The Nation July 16, 2012

Nigeria’s widest circulating newspaper

$620,000 bribe: Lawan, Emenalo to face trial

•Police complete investigation

NEWS

Page 2 www.thenationonlineng.net

VOL. 7, NO. 2188 MONDAY, JULY 16, 2012

Flood sacks Ibadan community NEWS

Pages 9 & 12

•Govt: we prevented disaster

TR UTH IN DEFENCE OF FREEDOM TRUTH

N150.00

Oshiomhole: we’ve sent riggers out of business

•Oshiomhole (centre), celebrating with his supporters after the announcement of the result in Benin…yesterday

Joy as ACN candidate wins Jonathan, Mark, Tambuwal, Tinubu, governors happy From Joseph Jibueze, Precious Igbonwelundu Benin Gbade Ogunwale and Vincent Ikuomola Abuja

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DO State Governor Adams Oshiomhole has won a stunning second term victory, carrying the day in all the 18 local government areas.

The Action Congress of Nigeria (ACN) candidate defeated his closest rival, the Peoples Democratic Party (PDP) candidate, former SEE ALSO PAGES 4 - 8 & 19

Continued on page 2

SUMMARY OF RESULTS

PHOTO: NAN

THE FIGURES

477, 478 •Votes won

by Oshiomhole

144,235 •Votes won by Airhiavbere

630,099 •Valid votes

17,599 •Rejected votes

647,698 •Total votes cast

1,651,099 •Registered voters

•SPORTS P23 •CEO P32 •INSURANCE P39 •LABOUR P40 •MOTORING P45

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THE NATION MONDAY, JULY 16, 2012

NEWS States have no reason to go bankrupt, says Senator From Yusuf Alli, Abuja

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•Osun State Governor Ogbeni Rauf Aregbesola (middle); Oyo State Governor Senator Abiola Ajimobi (third right); Aregbesola’s deputy, Mrs.Titi Laoye-Tomori (second left) and the Chief of Staff to Governor Aregbesola, Alhaji Gboyega Oyetola (left), leading other executives and a sea of the people Osun during the Monthly Walk to Live Exercise for Healthy Living, at Ila Orangun...on Saturday. Story on page 12

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$620,000 bribe: Lawan, Emenalo to face trial

AROUK Lawan, the lawmaker in the centre of the cash-for-clearance scandal, is to face trial, The Nation learnt yesterday.

The former Chairman of the House of Representatives committee on Petrol Subsidy management allegedly collected a $620,000 bribe.

Sources said police investigation into the scandal has been concluded and the report of the Special Task Force (STF) will be sent to Inspector General of Police Mohammed Abubakar and Attorney General of the Federation Mohammed Adoke this week.

The lawmaker admitted collecting the cash from businessman Femi Otedola to,

From Yusuf Alli, Abuja

according to him, prove that the oil magnate mounted pressure on him to take the money and remove his company from the list of those indicted in the subsidy fund probe.

But Otedola said it was all a sting operation he undertook with security operatives following pressure on him by Lawan.

Lawan might be arraigned alongside the former Clerk of the Committee, Mr. Boniface Emenalo.

But the whereabouts of the cash remain unknwon. It may be resolved when Lawan is taken to court.

It was gathered that the STF, headed by CP Ali Amodu,

concluded its investigation after last week’s grilling of the Chairman of the House Committee on Narcotics, Drugs and Financial Crimes, Mr. Adam Jagaba.

It was learnt that after Jagaba’s statement on oath and the consideration of other bends of the investigation, the STF established a prima facie case against Lawan and Emenalo.

The audio and video tapes of the alleged bribe offered by Otedola and the proceedings of the House of Representatives have also made the trial of the two suspects a fait accompli, it was learnt.

A source, who spoke in confidence, said: “We have

concluded our investigation, we are compiling our report.

The key thing in this assignment is that we have established a case against Lawan and Emenalo, we have recommended them for trial.

“Therefore, they will face trial any time from now. The report will be presented to Inspector-General of Police Abubakar and AttorneyGeneral of the Federation, Adoke (SAN) this week.

“We took time to conduct this investigation to avoid any strain in the relationship between the House and the police. We succeeded in our operation, without any cold war.”

On the whereabouts of the bribe, the source said: “Lawan

did not make it available but the court will resolve the matter when the trial begins.

“None of the respondents has given clues on where the bribe is. This does not substantially affect our investigation, going by the tapes at our disposal.

“I think the weight of the evidence available to the police is enough for the prosecution of the suspects.

“We have done a tidy job; we are aware of the expectations of Nigerians and we want to prove a point that we have cracked this case.”

Lawan appeared before the STF on June 14, following Otedola’s complaint.

Jagaba denied being in possession of the bribe.

HAIRMAN of the Senate Committee on Federal Capital Territory , Senator Smart Adeyemi yesterday said states have no reason to go bankrupt.

He said state could be viable and prosperous if the governors look inward.

Adeyemi, who spoke in Abuja , claimed that all the states are endowed with natural resources that could make them self-sustainable.

He said: “I don’t believe that any state of Nigeria can go bankrupt because every state is endowed with human and mineral resources which remain untapped.

“If you ask any of the states what is the internally generated revenue, it is next to nothing because there is easy money to collect in Abuja .

“Because of corruption and misplaced priorities, many governors embark on white elephant projects. It is totally wrong to blame the Federal Government for poverty in the states because the allocations they now collect is triple of what they collected six years ago.

He cautioned states against blaming either the Federal Government or President Goodluck Jonathan for their poor financial position.

Adeyemi added: “States are now receiving three times what they used to receive but they don’t apply these funds for development and into areas that can yield further revenue apart from a few states. Local government system is dead.

“The Federal Government would release funds meant for local government but governors corner them and the local government chairmen in turn siphon what is released to them to foreign lands. You now see council chairmen owing properties in the US , UK and other countries.”

He said the lesson for Nigerians is to properly examine the calibre of persons they elect into public office in future elections.

Oshiomhole: we’ve sent riggers out of business Continued from page 1

soldier Charles Airhiavbere in last Saturday’s election.

Benin City, the capital of Edo State, was the scene of a huge carnival, yesterday, as thousands of ACN supporters defied the early morning rain to embark on a victory procession round the ancient city.

Oshiomhole, who later joined the victory lap round the city thanked the people for turning out en masse to vote for him.

The Governor said the “landslide victory” is a true reflection of the wish of the people.

He promised more development.

Oshiomhole said: “God has blessed our project, it is finished. Now is the time to give thanks to God that today, a Holy Sunday, the people of Edo State have spoken. Across Edo South, across Edo Central, across Edo North our people are united by a common desire to build a new Edo State. to consolidate on our projects and together to take Edo State to the next level.

“I thank you for standing on

Airhiavbere: why I won’t congratulate him yet

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EFEATED candidate of the Peoples Democratic Party, Gen. Charles Airhiavbere (rtd) said he would not congratulate Governor Adams Oshiomhole on his victory.

Airhiavbere, who polled 144,235 votes said Oshiomhole had earlier faulted the electoral process before his declaration as winner.

