the State House, Marina. In a statement by a leader of the association, Ebun-Olu Adegboruwa,

By Eric Ikhilae

the NBA said courts are not expected to during the rally and subsequent actions by the organised labour. “In support of the ongoing protests against the removal of fuel subsidy by the Goodluck Jonathan/World Bank-controlled government and in compliance with the directive of the national body, the Lagos NBA decided to hold a rally of lawyers on Monday, January 9, at 7am. “The rally will take off at the Lagos High Court and pass through Tafawa Balewa Sqaure to Defence Street junction and terminate at the State House, Marina. All lawyers based in Lagos, Surulere, Lekki, among others, are to attend the rally.”

THE NATION MONDAY, JANUARY 9, 2012

NEWS PROTESTS OVER SUBSIDY REMOVAL Continued from page 1

•From left: Governors Ibikunle Amosun (Ogun), Rauf Aregbesola (Osun), Kayode Fayemi (Ekiti) and Babatunde Fashola (Lagos) shortly after a meeting of Action Congress of Nigeria (ACN) governors on the removal of fuel subsidy in Lagos ... at the weekend.

President: Boko Haram has infiltrated ROM President govt, military dict where the enemy was coming from, you even knew Goodluck Jonathan

came a stunning revelation yesterday: members of Islamic fundamentalist group, have infiltrated the three arms of government and the military. Jonathan spoke during the inter-denominational service to mark the 2012 Armed Forces Remembrance Day at the National Christian Centre. He described the sect’s mode of operation as worse than the Nigerian civil war because it was difficult to finger where the enemy is coming from. The President confessed that it has become more difficult to address the nation’s security challenges. He said: “This is a particular time when the country has

From Vincent Ikuomola, Abuja

major security challenges. There are explosions everyday. People are dying and are being killed daily without any reason. “It is a period we also call on the armed forces, including those that have retired, to join hands with their colleagues that are still in service and government, to see how collectively we can protect our nation. “I believe we will overcome our immediate challenges. The situation we have in our hands is even worse than the civil war that we fought. “During the civil war, we knew and we could even pre-

the route they were coming from, you could even know the calibre of weapons they would use and so on. “But the challenge we have today is more complicated. I remember when I held a meeting with elders from the Northeast and some parts of the Northwest where the Boko Haram phenomenon is more prevalent, somebody said the situation is so bad that even if one’s son is a member, one will not even know. “That means that if the person will plant a bomb behind your house, you won’t know. “Some of them (Boko Haram) are in the executive Continued on page 58

phones were switched off.” The Nation learnt that most of the labour leaders were in Lagos to perfect plans for today’s action when members of the Senate Committee on Labour and Productivity were waiting for them in Abuja. Labour leaders could not also be reached for comments. Senator Ake had in a statement expressed worry over the consequences of a nationwide industrial action proposed by labour, civil society organisations and professionals against the federal government’s removal of fuel subsidy. He called for restraint, warning that an industrial action could be catastrophic. Ake dismissed the notion that the government was deliberately punishing Nigerians, saying all parties should cooperate in the collective interest of the nation.” The nationwide indefinite strike begins today. In Lagos, officials of Labour and Civil Societies Coalition (LASCO) met to put finishing touches to their plan for the strike. NLC Deputy President, Joe Ajaero said after the meeting that nothing has happened to change Labour’s position. The strike and protests will begin today, he stressed. His words: “Nothing has happened to change our position, not even the House of Representatives session. The President’s speech was also empty; it did not address the issue. We are not intimidated. It is a challenge to the Nigerian

All set for strike today people, not only Labour. Therefore, the strike begins tomorrow (today) as scheduled. If Government is ready to listen to the people, the president should invite us. We will meet with him.” LASCO Secretary Abiodun Aremu named the coordinating centres for the peaceful street protests to include NLC Lagos Secretariat, Yaba, TUC Secretariat, Ikorodu Road, Textile Union House, Acme Road, Lagos State University, Ojo, and Agric Union House, Alaguntan, Iyana Ipaja.NLC is the central coordinating centre. Protesters will converge on NLC office and set out from there for the street rally at 8am. They will enter neighbourhoods to sensitise people on the action. Ahead of the protests, the body enjoins security agencies not to provoke protesters, as the marches are meant to be peaceful. Aremu said: “The declaration of the indefinite strike/ mass action has become necessary in view of the current hike in the prices of petroleum products, especially the PMS from N65 to N141, which the Jonathan presidency has said ‘there is no going back’, and the Nigerian people are also insisting their will, not to pay more than N65 for a litre of petrol, must prevail. “The position of the Labour and Civil Society Coalition (LASCO) – the broad platform of Nigeria Labour Congress, Trade Union Congress and Joint Action Front is unconditional reversal of the wicked

hike in petrol to the official price of N65 per litre as enjoyed by Nigerians throughout the country since June 24 2007, following the struggle of June 20 – 24 He recalled that fuel prices were reverted then from N75 for petrol to N65, diesel to N70 and kerosene to N50; and VAT from 10 per cent to 5 per cent. The Action Plan for the strike is as follows: Today, Monday, January 9 – Enforcement of strike with mass action in workplaces, markets, schools, neighbourhoods and major link roads. Street protests/ procession from 8am. Lagos take off point is the NLC Secretariat, Yaba, while Abuja’s will be Berger Round About. The procession will occupy focal points in all centres across the country. Gani Fawehinmi Park, Ojota is the focal point in Lagos. The community sensitisation and street rally will hold everyday since the action is indefinite. Enforcement and monitoring for compliance is an everyday affair.

•NLC chief Abdulwaheed Omar

Reps advise Executive to suspend petrol subsidy withdrawal

N a desperate effort to stabilise the ship of state, the executive was yesterday advised to pull the brakes on the controversial removal of petrol subsidy. The House of Representatives said the suspension was necessary, in appreciation of the nation’s mood. The 294 lawmakers also urged the organised Labour and other stakeholders to suspend the strike planned for today for further talks on the matter. The House set up two AdHoc committees. One, headed by Patrick Ikhariale (PDP, Edo), is to interface with the representatives of the Executive and Labour with a view of finding common ground. The second, headed by Farouk Lawan (PDP, Kano), is to verify and determine actual subsidy requirement and monitor the subsidy regime. The decision of the House followed an emergency plenary session convened by to discuss Speaker Aminu Tambuwal subsidy removal and the state of emergency declared in some local governments across the country due to the spate of terrorist activities of Boko Haram. The session also discussed Budget 2012. Tambuwal said: “These issues have raised serious concerns among the generality of Nigerians but perhaps more so from organised labour. These concerns are not unfounded but we believe the

Labour to Jonathan: listen to Reps

ABOUR yesterday commended the House of Representatives over its call for the suspension of the removal of subsidy on petrol. In a statement by Nigeria Labour Congress (NLC) acting General Secretary Owei Lakemfa and Trade Union Congress (TUC) Secretary General John Kolawole, Labour said: “This motion, if adopted by the Executive, will immediately douse the explosive tension in the country and restore it to its preJanuary 1, 2012 normalcy. “We commend the House and its exemplary leadership for rising to the demands of the times and in a bipartisan From Victor Oluwasegun and Dele Anofi, Abuja

options are not exhausted, if we are not to unwittingly push the country over the edge.” On the insecurity in the country and the ultimatum given to some people to vacate their residence, the Speaker praised leaders on how they have handled the issues so far. “I Wish to commend the invaluable sense of maturity, understanding and restraint exhibited by the Christian members of the House in connection with the most unfortunate and unwarranted 25th December 2011 Madala Church bombing and spate of other acts of violence on churches elsewhere in which innocent people lost their lives and limbs. “By this act of restraint, the objective of these enemies of Nigeria to falsely give reli-

By Dupe Olaoye-Osinkolu

manner, seeking to steer the country away from a path that may have disastrous consequences.” The statement added: “The House of Representatives displayed exemplary leadership in not just cutting short its break, but also meeting on a Sunday. “If other arms of governance work with the exemplary speed, seriousness, sensitivity and patriotic zeal as the House of Representatives did today (yesterday); our country would be a far better place to live. “The Labour Movement calls on the Senate to also rise up to the expectations

gious coloration to the senseless terrorist escapades has been defeated,” the Speaker said adding: “We, the entire members of the House of Representatives deeply and most sincerely sympathise with the bereaved families and indeed the entire Christian community.” The Speaker reiterated that the National Assembly and the House of Representatives in particular is committed to upholding the fundamental rights of all Nigerians to live, reside and move freely in all parts of the country without molestation from any quarters. “In the light of this, we call on all Nigerians wherever they are residing, to resist any intimidation to migrate or flee in apprehension of the scare being created by those agents of meaningless violence and destruction as we

of Nigerians by concurring with the motion by the House. “We hope and pray that President Goodluck Jonathan will listen to the loud voice of the Nigerian people which this motion has further ventilated by immediately suspending the petrol price hike and allow dialogue and consultation on the subsidy removal.” Labour however said the strike must go on. “The strikes and protests must go on. The Labour Movement reiterates that the indefinite strikes, rallies and mass protests will commence across the country tomorrow (today).

shall render all support that the Executive requires to protect the lives and property of all.” In a hotly debated motion sponsored by Yusuf Tajudeen (PDP, Kogi) and 60 others, the lawmaker noted that while deregulation may not be objectionable, the alternative to proper procedure and good timing of such a policy is not only equally important but indeed imperative, especially in a democratic dispensation. “One is worried that adequate distinction is not made between the Federal Government’s contribution to the subsidy and the contribution of states and local governments. “As a result of this distinction, the savings from the subsidy removal by the Executive is less than N500 billion, whereas the loss that would be occasioned by the

impending strike would be over N500billion. “One is also alarmed that a time when Nigerians are mourning the loss of loved ones resulting from acts of terrorism and grappling with serious challenges resulting in the extreme measures of the declaration of state of emergency in parts of the country, the executive had chosen to introduce a policy as highly volatile as the removal of the fuel subsidy. Tajudeen stressed that the country must first exist harmoniously before it can derive benefits of any public policy, however critically beneficial and well intentioned such a policy might be. Besides, a democratically elected government cannot abandon dialogue, he said. According to him, the various revelations on the administration of fuel subsidy funds are amazing. Expendi-

tures are overshot in obvious violation of the Appropriation Act, he said. In support of the motion, Rafiu Ibrahim (PDP, Kwara) noted that the federal government hinged removal on deregulation but since diesel has been deregulated with no result for the common man, it should be discarded. “Issue of trust in people in government is crucial here, what you did in the past has no effect, how are we sure this will work. Let us rather encourage the government to reconsider the plight of Nigeria.” Aliyu Madaki (PDP, Kano) said: “This is a defining moment for the country. The civil war led to migration from all over. It is the same today, the signs are there. As leaders, we should do what is right, the removal is bad policy and economics, there cannot be peace when there is no harmony in the country. Economy cannot be buoyant when there is war. It should be suspended.” Garba Datti Mohammad (CPC, Kaduna) said the increment amounts to duty that ought to go through the National Assembly. “So, if the subsidy goes, which means the same as duty, it cannot go without recourse to the National Assembly,” he said. Those against the motion had a tough time making their comments as boos and shouts of ‘nos’ rented the air. Certain lawmakers were not allowed to complete their Continued on page 58

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THE NATION MONDAY, JANUARY 9, 2012

NEWS PROTESTS OVER SUBSIDY REMOVAL

Aregbesola reiterates warning against miltary take over O

SUN State Governor Rauf Aregbesola has reiterated his earlier warning against military takeover of governance. He advocated the convocation of a Sovereign National Conference (SNC) to curb the crises facing Nigeria. Aregbesola sternly warned ambitious power-seekers, who might attempt to hide under the fuel subsidy protest to subvert democratic rule to have a rethink and note that the political class will not allow any military rule a foothold in Nigeria anymore. In a speech he delivered at the close of a three-day seminar on Budget and Budgetary Control organised by members of the Osun State House of Assembly in Ejigbo, Osun

State at the weekend, Aregbesola also decried the lack of transparency in the handling and management of Nigeria’s petroleum resources. His words: “We must sound a note of warning to whoever wants to use this opportunity of normal protest of Nigeria people against the policy on fuel subsidy that we will never allow military rule in our territory again for whatever reason. We will never tolerate military rule; we shall fight it, we will never allow military to rule us again”. The governor spoke of the

need for an all-stakeholders’ forum to chart a way a forward for the proper and peaceful administration of the country. He said: “For Nigeria to be really properly structured, appropriately governed and peacefully run, there is the need to have all the concern stakeholders in their various compartment to come together and agree on a formula of co-existence, which is only possible in a SNC. When convoked, Aregbesola argued that the SNC should derive its power from the National Assembly so as to guarantee the peace, harmony and stability of the polity.

He lashed out at antagonists of SNC, saying; “those who claimed that such conference is incompatible with democratic setting are mischievous. Democratic structures can run parallel to the SNC. After all, the conference will have its own power derived from the National Assembly.” In the light of the various challenges of nation building facing Nigeria, the governor submitted further that the SNC remained the “surest way to guarantee peaceful, productive, harmonious and stable coexistence and when we have that, there will be no basis for all the rancours and crisis that we have periodically been experiencing in Nigeria, including that of fuel subsidy crisis”.

Unions order banks shut

ANKS may be shut today as the strike over the fuel subsidy removal begins. The Association of Banks, Insurance and Financial Institutions (ASSBIFI) and National Union of Banks, Insurance and Financial Institution Employees (NUBIFIE), at the weekend, ordered their members to participate in the strike. The groups said they were worried that the subsidy was removed while the Federal Government and Labour were still negotiating. They directed principal national officers and unit presidents and secretaries to embark on the strike, aimed at getting the government to reverse the policy. The labour leaders noted that if the government had the interest of the masses at heart, it would have implemented the policy in phases. NUBIFIE President Comrade Peter Okafor said: ‘’If the government was sincere about the policy, the ongoing negotiation between the government and Labour could have been allowed to reach a logical conclusion.’’ He said it was unfair for the government to, at a time negotiation over the national minimum wage had not been fully implemented, give Nigerians over 150 per cent hike on petrol as a New Year gift.

Ilorin NBA urges members to shun courts

HE Ilorin branch of the Nigerian Bar Association (NBA) Kwara State has directed its members to boycott all court proceedings from today in protest against the Federal Government’s removal of petrol subsidy. Its Chairman Rafiu Balogun said the boycott would be indefinite. The notice reads: “In line with the directive of the NBA, National Headquarters, members are enjoined to boycott courts from Monday 9/1/12 in protests against the removal of fuel subsidy.”

From Adekunle Jimoh, Ilorin

The NLC Chairman, Farouk Akanbi has also disclosed the readiness of his chapter to comply with the directive of the national headquarters to embark on the strike and a rally in protest against the government action. The NLC boss asked all NLC affiliate bodies to get prepared for the strike and the rally which he said would be conducted peacefully.

Oyo urges peaceful protest

•Spokesperson, Coalition of Civil Society Organisation (CCSO), Dr. Joe Okei- Odumakin (right) at a press briefing in Lagos...yesterday. With her are Comrade Biodun Sowunmi, Secretary, National Rebirth Movement, Wahab Shittu and Comrade Sina Loremikan

Minister urges women to support policy

HE need to reduce maternal mortality and make life more bearable for women is part of the reason for the removal of subsidy from Premium Motor Spirit, PMS otherwise known as petrol. The Minister of Women Affairs and Social Development, Hajia Zainab Maina, who spoke over the weekend in Abuja at a Townhall meeting to sensitise women on the benefits of the removal said the Federal Government do not in any way intends to inflict pain on the people. Hajia Maina who described the subsidy as a cankerworm that have eaten deep into the economy, said it must be urgently removed

From Bukola Amusan, Abuja

so that the country can move forward. Her words: “Some of the benefits would be used to offset some of our pending debts, it will be channeled towards the development of infrastructure, to alleviate poverty, provide jobs among other things. “Subsidy issue must be tackled headlong, the funds accruable from the removal will be used to upgrade our health sector, we will also revive the railway sector among other things” she added The women called on the Nigerian Labour (NLC) con-

gress and other bodies to call off the proposed protest against the subsidy removal. The minister who said the town hall meeting was called in order to clarify the conflicting news and stories about the subsidy removal likened the fuel subsidy to breast cancer which cannot be allowed to remain in the body but must be cut off. She said: “Nigeria is into a lot of debts as result of the huge amount the government is paying to retain the price of petroleum in the country, if we don’t remove the subsidy now, in the next five years we won’t be able to sustain this country again. “Only about 200 out of the 167 million Nigerians is ben-

efiting from the subsidy so what’s the essence of retaining it if all of us cannot benefit of it.” Calling on women to support the government and to sensitise their children and husbands, Hajia Maina said women will stand to gain more from the policy given that the moneys released from the subsidy would be used for social welfare, safety nets, skill acquisitions. The president of National Council for Women Society (NCWS), Mrs Nkechi Mbah said the association would take the message to the 177 local government areas in the country, especially women, on the gains of the subsidy.

Jonathan accuses House of inciting Nigerians

RESIDENT Goodluck Jonathan last night accused the House of Representatives of inciting Nigerians against his government by passing a resolution urging him to suspend the removal of petrol subsidy. He also described the resolution as a mere expression of an opinion. He denied jetting out to South Africa or spending N1billion to feed in Aso Rock. The President, who spoke through his Special Adviser on Media and Publicity, Dr. Reuben Abati, accused some of the lawmakers of mischief. He gave his reaction a few hours after the House of Representatives passed its resolu-

From Yusuf Alli, Managing Editor, Northern Operation

tion. The presidency had attempted to stop the session but the House leadership defied its pressure. He said: “Well, I mean what the House of Reps has said is merely an opinion and in a Constitutional democracy, people have a right to hold debates or to discuss. “But I think it is most unfortunate that a House of Representatives will hold a special meeting on a Sunday. To the best of my knowledge, that is the first time that will happen in contemporary Nigerian history, that a special

meeting will be called on a Sunday just to debate an issue of deregulation. “Of course, I followed the debate for the most part on television and the quality of the debate as well. I think the less we say anything about that, the better because I have cited the example of a member of the House misinforming Nigerians about the President’s movement. “And of course you saw how one lawmaker after another had no basic facts. There was so much interest in grandstanding and I think that the entire exercise is more of a comment on some of the individual contributors to the discussion.

“That extraordinary session coming a day on the eve of an attempt by some people to disrupt law and order could be interpreted in some quarters as an attempt by the House of Representatives to incite the Nigerian people against the government and the last time I checked the lawmakers are also a part of this government.” Asked whether the House decision will not be binding on the President, the presidential spokesman said the presidency will not go back on the deregulation of the downstream sector. He added: “The President has made his position very clear in the national broadcast .”

HE Oyo State Government yesterday said it has uncovered plans by some politicians to hijack today’s proposed protest against fuel subsidy removal and disrupt the peace in the state. According to a statement by the Secretary to the State Government, Alhaji Akin Olajide, the alleged plan has been reported to security agencies. The government urged residents to ensure that their proposed peaceful protest is not hijacked by hoodlums.

NLC, TUC, civil society groups set in Ekiti From Sulaiman Salawudeen, Ado-Ekiti

LL was set yesterday for today’s protest against the withdrawal of the subsidy on petrol (also known as Premium Motor Spirit (PMS) by the Federal Government. The coalition of the state chapters of the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC) and civil society groups, including students, traders and non-governmental organisations said the strike would be total. Chairman of the NCL Ayodeji Aluko said workers would comply with the directive of the national bodies of organised labour. His TUC counterpart, Kolawole Olaiya, lamented that the country lacked God-fearing, people-focussed leaders. He said: “President Jonathan has dumped the people. We are going on indefinite strike. It is not time for talk, but action. No retreat, no surrender.” Equally, Mrs. Aduke Seriki, who representated the State Council of Iyalojas, said the fuel subsidy removal had impacted negatively on all aspects of lives especially their trade. Her words: “Our stand as market men and women is that government should return the subsidy and that the pump price should go back to N65 per litre.”

Why Fed Govt is avoiding debate over fuel subsidy, by David-West

ORMER Petroleum Resources Minister Prof. Tam David-West, yesterday explained why the Federal Government was avoiding a public debate with him on his claim that the purported subsidy on petroleum subsidy never existed. David-West, who spoke with The Nation on telephone yesterday, explained that he has been challenging President Goodluck Jonathan, his Petroleum and Finance Ministers, Diezani Allison-Madueke Dr. Ngozi OkonjoIweala respectively to a public debate on the non-exist-

From Bisi Oladele, Ibadan

ence of fuel subsidy, but that they have deliberately ignored his challenge because they know that they will leave the debate disgraced. His words: “For six months, I have been challenging the President and the ministers to a public debate with facts that there is no subsidy. “They have avoided me. Why can’t they come out and disgrace me in public? But they know I will disgrace them with facts and figures.

THE NATION MONDAY, JANUARY 9, 2012

NEWS NEW YEAR MESSAGES

BOKO HARAM MENACE Oshiomhole assures northerners of protection

• Oshiomhole (left) receiving Alhaji Isa Adamu, Sarikin Hausawa of Edo State (second left) and other leaders of the Hausa community during their visit to the governor...at the weekend.

Boko Haram kills three in Borno S USPECTED members of the Boko Haram sect have shot dead three poker players near a church in Biu, a sleepy town in Borno State, residents said yesterday. The killings occurred on Saturday. The area is among those placed under emergency rule through a presidential declaration last week.

Two gunmen on a motorcycle reportedly shot into a crowd of Christians playing cards at an abandoned hotel near a church on the outskirts of the town, killing three and injuring seven others. “The gunmen, believed to be members of Boko Haram, riding a motorcycle, opened fire on a group of Christian residents playing poker outside the abandoned Honeymoon Hotel, near EYN

church, and killed three people,” Ba’na Ubaidu, a resident, told AFP. Biu is about 200 kilometres (125 miles) south of Maiduguri, the homeground of Boko Haram and the state capital. Godwin Shamaki, a Christian resident, gave a similar account. He said: “They just fired into the group of about 15 people playing cards, and killed three people

Shamaki added that seven other persons were injured. “The attackers fled into the bush and disappeared. They are by all indications members of Boko Haram,” Shamaki said. More than 80 people have died in the attacks blamed on the sect since the Christmas Day bombing of St. Theresa’s Catholic Church, Madalla, Niger State.

Anambra community decries killing of its people in Adamawa R

ESIDENTS of Adazi Nnukwu Community in Anaocha Local Government Area of Anambra State have decried the killing of 18 of their people in Mubi, Adamawa State, by the BokoHaram sect. The community leaders yesterday held a Town Hall meeting with Deputy Governor Emeka Sibeudu. They urged the federal and state governments to bring the bodies of their slain sons and daughters back to the state. A member representing Anaocha 11 State Constituency in the House of Assembly, Ebele Ejiofor, said one person was killed in a hotel where he was having a drink. The lawmaker said on hearing about what happened, other members of the community held a meeting

•Demands release of victims’ bodies From Nwanosike Onu, Awka and Adimike George, Onitsha

on how to bring his body back to Anambra. He added that the sect members struck and killed others. Ejiofor said nine indigenes of Adazi Nnukwu have been killed by Boko Haram in Mubi, while nine other victims were from other parts of Southeast. The deputy governor, who was unhappy over the development, promised that the state would take necessary action on the matter. He, however, warned that northerners should not allow what happened in 1967 to repeat itself.

Ejiofor said: “We are talking of one Nigeria, but from what we are witnessing today, it seems there is nothing like one Nigeria any more. “We are pleading with the Federal Government to protect the citizens throughout the federation. Our people will not continue to fold their arms and allow their sons and daughters to be slaughtered like cows.” The people of the area yesterday demanded the bodies of the 18 slain indigenes by Boko Haram in Mubi. A member of the community, Comrade Obi Ifediorah, told The Nation that the community wants to accord them

a befitting burial. He said it is an abomination for members of the community to be buried outside without the consent of their families. Ifediorah, who described the killings as barbaric, lamented that it was a big blow for the community to lose 18 of its people without any provocation. He said he wept for the community and the country when the news of the massacre got to the community. “I weep for this nation. These are happening at a time we are still searching for the regent of the community, who was kidnapped about seven months ago. What an ugly New Year! Mr. President must do something about security in the country and bring the perpetrators to book.”

Let’s unite to halt sect’s menace, says Mark

ENATE President David Mark yesterday urged security agencies and other Nigerians to unite and halt the spate of insecurity occasioned by the activities of the Boko Haram sect. Mark was reacting to attacks and bombings in Adamawa, Yobe and Borno states at the weekend. He condemned what he described as the dastardly acts of the sect, urging its members to allow the voice of reason to prevail. In a statement in Abuja by his Special Adviser on Media, Kola Ologbondiyan, the Senate President noted that

From Onyedi Ojiabor (Assistant Editor) and Sanni Onogu, Abuja the level of insecurity in the country was causing divisions along religious and ethnic lines. He said these have led to the migration of people from one part of the country to the other. Mark noted that a collaboration of security agencies and useful suggestions from opinion leaders could salvage the situation. He said: “I believe it is high time the security operatives devised new strategies to deal with the situation. They

owe it as a sacred duty to protect Nigerians and their property anywhere the citizens chose to live. “All men of good conscience must rise up to the occasion to condemn these acts of terrorism and find solutions to it. Nigerians deserve to live in peace devoid of these unwarranted attacks and bombings.” Mark urged Labour and civil society groups to shelve their planned strike today, noting that the action could undermine peace and security in the already charged atmosphere. He said the unity of Nigeria cannot be compromised,

DO State Governor Adams Oshiomhole has assured northerners in the state of protection. He said Nigerians have a right to live where they choose. Addressing community leaders at the weekend in Benin City, the state capital, the governor said the country belongs to every Nigerian, adding that no citizen needs a resident permit to live in any part of the country. He said: “You are not staying at the pleasure of anybody; you are staying here as a matter of right. Nigeria would only make progress when we accept people for who they are. Wherever you live, you are an indigene of that place. That is my own attitude. “My own life experiences have taught me one thing: that you have no say on where you are born. God decides that. Where you live is your conscious choice and preference. I was born in Edo State, but I chose to live in the North. Whatever I am today is the result of the privileges I had living and working in Kaduna and being accepted. “As far as I am concerned, we are all indigenes of where we live. That’s why when I came into government, I abolished discriminatory school fees. Nigeria can never make progress if people from other parts are reminded that they do not belong to where they live. I thought I should call you for us to deal with the issues appropriately.” The governor assured that the government would take necessary security measures to ensure that people have the confidence to stay and go about their lawful business without fear. Leaders of the Arewa community in the state praised the governor for providing an enabling environment for them to live in peace.

‘Nigeria getting closer to Rwandan genocide’

GROUP, the International Society for Civil Liberties and the Rule of Law (Intersociety) yesterday said Nigeria is getting close to experiencing the type of Rwandan genocide and Somali balkanisation. The group was reacting to the killing of about 212 people within two weeks and 54,000 other Nigerians killed outside the law since 1999. In a statement, the Chairman of the Board of Trustees of the group Comrade Emeka Umeagbalsi predicted that “President Goodluck Jonathan may be the last president of the so-called “united Nigeria” unless his government wakes up from its slumber and miraculously turns things around for the better”. The statement reads: “We pray fervently that he does not end his presidential era like General Mohammed Siad Barre of Somalia; but more like Mr. Mikhail Gorbachev of the former Union of Soviet Socialist Republic (USSR), if these ugly situations continue untamed. In the partitioning of the would-be former Nigeria (if it becomes a last resort and a

•Mark

product of necessity) into six geopolitical entities of Southeast, Southsouth, Southwest, Northcentral, Northeast and Northwest, the people living in the six entities should be allowed to change to their favourite names via referendums afterwards. “Our belief in a united and indivisible Nigeria was firm until recently when it dawned on every Tom, Dick and Harry that the Nigeria’s centre could no longer hold, occasioned by senseless killings of innocent Nigerians at no iota of provocation. How could President Jonathan and the Inspector-General of Police explain the massacre, at a swoop, of 18 indigenes of Adazi-nnukwu Community in Anaocha Local Government Area of Anambra State, Southeast Nigeria; in the Mubi bloodshed of Friday, January 6, 2012? Or, the senseless massacre of four families from Awka-Etiti community in Idemmili South Local Government Area of Anambra State; in the Madalla butchery of December 25, 2011?”

Arewa community in Lagos condemns sect’s activities

adding that God did not make mistake by “keeping us together as a people with common mission and purpose”.

From Adimike George, Onitsha

HE Council of Arewa Chiefs in Lagos State yesterday condemned the activities of the Boko Haram sect. It said the sect is a threat to religious harmony and peaceful co-existence of Nigerians, describing as unfortunate the sect’s burning of churches in the North. The Seriki Hausawana, Alhaji Aminu Idris Yaro and other Arewa leaders addressed reporters in Lagos. Yaro said: “We condemn the activities of Boko Haram and also condemn the call for northerners in the South to relocate to the North. We believe in peaceful co-existence

By Emmanuel Oladesu

of the people of Nigeria, as guaranteed by the Constitution. “We encourage members of Arewa community in Lagos to live in harmony with their host communities, irrespective of tribal, religious and cultural differences. We believe in conflict resolution as enshrined in the Constitution.” At the briefing were leaders of Arewa Youth Consultative Forum, Alhaji Yerima Shetima, Sule Mamman, Aliyu Muhammadu, Musa Mohammed, Abubakar Muhammed and Suleiman Mogaji.

THE NATION MONDAY, JANUARY 9, 2012

NEWS

Ohanaeze urges Igbo to defend themselves

OLLOWING the killing of some Igbo by the Boko Haram sect in the North, the apex Igbo cultural organisation, Ohanaeze Ndigbo, has urged its compatriots to remain wherever they are and defend themselves and their property. In a statement by President of the organisation, Ralph Uwechue, Ohanaeze noted that this became necessary since the Federal Government has failed to check the menace of the sect. It said: “Ohanaeze Ndigbo urges Igbo, who, over the

From Chris Oji, Enugu

years, have established national fruitful presence in different parts of Nigeria, to remain where they are in this country that belongs equally to all its citizens and organise appropriately and effectively to collectively defend themselves and property wherever they are while awaiting appropriate steps by the Federal and state governments as well as other bodies concerned to put an end to this calamitous phenomenon.” The statement reads:

“Ohanaeze Ndigbo has observed with rapidly mounting concern the alarming deterioration of security in the northern part of Nigeria involving the wanton serial destruction of innocent lives, especially of Ndigbo living in that part of the country. “The recent call ascribed to Boko Haram elements that Christians and southerners should vacate the North and for Muslim northerners living in the South to return to the North has brought the crisis to a dangerous climax.

“When in 2011 the United Nations Building in Abuja was bombed with massive loss of lives, Ohanaeze Ndigbo condemned that dastardly act, as it did over others preceding it, and asked the Federal Government to take effective steps to stem the tide. However, in spite of government’s efforts, the only change has been for the worse. “It is now clear that unpatriotic political and religious elements are bent on making our country ungovernable.

Ohanaeze Ndigbo is convinced that enough is enough and while reiterating its urgent demand on the Federal Government to arrest this dangerous development capable of destroying this nation, Ohanaeze Ndigbo calls on Muslim leaders of our country to take immediate steps to rein in their hawks to prevent irreparable damage to the delicate ethno-religious harmony that all wellmeaning Nigerians are strenuously striving to maintain.”

Police impound military uniforms in Kano From Kolade Adeyemi, Kano

HE Kano State Police Command yesterday intercepted a large consignment of military uniforms at a warehouse near the Kano Pillars Stadium in Sabon Gari. The items were believed to have been smuggled into Nigeria through one of the Nigeria/Niger borders in Katsina State. Police Commissioner Ibrahim Idirs, who confirmed the interception to reporters, said the Criminal Investigation Department (CID) is investigating the matter. It was learnt that the military uniforms were smuggled in by a high profile clearing agent. The police confirmed the arrest of some suspects in connection with the alleged smuggling, saying they are assisting the police in their investigation. Idris told reporters that the suspects presented documents which showed that the consignments were authorised by the Ministry of Defence.

Appeal Court upholds Ahmed’s election HE Appeal Court, Ilorin Division, has upheld the election of Kwara State Governor Abdulfatah Ahmed of the ruling Peoples Democratic Party (PDP) in the April, 2011 governorship poll. The appellate court dismissed the petition filed by the Action Congress of Nigeria (ACN) and its candidate, Mohammed Dele Belgore (SAN), in the April 26, 2011 election. ACN and Belgore had approached the Appeal Court seeking to upturn the November 11, 2011 verdict of the election petition tribunal. But the ACN said it would soon make its decision on the appellate court known to the public.

SENATOR Nurudeen Abatemi-Usman, representing Kogi Central on the platform of Peoples Democratic Party (PDP), has commiserated with the families of victims of the accident that occurred on the Okene-Lokoja highway last Friday. About seven people reportedly died in the accident while 19 others were injured. The accident occurred at Obangede junction in Ogaminana when a truck, heading to the North, had a brake failure and ran into a ditch. In a statement by his Media Assistant, Michael Jegede, the senator prayed God to grant the families of the deceased the fortitude to bear the loss. He equally prayed for quick recovery for the injured.

From Vincent Ekhoragbon, Gombe

•Sultan of Sokoto, Alhaji Mohammed Abubakar Sa’ad III (left) being seen off on his way to Sokoto by a member of the Presidential Advisory Council on International Relations, Amb. Hamza Ahmadu, at the Presidential Wing of the Murtala Muhammed Airport, Ikeja, Lagos, on arrival from Dubai...at the weekend

Appeal Court upholds Akume’s election

HE Court of Appeal sitting in Makurdi, the Benue State capital, at the weekend upheld the election of the Senate Minority Leader George Akume of the Action Congress of Nigeria (ACN). The senator is representing Benue Northwest Senatorial District.

From Uja Emmanuel, Makurdi

The appellant, Terngu Tsegba, of the Peoples Democratic Party (PDP), had lost the appeal on all grounds as the preliminary objections raised by counsel to Akume were upheld by the Court of Appeal. The three-man panel, pre-

sided over by Justice Abdul Aboki, in a unanimous judgment, said: “This is the worst unmeritorious appeal…” The appeal was on the nomination and sponsorship of Akume by the ACN. The court held that issues of nomination and sponsorship of candidates remain a party’s affair, adding that any

opponent questioning such is wasting his time. Akume said his victory was a manifestation that the ACN won the last governorship election in the state. Thhhe senator, who was the past governor, noted that throughout the period of the petition against him, he was not shaken because he knew he would win.

HE Niger State Government at the weekend brought succour to the families of victims of the Christmas Day bomb blast at St. Theresa’s Catholic Church, Madalla. It disbursed over N40 million from the N150 million earmarked as cash relief to relatives of 25 victims of the blast. Relations of the 25 victims were given a cheque of N1 million each. Among the beneficiaries was Mrs. Chioma Dike, who lost her husband and three children. The families of Abubakar Mai-sai and Abubakar Maichargi, two passers-by on the day of the explosion also benefitted. The Parish Priest, Rev.

•Doles out N150m From Jide Orintunsin, Minna

Isaac Achi received N3 million on behalf of the church while N1 million was given to St. Barnabas’ (Anglican) Church, Madalla, and two other churches - Methodist Church of Nigeria, Madalla, and The Redeemed Christian Church of God (RCCG). The Chairman of the State Assessment Committee on Madalla Bomb Blast, Mallam Yusuf Tagwai said the gesture, was government’s effort at cushioning the effect of the blast on the families. He noted that “what we are given today is just a relief and not compensation, because

no amount can be paid for life”. According to him, payment was made to relations of the first batch of 25 victims adding that government will extend the same gesture to the rest victims as soon as the verification of their relatives are completed. Tagwai, who is also the Commissioner for Local Government said besides settling the medical bills of 80 injured persons, who are currently under treatment in various hospitals in Suleja, Zuba and the Federal Capital Territory (FCT), the state government will give each of them N250,000.

The Chairman also said that N3 million has been set aside for owners of six shops that were affected by the blast, with each of the owners collecting N500,000 each. On the four churches and 35 other identified buildings that were damaged by the blast, Tagwai said the National Emergency Management Agency (NEMA) has agreed to carry out extensive repairs on all the affected buildings. “Aside from the cash relief we are giving to relations of the victims, the state government and NEMA have been working and we have been looking into how to attend to all the buildings that were damaged by the bomb blast...” the Tagwai said.

Appeal Court upholds Yuguda’s election HE Appeal Court sitting in Abuja, the Federal Capital Territory (FCT), has reaffirmed the election of Bauchi State Governor Isa Yuguda of the Peoples Democratic Party (PDP). The appellate court dis-

condoles with Kogi accident victims’ families

Police restrict motorcycles in Gombe

Niger compensates families of Madalla bomb attack victims

From Adekunle Jimoh, Ilorin

Senator PREVIEW 2012

missed the petition filed by the Congress for Progressive Change (CPC) and its candidate, Yusuf Tuggar, in the April 28, 2011 governorship election. The appellants were seeking to upturn the November 10, 2011 judgment of the state

election petition tribunal. Tuggar had filed a petition on May 5, last year, challenging the victory of Yuguda before the tribunal. He alleged widespread irregularities. In his suit, the CPC candidate prayed that the forensic

checks on disputed ballots and other election malpractices, especially how the votes in the 20 local government areas were tallied, could upturn the results of the polls. The four-man panel, led by Justice Mojid Awode, up-

held the verdict of the tribunal and dismissed the CPC’s petition for lack of evidence. The Senior Special Assistance on Media to the Governor, Alhaji Rilwanu Shehu said the victory has reaffirmed that Yuguda won the election.

THE Gombe State Police Command has restricted the movement of motorcycles within Gombe, the state capital, between 7pm and 6am until further notice. The decision followed an attack on Deeper Life Bible Church in the capital city, it was learnt yesterday. Governor Ibrahim Hassan Dankwambo addressed a meeting of the State Security Council with Police Commissioner Ebikeme Gandi Orubebe. Addressing reporters at the Government House, Orubebe assured the public that the command would forestall a future recurrence. He noted that the restriction on movement imposed on motorcycles was one of the measures to ensure that peace prevails in the state. Orubebe called for compliance, adding that defaulters would be punished. The command urged the residents to go about their legitimate businesses without fear, saying the police would ensure the safety.

Kano churches record low turnout From Kolade Adeyemi, Kano

FEW worshippers attended church services yesterday in Kano for fear of attack by the Boko Haram sect. The Nation investigation revealed that some churches in the Sabon Gari, an area with high population of non-natives, had few worshippers at yesterday’s service. Security men frisked worshippers with metal detectors before allowing them entry. Many churches were empty. This followed the two attacks on churches in Yola, Adamawa State, on Friday and Saturday in which some worshippers were killed.

THE NATION MONDAY, JANUARY 9, 2012

NEWS

Jonathan approves N15b for mass transit scheme

RESIDENT Goodluck Jonathan yesterday approved N15 billion for a mass trans-

port scheme, which he said would cushion the effect of fuel subsidy removal. He also inaugurated the first phase of the scheme, comprising 110 buses. The President debunked a report circulating on social networks, such as Twitter and Facebook, and Blackberry, that he attended the 100th Anniversary of the African National Congress (ANC) in South Africa. He urged Nigerians to ignore the report, insisting that he is in Nigeria addressing national issues. Jonathan spoke at the Eagle Square, Abuja, during the inauguration of the buses. He said though the buses would temporarily offer succour to commuters, the ultimate aim of the scheme is to engender a mass transit culture in the country. Jonathan said with a robust mass transit culture, the cost of transportation would be reduced and comparable to what obtains in developed economies. He said the government is in the process of introducing other programmes to subsidise the transport

•Inaugurates 110 buses •Denies travelling to South Africa From Vincent Ikuomola, Abuja

scheme. The President said contrary to speculations in some quarters, the government would not run the scheme. He said it would be run by private transporters, while the government would subsidise the scheme. Jonathan said the three tiers of government - federal, states and local governments - are involved in the scheme, with the support of transport unions and commercial banks. He said the deregulation of the downstream petroleum sector is in the over-all interest of the country and not to inflict pain on the masses. Jonathan said: “Today, we are formally inaugurating a mass transit programme and I have to emphasise that we are not inaugurating buses, but a mass transit programme for Nigeria. “The Federal Government is involved, the state and local governments are also involved, likewise

the Central Bank, commercial banks, transport unions, manufacturers and importers of mass transit vehicles. “Governors are not here because everybody is afraid of the announced protest by some societies. We decided that every governor must be on ground in his state, so that they would be able to work with security agencies to maintain law and order. “In this country, we don’t have a mass transit culture. When you travel abroad, people go to school, visit friends and travel from one city to another by bus or train. “They don’t use taxis. Taxis are for urgent movement or for those who have more money than the stomach would need. But here, that mass transit culture is not available. “Deregulation or no deregulation, we need to develop a mass transit culture in Nigeria. For that reason, we have set up a committee of some governors and private people, who are involved in mass transit, to come up with a sustainable mass

transit program. “Diesel was deregulated a long time ago by the administration of former President Olusegun Obasanjo, over five years ago, and many of the mass transit vehicles use diesel. “We are discussing how to bring down the cost of transportation. The doubling of fares is not real. It is the reaction of people who perceive that deregulation is anti-people. To vent their anger, they just raised their prices. “The Federal Government is not buying any bus. There are a lot of mischief makers going around to misinform Nigerians, especially by using social networks - twitter, bb, facebook and others - to communicate very wrong things to Nigerians. “Even as I am here with you, people are saying that I am in South Africa with about 100 Nigerians. But that is Nigeria for you. There is a lot of wrong information that is being pumped into the system. “We are not buying a single bus,

but subsidising the mass transit sector. That is what other governments do. We have to come up with programmes and policies to bring the cost of mass transit buses down. Minister of Trade and Investment Dr. Olusegun Aganga said half of the buses were sourced from local manufacturers with 10 years maintenance agreement. Aganga said the government patronised local manufacturers to encourage industrialisation and create jobs. He said government is partnering local automobile manufacturers to increase their capacity to about 5000 units in the next eight months. Aganga said the government is working on a new Automotive Policy to encourage Foreign Direct Investment in the sector. Transport union leaders and members were at the event. The National President of the National Union of Road Transport Workers (NURTW), Alhaji Usman Nazif, said transport unions support the removal of fuel subsidy.