He spoke last night at his Benin City residence. Airhiavbere who thanked the people for their support, said it could have been easy for him to congratulate Oshiomhole but that Oshiomhole pre-empted the system that

your feet. On our feet, we shall fight for freedom; we shall never go on our knees. You young ones must remember that this fight was and is for your tomorrow. It’s for your freedom, your right to choose who governs you. We must make a statement that election riggers are out of business.

What we owe is to sustain the development programmes.”

Former PDP Board of Trustees (BoT) chairman Tony

From Osagie Otabor, Benin

brought him.

He said: “I won’t fully comment on the election because the acclaimed winner had earlier in the day at about 1pm condemned the electoral system. He condemned the chairman of INEC for the process that had not ended.

“That process at the end of the day declared him the winner. I will observe in the next few days before I make my comment.

“The election of yesterday (Saturday) has come and gone. I want to seize this opportunity to thank all the people of

Anenih, Chief of Staff to the President and former Deputy Governor Mike Ogiadomhe, Esama of Benin Chief Osawaru Igbinedion and Gen. Airhiavbere, all lost in their wards.

Benin City, the state capital and other major towns, such as Auchi and Ekpoma, erupted in celebration after the Independent National Electoral Commission (INEC) declared the result early yesterday.

President Goodluck

Edo State for coming out en masse to make yesterday’s exercise the most peaceful election ever experienced in Edo State. I also want to thank them for keeping faith with me. I want to seize this opportunity to thanks PDP faithful for coming to support me.”

But Chief of Staff to the President, Chief Mike Oghiadomhe, congratulated Oshiomhole.

Oghiadomhe, a former Deputy Governor of the State, described Oshiomhole’s victory as a confirmation of the maturity of Nigeria’s democracy and urged him to be magnanimous in victory.

Jonathan, the PDP national secretariat, the ACN, Senate President David Mark, House Speaker Aminu Tambuwal and Governors hailed the verdict.

Oshiomhole won with 477, 478 votes. Airhiavbere came second. He scored 144,235 votes. Chief Solomon Edebiri of the All Nigeria Peoples Party (ANPP) came a distant third, with 3,642 votes.

Congress for Progressive

Change (CPC) candidate Izevbuwa Roland scored 2,793 votes. Andrew Igwemoh of the Labour Party (LP) polled 604 votes.

Mr. Paul Orumwense of the National Conscience Party (NCP) got 540 votes. Prince Frank Ukonga of the Social Democratic Mega Party (SDMP) scored 807.

In all, 647,698 votes were cast; 630,099 were valid and 17, 599 were rejected.

There were 1, 651, 099 registered voters in the 18 Local Government Areas.

The Returning Officer, Prof Godwin Oshodin, who announced the result at about 8am, said Oshiomhole polled the highest number of valid votes and is, therefore, the winner.

A breakdown of the result is as follows: Akoko Edo: ACN (29, 803), PDP (13,783), ANPP (163), CPC (184), LP (38), NCP (36) and SDMP (65).

Egor: ACN (50,623), PDP (3,486), ANPP (294), CPC (281), LP (28), NCP (36) and SDMP (29).

Esan Central: ACN (11,792), PDP (9,281), ANPP (83), CPC (65), LP (23), NCP (30) and SDMP (34).

Esan North East: ACN (13,086), PDP (12, 478), ANPP (123), ANPP (77), LP (11), NCP (35) and SDMP (44).

Esan South East: ACN (14, 904), PDP (9,634), ANPP (85), CPC (61), LP (22), NCP (16) and SDMP (36).

Esan West: ACN (13,499), Continued on page 60

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THE NATION MONDAY, JULY 16, 2012

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THE NATION MONDAY, JULY 16, 2012

4

NEWS OSHIOMHOLE’S VICTORY

Residents defy rain to celebrate Oshiomhole’s victory •Massive crowd accompanies governor to mass • ACN supporters jubilate in Abakaliki •Why I doubted INEC’s sincerity, by governor

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ENIN City, the Edo State capital, was yesterday the scene of a huge carnival.

Residents and supporters of the Action Congress of Nigeria (ACN) defied the rain to celebrate the victory of the party in Saturday’s governorship poll.

Other parts of the state, especially Auchi, also erupted in jubilation.

The party secretariat on Airport Road was taken over by jubilant supporters who were singing and dancing.

Mr Johnson Okoduwa, one of the ACN supporters, said: “I do not know how to express my happiness. That is why I have chosen to come out, despite this rain, to celebrate.

“It has not been easy since the campaign started and up till now, God has done it for the people of Edo. “God will not allow Edo to return to the dark days again. Are you not seeing the roads Oshio Baba has done for us?’’

According to him, even a blind man can walk all by himself through the major roads in Benin.

“As an Okada man, I have withdrawn my children from private to public school and the money I’m making is now enough for us to feed,”he added.

Miss Adesuwa Godwin said: “My sister, please allow me to finish dancing before I answer your question.

“You are supposed to be dancing instead of asking us questions.

Are you not from Edo? If you are not, please join us to dance. We are all one.”

Some youths tore the banners of the Peoples Democratic Party’s (PDP) candidate, Gen. Charles Arhiavbere.

As they danced round the city, waving broom sticks, part of which they gave to other road users, some of the youths said they collected PDP’s money but did not vote for its candidate.

At Hon. Rasaq Bello-Osagie’s off Jemide Street residence, another crowd of ACN loyalists was jubilating.

The House of Representatives member told our reporter that his party’s landslide victory was an affirmation that Edo people cannot be fooled.

He said: “Edo people have spoken with one voice. They have made it very clear that across the length and breath of the state, the developmental strides of the Comrade Governor cannot be thrown away and their massive vote for him was a thank you for the good work.

“I want to thank the good people of Edo State for supporting democracy and recognising merit. I believe that all the forces that have always subverted the process of free and fair election have collapsed.”

According to Rasaq, the most satisfying thing was the way the masses at the polling centres were sensitive and observant.

He said: “It shows the people were really ready to go the extra mile to make their vote counts and that, to me, is a wake-up call for election riggers. Election should get better across the country.”

From Osagie Otabor, Precious Igbonwelundu, Benin and Damilola Owoyele

Mr. Osazuwa Blessing said she was happy because the opposition did not succeed “in their ploy to rig the election”.

At Arhiavbere’s residence on Boundary Road, the gate was locked. His domestic staff were sober.

All was quiet at the residence of the Esama of Benin, Chief Gabriel Igbinedion, a PDP chief.

Besides those dancing on the street, a massive crowd, including beggars and the physically-challenged , accompanied Oshiomhole and his Deputy, Dr. Pius Odubu, to St. Paul Catholic Church, Benin where a special thanksgiving was held.

The crowd joined Oshiomhole from the Government House to go through major streets dancing and sweeping the PDP away.

At the Kings Square, where Oshiomhole addressed the crowd, he promised to use the renewed mandate to do more.

Oshiomhole said the people spoke with one voice from Edo North through Edo Central to Edo South, adding that “Edo must move forward”.

He said the victory was given by God, adding that that was the reason he had to go to church to thank God. In his homily, Rev. Peter Oshomah said the number of votes and the crowd that came to the church was an indication that the people really want Oshiomhole.

Rev. Oshomah said: “The challenges of the governor has increased becaue to whom much is given much is expected. The Catholic faithful will continue to pray for him for more wisdom and guidance as he enters his second term. What we are doing here today is thanking God for the gift he has given us in the person of the Comrade Governor.”

A special prayer was offered for Oshiomhole and his deputy.

Auchi residents trooped to the streets in jubilation, dancing and waving ACN’s flag.

Some of the residents stormed beer parlours offering free drinks and food to celebrate what some of them termed as a major milestone in the politics of the state.

ACN’s Deputy Chairman Alhaji Usman Shagadi described the victory as the people’s endorsement of the good work done by the governor.

He said: “I am delighted; Oshiomhole worked for the state and no amount of money could have persuaded the people to vote against him. This is our own way of compensating him for a job well done.”

The member representing Etsako Federal Constituency, Alhaji Abubakar Momoh, said the victory was “a battle well fought”.

He said the victory had put to an end the divisive politics of ethnicity in the state and prayed that the entire country would learn from the Edo election.

Momoh commended INEC for conducting one of the freest elections in the country, saying it should serve as a lesson for politicians to always put the peoples’

interest ahead of any other consideration.

Momoh said: “If every election will be conducted like this, Nigeria will be among the nations where credible elections are conducted.

“This also shows that any political office holder who does not perform will be voted out of office as people are more conscious of the performance of politicians while in office.”

There was spontaneous jubilation in Abakaliki, the Ebonyi State capital yesterday following the declaration of Oshiomhole as the winner of the governorship election.

Members of the ACN in Ebonyi State and members of civil society groups converged at the Mile 50 junction, marching through Mgbukobe, Amike-Abba, Mile 50 road to Mile 4 Hospital. They sang victory songs.

They carried placards with inscriptions like, “Victory at last, Oshiomhole has done it again”, “Congratulation our Comrade Governor”, “Shame to PDP and her rigging machineries”, “ACN remains the people’s choice party” and “ACN will soon sweep away PDP in the Southeast and Southsouth” among others.

The governor, in a post-election interview on the African Independent Television (AIT), explained why he expressed doubt about INEC’s willingness to deliver free and fair poll.

He queried why INEC posted Ismael Igbani, whose past he questioned, to Edo State.

Oshiomhole said: "You should not allow a crime to be committed before you raise alarm. You should raise the alarm to prevent the crime.

"More than two months ago, I wrote to INEC about PDP's plan to make sure that voting materials would not get to Edo South, which has the largest population in Edo State. We had a meeting with Prof.

Jega; but he said that we didn't have proof.

"Accreditation of voters started early by 8 a.m. in my village. In Edo Central, materials arrived early and voters were being accredited by 8 a.m. But in Benin City where INEC office is situated, election materials did not arrive at polling units at 9 a.m., 10 a.m., 11 a.m., 12 noon.

When I asked INEC officials about the reason for the delay, they said that it was due to non-payment of dues to the NYSC ad hoc staff and also that they had problems with logistics.

"When I asked the REC about the issue, he directed me to his superior, Igbani, who is wellknown. Igbani told me that he was only in Edo to perform in the capacity of a figurehead. How could an INEC official come to Edo to function as a figurehead during election? When I tried to speak with Jega about this matter, he said he wouldn't talk with any candidate."

When asked why he wanted enquiry into the poor management of the election, despite a landslide victory, Oshiomhole said: " Yes I have won inspite of all these. But note that we have about 1.2 million registered voters in Edo. Only about 600,000 voted."

•Jubilant residents of Benin.... yesterday

•Oshiomhole and Senator Chris Ngige... yesterday

•Jubilant ACN supporters.... yesterday

It’s triumph of people’s will, says Aregbesola

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SUN State Governor Rauf Aregbesola yesterday described the victory of the Action Congress of Nigeria (ACN) in the governorship election in Edo State as a triumph of peoples’ will.

In a statement by his media aide, Mr. Semiu Okanlawon, the governor noted that the landslide victory of Governor Adams Oshiomhole at the poll is a demonstration of the people’s love for democracy and good governance, which he said the ACN exemplifies.

Aregbesola said the superlative performance of Oshiomhole’s administration has rescued the state from the precipice which the Peoples Democratic Party (PDP) dragged it during its almost nineyear reign.

The governor, who congratulated the Army for what he described as “open display of loyalty to the Nigerian Constitution” in its involvement in the election, said the ACN under Oshiomhole as governor has returned the state to the

From Adesoji Adeniyi, Osogbo

right path of social, political and economic growth and progress in the last four years.

Aregbesola said: “Today marks another watershed in the annals of our political history, electoral system and party politics. The massive supports he got from the people of his state clearly signposted the love the people have him, but above all their hope in democracy and good governance, a trait which the ACN epitomises in all the ramifications.

“I, therefore, implore people of other states to take a cue from Edo State, which is reaping the benefit of good governance and dividends of democracy, by voting for a party that is truly committed to the welfare and well-being of the people.

“I also urge the people of this country to take their destiny in their hands by voting ACN in the next general election if they intend to get purposeful leadership as it is being enjoyed not only in Edo but also in all other ACN controlled states.”

THE NATION MONDAY, JULY 16, 2012

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NEWS OSHIOMHOLE’S VICTORY

Tinubu: the people’ve triumphed Former Lagos State Governor Asiwaju Bola Tinubu has described the victory of Governor Adams Oshiomhole as a triumph of the people. Excerpts:

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•An elated ACN supporter... yesterday

•ACN supporters sweeping out PDP..... yesterday

The governor’s mother, Hajia Aishatu, at Iyamho, Edo State...on Saturday PHOTOS: DAYO ADEWUNMI AND NAN

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‘Be magnanimous in victory’

HE National Union of Textiles, Garment and Tailoring Workers of Nigeria and the Edo Indigene Forum in Kaduna State have congratulated Edo State governor and candidate of the Action Congress of Nigeria in Saturday’s governorship election, Comrade Adams Oshiomhole for his overwhelming victory at the polls.

They urged the governor to be magnanimous in victory and strive to improve on his performance.

General-Secretary of the Textile Workers Union and Vice-President of the Nigeria Labour Congress, Comrade Isa Aremu, said: “We congratulate the Comrade Governor of Edo State, Comrade Adams Oshiomhole and the good people of Edo State for the successful conduct of the gubernatorial election on Saturday July 14, 2012. We congratulate the Comrade Governor for his overwhelming victory and re-election. 73.72 per cent of the total votes cast is truly a landslide.

“We once again salute the people of Edo State as well as all the political parties in the State for allowing the electoral process to run through despite all the challenges including the initial slow service delivery by INEC. Contrary to the prophets of doom, Nigeria remains politically alive.

•‘Imoke proved wrong’

From Tony Akowe, Kaduna and Osagie Otabor, Benin

“Edo State had shown that Nigeria is indeed a democracy destination where votes can really count.