Banker joins Ondo governorship race

Lagosians pray for peaceful 2012

By Emmanuel Oladesu, Deputy Political Editor

HE Lagos State Government yesterday held its annual thanksgiving service at the open field of the Lagos House in Ikeja. In attendance were Governor Babatunde Fashola; his wife, Dame Abimbola; Senator Oluremi Tinubu; House of Assembly Speaker Adeyemi Ikuforiji and his wife; former Governors Mobolaji Johnson, Ndubuisi Kanu and Lateef Jakande; State Chairman of the Action Congress of Nigeria (ACN) Chief Henry Ajomale and officials of the state government, among others. Clerics at the event included the General Overseer of the Redeemed Christian Church of God, Pastor Enoch Adeboye; Pastor Sam Adeyemi; Rev. Ademowo; Bishop Ola Makinde; and Rev. Mercy Ezekiel. Fashola said despite the challenges in the country, it is important to thank God

•From left: Adeboye; Fashola; Ikuforiji; and Commissioner for Home Affairs and Culture Mr. Oyinlomo Danmole...yesterday. By Miriam Ndikanwu

for his blessings in the past year. He said: “In our meeting of thanksgiving today, I urge you all to know that vengeance does not belong to us. This is the ground upon which I centred parts of my address last year, when I said our humanity binds us more deeply than

our faith or ethnic identity. Our humanity is represented by the bonds of blood, food, water and brotherhood that we share.” The governor condemned the recurrent violence in the North and called for religious tolerance. He said: “I am convinced that in the same way our

thanksgiving last year was accepted by God, this year’s thanksgiving will find favour with our creator and he will accept and reward it with His unquantifiable might and presence. “Yes, there are challenges, but I believe that within those challenges lie inherent opportunities. I have always tried to see my glass as half

full, rather than half empty. I urge us all to do the same. If we do, maybe it will be possible to see another side of our challenges, as I have tried to see them.” Pastor Adeboye, in his sermon, said it is important to praise God for the gift of life amid our challenges. He prayed for peace in the country.

Afe Babalola advocates regular training of lecturers

AWYER and Founder of Afe Babalola University, Ado-Ekiti (ABUAD), Aare Afe Babalola (SAN) at the weekend stressed the importance of the training and retraining of lecturers. He spoke in ABUAD at the opening of a two-day seminar with the theme: “Improving teaching methods in Nigerian universities.” Babalola urged university administrators to make training of their lecturers a priority. He said: “Other factors, such as good structures, conducive environment and teaching aids cannot

By Adegunle Olugbamila

ensure quality education without quality teaching. That is why every year, ABUAD embarks on workshops to train its teachers and review teaching methods, particularly nowadays that science improves learning every day. It is, therefore, very important that universities update their teaching methods.” Babalola called for more funding and improved facilities in public universities, arguing that the dearth of facilities has affected the standard of education. He said: “Public univer-

sities are underfunded. If you want quality education and do not put the necessary facilities in place - laboratories, libraries, teaching aids - the quality of education will not rise. So something has to be done to the fundamentals to make it easier and possible for good teachers to deliver quality teaching.” The lawyer said ABUAD was established three years ago to serve as a benchmark for quality and world-class education. He said his experience as a two-time Pro-Chancellor at the University of Lagos (UNILAG) opened his eyes

to the various challenges of the sector, such as overpopulated classrooms, unconducive learning environment, overcrowded students hostels and the dearth of teaching aids/ infrastructure. Babalola said the recommendations of the workshop would be forwarded to the National Universities Commission (NUC), law school and other stakeholders. ABUAD Vice-Chancellor Prof. Sidi Osho said: “The vision of the university is to establish a world-class education centre of excellence in character, sports and vocational develop-

•Babalola

ment, in order to produce sound and agile professionals.” The seminar was attended by representatives of all universities across the nation.

ORMER Chief Executive Officer (CEO) of Trade Bank Chief Jamiu Ekungba has joined the governorship race in Ondo State on the platform of the Action Congress of Nigeria (ACN). Speaking with reporters in Lagos at the weekend, Ekungba said: “If I am the candidate of ACN, to defeat the incumbent governor will not be difficult. The nomination is more difficult than the general election. Once I put my hand on the plough, I don’t look back. “I have integrity and credibility. I have been a banker for 24 years. I am a Fellow of the Institute of Chattered Accountants of Nigeria (ICAN) and until recently, a member of the Governing Council. Ondo State has no reason to be poor. I am out to banish poverty from the state and I have no apology for intending to do that.” He objected to the second term ambition of Governor Olusegun Mimiko, saying the governor established himself as an advocate of “one governor, one term” before assuming office. Ekungba said: “The feeling in Ondo State is that it is the turn of ACN. What is left for the ACN is to put its act together and present the right, competent and courageous candidate.” Ekungba will slug it out at the party’s primary with Mr. Wale Akinterinwa, Mrs. Jumoke Anifowose, Prof. Robert Boroffice, Comrade Sola Iji, Dr. Tunji Abayomi, Dr. Joseph Ajata, Mr. Akinola Awodeyi-Akinsehinwa, Mr. Tayo Alasaoadura, Senator Olorunnimbe Farunkanmi, Mr. Segun Ojo, Dr. Olu Agunloye and Saka Lawal.

THE NATION MONDAY, JANUARY 9, 2012

BUSINESS THE NATION

E-mail:- bussiness@thenationonlineng.net

‘Full e-payment operations begin today’ From Nduka Chiejina, Asst. Editor (Abuja)

ULL implementation of electronic payments of suppliers, all form of taxes, salaries and pensions by both private and public organisations with over 50 employees/pensioners in the country begins today. Known in banking parlance as ‘end-to-end straight through electronic payments’, the Central Bank of Nigeria (CBN) announced the take off of the scheme in a circular BPS/ DRG/GEN/CIR/01/015 dated January 5, 2011 and signed by its Acting Director, Banking and Payments Department, Mr G. I. Emokpae. The banking watchdog directed all Deposit Money Banks (DMBs) to “dishonour instructions with schedules delivered via unsecured methods, such as flash drives, compact discs or e-mail attachments with effect from that date.” As part of efforts to support the initiative and make it succeed, the circular implored the deposit money banks “to properly educate and advise their customers on the adoption and implementation procedures for an end-to-end epayment.” Emokpare added that the purpose of the fora organised nationwide was to enlighten stakeholders on the approved guidelines on the operation of the e-payment system, and to also seek their support for its successful implementation. The sensitisation campaigns were organised in major towns of the six-geopolitical zones including Lagos, Port Harcourt, Enugu, Gombe, Kaduna and the Federal Capital Territory (FCT).

The signing of the MoU with US is to create investment in the nation’s value chain, transnational border market, energy, infrastructure and aviation among other non-oil sector. - Minister of Trade and Investment, Olusegun Aganga

Naira falls on strike fears

Banks disburse N30b loans F to farmers T

ARMERS have started accessing single digit loans from Deposit Money Banks (DMBs) in the country, it was learnt yesterday. Some of the seed companies that are already benefitting from the N30billion scheme include: Savannah Seed & Livestock Limited, Seed Project Company Limited, Manoma Seeds Nigeria Limited, Nagari Seeds Nigeria Limited and Da-All Green Seeds Limited. Eleven banks have so far finalised participation in the scheme. They are Access Bank Plc, Union Bank Plc, Sterling Bank Plc, FirstBank Plc, UBA Plc and Zenith Bank Plc. Others are Diamond Bank Plc, GTBank Plc, Oceanic Bank Plc, Ecobank Nigeria Plc and Stanbic IBTC. This initiative is in line with the Federal Government’s effort at boosting economic development through funding support for the agric sector. It is

By Ayodele Aminu,

Group Business Editor

in furtherance to the execution of a tripartite Memorandum of Understanding (MoU) by the Federal Ministry of Agriculture and Rural Development in partnership with the Federal Ministry of Finance and Deposit Money Banks (DMBs) on November 29, 2011 to provide N30billion funding for the agricultural Input – fertiliser and seeds for the 2012 farming season. Speaking on this development, the Co-ordinating Minister for the Economy and Finance, Mrs. Ngozi Okonjo-Iweala, said: “This shows that when we say we will deliver, we are serious. This innovative plan will get seeds and fertiliser into the hands of farmers directly and help boost food production.” She added: “Nigerians will

see the results where it matters in their pockets and on their dining tables ...” Following the execution of the landmark funding agreement with the banks, the Federal Government through the Debt Management Office (DMO) of the Federal Ministry of Finance has issued sovereign guarantees to the banks securing 70 per cent of the principal of loans granted by participating banks thus granting agrodealers access to funds required for successful take off of the current administration’s Agricultural Transformation Agenda. This is consistent with President Goodluck Ebele Jonathan’s 2012 budget speech declaration, which emphasised the administration’s commitment to economic growth

through the development of the agricultural sector. The Finance Minster said: “This shows that when we say we will deliver, we are serious. This innovative plan will get seeds and fertiliser into the hands of farmers directly and help boost food production. Nigerians will see the results where it matters - in their pockets and on their dining tables .” In his remarks the Minister of Agriculture and Rural Development, Dr Akinwunmi Adesina, noted: “The Federal Government’s Agricultural Transformation Initiative would empower Nigerian farmers, create millions of jobs as well as result to huge savings in foreign exchange.” On the initiative, Mr Ola Richards, Vice-President of Seed Dealers Association of Nigeria, said the association is extremely grateful to the Federal Government for fulfilling its promise by solving the perennial problems faced by seed dealers and farmers.

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

-N6.503 trillion -Z5.112trillion -$10.84 trillion -£61.67 trillion

RATES Inflation -10.5% Treasury Bills -7.08% Maximum lending-22.42% Prime lending -15.87% Savings rate -2% 91-day NTB -15% Time Deposit -5.49% MPR -12% Foreign Reserve $33.01b FOREX CFA EUR £ $ ¥ SDR RIYAL

0.2958 206.9 242.1 156 1.9179 238 40.472

• Minority Leader, House of Representatives, Femi Gbajabiamila(middle) discussing the removal of fuel subsidy with Members House of Reps Solomon Adeola(left) and Peter Akpatason, during the House Emergency session on the ‘State of the Nation,’ at the National Assembly, Abuja ... yesterday. PHOTO: ABAYOMI FAYESE

Analysts seek phased approach to subsidy removal

HE removal of fuel sub sidy could be done in phases rather than outright removal, the Renaissance Capital (RenCap), an investment and research firm has said. The firm recalled in a statement that since 2000, the authorities have announced seven petrol price hikes, and each time the price hike was negotiated down following a strike. It predicted that government’s action at this time, may not differ. ”This time around the authorities have instituted more than just a fuel price hike. They have completely removed the fuel subsidy, which implies an increase in the retail price of petrol to about NGN140/l, from N65/l previously,” it said. RenCap said the increase represents a more-than-two-

By Collins Nweze

fold increase in the cost of petrol, which would be the largest increase in over a decade. Consequently, the research firm said it expects sizeable participation at this week’s proposed strike action. It said the government will remain committed to removing the petrol subsidy and redeploying the saved funds for more productive expenditure, but will still bow to popular pressure and phase out rather than simply scrap the subsidy. Also, the analyst said it expects inflation to rise to the mid-teens in 2012, from a projected average of 11 per cent in 2011, if the petrol subsidy is completely removed. “The impact of the petrol price hikes could go beyond simply pushing up transport costs. It is also expected to affect the cost of

producing goods and services. In particular, the prices of food, clothing and footwear, furnishings, as well as housing and utility costs may tick up on the back of the scrapping of the petrol price subsidy. In addition to higher petrol prices, the cost of producing electricity from petrol-powered generators is also expected to rise,” it said. According to firm, the impact of the higher petrol price on food will resonate with most Nigerians, as it makes up half of the cost of the average Nigerian consumer’s shopping basket. Head Africa Research at Standard Chartered Bank, Razia Khan, also noted that the overall impact on inflation is likely to be severe. ”With little in the way of precedent for a wholesale lifting of the fuel subsidy – previ-

ously-attempted price increases were more modest – the overall impact on inflation is likely to be severe. With a backdrop of recent FX market pressure, and still-elevated government spending, the risk of secondary price increases is substantial, even given the impact of higher fuel prices on disposable incomes,” she said. Khan also projected that the apex bank is likely to maintain a tight monetary policy, perhaps even front-loading further policy tightening, should inflation accelerate far beyond Nigeria’s single-digit target for a sustained period of time. “Although bond yields may remain pressured near-tem, the naira is likely to benefit from greater transparency in the balance of payments, lower import demand and it is hoped faster forex reserves accumulation,” she said.

• Interbank rate drops

HE naira fell against the United States’ dol lar on the interbank foreign exchange market last Friday on fear the planned strikes and protests against a hike in fuel price could disrupt business activities this week. The naira, according to Reuters News, closed at N162.10 to the dollar, 1.32 per cent weaker that the N159.95 to the dollar Thursday’s close. “Some importers are buying up dollars because of the uncertainty on the likely impact of the planned labour union strikes and protests against the withdrawal of fuel subsidy on their business next week,” one dealer said. Nigeriantrade unions threatened last Wednesday to call a national strike starting next week, which they said would shut down large parts of the country’s businesses, including the banking sector, if the government failed to restore a fuel subsidy. Traders said the naira was under pressure on Friday as some importers buy up dollars to secure their obligations in case the planned strikes disrupt business activities and the foreign exchange auctions next week. Meanwhile, Nigeria’s interbank lending rates dropped further last week to an average of 13.50 per cent from 14.08 per cent last week as liquidity supported transactions, despite the Central Bank of Nigeria (CBN) embarking on an aggressive mop-up. Dealers said the market opened trading with a cash balance of about N290.64 billion ($1.82 billion), compared with a balance of about N168.58 billion last Friday.

Govt boosts mass transit scheme with N15b

HE Managing Director of urban Development Bank of Nigeria Plc, Mr Adekunle Oyinloye, yesterday in Abuja assured of thorough and efficient management of the additional N15 billion approved by the Federal Government for its mass transit revolving loan scheme. Speaking after a meeting of the nation’s transport stakeholders with the Minister of Trade and Investment, Mr Olusegun Aganga, on Federal Government’s mass transit intervention programme aimed at cushioning the effects of the removal of petroleum product subsidy, Mr Oyinloye, assured that that the government’s directives on the loan scheme will be implemented to the letter. “As managers of the fund, we, at UDBN, will ensure that the government’s aims of reducing the effects of the subsidy removal were realised,” he added.

THE NATION MONDAY, JANUARY 9, 2012

2012 OUTLOOK

THE NATION MONDAY, JANUARY 9, 2012

• Onasanya

• Rewane

Bank CEOs, analysts’ verdict With the unexpected removal of fuel subsidy, this year will definitely be tough for individuals and business concerns as they will have to readjust their budget to accommodate the over 100 per cent increase in the price of petrol (Premium Motor Spirit). While individuals will absolve the extra cost; business concerns will pass it on to the consumers, whose incomes are not likely to be increased. But will this cause inflation, weaken or strengthen the naira or affect Nigeria’s Gross Domestic Products (GDP)? In this interview with The Nation’s GROUP BUSINESS EDITOR, AYODELE AMINU, top bankers (Managing Directors of FirstBank of Nigeria Plc, Bisi Onasanya; United Bank for Africa Plc, Phillips Oduoza; Sterling Bank Plc, Yemi Adeola) and frontline economists/analysts – Bismark Rewane – MD, Financial Derivatives Limited and Dr Ayo Teriba – MD Economic Associates, provide answers to these and other issues.

RE we likely to see an increase in interest rate next year given the six per cent increase in the 2012 budget in addition to the expected savings from the subsidy removal? Onasanya: Generally, interest rate direction is a function of inflationary expectation and market participants’ perception of the health of the banking industry. This was the case when the interbank rate rose to over 30 per cent in 2001-2002 (shortly after the introduction of universal banking licence), 2006 (soon after the regulator-induced banking consolidation), and 2009 (just before the special audit and the introduction of the Central Bank of Nigeria’s) guarantee on interbank loans aimed at protecting the ‘rescued’ banks. More recently, we have seen rates at the interbank market move in tandem with the upward reviews of the Monetary Policy Rate (MPR) at the Monetary Policy Committee (MPC) meet-

‘

Generally, interest rate direction is a function of inflationary expectation and market participants’ perception of the health of the banking industry -Onasanya

’

‘

We are optimistic about the Nigerian Stock Exchange market and expect there to be an improvement. The year to date loss in market capitalisation is at about 20 per cent, better than 2009’s 30 per cent loss but not comforting -Rewane

ings. The upward review of the Cash Reserve Ratio (CRR) had also pushed up inter-bank rates to a high of 18.06 per cent as at October 14, 2011. As has been seen, changes in MPR and its

’

corridors continue to influence the direction of deposit and lending rates. The recent scenario suggests the improbability of single digit inflation and since the price stability goal of the

CBN in the medium- to long-term is single digit, and high domestic economic growth projection, the apex bank may not reduce MPR in the near-term (which is also an apt proactive response to possible fuel pump station price deregulation and implementation of new minimum wage law). We may, depending on the final decisions of the MPC on MPR see relative rate stability at present level or at worst, marginal increase in interest rate this year. It is, however, unlikely, given competition and increased liquidity in the banking system that any interest rate hike on the MPR, will be passed to borrowing customers. Oduoza: There is the possibility of an increase in interest rates this year due to the likely increase in inflationary pressures from the implementation of the minimum wage, Continued on page 12

THE NATION MONDAY, JANUARY 9, 2012

2012 OUTLOOK Continued from page 11 removal of fuel subsidy, increased government expenditure etc. This might result in fluctuations in the MPR rate this year to combat this and keep inflation in check. Adeola: I do not believe that a six per cent year-on-year growth in public spending is sufficient to push inflation to such a level that monetary tightening becomes inevitable; therefore the projected increase in public spending may not be the main driver of inflationary pressure this year. It is possible, (in fact, likely) that we will see higher interest rates driven in part by the need to contain inflation arising from the withdrawal of petroleum subsidies. While in truth the impact of gasoline prices on the price of the average item in the inflation basket is itself subject to some debate, what we know from past experiences is that retailers and other economic agents tend to increase prices often as a psychological response to increase in energy prices in Nigeria. I am aware that the Monetary Policy Committee of the CBN has highlighted this as a key concern and therefore attempted to address this proactively over the last few quarters. One therefore hopes that these efforts will keep monetary growth contained and inflation stable obviating the need for an increase in the policy rate. But I anticipate a modest increase of about 50 to 100 basis points (0.5 to 1per cent) over the first half of the year. Rewane: It is unlikely there will be a further hike in interest rates from its current level of 12 per cent this year. We expect interest rates to decline. The CBN has two tools it can use to fight inflation rate- the interest rate and the exchange rate. In 2011, the CBN made use of the two tools to fight the same problem - by increasing the monetary policy rate six times to a high level of 12 per cent and also allowing the exchange rate to depreciate from N150/$ to N156/$. If inflationary pressures persist due to the removal of fuel subsidies amongst other factors, the CBN will most likely employ the use of the exchange rate as its monetary policy tool instead of the interest rate, which was the major tool employed in 2011. Allowing the exchange rate to depreciate will reduce money supply as importers will exchange more Naira for a given amount of foreign exchange. The reduction in money supply will most likely lead to a decline in the inflation rate. This is because inflation persists in a high money supply environment. Teriba: We have to be careful on profiling the Nigerian budget. I don’t think that the budget will put much pressure on the interest rate. I foresee a downward pressure on the interest rate going forward. However, I think that the CBN is beginning to see the results of the steps taken that saw the increase in MPR and Cash Reserve Ratio (CRR). The CBN may overtime, repeal interest rate. Besides, I don’t think that Nigerian government is running on deficit budget. Government through investment is receiving far more than it is spending. That on its own should reduce interest rate. Besides, savings from the Excess Crude Account (ECA) is like three times that of deficit. This should also lead to lower interest rate. Is there any likelihood of the European economic crises spreading to Nigeria? Onasnaya: In the current globalised world where economies around the world have integrated, the spillover of crises from one system into another is inevitable. As we speak, the mainstay of Nigerian economy remains earnings received from the oil export whose price is determined by

‘The domestic banking system in Nigeria enjoys a lot of credit facilities from European based international banks and a large number of portfolio investors with interest in the Nigerian market are based in Europe. My view is that given the contribution of Europe to global Gross Domestic Product (GDP), we can only hope that policy makers are able to persuade the market that they have the right solutions to the problems undermining confidence right now’ -Adeola • Adeola

Bank CEOs, analysts’ verdict the performance of the world economy. Over 90 per cent of Nigeria’s foreign exchange earnings are from crude oil export. Lower economic projections across many developed and European economies suggest possible decline in crude oil demand, which may translate to lower oil prices in the international market .The European economic crisis, will definitely affect the Nigerian economy as the sovereign debt crisis persists. As accretion into the country’s external reserves drops, the CBN’s ability to fund demands in the forex market will be affected because of the direct correlation with exchange rate stability goal of the apex bank. The government is being proactive by the oil price benchmark projected for this year’s budget. Oduoza: Nigeria is not immune to the effects of the Eurozone Sovereign Debt crisis especially as Europe accounts for about 33 per cent of our exports most of which is oil. In the event the Eurozone crisis deteriorates materially and triggers a double dip recession, this will affect oil prices, which will impact us here in Nigeria as over 80 per cent of government revenue comes from oil. Adeola: I hope not but one cannot rule it out. It’s an interconnected world and Europe remains a major manufacturing centre (most notably Germany) and any economic slowdown in Europe will likely affect oil price – our major source of export revenue. Also, Europe is a significant trading partner for Nigeria - you may recall Chancellor Merkel was in Nigeria a few months ago to discuss energy security with Nigerian officials. The domestic banking system in Nigeria enjoys a lot of credit facilities from European based international banks and a large number of portfolio investors with interest in the Nigerian market are based in Europe. My view is that given the

contribution of Europe to global Gross Domestic Product (GDP), we can only hope that policy makers are able to persuade the market that they have the right solutions to the problems undermining confidence right now. Rewane: The EU is one of Nigeria’s most strategic trading partners, with 23.5 per cent of total exports sold to the European Union. Apart from trade, the bulk of Foreign Direct Investment (FDI) in Nigeria is held by EU investors. So any economic and/ or financial crisis or adjustment in the EU is significant to Nigeria. If Nigeria’s foreign investors are affected by the economic crisis, this will reduce their appetite to invest and a decline in FDI, would impact negatively on Nigeria’s current account. Although, there is limited integration in global manufacturing and financial networks and Nigeria and these we expect, will shield the country from the financial crisis. Teriba: It has already spread to Nigeria. It is just that many of us do not fully understand it. The European governments are broke. But I am not saying that ours is not broke. Remember that emerging market economies’ financial system suffer more in times of crisis because they look more to the developed market. Even when liquidity is scarce, it is hardly so in emerging markets. However, for Nigeria, we have felt the pain of the crisis because as oil prices rise, we see demand pressure on the local currency, the naira. Will more jobs being created this year? Onasanya: Several initiatives are being rolled out by the government to ensure jobs are created this year. Job creation imperative for Nigerian teeming youth is one of the pillars of 2012 budget proposal presented by President Goodluck Jonathan as part of its transformation agenda. I

am aware of the Youth Enterprise with Innovation in Nigeria (Youwin) initiative of the Federal government which I believe should provide jobs. The quantum of jobs to be provided is however, something else entirely. There may be need for collaborative efforts from the private sector on job creation. As we speak Firstbank is playing its role in job creation as we are currently in the process of recruiting the next batch of 600 fresh graduates, as part of our annual recruitment exercise. Oduoza: Yes, there is a great possibility of jobs being created next year. The economy is expected to grow by about 6.8 per cent this year, which indicates significant opportunity for job growth. We also believe the effects of government reforms in the Agriculture, Power and Oil & Gas sectors will begin to bear fruit and further spur job creation Adeola: I would argue that there is no time that jobs are not being created. I believe the concern that you’re highlighting is if the net gain from job creation is material enough to dent the very high unemployment level in the country. To that my response is that the right macro-economic policies are being pursued in an effort to improve economic competitiveness. The most important engine of job creation in most countries is small businesses and policies that make these more competitive will therefore enhance job creation. There are a number of specific policies targeted at improving the agric sector that if successful (as I hope) will result in massive job creation. Other reform initiatives spanning power, public infrastructure and SME competitiveness, all have the potential to improve the unemployment situation but they will need to be sustained over a long period in order to be effective. Rewane: Jobs will be created next

year; the question is if the government will be able to provide enough jobs that would lead to a decline in the unemployment rate. The unemployment rate as recorded by the NBS has inched up to 23.9per cent from 19per cent in 2010. This has also pushed the misery index which measures the level of hardship in Nigeria to 34per cent. The misery index is calculated using the unemployment and inflation rates of the economy. The government has its work cut out in fighting the growing unemployment rate which poses serious risks such as the likelihood of a breakout in social unrest. The FG plans to diversify the economy from its oil dependence to other sectors such as agriculture through which more jobs will be created. Teriba: The Finance Minister has said government is committed to creating jobs. But government has to be more explicit. Are we expecting jobs in the first quarter or in the second quarter of the year? Also, in which aspect of the economy should we expect the jobs? These things have to be clarified. Are we likely to see further depreciation or appreciation of the naira this year? Onasanya: Although, the initial restriction of foreign exchange supply to Bureau De Change (BDC) temporarily put pressure on the exchange rate, the recent liberalisation of the investment corridor allowing foreign investment in Government bonds and Nigerian Treasury Bills with less than one year maturity as well as reversal of the restriction on BDC have combined to ease the market. However, the outlook for recovery of the worlds’ economy with its attendant impact on oil price does not suggest projections for significant revenue increase. Coupled with domestic demand pressure on import bill, the trend may tilt towards depreciation. The extent to which this will be allowed would depend on the apex bank’s priorities and reContinued on page 13

THE NATION MONDAY, JANUARY 9, 2012

2012 OUTLOOK Continued from page 12 sources available to defend the naira. Uduoza: The severity of the fallout of the European sovereign debt crisis will be the main trigger in relation to the depreciation / appreciation of the Naira. A significant fall in the oil price will adversely affect our foreign reserves resulting in additional pressure being put on the Naira due to the import dependent nature of the Nigerian economy. Government moves in this area to stimulate local production and reduce the demand for foreign exchange should assist to cushion any challenges in this regard Adeola: I believe the Central Bank Governor has opined on this indicating a preference for a stable regime within a 3% trading band in order to create a platform for proper planning by all economic agents. He further indicated that barring any contagion arising from the European sovereign debt crisis, things should remain stable. I totally share this view. The only caveat I will add, is that if oil prices fall below $90 per barrel this year, devaluation might be inevitable. Rewane: There will be a convergence in rates across market segments. The naira we forecast will depreciate further to N160/$ in the official market. Currently, the Naira is trading at N157 to a dollar. The parallel market should experience an appreciation to N163/$. Teriba: If the Euro situation improves, you should also expect improvement in the economies of emerging markets and their currencies. The position of the forex market will also depend on these factors in the coming year. Are we likely to see more consolidation of the banking industry? Onasanya: The current banking sector reform with its attendant impact on bank capitalisation supports further consolidation of the banking industry. Therefore consolidation should be expected, with increased competition in the banking industry. Oduoza: Yes I believe, we are likely to see more consolidation in the banking industry. We still see the possibility of more foreign banks coming into the country and undertaking acquisitions. Tier II Banks are also likely to be candidates for mergers/acquisitions in order to survive in an increasingly competitive market Adeola: The Nigerian banking sector is a very dynamic one and one cannot rule further consolidation out. However, given the extent of M&A activity in 2011, I expect to see the final completion of the deals already announced in this round before any new activity. Having said that, I expect one or two deal announcements in relation to those institutions where AMCON currently holds 100per cent of the equity. Rewane: The banking sector just came out of a crisis. The worst seems over. The CBN in this month’s Forbes report stated that the banking crisis was over. So there isn’t going to be any more consolidation going on. Instead we expect to see more growth in banks and more efficient use of their balance sheets. We also expect a change in their accounting standards with the introduction of the IFRS and this will led to more efficiency and with more efficiency, comes competition and growth. Teriba: That question should be better answered by the CBN. Are we likely to see an increase in the country’s Gross Domestic Product (GDP)? Onasanya: The Nigerian Bureau of Statistics (NBS) has projected that the economy (real GDP) would grow by 7.98 per cent in 2011. This represents an increase of 13 basis points over

Bank CEOs, analysts’ verdict

• Oduoza

‘Yes, there is a great possibility of jobs being created next year. The economy is expected to grow by about 6.8 per cent in 2012 which indicates significant opportunity for job growth. We also believe the effects of government reforms in the agriculture, power and oil & Ggas sectors will begin to bear fruit and further spur job creation’ -Oduoza the 7.85per cent growth recorded in 2010. Outlook for Nigeria 2012 GDP is on the positive side. In the first half of 2011, real GDP grew by 6.4per cent driven largely by agriculture, and this trend is projected to continue for the rest of the year. The Federal Government is strong in agricultural financing, in addition to the existing agriculture funding schemes. In support of this initiative, the CBN recently launched Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL). NIRSAL is a dynamic and holistic approach that tackles agricultural value chain that will enable banks lend with confidence to the sector. Other promising sectors that may drive growth for the rest of the year include: wholesale/retail trade, telecommunications, and Oil & Gas. Oduoza: Yes we are. As mentioned earlier, the nation’s GDP is projected to rise by 6.8 per cent this year. Furthermore, the GDP is to be rebased to 2008 which is expected to result in an increase better reflecting the current level of economic activity in the country. Adeola: Without a doubt! I expect a continuation in the expansion of domestic output at the current rate of about 7.5per cent. In fact, with the plan to change the base year applied for computing the GDP as recently

announced, I anticipate a substantial upward revision as we capture newly formalised economic activities and add new sectors in reflection of changes to the structure of the economy. Rewane: With the on-going reforms, and the FG’s determination to increase the growth rate of the economy, we should see an increase in the country’s GDP though a marginal one due to the uncertainties in the global economy. Forecasting whether a country’s economy will grow or not is subject to various factors such as the successful implementation of reforms in key sectors. The IMF forecasts a GDP growth rate of 6.6per cent whereas the EIU predicts a 5.8per cent growth. The FG has a target of 7.2 per cent. We predict a possible growth of 6.5per cent. What effects will the removal of the petroleum subsidy have on Nigerians generally vis-a-vis cost of transportation, food and the economy generally? Onasanya: The CBN Governor Sanusi Lamido Sanusi at a recent event stated that between January and November, 2011, USD 8 billion dollars were sold to oil marketers by the CBN. In addition and within the same period they received another USD8 billion as subsidy. He stated further that Government

earned less for that period due to losses and that by implication the Government resorted to borrowing to pay the oil marketers. The Governor said fuel subsidy removal would relieve pressure on Government borrowing. At present levels, it might get to a stage where the country would experience financial crisis if the subsidy is not removed. If the fuel subsidy debate is viewed from this perspective, it might serve as a strong justification for the subsidy removal. Theoretically, the subsidy withdrawal may have negative impact on cost of living generally. How this is managed by Government is what matters. The truth however, is that the impact of the increased financial burden should be mitigated by the use to which the savings there from are deployed. Oduoza: The removal of petroleum subsidy will provide the federal government with funds which will be used to build critical infrastructure necessary to support the growth of the Nigerian economy. It will attract investment in the midstream and downstream Oil and Gas sectors which will further create jobs for Nigerian citizens and reduce pressures on our foreign reserves as demand for forex to import refined products will reduce. Adeola: The effects remain to be

seen. I believe we will see higher prices of goods in the near-term given that the initial reaction is often psychological rather than facts based. I would argue that most goods are transported using diesel rather than petrol and that is already sold at a price devoid of any subsidy so the impact should be minimal. However, you know as well as I do that our previous experiences do not bear this out. In the longer term, we hope that the savings realized from the withdrawal of subsidies are applied towards improving social services to make the economy more competitive. Rewane: The effects are generally short-term. On cost of transportation, there will be an increase as pump price of fuel is likely to go up by about 92 per cent to N125 per litre. Concerning food prices, the major transporters of food products drive diesel trucks and diesel is already deregulated. So there should not be any major hike in food prices. But because of the perception that prices of other items are going up, traders will want to use the opportunity to hike prices, leading to a temporary increase in food prices. On the economy as a whole, the removal of fuel subsidy opens the downstream sector to new investments which would aid the growth and development of the sector and the economy as a whole bearing in mind that Nigeria is an oil dependent nation with 90 per cent of its export earnings gotten from oil revenue. Teriba: The fact is that if there is hike in the cost of transportation, such hike is unlikely to be sustained. The only time that cost shock can be permanent is where there is commensurate increase in earnings otherwise, people will be forced to reduce demand for certain items that are not necessary. I believe that fears of hike in inflation are unfounded. People thinking that subsidy removal will raise inflation may not be correct. Besides, at the lower level, the average disposable income will fall. The subsidy removal is not likely to be inflationary; it is likely to be deflationary. Will fixing the refineries still offer any option or palliatives? Onasanya: Fixing the refineries should make room for efficiencies in refined products cost thus reducing the pump prices of petroleum products in the long run. It is expected that with refineries running efficiently, cost of local production should be lower than cost of imported products. Thus efficiency should be passed to consumers. Oduoza: The fixing of refineries is imperative for the country irrespective of the removal of the fuel subsidy as the multiplier effect regarding increase in FDI, job creation and forex demand saved will be significant. Adeola: Our recent history suggests that the answer to this is no. Looking farther afield to more developed societies, I believe that most people now agree that government is better at providing an enabling environment, setting ground rules and regulating operator behaviour instead of operating as a market participant. Rewane: The problem of dilapidated refineries is as a result of ownership and governance. If refineries are owned by private entities, they will produce, be liquidated or taken over. The government will keep viable enterprises afloat with tax payers’ money. The deregulation of the industry will incentivise new entrants into the business who will build new refineries or/and take over the existing ones. Because their prices are Continued on page 14

THE NATION MONDAY, JANUARY 9, 2012

2012 OUTLOOK Bank CEOs, analysts’ verdict Continued from page 13 now regulated and their profits are a function of their efficiency, we are likely to have uninterrupted supply of refined products. Any hope for the Nigerian equities market (NSE) this year? Onasanya: It is becoming increasingly obvious that the Nigerian Stock Exchange (NSE) is relatively small and unrepresentative of the size of the active sectors of the nation’s economy, underdeveloped, illiquid and operated in isolation from other markets. The Committee on Capital Markets’ pronouncement to support the passing of legislation for listing Telcos this year is already generating public interest. Preliminary extrapolated projections of the Telcos (MTN, Airtel, Glo and Etisalat) market capitalisation could account for an average of N6.76trillion. (MTN-2.4trillion; Airtel-N1.55trillion; GloN1.70trillion and EtisalatN1.1trillion) by Q2 2012. This figure is far higher than the current market capitalisation of N6.38 trillion as at November 22, 2011. The same reasoning applies to the energy sector comprising of power generation and distribution companies listed on the bourse of the NSE, once the process of their privatisation is completed. The potentials therefore are indicative of a more robust equities market that would translate to improved stock prices ultimately. Oduoza: The Nigerian equities market has witnessed a significant downturn in 2011 with market capitalisation falling from N7.9tr in 2010 to about N6.5tr this year. I believe the market has bottomed out and we should witness as appreciation in market capitalisation between 15 per cent- 20 per cent this year driven by the underlying growth in the economy and reforms being implemented by the government. Adeola: I believe so, but so far, confidence has been lacking on the part of investors. The current market prices of most assets cannot be justified using any known measure. When you review banking stocks for example, practically every institution is currently priced at a significant discount to book value. We all know that the quality of the loan book of Nigerian banks is much improved after the CBN / AMCON intervention and the quarterly earnings’ releases suggest a good year from a performance standpoint for the banks

but this has not reflected in market price because confidence is lacking and purchasing power is low. Therefore, despite the downside risks that could emerge from a possible recession in Europe, all things considered, I would expect improved market prices in the second half of this year. Rewane: We are optimistic about the Nigerian Stock Exchange market and expect there to be an improvement. The year to date loss in market capitalisation is at about 20 per cent, better than 2009’s 30 per cent loss but not comforting. Share prices are the present value of projected earnings of companies. All indicators seem to confirm that Nigerian companies especially banks are likely to be more profitable this year than in the previous year. Therefore, we are optimistic that the all share index will recover no less than 25-40 per cent of its value this year. We are also encouraged by the steps that have been taken by the regulatory bodies to sanitise the market and to encourage international institutional investors to increase their flow into Nigeria. Teriba: What we are seeing today in the Nigerian equity market is global financial realities. If the global financial realities do not improve, Nigeria equity market may not improve. Are we likely to see an increase in the country’s GDP? Onasanya: The Nigerian Bureau of Statistics has projected that the economy (real GDP) would grow by 7.98per cent in 2011. This represents an increase of 13 basis points over the 7.85per cent growth recorded in 2010. Outlook for Nigeria 2012 GDP is on the positive side. In the first half of 2011, real GDP grew by 6.4per cent driven largely by agriculture, and this trend is projected to continue for the rest of the year. The Federal Government is strong in agricultural financing, in addition to the existing agriculture funding schemes. In support of this initiative, the CBN recently launched Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL). NIRSAL is dynamic and a holistic approach that tackles agricultural value chain that will enable banks lend with confidence to the sector. Other promising sectors that may drive growth for the rest of the year include: wholesale/retail trade, telecommunications, and Oil & Gas. Oduoza: Yes we are. As mentioned earlier, the nation’s GDP is projected

• Teriba

to rise by 6.8% next year. Furthermore, the GDP is to be rebased to 2008 which is expected to result in an increase better reflecting the current level of economic activity in the country Adeola: Without a doubt! I expect

a continuation in the expansion of domestic output at the current rate of about 7.5 per cent. In fact, with the plan to change the base year applied for computing the GDP as recently announced, I anticipate a substantial upward revision as we capture

‘What we are seeing today in the Nigerian equity market is global financial realities. If the global financial realities do not improve, Nigeria equity market may not improve’ -Teriba

newly formalized economic activities and add new sectors in reflection of changes to the structure of the economy. Rewane: With the on-going reforms, and the FG’s determination to increase the growth rate of the economy, we should see an increase in the country’s GDP though a marginal one due to the uncertainties in the global economy. Forecasting whether a country’s economy will grow or not is subject to various factors such as the successful implementation of reforms in key sectors. The IMF forecasts a GDP growth rate of 6.6per cent whereas the EIU predicts a 5.8per cent growth. The FG has a target of 7.2per cent. We predict a possible growth of 6.5per cent.

MARITIME

Private participation holds ace for maritime

HE growth of the maritime industry this year, is hinged on private sector participation, the Managing Director, Nigerian Ports Authority (NPA), Omar Suleiman, has said. The NPA boss urged the Federal Government not to relent in its 48 hour cargo clearance policy so that the country can witness a robust economic growth this year. The Chairman, Badmus Shipping Company, Chief Fola Badmus, said the Federal Government should focus more on the Cabotage law. The implementation of the law, he said, has failed. In 2004, he noted that NIMASA sponsored the Cabotage law which is aimed at encouraging indigenous shipping capacity building. The Cabotage law is believed to have failed as indigenous firms are

By Oluwakemi Dauda

still being denied cargoes that are covered by the law. ‘‘It is not making the law, but enforcing it is what counts. Government should focus on enforcement this year. The essence of the Act, is to reserve Nigeria’s coastal trade exclusively for Nigerians to empower them and free them from unhealthy competition from foreigners. The aim appears to have been defeated as foreign companies still maintain dominance of the trade.,’’ Badmus said. The other area he wants the government to focus on, is the Ship Building and Ship Acquisition Fund (SASBF), which was established to enable indigenous shipping firms acquire their own vessels and operate like their for-

eign counterparts. The programme, he said, failed because many beneficiaries did not return the loans they took. The present management of NIMASA, till date, has not recovered the loans. A senior maritime lawyer, Olisa Agbakoba (SAN), also called on the Federal Government to see to the full implementation of the Cabotage Act. He said there is need for a comprehensive maritime policy for Nigeria this year A senior government official in the Ministry of Transport who spoke with The Nation on condition of anonymity, pointed out that most of the financial facilities enjoyed in other countries are not available in Nigeria. He said commercial banks consider shipping as high risk sector and sel-

dom commit their funds to it. ‘‘The fact that they have at their disposal short term funds makes it impractical to invest in maritime pursuits, which generally have long term gestation period. It was as a result of this that the Federal Government of Nigeria was compelled to intervene by providing the Ship Acquisition and Ship Building Fund (SASBF), which was discontinued because of corruption, abuse, and poor documentation,’’ the official said. The current banking policy, the official said, does not favour maritime financing and investments, which has a gestation period of between 25 – 30 years. Government’s fiscal and monetary policies, he said, ought to be reviewed to encourage long term lending to local ship own-

ers. Operators in the shipping sector are yet to access the N3-billion naira Cabotage Vessel Financing funds, which the Federal Government earmarked for disbursement through NIMASA for those intending to expand their fleet or start new business in the shipping sector. Hence, beyond Policy formulation or review, operators said there is need to put in place implementation framework and paraphernalia to ensure that the objectives of the government policies are implemented to the letter. The Federal Government, operators said, must evolve the political will to make the Maritime Sector work. Enough, they said, is enough of the lip service by those in the government.

THE NATION MONDAY, JANUARY 9, 2012

2012 OUTLOOK STOCK MARKET

Stakeholders expect recovery

Capital market regulators and operators are optimistic on the outlook for the 2012 business year with most analysts expecting a recovery and positive performance this year.