“The overwhelming victory of Comrade Adams Oshiomhole is also a vote for development politics as opposed to corruption politics of the past. We bear testimony to the activist governance by the Comrade Governor and his rapid transformation of the State particularly in areas of road construction, rural electrification, supply of portable water, health care delivery and re-invention of public schools among other remarkable achievements of the past four years.

“Truly, development politics is back. The people of Edo have shown that they are for development agenda and not corruption agenda.”

The Edo Indigene Forum, Kaduna branch said the victory of Oshiomhole shows that the people are happy with him.

In a statement by its spokesman,

Yakubu Osigbeme, the Forum appealed to all those who lost during the election to join hands with the governor for the overall development of the state.

National Youth Leader of the Action Congress of Nigeria, Comrade Mikiri Ebikibina, yesterday said Governor Adams Oshiomhole has proved Governor of Cross River, Liyel Imoke wrong.

Imoke had during a campaign rally of the PDP vowed that PDP Governors in the Southsouth would ensure Edo State is returned to the PDP. In a statement, he said the people have demonstrated that their votes can count to decide who governs them.

Ebikibina said: “This victory no doubt is a pointer and a watershed rallying point to the South south geopolitical where the governor’s victory has proved Governor Liyel Imoke wrong that performance is measure by one’s visionary leadership and the ability to provide the dividends of democracy and service delivery to the people.”

Y handing Comrade Adams Oshiomhole an overwhelming victory in Saturday’s governorship election, the people of Edo State have served notice that “never again” in their state will the public’s mandate and right to pick the leaders of their choice be stolen.

I have talked to Governor Oshiomhole to congratulate him on this historic victory but I want to use this opportunity to formally and publicly commend him. I will also have you know that during our conversation, Governor Oshiomole did not boast or talk arrogantly. He understands the weight of the moment and that now, even more than during his first term, he must do honor to the trust the people have placed in him. He promised to be an even better servant of the people during these next four years. Governor Oshiomhole represents a break with the old. He represents a new brand of dedicated, intelligent and industrious leadership. He symbolizes the democratic mindset, the progressive ideals and the strong work ethic of the ACN. This election was about more than Governor Oshiomhole and Edo State. It was a contest pitting democracy and the people on one side against the powerful and corrupt ruling political elite on the other. As such, this victory signals a new chapter in our democratic struggle.

Try as they might, this elite employed every old election rigging trick and invented some new ones.

It deployed the behemoth weight of government and party to break the democratic aspirations of the people of Edo State. However, the people stood firm because they know the difference between democracy and despotism, between economic development and economic depression, between justice and injustice.

The people demonstrated that where they stand united and vigilant the powerful and mean cannot dispossess them of their democratic rights. The people stood defiantly and democratically in the public square asserting their political rights and freedom. In the face of this popular demonstration, the powers that be were forced to retreat into the caverns and shadows of their political trickery and greed.

As such, this result also signals a new phase in the electoral battles yet to come. The people of Edo have shown that the popular will can bet

vested interests when the people organize and to cast and then protect their votes. However, even amid today’s celebration of this democratic victory, I must speak a word of important caution. The political chicanery of the PDP has lost a major battle. Yet, the war is not over.

They will regroup in their shadowy chambers and seek new more devious and effective ways to kidnap the people’s mandate in upcoming elections.

It is for people of other states to now take heart and learn lessons from what the people of Edo achieved. Edo has taught us we can have democracy if we want it badly enough and if we organize to defeat the machinations of those who would rather lord over rather than serve us.

The people of Edo have again given life to the words that the price of freedom is eternal vigilance. We owe it to ourselves and the future of this nation, not to let this lesson go to waste. Thus, we celebrate democracy’s triumph in Edo but we shall also not lower our guard because we realize that anti-democratic forces still lurk underfoot Once again, I join the Comrade Governor to thank the people of Edo for a new four-year mandate that was freely given. I thank and congratulate the members of our progressive and people-oriented party, Action Congress of Nigeria for their support, vigilance and courage. Our members stood their ground against harassment and did not succumb to the electoral manipulation of the PDP. I also want to register a plea with INEC. Despite the resources at its disposal, INEC fell short once more. The rightful outcome was reached only because of the people’s diligence and was reached despite INEC obvious shortfalls.

True, a few of INEC’s staff demonstrated professionalism but for the most part, INEC performed well below standard. Everywhere it fell down, its failures seemed to benefit the PDP. This pattern is more than unfortunate coincidence. With each election, INEC loses credibility as an impartial referee and looks more like a subsidiary of the PDP. INEC must mend its ways quickly.

If it continues to degenerate into a subservient arm of the PDP, INEC will place democracy and civil order in dire jeopardy.

ACN salutes ‘people power’ in Edo

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HE Action Congress of Nigeria (ACN) has hailed the courage and determination of the people of Edo State for re-electing Governor Adams Oshiomhole.

In a statement yesterday by its National Publicity Secretary, Alhaji Lai Mohammed, the party said the people of Edo State have shown that true sovereignty lies with the people.

The party said: ‘’The courageous and determined people of Edo State refused to be intimidated by the massive deployment of security forces by the PDP-controlled federal government. They overcame the shenanigans of a colluding INEC and rendered irrelevant the dirty tricks of misguided moneybags. In the end, they shut out the do-nothing PDP.’’ ACN said the people reserve the inalienable right to choose those who will lead them.

The statement reads: ‘’But perhaps the biggest lesson for the PDP and its bunch of election manipulators, led by one Mr. Fixer who has now been fixed for good, is that no good advert can sell a bad product - which the PDP has become in Nigeria. ‘’The PDP went into the election with a huge war chest, backed by all the big names that included the President, his deputy, ministers and other top government officials, and still lost to the ACN, which could only muster its party machinery and showcase the good works of its candidate in his first term. This shows that the so-called federal might is only useful if it can bring prosperity to the people. ‘’The message that has been sent to the PDP by Edo voters is clear and unambiguous: Nigerians are ready and eager to send you packing from many more states and the central government in 2015, irrespective of the amount of dirty funds at your disposal, or the number of security forces you may deploy, because you have failed in meeting the hopes and aspirations of the people. We want to hand over the reins of power to a party with a record of performance.’’

THE NATION MONDAY, JULY 16, 2012

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NEWS OSHIOMHOLE’S VICTORY Firm asks court to jail Jega, others

NLC: a victory foretold

By Eric Ikhilae

From John Ofikhenua, Abuja

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HE Nigeria Labour Congress (NLC) yesterday said Edo State Governor Adam Oshiomhole’s victory is a lesson for politicians that the will of the people must prevail.

In a congratulatory statement entitled: “Edo verdict: victory foretold”, NLC President Abdulwahed Omar said: “For all those who have followed the twist, turns and the macabre designs put on Oshiomhole’s path at the height of campaigns, this victory is not only a triumph of light over evil forces, but a victory foretold.”

He, however, lauded the Independent National Electoral Commission (INEC) for rising up to the challenge and conducting a free and fair election.

The Congress acknowledged the role of security forces who stood by to protect lives and property.