• Onyema

• Oteh

SEC DG Arunma Oteh HE said the Securities and Ex change Commission (SEC) intends to map out the way forward to ensure investors benefit from the challenges of 2011. “We are revamping the Capital Market Committee to reflect a modern capital market committee. The year 2011 was a year that was challenging primarily because of what was happening globally and because the keen interest the Nigerian market has continued to enjoy from foreign investors. “We will ensure that both local investor base and retail investor base are as active as they can be in our market. What we will do early next year is to map out more clearly that plan to ensure that local investor base are able to take up the opportunities that the market that has declined provide. Because we don’t want a situation where it is the international investors who are picking up the equities at reasonable prices and both our local institutional

By Taofik Salako and Tonia Osundolire

and local retail investors are not able to. So, we have mapped out some very specific plans which we will further develop in January,” she said. Noting that in 2011 there was no new issuance except for rights issues by a number of companies, she said the SEC agreed that there has to be concerted effort to bring new issuance to the market. The SEC DG said: “One piece of it is that we must make sure that the market is attractive enough for them to come to list. But the other aspect is that we must make sure that the Exchange is a reflection of the economy. “So, we are committed to addressing all of those things that will ensure efficiency. One of those things is to ensure that our dematerialisation plan is really firmed up. Dematerialisation started a few years ago. We believe that that is important to making this market more efficient. We believe there are

‘I particularly have strong expectation from the banking sector, because the impact of the reforms is yet to be duly felt by the economy. The banking reform has led to healthier banks and more confidence in the industry but the issue of liquidity and lending is still a problem’ -Oteh

other issues that support that, that we need to make sure that we leverage technology better, that we at SEC need to accelerate our effort in technology. The NSE is doing the same; they are working on a bigger robust platform for trading. The CSCS needs to do the same; and that we need to move to leveraging technology better at our market. And market operators need to do the same. This is why there is a sub-committee on market infrastructure and technology.” Besides, she noted that the SEC is following the discussion around the importance of having telecoms companies, upstream oil and gas, agro businesses to list on the Exchange and toensure that the privatisation agenda of the government, particularly with reference to power sector allows NSE to have the privatised companies be listed on the Exchange. “It is something that SEC has agreed to work on as early as possible in 2012 so that they can develop a road map to have new listings during the year. “We do feel that the knowledgeable investor is the first line of protection against any thing that is wrong in a market. Therefore, our investor outreach programme, we need to really enhance it and do on a very important public enlightenment campaign,” she stressed. NSE CEO Mr. Oscar Onyema He said that the Exchange’s capitalisation will improve from where it closed in 2011. “But what I cannot say is that the market will be exempted from the global economy challenges because Nigeria does not exist alone. It will be difficult for me to stand here and say we will be per-

‘But what I cannot say is that the market will be exempted from the global economy challenges because Nigeria does not exist alone. It will be difficult for me to stand here and say we will be performing very well, when we have all the economic challenges in the world’ -Onyema forming very well, when we have all the economic challenges in the world; that Nigeria will not be affected. So what am saying is that the market fundamentals are there, we want to harness and highlight them and make them drive liquidity.” Managing Director, GTI Securities, Mr. Tunde Oyekunle

He was also optimistic. “I expect some sort of recovery in the global economy, which I believe would rub off on the Nigerian economy and capital market. However, to moderate gain from these recoveries, the FG would have to take urgent positive measure working with SEC and Central Bank of Nigeria (CBN) to stimulate the Nigerian economy and work towards regaining investors’ confidence in the market. I strongly believe that if all these stakeholders work together, the market will be better off in 2012 and beyond. “I particularly have strong expectation form the banking sector, because the impact of the reforms is yet to be duly felt by the economy. The banking reform has led to healthier banks and more confidence in the industry but the issue of liquidity and lending is still a problem. An average Nigerian with a promising business idea can hardly get finance from most banks to finance the idea into money making and thus contribute to the growth of the economy. However, the mergers and acquisition we have seen has provided a more competitive banking industry where banks can achieve their potential and contribute immensely toward economic recovery and growth. The introduction of mobile money and efforts towards achieving a cashless economy are good developments that will enhance service delivery to Nigerians and increase business prospects in the banking industry. And banks being major stocks on the NSE, I expect the improvement in performances of banks to impact positively on the stock market,” he said.

THE NATION MONDAY, JANUARY 9, 2012

2012 OUTLOOK BANKING

Banks to grow but contend with risk

LTHOUGH sound risk management practices remain one of the key chal lenges, experts however, believe that banks will record more growth this year. Managing Director, Financial Nigeria International, Jide Akintunde said that the extra-ordinary actions of the Central Bank of Nigeria (CBN) in resolving the banking crisis have prepared the banks for growth in 2012 and at least the next two years. He said that much activities are being expected in the sector going forward in terms of confidence building and foreign direct investment. He said full effects of the policies unveiled by the apex bank in nearly three years will trickle into the banking sector in 2012. These policies, especially the lifting of ban on government bonds, he said, will have big effects on banks’ balance sheets and determine business directions in the remaining part of the year. “The economy is taking a leap forward, and that will affect positively, banks’ balance sheets and their ability to meet stakeholders’ targets,” he said. “Although the banking sector is still not fully healthy but we have seen new ownership of the rescued banks as promised by the regulator. It is only when the issue is resolved and the Central Bank becomes less active in the management of the banks that we can envisage a reliable financial services sector,” Former Executive Director, Bank PHB, Richard Obire, said. According to him, although three of the nationalised banks are still in the hands of government, the industry is moving towards some form of total resolution. But he regretted that banks have not fully commenced lending especially at the retail end of the market. Chairman, National Association of Microfinance Banks (NAMB), Lagos State Chapter, Mr Olufemi Babajide, said the imposition of a new capital regime on the operators would bring the necessary growth to the industry in 2012. He said the banks are set to improve their growth next year, since they have put in place necessary changes that would buoy their activities. Babajide said with the training and retraining of workers of the banks, they would be able to effectively put in place good corporate governance programmes, and effective risk management frameworks in 2012. “No doubt, the sub-sector would achieve a set of goals set for itself in 2012. These include servicing more than 60 per cent of the population, increasing the capital base to N1billion, keying into the cash-less economy programmes, among others. Based on what the association has put in place so far, we expect a better performance this year. Now that the operations of the operators have been

• Sanusi Lamido

‘Operators would record appreciable degree of success in 2012, as CBN is likely going to release the N54billion microfinance development fund to operators’ -Eluhaiwe By Collins Nweze and Akinola Ajibade

zoned to ensure wider accessibility to micro financing services, we would record better growth,” he said. Speaking to The Nation, the Director, Development Finance Department, CBN, Mr Paul Nduka Eluhaiwe, said 2012 would

Property prices to fall

XPERTS including estate surveyors and valuers expect prices to fall in the high end market. In an interview with The Nation, President, Nigeria, institution of Estate Surveyors & Valuers (NIESV), Bode Adediji, said the housing sector in the New Year may likely get worse. He noted that housing is based on people’s confidence in the ability of government to implement key issues. Consequently, he said the success of the sector depends largely on the actions of government. He stressed the need for the government in the New Year to restore the confidence of stakeholders and crucial partners by inviting professionals in the sector to a retreat with policy makers to communicate, connect and deliver predictable targets. Noting that the housing budget in the New Year is too negligible to make any serious impact putting into consideration the magnitude of problem at hand and the estimated 16 million housing deficit, he said attention should be placed on infrastructure development because without dream of access to housing will be a waste of time in 2012. This year he said government should ex-

By Okwy Iroegbu- Chikezie

plicitly fashion out ways to enthrone a virile mortgage sector in place of cash and carry. Former president, Nigeria Institution of Structural Engineers (NIStructe) and Chairman, CEO, Ove Arup, Kunle Adabajo, an engineer, said this year may not be too different from last year except government musters the political will to implement the N180 billion budget in 2012. He noted that though the budgetary figure is slightly higher nothing much may be achieved. Past Chairman, Nigeria Institute of Building (NIOB), Lagos State, Mr. Kunle Awobodu said the high prices of cement witnessed in 2011 is not expected to continue in 2012 due to production increase from WAPCO Lafarge’s Lakatabu plant that the president Goodluck Jonathan has just commissioned. Likewise, other cement manufacturers are expected to commence operation soon to raise cement production level in the Nigerian market. Awobodu noted that the country remains a fertile ground for housing investment in 2012, considering the fact that the nation

record growth across boards for the operators. Eluhaiwe said operators would record appreciable degree of success in 2012, as CBN is likely going to release the N54billion microfinance development fund to operators. He said the development would improve the activities of the operators, make them better players, foster competition, and assist growth of the small and medium scale enterprises. Also, the President, Finance Houses Association of Nigeria (FHAN), Mr. Eddie Osaronkhoe, said said the decision of the CBN to carry far reaching reforms in the subsector in 2012 would bring growth to the operators. He foresees a recapitalisation of the finance houses, introduction of innovative ways of doing businesses, improved profitability, among others, this year. He predicted growth for the finance houses, saying that 2012 would be better for the operators and the economy in particular.

‘The high prices of cement witnessed in 2011 is not expected to continue in 2012 due to production increase from WAPCO Lafarge’s Lakatabu plant that the president Goodluck Jonathan has just commissioned. Likewise, other cement manufacturers are expected to commence operation soon to raise cement production level in the Nigerian market’ -Awobodu is faced with severe shortage of housing units. He was optimistic that Nigeria will witness higher volume of construction activities in 2012.

AGRIC

Agric remains optimistic By Daniel Essiet

LTHOUGH agribusiness will be accorded more investment atten tion, Prof Martins Etekhai of the Lagos State University noted that a large number of investors will still look at the sector as an area where one cannot generate good returns given that interest rate is seven per cent. At that rate, he said that no farmer can make profit. His concern is that such farmers will not be able to honour their repayment commitment. The German International Cooperation (GIZ) Technical Advisor, Sustainable Cocoa Business, Ayo Akinola, said though the government has chosen some good policies and programmes, the expected positive trend will take some to play out. He however, forecast a bright future for the industry this year. The budget announced by the President, he said, had some positive steps, but it will take some time before the industry will be rejuvenated to improve food production and meet the demand of the growing population. Specifically, Akinola said the government needs to support local production of wheat and cassava as heavy duty has been placed on importation of the commodities. He said the industry will fare well from the duty exemption for agric machineries and cheaper loans from banks. A consultant to African Development Bank, Prof Biyi Daramola said crop profitability prospects for 2012 are positive as interest rate reduction will allow producers to plan for positive margins. He said government incentives will reduce costs and lead to a better production year. Daramola expects the reduction in the cost of fertilizer to rub positively on production as it continues to be the most volatile of the crop input costs.

THE NATION MONDAY, JANUARY 9, 2012

ISSUES

•MD, Wema Bank Plc, Mr Segun Oloketuyi

•MD, Unity Bank Plc, Alhaji Ado Wanka

Banks appear to be on stronger footing with emerging reports on their operations showing improvements in key fundamentals. Average current earnings in the banking industry runs in double-digit, suggesting enough room for increase in actual dividends by most banks. As the capital market totters between recovery and relapse, TAOFIK SALAKO reports that good earnings and payouts by banks could be the tonic for recovery.

Waiting on banking stocks B

ANKS constitute less than seven per cent of quoted companies on the Nigerian Stock Exchange (NSE). But the importance of banking stocks in the overall direction of the stock market, and national capital formation process far outweighs the number of listed banks. Banks account for more than half of the turnover at the NSE. They constitute about threequarter of most active stocks and two-quarter of the most capitalised stocks. The stock market direction is determined by a close-knit group of 20 companies, largely dominated by banks. The top 20 companies account for more than threequarter of market capitalisation of all quoted companies and nearly two-third of total market capitalisation of the stock market. Banking stocks alone account for twothirds of equity market capitalisation. Invariably, a positive movement in the

share prices of the top 20 companies provides the linchpin for an equally positive shift in the overall market direction. The dominance of banking stocks means that the sectoral trend, whether positive or negative, largely influences overall market direction. In 2010, the positive return of about 19 per cent in the banking sector significantly influenced the entire market’s return of 18.5 per cent, neutralising the 37 per cent decline suffered by the equally populous but largely insignificant insurance sector. In 2011, banking stocks were largely responsible for the negative return recorded by the stock market. Aggregate market capitalisation of all quoted equities slumped to N6.533 trillion after the last trading session for last year as against its opening value of N7.914 trillion. The benchmark index, the All Share Index (ASI), which serves as the common gauge for all quoted companies as well as country

index for Nigeria, fell to 20,730.63 points from its last year’s value-on-board of 24,770.52 points. Altogether, the benchmark index indicated a negative return of 16.31 per cent, which translated to almost N1.4 trillion loss. Although the serial decline in market considerations of banking stocks has slightly whittled the influence of banks, they still remained the deciders for the market direction. Besides, banks have the largest number of shareholders, especially retail, small and medium shareholders whose perception and disposition to regular investments underline the mood of the market. For instance, Union Bank of Nigeria (UBA) has 500,000 shareholders; United Bank for Africa (UBA), over 280,000 and First City Monument Bank (FCMB) about 156,000 . They outnumber Total Nigeria, which has 26,000 shareholders and GlaxoSmithKline Consumer Nigeria’s 27,000. The ‘herd instinct’ theory, a major pos-

tulation of behavioural finance, holds that several investors tend to follow the general market trend in response to some changes rather than deep personal insight and analytical method of making individual investment decision. This holds true for most retail and small investors and underlines the importance of the shareholder-crowded banking sector in the overall direction of the stock market.

Fresh from the mint With the catalytic importance of the banking sector to stock market performance, investors tend to gauge the sector’s prospects to preview the trends in the period ahead. Undoubtedly, the banking sector has undergone landmark changes since the burst in 2009 compounded the worsening depression • Continued on page 18

THE NATION MONDAY, JANUARY 9, 2012

ISSUES

Waiting on banking stocks • Continued from page 17

at the stock market. There have been many systemic and institutional changes -the paradigm shift in regulatory approach from the rigid rules-based supervisory framework to a more anticipatory risk-based framework, shift of emphasis from capital to quality credit risks management, detoxification of banks balance sheets, corporate governance rules that emphasise personal responsibility in addition to organisational responsibility, introduction of tenure system for bank chief executives, auditors and directors, harmonised year-end of December 31 for all banks, reversal of modus operandi of the Nianking system from universal banking to niche banking system that prohibits banks from directly undertaking subsidiaries in non-banking financial services and sundry rules and regulations that have strengthened service and corporate governance in the banking sector. The changes in the banking sector complement commendable regulatory changes on corporate governance and full and timely disclosures introduced by capital market regulators. With new stringent rules on credit risks assessment, banks’ earnings have in the past 30 months gone through the crucible of refinement to ascertain the quality, reliability and sustainability of such earnings. Initial reports of most banks showed that they were constricted to low performances. But as the reform progressed and banks adjusted their processes, systems, strategies and overarching visions to the new industry baseline of quality and sustainable growth, operating reports showed continuous improvements that confirm that banks have left their gestation period and may be already in the delivery room. Generally stable and growing earnings indicate that banking stocks are now more than before in a position to regain their fervour as some of the most attractive stocks and help to build momentum for stable recovery at the stock market. Interim reports and accounts of nearly all banks showed growths in incomes and profitability during the nine-month operational period ended September 30, 2011, which analysts said could boost the secondary market valuations of banking stocks. At current market considerations, most banking stocks carry double-digit earnings with yields as high as 21 per cent. Average industry yield also stands in double digit, indicating that in the choice of probability, an average investor in banking stocks stands to enjoy significant immediate dividend incomes.

Earnings and dividends Earnings yield measures the return on investment for the investors, although the dividend payment policy of the company may determine the proportion of the earnings to be distributed, subject to the approval of shareholders. Banks are known to be investors-friendly and generous in dividend policy. Average dividend payment policy ranged from 50 to 60 per cent but several banks may do better given their trimmed, fit and proper shapes, which require relatively lesser capital retention. Besides, rather than the wild-wild growth rampage that saw banks delving into all businesses and jurisdictions in the past, quality-growth within a specified radius places banks on surer footings and reduces the risks of significant earnings reversals. With the third quarter 2011 reports, earnings per share within the banking industry was as high as 137 kobo with industry average of 53 kobo per share. Earnings per share represents the distributable earnings that could be paid out entirely or partly to shareholders or retain in the reserves of the company, depending on the company’s dividend payment policy. Shareholders at the general meeting reserve the right to determine the dividend payout policy of their company and as such, the underlining factor for measurement of performance is the fundamental earnings. Where shareholders decide to pay out less percentage and retain much, they would be building

up their reserves and future capacity for double-layer returns such as a bonus sharecum- cash dividend distribution or regular and special dividends. Although dividend policy, organisational growth plan and shareholders’buy-in would determine actual payouts, what the audited reports and interim reports of banks have established is the improving industry-wide capacity of banks to deliver better earnings and by extension, good returns to shareholders.

Previewing the returns As banks’ full-year audited reports are expected to trickle in by early March, bankby-bank analyses of latest reports show most banks on stronger footings for better returns. Third quarter earnings showed Sterling Bank with the highest earnings yield pinpointing the gap between the bank’s fundamental performance and current market consideration. This locks in significant gains for value-investors and further underscores the growth potential that may follow the integration of Equitorial Trust Bank (ETB). The report indicated that gross earnings grew by 21 per cent while the proportion of non-performing loans to gross loans improved to 3.9 per cent as against 11.5 per cent in December 2010, reflecting the efficiency of the bank’s credit risk management framework which significantly reduced non-performing assets in spite of 28 per cent growth in loans during the period. At 3.9 per cent, Sterling Bank’s nonperforming loan/gross loans ratio has surpassed the industry target of 5.0 per cent, a trend that the bank’s management said it would sustain. The nine-month report showed gross earnings of N28.04 billion while pre and post tax profits stood at N3.94 billion and N3.68 billion. With earnings per share at 29 kobo, the nine-month earnings outlook indicated earnings yield of about 21 per cent; a strong indication of high dividend yield by the end of the year. Also, Unity Bank Plc appeared to have weathered the storm as key fundamentals of the bank show generally positive outlook. With the third quarter as window into the latest position of the bank, Unity Bank recorded gross earnings of N30.9 billion in third quarter 2011 while profit before tax stood at N3.02 billion. Profit after tax closed at N2.02 billion, which indicated about 11 per cent earnings yield for the bank, suggesting a strong dividend outlook. The most reassuring factor is the sustained profitability of the bank while it deals with legacy issues. Guaranty Trust Bank (GTBank) continued to exude confidence and reliability as its long-tested stable-steady growth strategy places it almost beyond the vagaries in the banking sector. Obviously the bank with the least adverse impact of the strenuous banking review, GTBank’s determined focus on core banking operations and mobilisation of all resources toward this have continued to pay off in stable earnings growths. This has catapulted GTBank into the lead as the most capitalised bank as investors factored good fundamentals into stock market consideration. As the most capitalised bank and the fourth most capitalised quoted company, GTB’s returns would have considerable influence on market direction. With current shareholders’ funds of N225 billion and deposit base of N889 billion, GTBank increased gross earnings by 47 per cent to N126.14 billion in third quarter of last year as against N107.17 billion posted in the comparable period of 2010. Profit after tax rose by 32 per cent to N37.92 billion compared with N28.82 billion. The underly-

•MD, GTI Securities, Tunde Oyekunle

•GMD, FCMB Ladi Balogun

ing improvement in the bottom-line performance of the bank was indicated by increase in pre-tax profit margin from about 34 per cent to 38 per cent. With net earnings per share of 129 kobo, GTBank holds out strong prospects for a high cash payout. This is further strengthened by expected gains from divestments from its subsidiaries, with one of the sales in the last quarter netting about N12 billion to the bank. Besides, the performance of FCMB has been reassuring with both audited report and interim reports underscoring the feasibility of the bank’s two-prong strategy, which ensures it maintains a stronghold on its traditional wholesale market while aggressively developing the retail franchise. Latest interim report showed a growth of 73 per cent in the group’s profit after tax to N7.9 billion in third quarter 2011 as against N4.6 billion same period last year. With current earnings yield of 12 per cent, FCMB offers real return on investments to discerning investors. On the back of increased earnings in 2010, FCMB had increased cash payouts to shareholders by 600 per cent. With third quarter earnings per share of 137 kobo, Zenith Bank holds out a doubledigit earnings yield at current market consideration, a major attraction that has seen pundits placing the buy recommendation on the bank. Zenith Bank showed an impressive top-down growth in the third quarter with 31 per cent growth in gross earnings and 38 per cent growth in net profit. Gross earnings rose to N182.96 billion as against N139.60 billion while profit after tax stood at N42.95 billion as against N31.13 billion in 2010. Also, earnings yield of 14 per cent and historic distribution of N5.3 billion to shareholders for the 2010 business year indicate strong dividend outlook for Skye Bank. Gross earnings stood at N73.29 billion in Q3 2011 as against N66.17 billion in the comparable period of 2010 while profit after tax rose from N8.55 billion in the third quarter 2010 to N9.37 billion last year. FirstBank of Nigeria (FBN) Plc grew topline and net earnings by 19 per cent and 32 per cent during the third quarter. FirstBank’s gross earnings stood at N211.2 billion by September 2011 as against N177.1 billion same period 2010. Profit after tax increased from N32.6 billion to N43 billion, representing earnings per share of 131 kobo last year and potential earnings yields of 13.1 per cent. Although overall scenario analysis does not favour immediate significant cash payouts, ‘government-assisted’ Wema Bank appeared to be regaining its feet. Third quarter report showed Wema Bank with gross

earnings of N20.33 billion and net profit of N1.54 billion. This translated into earnings yield of about 19 per cent, putting the bank as one of the best-return banks at current market valuation.

‘

A generally stable and growing earnings indicate that banking stocks are now more than before in position to regain their fervour as some of the most attractive stocks and help to build momentum for stable recovery at the Nigerian stock market

’

Leaving the past behind With the resolution of the nearly all the rescued banks’ issues and consummation of mergers and acquisitions,the banking sector has shrugged off major hangovers that could unwind the gains of the banking reforms. Most analysts see banks with stronger prospects to increasingly stabilise their earnings and play complementary roles in the capital market and the economy generally. Managing Director, GTI Securities, Mr Tunde Oyekunle, said he was optimistic about the outlook for the capital market in 2012, noting that there were many variables for market recovery than against it. “I particularly have strong expectation from the banking sector, because the impact of the reforms is yet to be duly felt by the economy. The banking reform has led to healthier banks and more confidence in the industry but the issue of liquidity and lending is still a problem. However, the mergers and acquisition we have seen has provided a more competitive banking industry where banks can achieve their potential and contribute immensely toward economic recovery and growth. And banks being major stocks on the NSE, I expect the improvement in their performances to impact positively on the stock market,” Oyekunle said. Analysts at FSDH Securities have set a modest average return of 13 per cent for the stock market this year, with much optimism on performances of banking stocks. According to analysts at FSDH, improved corporate earnings, less aggressive monetary policy implementation by the CBN; improved disclosure by quoted companies and the current low valuation of quoted companies among others would improve overall stock market performance this year. Banking stocks made up nearly one third of stocks recommended by FSDH in its latest note to investors. Analysts at Afrinvest (West Africa), Sterling Capital and Crossworld Securities among others also shared similar sentiments. Economist and investment advisor, Sterling Capital, Sewa Wusu, said stronger earnings and banks’ sensitivity to shareholders’ relations would contribute positively to market recovery. Associate, Financial Services Ratings, Standard & Poor’s, Mr. Matthew Pirnie, said Nigerian banks were better placed structurally to sustain earnings growth. According to him, the asset quality of rated banks, which control substantially the banking sector, has been improving and the outlook for banks is generally stable. After the excruciating loss of last year, investors definitely yearn for stable recovery and tangible reassurance. Banks could lead the confidence-boosting with good corporate earnings reports and dividend recommendations.

THE NATION MONDAY, JANUARY 9, 2012

EDITORIAL/OPINION EDITORIAL FROM OTHER LAND

COMMENT

Familiar rhetoric •The President’s say-nothing broadcast did not tell us anything refreshingly different

RESIDENT Goodluck Ebele Jonathan, in a national broadcast on Saturday toed the infamous path of the past by regaling Nigerians with tardy policy promises that would never be implemented. He unfurled some measures obviously geared towards halting today’s planned nationwide industrial action meant to protest removal of fuel subsidy. In the usual official cliché, the President beckoned on all Nigerians to be prepared to make sacrifices. He told the nation that his administration would lead the pack as he had “… directed that overseas travels by all political office holders, including the President, should be reduced to the barest minimum. The size of delegations on foreign trips will also be drastically reduced, as only trips that are absolutely necessary will be approved.’’ He further informed a disillusioned nation that henceforth, “the basic salaries of all political office holders in the Executive arm of government will be reduced by 25%.’’ And that the ‘…Government is also currently reviewing the number of committees, commissions and parastatals with overlapping responsibilities. The report on this will be submitted shortly and the recommendations will be promptly implemented. In the meantime, all ministries, departments

‘The President’s address to the nation has further exposed his government as one that acts before thinking, especially on critical policies with direct impact on the lives of Nigerians. Otherwise, the contents of the address are things that the government should have commenced implementation of before even arriving at any petrol price upward review. We once again reject the astronomical increase of fuel price under whatever guise. Again, we say Nigerians must reject it too’

and agencies must reduce their overhead expenses.” This is tokenism that cannot go far. The President equally promised the completion of rail lines and infusion of buses into the nation’s transport system. The question now is: why is the President talking as if he is a ‘brand new’ President’? We can understand if he is from a different political party or if he is just assuming office. He has been president for over 19 months, at least since the death of his boss, Alhaji Umaru Musa Yar’Adua in May 2010. It would have been easy to convince Nigerians with records of his achievements on roads and other national challenges if he had done tangible things before now. As a matter of fact, those are what should be speaking for him today, instead of trying to labour in vain to convince a people who have made up their minds as to how far they know he can deliver democratic dividend. To the extent that the President is just waking up to these realities, Nigerians should be wary of his promises. He has no such antecedent to make us entrust him with such spectacular performance that he is promising. Obviously the President must have been overwhelmed by the avalanche of condemnations and sporadic protests that heralded his administration’s callous increase of per litre pump price of petrol from N65 to N141. Nigerians have said ‘no’ and in our previous editorials on the matter, we have been unequivocal in rejecting this unrealistically tyrannical price of fuel. We need to remind the President that he has lost the confidence of Nigerians through the way and manner he ambushed them on New Year Day when the exorbitant petrol price sneaked into the fuel dispensers of filling stations across the country. The President and his economic team actually promised Nigerians a new regime of fuel price by April 1. Unfortunately, they reneged! For reneging on this promise, it will henceforth be a tall order for this administration to command public trust. The

President’s national broadcast was replete with promises mouthed by previous administrations but which they never fulfilled. In view of the enormity of challenges posed by fuel pricing in the nation, we believe that any upward review of price should have condition-precedent and condition-subsequent that ought to be met by any serious and responsive government. Sadly, this administration contemptuously increased the price of petrol without fulfilling the condition-precedent of doing so. For instance, why should the President be assuring on full domestic refining of petroleum products before the end of his tenure at this point? Why can’t he ensure that is done first and then wait for the next administration to implement the price review, if domestic refining of petroleum products has become a feat that would take that long to achieve? Why can’t Turn-Around- Maintenance and building of new refineries precede upward review of petrol price? As we pointed out earlier, President Jonathan is not new in government. He has been in the saddle now for over 19 months; yet, he has failed to marshal any clear policy statement in the prominent sectors of the nation’s economy. The President has proved unreliable in meeting the transportation needs of the country- federal roads nation-wide are in bad shape. Two examples of such roads are the Lagos-Ibadan Expressway and the Sagamu-Ore-Benin Expressway, among others, that can best be described as death traps begging for attention. The rail system is at best non-existent; while the power sector reform has thrived more on rhetoric than effective implementation. The President’s address to the nation has further exposed his government as one that acts before thinking, especially on critical policies with direct impact on the lives of Nigerians. Otherwise, the contents of the address are things that the government should have commenced implementation of before even arriving at any petrol price upward review. We once again reject the astronomical increase of fuel price under whatever guise. Again, we say Nigerians must reject it too.

Dangerous threat

Obama’s justifiable ‘power grab’ on recess appointments

NPRECEDENTED.” “A power grab.” “A flagrant contempt for the rules.” Such were the howls from many on the right after President Obama this week used recess appointments to install a new director at the Consumer Financial Protection Bureau and to reconstitute the National Labor Relations Board (NLRB) with three new members. These agencies are controversial to begin with, and any move to promote their mission would have been met with strong opposition. In this case, however, critics argue that the president did not have the authority to make such appointments. Their proof? Every three days or so, a lone senator enters the chamber and gavels in a seconds-long, pro forma session; a bipartisan agreement mandated that the sessions would proceed “with no business conducted.” With the Senate in session, critics argue, the president is prohibited from exercising his power to make recess appointments. Some also note that neither chamber can adjourn without the consent of the other. Lawmakers left for the holidays without such an agreement. Democrats first used these tactics during the latter days of the George W. Bush administration. The practice continues because Republican leaders are intent on turning the tables on Mr. Obama. No court has addressed the question of whether a president is precluded from making recess appointments during pro forma Senate sessions. But we believe the president’s action is justifiable, as former Bush Justice Department officials Steven Bradbury and John Elwood argued persuasively in an op-ed in 2010, when the situation was similar (though not identical) to today’s. The Constitution vests the president with the power to fill vacant executive- and judicialbranch slots when the Senate is in recess. This power should not be undermined — indeed, nullified — through the use of ploys. To argue that phantom pro forma sessions render the Senate “open for business” is to defy common sense. The same holds true for the fiction created when lawmakers head out of town but decline to formally acknowledge an adjournment. Republicans may well be correct that Mr. Obama is playing politics with these appointments. He announced the Cordray appointment during a stump speech in swingstate Ohio, where he railed against Republican obstructionism. His supporters in organized labor will no doubt be pleased that he filled the slots on the NLRB. But so what? Both the consumer bureau and the labor relations board are agencies of the U.S. government, created by Congress, and it is inexcusable that congressional obstructionism would leave them unable to function. If Republicans don’t like the structure or purpose of either agency, they should try to alter them through legislation. Meanwhile their filibustering against qualified nominees to make political points or extort concessions from the White House cripples government and discourages good people from serving. That is the real poisonous practice, in which both parties have engaged. Until there is a de-escalation, the country will continue to pay a high price. – Washington Post

•Boko Haram’s warning to southerners to leave the North could lead to serious crisis

N an event that is unusual in many parts of the world, the Boko Haram struck, and at the most unexpected place – The House of God, at St. Theresa’s Catholic Church in Madalla, near Abuja, in Niger State. A bomb exploded in front of the church just after the Christmas morning mass, killing about 30 innocent worshippers, including children. A woman who stayed at home lost all she had – her husband and five children! The wicked, barbaric and embarrassing situation caused President Goodluck Jonathan to shed tears when he visited the scene of massacre a few days later. The President thought that enough was enough and declared a state of emergency on December 31, 2011, in 15 local governments in Borno, Niger, Yobe and Plateau states. Three days later, the Boko Haram responded by issuing a three-day ultimatum to Christians in the North to leave the zone. Although the National Security Adviser, General Andrew Azazi assured there was no cause for alarm, people are still afraid about the group

carrying out its threat. President of the Christian Association of Nigeria, Pastor Ayo Oritsejafor (OFR), pleaded for calm among the Christians in the North, reminding the Boko Haram members however that no group had the monopoly of violence. This latest threat and ultimatum given to Christians to leave the North is tantamount to a declaration of war. If the Christians refuse to leave because (1) the North is an integral part of Nigeria, (2) Nigeria is a secular state, (3) no ethnic or religious group has the monopoly of violence and (4) the Nigerian constitution guarantees freedom of movement and domicile and, the Boko Haram sect begins to kill southerners in their homes and churches, then a retaliation from the South could lead to a civil war. But successive governments have contributed to these ugly scenarios. In particular, the current Federal Government, which is a continuation of the Olusegun Obasanjo administration should be held

responsible for the present insecurity in the nation. The government has failed in its responsibility to check the activities of Boko Haram. Even when bombings followed one another in astonishing rapidity, all we got from the Federal Government were mere platitudes that the culprits would be brought to book! Pity, it is true that, up till today, only a few persons have been brought to book. So, the bombings continue with absolute impunity. This is the kind of thing that gives Boko Haram the courage not only to continue with its serial bombings but also to go further to give a three-day ultimatum to southerners to leave the North. For now and perhaps for a few more days or weeks, Nigerians are waiting and watching with eagle eyes to see whether we would reach the situation when southerners and northerners would have no choice but to say to themselves “to your tents o Israel!” For now, we can only hope that this does not happen.

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

• Executive Director (Finance & Administration) Ade Odunewu

•Deputy Editor Lawal Ogienagbon

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•Deputy Editor (News) Adeniyi Adesina •Group Political Editor Bolade Omonijo •Group Business Editor Ayodele Aminu •Abuja Bureau Chief Yomi Odunuga •Sport Editor Ade Ojeikere •Editorial Page Editor Sanya Oni

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THE NATION MONDAY, JANUARY 9, 2012

9EDITORIAL/OPINION

IR: The Christmas Day suicide attack on innocent worshippers at the St. Theresa Catholic Church at Madalla in Suleja, Niger State was a devastating embarrassment to majority of Nigerian Muslims who believe in peace, tolerance, harmonious coexistence and the unity of Nigeria. Any attack on Christian worshippers by extremist groups exposes other Muslims to the potential danger of retaliation, which could threaten the country’s delicate unity. Under this tense situation, leaders have a responsibility to calm frayed nerves rather than escalating the situation by adding fuel to the flame. In his widely published adverts, the Christian Association of Nigeria, CAN President Pastor Ayo Oritsejafor threw caution to the wind to hold Muslims collectively responsible for the actions of the Boko Haram Islamic fringe group. In his words, “If the Supreme Council for Islamic Affairs does not take positive action towards resolving the threat to our security by extremist sects, particularly the Hausa and Fulani Muslims of Northern Nige-

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Oritsejafor: letting emotions run away from reason ria, we might be forced to review our Christian/Muslim collaborative efforts towards peace building”. He also warned that the Christian community may be left with no other option than respond appropriately if there are further attacks on christians. Oritsejafor must get his facts right because anyone with rudimentary knowledge of the political geography of this country knows that the Boko Haram elements are essentially Kanuri, not Hausa-Fulanis. The CAN President sounded as if the Supreme Council for Islamic Affairs has a magic solution to the Boko Haram embarrassment. How do you deal with invisible extremists who don’t even recognize institu-

tions like Jama’atul Nasir Islam (JNI) and the Supreme Council for Islamic Affairs (SCIA)? How many Muslim clerics were felled in Borno State for daring to criticize the atrocious activities of Boko Haram? If Boko Haram could listen to voices of reason from Muslim leaders, their violence would not have escalated to this level. Which responsible Muslim would have supported the attack on Christian worshippers when they themselves would need the same constitutional protection to practice their religion in an atmosphere of peace and security? As the Sultan of Sokoto, His Royal Eminence, Alhaji Sa’ad Abubakar told President Jonathan, Muslims

and Christians are not at war because of the thoughtless and embarrassing actions of extremists. Why didn’t America and other Western nations expel Arabs from their territories because of the activities of Al-Qaeda terror network after the September 11, 2001 suicide attacks on the World Trade Centre? The activities of an extremist minority are no justification to throw Muslims and Christians at each other’s throats. As a leader, Pastor Ayo Oritsejafor has a heavy responsibility to demonstrate coolheadedness, temperance and sobriety at this difficult moment. Extremist violence cannot be resolved by throwing collective responsibil-

When democracy turns to quasi-military government

IR: On January 1 when the story of fuel subsidy removal broke out, people were caught unawares, except the plotters who made the decision. The fact is that citizens knew about the proposal but discussions were still. The town hall meeting held in Lagos, attended by Sanusi, Okonjo Iweala and co, was a testimony to this. After this town hall meeting, people’s expectations were that the meetings were still going to continue until Nigerians understanding was totally gained. What democracy connotes is that it is the government of the people, for the people and by the people. By implication, people’s opinions should be respected. Large majority of Nigerians are saying no to the policy. Citizens are saying certain things should be fixed before the subsidy can be tampered with at all to make life easy. But unfortunately,

the government has gone ahead to force us into another series of painful experience. Though, the government is claiming to be targeting some relevant programmes with the subsidy removal, the question of trust remains the problem. Is this not the same government that is treating ASUU agreement with contempt? Where has Uwais electoral recommendation gone to? People have lost trust in this government! The issue is that; if government is telling us anything then it must be doing something to convince us. Leadership should not be a contest of popularity or name making; it should be a mission of purpose to work and think in consideration of the electorate. Corruption, all of us know is the bane of this country. If security vote of 921 billion naira will

not be painful on the government to implement, why should fuel subsidy be the problem? Perhaps what Jonathan has failed to know is that some of these people whom he thinks mean good for Nigeria are looking for their personal benefits. Because the citizens are not happy with this position of the federal government, there is need for the president to have a rethink and dance to the tunes of the citizens. We are not happy! The government has continued to put pain on us through corruption and we need this to be addressed first. If the government claims that corruption will be fought with the removal of subsidy and Adams Oshiomole is saying there are some cabals who are too powerful to be tackled in the oil sector, then where is the correlation? I want to remind the government that the same

people who oversee the affairs of the crude oil are still there. There are no logistics on ground to achieve the plans government says it wants to achieve. The government should convince us to trust them and stop playing lip service. Ghana or South Africa should not be compared to Nigeria. While Ghana have uninterrupted power supply for 10 years, Nigeria can not be boast of having same for a day. We should try and consider every salient aspect instead of blindfolding one another. If there is constant light for instance, complaints on hike in fuel prices will be reduced as well as if there is subsidized transportation. We are no fools to have voted President Jonathan as president; our opinions are relevant as well. • Omikunle Muritala, Ago-Iwoye, Ogun State

ity on the shoulders of all Muslims. Saudi Arabia enforces some of the toughest laws against extremists, including the official expulsion of the late Osama Bin Laden in 1994. In fact, the late Al-Qaeda leader was even officially stripped of his citizenship by the Saudi authorities. Therefore, should Saudi Arabians be held accountable for the murderous activities of terrorists merely because the perpetrators are Muslims? Is the idea of guilt by association a fair way to find a viable solution to the Boko Haram challenge? Whether as Muslims or Christians, we should not abandon the efforts to build and sustain the unity of Nigeria. Division and disunity among Christians and Muslims can only play into the hands of extremists. Death and destruction are not encouraged by any religion. Singling out certain political and institutional leaders for blame over the action of renegade groups is counter-productive to the efforts to confront the current security challenges of Nigeria. Leading Northern Muslim leaders such as Sheikh Dahiru Bauchi and several others have all condemned the criminal and unwarranted attack on Christian worshippers at Madalla. They cited authorities from the Holy Qur’an and other religious scriptures, which abhor violence against the innocent and suicide. It is therefore, most unbecoming of Oritsejafor to shut his eyes and ears to the well-meaning efforts by top Muslim leaders to separate the Boko Haram violent agenda and the larger interest of Muslims in the North and Nigeria as a whole. No one has the right to take another’s life by criminal means and this was the message Sheikh Dahiru Bauchi and other Islamic leaders had put across to Nigerians. Collective blackmail of Muslims in general is unhelpful at this critical point when the nation must be united to find a common solution to this security challenge. • Mohammed Imam Yusuf Isa Kaita Road, Kaduna.

THE NATION MONDAY, JANUARY 9, 2012

EDITORIAL/OPINION

Nigeria? Let God arise

C Nigeria is at a crossroad. To move forward at this stage has gone beyond the wisdom of man. What the nation now needs is Divine intervention for deliverance from the cage of confusion in which it is being self-locked. Surely, the state of the nation today is agonising; nothing seems to be working. Living is hard. Life is not safe. To worsen the matter, light does not even seem to be appearing at the end of the dark tunnel. The leadership and the led are in back-toback confrontation. What the elected government aspires is contrary to what the electors desire. Today, the hearts are hardened – and unless God is allowed to touch the hearts of stone, there might be a devastating crack that might take the nation off the path to the promised land. God definitely knows why He has placed a mild and placid Dr. Goodluck Ebele Jonathan at the helm of affairs of an impatient people. He also has His purpose why evil in the name of Boko Haram is walking tall in the land. Because God’s ways are not the ways of man, He definitely can discern why an elected administration in a democratic dispensation is taking for granted the people who sacrificed their votes and pushing them to groan without a comforter. Who knows, this might just be the path in His plan to truly transform the beleaguered nation to what He wants it to be. To man, it is inopportune what is happening in the nation today. Over time, innocent souls were being recurrently murdered in cold blood. Since no determined counter effort was seen being made to cage the pay-rolled satanic bandit camouflaging as a religious sect, more blood were painfully spilled even on the day of the Lord when peace and joy were being celebrated on earth. The evil sponsors with self-serving political motives kept laughing as sorrow and anguish were heaped on families in the church of God. They could not see that as long as the Lord remains alive on His throne, the wile might just be the final error of the devil to spur Him to arise to fight His own battle. But then, as the distress was further heightened by government’s admittance that it has knowledge of the perpetrators of the evil without a convincing strategy to assuage public anxiety over the disaster, a desperate wrong step was bound not to restore peace unto an already desecrated land. On new year day when expectations were high for a fresh beginning, a bomb of further depression was thrown by the government in power. No matter the benefits of the removal of fuel subsidy to the masses, President Jonathan’s style of implementation has not shown the essential sincerity of purpose that could hearten the people to understand and imbibe additional burden on their already overloaded head. Today, the cities are being overwhelmed in crisis and the

AM absolutely sad and disheartened to observe what is going on at the moment as regards the turbulence and destructive activities of the so called Boko Haram in our country. Since our independence in 1960, we faced so many disorderliness and confusion within our nation. I dare say that before independence, ours was a land flowing with milk and honey. Then we largely depended on agriculture; cocoa in the South West; groundnut, millet and sorghum in the North; palm oil in the East with yam, cassava and cotton all over the place. Then we were never in the red and there was nothing like national debt. The first problem we encountered after independence was the coup and counter coup. That was the beginning of our national calamity because the military took absolute control of the country, dealing death and destruction with anyone who dared question their authority. They reigned and ruled exclusively and absolutely. Our next misfortune was that of the civil war. The military ruled for many years with all its ups and downs and turbulence. The view of the public at large was that the coup d’etat that resulted in the civil war was ethnically motivated. Nigeria therefore, embarked upon damage control policies. One of which is the establishment of the National Youth Service Corps as well as the policy of Federal Character which culminated in the creation of the Federal Character Commission.