But to the re-elected governor, Omar said: “We urge our comrade governor to see this victory as a challenge to consolidate on the gains made in the last four years and expand his horizons.”

The NLC boss said the election was a victory of performance, dynamism in governance and a determination to deliver the people from graft, greed and impunity.

He added that Oshiomhole, despite all odds, trounced his opponents by a landslide victory to be returned as governor.

His words: "While he clinched 75 per cent of valid votes cast with 477,478, the Peoples Democratic Party candidate garnered only 144,235 votes.

“Comrade Oshiomhole did not only win the overall votes cast, but overwhelmingly won in all the Local Government Areas in Edo State.”

He described it as “a triumph of people power and a true reflection of their will.

“We congratulate Oshiomhole,workers, youths, women, professionals, informal sector workers, the unemployed and the aged in Edo State, who defied the ordeals and trauma to give victory to truth and justice in our country.

“It is a victory well deserved for the people and a triumph of democracy in our country.”

Ogun ACN hails voters From Ernest Nwokolo, Abeokuta

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HE Action Congress of Nigeria (ACN) in Ogun State has praised the electorate for offering G o v e r n o r A d a m s Oshiomhole another opportunity to serve them.

The party, in a statement by its Publicity Secretary, Sola Lawal, described Oshiomhole’s victory as a consolidation of the broom revolution.

“We have witnessed a resounding concretion of the political journey of a people which was truncated by rigging but restored through judicial process.”

•The Returning Officer for the election, Prof Osayuki Oshodin, announcing the result ...yesterday. With him are Independent PHOTO:NAN National Electoral Commission (INEC) officials

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Obi, Imoke, Akume, others greet Oshiomhole

HAIL of tributes has greeted governor adams oshiomhole’s victory in last saturday’s election Hailing Oshiomhole are President David Mark; Speaker of the House of Representatives Aminu Tambuwal; Lagos State Governor Babatunde Fashola; his Ekiti State counterpart, Kayode Fayemi, Ogun, Oyo, Anambra, Cross River and Kwara states Governors Ibikunle Amosun; Abiola Ajimobi; Peter Obi; Liyel Imoke and Abdulfatah Ahmed .

Tambuwal urged the governor to rise above partisan consideration and see the fresh mandate as a call to further duty.

Fashola said Oshiomhole’s victory was never in doubt.

“It was not whether or not Oshiomole will win, it was by what margin.”

Obi said: “I knew what Edo State used to be and what it is now due to Oshiomhole’s acumen. It is a testimony that you have done well for your people and that they want you to continue.”

Fayemi described the victory as a well deserved re-

PDP: we’re studying results From Osagie Otabor, Benin

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HE Peoples Democratic Party (PDP) in Edo State has said it is studying the issues pertaining to last Saturday’s governorship election.

Its candidate, Charles Airhiavbere, lost to the Action Congress of Nigeria (ACN) candidate, Governor Adams Oshiomhole ,who polled 477,478 votes against Airhiavber’s 144,235.

The PDP in a statement by its Publicity Secretary, Matthew Urhoghide, congratulated Edo people “over their decision on who rules them in the next four years.”

It urged its members to remain resolute in their pursuit and determination to ensure good governance for the people.

The statement reads: “The PDP in Edo State will like to reassure the people that we have learnt from our immediate and past experiences and promise to always stand in the gap for them in their quest to achieve to the fullest their aspiration of quality life.

“We thank INEC, law enforcement agencies and all those who assisted in making the whole election process a very peaceful one.” ward for Oshiomhole and the mpact his administration has on the people.

In a statement yesterday by his Special Adviser on Media, Festus Adedayo, Ajimobi said Oshiomhole’s victory was an appreciation of his outstanding perform-

ance.

He said the triumph was a demonstration of the love the people had for him and the Action Congress of Nigeria (ACN).

Amosun said the people’s belief in credible elections made Oshiomhole triumph.

Imoke said Oshiomhole’s victory apart from further deepening the practice of democracy in Nigeria, demonstrates that the electorate is now becoming politically conscious of their rights to vote for whoever they deemed fit to govern them.

Senate Minority Leader George Akume said: “It was a victory well deserved. He earned it with his sterling performance. He wormed his way into the hearts of the Edo people, who responded to his hard work and dedication to duty.”

Others who greeted the governor were the national leadership of the Peoples Democratic Party (PDP).

In a congratulatory message, the PDP urged its supporters to remain calm, law abiding and to resist the temptation to take the law in their hands.

The National Chairman of the All Nigeria Peoples Party (ANPP), Ogbonnaya Onu, said: “The members of our great party join me to congratulate you on your reelection.

Governor urges Jega to probe lapses in poll

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DO State Governor Adams Oshiomhole has urged the Chairman of the Independent National Electoral Commission (INEC) Prof Attahiru Jega to investigate the delay in the arrival of election materials in Benin.

Speaking with reporters in Benin yesterday, Oshiomhole said: “I ask Jega to conduct an investigation into why for four hours, materials were not delivered in Benin. That investigation would help determine why some people were disenfranchised.”

Oshiomhole however lauded the INEC Chairman and the Resident Electoral Commissioner (REC) for

conducting a free and fair election.

He said: “I believe that the REC Kassim Geidam demonstrated uncommon quality of leadership. He showed commitment and courage to duty. Under tension, he maintained his cool.

Oshiomhole maintained that one outcome of the election was the unanimous agreement of the people that his government deserves a second term.

“Edo people from the South to the North to the Central have spoken as one.

This shows that all efforts of some people to whip up ethnicity failed woefully.

Edo elections have shown

that merit alone would determine the pattern of voting.

“The way the people have voted have made my job easier. I will build on the existing bridges of unity and sustain our developmental agenda”, he said.

Some politicians were arrested with thumb printed ballot papers during the election on Saturday.

The governor urged Jega to set-up an enquiry to determine how the ballot papers got into the hands of politicians.

The governor said it would be of national interest, if Jega liaise with security agencies to find out how

the ballot papers leaked.

Oshiomhole, who declined naming the parties of the suspects, urged the chairman to encourage a National Commissioner, Ishmeal Igbani to resign from the commission.

Igbani was in charge of monitoring and he supervised Oredo Local Government.

He accused Igbani of being responsible for the delay in taking electoral materials to Benin City, whereas materials reached rural communities on time.

Oshiomhole said it was an error of judgment for Jega to deploy Igbani to preside over Oredo, which has a voting population of 260,000.

FEDERAL High Court in Abuja has been urged to imprison the Chairman, Independent National Electoral Commission (INEC), Prof Attahiru Jega and two others for allegedly flouting the court’s orders.

This request is contained in a Form 49 filed before Justice Adamu Bello by Bedding Holdings Limited, seeking to cause Jega and others to appear and explain why he should not imprisoned over the alleged offence.

Also joined in the suit were INEC and the Registrar of Patent, Ministry of Commerce and Industry.

The firm said the contemnors allegedly flouted the orders contained in the court’s judgment of June 5 between it, the Registrar of Patents, Ministry of Commerce and Industry and six others.

The judgment adjudged Bedding Holdings as the exclusive owner of the patents and designs rights in and over the transparent ballot boxes and electronic collapsible transparent ballot boxes used by INEC. It held that the rights were valid and subsisting, and that any use to which the boxes were put by INEC and other defendants is illegal.

Justice Bello voided the the patents and designs rights wrongly issued to Tambco United Nigeria Limited, Anowat Project and Resources Limited and Emchai Limited (other defendants in the suit) by the Registrar of Patent.

The judge further held that Bedding Holdings’ consent must be sought before its ballot boxes could be used by anyone and for any purpose.

People’s will triumphed, says Akeredolu

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CTION Congress of Nigeria’s (ACN’s) governorship candidate in Ondo State Olurotimi Akeredolu has said forces of retrogression in Edo State, cannot hold the people down.

In a statement, he said: “Certain tragedies which occurred before the election had the potentials of creating apathy and anxiety in the minds of the people.

“The uncommon resilience displayed by the people in the face of intimidation is the answer to those whose achievements are seen only on sponsored television programmes and newspaper adverts.

“The people have many remarkable landmarks to point at since the routing of the locusts in the 2007 election.”

•Akeredolu

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THE NATION MONDAY, JULY 16, 2012

POLITICS OSHIOMHOLE’S VICTORY Comrade Adams Oshiomhole has been re-elected governor of Edo State in a poll described as largely free and fair by monitors, opposition parties and other stakeholders. It was a departure from the 2007 experience when the contest among the Peoples Democratic Party, Action Congress of Nigeria (AC) and other political parties shifted from the ballot box to the courtroom. This exercise was still full of drama and surprises. The Independent National Electoral Commission (INEC) had lessons to learn about how to perfect the electoral process. Security agencies discharged their duties without hindrance and temptation to take sides in a hot battle. Acclaimed godfathers kissed the dust, signalling a gradual eclipse of political influence. But the victor also woke up to the reality of an unfinished business.

After securing victory, Comrade Oshiomhole also congratulated his opponents for a good fight and solicited for the cooperation of all in the arduous task of governing the multi-ethnic state. Our reporters present how the stakeholders fared and point out the challenges of the second term.

How key stakeholders fared U

SUALLY, election is a nightmare in Nigeria. Since it is a collective enterprise, any attempt by any of the stakeholders to subvert or undermine the process would end in catastrophe. The rules of the game must not be breached by stakeholders, including candidates, political parties, electoral commission, security agencies, voters and media. Total compliance with the Electoral Act, voting procedure, collation and announcement of results and avoidance of violence are democratic acts that demarcate between the sanctity of the ballot box and electoral terrorism.

• Combined team of security agents during the election.

INEC It was evident that the Independent National Electoral Commission (INEC) led by Prof.

Attahiru Jega worked so hard to ensure a hitchfree elections. However, the agency discovered on poll day that certain unpredictable developments nearly marred its reputation as a competent and unbiased umpire.

Ahead of the critical election, tension had enveloped the state. There were allegations and counter-allegations of rigging. In some areas, the violence marred the campaigns. To douse the tension, Edo State Resident Electoral Commissioner Kassim Gaidem hosted a meeting of stakeholders. It was attended by Jega. Party representatives were assured of a level playing field. Police also expressed neutrality. Even soldiers promised to stick to its mandate to maintain peace.

Despite its good intention, INEC nearly bugled the exercise on Saturday. There was anxiety in some polling booths when voters’ name could not be found in the on the voter register.

Where names were identified, there were no pictures to further validate the authenticity of the voters’ identity. Promptly, Governor Adams Oshiomhole cried foul, alleging that INEC had collided with the Peoples Democratic Party (PDP) to rig Action Congress of Nigeria (ACN) out of the poll. Gaidem was not complacent. When the security agents informed him about the omission, he rose to the occasion. He came around to pacify the anxious voters. Then, he brought the comprehensive list which contained all omitted names. He had no immediate solution to the missing pictures.

The lesson is instructive. In the future, the com-

By Emmanuel Oladesu

mission should comply with the requirement of display of voters’ register, at least a week or two to the election.

Complaints about late arrival of INEC staff and electoral materials were not rife. Also, there was no shortage of voting materials. But there was tragedy as a boat conveying electoral officers and materials capsised on the way to the coastal community, Ologbo. Policemen and INEC employees lost their lives. Materials were destroyed. Olufemi Adenaike, Edo State Commissioner of Police alleged negligence on the part of INEC, saying that the ‘pilot’ of the boat was drunk. Conducting elections in riverrine communities portends certain challenges which INEC should reflect upon and resolve in a better way in the future. So far, it can be said that the agency strove to conduct a transparent poll.

Security agencies Electoral security is very critical. Thus, the role of the police and other civil security agents cannot be ignored. Apart from the police, soldiers were on hand to keep the peace. Initially, their presence created panic in the state. ACN, traditional rulers, cleric and other stakeholders decried the troops deployment. Their worry was that they may frighten people, which may lead to a low turn out. However, the soldiers did not create problem. There was no report about molestation, intimidation and repression, which are the hallmarks of soldiers in civilianmilitary relations. But observers still argued that their presence could not be justified be-

EDO PEOPLES’ VERDICT NORTH

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Akoko-Edo Etsako East Etsako Central Etsako West Owan East Owan West CENTRAL Esan North-East Esan Central Esan South-East Esan West Igueben SOUTH Ovia North-East Ovia South-West Uhunmwonde Egor Oredo Ikpoba Okha Orhionmwon TOTAL

ACN

PDP

29,803 14,904 16,834 44,962 22,483 15,150

13,785 9,634 5,113 5,920 11,709 7,229

13,068 9,751 14,904 13,499 9,751 26,835 15,150 17,011 60,623 66,552 58,809 26,163

477,478

TOTAL

43,588 24,538 21,947 50,882 34,192 22,379 197,526 12,478 25,546 6,758 16,509 9,634 24,538 13,282 26,781 6,758 16,509 109,883 5,4278 32,262 7,229 22,379 5,826 45,216 3,486 64,109 9,081 75,633 6,505 65,314 8,716 34,879 339,792 144,235 612,322

cause the provision of security by soldiers on election day was a pointer to democratic fragility and immaturity.

Police and other security agents were up and doing. Gone were the days of undue collaboration with desperate candidates to frustrate the ballot box, as it were. Policemen and other security agents were adequate. It was because election was only taking place in one state. There-

The Oshiomhole - Airhiavbere mismatch

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• Jega

T about 12:10pm last Saturday, Governor Adams Oshiomhole who contested the election on the platform of the Action Congress of Nigeria (ACN) was furious. His three GSM handsets were busy. Several calls were being made and received and his facial expression after each call indicated all was not well.

Information reaching him from the field in Edo South Senatorial district, especially Oredo Local Government Area, was not pleasant and he sensed danger. He perhaps did not want a repeat of what he passed through after the 2007 governorship election when he was robbed of victory and had to wait all of three years to retrieve the mandate handed him by the people.

Governor Oshiomhole departed for Benin City

From Osagie Otabor, Benin

from his Iyamho hometown after voting to tackle what he called attempts to declare fake results by the Independent National Electoral Commission (INEC).