‘Religion is an emotive issue and our constitution, although not perfect, tries to make it a secular issue. However, ours is a multi religious nation and we have lived harmoniously thus for over 50 years and before’

nation is on standstill. The government had thought it could play on the intelligence of its economically impoverished citizens by imposing its will on them. Yes, removing subsidy to improve the life of the people might sound logical and responsible. But a great leader is the one that listens to the cries and concerns of his people and not the one that defies their groans. Nigeria is not where God what wants it to be today, not because of poverty of intelligent citizens, but more because of inadequacies of those in leadership positions. There is ordained time for every good things. When the federal budget was presented and there was silence on the heated subsidy removal controversy, the government gave the impression that since it was still parleying with stakeholders and the people’s representatives, nothing would happen until the budget becomes operational in the second quarter. But from the same government pretending to want to carry the people along by wiping out the spirit of mistrust, the real mind burst out on new year day. The so-called subsidy caused by official corruption and administrative ineptitude was yanked off and the heavy yoke heaped on the people. As summed up by Chief Frank Kokori, the Jonathan administration merely proved that it was “deaf and dumb”. Indeed, those who voted President Jonathan into office are fast losing confidence in his style of governance. He got into the helm by the grace of God on a platter of gold. To Ekiti State Governor Dr. Kayode Fayemi, the hardship being experienced in the country today was the result of the electorate that wrongly voted into power the Peoples Democratic Party, a party which never saw anything bad in imposing burdens on the masses. “You voted them to do what they are doing now. They are returning appreciation for your voting them the way they know best.” To Fayemi, this might just be the last straw that will break the back of the PDP-led government in Nigeria because it is a war they cannot win against the people who voted them in before they (PDP leaders) turned against them. As if to justify the thinking governor, while insisting on subsidy removal, the Federal Government’s last week announced its palliative as the deployment of 1,600 mass transit buses across a nation of 160 million people. It also assured the civil servants that they would get their January salary by the 20th of the month. To the government, these measures were meant to ease the pains of the sudden hike in fuel prices by more than 100%. Minister of Trade and Investment Olusegun Aganga explained that the revolving loan payable over a five-year period with a five percent interest rate under the Urban Mass Transit Programme would be made available to transporters, labour unions and other Nigerians involved in transport business. He said: “We have a duty to turn short term pain to long term gains; we are not here to punish Nigerians. We have a duty as government to cushion the temporary pains. What a shallow rationalisation? The ratio of the bus to the people is 1:100,000. How far can this go in extinguishing the fire of hardship inflicted on the people? Why not provide the buses before removing the subsidy? Are the buses going to be free? How about the people in the villages? Will the buses ply the horrible roads to bring goods from rural areas to the cities? With the poorly maintained urban roads, at

the end of the day, the buses will end up as scraps. We have seen government mass transit before and where it ended. The truth is that beyond awarding the contracts to friends and cronies, we might just be creating more wealth for the Western world where the buses are manufactured. Then what of the private sector? Will government ask them to pay their workers by 20th January also? How about the skyrocketing prices of commodities and services? Will salaries be tripled? The unanswered question remains: Is subsidy being removed to enable debt payment or to provide those infrastructures promised during electioneering campaigns? If justly the government is in need of cash for development, why not cut down the huge earnings of the leadership as was done in Malaysia? Let the Federal Executive Council pruned its members’ conveniences and inconveniences allowances, and reduce the number of aides and luxurious vehicles attached to their offices. Let the billion naira feeding allowance for the president be reviewed, the N5 billion for rehabilitation of nonfunctional first lady’s office be removed, N500 billion of the N921 billion proposed for security in 2012 budget be used for job creation – then we shall begin to see sincerity in seeking the people’s sacrifice. Let the Agangas, Ngozi Okonjo-Iwealas, Sanusi Lamido Sanusis disguise and enter public transport and feel the people’s agonies. When the leadership is completely out of touch with the reality at the grassroots, it will bring forth strange economic theories that bear no local relevance. The unchanged perception of the people is that those in government are only interested in realizing more money to share than the people’s wellbeing. Let the truth be told: It is not fuel subsidy that is killing the Nigerian economy; it is the ravenous greed and unchecked corruption of those in power. It is that unrighteousness that is leading to our economic collapse and the possible disintegration of the nation. The Boko Haram extremists are not really Muslims. They are not fighting religious battle. They are destructive tools in the hands of the political enemies of President Jonathan, desperate to bring him down. It is the battle that is now having its damaging tow on the country. But sadly, the president’s actions too are not helping matters; he seems to be insensitive to the machinations of his detractors who might be posing as friends. And this is why he needs Divine help at this critical time of his life. Rather than underrate Nigerians ability to launch revolution as was recently witnessed in Tunisia, Egypt and Libya, a wise leader must serve the people by giving them joy. Failure to respect the people’s mandate will lead to chaos that might get out of control. Many Nigerians today are willing to go on with the strike that might compound the economic situation rather than undergo further pains that have no assurance of healing, moreso as they are fast losing confidence in the government’s ability to protect their rights to liberty and meaningful life. The Heavenly father is only on the side of the righteous which is why it is only righteousness that can exalt a nation. This might just be an opportunity for God to arise for His own. In a cloudy moment like this, those who sow deadly seed should be sure of a harvest time.

Boko Haram plans to destroy Nigeria By Bola Ajibola On the political scene, there has always been allegation and counter allegation of marginalization and accusation of winner takes all. Then came the claim and agitation of resource control, particularly the oil revenue that we were exploring and exploiting in heaps and bounds in the Southsouth part of Nigeria. With all the attempts by the government to please the people of the Niger Delta and its environs, the agitation kept escalating because of their demand for larger share of the oil revenue. Attempts to placate the situation were made by the government which led to the creation of the Niger Delta Development Commission, NDDC. Nevertheless, the militants of the Niger Delta waged their own war against Nigeria and even planned to secede. Happily, it was to the credit of late Alhaji Umaru Yar’Adua who settled the ensuing economic chaos. With all these antecedents of ethnic, political and economic turbulence, many Nigerians felt that our problems were over and we have taken good care of them all and we should now settle down after 50 years of independence to good governance in our polity. Suddenly, we are now faced with a disturbance of a very serious religious dimension, the type that we have never experienced in this country before, either during the colonial era or since our independence. One horrendous aspect of it is even the international dimension that it has created for our dear country, thus alarmingly destroying the image of our nation as a peaceful giant of Africa. We now suffer being viewed as a pariah State and the name of Nigeria now stinks. But it is equally capable

of destroying our whole country which people like us have laboured with well meaning others to build. Religion is an emotive issue and our constitution, although not perfect, tries to make it a secular issue. However, ours is a multi religious nation and we have lived harmoniously thus for over 50 years and before. In the South-west, we have pursued a civilized approach to this matter in the belief that we are all serving the same one God as perceived by the two received faiths. We should not allow the Boko Haram people to throw us back into the dark ages in the name of religion. Enough is enough! Our Head of State and all the people in government should stand up immediately to effect damage control. Security is lacking and ineffective to control the situation. It should be beefed up so that the matter will not degenerate into religious warfare. That will amount to a primitive situation and action. This world has passed that stage. We should move forward and not backward. The President should not rule out the possibility of having a dialogue on this matter. It is not impossible that the purpose of this destructive act may have some political undertone capable of disintegrating the whole nation. There is a very strong suspicion that these people waging war in the name of Boko Haram, are doing so at the instigation of certain people possibly political figures who are bent on the destruction of the nation. Indeed there is nothing like “haram” in western education which was in fact, inherited from the Muslims in the days of Islamic civilization in Anderlus, Spain. Besides, knowledge is not considered as “haram” in the Holy Qur’an and Hadith that emphasized so much about education.

There is another disturbing aspect of the situation in our country at the moment whereby people indulge in unnecessary acts of merry making all in the name of festivals and carnivals while Nigerians are being killed mercilessly by this so called Boko Haram, even in churches and on Christmas day. Is this the time for merry making and irresponsible pantomime while innocent people are victims of nothing other than their faith? Nigeria ought to move away from senselessness and find solution to serious problems in our country. Indeed, people like us spent the prime of our time and life serving this nation diligently, selflessly and gratuitously. Such contributions should not be wasted. The government must therefore take care of and enforce the safety, security and daily protection of the citizens of this country in order to ensure peace and stability. The rule of law and adherence to human rights are equally important. They are primus and in governance they are sine qua non. We need peace and stability in Nigeria to ensure progressive development. Anything else is not civilization, progress, or peace. • Ajibola is the former Attorney-general and Minister of Justice

‘With all these antecedents of ethnic, political and economic turbulence, many Nigerians felt that our problems were over and we have taken good care of them all and we should now settle down after 50 years of independence to good governance in our polity’

THE NATION MONDAY, JANUARY 9, 2011

EDITORIAL/OPINION

R. Okechukwu Nwafor, a father of five has not traveled home with his family for the first time. Last December, he decided to take them home so that his aged mother could see them and also for the young ones to get themselves familiar with their roots. The journey was made possible through years of savings and personal denials. He had reckoned that with the prevailing transport fares from Lagos to his village somewhere in Imo state ,he could comfortably transport them home and back A few days to Christmas, he set out with his entire family. Since his calculations were based on subsisting transport fares which are usually on the increase during this season, he had little difficulty arriving at his ancestral home with his entire family safely to the warm embrace of his relations. The celebrations were eventful. There were as usual, a lot of activities ranging from weddings to thanksgiving ceremonies, personal visits and burials. All these also took their toll on the budget of Mr. Nwafor in addition to the expenses incurred on merriment for which the season is known. Then came the New Year. The little that was left was meant to tidy up the New Year celebrations in preparation for the journey back to Lagos. He had attended the midnight mass service and ushered in the New Year with great expectations usually marked with shouts of: Happy New Year! Happy New Year! But these expectations of the good tidings that were to come with the New Year later that day, turned sour when he was told that the price of petrol had been increased from N65 per liter to something around N141 per liter. His immediate concern was how to get back to Lagos with his entire family now that the price of fuel has been increased beyond expectations. He was sure that both the marketers and the transporters were going to take advantage of the situation given what we know of the general attitude of Nigerians to situations as this. This is more so given the very high movement of people during this period. He was not in any iota of doubt that the increase had rendered unrealistic his budget for traveling back to Lagos. The immediate concern was therefore how to raise additional money to make up for the shortfall brought about by the increase. How Mr. Nwafor is able to solve this problem will determine how and when he will travel back

Emeka OMEIHE 08121971199 email: EmekaOmeihe@yahoo.com

In New Year with hardship to Lagos with his family. But there is no doubt that he has a great challenge ahead of him. The experience of Mr. Nwafor mirrors very vividly the predicament of most Nigerians since the Petroleum Products Pricing Regulatory Agency PPPRA announced the deregulation of the downstream sector of the Nigerian oil industry in the New Year. In making that announcement which took most Nigerians by surprise, the agency had promised consumers adequate supply at prices that are competitive and non-exploitative and so ‘there is no need for anyone to engage in panic buying or product hoarding’. It said that service providers in the sector are to procure products and sell same in accordance with the indicative benchmark price to be published fortnightly and posted on the PPPRA website even as it promised to ensure that ‘consumers are not taken advantage of in any form or in any way’ But since that announcement, the facts on the ground speak to the contrary. In place of these promises by the agency, what we have witnessed has been exploitation and the taking of undue advantage of the situation by sundry dealers and marketers of the product to exploit consumers. Not only did the product disappear from the filing stations, those that cared to sell are having a field day selling the product at any amount that suited their whims and caprices. The situation was so bad that it immediately precipitated spontaneous protests in a number of cities in the country in which at least one person was reported

dead. These protests, apart from registering the peoples dissatisfaction with the deregulation of the down stream sector of the oil sector were propelled in the main, by the way the PPPRA went about this very sensitive matter. First, its announcement left a big vacuum as to the actual pump price of the product. All that we have to contend with was to watch out for its indicative benchmark price that is to be published fortnightly by the agency and posted in its website. Meanwhile this has left every body including the marketers in doubt as to the actual amount the product will sell for. Trust our people. In the absence of that specificity on the selling price of fuel coupled with the high demand of the product during this season, the price went up as high as N200 per liter in many places. Even at that, most of the meters were tampered with such that what was actually sold was less thus further compounding the situation. Thus the PPPRA made two grave mistakes in the way and manner it went about the price increase. First, the timing was very bad. It was rather very unconscionable for the agency to have announced the price increase on a New Year day when many Nigerians were out of their stations on account of the festivities. If at all the agency must announce the increase this season, it ought to have waited for those that traveled to return before going public with the exercise. By not anticipating the untold hardship the

announcement will bring about in the form of prohibiting transport fares, the agency sabotaged its promise to work in concert with the Department of Petroleum Resources DPR to ensure that consumers are not taken advantage of in any form and in any way. The facts on the ground speak of unbridled exploitation by sundry operatives in the sector. Even the promise of product availability has at best remained a mirage. In all fronts therefore, both the timing of the exercise and its execution have left much to be desired such that the people are now groaning under the debilitating difficulties brought about by this act of indiscretion. It was therefore a bad New Year gift for the agency to have assumed that that day was the most appropriate to increase the price of the product. It was certainly the worst day to do that. Secondly, the agency goofed by not indicating from the start, what the actual selling price of fuel would be. Its promise to publish the so called indicative benchmark selling price of the product in its website was neither here nor there for such a very sensitive decision. This inability or outright refusal for whatever reasons had two immediate consequences. It threw open the exercise to all manner of speculations. Such speculations did not help matters as they raised tension in the land culminating perhaps to the protests that were recorded across the country. Again, it now emboldened marketers and sundry sellers of fuel to fix any price they liked so as to make more money. The net effect has been the exploitation of consumers since the deregulation was announced. It is acts of indiscretion like this leading to faulty policy execution and implementation that had accounted for the stiff opposition the subsidy debate has been facing. It is for the same reasons that there was high demand for the implementation first, of those safety nets promised by the government before the removal could be effected. If the announcement could not fully anticipate all the factors that could influence the most suitable date for the deregulation exercise, what guarantee is there that all we have been promised government will do to mitigate the harsh effects of the exercise will not go the way of this first and faulty step? That is the poser that events will soon resolve. We are watching.

VIEW FROM THE FOREIGN PRESS

Y take on the removal of oil subsidy is that it should not elicit industrial action from organized labour. This is not because I do not see and appreciate the position of the majority of Nigerians who are already groaning under the deadweight of the subsidy removal. Oil subsidy, even with due deference to the informed and multifarious voices endlessly denying its existence, have repeatedly been removed in this country with dire consequences. But the subsidies got removed nonetheless, with the resultant reenactment of the suffering of the underdogs associated with the exercise. Putting this into consideration, it is difficult to see how strikes will reverse the latest subsidy removal. What I propose is only an option, which is why I have mentioned in the title of this piece that it is just a way forward. There are other ways, of course. But let us tackle the ancillary matters first. Our love for each other is legendary. That explains why bus operators whose vehicles use diesel, a product that was unaffected by the subsidy removal, also hiked their fares. That was why many of the petrol stations simply shut down operations even though they had fuel in store previously supplied to them at subsidized prices. That explains why those of the stations open for business decided to sell at pump prices way above the N141 a litre dictated by the new arrangement. Our love for each other is legendary. That is why I must now move to my panacea for our current oil-related difficulties. As far as I am concerned, Nigeria’s principal problem on oil is epic corruption. If this corruption is not extirpated, the benefits currently being touted to issue from the removed subsidy will remain a mirage, to be pursued but forever unattained. Reginald Stanley, the Executive Secretary of the Petroleum Products Pricing Regulatory agency (PPPRA), told a House of Representatives hearing on December 2, 2011 that the country had spent a colossal N3.65 trillion in fuel subsidies since 2006. More than a third of this gargantuan sum was blown in the first nine months of 2011 alone! That meant that from January to September 2011, Nigeria spent thrice more in fuel subsides what it spent during 2010. The figure stood at N500 billion in 2010. But it executed a hop-step-and-jump

Oil subsidy removal and a way forward By Chuks Iloegbunam to N1.5 trillion in the first nine months of 2011. For the thoughtful, the question to ask is simple: What led to the geometric escalation of subsidy expenditure during 2011? If this puzzle is not identified and solved, all talk of a better life for Nigerians on account of the new price regime for oil will amount to bunkum. It was not that the number of vehicles in the country doubled. They did not. It was not that new industries mushroomed across the land. They did not. It was not really down to price fluctuations in international oil prices because lower prices never resulted in reduced pump prices in Nigeria. Corruption is largely to blame. At the Town hall meeting held in Lagos late last year on the oil subsidy issue, Governor Adams Oshiomhole of Edo State stated before a distinguished audience and on live television some of the devious ways in which kleptocratic carnivores connected with the oil industry have remorselessly left Nigeria high and dry and hemorrhaging. Even before a shipload of refined oil sets sail for Nigeria from, say, Singapore, said the Governor, demurrage charges are already in computation at the Apapa ports! Oftentimes, ships berth at our ports and go through all the formalities without discharging even a pint of oil. Subsequently, the ships leave the ports and cruise the high seas for a few days, after which they resurface at our ports marked as carrying fresh oil supplies. A ship that does this fives times costs the nation five times the cost of a shipload of fuel. Governor Oshiomhole moaned that all the Nigerian accounting firms, without exception, charged with the responsibility of ascertaining the quantum of fuel brought into the country have been sucked into the vortex of corruption. He added that when a special committee of which he was a member suggested that reputable foreign

accounting firms be engaged to do the job which corruption prevented their Nigerian counterparts from doing, their committee got unceremoniously disbanded. To the honest and informed, the Edo State Governor was not saying anything new. What is ardently hoped is that the administration of President Goodluck Jonathan will undertake to do something new. The easy and countless billions daily issuing to the cartel in control of oil business in Nigeria should be of concern to all and sundry. It is the kind of dubious money that is ploughed into fomenting endless national crises by unpatriotic and filthily wealthy individuals. It is the kind of money that probably accounts for Nigerians having bought up half of the houses in Dubai! It is the kind of money used for sponsoring charlatans into high political offices to the ruin of all our lives. It is the kind of money that easily succumbs to the temptation of being used to finance terrorism. It is the kind of money that corrupts everything it comes in contact with, shattering the head of justice and turning truth on its head. However, I do not agree with those muttering at the Town Hall meeting that any government that tackles this corruption head on could end up in its belly. President Jonathan should combat this corruption head on and hands on! The removal of oil subsidy could mean a farewell to demurrage paid through the bleeding hearts of Nigerians because independent marketers, not ad-hoc contractors importing on behalf of government, will now do their business, being in position to halt demurrage that they will settle from their pockets if that ever occurs. But oil subsidy removal will not halt the falsification of figures relating to the amount of fuel imported into the country and

the cost at which the commodity is brought in. Oil subsidy removal will not halt all the thieving going on in the oil industry to the lamentable detriment of ordinary Nigerians. In addition to all the measures already outlined for reducing the sufferings resulting from subsidy removal, the government should consider immediately replacing corrupt accounting firms with foreign alternatives that will be in a position to state at all times whether Nigeria imported only a barrel of premium motor spirit or a trillion barrels. Barrister Femi Falana mentioned at the Town Hall meeting that Nigeria’s neighbours are amenable to the idea of NNPC mega stations being set up in their own countries as a means of checking smuggling. The government should buy the idea. Season in and season out, there is kerosene scarcity in Nigeria, which the Petroleum Minister blamed on the smuggling of the commodity to other countries. But Nigerians know that the smuggling in question is not of the brand done in jerry cans. Shiploads of kerosene meant for Nigeria get diverted to other countries. That is the brand of smuggling that leaves hungry housewives and other Nigerians endlessly at petrol stations that have no kerosene to sell! The government should in fact institute a high-powered judicial panel to probe the entire oil industry. For instance, how much did they pay in taxes who collected a whopping N1.5 trillion of our national patrimony over nine months? If President Jonathan gets it right, his action of removing the oil subsidy will be like the pains of labour which a woman forgets at the instant of successful delivery. • Iloegbunam’s email address: iloegbunam@hotmail.com

‘It is the kind of money used for sponsoring charlatans into high political offices to the ruin of all our lives. It is the kind of money that easily succumbs to the temptation of being used to finance terrorism’

THE NATION MONDAY, JANUARY 9, 2012

EDITORIAL/OPINION

Emeka OMEIHE 08121971199 email: EmekaOmeihe@yahoo.com

VIEW FROM THE FOREIGN PRESS

THE NATION MONDAY, JANUARY 9, 2012

MONDAY, JANUARY 9, 2012

NATION SPORT

Women Club owners threaten to impeach Dilichukwu •Evumena, Iwegbu fault league boycott

HE Nigeria female football club owners/chairmen association has dissociated themselves from the alleged boycott of the league tentatively due for February 4 and even threatening the body's Chairperson Onyedinma Dilichukwu, for not having a clear cut programme of action. The alleged threat was hinged on the NFF’s appointment of CAF media committee member, Aisha Falode as the coordinator of the women national teams. The appointment has not sat well with the chairperson, Nigeria Women League, Mrs Onyedinma Dilichukwu who wants it reversed. In a stout denial of the rumoured boycott of the league over Falode's appointment, the body's secretary, Dan Evumena told SuperSport.com that no meeting of the body had sat to take such decision. "Club owners association is quite different from the women league board of the NFF. Club owners have never met either to agree or

disagree over the appointment of Aisha Falode as coordinator of the women national teams. "We never took any decision to boycott the league. If Dilichukwu feels bad over the appointment that is strictly personal. "As stakeholders in the league, I am not aware of any law that gives the league board power over the choice of who NFF appoints into positions. Women league board, club owners, too, do not have such powers over appointment. "Since June last year when she came into office we never met and so nobody would have decided to boycott the league. "We are even in the dark as to the commencement date for the league. We are ready, we have filled the registration forms but no meeting yet to decide on draws, fixtures and other formalities." The Delta Queens' man advised the chairperson to channel her energy towards bringing back the past glory of the league.

Enyimba to unveil Technical Adviser this week

HE Chairman of Enyimba FC, Felix Anyansi Agwu has distant himself from the reports in the media that Austin Eguavoen has been named as the team’s new Technical Adviser but stressed that the Peoples’ Elephants’ new head coach would be unveiled this week. Anyansi who refused to comment on the possible choice for the plum job told NationSport that, “In football everything is possible and I don’t want to pre-empt what we have in stock. I

•Anyansi

From Tunde Liadi, Owerri believe by next week (this week) we should be able to unveil the Technical Adviser. I believe this will put an end to the talk on what the identity of the new coach will look like.” Meanwhile, the current chief coach of the Aba Millionaires, Abdul Maikaba has stated that he was ready and willing to work under any Technical Adviser the club acquired adding that he had never been in any way being distracted by the talk about the new head coach. Speaking with NationSport shortly after the club’s 2-0 home win over Abubakar Bukola Saraki FC in Aba, Maikaba noted that the acquisition of another new hand into the coaching staff would only make the team an envy of all. “The talk about the technical adviser has not distracted me in anyway. I am ready to work in any capacity, mine is just to contribute my quota to the team,”Maikaba said. It would be recalled that Enyimba’s last Technical Adviser, Okey Emordi resigned immediately after the conclusion of the NPL season and now coaches Enugu Rangers.

"Dilichukwu should strive to wake up the women league, get sponsors and try to return the league to its past glory. "There is no need to fight NFF over women teams appointment. "This is not the time but to support NFF towards repositioning the women league," he said. In similar vein, the foundation member of the club owners/team managers association and team manager of Inneh Queens, Sunny Iwegbu described the alleged threat as false and handiwork of mischief makers. "Club owners never met, I was shocked to read that the body wants to boycott the league over Falode's appointment.There is no such decision, I have collected and filled the registration forms the same as other clubs and we are waiting for the February 4 kick-off date. "Club owners do not make appointments but are after the growth and development of the league and not into politicking. "The league chairperson should focus lifting the profile of the league, attract sponsors and make it competitive and viable," he said. On his part spokeperson of the Club Owners Asociation and Team Manager of Pelican Stars of Calabar, Hanson Udoh, described the alleged meeting as fraudulent and a move by football politicians to drag the game backward. "I did not attend such meeting as the body's PRO, so those who said they met should bring the minutes of the meeting, otherwise they should be sanctioned by the NFF for trying to bring the game into disrepute, early in the New Year".

JANUARY 11 FRIENDLY

Completion of Jos Stadium to gulp N3bn T

HE Jos Township Stadium, which is undergoing reconstruction, is expected to gulp about N3 billion, while its seating capacity would be increased from 20, 000 to between 42, 000 and 45,000. The contractor handling the project, Mr Plamen Iliev, who spoke to the NationSport in a telephone chat Saturday, said the project is expected to be completed by the end of 2012. Iliev,who is the Managing Director of BCC-TROPICAL Nigeria Ltd, disclosed that Governor Jang’s enthusiasm on the completion date of the project informed his government’s determination to mobilize the contrator to site last April“. Already, Jang said that the sum of N926million has been released to the contractor as mobilisation fees, adding that work on the project is in progress. “Governor (Jang) was very enthusiastic about the project and has earmarked another N1.5b in the state 2012 budget for its completion. “We hope to see that the main bowl is completed before May 29, 2012 to enable the Governor celebrate ‘democracy’ day right inside the stadium,’’ he said. Iliev listed some of the facilities at the stadium to include a football pitch of artificial turf, athletics tracks, four dressing rooms, four media halls, four restaurants and 11 fast food halls. Others include indoor games hall, a state box and two press galleries

From Kolade Adeyemi, Kano FIFA Technical Adviser, on Sports facilities, Mr. Marotzke Heinz, has expressed satisfaction with the quality of the on-going work at the Jos Stadium. Heinz, who was in Jos to inspect the construction work, commended the handlers for complying with FIFA’s specifications.

“I am satisfied with what I have seen so far; FIFA does not compromise standard and I am happy that the handlers are faithful to the guidelines as provided by the football world governing body. It would be recalled that work began on the stadium about 20 years ago, but was abandoned by successive administrations before Governor Jonah Jang re-awarded the contract for the completion of the stadium to BCC-TROPICAL Nigeria Ltd.

2013 AFRICAN CUP QUALIFIER

CAF postpones Lesotho/ Sao Tome

HE Confederation of African Football (CAF) has agreed to postpone the first qualifier for the 2013 African Cup of Nations because the Lesotho team was unable to travel to Sao Tome e Principe in time for Sunday’s first-leg match. CAF said the first-round, first-leg game was postponed until next Sunday, Jan. 15, after Lesotho could not find flights to the island nation off Africa’s west coast. The second leg remains scheduled for Jan. 22. The start of qualifying for next year’s tournament was already troubled by the withdrawal of Swaziland ahead of its first-round tie against Seychelles. Swaziland’s football federation said it could not afford to compete. The 2012 African Cup starts January 21, after which it will move to odd years to avoid clashing with the World Cup.

This season will be great for me –Ajani A JANI Ibrahim of Sunshine Stars of Akure has tipped this season to be a successful season for him. Ajani who was runner up for highest goal scorer last season, had maintained a steady lead on the goal table till he got overtaken by Jude Aneke of Kaduna Utd in the dying moments of the league told NationSport that he is prepared to fight again this season and is much more hopeful that this time will spell great things for him. "I thank the Almighty God for last season. I see this season as one that will be very great for me. I see it that it holds good things for me. I've started my first match today, though I did not score, I still played my normal game and I believe that by the end of this season, everything will be fine for me". Ajani went on to say that he can't predict the number of goals he will score this season but is quite sure to surpass this season. "I can't say how many goals I will score this season because I’m not God but am happy for my game last season. Though at a point I was sure to have hit the twentygoal mark but it ended up as nineteen.

•Jonathan wants Angola friendly in Nigeria •Directs minister to write Angolan government, FA •Team told to wait for further directives

ATIONSPORT can reveal exclusively today that President Goodluck Ebere Jonathan has directed that Super Eagles should not proceed to Cotonou for the January 11 friendly football match against Angola because there are no security issues in the country. Consequently, President Jonathan asked the Honourable Minister of Sports, Bolaji Abdullahi, to open consultations with Angolan government and the country’s FA guaranteeing them that Nigeria is safe and not at war and the game can hold in Nigeria as planned. NationSport gathered further that the government is prepared to guarantee security for the Angolans before, during and after the match. The government is also willing to grant them permission to land in the country with chartered flight without hassles. The letter, as gathered, was being put together last night to the Angolan government and FA on the new

By Ade Ojeikere development. Interestingly, Nigerian Football Federation (NFF) chiefs have passed the message to the team and told to wait for further directive.

T • Jonathan

•Issa Hayatou

SC player, Sheriff Abolade who was involved in an auto crash last year has informed NationSport that he would start jogging and light training at the beginning of March this year after having made massive improvement from the incident which had made him sidelined him for quite some time. Abolade who had the road mishap on the busy Lagos/Ibadan Expressway which claimed many lives, told NationSport that with the considerable changes he has made he would be back

From Tunde Liadi, Owerri in action very soon. He expressed his delight at the recovery rate and stated that he thanked God for counting him worthy to still be alive after all what he had faced in recent time. “I will start doing light training and jogging by the end of February or the beginning of March this year. I am happy at the development and cannot wait till I kick my first ball since last year,” Abolade stated.

Tenger blames ‘emergency’ start for Tornadoes loss

Emenalo to watch Omeruo’s debut ATIONSPORT has reliably for Den Haag gathered that Chelsea FC of England Technical Director,

Mike Emenalo will be in the stands when the new Stamford Bridge Owners’ acquisition, Kenneth Omeruo makes his debut for the club he was loaned to, ADO Den Haag of Holland. Omeruo, a member of the Nigeria’s Flying Eagles squad that exited at the last 8 in last year’s FIFA Under-20 World Cup in Colombia completed his dream switch from Standard Liege of Belgium to Chelsea last Friday and a close confidant of the lanky defender stressed that Emenalo would be back in Holland to watch Kenneth in his

•Starts jogging and light training in March

From Tunde Liadi, Owerri first match in the Dutch Eredivisie. He added that besides watching Omeruo play his first match for Den Haag, Emenalo would continue to crisscross Engand and Holland to have a proper look at the Nigerian and then assessed his progress or otherwise with the club. The source said that Kenneth’s new team, Den Haag is presently in Spain engaging in warm up matches preparatory to the start of the second round of the Dutch League where the club currently lies among the mid table teams. NationSport further scooped that what informed Chelsea’s decision to settle for a loan move from Den Haag was owing to the club’s track record of solely making use of young players which he reckons will make the players to be mentally strong and physically ready to face the challenges before them in the round leather game. Omeruo was an integral member of the Golden Eaglets class of 2009 that got to the final of the FIFA Under-17 World Cup that year when it was hosted by Nigeria and he gave a good account of himself one which earned him the movement to Standard Liege of Belgium from Nigeria Premier League side, Sunshine Stars last year.

HE chief coach of Niger Tornadoes Football Club of Minna, Justin Tenger has attributed the defeat the team suffered in the hands of the Kano Pillars Football Club to lack of proper preparation of the club. Tenger, who spoke to NationSport shortly after Kano Pillars defeated his team 1-0 in their first match of the Nigeria Premier league at the Sani Abacha Stadium on Saturday, said that: “I filed in half team due to the emergency in the start of the league, that will not deter us in our next match. According to him, most of the clubs in the country may not have adequately prepared due to the rush to start the league, organised by the Nigeria Premier League (NPL) , pointing out that in our next match, Tornadoes will come back strong because four of my regular players did not feature in the first match. “You can see we are technically better, I paraded young talented

players, and as such we have a long way to go, I cannot blame them for their first defeat because we were half prepared.” Kano Pillars’ Chief Coach, Baba Ganarru, said that in most cases, the first match in the Premier league is always difficult but I thank God that we defeated the enterprising Niger Tornadoes of Minna . Ganarru, explained that his attack was not potent, adding that: “There is room for improvement, as we are going to work on it in our subsequent matches, admitting that Tornadoes is a good team. Meanwhile, Kano Pillars Football Club recorded their first goal in the 61st minute through Nazifi Ammani, spotting jersey No 5 through a header from a pull out. Niger Tornadoes captain, Sobole Shehu and his Kano Pillars counterpart, Abubakar Baleria said that both teams paraded young talented players, who are yet to blend.

Essien returns on Monday in friendly C HELSEA midfielder Michael Essien will return to action on Monday after a sixmonth injury-induced absence. The Ghana international is pencilled to play a part in Chelsea’s reserves in a game against West Brom at Cobham on Monday. Essien has not played a match this season after suffering a serious knee injury while training with the club in pre-season. The 29-year-old has endured injury-hit spells in the past and will have to build his match fitness with matches for the club's second side until he gains full fitness. The powerful midfielder's return will be a massive boost for Chelsea who have been struggling in the absence of the influential player. Essien has been excluded from

Ghana's squad preparing for the Africa Cup of Nations because of the injury.

Jarome Iginla scores his 500th goal

Florence Nkem Israel, Port Harcourt "There is nothing I can say but am sure that by the grace of God, I would make the name that I could not make last season. I hope and I feel it that I will hit the mark this time", he said.

•Ajani

Presidency stops Eagles

Abolade moves closer to recovery

•Peter Odemwingie of West Bromwich Albion celebrates after scoring

AROME Iginla has reached the 500-goal milestone. The Calgary Flames’ captain scored the 500th goal of his career Saturday against the Minnesota Wild. Iginla came down the right wing and sent a pass in front that went off the skates of two Minnesota players and in past Wild goalie Nicklas Backstrom. The goal at 8:33 of the third period gave Calgary a 2-0 lead. There was a brief pause at the Saddledome as fans wondered if another Flames player had deflected the puck in the net. But the crowd erupted soon after into a standing ovation and every Calgary player spilled off the bench to congratulate Iginla. Chants of “Iggy, Iggy” soon filled the arena as Iginla stood on the bench and acknowledged the crowd with a wave. Former teammate Theo Fleury noted his former teammate’s accomplishment on Twitter:

“Congrats Iggy on 500 Way to go!!!!” Iginla is the 42nd player in NHL history to reach the milestone and the 15th to do it with one team. His first regular-season goal came

in his first regular-season game, Oct. 5, 1996, against the Vancouver Canucks.

Norwich boss contacts Oldham's Adeyemi

•Iginla

ORWICH City boss Paul Lambert was instantly in contact with Tom Adeyemi after his incident at Liverpool on Friday. Adeyemi is on-loan at Oldham Athletic from Norwich and was seen by a national audience driven to tears by alleged racist abuse coming from Liverpool fans. "He is only a kid learning the game, one of the nicest lads you will ever meet," said Norwich manager Paul Lambert, who made a point of contacting Adeyemi after the incident. "He is a really intelligent lad."

MONDAY, JANUARY 9, 2012

POLITICS THE NATION

E-mail:- politics@thenationonlineng.net

2012 IN PERSPECTIVE

Elusive search for true federalism Nigeria is beset with crises of nation-building and development, owing to its refusal to confront the contentious national question critical to its survival as a plural country. Deputy Political Editor EMMANUEL OLADESU examines the agitations in the context of plans to amend the 1999 Constitution and agitations by governors for more equitable distribution of federally collected revenue in 2012.

LMOST 52 years after independence, federalism is still on trial in Nigeria. Although there is a consensus among the component units that the best system of government for the plural country is federalism, it has remained an elusive target, especially in post-military period. The greatest challenge of nation-building is the inability of the diverse people and leadership to properly engage the national question. This year, constitution review is on the agenda of the federal government. A review panel has been set up. It is chaired by Justice Alfa Belgore(rtd). But the question on the lips of many Nigeians is: Can the exercise restore true fiscal federalism? Apparently, there is no controversy about how the national revenue is generated. The bone of contention is the distribution of the wealth, which is typically referred to as the national cake. In 1999, the vertical allocation formula inherited by the civilian regime sparked off agitations for review. Then, the federal government had 48.5 per cent; 36 state governments, 24 percent, 774 local governments, 20 per cent; ecology, two per cent, stabilization, 0.5 per cent; derivation, one per cent and Oil Minerals Producing Development Company, three per cent. Pro-National Conference Organisation (PRONACO), which kicked against the arrangement, proposed a new fiscal formula as follows: 50 percent to region of derivation, 15 percent to the federal government, 35 per cent to be shared by all regions, 85 per cent Valued Added Tax (VAT) to be retained by the regions and only 15 per cent should go to the first-line charge account. Other stakeholders proposed reviews that would have drastically reduced the proceeds accruable to the government. Since the economy is not diversified, regions producing oil, the main source of income, have intensified their struggle for more earnings. In response to their yearning, the Abuja Political Conference, which report never saw the light of the day, proposed a almost 21 per cent earning for the oil-producing states. The existing formula; 48 percent for federal, 24 for states, 20 for local governments and 7.5 for special funding, is still being contested by stakeholders. Their grievance is premised on the fear that the federal government has financially emasculated the 36 states and 774 councils. The formula, they maintained, is anti-federal in nature. Many believe that the avoidance of the core federal principle has contributed to the fragility of the nation-state. No doubt, the enlarged national question, which involves the division of the public sector functions and finances among the two tiers, has underscored the renewed debate on fiscal federalism and devolution powers. As the power-loaded and central government which monopolises the national resources grapples with the ever increasing difficulty of meeting the developmental needs and aspirations of the different units in the heterogeneous country, devolution appears to be the ultimate option. Action Congress of Nigeria (ACN) National Chairman, Chief Bisi Akande, who dissected the federal structure, lamented that all is not well, adding that leaders at the helm of affairs avoid the right solution to the country’s peril. He said: “The peculiarities of the Nigerian landscape demand a creative search for answers to has unique challenges through federalism”. A former university teacher, Prof. Ropo Sekoni, said that there is no alternative to federalism, except confederation. To the retired university don and political commentator, restoration of true federalism is imperative to avert the collapse of the country. He added: “Since the amalgamation of the Southern and Northern Protectorates in 1914, the national question has been staring the diverse tribes in the face. The basis

• Jonathan

for co-existence is neither defined nor mutually agreed upon by the natives who make up what the British interlopers scornfully and derisively referred to as “enemy tribes”. In his critique of the wobbling Nigerian project, frontline legal scholar and devolution advocate Prof. Itsey Sagay (SAN), who shares Akande’s view, noted that :”Nigeria represents a classic condition for the operation of a very loose federation. He contented that true federalism is a condition precedent for the survival of the country as a voluntary union of nationalities and autonomous communities. “Nigeria’s antecedents establish clearly that there is no alternative to federalism, except confederalism, which nobody wants at present”, he stressed. Sagay only re-echoed the fundamental issue raised by the frontline nationalist, the late Chief Obafemi Awolowo, 65 years ago. In his book, ‘The path to Nigeria’s freedom’, Awolowo canvassed the federal option, explaining that, a multi-ethnic country like Nigeria can only realise its potentials when it embraces true federalism. As if he was reading his lip, another nationalist, the late Chief Anthony Enahoro, posited that any form of unitary system harbours the danger of not giving maximum expression to the peculiarities that differentiate the groupings co-habiting involuntarily and without basic, unifying agreement on the terms of co-existence. Recent events, including repeated clamour for self-determination, bombings, and disputation on sharing of national revenue reinforce the argument that foisting a centrist, unitary system on an amalgam of nations smack of injustice. In Nigeria, sources of passion and disagreement now include state and local government creation, resource control, state and community police, Land Use Act, Niger Delta Crisis, Boko Haram onslaught, federal character premised on equity, rotational Presidency, zoning of party and other political offices, the structure of judiciary and mode of inter-governmental relations. A Political Scientist, Prof. Dipo Kolawole,

• Akande

pointed out that the operators of the lopsided system drove Nigeria into deeper crisis, which the lack of firm federal foundation accentuated. “If the Nigerian project was perceived as unworkable from the onset, the form of government to sustain it had no foundation to rest on and therefore, was bound to be a still birth. The argument is that the mode of emergence of Nigerian federalism constitutes an albatross on its effective workability as an instrument of good governance”, he stressed. As the agitation for restructuring fill the air, stakeholders gradually withdraw their emotional attachment to nationhood, owing to the elusive search for true federalism. More than five decades, the search for answers is energy sapping. As observed by frontline lawyer and politician, Chief Ayo Adebanjo, true federalism, indeed true fiscal federalism, is a tall order for the collection of antagonistic tribes lumped together by the colonial masters to cohabit under a nonunifying name, Nigeria. In his view, the grim reality of the country’s troubled existence is that the Federal Republic of Nigeria better fits into the characterisation of a struggling unitary state retarded by some inherent tendencies and weaknesses foisted by its colonial heritage and havoc wrecked by long years of military rule. There are now fears, as warned by the former Chief of Defense Staff, Gen. Alani Akinrinade (rtd) and activist cleric, Pastor Tunde Bakare, that the “fake union” risks disintegration. Bakare, Congress for Progressive Change (CPC) vice presidential candidate said that, to avert the looming tragedy, the country has to return to the initial agreement at the constitutional formative stage of Nigeria in the fifties. Warning about the delay in restoring true federalism, Bakare said: “Government that is centralised is satanic and evil”. Akinrinade, who fought in the three-year civil war to keep Nigeria together, pointed out that the cries of the ethnic nationalities for self-determination are not misplaced, explaining that they stem from long years of disillusionment, anxiety, injustice, and rejection of the existing flawed

‘A united central police organisation is still in place, making serious and effective policing difficult and almost impossible. The chain of control in the Nigeria Police Force today is too long and remote from the centre of operation, weakening discipline and resulting in an ineffective law enforcement process’

• Belgore

system. With the erosion of the federal character and principle, the nation-state moved at a snail-speed, forfeiting in a steady manner the potentials and chances of graduating into a nation. The skewed and lopsided federal structure failed the test of eliciting mutual consent and regional respect, especially when the military came to dismantle it and foisted on the trembling amalgam of ethnic nations a powerful centre which lacked regard for local interest and cardinal peculiarities. Thus, as pointed out by Sekoni, the distant centre took over the responsibilities of the states and local governments. Later, the massive inflow of petrol-dollar made the federal government to acquire more money and responsibilities which it has poorly or improperly performed at the expense of the repressed coordinate units. The result, in part, is the crisis of identity and loss of a sense of belonging. Indeed, while the indigenes of the 250 tribes, which are unequal partners in the involuntary and imaginary union think and respond to the political milieu in terms of the diverse, almost antagonistic objectives and latent peculiarities of their bitter and competing ethnic backgrounds, the development of national outlook has become increasingly difficult. At a lecture in Lagos, former Executive Secretary, Economic Commission for Africa (ECA), Prof. Adebayo Adedeji, warned that, when true federalism, which is the strength and consolation in a multi-lingual, multi-ethnic country is axed, the result is disaster. The consequence is that, “unity in diversity”, which is the consoling slogan of federalism, would be unattainable, when the regions or states are coordinate with an over-bearing, classy, power-loaded national government , largely perceived as a tribal symbol, indulges in over-monopolisation of resources and overcentralisation of powers, at the expense of the poor and pauperised lower tiers. The climax of the abuse of power by the centre, as pointed out by Lagos lawyer, Femi Falana, manifested in the overriding power of declaration of state of emergency, in accordance with the whims and caprices of the powerful head of government.. Also flaying the military for the ‘Nationalisation Policy’, Sekoni, who observed that a virulent attack against the federal structure was consistent with Obasanjo’s antecedents, blamed the former military ruler for starting off the process of “deferating” Nigeria. • Continued on page 26

THE NATION MONDAY, JANUARY 9, 2012

POLITICS

Can constitution review restore true federalism? • Continued from page 25

In his book: ‘How President Obasanjo subverted Nigeria’s federal system’, frontline Professor of Law Ben Nwabueze (SAN) stated that the former President exercised supreme, absolute and all-encompassing power, adding that he related to the governor as if they were his agents and subject to his direction. “His attitude towards the state governors as his subordinates, rather than as heads of autonomous governments; a carryover from the days of his tenure as the Head of the Federal Military Government from 1976-79; is reflected in his insistence that governors must inform him, perhaps, even obtain his permission, before travelling abroad, implying a relationship of subordination, the subjection of the governors to his authority”. Nwabueze also objected to the attempt to make the states beggars by the federal government. He said: “The mechanism for the disbursement to the state governments of the share of money due to them from the common pool of revenue, the Federation Account, as it is called, is so contrived as to force the governors and their officials to leave their various capitals and go physically, cap in hand, to the federal government at Abuja and hassle for it every month””. In fact, many analysts have blamed the military for the fizzling out the elementary gains of federalism savoured by the regions when they displaced legitimate authorities in 1966. The seeds of regionalism sowed by the colonial governor, Arthur Richard, laid the premise for federalism in 1946. As from 1951, it was evident that the emerging country could only manage to survive as a federal entity. Thus, Governor Macpherson sent his proposed constitutional draft to the representatives of the towns, villages, districts, and provinces for debate. The constitution that emerged from that broad deliberations outlawed the unitary system. Yet, the various units did not adopt federalism blindly. There were equivalent agitations for regional autonomy. As recalled by the late Justice Udo Udoma, a former member of House of Representatives in the First Republic, “the General Conference made a strong case for the devolution of powers or increased autonomy to each of the regions on the ground that the principle had been wholeheartedly accepted and indeed, welcomed”. The former Supreme Court Judge noted that the conference was also of the view that over-centralisation would be a grave error in a vast country like Nigeria, with widely wide diversities and needs, stressing that the policy received enthusiastic support nationwide. The implication was that the nationalists looked forward to a policy of achieving unity at the centre flowing from the terms and strengths of the subscribing regions. Sagay, who reflected on this expectation, submitted that “it was confidently expected that when the regions felt that they had wide powers to run their own regional affairs, they would be more likely to cooperate with the other regions through their representatives in the Council of Ministers and House of Representatives in serving the interest of Nigeria as a whole”. To give expression to this, Sagay recalled that Nigeria had four governments and constitutions at independence in 1960. There was a federal government, with a separate constitution, and the regions; East, West and North; had their governments and constitutions. In 1963, when the Midwest Region was created, it had its own separate government and constitution. Instructively, in the First Republic,

•Sagay

the revenue allocation formula posed no threat to either the central or regions. The founding fathers agreed on the principles of derivation, needs and national interest. It was turned upside down in 1966, following military intervention in politics. The new Head of State, gen. Thomas Aguiyi Ironsi, was a political novice. He displaced the 1963 Constitution and foisted a unitary regime. Up came two draconian decrees; The Constitution Amendment and Modification Decree and State Securities (Detention of Persons) Decree, which introduced a highly centralised political structure. That legacy was sustained throughout the first 13 years of military rule. Then, inequitable state creation became the response of the military government to the calls for the release of pseudo-autonomy to the various units. But the exercise was further manipulated by the ruling class to further divide the country, owing to lack of fair distribution of the states and local governments across the four main regions. “Today, Nigeria is a federation of an excessively strong Central Government, supposedly partnered by ridiculously weak 36 states, with a Federal Capital Territory, supported by obviously ineffective 774 local governments. All the other 801 governments combined in Nigeria are weaker than the Central Government”, said Nwabueze.. A Southsouth leader, Chief Fred Agbeyegbe, pointed out that military rulers have converted the country into another military command, adding that civilians are still battling with the centralised command structure. Even, where the states exercise legislative power, they have no enforcement machinery of their own, since the central police belongs to the federal government”, he added. Former Lagos State Governor Bola Tinubu shared this opinion. Making a case for state police, he said: “It is useless giving governors the appellation of Chief Security Officers of the states when they lack the powers to ask the police command to rise to the challenge of maintaining law and order”. The sweeping powers of the federal government have also been criticised by a legal luminary, Chief Kola Awodein (SAN). He said it tends to inspire a struggle for federal resources and power by competing political partiers and politicians locked in a titanic battle for control. The lawyer added: “A united central police organisation is still in place, making serious and effective policing difficult and almost impossible. The chain of control in the Nigeria Police Force today is too long and remote from the centre of operation, weakening discipline and resulting in an ineffective law enforcement process. “The force is still poorly supported, poorly trained and motivated. Centralisation and unification have

also resulted in significant delay in the administration of criminal justice. The Nigerian Police Force today is over-burdened as it is responsible for enforcing all federal, state and local government laws and regulations. This is in addition to its responsibility to investigate cases, prosecute offenders, control traffic and do other welfare activities. Little wonder that the Nigeria Police Force is more ineffective, insufficient and corrupt that it was more than 30 years ago”. The analysis of the distributions of powers between the centre and regions at independence and later, between the federal and state governments in post-1966 showed that federalism has derailed in Nigeria. Sekoni pointed out that in 1960, there were 45 items on the Exclusive List, while there were 29 on the Concurrent List. In 1979, federalism had already shown sign of strains. While the items on the Exclusive List had jumped from 45 to 66, those on the Concurrent List had only increased from 29to 30. Another review by Agbeyegbe showed a worse scenario. He observed that, in the 1999 Constitution, which came into effect following the promulgation of Decree No. 24 of 1999, Exclusive List’s items, which the federal government could legislate upon, had increased to 68. “That means that the subject matter which fell within the competence of the regions or states have been hijacked. Even, the 30-item Concurrent List in that constitution gives unqualified precedence to the centre over the federating units. We are now ‘federal’ only in name”, he pointed out. Last year, the National Assembly raised hope about constitution review, but after the exercise, it paled into another window dressing. Sekoni said: “The 1999 Constitution is still a fraudulent document”, hailing moves by the late Chief Bankole Oki (SAN) to take the federal government to court over the operation of the antifederal document. Remarkably, frontline legal luminary Chief Rotimi Williams (SAN) has observed that the constitution lied against itself, judging by its preface: “We the people”. His contention was that it was not an act of the people. But is hope lost for true federalism in Nigeria? Sagay said: “Any constitution review should make restoration of true federalism a cardinal objective”.He also called for a Sovereign National Conference to debate the contentious issues germane to true federalism. Sagay said:“This is the first step towards the institution of a process that would put in place a truly Peoples’ Constitution”.

Enugu 2012: Between old brigades and new commanders From Chris Oji, Enugu

HE two major determinants of the political equation in Enugu State this year will be the expected battle between the old brigade and the new “commanders” in the state as well as the campaign to propel the state governor, Sullivan Chime into reality regarding “human development.” The former will dwell mostly in the Nsukka senatorial zone which unarguably will produce the next occupant of Government House, Enugu in 2015. To even the most skeptical political pundits, it is now becoming clearer that an Nsukka man will likely occupy the Lion Building in the next dispensation. But the battle to produce the governor is likely to be between the Nwodo family and the emerging political structure from the area rallying around Senator Ayogu Eze. With what is on ground today, the latter is at advantage because the Nwodos actually shot themselves in the leg in the last attempt to upstage Chime and impose their own. That attempt is still in force as the case regarding the congress which returned the governor is still a matter of litigation. And once the case sways in favour of Chime, the Nwodos should not only forget governing Enugu State but should regard themselves as politically irrelevant for a long period. This is because this would be the second time their dynasty would be dealt a severe blow politically. The first was by former Governor Chimaroke Nnamani. The progress of the Nwodo dynasty was halted by the Ebeano political structure weaved by Nnamani. Up till today, the Nwodo family and the former governor have remained sworn enemies because of the former governor’s alleged masterminding of the removal of Dr. Okwesilieze Nwodo as the national secretary of the Peoples Democratic Party (PDP). After losing out as the national secretary of the PDP, Nwodo and his siblings were forced into political oblivion for almost eight years. And after Chime came on board as the governor, he took it upon himself to reconcile with and rehabilitate all those who were displaced politically by his predecessor, Nnamani. Therefore, he brought in the Nwodo brothers, Okwesilieze and John Nnia into the Enugu elders’ council, an advisory body aimed at directing the governor through the right paths. The development provided a balm that eventually paved the way for the emergence of Nwodo as the national chairman of the PDP. But the Nwodos saw that position of national chairmanship as a good opportunity for them to re-enact the family’s political dynasty which remained in the cooler throughout the greater part of Nnamani’s tenure as the governor of Enugu State; hence, the plan to remove the governor and assert their structure. But the plan backfired and its result turned the other way round. They are now hanging their hope on the case pending in the court, which they hopefully, dream to come out winners. Their onslaught on Chime and the subsequent litigations further put them into a tight corner because the governor has pitched his tent with the Ayogu Ezeled camp and vice versa. And it is likely that this camp will eventually produce the governor in 2015. Already, the political activities in the Nsukka senatorial zone are heating up with the emergent “patriots” of the zone enjoying the upper hand. Nobody hears much about the Nwodos except when the issue of the pending court case is mentioned. In the other area of human development, Chime seems not to be interested in such a thing. All the governor is interested in is the provision of much-needed infrastructure such as roads, water and education. But the agitators of human development are not specific on what they actually mean by that. Whether they mean opening the treasury for them to loot or not is not yet clear to those concerned. And the governor in his characteristic manner replied his critics in the area that there is no other human development known to him than in the area of provision of quality education which his administration is trying to achieve. Nonetheless, the agitators are saying that at least the governor should “produce” some millionaires during his tenure. They have always been quick to argue that Nnamani did it and that is why it is difficult to cow him up till now despite his many corruption cases that are lying before the courts. Whatever be the situation, Chime, as it seems, is not likely to yield to any pressure in this regard. As he is wont to say: “I am not Chimaroke. I am Sullivan. We are two different persons and two different characters.”

•Ekiti State Governor Kayode Fayemi addressing anti-fuel subsidy removal protesters in Ado-Ekiti at the weekend.

PLEDGE

WELL-BEING

Amosun promises to rebuild Ogun

Akwa Ibom partner UNICEF on health

Ogun

Awka agog as 13 get titles Anambra 38

Akwa Ibom 36

MONDAY JANUARY 9, 2012 HE Chairman of Ondo West Local Government Area of Ondo State, Hon. Bashiru Akinsade has distributed assorted equipment to his constituents aimed at empowering them. The materials were worth over N9million. The distributed items included 12 motorcycles, 12 deep freezers, 12 grinding machines, 12 sewing machines and N20,000 each for 300 persons. Speaking while presenting the materials to the beneficiar-

HONOUR

Page 27

Email: news_extra@yahoo.com

Council chief empowers constituents From Leke Akeredolu, Akure

ies, the chairman said the empowerment materials were to complement the state government efforts in tackling poverty in the state society. Akinsade noted that this was the second time his administration would be empowering the people since he took over the office within last three and a half

months. He said the gesture would go a long way in reducing idleness

and its concomitant anti-social activities. When the people are occupied with work, they will

The distributed items included 12 motorcycles, 12 deep freezers, 12 grinding machines, 12 sewing machines and N20,000 each for 300 persons

have little or no time to engage in criminality, he said. “In furtherance of Governor Olusegun Mimiko’s administration’s policy, the package is meant to encourage the sense of belonging and spirit of togetherness among the people in our community and this, I believe is in consonance with the caring heart and people-oriented vi•Continued on Page 29

TS vision was clear from inception: to bring hope to orphans and vulnerable children. Since 2008 when Hope Givers Initiative (HOG-I), came to life, it has given a good account of itself in that regard. It has solved problems peculiar to orphans and other needy children, intervening in such areas as HIV/ AIDS, girl-child education, child labour and trafficking. Executive Director of the Enugu State-based non-governmental organisation (NGO), Mrs Onyeka Udoegbunam, said it has made a huge impact in OVC-related matters in 11 communities across three senatorial zones of Anambra State. Those communities include Umunachi, Mgbuke, Nagbana and Nkwelle, among others. But HOG-I has neither been limited to Anambra State nor to issues of OVC. The organisation has also intervened in women’s health reproductive issues, as well as in challenges facing youths. Partnering with faithbased organisations (FBOs), the NGO has brought hope to people across the Southeast. Udoegbunam said it has intervened in OVC issues in Enugu West senatorial district which is made up of five local government areas. There, she said, 396 have received comprehensive care from HOG-I between 2010 and 2011. Recently, said Udoegbunam, the organisation brought succour to 39-year-old widow, Mrs Jacinta Anidobi, who gave birth to a boy with swollen testicles. The woman who had given birth to eight girls, found out that her ninth issue, a boy named Onyedikachukwu needed a N30,000 corrective surgery. The poor farmer needed help. HOG-I provided it, writing off the boy’s medical bill. Little Onyedikachukwu Adinobi has been successfully operated upon at the Enugu University Teaching Hospital. The organisation also helped a 24-year-old woman, Augustina Udeh, who suffers from convulsion. Newsextra equally discovered that the young mother has six children and four out of the number

•Udoegbunan with mothers and less privileged children

Hope for orphans, vulnerable kids NGO offsets newborn’s surgery bill Supports widows, youths From Nwanosike Onu, Awka

had been given out as house helps elsewhere. The visit of Hope Givers initiative to Mgbagbu Owa community alone revealed that there were 622 widows, 204 widowers and 200 or-

phans and vulnerable children. Speaking with Newsextra, the programme Manager of the group, Miss Anulika Mgbajiofor said the group has plans for about 130 children identified as vulnerable in the community. From what Newsextra gathered, these children will be given educa-

tional support by providing them with writing materials, school bags, school sandals, school levies, foods, cloths and psycho-socio support through capacity building counselling, establishment of recreational programmes and also provision of toys. “We are going to teach widows

also skills such as bead making, soap making and home management,” Mbajiofor said. HOG-I boss, Udoegbunam who wept while speaking with Newsextra, said the successful operation of little Onyedikachukwu has been a dream come through for her and the organisation. She said she was driven by the urge to help the less privileged. “It is a way of giving back to the society what God has blessed you with,” she said. •Continued on Page 28

THE NATION MONDAY, JANUARY 9, 2012

Hope for orphans, vulnerable kids •Continued from Page 27 Udoegbunam, a one-time zonal manager of Minaj Broadcast International (MBI), told Newsextra that the organisation had marshaled out so many programmes to lift the less privileged, but regretted that finance has been the handicap of the group. She therefore called on good spirited and privileged individuals in the society to use their wealth and position to help the less privileged. Furthermore, the Hope Givers Initiative stormed Amuri in Nkanu Local Government Area for what it called community outreach where a village known as Umuigbo was discovered and free eye treatment given to the aged men and women who almost lost their sights. The free medicare was done by the group in alliance with the Niger Optical Services (NOSCO) medical staff where over 260 persons were treated and free drugs distributed to them. The organisation also treated children to Christmas parties in Ezeagu Local Government Area where some educational materials were distributed to them including school bags, writing materials, and shoes, among others.

NON-GOVERNMENTAL Organisation (NGO), Oxfam has collaborated with some top Nigerian artists to end hunger which has ravaged 13 million East Africans, most of them women and children. The artists are Innocent Idibia also known as 2face, Lami Philips and Bez Idakula. Television presenter and the winner of 2010 Big Brother Africa (BBA), Uti Nwachukwu, also supported the campaign Africa Act for Africa, an initiative of the New Continental Coalition, to rid continent of hunger. According to Oxfam Campaign Manager, Jamillah Nwanjisi, millions of people in West Africa could be protected from serious food crisis if preparations are scaled up early enough. She said there were indications that food crisis is likely next year, identifying Mauritania, Niger, Burkina Faso, Mali and Chad as high risk countries. She said it was time to invest in preventative measures, urging governments across the regions, which have already recognised the seriousness of the coming crisis, to

•Children also received from Hope Givers Initiative

NGO, artists join forces against hunger By Wale Adepoju

scale up efforts to make sure people have money to buy food, receive animal feed for their livestock and emergency food stocked and ready to be distributed. Nwanjisi said: “The situation is looking extremely worrying for millions of people in West Africa, but the worst is yet to come if nothing is done to prevent it. The crisis has been identified early, and we know that there are cost-effective measures that can be taken now to protect those most vulnerable. This time we can act before the emergency hits.” She identified low rainfall and water levels, poor harvests and lack of pasture, high food prices and a drop in remittances from migrants as warning signals. Nwanjisi said cereal production has gone down compared to the five-year average, with Mauritania and Chad showing deficits of over 50 per cent compared to last year.

National food reserves are dangerously low, while prices of some key cereals are up to 40 per cent higher than the five-year average, she added. She said six million people in Niger and 2.9 million people in Mali live in areas vulnerable to the crisis, adding that 700,000 people in Mauritania are at risk of severe food insecurity. Over two million people are at risk of being directly affected in Burkina Faso while 13 out of 22 regions in Chad, could be affected by food insecurity. She said the Sahel region of West Africa experienced a major food crisis in 2010, which affected 10 million people. The people, she said, were still recovering from last year’s crisis, adding that another of such crises would cause hike in food prices, poor harvests or the death of their animals. Nwanjisi said the Ofam had similar programme in Nairobi, Kenya, saying: “The campaign was all

about twitting on the mobile social network. We want this to be the last time there would be hunger in Africa. Former Zambian President, Mr Paul Kagame has already showed commitment to the course.” Oxfam’s Assistant Country Director, Tunde Ojei said hunger has ravaged East Africa with 13 million people affected, adding the majority were children and women. He said people were aware but did nothing preparedness to prevent it, saying we need to take measure to prevent future recurrence. “The African January resolved that leader should make it top agenda so that food shortage can be a thing of the past. Ojei urged Nigerians to prepare for it so that they would not be affected by it. Responding to the partnership, to 2face, said it was a welcomed development, stressing that food shortage is a crime against humanity. “It is shameful and sad the people do not have food to eat. The decision makers should find a lasting solution to hunger in the con-

tinent, particularly in the Economic Community of West Africa State (ECOWAS) sub-region,” he added. He said hunger was something that directly or indirectly affects everybody, saying everybody should spread the word to prevent recurrence. Also, Mrs Phillips identified food, water and electricity as the basic necessity of life that should not be taken granted in Nigeria. She blamed the leaders for not taken a position to proffer solution to the lingering food crises in the continent. “We would try to get the government to something to ensure that this hunger crisis is the last one,” she said. Miss Phillips appealed to policy makers to let the hunger be the last in the continent. “Everybody in Nigeria has a sit and watch attitude which doesn’t make things work. The United States and other developed countries were able to provide for their citizens because they have more than enough to give,” she added. She urged the private sector to come and invest in agriculture.

It is shameful and sad the people do not have food to eat. The decision makers should find a lasting solution to hunger in the continent, particularly in ECOWAS

•Secretary to the Lagos State Government (SSG), Mrs Oluranti Adebule presenting a birthday card to former Minister External Affairs, Prof. Bolaji Akinyemi. With them is the Director General Nigeria Institute of International Affairs (NIIA), Prof. Abimbola Akinterinwa

THE NATION

MONDAY, JANUARY 9, 2012

Don backs fuel subsidy removal By Amidu Arije

•Chief Temionu

HE Provost of School of Information and Communication Technology (ICT), Kwara State University, Prof Innocent Okoye has thrown his weight

behind the removal of fuel subsidy by the federal government. The Professor spoke at a symposium and end of year party organised by Chief Tunde Temionu, in Lagos. Okoye stated that the idea behind fuel subsidy removal, if well utilised, is to pave way for economic development. “I have considered everything about it and I have taken my decision. I stand to be corrected that at this stage in the development of this country we need to reexamine the issue of fuel subsidy as to whether there is subsidy indeed. I believe strongly that there is subsidy and government has gone to explain it,” he said. “Fuel subsidy removal is part of the deregulation of the downstream sector of the petroleum industry; deregulation is the removal of monopoly, deregulation

is the removal of subsidy, deregulation is liberalisation of the sector to allow anyone that is willing to invest in that sector.” Prof Okoye noted that the removal of the fuel subsidy would prevent corruption and smuggling in the country. “Smuggling and corruption are the biggest headaches in the country but will be brought down if fuel is deregulated,” he said. The university don stated that

subsidy would give room for job creation and economic development. “Anything about deregulation has been opportunity for investment, inclusion of the generality of the citizenry to participate in the sector; it has translated to improved services, to widespread availability of those services, it has increased the creation of jobs,” he said. The chief host, Chief Temionu

Smuggling and corruption are the biggest headache in the country but will be brought down if fuel is deregulated

Six-year-old wins Quran contest

SIX-YEAR-OLD, Umar Abdul Rasaq, has won the just concluded annual Quran competition organised by the Mujaahidun Club in Lagos. The competition was keenly contested among many students, many much older that the winner. Luck was on Abdul Rasaq’s side, and he won in the junior category of the competition. Abdul Rasaq is a pupil of the Islamic Arabic School, Modirasatu Ihyaail Athar Matogun in Ogun State. He came first after reading the whole of the selected portions of the Quran during the competition. According to the President of the Mujahidun Club, Alhaji Abdul Rasak Idris, the competition is the third of its kind and meant to encourage Quran reading among

By Hameed Yekini

youths from a very tender age. “This is the only way everybody can improve on their skills and the knowledge of Quran. Our observation was that many Muslim youths do not have full knowledge of Quran because they don’t read it everyday but with this kind of competition I think the youth will be serious because of the pride they will take home to their parents,” he said. He said the number of participants on the programme since inception three years ago has been rising as the awareness of the importance of the Quran is beginning to gain ground in the state. The competition left Muadh Abdul’ Hakeem in the second position on the junior category, while

Muhammed Abdul Hakeem came third in the same category. The first was presented with a television set in addition to an unspecified amount of money to support his education. The second and third place winners were given standing fans with other prizes for their efforts in the competition. Abdul Rasaq was full of surprises seeing himself in the first position, but he resolved that he would never give up reading the Quran and participating in the competition. In the senior category, Obaditan Samad won the first prize while Ahmad Zakariyyah came second. Both are from the same Islamic Arabic School, Modirasatu T’aliimul Qur’an wal Islamiyyah, Agege, Lagos.

Okorocha preaches peace

•Okorocha

MO State Governor Rochas Okorocha has urged the people of the state to make peace and reconcile with one another. Governor Okorocha declared 2012 a year of praise and progress for the state during a thanksgiving church service and reception at Holy Trinity Catholic Church, Ogboko in Ideato South LGA of the state. He noted that great development and attitudinal change have taken place in the state, which call for giving praises to God. He noted that peace and forgiveness are vital in every society and that people should start the New Year on a good note. Okorocha said that his emergence as governor of the state was divinely arranged, and reiterated his commitment to serve Imo people sincerely. He pledged to give account to Almighty God. The governor enjoined his kinsmen in Ideato to make judicious use of the opportunity they have and advised those who indulge in kidnapping and robbery as a means of livelihood to turn a new

•Some of the sewing machines distributed

Council chief empowers constituents •Continued from Page 27

sion of Mimiko “We gratefully recognise the seemingly endless list of the Ondo State sponsored develop-

mental projects in our local government”. Akinsade commended the Mimiko administration for contributing to the rapid development of the community, saying that the governor’s policy would

give him the opportunity to win a second term. He however urged the beneficiaries of his charity to make judicious use of the empowerment package in order to encourage the government to do more.

thanked the discussants and other guests who had come to grace the occasion. He submitted that if removal of fuel subsidy would pave way for economic development so be it. The occasion was chaired by the chairman Nigeria Reinsurance Company, Dr Amos Akingba who also concurred with the move by the government to remove fuel subsidy. Other discussants on the occasion included the duo of a senior Lecturer from the Department of English University of Lagos (UNILAG), Dr Yemi Daramola and Dr Bunmi Ajibade of the same institution from the department of Mass Communication. Both spoke on same sex marriage in Nigeria; the moral and social political implications. They unanimously said the idea of same sex marriage is unreligious and un-Nigeria and that the system should not be encouraged in the country.

leaf. He said his administration has concluded arrangement to make crime and criminality a thing of the past. In his sermon, the Bishop of Orlu Catholic Diocese, Bishop Augustine Ukwuoma advised Christians to imbibe the spirit of thanksgiving to appreciate God’s goodness in their lives. Bishop Ukwuoma commended Governor Okorocha for his developmental achievements in the state, saying that within six months in office his honest leadership style has restored people’s trust and confidence in government in the state. He enjoined members of the Executive Council and others who are working with the governor to support him in all honesty and not to sabotage his efforts or advise him wrongly. In his remarks, the Chairman of the occasion, Mr. Maxwell Ogo recalled that zoning on governorship and second term tenure system in the state were broken to rescue the state from decline. He urged Ideato people not to complain of marginalisation but support Okorocha who is one of them. The National Chairman of All People’s Grand Alliance (APGA), Chief Victor Umeh described the party as Igbo people’s party, where the voices of the people have always being endorsed by God. Governor Peter Obi of Anambra state thanked Ideato people for organising a grand reception for Okorocha, a development he said is a mark of recognition and respect. Obi enjoined them to support the governor with prayers and good advice.

THE NATION MONDAY, JANUARY 9, 2012

Ogun

OGUN STATE GOVERNOR, Ibikunle Amosun has assured those indigenous to the state that his policies and programmes would be geared towards rebuilding the state. Amosun gave the assurance in a statement issued by his Senior Special Assistant on Media and Communication, Mrs Funmi Wakama in Abeokuta. The governor, according to the statement, promised to redesign the state’s landscape in line with the Master Plan he had evolved. “We would do everything to put smiles on the faces of Ogun people and residents through our policies and programmes,” the statement quoted the governor as saying. The governor further said that efforts were

•Amosun

‘Women empowerment central to development’

Amosun promises to rebuild Ogun

on to implement the five cardinal programmes of his administration. He also reiterated the determination of his administration to provide quality education for youths, adding that about N40b would be spent on the construction of 50 new model schools. Amosun further said that the inventory of houses being embarked upon by government was to ascertain the number needed for landscaping under its future expansion initiative.

Council chief canvasses self-employment

HE Chairman of Ijero Local Government Area of Ekiti State, Mr Jonathan Atibioke, has urged Nigerian youths to be independent through being selfemployed. Atibioke, who gave the charge in Ado-Ekiti, said the call became necessary in view of lack of opportunities for white collar jobs in the country.

Ekiti He said creating job opportunities without seeking paid employment would unleash the creative potential of Nigerian youths. The council chief said the country was blessed with immense natural and human resources which could be harnessed for growth and

development. Atibioke said his concern for youths in the new year was borne out of an interest in their welfare. He disclosed that he had assisted many indigent students through payment of their bursary allowances while several artisans had also been empowered.

Council chair, staff mark end of year

T was with pomp and ceremony that the chairman of Ikosi Isheri Local Council Development Area, Hon. Abdul Fattahi Oyesanya hosted staff of the council to mark the end of the year. The party, which was organised by the Nigeria Union of Local Government Employees (NULGE) of the council, provided platform to chart the council’s development. The NULGE chairman Comrade Bankole Oduguwa urged the council chairman, to provide the council with functional staff bus, continuous and improved financial assistance to members of staff, provision of NULGE bus, coffice complex conducive to optimal performance and provision of equipped staff clinic, among others. Oduguwa who expressed his gratitude to the

By Amidu Arije

council chairman said that within two months of inception, he has been able to impact positively on the lives of the people of the council. He urged him not to relent in his efforts towards moving the council forward. Oduguwa assured the chairman of his support to achieve his set goals for the council. The Council Manager, Mr Akanji Shadare observed that during the last quarter of the year, things were not rosy but that hope and aspirations were restored as the present administration assumed office. “I wish to state that things were not at all rosy for the management and staff generally within the first quarter of the year owing to dwindling financial fortunes of the council.

However, it would be pertinent to mention that during the short period of the present administration, hopes and aspirations have risen in terms of provision of welfare packages for the staff and management. Mention must also be made of the release of Sallah bonus and welfare package for the staff and management,” he said. Mr Shadare also called on the chairman to do more for the staff and management by ensuring an environment that is conducive to better performance. In his remark, Hon. Oyesanya said: “I want to assure you that all these requests shall be implemented in phases.”

•The Deputy Commissioner of Police in charge of operations, Mr. Tunde Sobulo (middle), speaking with State House correspondents at the Lagos House, Ikeja, Lagos, after the State Security Meeting. With him are: Commander 9 Brigade Ikeja, Brigadier General Sanusi Nasiru Muazu (right) and Executive office, NNS Beecroft, Navy Captain BJ Ghassa (left)

IVIl servants in Oyo State have praised Governor Abiola Ajimobi over the payment of bonus salary to the entire workforce in 2011. The workers’ expressed their appreciation in a letter written to the governor by the state Head of Service, Alhaji Tajudeen Aremu dated December 28, 2011. The letter, entitled “Appreciation for the Approval of the payment of 13th month salary bonus to the entire workforce in the civil, local government and teaching services for the year 2011,’’ praised the governor for his spirit of benevolence and generosity in approving the payment of the bonus salary. “I, on behalf of the entire workforce in the civil, local government and teaching services of Oyo State, wish to use this medium to express our sincere

Oyo and profound gratitude to Your Excellency for the spirit of magnanimity and generosity displayed by the state government in approving the payment of 13th month salary bonus to the entire workforce in the aforementioned services for the year 2011,’’ Aremu said. The Head of Service described the state government’s gesture as “unequalled, unparalleled and unprecedented’’ in the anals of public service administration in the state. Governor Ajimobi had, during a parley with the civil servants on December 12, 2011, announced that the payment of 100 per cent of their basic salary would be paid to them as bonus. Recall that the last time the civil service in the state was paid a 13th month salary as the Ajimobi

By Tajudeen Adebanjo

• Hon. Olaleye presenting cheque to Mrs Adeola

government did was during the administration of former Governor Rashidi Ladoja who paid 50 per cent of the basic salary of the workers. According to him, the payment of the bonus is an enduring milestone which has substantially put smiles on the faces of the civil servants and their immediate and extended family members. He prayed God to continue to grant the governor the wisdom, good health and political wherewithal required to steer the ship of the state to the promised land. Aremu assured that workers in the state would, more than ever before, be resolutely committed to diligence, dutifulness and greater productivity in the discharge of their responsibilities, with the overall objective of complementing the governor’s giant strides in transforming the state.

Invest in agriculture plea

Osun The council chief promised to partner with corporate bodies that are ready to help in eradicating poverty in the area. He called for more firms to partner with the local government to help in improving the development level of the council. “I therefore make a clarion call to private companies to invest in the council as part of their civic social responsibilities,”he said. Olaleye lamented the lopsidedness of federal allocation, stating that it does not aid even development. Local government, being the closest to the people, he said, should be properly funded in order to cater for the yearnings of the electorate. “We intend to embark on some developmental projects but paucity of fund to implement them is a major constraint. People always run to the council for assistance more than they frequent state and Federal Government for assistance,” he said.

IFE of Ekiti State Governor and initiator of Ekiti Development Foundation (EDF), Erelu Bisi Fayemi has said that empowering women is key to socio-economic development of the country. She maintained that it is impossible to think or talk about development of any society without full involvement of women. “Women constitute 50 per cent of the population and have been disovered to be better managers of resources,” she said. Mrs Fayemi spoke at the kick-off of an eight-day tour of the 16 local government areas in Oye Local Government Area where she addressed women on various efforts of the Ekiti Development Foundation (EDF). She stressed that “when you educate and empower women to assume leadership positions at all levels, the developmental challenges confronting the country can be addressed.” She further disclosed that the tour would, among other achievements, give EDF the opportunities to appraise the

•The Prelate Methodist Church Nigeria, Dr Sunday Ola Makinde flanked by the former CEO, Conoil Nigeria Plc, Bro Engr Sina Tycitus andhis wife, Princess Adetope Tychus at the funeral reception of the latter’s mother at City Hall, Lagos

‘We ‘ll support progressive govt’

HE National Union of Local Government Employees (NULGE) Amuwo Odofin chapter has thrown its weight behind the present administration in the local government led by Comrade Ayodele Adewale. In a recent statement to journalists, the newly elected chairman of the union, Comrade Lawal Temitope, said they were resolute about their stand on working as development partners with the present administration in Amuwo Odofin. He said: “Our branch union is ready to support the administration in Amuwo Odofin Local Government led by Comrade Ayodele Adewale, so long as it remains progressive. By all standards, the government in Amuwo has not fell short of this quality.” He further commented on the developmental strides of the local government, which he described as “ giant, progressive, meaningful, and peopledriven.” He said only the anti-progressive will put a clog in the wheel of progress of any government. “For us here, we are

Ekiti From Sulaiman Salawudeen, Ado-Ekiti

situation of women across the localities and to take stock of their needs for which provisions would be made once resources are available. She said the tour will equally enable her office to explain better the task of EDF which was launched in June 2011, even as she added that prior to the launch, her office has been involved in providing relief both in cash and in kind to the needy, especially women and children. “I’m pleased to inform you that the foundation has, so far, disbursed over N12m to associations, groups, and individuals across Ekiti State. “EDF, in conjunction with Globacom Nigeria Limited, will also empower 200 women, including select multiple birth families across

• Mrs Fayemi the 16 local government areas, during the tour,” she said.

Workers laud Ajimobi over 13th month salary

Council lifts widows with N1m S Nigerians groan under the pains of fuel subsidy removal, the chairman of Isolo Local Council Development Area, Hon Shamsudeen Olaleye has renewed hope of 100 widows and senior citizens in the local government through his poverty alleviation scheme. Hon. Olaleye gave out the sum of N1m to the beneficiaries at the council’s secretariat, Isolo last Thursday. The beneficiaries are 60 years and above. The council chief said: “Our decision to assist people of that age bracket stems from the fact that they can do minimal running around to fend for themselves. This exercise is a genuine and well thought-out form of assistance to people who truly deserve assistance. He urged womenfolk to be politically and economically active to help build the country and promote women’s roles in the society. “We are challenging our womenfolk to always engage in an economic activity, no matter how little so that when the problems associated with widowhood rears their head, they won’t be left totally devastated and helpless,” he said.

progressives hence, are ready to support our local government to succeed. You only need to come to Amuwo Odofin and witness the massive social transformation taking place to appreciate our stand. From health to education, roads to staff welfare, agriculture to infrastructures, environment to economic empowerment, this administration has just been exemplary.” On the programmes of NULGE under his leadership, Comrade Lawal stressed that his tenure will usher in lots of innovation and novel ideas. He said: “It is our resolve that our tenure will take a radical departure from the past. We intend to usher in fresh concepts to better the lots of our members. “The union’s priority is to protect the interest of its members. To this end, we wil deploy our energy on activities that will bring the maximum benefits to •Comrade Lawal our members.”

N aspirant for Ijebu-Ode Local Government Area chairmanship, Mr Abdur Rafi’l Baruwa has challenged the 774 local governments in the country to make agriculture attractive for the unemployed graduates. This, he said, will reduce the high number of unemployed graduates being produced annually from the higher institutions. Baruwa, a lawyer, made the plea during his campaign in Ijebu-Ode, Ogun State. According to him, tackling graduates’ unemployment through agricultural revolution should be one of the major priorities of grassroots government, even as he promised to do same if elected into office. The aspirant explained that there would be free-interest loan for the youth and smallscale farmers so as to reduce unemployment as well as increase food production. Baruwa said if elected, his administration would resuscitate farm settlement across the local government as well as introduction of cash crop production towards agricultural development.

Ogun The aspirant, who took his campaign to all the streets in Ijebu-Ode Township also promised to improve the quality of public primary and secondary schools through frequent training of teachers as well as provision of learning materials for the pupils and students respectively. He said if elected, Boys Scout would be resuscitated in schools to inculcate civil responsibility in students. Baruwa, who also promised to establish a non-interest co-operative society for market women, said there would be adequate provision for the orphans, aged and the widows. “I want to assure the electorate that I will not disappoint them on all my promises if I am elected during the forthcoming local government election. “Ijebu-Ode will definitely witness a fundamental transformation under my administration. But all the same, I need your votes“, he said.

Monarch hails Pilgrims Board secretary

BA Babatunde Ogunlaja, the Aladeshonyin of Odonoforija Kingdom, Epe Division has praised the executive secretary, Lagos State Pilgrims Welfare Board, Mrs Funke Adepoju for her commitment to duty. Oba Ogunlaja praised Mrs Adepoju in his palace over the weekend. He said despite some slight hitches; Mrs Adepoju deserves kudos. “She did a yeoman’s job. Right from Lagos to Jerusalem, she was always making sure that all was well. There was no breathing space for her 24 hours a day,” Oba Ogunlaja said. The monarch also gave kudos to the Permanent Secretaries on the delegation who included Mrs Adedoyin Olusoga of Culture and Home Affairs, Seyi Williams of Finance and Regina Iyabo Obasa of Local Government and Establishment. Last year, Mrs Adepoju was commended by Governor Babatunde Fashola over the success of the 2009 Christian Pilgrimage to Jerusalem. In a September 30 letter, Fashola said Mrs

Adepoju deserved the commendation for her sense of responsibility. The letter reads: “I sincerely wish to register my profound appreciation for the success of the year 2009 Christian Pilgrimage to Jerusalem which earned the state the best supporting state in the area of self-sponsored pilgrims. “I am particularly impressed by your display of pro-activeness, loyalty, high sense of responsibility and team spirit which are synonymous with our state of excellence. “I am therefore highly delighted that your contribution to the growth and development of the public service in general and Lagos State in particular at this point of your career is well noted. “Whilst wishing you more and rewarding career in the state public service, please accept the assurance of my best regards.”

•From left: Sir Olusegun George with the CEO, Unity Hospitals Group Ltd Lagos, Dr Charles Beinde Williams and Arc Akin Williams at the 2011 Adult Harvest, Wesley Cathedral Olowogbowo, Lagos

Methodist Church fights malaria

S part of efforts towards reducing the rising spate of malaria in rural communities, The Methodist Church of Nigeria, in collaboration with Malaria Society of Nigeria, has kick-started her year-long National Medical Evangelism Programme at Wesley House, Marina Lagos. The programme, which was flagged off by the Prelate of The Methodist Church of Nigeria, Dr. Ola Makinde, and has representatives of the medical board of the church and President of the Malaria Society of Nigeria, Dr. Puddicombe Babajide John in participation, will be held in Lagos, Ogun, Imo, Cross River states and other parts of Nigeria. Speaking at the event, Makinde said that the awareness programme was aimed at educating members of the church and the public on common health problems while not undermining our task of spiritual renewal of the world. He said tackling the scourge of diabetes, hypertension and malaria in rural communities cannot be left in the hands of government, even as he urged all stakeholders, including the church in every community to join hands in tackling

Lagos By Adeola Ogunlade

the diseaes head on. He noted that deaths resulting from these disease are avoidable, as they can be prevented by some simple lifestyle measures which explains why we are taking our awareness campaign to some remote areas of this country. “Methodist is leading in rural health as we have clinics in rural areas; from Badagry Kaduna, Kanuri, Otikpo, and other rural areas where healthcare facilities are not easily accessible to the the people,” he said. He added that the project is carried out with funds from the Federal Government, World Bank and Global Health Fund as it is believed will be done effectively and in a transparent manner. The President, Malaria Society of Nigeria, Dr. Puddicombe John highlighted activities such as rallies, health talk, free distribution of mosquito nets and free medical tests for people.

• From left: Conference Health Secretary, Deaconess Ronke Oworu, Bishop of Ikorodu Diocese, Olumuyiwa Odejayi, Dr. Makinde; Bishop of Evangelism, Methodist Church Nigeria, Sunday Onuoha, Dr. Puddicombe and the Medical Adviser of the Church at the flag-off ceremony at Hoarse Memorial Church, Sabo Yaba Lagos.