Oshiomhole fears for Edo South were because of the huge voting population in the region and recent threat by chieftains of the Peoples Democratic Party in the region to restore the PDP back to power, even when it was obvious to everyone that the people had struck a rare partnership with the ruling party in the state. Edo South accounts for over 55 per cent of the voting population in the state.

Governor Oshiomhole who later addressed •Continued on page 8

fore, it was convenient to draft policemen from neighbouring states. Apart from Adenaike, two commissioners of police were on duty. The three commissioners supervised security in the three senatorial districts. But the Police Deputy Inspector General of Police Mavel Akpoyibo, was ground. His timely presence in some locations where there were apprehension restored order into a state of pandemonium. Cases of ballot snatching and multiple thumb-printing were not rampant. Wrong collation of figures, falsification of results and postponement of result announcement were absent did not threaten the credibility of the process.

Political parties Remarkably, political parties mobilised the electorate for the election. Actually, only two parties; ACN and PDP were on the weighing scale. Others were spectators. The acrimony that characterised the campaigns had ended on the eve of the poll. Parties refrained from hiring thugs truncate the process. The initial fuss by the governor over alleged rigging soon fizzled out. Only party agents were on ‘guard’. Among them, there was no bitterness. There was also no disputation of results, following physical counting at the polling booths. Therefore, it was easy for the parties to have a clue about possible outcome before announcement of final results by the Chief Collation Officer and Chief Returning Officer.

Electorate Generally, it is believed that there was a high turn out of voters. Apparently, it was a festival of choice. The fear of troops deployment evaporated at sunrise. Many voters got to the polling stations before INEC staff arrived. Simple rules, such as being on the queue, enduring minor hitches and slowness of voting were strictly adhered to. It was evident that people were ready to police their votes. In one accord, voters reiterated their belief in ‘one man, one vote’.

Also, voters shunned all forms of unruly behaviours, in spite of provocation traceable to the disappearance of their names on the register.

The affected accepted the dischenfranchment as their fate. Aggrieved people lodged complaints with policemen and INEC staff without causing a stir. Where there was late arrival of INEC officers and materials, people waited without losing hope. Arson, violence and malpractices that characterised the 2007 reduced. Edo people had turn a new leaf in 2012.

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THE NATION MONDAY, JULY 16, 2012

POLITICS OSHIOMHOLE’S VICTORY

Anenih: The demystification of a godfather

New dawn in Edo South

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T daybreak last Saturday, there was hardly anything in the ho rizon to suggest that Governr Adams Oshiomhole would be returned with a landslide. That he would win was not in doubt, subject to peace prevailing and the agencies living up to expectation.

No Christian reporter could have left his house without a session of fervent prayers to his creator. Mine started with seeking the face of the Almighty.

I prayed for protection and peaceful conduct of the election. I prayed that polling would not lead to conflagration. I prayed that the Lord would take control and choose for the state. That was my take-off point for activities of a day that was sure to be very busy.

As early as 6 a.m. on that Saturday this reporter had left to monitor the election process. At 6.15am there was already a large crowd of voters at Olua primary school, Uselu shell. The same crowd size was also noticed at Oba market, Oredo local government area and Asoro primary school, a sign that the people were willing to vote and choose the leader of their choice.

At about 7a.m, the NUJ Press centre was already crowded with journalists both home based and foreign set to go out to the three senatorial districts.

There was apprehension that things could turn bloody. But thanks to patrols by heavily the armed military men and riot policemen. No one could attempt mischief.

First, we visited the Garrick Group of Schools along Ekhemwan road where the PDP governorship candidate, Gen. Charles Airhiav-bere, voted.

At the centre, people were screened by soldiers before anyone was allowed into the centre. The place was peaceful. People were eager to vote.

From Osemwengbe Ogbemudia, Benin

Problems occurred at the centre at about 12 noon when names of prospective voters were missing on the voter register. It took the intervention of the security agents to prevent outbreak of violence.

Arihaivbere was not spared by the voters. He was told to join the long queue on the field. At the end of the day people voted and their votes counted. Gen. Airhiavbere at lost at his polling unit, ward, local government area, senatorial district and the state to Comrade Adams Oshiomhole of the Action Congress of Nigeria.

In Asoro primary school, Benin City the Speaker of the state House of Assembly Hon. Uyi Igbe was in charge.

Talking to journalists, he said, “the people have spoken. The people want development. And development the people stand for.”

This reporter later travelled to Orhionmwon local government where the deputy governor, Dr. Pius Odubu and the Director General, Oshiomhole Campaign Organization, Mr. Osagie Ize-Iyamu hail from.

In Urhomeghe, the home town of the deputy governor, it was like a carnival. People were eating and drinking as they awaited accreditation. Odubu was relaxed in the company of his people. The entire area was peaceful. It was the same situation in Iguedodo, the home town of Ize-Iyamu.

From Benin down to Benin-Abraka road to Ugo, Ogba, Egba and other communities in Orhionmwon and Uhumwode to Ikpoba-Okha, Egor and Oredo Local government, the election was peaceful, people conducted themselves in a decent manner.

At about 3.45pm, results were been

released from various polling units, especially Orhionmwon, Ikpoba-Okha, Oredo and Egor. At 4.30pm, it was already clear that the ACN would have the day.

Urhokpota Hall was the collation centre for Oredo local Government Area, things were moving on smoothly, soldiers were on guard. Western Boys High School and Eghosa Anglican Grammar School serves as collation centre for Egor and Ikpoba-Okha local government the situation was also normal.

Oredo result was released around 1am with ACN polling 66,522 against PDP’s 9,081. Egor had been released around 10 p.m. with ACN scooping 50,623 as against 3,486 of PDP. However, other local government results were collated and sent to INEC headquarter around 3am. The final result was announced at 7.45 a.m. by Prof.

Osayuki Oshodin, the Vice Chancellor of University of Benin, who served as returning officer.

At 8 a.m. yesterday, the major streets and the popular King-Square were already filled with jubilating people waving brooms even as they defied the heavy downpour to jubilate around the city. Comrade Oshiomhole acknowledged cheers as he drove round the city.

For me, the day started with a private session in the presence of God. It also ended on that note as I followed the governor and his men to attend a mass at St. Paul Catholic Church, Airport Road, Benin City.

All that remained at that point was the waiting game for official announcement of the result. How does a reporter feel at that point? Elated to have covered a major campaign and election. I look forward to a repeat of the exercise in four years.

How Oshiomhole saved the day •Continued from page 7

journalists said the delay by INEC in conveying electoral materials to polling units in Oredo was a ploy to manipulate the election and prevent the electorate from returning a verdict.

What perhaps confirmed his fears was that there was no excuse for materials not to get to polling units in Oredo when it was confirmed that the materials left INEC offices as early as 6am.

In ward one, unit 19, two voter registers were brought by INEC and one allegedly contained names which the voters said were strange to them. Accreditation and voting had to be suspended until about 1pm.

At other polling units, voter registers presented had photographs of 17 voters out of 500 persons that registered and INEC officials insisted that those whose photographs did not appear would not vote. This led to protest by those whose photographs were missing until they were allowed to vote.