THE NATION MONDAY, JANUARY 9, 2012

CITYBEA EATS TS THE NATION

E-mail:- ynotcitybeats@gmail.com

Protest rocks Lagos over subsidy removal By Dupe Olaoye-Osinkolu

ITHOUT waiting for Labour, Lagos reacted swiftly to the removal of fuel subsidy. Barely 24 hours after the Federal Government introduced the policy, Lagosians trooped out in protest under the aegis of the Joint Action Front (JAF) led by former Academic Staff Union of Universities (ASUU) President, Dr Dipo Fashina. They went round the metropolis denouncing the policy. The subsidy withdrawal was announced by the Petroleum Products Pricing Regulatory Agency (PPPRA). Under the new price regime, petrol is expected to sell between N138 and N141. Only the Nigerian National Petroleum Corporation (NNPC) megastations are selling at N138. At other outlets, the price ranges between N141 and N250. The subsidy removal did not go down well with the masses, prompting spontaneous action rather than waiting for directives from the Nigeria Labour Congress (NLC) as they had done in the past. The protesters’ message was clear: "On N65 per litre of petrol we stand." The protesters displayed their grouse on placards. They went round filling stations, disrupting businesses and sending fuel attendants home. They shouted in ecstasy as Ganiyat, widow of the late Lagos lawyer, Chief Gani Fawehinmi, cheered. "Greatest Nigerian people! Articulate Nigerian workers! Hardworking Nigerian masses!" she greeted them on taking the microphone. And the people chorused, "Heee." She invoked her husband’s spirit as she made her remarks. Mrs Fawehinmi sought to know how government arrived at the new price. She called for the return of oil money looted in the past. She noted that government which was reluctant in implemeting the N18,000 minimum wage, (which she described as slave wage), should not increase petrol price to further impoverish Nigerians. Human Rights lawyer Femi Falana was in his element at the rally. An indefinite nationwide Activists strike begins today, at the instance of NLC and the took over Trade Union Congress the streets (TUC). NLC and TUC are the government to in anger asking revert to the old price N65

•SEE PAGE 32

Group condemns subsidy removal A COMMUNITY-based organisation, Imegbon Youth League (IYL), has described as deceptive and heartless the removal of the fuel subsidy. A statement by IYL Chairman, Adekunle Agbabiaka, said the policy is against the objectives of the developmental programmes, such as the Millennium Development Goals (MDGs), which seek to reduce poverty by 2015. Agbabiaka urged President Goodluck Jonathan to rescind the economic hardship foisted on the people by the new price.

•Ajegunle residents at the rally

•A filling station shut by protesters

PHOTOS: DUPE OLAOYE-OSINKOLU

Residents plead for council’s aid

Badejo seeks unity among Nigerians

RESIDENTS of Igbehin Adun, Ilasamaja, in Mushin Local Government Area of Lagos State, have urged the council Chairman, Olatunde Adepitan, to tar some of their roads. Some of the areas they want him to look into include Oremeji, Ogunbowale, Waidi Apesin, Olusanya, Olaide Awoye and Oyinkan streets. The areas, they said, have not received attention since the advent of Adepitan's administration in 2008. "Now that we have a councillor living on one of the streets, Adepitan should shift attention to the areas so that we can be recompensed for coming out to vote for his party," the residents said.

Reverend Wilson Badejo, the immediate past general overseer of the Four Square Gospel Church has urged Nigerians to make unity their watchword. He made the suggestion while delivering a paper at the second anniversary and merit award organised by theChristian Association of Nigeria (CAN) at the Chapel of Christ the Light, Alausa, Ikeja, Lagos. Badejo said the unity of Christians should be paramount to everybody irrespective of race, creed or gender, adding that should be replicated in churches, homes and the society. The cleric maintained that if there is unity among Christians, there would not be rebellion, coup de tat won’t have anything to do within our community, bombing would be alien, kidnapping would be a thing of the past and all other ungodly things would have no place among us.

THE NATION MONDAY, JANUARY 9, 2012

CITYBEATS

• Seun Anikulapo Kuti addressing the crowd at NLC, Yaba, in front of him is Dr Fashina PHOTOS: DUPE OLAOYE-OSINKOLU

•Placard bearing protesters

Protest rocks Lagos over subsidy removal

•Continued from page 31 per litre of petrol. The protesters seemed to have taken a cue from NLC's Head of Research and Chief Economist, Dr Ozo-Ezon, who said at a stakeholders' meeting that "the removal of subsidy should not be seen as a labour issue but a national issue that will affect all Nigerians." The people came out en masse to reject the government's action. They joined hands with JAF led by Fashina and Comrade Abiodun Aremu to prosecute the protest. The real battle begins nationwide today, with NLC championing the campaign. Rejecting subsidy removal, NLC said the policy like past deregulation of the downstream sector, will worsen the plight of Nigerians. It argued that the implementation

would not be different from similar policy in the past, stressing that the consequences Nigerians will face from the removal of subsidy outweigh the benefits of the exercise. Ozo-Ezon said the removal will

‘

adversely affect small scale industries, which accounts for over 70 per cent of businesses in the country, adding that the policy will create social chaos. According to him, since AGO, popularly called diesel was

NLC in its presentation said it was outrightly rejecting the policy on the ground that past deregulation exercise had worsened the plight of Nigerians... They are asking Government to revert to N65 per litre of petrol

Cleric urges peaceful co-existence

’

deregulated, the impact of the policy has been the closure of factories and job losses. This, he said is so because deregulation drove up the price of diesel to the disadvantage of many companies. After removing the subsidy, the government said it has not violated any law because there is no provision for it in the 2012 budget. Labour Minister Emeka Wogu said: "If at this point fuel subsidy is removed, no law is being violated because there is no provision for subsidy in the 2012 budget." He advised labour leaders to embrace dialogue. "Labour should avail themselves to discuss with government on the areas of fine-tuning the benefits

RELIGIOUS leader and former Chairman of Mushin Local Government Area, Supt. Apostle Babatunde Odele, has appealed to Christians and Muslims to work together to save the country. Speaking shortly after a special prayer for peace in the country, organised by the Sacred Cherubim and Seraphim Church, Salem Evangelical Model Parish, Ilupeju, Apostle Odele, who is the Minister-in-Charge, said all those interested in the unity must eschew violence. He said: "We must avoid religious war at all cost. Religious war will affect our collective heritage and hurt our economy. That is why I am appealing to all Christians and Muslims to join hands to condemn the criminality going on in some parts of the northern states and ensure that such does not spread to other parts of the country.” Odele said he would continue to preach among co-existence and amond all ethnic groups in the state. He praised the former Governor,

1. Fire and Safety Services Control Room Phone Nos: 01-7944929; 080-33235892; 080-33235890; 08023321770; 080-56374036.

•From left: Rev. K. A. Ijaola, Gen. Rev. Mrs A. Awe, Special Apostle N.O. Sipebi, Supt. Apostle Odele, Rev. Ap. Mother A.O. Ghanni and Special Apostle E.A. Ogunbona PHOTO: MURITALA OMIKUNLE By Muritala Omikunle

Bola Ahmed Tinubu, and his successor, Mr Babatunde Raji Fashola, who have been pursuing peaceful co-existence of all inhabitants. Odele said Lagos as the nation's commercial nerve centre, where everyone could come and make their fortune, every Nigerian must make conscious effort to

make the state peaceful. He advised all those fanning the embers of war to have a rethink, and called on those who have continued to shed human blood with reckless abandon across the country to fear God and embrace peace. "I appeal to all who continued to make shedding of blood their business to remember that they would account for all their actions

before the almighty. In the name that all of us irrespective of our religious differences call upon, let us all sheathe the sword and allow peace to reign in the nation," Odele further appealed. Odele, the Garukwan Hausawa of Lagos State, said the North still have a lot to do with the south and the nations’s cultural and religious diversity should be its source of

EMERGENCY LINES 2. Federal Road Safety Corps (FRSC) Lagos Zonal Command Phone No: 080-77690200; 01-7742771 Sector Commander Phone No: 080-776909201; 01-2881304 FRSC Emergency No: 070-022553772

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that will accrue to Nigerian workers among which are; affordable transportation system, job creation, to mention but a few. "I appeal to organised labour unions not to overheat the system as this programme is designed to improve the lot of Nigerians; it might be painful initially but at the shortest possible time people will begin to reap the benefit." TUC General Secretary, Comrade John Kolawole said deregulation of diesel claimed thousands of jobs as manufacturers closed their factories because of high cost of production. Some companies, including Dunlop Nigeria Limited and Michelin Tyres, relocated to Ghana and South Africa.

strength and national pride. He recalled that the church began the annual prayer session for peace in Lagos and the country three years ago with the support of the Oba of Lagos, Riliwanu Akiolu. Odele urged any aggrieved member of the society to find another way of resolving his grievances instead of using violence. He said: "If there is peace in the state, things will work out well for the people. This is why I am inspired to keep on with the programme. I will always, within my spiritual and physical capacity ensure that peace reign in the state and the country." He recalled his days as the chairman of the Mushin Local Government Area of the state, saying he used the period to fight for peace. "When I was the chairman of the Mushin local government in 1993, I used the period to fight for peace. The period was coincidental with June 12, 1993 crisis when things were very tough. Mushin Local Government was the only one that was not touched. As the result of this, I was honoured with the title of Garkuwan, which means Peace Maker in Hausa language. I made sure lives and property were safe irrespective of ethnic or religious affiliation. I did this because I believe we are one," he said.

6. Health Services – LASAMBUS Ambulance Services Phone Nos: 01-4979844; 01-4979866; 01-4979899; 01-4979888; 01-2637853-4; 080-33057916; 080-33051918-9; 080-29000003-5.

THE NATION MONDAY, JANUARY 9, 2012

CITYBEATS FROM THE GRASSROOTS

RCCG wins Believers' soccer league

HE Redeemed Christian Church of God (RCCG) has emerged winner of the Believers Champions League. They beat two-time winner, Mountain of Fire and Miracles (MFM). Its players displayed talent and the audience cheered with trumpets and drums. The match, which ended goalless at regulation time, was decided by penalty. The match was well attended by clerics and football supporters. The players’ dexterity delighted supporters who kept cheering them on. The special guest and Commissioner for Budget and

By Nneka Nwaneri

Panning, Lagos State, Ben Akabueze, who encouraged fair play, expressed optimism that his team will win fair and square. "This is an extension of the fellowship we experience in the church. This should set a tone for Nigerian football, telling them what it should be like playing in a team. It is a game played in the name of the Lord, so there is no loser among us. There is no rancour. We are all one. It is all to foster good relationship and promote church unification."

He said the aim of the match is to "bring the youth together so that they can accept God as their saviour." The organisation was superb and the players were well co-ordinated. Pastor Ituah Ighodalo, who said he has been connected with the league in the last four to five years, praised the organisers for the improved standard witnessed at this year's event. "MFM has always invested in their players. The history of great clubs such as Manchester United started as churches and grew as sponsorship and professionalism set in," he said.

•Hon Taiwo with some of the tie and dye graduates

Deputy Speaker empowers constituents

O fewer than 318 residents of AjeromiIfelodun 1 Constituency have acquired various skills. They went through four months of training organised by their representative at the Lagos State House of Assembly, Kolawole Taiwo. The programme, which is under the auspices of HKT Entrepreneur Empowerment Training Programme, is an annual one where beneficiaries are armed with adequate training in computer education, adult literacy and various skills, such as soap making, cream making, tie and dye and cooking stove thread making. It was held at Hope Bay Children School. Ten computers were given out through balloting to computer graduLook ates. beyond According to Taiwo, white the entre- collar jobs preneur em-

By Oziegbe Okoeki

powerment scheme is a foundation he established to train interested candidates in computer, adult literacy education and various skills. "The main thrust of the scheme is to de-emphasise white collar jobs and encourage skills acquisition, with a view of engendering self employment", he said. Taiwo, who is the Deputy Speaker of the House of Assembly, said he started the programme some years back because of the consciousness that he was representing the poor masses. “When you represent poor people, one thing that should cross your mind is how to make them self reliant. “We buy for them equipment needed to take off, as well as the materials they could start with and this has worked tremendously,"

Taiwo said. "I have been calling on graduates to come and pick a trade, but, they are not coming forward, they are shying away from it," he said. Describing the programme as laudable, a member of the House of Representatives representing Ajeromi-Ifelodun Federal Constituency, said it is a way of showing appreciation to the constituents "who stand by us through thick and thin. So, whatever little appreciation we can show can never be too much, our people deserve nothing but the best," he said. Thanking Taiwo on behalf of others, 57-year-old Mrs. Dunni Ajiboye, one of the adult literacy education graduates, said she stopped her education in primary five but through Taiwo's programme she can now read and write.

Youths advised on morals

HE decline in moral values has been identified as a major cause of unrest in the society. An Islamic scholar, Sheikh Ahmad Tijani, made this submission at a forum organised by the youth wing of Oluwakemi Ajumoni Central Mosque, Oshodi, to reward leaders and people who have contributed to the development of youths. Sheikh Tijani said youths should uphold moral virtues for a better tomorrow. He called on the government to put in place a programme that will help to monitor the progress of the youth. “Youths should be put on the right track that is the essence of being a leader. Though you may be a youth today, tomorrow you will be an adult and may God Al-

By Amidu Arije and Hameed Yekini

mighty choose you to be a good leader for Islam and the entire Nigeria,” he said. He said the education of the youth must be tackled head long for them to be upright in their various activities. “We need to make sure our youth have a good academics standard and the only way to achieve it is through visionary academic programmes from the government, “he said. Speaking shortly after the award, the Chief Imam of the mosque, Alhaji Shakirudeen Abimbola Olokuta, said elders can now repose confidence in the youth that they will bring glory to the society and the country. He also

‘

Youths should be put on the right track that is the essence of being a leader. Though you may be a youth today, tomorrow you will be an adult and may God Almighty choose you to be a good leader for Islam and the entire Nigeria

’

stated that the government should pay attention to the welfare of the youth. “No country can grow without the youth, especially when you have the kind of youths we have today, and we are proud of them, though we are aware they have a programme plan for the elementary school, but we want them to go far beyond that. We want them to establish pharmacy, health centres and computer centre and some other programmes,” he said. He was grateful for the honour bestowed on him by the youths and promised to help them in their future endeavours. “I am really happy to be part of the people who received the merit award today I just pray to Almighty Allah to continue to lead the youth aright,” he added. Another recipient of the award, Sheik Bisiriyu Abdul Kareem, was also appreciative of the youths’ confidence in him. He was rewarded for his gestures to the development of Islam and youths in the society. “I thank God for today, I equally thank the youth for presenting me this award,” he said.

•From left: Ighodalo and Akabueze handing the trophy over to the captain of the winning team. PHOTO: NNEKA NWANERI

Foundation lifts 100 persons O fewer than 100 persons, including widows and other less-privileged, benefited from the end-of-the-year gift items by the Bola Ahmed Tinubu Foundation Outreach in Ifako-Ijaiye Local Government Area of Lagos State. Making the donation which included a bag of rice and a gallon of groundnut oil to the beneficiaries at the Aina Ajobo Council Secretariat, the Council Chairman, Mr Oloruntoba Oke, said the donation was to further promote the wellbeing of the people. Describing the promoter of the Foundation, Asiwaju Bola Ahmed Tinubu and his wife, Senator Oluremi as people in whom the milk of

By Yinka Aderibigbe

compassion and kindness flows, Oke said the donation was part of efforts by the Action Congress of Nigeria (ACN) National Leader to touch the downtrodden. He said: "You all know that the leader of our party is a lover of and a promoter of the highest good for the greatest number of people. This gift coming from this Foundation is part of his efforts to reach other people in this local council, especially the widows, during a period like this. “We in this local government are proud to associate with this Foundation, and we would like you all to know that this is going

•Chairperson of Ifako-Ijaiye Local Government Mrs Modupe Oke (right), presenting a beneficiary her items.

to be the Putting a beginning of smile on t h e foundation's the less activities in privileged our council." Oke said the list of beneficiaries were compiled by the leaders of the various Community Development Association (CDA), as well as church and mosque leaders in the council areas, and assured that even those who hadn't put down their names would equally be accommodated in subsequent distribution. The council has massive rehabilitation of roads. Oke said the exercise is part of his six-point agenda to ameliorate the suffering of residents in the area. Roads that are being currently fixed according to Oke include the 1.12 km Old Akute Road, in Iju, Kajola Street, and Powerline, Others are Obawole, Thomas Salako Street, Kayode Street, and Oluwasijibomi Street all in Ogba, Ifako. He said the roads being rehabilitated are critical road networks which serves as link roads that would make commuting not only pleasurable on completion, but also reduce traffic logjam hitherto experienced by the people. The council chief reiterated his administration's commitment to improved wellbeing of the people through the provision of quality healthcare services, improved welfare package for the elderly, sports regeneration, youth empowerment and skill acquisition.

MONDAY, JANUARY 9, 2012

CITYBEATS

QUOTE OF THE WEEK “Nigerians know the problems of Nigeria; nobody should claim that he/she will transform Nigeria. Transformation is a revolution, which may be bloody or otherwise. Nobody should be allowed to control us in this nation.” Founder/President of the Oodua Peoples Congress (OPC), Dr Frederick Fasehun, speaking on burning national issues.

Govt set to mend potholes

AGOS State Public Works Corporation (LSPWC) has procured new equipment that will help it tackle potholes. The equipment, called PotholePatcher, which is specifically designed to repair newly-emerging potholes, also has an insulator in its compartment that ensures that the quality of asphalt is not compromised. LSPWC Executive Chairman Mr Gbenga Akintola, who spoke to reporters shortly after test running the facility in Ikeja, said early detection and repair of potholes on roads would prevent further damage and save cost that would have been incurred on such roads if left to deteriorate. Akintola New stressed that the machine equipment has the capac- to fix roads ity to store up

•Public Works men at work

UPILS of Chrisland School, Opebi, Lagos, have joined the battle against dirt, germs and preventable diseases. They enlisted on the kick germs out campaign at the launch of new Safeguard antibacterial soap, which was held in their school premises. Head, External Relations of Procter and Gamble, Mrs Patricia Obozuwa, while introducing the soap to the pupils said: "The objective of the Champions of Health programme, is to reinforce health and hygiene messages among children across Nigeria in a fun and engaging way. Safeguard aims to secure a healthier and brighter future for our children. “Safeguard, an antibacterial

Pupils get tips on healthy living By Sampson Unamka

soap, has been helping mums all over the world to protect their families against germs,”she said. According to her, many children die yearly from preventable diseases, including diarrhea and respiratory infections. She noted that hand washing with soap is one of the most effective and affordable ways of preventing the spread of infections. Meanwhile, Safeguard's team of professional health workers has visited various locations to run sessions on the importance of hand washing and maintaining good hygiene practices. Children were taught that

germs are everywhere, even on seemingly clean surfaces and can be picked up through everyday activities. “These practical hand washing demonstrations will teach children how to clean their hands correctly,”Mrs Obozuwa said. Managing Director, P&G Manoj Kumar said: "The introduction of Safeguard in Nigeria would expand P&G's existing product range.” The Safeguard Champions of health school programme aims to touch over a million children in Nigeria. The programme aims to reach children across the nation with information on how to guard

against preventable diseases such as diarrhea and pneumonia through hand washing. We at P&G are committed to continuous investment in Nigeria, while touching and improving lives in the best way we can. A cartoon relating to germs was shown to the children and a demonstration of the soap was presented by a member of the audience while 20 children made a hand mural of the soap while other children washed their hands. Mrs. Omowunmi George, Assistant/Director, State health Education Officer, Lagos State Ministry of Health commended P&G for the brilliant initiative.

By Miriam Ndikanwu

to six tonnes of asphalt. It also has a yellow box connected to its body, which contains the asphalt binder known as MC1. This part allows MC1 to be conveniently spread on the surface of the portion repaired with ease, In addition to this, there is a portion at the lower part of the machine where debris collected from the area repaired is kept. "Two of the machines have been added to the maintenance equipment used by our maintenance team. The machine has the capacity to repair one square metre of pothole in seven minutes and with frequent use, more time will be saved,” he said. Akintola noted that for a road maintenance agency to become relevant in the society, it must be proactive in adopting modern day maintenance practice that is cost effective considering the enormous sections the government has to commit its limited funds to. He said procurement of this machine can be likened to the saying that a stitch in time saves nine. LSPWC has the mandate to maintain and repair roads in Lagos within the limited funds available, hence tackling new pothole will minimise the number of damaged roads in the state. He reiterated that with the completion of the turnaround maintenance of its asphalt plant, the corporation's maintenance group has resumed its daily road maintenance with about 28 locations to work on daily. According to the him, the corporation has earmarked roads to be repaired in the next three months starting from December, totalling about 300 expected to cover almost all the local governments in the state.

Stakeholders to tackle building collapse

TAKEHOLDERS have converged on Lagos to discuss ways through which the government can tackle building collapse. The event was held at Kosofe Local Council Development Area. It was attended by traditional rulers, leaders of the various Community Development Associations (CDAs), traders and professionals in property development and management. State Commissioner for Physical Planning and Urban Development Mr Olutoyin Ayinde said the government would not treat issues of dilapidated structures with kid gloves, stressing that the situation would be addressed through strict implementation of the Urban and Regional Planning and Development Law of 2010. He said the government had demolished about 20 buildings identified to be defective, saying the move is geared towards halting building collapse in the state. Ayinde, who said the demolition was carried out in the last six months, assured residents that the state government would go all out to ensure that buildings identified as defective are sealed to prevent unnecessary loss of lives and properties. He said the state government has

By Miriam Ndikanwu

provided a platform for property owners and developers of defective buildings to request for their building to be tested. "We recently published in a national daily the list of distressed structures, some of which have been demolished, some are being retested to conduct to know their structural stability. “Once they adhere to the recommendations of the test, the buildings may continue to exist where they are recommended to exist, but where they are recommended for demolition. "It is wise for the owners of the structures to demolish them at that point, they own their land and they can redevelop, but when it collapses, we are not even going to allow that, we would demolish it." He said the Building Control Authority saddled with the responsibility of regulating erection of structures would take off shortly. The ministry has set up a committee to study the details of the Law as well as to work out structures to ensure the workability of the law. For the Acting General Manager of Lagos State Physical Planning and Development Authority (LASPPDA), Bola Adefihan, the meeting was geared towards the effective implementation of the

• From left: Onikosi of Ikosi, Oba Samuel Alamu Oloyede; Olutoyin Ayinde and Bola Adefihan, during the stakeholders forum PHOTO:MIRIAM NDIKANWU

physical planning law. She said the Regional Planning and Development Law 2010 was promulgated in July 2010, by Governor Babatunde Raji Fashola, and is aimed at achieving zero tolerance to incidence of collapsed buildings, illegal development, non-conforming developments among others, with a view to ensuring better physical environ-

ment for sustainable development. A resident, Mr Akinola Ajose, in a quest to find lasting solution identified the need for the government to educate the people properly on the requirements for building approval. He also appealed to the government to assist in addressing the bottle neck involved in the

processing of title documents for properties in the state saying this would assist in complying with the regulation. They also listed corruption on the part of officials as the challenges saying it has been observed that houses that are collapsing are modern structures as several mud houses built decades ago are still intact.

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THE NATION MONDAY, JANUARY 9, 2012

Akwa Ibom partners UNICEF on health

KWA Ibom State government has held the Maternal and Child Health Week. It did so in conjunction with UNICEF, the United Nations Children Fund. The event took place at Primary Health Care Centre, Ikot Akpannkuk, headquaters of Ukanafun Local Government Area. The state Ministry of Health supervises immunisation activities through the commissioner in charge of the ministry, Dr. Francis Udoikpong. The commissioner said the state has been doing well in Routine Immunisation (RI) as well as the Supplemental Immunisation Activities (SIA), both of which have resulted in the state being free from wild polio virus for the past nine years. He said the absence of communicable epidemics is also a fallout of these efforts. He praised the state government for its prompt response to matters concerning the health of children and Vaccine Preventable Diseases (VPDs) among Ibom children. The commissioner told the participants that apart from other activities of the state government designed to boost the health of the people, the Maternal and Child Health Week is another holistic and high impact interventionist programme under which it delivers healthcare to children between 0 and five years of age as well as women of child-bearing age. The intervention efforts included immunisation, administration of Vitamin A supplements, de-worming, screening to exclude malnutrition, HIV screening, health education on essential family prac-

OW can the nation develop in the face of the various challenges it currently grapples with? To what extent can the growing army of civil society groups, community-based organisations and non-government organisations contribute to compelling the nation’s leadership to move in the right direction? These, among other issues, engaged development experts and members of civil society organisations at a two-day capacity building session for NGOs in Lagos.

•Igbuzor during his presentation

•A baby gets immunised at the Health Week From Mike Akpan, Uyo

tices. He gave kudos to partner agencies such as WHO, UNICEF, Helen keller, Rotary International, the federal government through the National Primary health care Development Agencies (NPHCDA). Gift items such as pampers, soap,

water bottles and plates were distributed to children by the wife of the Transition Committee Chairman of Ukanafun Local Government Council Mrs Nseobong Nsikan Umoekpo. Her child was also immunised at the event to encourage other mothers to bring out their children for the exercise.

The commissioner said the state is doing well in Routine Immunisation (RI) and Supplemental Immunisation Activities (SIA), which have resulted in the state being free from wild polio virus for the past nine years

NGOs as agents of development By Eric Ikhilae

Participants also dealt with issues relating to proposal writing, project implementation, financial accountability, monitoring and evaluation, effective organisational management At the end of the event, participants were united on the great role NGOs must play in driving societal

development by helping, through advocacy, in influencing government decisions. They also agreed that NGOs can not replace government and its institutions, but must work to drive theses agencies into performance. Participants agreed that accountability in the management of donor funds was imperative in ensuring the successful execution of

NGO projects. The event organisers, T.Y. Danjuma Foundation (TYDF), said it was designed to train NGOs to be better positioned to deliver services to deserving communities with greater accountability The foundation’s Executive Director, Ms. Thelma Ekiyor noted that NGOs in the country have shown that they are able drivers

for community mobilisation and development. She said the training was informed by her foundation’s realisation that non-profit sector was capable of contributing to creating awareness and strengthening communities for sustained development. “The objective is in no way to do the work of government, but to instead, catalyse action from both the public and private sectors. That is why the foundation believes that partnership with communities and government is cardinal to achieving this objective,” she said. In his paper titled: Developmental challenges in Nigeria and role of NGOs” Dr. Otive Igbuzor attributed the nation’s stagnated development to poor leadership, corruption, weak institutions, lack of focus and effective state, among others. He argued that the prevailing culture where succeeding government sees development in terms of physical growth, accounted for why past development policies target only economic development at the detriment of political and social growth. Igbuzor, of the African Centre for Leadership, Strategy and Development, argued that development is not about skyscrapers and physical development, but about human development and the creation of policies that ensure qualitative life for the people. He urged the government to evolve policies that would drive growth in the education and heath •Continued on Page 37

THE NATION

MONDAY, JANUARY 9, 2012

NGOs as agents of development •Continued from Page 36 sectors, noting that researches have revealed that there was no correlation between economic growth and growth in health and education, sectors that help ensure human development. Deploring government’s emphasis in capitalist ideals and private sector driven economy, Igbuzor contended that happenings in the developed world have revealed that market forces were incapable of delivering public goods. Igbuzor, who also identified priorities misplacement by the state as a contributory factor in the nation’s stunted development, observed that most state’s policies are directed at the rich few at the detriment of the mass poor. On how NGOs could help ensure development, Igbuzor advocated a three-prong approach. This include engaging in advocacy efforts aimed at ensuring appropriate leadership strategy and development; working at promoting accountability through mobilization, advocacy campaigns and engagement, and helping to build capacity for leadership and efficient resource management. In his paper: “Developing a culture of sustainability” Akubo Adegbe sensitized participants on how NGOs could ensure management and financial sustainability, required for effective performance. He observed that most NGOs in the country lacked the strategic capacity required to achieve sustainability in vision, project execution and continued existence. Eric Osita Ike, in his paper titled: “Community foundations and grass-

N Action Congress of Nigeria (ACN) chieftain in Ondo State, Chief Olufemi Adekanmbi has described the incessant bombings across the country as a plot to frustrate President Goodluck Jonathan’s administration. Adekanmbi, who contested in the last National Assembly election for Owo/Ose Federal Constituency, said all efforts must be geared towards reducing the menace of the Boko Haram sect, which he noted has become a threat to the peaceful coexistence of the people of the country.

•Participants at the workshop roots development,” stressed the capacity of community base organisations to drive development in the grassroots.

He noted that grassroots development provide opportunities for ordinary/rural people in communities to gain skills and leadership neces-

The problem of growth in this country is not that the government does not know what to do. They have beautiful policies and plans, but the problem is implementation

sary to work together for long term transformative change. To Ike, grassroots development inspires people and strengthen communities, brings about proper communication/networking; enhanced community based effort; provision of services to transform communities and assist communities in every way possible to achieve positive sustainable change. Some of the participants, including Mrs. Claudia Long, Coordinator, ECWA Camp Youth Alive and Miss Moturayo Olagbuyi, Project Officer, African Centre for Environment Protection (ACEP) praised the

event organiser’s initiative. Mrs. Long said NGOs have made sufficient impact. “They have been able to penetrate the local areas and have made their impacts known. What is left is for them to be assisted to do more.” Miss Olgbuyi said “The problem of growth in this country is not that the government does not know what to do. They have beautiful policies and plans, but the problem is implementation. I believe if the NGOs are given the opportunity and well supported, in the area of funds provision they will do better.”

Bombers out to frustrate Jonathan’ From Damisi Ojo, Akure

The ACN chieftain who was speaking with reporters in Akure, the Ondo State Capital, said it was saddening that the insurgence of Boko Harm attack has continued to put the nation’s security under serious threat. Adekanmbi, who specifically condemned the Christmas Day bombing at St Theresa’s Catholic Church Madalla, Niger State, said such at-

tack could lead to religious crisis if urgent step is not taken by religious leaders, security agencies and other relevant stakeholders. He urged security agencies to be more responsive to the security challenges, so as to make Nigeria safe for foreign investors. His words: “It is sad at this period we are still battling with security challenges which has continued to make the nation insecure. The series of bombings have continued to

put Nigeria in bad light in the face of international communities. “The series of bombings to me is a calculated attempt to frustrate President Goodluck Jonathan efforts. The series of violence across the country is designed to portray the present administration in bad light. “It is high time security agencies rose up to the challenges and ensure that Nigeria is safe for people; the bombings have shown that various security agencies have not done enough to curtail the wave of bombings”. Adekanmbi also advised religious

leaders and governors in the Northern part of the country to convene a stakeholders meeting that would proffer solutions to the insurgence of Boko Haram sect before the situation degenerates into serious religious crisis. The ACN chieftain also urged Nigerians to always report strange movements in their areas to security agencies. “To ensure that bombings are reduced to the barest minimum, Nigerians must be alert and work collectively to report strange movement in their domains to security agencies”.

Kingship tussle: Community asks Mimiko to abide by custom

•From left: Former Chief Judge of Lagos, Justice Abdulfatai Adeyinka; Baba Adinni of Lagos, Sheik AbdulAfeez Abou; Bashorun of Lagos, Alhaji Sikiru Macfoy and General Secretary, Lagos Central Mosque, Alhaji Rajee Adenowo during the funeral for the wife of Chief Imam of Lagos, Late Alhaja Agbeke Ibrahim

HERE was a peaceful protest in Ipesi-Akoko community, Akoko South East Local Government Area of Ondo State over ascension to the town’s traditional throne. The community youths marched through the town holding aloft cards bearing the inscriptions: “He who makes peace impossible, makes violence inevitable”; “Mimiko is a peace-loving man; we do not want violence, therefore give us our rightful king”; ” It is a taboo for a son to succeed his father,” among others. The community leaders urged the state governor Olusegun Mimiko to abide by the custom of the community before announcing the appointment of their new monarch, saying traditional ruler’s stool selection is rotational. The king’s stool was declared va-

From Leke Akeredolu, Akure

cant since 2005 following the death of Oba Amodeni. Two royal families, Odeporo and Odogboroko, each consisting of 10 ruling houses, were eligible to contest for the royal seat. The Amodeni ruling house which hails from Odogboroko royal family is now contesting for the royal seat which, according to the elders of the community, is against the custom of the community. The second-in-command to the king in the community, High chief Adewumi Olorunfunmi who spoke with reporters, explained that the traditional ruler’s seat in the community is rotated between two royal families. They has urged Mimiko to bear this in mind in the emergence of a new king.

THE NATION MONDAY, JANURY 9, 2012

We honour him to encourage him to do more and to point to a model for our young men and women and all members of our society this man is worthy of emulsions

HIRTEEN people from Awka, Anambra State capital, and environs have been awarded chieftaincy titles for their contributions to the development of the city. The traditional ruler of Awka kingdom, Obi Gibson Nwosu, conferred the titles. There was a heavy downpour that day which 107-yearold man in the community, Chief Ngenegbo Adigwe interpreted to mean blessings for the community. Deputy Senate President, Ike Ekweremadu attended the ceremony which was chaired by former Senate President, Ken Nnamani. Chief Chika Okpala (aka Zebrudaya) was on hand to add colour to the ceremony as the chief compeer with his rib-cracking jokes. Chief Boniface Kodilichukwu Okelekwe who has been helping the needy was given the title of Ochendo, meaning the shelter of the people. Others who were honoured by the monarch included the former Army Defence Chief LtGeneral Chukwukadibia Obiakor. Others were former Speaker of Anambra State House of Assembly, Dr. Kanayo Enemo, Deputy Governor Emeka Sibeudu’s inlaw, Emmanuel Tagbo, Prof Pita Ejiofor, former Vice Chancellor, Nnamdi Azikiwe University Awka, Chike Obuekwe, Chief G N Muotolu, among others. The monarch described one of the honourees, Kodilinye Okelekwe as a man of the people, who has having given scholarships to uncountable number of students not only in the kingdom but also outside it. Okelekwe has been involved in philanthropy for over 20 years, lifting the poor and needy, the less privileged and widows. The monarch conferred the title of Ochendo on him. Through the foundation, over 400 Nigerians are able to study in various tertiary institutions in Nigeria. “I grew up poor and I know what poverty means,” he said. “I have never planned for any title before, I believe in hard work and I continue praying to God to continue blessing me for me to give back to the poor and needy.“ He described the traditional ruler of Awka kingdom, Obi Gibson Nwosu as an epitome of what a father should be and hence the reason for his accepting the title of Ochendo of Awka. “Today,” said the monarch, “we honour him to encourage him to

•Protest over fuel subsidy in Ibadan

•Former Anambra Speaker Enemo (middle), his wife and members of the crowd

Awka agog as 13 get titles From Nwanosike Onu, Awka

do more and to point to a model for our young men and women and all members of our society.” However, the monarch in his address regretted that communal peace in Awka has been negatively affected in recent times over matters relating to burial rites. He said, “I wish to state that in the 21st century that these issues ought to be left to the individual realm and choice without losing sight of the body of traditions”. “I have convoked a special committee comprising respected members of our community, members of the laity and the clergy to resolve the lingering problem and restore peace in Awka; let all the disputants

sheathe their swords.” He further commended the youth in trying to contain banditry and criminality in the capital city adding that they should be supported with necessary logistics to ease their task and burden. Commenting further on another honouree, Enemo, the former state House Speaker, the traditional ruler said the introduction of the liberalisation of land policy in Awka during his tenure as Commissioner for Lands, Survey and Urban Planning endeared him to the hearts of every Awka indigene. Enemo helped to eradicate land speculation, transform Awka capital, recover government land illegally encroached upon by people, and open new layouts in Awka, Onitsha and Nnewi, all of which

made him a worthy recipient of title of Okwulora, which means the spokesperson of the people. He told Newsextra that he will continue to be the mouthpiece of the downtrodden in the society, adding that the gesture by the Awka monarch would ginger him to do more. He said: “I’m humbled by the rec-

ognition; it is not in my character to receive titles because I rejected them when I was in office many years ago, but I feel elated that the Eze-uzu of Awka who has been a great ally of my monarch, Igwe Ugonwanne Ngene, found me worthy to be recognised. I will not disappoint him.” The crowd equally roared when Mr Chike Obuekwe, who works as head of Local Government Administration (HOS) in the state local government system, was given a title by the monarch.

‘Community police will tackle Boko Haram’

N Abuja-based security expert, Prince Francis Agbede has said that the state of emergency declared by President Goodluck Jonathan in some communities in the Northern region will not stop the activities of men of Boko Haram. He rather advocated the establishment of community police, saying “community police officers would have full knowledge of their areas by detecting any stranger in such community”. Agbede, who spoke with journalists at his home town at Igbara-Oke in Ifedore Local Government Area of Ondo State, explained that “declaration of state of emergency by the government will only create chaos for people in other states becuase the Boko Haram members will only migrate to other areas where they will be free to perpetrate their evil act.” He said President Goodluck Jonathan’s action would continue to worsen the security situation of the country, stressing that the issue of Boko Haram goes beyond state of emergency. According to him, “the federal govenrment’s action is a temporary solution will not last long; it is propaganda that cannot stand the test of time. “But if the President can put in place community police, this will eradicate the activities of Boko Haram in the

From Leke Akeredolu, Akure

country. He said, “Security situation in the country is quite alarming. The federal government has done what it could do to solve the problem but all remains the same; the issue of Boko Haram has escalated everything, and the only solution to it is to establish community policing. We need to sit down and look at our problem in order to formulate policies that will be suitable to it”. Also, Agbede who kicked against the removal of fuel subsidy by the federal government said President Jonathan’s decision would collapse the economy of the country. He explained that the federal government should find ways of building refineries in all the 36 states of the federation rather than embarking on the removal of oil subsidy that could lead to hardship. “If the federal government had built refineries in all 36 states of the federation, it wouldn’t have agitated for removal of oil subsidy; the adviser of President Jonathan should tell him to fashion out modalities that will favour the masses. “The outcome of oil subsidy removal will have negative effects on the masses, the price of things will escalate and the situation will give room for hoodlums,” he said.

MOTORING

THE NATION

MONDAY, JANUARY 9, 2012

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

0803-4693-984 tajudeen1423@yahoo.co.uk

email:- motoring@thenationonlineng.net

The 2012 Nissan Altima’s passenger cabin offers top-quality materials and styling. Altima coupes feature nicely bolstered sport seats in place of the sedan’s flatter front buckets, writes TAJUDEEN ADEBANJO with agency addition.

•Nissan Altima

The new Nissan Altima O

THER than minor feature availability adjustments, the 2012 Nissan Altima is unchanged. Sooner or later, auto lovers would reach that point in life where they feel compelled to trade their stylish, fun-to-drive set of wheels in for something more sensible. What many do not realise, however, is that cars like the 2012 Nissan Altima don’t force you to choose between those two extremes. While both the midsize Altima sedan and Altima coupe are handsome automobiles that are only part of their appeal. Choose the V6-powered 3.5 SR model, for example, and you’ll get both a robust 270-horsepower V6 engine and a firmer suspension that makes this Altima feel more like an expensive sport sedan. Even without these upgrades, the entry-level 2.5 and midrange 2.5 S models offer a decidedly more engaging driving experience than one would expect from such practically oriented automobiles. Inside, the Altima sports an attractive and comfortable cabin. The interior can also be fitted out with upscale options like a hard-drive-based navigation system with music storage, Bluetooth streaming audio and a rearview camera. These and many other high-end goodies are bundled together in a number of different packages, meaning some buyers will be forced to shell out money for features they don’t really want in order to get those they do. Another downside to the Altima is that rear seat headroom is a bit tight in both coupe and sedan body styles. Those issues aside, the Altima is still one of the better choices in the crowded midsize category, even though many competitors are newer designs. For those interested in checking out a few worthwhile alternatives, we’d recommend having a look at the well-rounded Ford Fusion, the roomier Honda Accord and the similarly sporty Mazda 6. Other top choices include the very impressive Hyundai Sonata (and related Kia Optima) and the

European-influenced Volkswagen Passat. While it’s impossible to go wrong with any of the above, few offer the combination of driving enjoyment and everyday practicality offered by the 2012 Nissan Altima.

Body styles The 2012 Nissan Altima is offered in coupe and sedan body styles. There are three trim levels: 2.5, 2.5 S and 3.5 SR. The 2.5 base model (sedan only) list of standard equipment includes 16-inch steel wheels, keyless entry, air-conditioning, cruise control, full power accessories, a tilt-and-telescoping steering wheel and a trip computer. There are no options offered here, not even a stereo, though the interior is prewired with four speakers. The 2.5 S trim, which can be had on both body styles, adds 17-inch alloy wheels (coupe only), keyless ignition/entry and a six-speaker sound system with a CD player and an auxiliary audio jack. Available options include a new value package that comes with automatic headlights, Bluetooth, an auto-dimming rearview mirror and a leatherwrapped steering wheel with audio controls. The special edition package adds alloy wheels, automatic headlights, foglights, a rear spoiler and a leather-wrapped steering wheel with audio controls. The technology package can be added to all 2.5 S and 3.5 SR models and includes a hard-drive navigation system with real-time traffic and weather updates, digital music storage and Bluetooth streaming audio capability.

Powertrains and performance All 2.5 models get a 2.5-litre four-cylinder that generates 175 hp and 180 pound-feet of torque. A

•Interior of the car

continuously variable automatic transmission (CVT) is standard on all sedans, but it is optional on the coupe, which has a six-speed manual standard. The sportier 3.5 SR is powered by a 3.5-litre V6 that produces 270 hp and 258 lb-ft of torque. The transmission choices are the same. In Edmunds tests, a 3.5 sedan went from zero to 60 mph in seven seconds, while the 3.5 coupe did the same sprint in 6.7 seconds with the CVT and 6.5 seconds with the manual.

Safety Every 2012 Nissan Altima comes standard with antilock brakes, stability and traction control, front seat side-impact airbags and side curtain airbags that cover both rows. In Edmunds brake testing, most Altimas regardless of body style came to a stop from 60 mph in about 130 feet, a number that is a bit longer than average for the category. In the Institute for Highway Safety’s frontal-offset and side crash tests, the Altima sedan received

the best possible rating of “Good.”

Interior design and special features Inside, the 2012 Nissan Altima’s passenger cabin offers top-quality materials and attractive, if a bit plain, styling. Up front, Altima coupes feature nicely bolstered sport seats in place of the sedan’s flatter front buckets. The Altima coupe and sedan offer a bit less rearseat head- and legroom than some of their competitors, though it’s really only an issue in the coupe and even then there is enough space to squeeze in a couple of adults for a short trip. Gauges and controls are simple and uncomplicated, even when it comes to the available navigation system. Most other top family sedans have caught up to the Altima in regards to technology features, though the Altima still has an impressive collection, including its hard-drive-based navigation system and Bluetooth streaming audio.

THE NATION MONDAY, JANUARY 9, 2012

MOTORING

Passengers turn to railway stations

Niger awards N11b road contracts

HE Niger State Executive Council has approved the award of N11 billion contracts for nine road projects. The Commissioner for Works, Dr Ibrahim Sule, told journalists that the contracts were awarded after due diligence on the bids submitted by contractors to the tenders board. He said 33 companies bidded for the projects. Sule said the 14 kilometre Maitumbi eastern by-pass to Maikunkele Road would cost N2

billion, while the 5.3 kilometre Lapaigwari-FUT Road would be constructed at N924 million. He said the 66.6 kilometre Kuwakuti-Kaffin Koro-Gwada Road would cost N2.1 billion, while the 46 km Rijau-Dukku Road would cost N2.6 billion, including the construction of a bridge across River Kaduna at N1.4 billion. Sule said the project would be executed through the N9 billion bonds that had been obtained by the government, while the remaining N3 billion needed for the project would be

•Niger State Governor Dr Muazu Babangida Aliyu

sourced from the 2012 budget. He expressed optimism that all the projects would be completed on schedule.

Passengers cautioned against boycotting motor parks C HAIRMAN, National Union of Road Transport

Workers (NURTW), Funtua Local Government branch, Katsina State Alhaji Idris Yahaya, has cautioned passengers against boycotting motor parks in search of cheap transport fares. Idris, in an interview with the News Agency of Nigeria (NAN) in Funtua, while commenting on fuel subsidy removal, said dubious persons could perpetrate evil acts on such passengers. Yahaya, advised the passengers to always patronise the motor parks in spite of the increase in fares

due to the removal of the fuel subsidy. He attributed the hike in transport fares to the jump in the price of petrol from N65 per litre to between N150 and N160. He called on the government to consider the plights of Nigerians by reversing its decision and urged the people to remain calm and lawabiding. Yahaya explained that N100 had

been increased on each route and advised passengers to be patient as the union would review the fares as situation permits. In a related development, the NURTW Chairman, Malumfashi Local Government, Malam Rabi’u Bawa, said the union had also shot up transport fare by N100 on each route. He said most of the drivers had parked their vehicles due to the high cost of petrol, while the number of passengers had drastically reduced at the garage.

Motorists urged over road project

HAIRMAN, Kuje Area Council of the Federal Capital Territory (FCT), Mr Danladi Zhin, has appealed to residents to be patient with the contractor handling the KujeGwagwalada road project. Zhin, who made the appeal while speaking with the News Agency of Nigeria (NAN), debunked speculations that the contractor had abandoned the project. “Kuje-Gwagwalada road rehabilitation is important and a burden on the council. Though the contractor has gone on Christmas break, the project is not abandoned. “We are in touch with authorities in the FCDA that awarded the contract and I can assure you that we will continue to update the minister on development of the project,” he said. He said his administration would not relent in ensuring that the project was given due attention since the minister had given area councils powers to supervise projects within their domains.

UNDREDS of commuters besieged the various terminals of the Nigerian Railway Corporation (NRC) in Lagos and Ogun states, to boards train to their offices and other destinations. The News Agency of Nigeria (NAN) reports that the terminuses have continued to record huge crowds since Tuesday, after the fuel subsidy was removed on January 1 by the government. The corporation’s mass transit train— which runs from Ijoko and Agbado in Ogun to Ido and Apapa in Lagos State, had recorded low patronage during the Yuletide and New Year festivities. According to NAN, passengers had, however, been fighting for seats on the train because of the huge turnout, since work resumed last Tuesday. NAN also reports that the transit train had been making three runs, instead of its usual four shuttle services, from Ijoko (Ogun) to Ido (Lagos Mainland). As a result of the large turnout of

passengers, some, who could not secure seats, were forced to sit on the roof of the train, while others waited patiently to catch the second or third shuttle. “I got to Ijoko station since 6 a.m. to catch the train to Apapa, but all the seats had been filled up. I was forced to hang by the door to get to work early,’’ Mr Funso Majekodunmi, a clearing agent at Apapa, told NAN. Another passenger at Ido terminus, Mrs Idayat Balogun, a trader at Idumota on Lagos Island, said she had been at the station since 2 p.m. with other traders to secure seat on the 4.15 p.m. train, but did not succeed because it was “already over booked”. Other passengers, who also spoke to NAN, appealed to the management of the corporation to increase the shuttle services from the present four runs to at least six runs aq day, to cope with the huge turnout being currently experienced.

Taxi driver in court over breach of trust, cheating

35-YEAR-OLD driver, Terwase Uwi, appeared before an Abuja Chief Magistrates’ Court on a two-count charge of criminal breach of trust and cheating. The Police prosecutor, Mr Simon Emmanuel, told the court, that one Emmanuel Elista of Daki Village Abuja, reported the matter at Life Camp Police Station. He said in June, Elista entrusted his Mistibushi vehicle to the accused, to use as taxi. The prosecutor said they agreed that the accused would pay the complainant N57,000 every

month. He further said that since the June agreement, the accused had been avoiding Elista and had also failed to meet the terms of the agreement. Emmanuel said the offence contravened Sections 312 and 322 of the Penal Code The accused, however, pleaded not guilty and Chief Magistrate Abdullahi Illela, granted him bail in the sum of N20,000 with a surety. He ordered that the surety must reside within the court’s jurisdiction and adjourned the case to January 19, for hearing.

Fares increase in Enugu

•Automobile consultant Dr Oscar Odiboh presenting a plaque to the Public Relations Manager, Toyota (Nigeria) Limited, Mrs Bukky Ogunnusi, during the Nigerian Auto Awards organised by GMC at Sheraton Hotels and Towers, Ikeja, Lagos.

OLLOWING the removal of fuel subsidy by the Federal Government, transport fares within Enugu and outside have increased drastically. An investigation by the News Agency of Nigeria (NAN) showed varying increases, rising by more than 100 per cent in some cases. Commercial drivers plying intercity routes attributed the increase to the high cost of fuel following the subsidy removal. Mr Mathew Agu, a taxi driver, said a litre of petrol, which cost N65 before, now sold for between N160 and N200. According to him, the increase in the price of petrol is sometimes more than 200 per cent, jacking up fares. “The fuel situation will affect everything, especially the poor masses. “Many people who travelled for the Yuletide celebrations will be trapped in their villages,” he said. Mr Okwudili Madu, another driver, said the subsidy removal

came as a shock to him, noting that many people would find it difficult to cope with the situation because of the hike in fares. “Government should have considered the people’s welfare bearing in mind that January is one of the hardest months.” Mr Chimaobi Iwuorie, also a driver, said he had no option than to buy fuel at a high cost because passengers were stranded at the parks. Mr Henry Maduegbuna, a passenger seen at the Young Shall Grow park, said he was compelled to pay the high fare to safeguard his job. He called on the government to cushion the effect of the subsidy removal. NAN reports that the journey from Enugu to Lagos which cost N2,850 previously now costs N8,300, while the fare for a trip from Enugu to Abuja is now N7,100, up from N2,500. Passengers travelling from Enugu to Port Harcourt now pay N2,000 instead of the N800.

DRIVING TIPS

ANY Employers of drivers consider it unnecessary to train their Drivers for reasons best known to them. This is a big mistake because a driver who is not well trained could turn out to be the cause of the death of his principal. The mistake of an accountant can be corrected but the error of a driver could lead to loss of lives and damage to properties. •Driver’ habits The habits formed by drivers have a lot to do with their performance behind the wheel. Some drivers have the habit of taking dry gin or Indian hemp

Drivers and safety before handling the steering. While some others have the habit of not allowing anyone to overtake them whenever they drive (over speeding). Impatience whenever there is traffic slowdown is the habit of several others. As a driver, sincerely ask yourself the bad habit you do exhibit which can endanger your safety when driving. The best way to break an habit is to drop it. •Driver feelings and emotions A driver who is suffering from any form of emotional disturbance

is a safety risk on the road. Some drivers are not happy that they are doing that type of job. It then becomes a case of “na condition make crayfish bend” situation to them. I have seen many drivers that loaded themselves with heavy burdens of many wives and children. What do you think will be the state of mind of a driver with a salary of N30,000 per month who has two wives and seven children? In some cases, the employers or principals of drivers are the cause of their emotional problems. Many

drivers are being treated as slaves and outcasts. Their principals see and treat them as “common and useless” drivers. It should, however, be known to every employer of drivers that the feelings and emotional trauma any driver suffers can become counter productive against their employers and the people they drive. The right and fair treatments must be meted to the drivers to get the best out of them for the safety of lives and properties. This also applies to the relationship between the drivers of commercial vehicles and the passengers. A joyful mind strengthens the bones.

Jide Owatunmise

THE NATION MONDAY, JANUARY 9, 2012

JOBS THE NATION

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

THE NATION MONDAY, JANUARY 9, 2012

â&#x20AC;˘A refinery

With the removal of oil subsidy, industry watchers forecast tremendous job cuts as companies struggle to stay afloat. They argue that subsidy removal will increase the cost of operations, as well as reduce the capacity to function. AKINOLA AJIBADE and DANIEL ESSIET report.

Job cut looms over fuel subsidy removal J OB loss is imminent in the manufacturing industry, as the Federal Government announced the removal of oil subsidy two Sundays ago. The announcement, which came to many as a surprise, is bound to have ripple effects on the economy. It is expected to affect every facet of the economy, especially the manufacturing sector. Before now, the industry has been plagued with problems, such as low ca-

pacity utilisation, funding, weak corporate governance policy, and huge unemployment. The development has resulted in the retrenchment of millions of workers, as well as closure of many manufacturing outfits. Findings have shown that multinationals and indigenous companies have had cause

to sack their workers. The list of such companies include Cadbury Nigeria Plc, Nestle Nigeria Plc, Airtel Nigeria Limited, Nigerian Bottling Company Limited, Michelin Nigeria Limited, Dunlop Nigeria Plc, Unilever Nigeria Plc, and Leventis Nigeria Plc. Many companies have relocated to

neighbouring countries due to huge cost of doing business in Nigeria. Others are struggling to survive. But the announcement of fuel subsidy removal by the Federal Government has since brought untold hardships to many Nigerians. Industry observers argue that the removal of fuel subsidy would further reâ&#x20AC;˘ Continued on page 48

THE NATION MONDAY, JANUARY 9, 2012

JOBS

Job cut looms over fuel subsidy removal •Continued from page 47

duce the living standard of an average Nigerian. They reason that many industries would downsize to stay in business. The Executive Secretary, Association of Foods Beverages and Tobacco Companies, Mr Aderemi Adegboyega, said the removal of fuel subsidy has the potential of leading to job loss in the manufacturing industry. He said the development would increase the prices of goods and services and affect the capacity of companies to operate optimally. He said: “The removal of oil subsidy would increase the cost of moving goods around. This would further lead to increase in the prices of goods. When the prices of goods go up, there would be fewer demand for goods. If the demand for goods decreases, the companies would be forced to rationalise their operations. When this happens, there would be retrenchment. Whenever a company cuts its workforce, the remaining workers would demand higher salaries to cushion the effects of the bad economy. In a situation like this, companies would prefer to sack more workers, than increase their salaries.” He said the decision to remove the oil subsidy is painful, adding that the issue would have negative effects on the operators in the real sector. He said operators would cut jobs when they can no longer cope with the economic pressures. Also, the former Managing Director, Berger Paints Plc, Mr Adebowale argued that the issue of removal of fuel subsidy is go-

ing to have spiral effects on the economy, adding that many would lose their jobs. Adebowale said the small and medium scale enterprises are bound to retrench, since they run on petrol. He said the issue would affect the big manufacturing industries, notwithstanding the fact that they use diesel. According to him, the cost of doing business in Nigeria would increase as a result of the removal of fuel subsidy. “Of course, there is going to be job loss in the industrial sector. Though one cannot really say the level at which oil subsidy removal would affect jobs, the issue is definitely going to bring many people into the labour market,” he said. Similarly, the President, Association of Microenterprises of Nigeria (AMEN), Prince Saviour Iche, said the small and medium scale enterprises are already battling with problems, adding that the fuel subsidy removal has compounded their woes. Iche said a lot of small businesses will eliminate jobs in coming months in order to cut down the cost of operations. He said micro enterprises are under intense pressure, and must, therefore, think of how to rejig their operations to ensure growth. He said micro enterprises have been reducing costs in the face of

• Minister of Trade and Investment, Olusegun Aganga

profit-squeezing, new regulations and intense competition, arguing that the fuel subsidy removal would lead to more job losses. “With subsidy removal, job cuts will definitely increase. Before the year ends, medium-sized businesses will cut hundreds of thousands of jobs. The severity of job losses among small-sized businesses will be higher than largersized ones. Though the impact of

• Former MAN President, Alhaji Bashir Borodo

the subsidy would be felt on various sectors of the economy, the effect would be much on the small and medium-sized employers, because they use petrol for their operations,” he added. Iche said the outlook for small and medium enterprises (SMEs) is grim, in view of the decision of the government to remove the oil subsidy. “Some transport operators may

‘Of course, there is going to be job loss in the industrial sector. Though one cannot really say the level at which oil subsidy removal would affect jobs, the issue is definitely going to bring many people into the labour market’

be forced to stop operations because of the significant increase in fuel prices. The impact of high fuel prices on employment decisions is particularly relevant in Lagos, Port Harcourt and Owerri, where jobs have increasingly shifted to the suburbs. Companies in most cities are often inaccessible by mass transit, putting more pressure on transportation costs. Besides, other noninformal operators, such as owners of barbing saloon, furniture makers, market men and women, among others would suffer patronage,” he said. Based on this, it safer to conclude that hard times await business owners who may have to contend with problems, such as huge cost of operations and jobs loss soon.

CAREER MANAGEMENT

Politics in the work-place: Are you an owl or a fox?

O be effective and to survive, managers require leadership competencies which include envisioning, mental energy and stamina, a sense of purpose, ability to continue learning, ability to handle organisational politics, understanding and managing teams, facilitative in approach, being intuitive, change management, communication, stress management, balancing ambition and integrity, etc. Countless hours of training, books upon books, academic and non-academic papers and vital units of business education curriculum have been devoted to one of the above competencies/skills or the other. However, little has been written about organisational politics, either because many find the subject distasteful or perhaps because it is deemed to be worthy of study. Neither is it found in the syllabus of any management programme of MBA course that I have come across. What a waste! It is possible that more people’s careers flounder on the rocks of organisational politics than for many other reasons. Yet it is an area of great interest to practising managers. An exceedingly high proportion of the extracurricular questions (i.e. those asked in the bar at the end of the day) in most out-of-site training programmes centre on this thorny area. Whether we want to admit it or not, the stark reality is that there is heavy, sometimes dangerous politicks, is going on in our establishments and corporations. While it may not be surprising to find it in government institutions and corporations, the academia is not left out. Even the so-called blue chip companies are not left out, including the local subsidiaries of trans-national corporations. In our environment, the basis of the politicking is a little more complex and the instrument of practice can be scary. Organisation politics here is complicated by unbridled nepotism, ethnicity and corruption. It is not unusual for promotions, ap-

By Olu Oyeniran

pointments and postings to be done on one or more of the above considerations rather than merit and competence. And the instrument ranges from the absurd to the macabre-juju, assault, arson and, even, assassination! So how can politics be defined and, more importantly, how can it be survived? If company politics can be described as ‘the way we do things around here’, then surely it can also be described as ‘the way that we do things to people around here’. It is sad truism that whatever people gather to tackle a task, there will be tension, rivalries, jealousies, hidden agendas and plain oldfashion mischief. Not only do people want to achieve the task their own way, they also want the way that the task is approached to reflect glory in certain specific directions and to help the careers of specific individuals or groups. It may not be pleasant, but, whether your place of work is a merchant bank or a monastery, it is unavoidable. Indeed, there is evidence to show that the more senior and better educated the participants, the more prevalent and unpleasant will be the politics. At Marks & Spencer’s Head Office in London in the 70s, a number of highly qualified, talented individuals played fast and furious political games. The reasons? The awesome organisation in its retail stores did not extend to Head Office, where many senior professionals were somewhat under-employed. As the saying goes, ‘the devil makes work for idle hands’, and the spare hours were filled with all sorts of intrigue. The concept of political animals is a popular one, and the University of Birmingham has conducted intriguing studies on the nature of these beasts in organisations. Researchers identified two axes behaviour: • That of being ‘well-read’ in what was go-

ing on politically within the organisation: having an interest in the different factions’ power camps and power plays. The degree to which one was well-read could be high or low • That of having an interest in self and the promotion of one’s own aims versus that of having a prime interest in the fortunes and welfare of the organisation. With these axes in mind, it then became possible to identify four discrete orientations and to label each with the name of the animal most representative. Orientation 1: Here the individual was politically well-read and had a high interest in the fortunes of the organisation rather than self. This individual they labelled the Wise Owl. Owls are both liked and respected; furthermore, they are seldom hunted and usually survive. There is one downside, however: they do not often get to the head of the forest. Orientation 2: In this box the individual was well-read and took an active interest in the politics; moreover, the individual promoted him- or herself actively within the organisation. Here we have the Crafty Fox. The fox is not always popular, for it hunts and it can create mayhem, but usually it is a survivor. Occasionally, it oversteps the mark and is hunted down, but even fox hunt in the area of southern England where I live are anything to go by, I’m glad to say!) Orientation 3: In the first of the lower boxes is found the person who is politically ill-read, but who on the other hand has a high degree of self-interest. The researchers contemptuously label this individual as the Donkey – both stubborn and stupid. The donkey is used as a beast of burden, resents it and is seldom thanked. It never reached the top.

Orientation 4: The final box contains those who are badly read politically, who have no interest in improving their knowledge or skills and yet who continually put the organisation before self, Loyalty, blind loyalty, is the name of the game, and these people are labelled Sheep, unquestioning naive. It is often happens that the sheep end up in the slaughterhouse. So, where is the best position to be politically? Having put this question to a wide variety of executives from different countries and cultures, the answer is invariably ‘just to the right of the Fox/Owl divide (i.e. a combination of both, but being slightly more of a Fox). In other words, they were saying that you have to know the political forces at work and have to keep up to date with the trends and development here. In addition, you have to know how to play the game in order to appreciate the games was not worth the sacrifice or one’s own personal integrity and self-respect. So, to survive, the effective leader must be ‘aware’ and must learn to apply this awareness in ethical ways that reinforce the leader’s credibility rather than detract from it. All the essential skills of questioning, listening and above all intuition must be used to the full. Having the antennae out of all times is not being manipulative and does not sacrifice integrity. It is simply being smart. Acknowledgement: we have relied heavily on John Maurik, Management Consultant and author, Discovering The Leader in You (McGraw-Hill, 1994) and The Portable Leader Olu Oyeniran is the Lead Consultant, EkiniConsult & Assoiciates. Website: www.jobsearchhow.com E-mail: oluoyeniran@yahoo.com Tel 08083843230 (SMS Only).

THE NATION MONDAY, JANUARY 9, 2012

PERSONAL FINANCE

Email: taofad2000@yahoo.co.uk

Rules that will shape investment in 2012 (1)

Investor’s Worth

A technocrat as an investor ED Star Express Plc is the most capitalised supply chain management and business support services company on the Nigerian Stock Exchange (NSE). It has endeared itself to the investing public as a consistent, profitable and dividend-paying company since its listing in 2007. With paid up capital of about 589.5 million ordinary shares, Red Star is generally owned by some 4,240 shareholders. But in percentage shareholding, Red Star is largely controlled by nine shareholders, garnering about 49 per cent equity shareholding. The importance of majority shareholders cannot be overemphasised in the formative, intermediate and mature periods of a company. As forerunners, majority shareholders are the visioners and brave-hearted investors that place their resources at risk for the development of an idea. As the company goes through the teething problems of the formative years, it takes the resoluteness and conviction of purpose of majority shareholders to surmount the odds. And in the timely decisions required to sustain and reinvent a matured company from relapsing, it takes selfless core investors to take proactive decisions for the preservation of the company even when these reduce personal influences. Mr. Isaac Orolugbagbe can

rightly be described as a technocrat, especially in the logistics industry where he has proven his mettle as a successful visionary manager of resources. But he is also an investor extraordinaire. One of the nine largest shareholders of Red Star, Orolugbagbe holds the second largest equity stake among the directors of the company. With an eightdigit shareholding equivalent to 2.14 per cent equity stake, he earns an average of N3.8 million annually as cash dividends. The immediate past managing director of Red Star, Orolugbagbe steered the affairs of the company for a decade and upon his retirement, he was appointed unto the board of directors; a vindication of the board’s appreciation of his contributions to the transformation of the company from a small privately owned courier company to a publicly quoted company. Orolugbagbe holds a B.Sc. Chemistry from the University of Ife, now Obafemi Awolowo University (OAU), and a Master in Business Leadership (MBL) from the University of South Africa. He started his career as an Audit Trainee in Olatunde Ayoola & Company, Lagos in 1985, from where he moved to BolaSadipe & Company in 1987. In what later turned to be the defining moment of his career, Orolugbagbe joined DHL in 1991 as the Treasury Controller and later moved to Red Star

•Orolugbagbe

Express in 1994. He rose through the ladder and became the managing director of the logistics company. A Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), Institute of Directors (IoD) and Chartered Institute of Marketing; Orolugbagbe is an alumnus of Lagos Business School and Witts Business School, South Africa. In recognition of his deep understanding of the logistics industry, Orolugbagbe was recently appointed chief operating officer of the Sky Aviation Handling Company (SAHCOL) with a mandate to strengthen the company for better returns to investors. The listing of SAHCOL on the NSE would definitely be another confirmation of Orolugbagbe’s profile as a value-adding investor-technocrat.

Ask a Broker

RADING in rights is the offering of pre-allotted shares due to a pre-qualified shareholder in a rights issue to another investor by the shareholder through the instrumentality of the stock exchange. Every shareholder is statutorily entitled to benefit from a rights issue. As such, rights, or shares being offered under rights issue, are pre-allotted to shareholders on the basis of their shareholdings. Rights are usually offered at discount, mostly below the secondary market price of the stock. This discount gives rights market values of their own and makes them attractive for both pre-qualified

What is trading in rights? shareholders and other investors. But with the understanding that not all shareholders may be interested or be in position to take up all or any of their allotted shares, the stock exchange provides window for pre-qualified shareholders to sell all or part of their rights to other investors at a premium above the rights issue. The premium goes to the selling shareholder, while the rights issue price goes to the issuing company. Given the discount built into rights, failure to sell the rights may re-

sult in actual loss to the shareholder. The Nigerian Stock Exchange (NSE) started trading in rights in July 1998 and has since maintained active trading platform for rights issue. Trading on the ongoing rights issue of Union Bank of Nigeria (UBN) Plc has been scheduled for the last week of the offer period, providing pre-qualified with a win-win opportunity to lock in their values for future gain or convert into immediate cash through trading of the rights.

Ways and Means

What to consider before opening bank account ORMAL banking relationship starts with the opening of an account; irrespective of the type of account. Either savings or current accounts, investment-linked or transactional accounts, a potential account holder needs to consider some key points that may be crucial to optimal account management as well as security of his account. The first consideration is the fundamental strengths of the financial institution. These measures of a fundamentally strong bank include compliance with all statutory operating requirements issued by the Central Bank of Nigeria (CBN), profitability of its banking operations as evidenced by the profit and loss accounts and its institutional financial strength as indicated by the balance sheet. Banks are required to dis-

play key extracts of their audited report and accounts in the banking hall and in the absence of a displayed copy; one may request to see the key financials of the bank. Ascertaining the fundamentals of the financial institution is important because the depositor also stands to lose from the sudden collapse of the bank. Although the financial services authorities guarantee all deposits in the event of any untoward development in any bank, the intervening period between the intervention and resolution of the issue may weaken the depositor’s financial position or create an outright insolvency problem. A potential account holder also needs to consider the board and management of the bank. The composition of the board in terms of diversity of skills, ex-

HE capital market broadly comprises three key players-regulators, quoted companies and operators. Quoted companies, such as Nestle Nigeria and operators, such as stockbrokers and issuing houses are the face of the market because they relate directly with the investors. But the market regulators play the important roles of setting the background for market activities. There are many factors that influence the direction of activities at the capital market. Rules and regulations however form the primary framework upon which other variables interrelate to shape market direction. To understand the dynamics behind primary and secondary market activities, investors need to understand existing rules as well as impending rules and regulations and impacts of such rules. Nigerian capital market regulators have undertaken several amendments to existing rules and introduce new rules in recent period as the market struggles to regain investors’ confidence and stabilise for recovery. Rules such as code of corporate governance made significant impact on the direction of the market in the immediate past year. Many new rules and regulations are expected to contribute to the dynamics of the capital market in 2012 and beyond. With the rules at the advanced regulatory approval stages, many of the rules may start impacting on market activities this year. These rules include the rules on share buyback, market making, securities lending and minimum public float.

perience and influence as well as integrity of members of board would determine the quality of their oversight functions. Also, the quality of management in terms of professional knowledge and cumulative experience will drive the financial performance of the bank, which is crucial to the security of the deposit or investment. Many sudden unexplained resignations from the board or management are often early warnings of serious organisational crisis. Ownership and structures determine the resilience of any financial institution, especially in the event of sudden regulatory changes such as the knee-jerk increase of banks’ minimum capital base from N2 billion to N25 billion or macroeconomic changes such as sharp decline in public sector funds.

Rule on Share Buyback: Under the share buyback rule due to come into effect soon, companies with large outstanding shares and those that feel their shares have been unduly underpriced or under pressures due to the number in issued could buyback up to 15 per cent of their issued shares. Reduction of outstanding shares could lead to significant revaluation of a company as it tends to increase fundamental earnings and secondary market variables, especially when such shares were purchased at lowerthan-fundamental values. Companies with large retained earnings or reserves can deploy these to lock in values for shareholders, especially companies that had raised significant genuine capital at high prices during a bullish period and now find the shares at ridiculously low prices during a bearish period. The share buyback rule forbids any company from purchasing its own shares within 15 days prior to the publication of its annual or interim results and any company which has bought back securities cannot make any issue of the same kind of securities in any manner whether by way of public issue, rights issue or bonus issue within one year from the date of completion of buyback. Besides, where a company buys back its shares, it shall cancel the repurchased shares

By Taofik Salako

within 10 working days of the last date of completion of buyback but the company is expected to maintain a register of the securities which have been cancelled. The company shall also notify the Nigerian Stock Exchange (NSE) on completion of the buyback. The share buy-back rule requires deep understanding and participation of shareholders. First, the board of the company intending a share buy-back is expected to provide information on the source of funds for making the proposed purchase and the funds shall be out of the profit of the company which would otherwise be available for dividend or the proceeds of a fresh issue made for the purpose of the purchase. The board of directors shall take a decision at a board meeting for the purchase of a range of shares over a period of not exceeding two years and shall fix a date for the company’s meeting for seeking the approval of shareholders. While the directors of the company would decide on the propriety or otherwise of share buyback, shareholders at a general meeting hold the overriding votes to approve or reject such decision in line with the extant laws that require approval of majority of shareholders on any issue that will lead to changes in share capital. The company must send to detailed information to all its shareholders which would enable them to make an informed decision on whether to vote for or against the ordinary resolution to approve the share buyback or not. So, knowing what the share buyback rule entails and the rights of shareholders therein empower shareholders to take informed decision in initiating discussion on buyback, approving it or disapproving it. Rule on market maker: Market making is a technical term that generally refers to the system of providing liquidity to securities through provision of bid and offer prices in the trading system of a stock exchange. A member of the exchange that undertakes the function of market making is called market maker. Market makers can be categorised according to the level of liquidity supports they provide. A primary market maker is regarded as the foremost liquidity provider of a particular security while the supplemental market maker acts as a supplementary liquidity provider. Generally, market makers ensure a fair and orderly market in their securities of responsibility and assist in the effective functioning of the overall market. A market maker is expected to ensure that trading for its account is reasonable under the circumstances, consistent with just and equitable principles of trading and above all, it is not detrimental to the integrity of the market. However, market making is susceptible to abuses and there must be a strong and efficient regulatory framework

to forestall any abuse. As such, shareholders need to be fully aware about the market makers of their stocks, the activities of market makers and possible impact of such activities on price discovery. For a market that had been bedeviled with share price manipulations and criminal collusions, market making exposes the market to subtle maneuvering unless there is adequate and efficient regulatory framework to forestall possible abuses. Rule on Public Float: Public float is technically a synonym of public shareholder and it refers to the shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria. Thus, public shareholders and public float do not include shareholders or shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings. The existing rule at the NSE requires companies to maintain 25 per cent minimum public float. But a new rule ensconced under the revised listing rules underway seeks to cut the minimum float to 20 per cent for companies quoted on the main board. Companies on the Alternative Securities Market (ASeM) are expected to maintain 15 per cent of each class of equity for public shareholding while duallisted companies are required to sustain public float of 10 per cent of each class of equity securities. The new minimum public float, when it becomes effective, will give many core shareholders opportunity to acquire up to 80 per cent controlling equity stake and may particularly shape the course of rights issue. The reduction in public float, though it may be an incentive to large multinationals-especially oil and gas companies being wooed by the NSE, would further concentrate shareholdings in the hand of core investors and whittle down general participation. Stock markets generally maintain minimum public float to prevent undue concentration of securities in the hands of the core investors and related interests, a situation that can make the stock to be susceptible to price manipulation. Besides, it provides the general investing public with opportunity to reasonably partake in the wealth creation by private enterprises. India recently increased its public float to 25 per cent. Hong Kong also maintains 25 per cent float. Even at 20 per cent, the new minimum float at NSE would still require some core investors such as in Dangote Cement to sell down their controlling equity stakes to comply with the float requirement. As such, there could be some offers for sale from some core investors.

THE NATION MONDAY, JANUARY 9, 2012

THE CEO Central Bank Governor Sanusi Lamido Sanusi chairs the Bankers’ Committee, an association of chief executives of banks and selected financial institutions. The committee, which meets bi-monthly, held the third edition of its annual retreat in Calabar, Cross River State last month. It was attended by Minister of Finance Dr Ngozi Okonjo-Iweala, her counterparts in Agriculture, Dr Akinwumi Adesina, and Power, Prof Barth Nnaji, and financial experts from home and abroad. In this interview, Sanusi explains banks’ plans for the economy, the banking sector reform and other issues. Group Business Editor AYODELE AMINU was there.

OW do you intend to increase lending to the agric sector? Basically, what we have done over the last one year was to do a study and try to understand why banks have not been lending to agriculture in their balance sheets because the whole idea is to encourage banks to use their money, rather than rely on funds by government. Part of that study resulted in the creation of the Nigerian Incentive Base Risk Sharing for Agricultural Lending (NIRSAL). We found out that, first of all, we need to unlock agricultural financing. We gave example of the tomato farmer who is losing 40 per cent of his output because there is no alternative to storage as against processing. So, there has to be investment in giving him the right seeds and also linking him up with a processor, from there to the market. So, that role is being carried out by the Ministry of Agriculture in collaboration with the states ministries. Now, for the banks, once the infrastructural facilities are there and the comfort is there, what they need is a form of comfort that

‘Banks now well positioned to develop the economy’

• Mallam Sanusi

will allow banks invest in the sector. So, we have designed risk-sharing products along different points in the value-chain. For example, if a bank lends to a primary producer – in this case, a tomato farmer – up to a loss level of 12.5 per cent of the portfolio, he will share the risk with the bank on an 80-20 basis. If you move up the value chain, into pro-

cessing for example, or if you lend to a large farmer, then it would be 50-50 basis. When you now move beyond that to processing or agro-business, the farmer takes 30 and the bank takes 70 per cent. This model is what has worked in other parts of the world. The scheme is self sustaining. But in addition to providing guarantees, we have a

‘So removal of subsidy will have a lot of medium to long-term benefits. Foreign reserves will improve because we spend so much money importing petroleum products... the savings from fuel subsidy will increase reserves, reduce the pressure on the currency and improve our ability to contain inflation’

programme for providing technical assistance, not just to the borrowers, but also to the lenders. This is because part of the problem of lending to agric is that the bankers themselves don’t have the capability for taking agric risk and the farmers don’t have the benefits to communicate effectively with the banks. What other measures are in place? We are also supporting insurance and we are engaging the agric ministry on the policy. So, the whole idea is recognition that lending to agriculture requires more than preaching to banks or ordering them to lend. It requires everybody coming to a room – the regulators, the banks, the Ministry of Agriculture, the Ministry of Finance, the Power Ministry, the operators (farmers) themselves, the seed companies and the fertiliser companies. If we all come together in a particular part of the country and pick a particular crop, we can de-risk the value chain. Will the removal of fuel subsidy, deregulation and liberalisation of the oil sector • Continued on page 53

THE NATION MONDAY, JANUARY 9, 2012

THE CEO

‘Banks now well positioned to develop the economy’ • Continued from page 52

cause inflation? Our estimate is that in the shortterm, there would be a slight increase in inflation. Inflation is now at 10.5 per cent, we think it will go up to 12 or 13 per cent if the subsidy is removed. We think a lot of the concerns about inflation are a bit exaggerated. A lot of our transportation and significant part of production is driven by diesel, which has been deregulated for a long time. Kerosene has also been deregulated for a very long time. PMS is something that goes to vehicles of a lot of people and the subsidised price of N65 per litre is not available to everyone. So, when the numbers actually come out, people will find out that the inflation fears are exaggerated. We are estimating an increase of up to 200 basis points. But what happens in the medium to long-term? The liberalisation and deregulation of the sector is to get private sector investors into the oil sector. You will get players who import at competitive prices and not rent seeking and investors whose profits will be dependent on their business model and not on rent seeking. It will also reduce the amount that is spent on importing petroleum products that do not get into the country, but are smuggled across the borders because of the cheap fuel in the country. All the fuel that is consumed in Benin Republic, Cameroun, you find out that they are from Nigeria. So, the point I am making is that while these concerns are genuine, a lot of the concerns are exaggerated because the actual amount of petrol that comes into Nigeria and is consumed by Nigerians, is in my view, less. So removal of subsidy will have a lot of medium to long-term benefits. Foreign reserves will improve because we spend so much money importing petroleum products. If our reserves don’t go up, then everybody believes that the naira is going to be weaker and

• Mallam Sanusi

we will have pressure on the currency. So, the savings from fuel subsidy will increase reserves, reduce the pressure on the currency and improve our ability to contain inflation. We may even have enough reserves to strengthen the naira. What is the CBN doing to restore the dignity of the currency, especially the coins? I am not sure that the word ‘dignity’ is appropriate because you will use one kobo or two kobo, if you have something to buy with it. But, certainly, we are aware that Nigerians will like to see the use of coins and that is the reality. You will hear something from us in that respect in the next few weeks. It is an ongoing process and obviously, these are things that go through the presidency and the board of the CBN. So, very soon, you will hear something about coins. Can you throw more light on the payments system infrastructure? Well, if you look at what we set out in terms of payment system transformation beginning with Lagos, when we said global standard, what we did was to benchmark ourselves with Brazil. And basically, these includes things such as Point of Sale (PoS) density, the introduction of mobile banking, efficient alternative channels such as internet banking and a general reduction in the percentage of transactions taken by cash. So, we have set a very clear target for payment system efficiency and we want to start with what we have called ‘cash-less’ Lagos by early next year. We expect 40,000 PoS infrastructure. We have also started what is called the Nigerian Inter Bank Settlement System (NIBSS) Instant, which means you can go to your bank and carry out your transactions effortlessly and people are beginning to use that. We are promoting the use of direct credit and there has been a rapid increase in the issuance and usage of cards. So, it is a comprehensive programme for helping Nigerians

move away from a situation where cash and cheques have been dominant in conducting transactions to electronic channels. At what stage is the banking reform? You know that as at 30th of September we came to the end as far as the balance sheets are concerned. So, officially, there is no Nigerian bank that is under-capitalised. There is no Nigerian bank that has non-performing loan ratio beyond the acceptable level after the work of Asset Management Corporation (AMCON). Now, does that bring an end to the process? No! It doesn’t. It brings us to the end of one phase of the process, which is basically about restoring the balance sheet of banks. There is an ongoing process of improvement in governance, risk management and capacity building, not just in banks, but in the CBN as well. We are also improving supervision and regulation. We have looked at the Basel 111 proposals and the implication of the proposals as well as its regulations. What is the essence of this year’s retreat and who are the parties involved? The governor of the CBN, together with the deputy governors of the CBN, Managing Director of the Nigeria Deposit Insurance Corporation, together with the CEOs of deposit money banks (DMBs), discount houses, and other financial institutions, conveyed the Third Annual Bankers’ Retreat in Calabar, from ninth to 11th December, 2011. The participants included the governor of Cross River; minister of finance and coordinating minister for economy; minister of agriculture; minister of power as well as financial experts within and outside the country. This retreat is to provide a unique platform to allow the industry to collaborate on opportunities to stimulate sustainable growth of the economy. After two years of focused attention with operators, the Nigerian financial crisis is on the final lap of resolution. The collective decisions and actions of the Bankers’ Committee as a catalyst for economic development have resulted into tangible benefits. Advocacy for change is working; government has commenced the implementation of the ‘transformation agenda’ aimed at growing the economy and creating jobs. Lending to critical sectors of the economy is improving with significant increase to agriculture and a clear framework for derisking agric lending. Our reforms at the banking sector are on course and the banking sector is well positioned to support development of the economy. This year, in recognition of the challenges facing the global economy, the 2011 retreat was named – ‘Financial System Stability and its Implication for Economic Development.’ The focus was on the potential risk and impact of monetary and fiscal policies on the stability of the financial system, and the implication for Nigeria’s economic development aspiration. What is the outcome of the retreat? We affirmed our commitment to a stable financial system in Nigeria and to contribute to the economic development and growth. We commend President Goodluck Jonathan for his transformation agenda and we associate with the objective of growing the Nigerian economy and creating jobs. The CBN has taken creative actions to address short, medium and longterm actions to address challenges

• Mallam Sanusi

‘To consolidate our successes and address issues that are remaining, the Bankers’ Committee will continue to play advocacy role as well as collaborate with the economic team, to implement the country’s economic agenda and create jobs’ facing the financial system, improving banks’ balance sheets and working with government towards fiscal consolidation and structural changes. The stabilisation of the Nigerian financial system will ensure that the financial system can more effectively contribute to the realisation of development of the country’s goals and objectives. To consolidate our successes and address issues that are remaining, the Bankers’ Committee will continue to play advocacy role as well as collaborate with the economic team, to implement the country’s economic agenda and create jobs. What are the areas of focus? The areas of focus are the monetary and fiscal policies. The Bankers’ Committee urges improved fiscal prudence and rationality in government’s expenditure. We support the deregulation and liberalisation of the petroleum sector to stem leakages and ensure the availability of funds for infrastructural development for future generation. We advocate the establishment of the sovereign wealth fund and committed to its actualisation. The CBN is focused on its primary mandate of price stability and has instituted a framework for enhanced monetary policy transparency and accountability. In the short-term, the CBN will continue to implement a tight monetary rate environment supported by price stability. Given the importance of monetary and fiscal policies and the potential impact on the economy, we emphasise that coordination and collaboration between fiscal and monetary policy is critical. The CBN is adopting a strategic approach with the development of a national strategy for financial inclusion to increase formal usage of financial services to 70 per cent, from the current level of about 30 per cent. Specific strategies include the implementation of the Know Your Customer (KYC) system to

promote financial inclusion, develop data base for identity management system, improving financial literacy and using the Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) to bring farmers into the banking system. The Bankers’ Committee will collaborate to entrench financial system regulation and supervisory framework that is responsive to the industry and regulation challenges. The goals of the financial system regulations and supervision includes improving governance, improving risk management, crisis management framework, avoiding build up of non-performing loans, encouraging lending to the agric sector, capacity building for the industry among regulators and operators, strengthening ethical practices and consumer protection and improving communication with key stakeholders. The industry also recognises the importance and contributions of the payment system to the economy. We are committed to the modernisation of payment infrastructure within a short-term framework, to provide world-class structures and channels for commercial activities. We are committed to the cash-less programme to increase the availability and density of alternative to cash system for payment. We are commencing the initial pilot scheme in Lagos. We are committed to bring Nigeria’s payment infrastructure to global standards by 2015. The Bankers’ Committee has determined the results and outcome of the goals we intend to achieve. We will on an ongoing basis, monitor the process of implementation as well as the impact of our actions on Nigeria’s economic development. The sub-committee on economic development and sustainability would coordinate execution of the programme and provide feedback to the CBN and banks’ chief executives.

THE NATION MONDAY, JANUARY 9, 2012

9, 2012

THE NATION MONDAY, JANUARY 9, 2012

MONEY LINK

Rights issue: Union Bank nears oversubscription

HE ongoing rights issue of Un ion Bank of Nigeria (UBN) Plc might be oversubscribed, according to the feelers from professional parties and officials of the bank. Parties to the rights issue, including the issuing houses, registrars, stockbrokers as well as officials of the bank, expressed confidence that the issue would be a huge success, citing subscription pattern and expressions of interest. UBN is offering about 1.41 billion ordinary shares of 50 kobo each at N6.81 per share in the ratio of five new ordinary shares for every nine ordinary shares held as at September 30, 2011. The application list opened on December 14 and would remain open till January 20, 2012. According to the indicative timetable for the offer, receiving agents will make returns on February 3, while the parties would forward the allotment proposal to the Securities and Exchange Commission (SEC)

By Taofik Salako

late February. Union Bank is expected to receive the net proceeds of the rights issue by March, 2012. The Managing Director, Union Capital Markets Limited, the joint issuing house to the rights issue, Tunde Yamah, who spoke on the prospects of the rights issue, said, shareholders have showed overwhelming interest to pick their shares. He said that shareholders have been enthusiastic about picking their rights because of the locked-in value of discount of not less than 40 per cent and the prospects of increased holdings in a recapitalised leading bank. He assured that shareholders would be fully allotted their shares and any application for additional shares would be considered if there is renouncement. Yamah, added that shareholders who are applying for additional shares stand to earn interest on their return monies, if there are no shares for additional allotments.

the Registrars provide access to the 500,000 shareholders of the bank. Ayeni, added that the bank has also provided extensive communication channels for shareholders to interact with the officials of the bank and parties to the issue in resolving any complaint. Executive Director, Corporate, International and Investment Banking and Treasury, Union Bank of Nigeria Plc, Philip Ikeazor, said the bank would ensure that all shareholders have the opportunity to pick their rights. “We are desirous and eager to redeem our earlier pledge of giving

He said investors who were not qualified initially for the rights have been making enquiries on opportunities to buy in through the rights trading, which further illustrates the attractiveness of the offer. He said trading on the rights will open in the last week of the offer period. Yamah said that Union Bank’s rights issue is the most attractive offer in the financial markets now with inherent value to yield above money market instruments and other equities. The Chief Executive of Union Registrars Limited, the registrars to the issue, Tunde Ayeni, said rights circulars have been distributed to all shareholders, while the interface between parties to the issue and shareholders confirmed that most shareholders have received their circulars. He however, called on shareholders who have any issue, to visit any of the branches of the bank or Union Registrars nationwide, noting that the extensive networks of the bank and

More winners emerge in UBA promo

ORE winners have emerged in the ongoing UBA Lion King Savings Rewards Promo, organised by the bank to inculcate savings in Nigerians. At the weekly draw held at UBA’s Head Office in Lagos on Thursday and observed by representatives of the National Lottery Regulatory Commission (NLRC) and Consumer Protection Council, (CPC), Mrs. Sabo Alhassan, a savings account customer with account domiciled in Sanni Abacha Barracks, Abuja emerged the Star Prize winner. Other savings accounts customers that emerged winners in the latest draw include Akabogu Mary Grace Adanma, Yakubu Habiba, Emmanuel Okoriko Gabriel, Mrs Teresa Ezenwa Onuoha, Ubi Mbeh Nkanu, Stella Ogunbanibi and Oyewumi Ben Ayodele with accounts domiciled in various business offices of the bank spread across the country. They all won the sum of N100,000.00 each while consolation prizes of N50,000.00 each was won by 30 other customers. Last week, Mrs Hoomsuk Magdalene, a savings account cus-

Banks to offer skeletal services during strike

ANKS will provide limited branch services today during the nationwide strike called by Trade unions and oil workers to protest the removal of fuel subsidy which raised fuel price by over 100 per cent. “There will be skeletal services, people on essential duties will come to work,” Abdulrahman Yinusa, Chief Financial Officer at Diamond Bank, told Bloomberg at the weekend. Trade unions called an indefinite nationwide strike and threatened to shut down ports, fuel stations, banks and oil operations in the country if the government fails to restore the fuel subsidy. President Goodluck Jonathan has held an emergency meeting with governors of 36 states in Abuja, to

By Collins Nweze

discuss measures that can help ease higher prices. “Going on strike or closing down government is not the solution. We need to stand up as a country together and sacrifice so that we can guarantee the future of this country,” Gabriel Suswam, Benue State Governor, told reporters in Abuja. Standard Chartered’s 29 branches and 683 workers will “definitely” be affected by the strike, Diran Olojo, a Lagos- based spokesman for the lender, said. While branch operations may be affected, ATMs and electronic banking services will be running, Udom Emmanuel, executive director at Zenith Bank Plc, said. “We are being extremely cautious the lives of our staff come first. Our

normal policy is to remain open,” Folanke Ani-Mumuney, a spokeswoman for FirstBank of Nigeria Plc, said. The Bloomberg Nigerian Banking Index, which tracks the performance of the 10 most capitalised banks, was little changed at 273.46 after falling as much as 0.7 per cent. Jonathan abolished N1.2 trillion ($7.5 billion) of subsidies on January 1, promising to use the savings to boost investment in power plants and roads. Oil workers will join the strike called by the Trade Union Congress and Nigerian Labour Congress, Nigeria’s two main labour federations, according to Babatunde Ogun, president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

FGN BONDS Amount N

Rate %

M/Date

3-Year 5-Year 5-Year

35m 35m 35m

11.039 12.23 13.19

19-05-2014 18-05-2016 19-05-2016

WHOLESALE DUTCH AUCTION SYSTEM Amount

Price Loss 2754.67 447.80

INTERBANK RATES OBB Rate Call Rate

7.9-10% 10-11%

PRIMARY MARKET AUCTION (T-BILLS) Tenor 91-Day 182-Day 1-Year

Amount 30m 46.7m 50m

Rate % 10.96 9.62 12.34

Date 28-04-2011 “ 14-04-2011

GAINERS AS AT 6-1-12 SYMBOL CCNN UPL LIVESTOCK DANGSUGAR RTBRISCOE MAYBAKER VITAFOAM IKEJAHOTEL DANGFLOUR WEMABANK

O/PRICE 4.60 3.40 0.81 4.66 1.22 2.28 5.05 1.54 5.75 0.55

C/PRICE 4.83 3.57 0.85 4.89 1.28 2.39 5.28 1.61 6.00 0.57

CHANGE 0.23 0.17 0.04 0.23 0.06 0.11 0.23 0.07 0.25 0.02

LOSER AS AT 6-1-12 SYMBOL UBN MORISON JAPAULOIL UBA BAGCO GTASSURE ACCESS CUTIX AIICO CONTINSURE

O/PRICE 10.60 9.05 1.02 2.47 1.72 1.29 5.03 1.55 0.52 0.79

C/PRICE 10.07 8.60 0.97 2.35 1.64 1.23 4.80 1.48 0.50 0.76

Amount

Offered ($) Demanded ($)

MANAGED FUNDS

NIDF NESF

tomer with account domiciled in Yelwa, Plateau State won the sum of one million naira in a computerised draw. She became the second millionaire to emerge in the promo after Mr. Okorie Sunday Stephen, a savings account holder with the Bank won a million naira in the inaugural draw of the promo. Speaking at the event in Lagos, Chidi Okpala, Divisional Head, Group Retail Banking, UBA Plc said the UBA Lion King Savings Reward Promo will see a total of 1,038 customers rewarded during the campaign. According to him, within the next six months, seven UBA customers will win the sum of N5 million each in the Super Grand Draw while 1026 savings account customers of the bank will win cash prizes between N50,000.00 to N1million in 23 weekly draws. To qualify for both the weekly and grand draws, existing or new customers of the bank are advised to make a one-time minimum fresh deposit of N10,000.00 in their account while new customers are required to open accounts with a minimum of N25,000 only.

DATA BANK

Tenor

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

opportunities to the existing shareholders to take up their rights in line with their clamour to do so during the recapitalisation process,” Ikeazor said. Citing subscription reports that showed a high enthusiasm among shareholders, he said the rights issue has started well and the bank has now firmly been placed on the path towards reclaiming its leadership position. He pointed out that the rights issue is the last phase of the bank’s recapitalisation programme as the bank has completed other steps including the reconstruction of its shares.

Amount

Exchange

Sold ($)

Rate (N)

Date

450m

452.7m

450m

150.8

08-8-11

250m

313.5m

250m

150.8

03-8-11

400m

443m

400m

150.7

01-8-11

EXHANGE RATE 26-08-11 CAPITAL MARKET INDEX Currency

Year Start Offer

Current Before

C u r r e n t CUV Start After %

NGN USD

147.6000

149.7100

150.7100

-2.11

NGN GBP

239.4810

244.0123

245.6422

-2.57

NGN EUR

212.4997

207.9023

209.2910

-1.51

149.7450

154.0000

154.3000

-3.04

Bureau de Change 152.0000 (S/N)

153.0000

155.5000

-2.30

Parallel Market

154.0000

156.0000

-1.96

NSE CAP Index

NIGERIA INTER BANK (S/N)

27-10-11 N6.5236tr 20,607.37

28-10-11 N6.617tr 20,903.16

% Change -1.44% -1.44%

MEMORANDUM QUOTATIONS Name

(S/N)

153.0000

DISCOUNT WINDOW Feb. ’11

July ’11

Aug ’11

MPR

6.50%

8.75%

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% 9.4%

Offer Price

Bid Price

9.17 1.00 118.85 98.43 0.76 1.04 0.88 1,642.73 8.24 1.39 1.87 7,351.90 193.00

9.08 1.00 118.69 97.65 0.73 1.04 0.87 1,635.25 7.84 1.33 1.80 7,149.37 191.08

ARM AGGRESSIVE KAKAWA GUARANTEED STANBIC IBTC GUARANTE AFRINVEST W.A. EQUITY FUND THE LOTUS CAPITAL HALAL BGL SAPPHIRE FUND BGL NUBIAN FUND NIGERIA INTERNATIONAL DEB. PARAMOUNT EQUITY FUND CONTINENTAL UNIT TRUST CENTRE-POINT UNIT TRUST STANBIC IBTC NIG EQUITY THE DISCOVERY FUND • ARM AGGRESSIVE • KAKAWA GUARANTEED

CHANGE 0.53 0.45 0.05 0.12 0.08 0.06 0.23 0.07 0.02 0.03

• STANBIC IBTC GUARANTE • AFRINVEST W.A. EQUITY FUND

NIBOR Tenor 7 Days 30 Days 60 Days 150 Days

Rate (Previous) 24 Aug, 2011 9.0417 9.6667 11.2917 12.1250

Rate (Currency) 26, Aug, 2011 10.17% 11.46% 11.96% 12.54%

Movement

OPEN BUY BACK Previous

Current

04 July, 2011

07, Aug, 2011

Bank

8.5000

P/Court

8.0833

Movement

THE NATION MONDAY, JANUARY 9, 2012

NEWS

•Amaechi (fifth right) with security chiefs, members of the Nigerian Legion, the State Executive Council members and other guests at the service...yesterday

We’re alive to our responsibilities, says Amaechi

IVERS State Governor Rotimi Amaechi has said his government would fulfill its commitment to the people. He said this yesterday at St. Barnabas Anglican Church, Port Harcourt, to mark this year’s Armed Forces Remembrance Day. Amaechi said his administration is aware of the challenges faced by the people, and would tackle them promptly.

“I appreciate the problems of Rivers people,” he said. The governor said plans are on to provide stable and constant electricity in the state by December. He reiterated that the ongoing work on the Ada George road in Port Harcourt would be completed before the rainy season. Amaechi also said the Ogbogoro road

would be completed soon. On the Elekahia Streetlight project, he said his government expects the contractor to finish soon . On security, the governor pledged his administration’s preparedness to guarantee residents’ safety. “We believe that all of us must live together as a country. “We believe that all of us are brothers and

We’re safe in Rivers, say Hausa

HE Hausa leader in Rivers State, Saliu Kampala, has said his people are not being killed in the state. He also said the Hausa are not leaving Rivers because of insecurity or threat of reprisal. Kampala, who is also the Turaki of Port Harcourt and leader of Northern Traditional Rulers, said

From Bisi Olaniyi, Port Harcourt

yesterday that Hausa people are safe in the state. He said they have been assured of their safety by Governor Rotimi Amaechi and Police Commissioner, Suleiman Abba. Kampala, who spoke at the old Port Harcourt Township, urged residents to discountenance the rumour

that Northerners were being killed or are leaving the state. The Hausa leader said emphasis should be placed on peace. He said most of the Boko Haram bombers were from neighbouring countries. Investigations in Port Harcourt yesterday, especially in the areas mostly occupied by Hausa, indicated

that the northerners were going about their duties. Amaechi yesterday assured residents of their safety. He said government has a duty to protect all citizens, irregardless of their religious affliations. The governor spoke at an interdenominational service to mark the Armed Forces Rememberance Day.

Colloquium for Ojukwu’s funeral

REPARATIONS for the funeral of the late Biafran leader, Dim Chukwuemeka Odumegwu Ojukwu, will begin on January 16 with a special International Colloquium on Ahiara Declaration, at Ahiara, Mbaise, in Imo State.

From Gbenga Omokhunu, Abuja

The event is being organised by the Conference for Democratic Scholars (CODES), which is led by Prof Timothy Uzodima Nwala, with Ohanaeze Ndigbo as the chief host.

In a statement by the organisers, signed by a member of its Media and Publicity Committee, Chuks Ehirim, CODES posited that: “Ahiara Declaration was a historic, political and ideological testament declared by Ojukwu on June 1, 1969, during the heat of

the Biafra War (1967-70).” The keynote address will be delivered by Senator Uche Chukwumereije. Ojukwu’s wife, Bianca, is the special guest. Also, the wife of Ojukwu’s second in command during the war, (Gen. Philip Effiong,), Mrs Josephine Effiong, will also attend the event.

Court adjourns hearing till Jan 17 in CPP chieftain Onokpite’s murder

HE Warri High Court 3, presided over by Justice C. E. Achenefu, has adjourned hearing till January 17 in the suit by the family of the former governorship candidate of the Citizen Peoples Party (CPP), Ogbe Onokpite. Onokpite was killed in October last year after po-

From Polycarp Orosevwotu, Warri

licemen accused him of alleged gun running. Briefing reporters, counsel to the Onokpite family J. E Odohisi said: “The case was adjourned owing to the ongoing protest by the Warri branch of the Nigeria Bar Association (NBA) over the fuel subsidy removal.

‘We have filed our necessary papers and we are ready for court proceedings and ruling as the court pleases’ “Parties have picked January 17 to reconvene for the

next proceeding.” The police’s counsel, G. C. Elemuwe, said: “We have filed our necessary papers and we are ready for court proceedings and ruling as the court pleases.” Elemuwe had called for an adjournment till January 6 during the last sitting to allow him file his papers.

Seven-man panel to probe ex- Ebonyi Speaker HE Ebonyi State House of Assembly has set up a seven-man committee to probe the financial transactions of the House during the tenure of its former Speaker, Ikechukwu Nwankwo. The lawmakers, during plenary at the weekend, mandated the commit-

From Ogbonnaya Obinna, Abakaliki

tee to look into the House’s financial dealings from June 7, last year, when Nwankwo was elected, till December 20. The former Speaker was impeached on December 21, over alleged fraudulent activities, incompetence and abuse of office. The committee, which is headed by Chris

Usulor, is to look into the allegations of fraud involving Nwankwo, the suspended accountant, Martin Idenyi and others. The committee is also to determine the total funds collected by Nwankwo or any other member from any organisation for and on behalf of the House.

sisters,”he said. On fuel subsidy removal, Amaechi who is also Chairman, Nigeria Governors’ Forum, appealed to Nigerians to support President Jonathan. “Nigerians need to support President Jonathan on the issue of fuel subsidy withdrawal. “Believe me, things will change and things have got to change”

CPC withdraws from alliance HE Congress for Progressive Change (CPC) in Edo State has announced its withdrawal from the supposed alliance it entered into with other parties that led to the formation of Coalition of Progressive Political Parties (CPPP). It said it would field a candidate for the July 14 governorship election. The CPC accused the CPPP leadership of insincerity, lack of transparency, saying the CPPP’s aims and objectives run contrary to the aspirations of the CPC. CPC’s Publicity Secretary Tracy Agol said this was part

From Osagie Otabor, Benin

of the resolution of the party at the end of its State Executive Meeting. Agol said part of the reasons the party withdrew from the alliance was because of complete disregard for the integrity and standard of the CPC. He said the fact that CPC members were not allowed to contest as councillors also contributed to the collapse. The Publicity Secretary said the CPC Chairman, Godwin Erhahon, entered the alliance without obtaining requisite legal consent of the party’s State Executives.

Ebonyi ANPP candidate heads for Supreme Court From Ogbonnaya Obinna, Abakaliki

HE governorship candidate of the All Nigeria People’s Party (ANPP) in Ebonyi State, Senator Julius Ucha, has headed for the Supreme Court, following the dismissal of his petition challenging the election of Governor Martin Elechi. In a statement yesterday in Abakaliki by his Media Adviser, Emmanuel Uzor, Ucha said the judgment by the Appeal Court sitting in Enugu was not the true reflection of the people’s wishes. He said: “I must state that the weekend court judgment was not the true reflection of the wishes and aspiration of the people. “I also wish to tell Ebonyians that we have concluded plans to take the struggle for their liberation to the Supreme Court. “We must say that the ruling has not dampened our vigour in ensuring that our people are liberated.”

Akpabio defends budget KWA IBOM State Governor Godswill Akpabio has explained whyN66 billion was allocated to Recurrent Expenditure in the budget. Akpabio said the amount did not only include salaries and allowances to civil servants but also N100,000 increment to permanent

From Kazeem Ibrahym, Uyo

secretaries who retired before 2007 and payment of 20 per cent increment to pensioners. The governor said this at the weekend during the swearing in of a new permanent secretary, Mrs. Bassey Ben Eshiet.

THE NATION MONDAY, JANUARY 9, 2012

NEWS

OREIGN embassies are worried over likely security breaches today as Labour begins an all-workers strike. The United States Embassy foresees a possible escalation of the peaceful action by workers into violence. The British High Commission has asked its citizens to maintain a low profile. It was learnt that the embassies have been concerned, following speculations that Boko Haram members might participate in the mass action. It was gathered that the situation in the embassies became aggravated, following rumours that Boko Haram had imported three vehicles to be part of the strike. A highly-placed source in government, who spoke in confidence, however said there is no cause for alarm. He said: “There have been enquiries from some embassies but the government has been able to allay their fears that Nigeria is not on the edge. “We have done our best to relate with the embassies and assured them of adequate security. In fact, security has been beefed up in all the embassies. “The government will also not allow the situation to degenerate in all the 36 states and the FCT.” The Police Public Relations Officer of the FCT Police Command, SP Jimoh Moshood, said: “The matter of alleged importation of three vehicles by Boko Haram was raised on Saturday but there is nothing like that. We want the embassies and all Nigerians to disregard it. “Already, about 15,000 policemen have been put on standby to protect lives and property during the strike.” Notwithstanding, the US Embassy said it is suspecting that the strike action may degenerate from a peaceful protest to a violent as the case was in 2003. In an alert, it urged Americans to avoid areas of protests.

Achebe, Soyinka, Clark urge rethink of subsidy withdrawal

U.S., UK issue alerts The alert reads: “The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have called for a nationwide strike beginning Monday, January 9, to protest the Nigerian Government’s decision to end the subsidy on gasoline. Other civil society groups may organise protests to coincide with the general strike. Protests and demonstrations varying in size and disruption have already occurred in parts of the country as a result of the decision to end the subsidy. “We remind U.S. citizens that, even though organisers state their intent to stage peaceful strikes and protests, there is the potential that some events may become confrontational and escalate suddenly into violence. We therefore urge U.S. citizens to avoid areas of such protests and to maintain low profiles. Citizens should monitor news reports regarding the location of demonstrations. “During the general strike, U.S. citizens should expect closure of many shops, gas stations and banks. Such protests may also delay or halt delivery of gasoline. Because of the potential for gasoline and food shortages, U.S. citizens should conserve fuel, avoid unnecessary travel, and ensure that they have sufficient food supplies. “U.S. citizens should ensure that they have sufficient food, water, and fuel to last at least three days in the event that protests cause the temporary closure of stores and suspension of other services. Both domestic and international air travel may also experience disruptions, and we encourage air travellers to confirm their flights in advance. Protests may also affect ground transportation, including on roads between international airports and major cities, and additional police checkpoints will likely appear on many roads. “A similar general strike in July 2003 seriously disrupted

public transportation and caused cancellation of some domestic airline flights. Protestors also blocked roads in and around Abuja and in other areas. Demonstrations occurred near government offices in Abuja. Police responded by clearing the blocked roadways. In some instances, police used tear gas to disperse demonstrators. “Please review your personal security plans, remain aware of your surroundings, including local events, monitor local news stations for updates, and report specific incidents of targeted violence to the U.S. Embassy in Abuja or the U.S. Consulate General in Lagos.” The British High Commission asked its citizens to maintain a low profile attitude. It said: “There have been demonstrations and rallies in most Nigerian towns and cities against the removal of the petrol price subsidy, which took effect on 1 January 2012. Some of these have resulted in clashes between the police and demonstrators. You are advised to avoid all such demonstrations. “Nigeria’s two main trade unions, the Trade Union Congress and the Nigeria Labour Congress, have called an indefinite general strike, starting from Monday 9 January 2012, to protest against the removal of the subsidy. The declared aim of the strike is to close all offices, airports and seaports, banks, markets and petrol stations. “As part of their strike announcement, the trade unions have advised people to stock up on food and water, and also warned that banks and petrol stations will be closed. You may wish to consider stocking up on food, water, fuel and cash before Monday. Should political tensions mount, we advise you to keep a low profile, stay alert to local developments and stay away from areas of sensitivity, including large gatherings of people.”

•Soyinka Continued from page 1

no longer be wished away. BOKO HARAM is very likely celebrating its first tactical victory: provoking retaliation in some parts of the nation. “We insist however that this need not be, and should not be so. And as long as any part, however minuscule, opts for the more difficult path of envisioned forbearance, we are convinced that its responses will find neighbour emulation between homesteads, between towns and villages, between communities on all levels and indeed - states. This hard, demanding, but profoundly moral and heroic option will be recognised and embraced as the only option for the survival, and integrity of the whole. All who claim to be leaders must lead – but in the right direction! “We urge a proactive resolve in all such claimants to leadership. It is not sufficient to make pious pronouncements. All who possess any iota of influence or authority, who aspire to moral leadership must act now to douse the first flickers of ‘responses in kind’ even before they are manifested, and become contagious. We urge that, beginning from now, leaders become true leaders in all communities, utilise the platforms of their associations, professions, clubs, places of instruction and places of worship, NGOs and other civic organisations, that they relentlessly spread the manifesto of Community – capital letters! as an all-embracing human bond, and refuse to be sucked into the cauldron of mutual at-

‘Boko Haram has infilterated govt, military’ Continued from page 4

arm of government, some of them are in the parliamentary/ legislative arm of government while some of them are even in the judiciary. “Some are also in the armed forces, the police and other security agencies. Some continue to dip their hands and eat with you and you won’t even know the person who will point a gun at you or plant a bomb behind your house. “That is how complex the situation is. Our security services are trying because as the President, I know what they are doing. Nigerians may not appreciate their efforts especially when you know that we are under policed. We have a police force that is about 300,000 in number. “Countries that have the kind of challenge that we have today who have about 20 per cent of our population have five times more than that number. That number would have been okay some years back but definitely not the number that can cope with the security challenges we have now. “I assure Nigerians that we shall get over it. We are meeting everyday and we are planning. We are going to increase the strength and the capacity

of the security services to confront the modern challenges we face.” Jonathan identified greed and selfishness as the twin evil facing the country. He described corruption as only a symptom of the two. He pointed out that a combination of greed and selfishness would make a marketer to smuggle government’s subsidised petrol to neighbouring countries, adding that the two evils are not limited to government functionaries only. He reiterated his position that though Nigerians might suffer a little, the nation would get to the promised land. In his sermon titled “Patriotism at its height”, Primate of the Church of Nigeria, Anglican Communion, Most Rev. Nicholas Okoh, said though the nation is passing through trying times, the total loyalty of members of the armed forces remained the only asset available for the President. Okoh, who decried the lack of patriotism in the country, linked the prevalence of corruption and insecurity to lack of patriotic zeal. To tackle the problem, he urged the Federal Government to give the mandatory one year youth service a major overhaul

by adding full military training for three years. He argued that a full military training of less not than three years would go a long way in firing up sense of patriotism in the youth. Okoh who regretted the role some Nigerians were playing with their inflammatory remark, urged them, especially politicians, to desist from causing confusion in the polity through their utterances and actions. Okoh said when there is peace, the job of the military becomes less hazardous. “The Nigerian civil war ended 41 years ago, so we now have some professors, judges, national assembly members, prominent people who are post-civil war children. Some of them tend to romanticise with war, war is extreme madness and a great social evil. “Patriotism demands that we all speak, work and pray for peace in our country. It is therefore very important for men, women, innocent civilians, military and all to work for peace. On the recent killings of Christians inside churches in the Northern part of the country, the Bishop said the killings were not only unpatriotic but also sinful acts.

trition that is the purpose of the religious warmongers among us. “What is proposed here is not any doctrine of submission, of ‘turning the other cheek’, or supine supplication to divine intervention etc. etc. Very much the contrary! Self-defence is a fundamental human right and responsibility. However, we caution that we must place the total humanity of our nation above the methods and intent of a mindless, though programmed minority that are resolved to set religion against religion, community against community, destroy the internal cohesion of homes, render meaningless the very concept and imperatives of guest, strangers, the extended human family, and the universalist obligations of hosts as practiced under the finest traditions of human encounters. Our duty is to denounce the killers among us, to deny them, right from source, the sump of blood that is their nourishment, the chaos that is their ambition, and the hatred that has poisoned their collective psyche. Our mission is to prove ourselves superior to them in understanding, to leap ahead of their perverse scheming and preserve our own humanity even as they jettison theirs – if ever they even were aware of its existence. “Calls have been made in the past - sometimes in response to a crisis within the nation, other times as an objective necessity even in the most tranquil of times - for the convening of a National conference to debate just how the nation should proceed in reinforcing civic and political life, and decide, in full freedom, the terms of her integrated existence. The government is urged to stop shying away from this project, pretending that those who happen to have been elected into the nation’s legislatures are best qualified to undertake the exercise, largely through piecemeal tinkering. This surely begs the question, since the very system and terms under which these – often dubiously – elected, serve, including the intolerable strain these institutions place upon the nation’s resources - are all at issue. That last indeed, the very inordinate exaction of running a presidential system, forms

part of the impatience of the public, as new avenues for economic hardship are opened in a people’s struggle for survival, such as the recent crisis of the removal of petroleum subsidy. We call upon the government to re-think this measure. We warn the Security forces to recall that their primary duty is to protect all citizens, and most especially those in opposition to government policies, in the exercise of their democratic rights. We cannot turn a blind eye to the killing of our fellow citizens even before the earliest manifestation of popular discontent gets under way. The first single Security notch on the gun is always the signal for a countdown towards two, then three, moving to four figure statistics in the struggle for human dignity. Syria is our current cautionary instance. We know how Libya ended. “The Security arms of government should recognise where their urgent and immediate capabilities and competence are needed, where the greatest threat to nationhood since the Nigerian Civil War has been gloatingly launched, and with a daily toll of casualties of the innocent. We call upon the Nigerian government to intensify its obligations to protect the citizenry it claims to govern. The basic professional strategy of preventive policing, which appears no longer in fashion, must be re-activated. Security may appear less glamorous than the moral imposition that is articulated in appeals such as this, but it is nonetheless a crucial partner in the very existence of civil existence and the preservation of civic dignity. Necessary measures to curb the activities of a homicidal few, no matter under what name, faceless or disguised, whose minds have been warped beyond recovery, must be taken, and without flinching. Public evidence of the effectiveness of such measures makes our call for restraint meaningful. It reduces the stress placed daily on a people’s aspirations to a visionary fortitude, and reinforces the resolve for an engagement under forbearance in the ultimate pursuit of social justice as the foundation of peaceful coexistence.”

Reps advise Executive to suspend subsidy removal Continued from page 4

•Dr. Jonathan

“The next thing is that it is an unpatriotic act, a religion sin to spray fellow citizens, innocent people with bullets in the church in order to express one’s grievances. It is not the behaviour of decent people anywhere in the world. “Those politicians who justify killings in order to gain cheap political points, are unpatriotic to that extent. If anybody has anything to say, he should say it in a way that he will be listened to and his grievances will be addressed. Okoh observed that it was becoming more difficult to govern the country because of lack of confidence and scepticism which corruption had caused.

submission as a result of the overwhelming rejections from their colleagues. Some asked for protection from the Speaker before they could complete their submission. Majority of those against the motion spoke with the belief that they needed to be heard and remembered that they were in support of the government’s decision to remove the subsidy now. When one of the pro-subsidy removal lawmakers, Warman Ogoriba (PDP, Bayelsa) began his argument, he was shouted down. The Speaker intervened just as he was forced to with every one of the pro-subsidy removal supporter. He said: “We need to be more sober at this session and appreciate the sacrifice all of us have made to be here. Let us please not distract any speaker recognised; let us listen and when it is time to vote, we express our decision”. Ogoriba went on: “Having studied the mood of the House and know the direction of the

House but I need to speak and be heard. No right thinking President will want to visit hardship on those that voted for him. The President loves the country, came out and said if not removed, the country would collapse. All arguments are not against removal; rather, they are saying it is not yet the time. (Shouts of nos) Other lawmakers who defended subsidy removal include House Leader Mulikat Akande-Adeola (PDP, Oyo), Nado Karibo (PDP, Bayelsa), Yakubu Barde (PDP, Kaduna), Arua Arunsi (PDP, Abia), Seriake Dickson (PDP, Bayelsa), Sekonte Davies (PDP, Rivers), Ndudi Elumelu (PDP, Delta), Andrew Uchendu (PDP, Rivers), Ini Udoka (PDP, Akwa Ibom), Asita Honourable (PDP, Rivers) Mohammed Ibrahim Idris (PDP, Kogi), Joseph Akinlaja (LP, Ondo) and Friday Itulah (PDP, Edo) The motion was overwhelmingly adopted. The ad-hoc committees are to meet with the Secretary to the Government of the Federation (SGF), Minister of Labour and other stakeholders tomorrow.

THE NATION MONDAY, JANUARY 9, 2012

NEWS

•From right: Chief of Defence Staff, Air Chief Marshal Oluseyi Petinri; Chief of Army Staff, Lt.-Gen. Azubuike Ihejirika and his wife; with Director-General of State Security Service (SSS), Mr. Ita Ekpeyong (second left) and his wife at the service...yesterday. •President Goodluck Jonathan (second left) and his wife, Patience (left), Senate President David Mark and his wife, Helen, arriving for a church service for this year’s Armed Forces Remembrance Day celebration in Abuja...yesterday.

•Ondo State Governor Olusegun Mimiko (left); his wife, Olukemi; Chief Judge Ondo State, Justice Olaseinde Kumuyi and his wife, Cecilia, at this year’s Armed Forces Remembrance Day celebration at the Apostolic Church, Akure...yesterday.

Anxiety as man disallows church’s security check

N attempt by suspected Boko Haram members to allegedly bomb the Kaduna headquarters of Living Faith Church was yesterday averted when a Peugeot 406 salon car suspected to be carrying explosives was intercepted by the church security during a service. The Nation learnt that at

From Tony Akowe, Kaduna

about 8am, when the church was observing its first service, the vehicle drove into the church premises, beating the security checks at the entrance. The car had allegedly reached the centre of the church’s premises when some of the security men accosted the driver. Sources in the church said the driver was ordered to take the vehicle to the parking lot, but he was said to have refused. He insisted that he would not move the car from the position he had packed it. It was learnt that an argu-

ment ensued between the driver and the church security, who accused him of avoiding security check at the gate. The driver was ordered to open the booth of the car for check. “At this point, while the church security men were trying to open his car booth, the driver zoomed off in full speed and forced the car out of the main gate, breaking the iron bar at the gate. Those around the entrance threw stones at the car, which broke the rear wind screen. But the driver escaped. He was, however, chased with another car,” the source said.

Fleeing Nigerian beggars convicted in Ghana

NSECURITY due to sectarian fighting in some parts of Nigeria and the government’s decision to remove subsidy on fuel, which has had some rippled effect on prices, has compelled many Nigerians to flee to neighbouring Ghana to seek greener pastures. The latest to join the exodus is a group of a beggars whose luck however run out, as they were arrested on arrival at the Ghanaian border town of Aflao as undesirable immigrants. Numbering five, the beggars were put before an Aflao Circuit Court, and were ordered to be deported back

home. The court also imposed a fine of 12 Ghana Cedis (Ksh630) on each of the beggars who pleaded guilty to engaging in prohibited immigration. The five beggars, Nura Kasum, 70, Sali Abdul Karim, 70, Abdul Hamidu, 50, Hamadu Rufia, 65, and Tasir Issaku 60, were accompanied by seven dependants. Police prosecutor, Mr Michael Akemo, told the court that the 12 claimed they were from Kano in northern Nigeria, and had decided to travel to Ghana to escape harsh economic conditions that had engulfed Nigeria.

THE NATION MONDAY, JANUARY 9, 2012

www.thenationonlineng.net

MONDAY, JANUARY 9, 2012 TRUTH IN DEFENCE OF FREEDOM

VOL.7, NO. 1,002

TOMORROW IN THE NATION ‘If you want quality education and do not put the necessary facilities in place - laboratories, libraries, teaching aids - the quality of education will not improve’ CHIEF AFE BABALOLA

C OMMENT & D EB ATE EBA

HERE is nothing dramatic about the mien of President Goodluck Jonathan. He looks meek, gentle and incapable of invoking the wrath of God or man. Perhaps that was why the clergy, in their misguided spirit to anoint a leader, laid hands on him and poured him blessing after blessing when he ran for president. But today, few call him the Lord’s anointed. Few pastors come to Jonathan with the wrath of Jonah. Rather, they are wrapped in holy silence. But the streets rumble with the wrath of the people. Was it not the Bible that said when the wicked is in power the people perish and when the righteous reign the people rejoice? Is any pastor on the pulpit invoking scripture? No one is talking of good luck these days since the price of things leapt giddily. In our hearts, we have distinguished between good luck and Goodluck. The quiet man seemed to have cast a spell on both priest and people. Was it not the case of the blind leading the blind, with both of them heading for the ditch? You can fool some of the people some of the time, crooned Abraham Lincoln, but you cannot fool all the people all the time. Within one week of the last begotten year, the graphic story of the Jonathan presidency was engrafted on history. On Saturday, December 25, 2011, we had a bomb blast. On January 1, the next Saturday, we had another blast. The first bomb blew up at the instance of the shadowy group called Boko Haram and made a lot of sound. The other bomb came from President Goodluck Jonathan and it also made a lot of sound. It was the removal of the so-called fuel subsidy. The December sound was from shrapnel and led to buildings collapsing, cars exploding, trees snapping, feet scampering for safety, human flesh smearing as bones cracked. The January 1 blast was the groan of the people. The December blast was to celebrate the birth of a saviour, but many did not see salvation, like part and whole families wiped out. Remember the case of Mrs. Williams Dike, whose husband and five children perished in the inferno! The perpetrators of both blasts believed they wanted to save the people: Boko Haram on behalf of God, and Jonathan on behalf of his cronies and political elite. Jonathan would say he did it on behalf of the people. In both, the people did not see any salvation, only the perpetrators have the eyes to see. The first blast was tangible and the second metaphoric, but the effects are real and devastating to the people. But which of these blasts is worse? It makes no sense comparing. But what is terrible though is that the Boko Haram people did not seek the consent of the people. Jonathan barnstormed the entire nation, soliciting votes and promising transformation, although it was more a gimmick and catch word than intention. The people’s fortunes have been transformed from stark poverty to deeper distress. Jonathan left the more important issues to

SAM OMATSEYE

IN TOUCH

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

A tale of two blasts

•Dr. Jonathan

make unforced errors. Jonathan’s treachery was to assure Nigerians two things he did not fulfil. One, that the date for removal of the socalled fuel subsidy had not been fixed. Two, that the removal would come with palliatives. He was holding consultations, sponsoring Town Hall meetings and presidential chats. But like a thief in the night, and a serpent with a chameleonic love for green grass, he struck when Nigerians were not looking. He bit us in the middle or afterglow of merriment. He struck us without palliatives. Nigerians are suffering. Costs have soared of the basics: transport, food, medications, etc. The Nigeria Labour Congress (NLC) leader, Omar, said the President warned that he would remove the subsidy even if they shoot him. Finance Minister Ngozi Okonjo-Iweala wailed why we should bother about the removal, when 70 per cent of Nigerians trek. Just like Marie Antoinette, wife of Louis the 16th, who was reported (though falsely) to have wondered why French people would not eat cake since bread was not available. The minister, who claimed to be an economist, did not understand a critical branch of behavioural economics. She should understand that a policy has effect beyond those originally targeted. So a

policy on aviation can spin off to a maker of cosmetics. This is the sort of people around the president. The minister does not understand the Nigerian economy because she does not understand Nigerians. She should return to her IMF and World Bank crowd. Now, the palliatives. Jonathan said they would include provision of loans, jobs, buses, erecting of infrastructure, etc. At the weekend, he cut the wages of political office holders by 25 per cent. All of these show the President was focused on the so-called fuel subsidy removal and not the impact on the people. How long does it take to build infrastructure? Years. How long will it take to get the loan to those who deserve it? No one can tell since they will just begin that process. The persons will register their names, claims will be verified, guarantors processed, money approved and disbursement, etc. How many routes can 1,600 buses cover in Nigeria? We know slashing politicians’ pay means nothing. They make money through other means. He is now asking ministries to cut cost. Let him begin by slashing his N1 billion bill for Aso Rock entertainment and food. The Kolade committee will have to worry over its legality, as no law supports entrusting the money from the federation account to any group arbitrarily constituted by the president. While all the palliative work is in progress, the people will suffer. Those who will die will die, those who cannot afford two meals a day will have to survive on one, those who cannot afford medications will seek shelter under quacks and die, those who cannot afford transport fares may not even go to work if they have one, etc. If and when the palliatives come, they will come over corpses. The operation would have been successful, even if the patients have long been buried. The president cannot manage the bomb he imposed on us. Tragically, he cannot also manage the bomb Boko Haram imposed as well. He declared a state of emergency on four states; everywhere, soldiers, tanks, weapons, border patrols, etc. Yet, bombs went off, Deeper Life

HARDBALL

worshippers suffered T.S. Eliot’s murder in the cathedral. Southerners are leaving town. I warned about this in this column only last week. The declaration of a state of emergency would not work, I warned. The state of emergency ought to be declared on the security services, who are as clueless as he is, and an economic team, which needs to take a course on the Nigerian economy, with emphasis on the Karl Polanyi school of economic anthropology that emphasises society over textbook rigidities. French leader Clemenceau once said war was too important to be left in the hands of generals. Jonathan should heed that in the war on Boko Haram. He should get to the root, using consultation, friendship with those aggrieved over zoning and the last elections. It is after resolving these that generals matter. One of the reasons that the Cold War thawed between the U.S and the Soviet Union was the initiative from President Nixon to undertake visits with Soviet leaders. Even though tensions persisted, such meetings forbade World War fears until the USSR fell. When walls collapse between enemies, better understanding occurs. During the 1982 world economic recession, Henry Kissinger invoked Clemenceau and wrote that the economy was too important a matter to be left in the hands of economists. So, Jonathan should see what the others are saying rather than hold on to a strait jacket of unpopular policies.

Governor Sylva, PDP and the Court

HE Court of Appeal ruled on Saturday against the PDP, over the high court injunction on the military-style Bayelsa primary that crowned Seriake Dickson as its candidate. This ruling exposes what I have affirmed in this column: that Jonathan acted as a snake in the politics of the state. While denying he knew anything about it, his army, police, air force and navy presided over one of the worst acts of electoral brigandage with official fiat in our history. When he should have focused on more important matters, he fished in the troubled waters of his state. Pastor and political elite anointed him openly as presidential candidate last year. In his own case, Jonathan, by stealth, anointed Dickson as a candidate of lawlessness and impunity, and only in a jungle can the so-called primary stand. It was a primary of barbarous proportions. I called him His Excellency the Snake over the Bayelsa matter, but we now know I was right. See how serpentine he has been by sneaking in the oil subsidy removal. We shall see in the coming weeks whether the plot against Governor Sylva can hold legal water.

•Hardball is not the opinion of the columnist featured above

The continuing misapplication of the Governors’ Forum

S the countdown to the general strike action called by the Nigeria Labour Congress (NLC) began on January 3, and horse-trading in principles also followed hard on its heels, many groups and associations, including the Federal Government, started to morph considerably. This is not a new phenomenon in Nigeria’s arid ideological terrain, where the little that remains of character and principles are sold and bought with no compunction. As the January strike date neared, the Federal Government itself became more definite in listing its palliatives. It even announced it had bought 1,600 buses to ease mass transit difficulties. But overall, it stuck to its gun of removing fuel subsidy, which it said it had to do in order to stave off the impending collapse of the economy. The Road Transport Employers Association of Nigeria (RTEAN), after pussyfooting for a while, has thrown in its lot with the government. The government in turn proudly accepted that

hand of fellowship and publicised it on television. But the group that has morphed the most is the Nigeria Governors’ Forum (NGF), an extra-constitutional and informal umbrella body of Nigeria’s 36 governors. First, it did not speak with one voice in the days before the government firmed up its determination to do away with subsidy. Then, after it was apparently lobbied by the Federal Government, perhaps with statistics and a long list of the revenue goodies that would follow, the governors began to speak with one voice, irrespective of their political parties and ideologies. But as the countdown to the strike action began, and after a few political parties had declared their unrepentant opposition to subsidy removal, some of the governors backed out of the subsidy column. Their vacillation made a weary President Goodluck Jonathan groan that some governors and political parties had politicised the plainly eco-

nomic issue after initially promising to support the measure. Now, finally citing some ideological principles, the Action Congress of Nigeria (ACN) governors who met in Lagos on Saturday have given an interestingly intellectual opposition to subsidy removal. “In our view,” said the ACN governors with a show of impressive profundity, “the debate on fuel subsidy is a narrow one. Subsidy is a financial and economic tool, not an end in itself.” Hear, hear. But they were not done. According to them, “We are more concerned about the totality of the economy. For this reason, it is imperative to immediately implement the long-standing demand for fiscal federalism. The first step in this direction is the immediate review of the lopsided revenue allocation formula.” Whichever way they took to get to the reassuring destination of siding with the people, and whether it was deeply reflective, intellectual or qualified, it is good to have them on the side of those

who voted them into office. The NGF itself, as the split over subsidy across party lines shows, is an anomaly. Even when it was constituted by an overwhelming majority of PDP governors, it was still a redundant extra-constitutional organ that overreached itself during the heady days of the late President Umaru Yar’Adua’s prolonged illness. Now that the NGF is a little better diversified, it is proving even more redundant. No governor, not the least the ACN governors, should feel uncomfortable that the body has not achieved unity or compromise in the face of the subsidy crisis. It is unlikely that the fuel subsidy issue was politicised anyway, but even if it was, there is nothing wrong with doing so. The NGF, if it must exist, should concern itself with lofty constitutional issues that cut across party lines and ideologies, not concocting consensus over mundane matters. As it is constituted and run, it has the body of union and the soul of a cartel.

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