Besides the worry on delay in arrival of electoral materials, Oshiomhole also received reports that some PDP chieftains were thumbprinting ballot papers at their residences which made him to address journalists thrice before he departed the voting centres.

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HE tension generated during preparations for last Saturday’s governorship election by political parties would make anybody believe that violence would characterise polling in different parts of Edo state As I was leaving home for the premises of the Edo State Council of the Nigeria Union of Journalists where we agreed would be our take-off point, my phone rang and it was my father on the line asking what part of the state I was going to cover.

I laughed and simply told him “Edo North”. In his usual style, he said I had never covered the polling unit where he cast his votes and urged me to be careful and run for cover when-

The governor who said he was heading for Benin City to mobilise the voters against an alleged plot to rig the election said many of his supporters would be disenfranchised if accreditation time was not extended beyond 12noon.

He threatened that any “attempt to declare fake results will be the beginning of the end”, adding that everybody, including INEC, would count its loss and his loss.

Governor Oshiomhole noted that he was shocked that Prof. Jega deployed Ishmael Igbani to supervise election in Oredo, adding that voting materials were taken to Oredo at late hours to prevent eligible voters from voting and for thumb-printing to take place in the dark.

His words, “It remains an embarrassment. They were prepared for the fraud. INEC has been the weak link in the democratic process. They want to bring those thumb-printed materials.

Prof. Jega has made no difference.”

“This is just one state election and INEC is wobbling. It is shameful. In a polling unit where you have 500 voters, only 10 persons were accredited.”

“Jega who is the INEC boss has messed up the system. He deployed Ishmael Igbani to supervise Edo election. Materials were never distributed timely to all the local governments

and the polling areas. There shall be massive disenfranchisement of the electorate in Edo State which is against the will of the people. We need things in Nigeria to be done rightly and timely to move the country forward.

This may not be the best we are expecting. I will rather die than see the country move backward. I am in the election to win and promote development, not to promote rigging and corruption and go to court.

“Prof. Jega has planned to delay voting of voters and eliminating some names in the voter registers by deleting some through scientific rigging and manipulation. My assessment is that there will be high turnout by the electorate, but low voting is anticipated. In Oredo, there are reports of none electoral materials. There are160,000 voters and it is supervised

by Ishmail Igbani who has a suspicious record.”

“Jega’s best is not good for Nigeria.

It is alleged that fake results sheets were found in four local government areas in the state. This is a calculated attempt to rig the election in the state

by INEC and PDP.” Tempers began to cool down when results started filtering in that ACN was leading in Oredo. What saved the day? Was it the loud cry by the governor? It might well be..

By Augustine Avwode

•Anenih

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OR close to three decades now, former chairman of the Board of Trustees (BoT) of Peoples Democratic Party (PDP) Chief Tony Anenih, bestrode the political firmament in Edo like a ‘Colossus’ leaving the people, in the words of Shakespeare, “petty men (to) walk under his huge legs and peep about to find ourselves (themselves) dishonourable graves”.

But with the result of Saturday’s election in Edo State has changed all that as the retired police officer from Uromi might have been finally demystified. The electorate in Edo State spoke in a loud and unmistaken voice about their preference for performance in government. It was not just a mere electoral defeat; it was really a crushing rejection of the PDP in the state expressed in a comprehensive fashion. The defeat goes straight into the heart and soul of the party machinery in the state as symbolize and personified by Anenih.

Now close to 80, the godfather of Edo politics would be at odd to claim that he is still the all time master of the game. The results expressly point to the contrary as the incumbent Governor Adams Oshiomhole of the Action Congress of Nigeria (ACN) roundly trounced the PDP in all the 18 local government areas of the state. In the process, the ACN made mince meat of the PDP in its supposed strongholds.

Consider some of these local council results as declared by the Independent National Electoral Commission (INEC) for instance: Esan Central=ACN11,792, PDP 9,281 Esan S’E=ACN 14,904; PDP 9,634.

Esan N’E = ACN 13,086; PDP 12,478 Esan W. = ACN 13,499; PDP 13,282 Egor = ACN 50,623; PDP 3,486.

Iguenben = ACN 9,751; PDP 6, 7587.

Owan West = ACN 15,150; PDP 7,229 Owan East = ACN 22,483; PDP 11,709 9.

Uhunmwode = ACN 17,011; PDP 5,826 Orhionmwon = ACN 26,163; PDP 8,71 The results show that ACN not only won in all the council areas but profoundly, Anenih lost in his polling booth, ward and Local Government Area. The PDP candidate, Gen Charles Airhiavbere (rtd) lost in his polling booth, ward and Local Government Area. The state chairman of the PDP Chief Dan Orbirh lost in his polling booth, ward and Local Government Area. And, the Chief of Staff to President Goodluck Jonathan, Chief Mike Ogiadome lost in his booth, ward and

Kinsmen identify with Oshiomhole in Edo North From Osagie Otabor, Benin

ever I sensed danger.

My father apparently was being haunted by an experience I had two years ago while covering a re-run election in Ovia North East Local Government Area. I was beaten up by thugs while attempting to take photographs of a rowdy session.

The experience became the butt of jokes by my colleagues as we set out towards Edo North Senatorial District from where Governor Adams Oshiomhole hails.

As we moved, we saw people, the

young and elderly, already on the queue for accreditation as early as 8am. Our target was to see the turnout in rural communities which I knew would be a reflection of parties’ campaigns and mobilization of the voters.

At Unemenekhua and Ibillo in Akoko-Edo local government areas, some old men sat opposite a polling unit waiting for voting to commence.

They told me that they were watching to see who would attempt to snatch the ballot box or prevent them from voting.

Then nature decided to remind us that we were not super beings. Despite the excitement and expectations, we were hungry as the only food we had on the way was boiled corn.

In many communities we monitored in Akoko-Edo, Etsako West and Etsako Central, eligible voters stayed put at the polling units.

I was also monitoring events unfolding in Oredo. My father and sister kept calling to report the delay in arrival of electoral materials and how there were double voter registers at a polling unit.

It was at Iyamho, Oshiomhole’s home-

Local Government Area. And as an encore, in Anenih’s Esanland which makes up Edo Central Senatorial District, the ACN won all the local government areas.

In the final analysis, whereas the ACN got 477, 478 votes, the PDP could only mange a paltry 144,325 on comparative basis. That leaves the ACN with a massive and landslide win with 333,000 votes.

Ironically, three days to the election Anenih predicted victory for the PDP. Anenih, who spoke at a campaign rally in Okada, Ovia North East Local Government Area on said the PDP candidate, would have an easy ride because his rival, Governor Adams Oshiomhole “lacks the capacity to remain governor”.

His words: “It’s true that the governor of Edo State is from the Northern Senatorial District. When you have children, you give them responsibility, but Oshiomhole can’t carry any responsibility. We have a candidate who will deliver health care and quality education.

“The words of elders are words of wisdom. Edo cannot be left out in the Southsouth which is controlled by the PDP.” He probably meant it knowing full well that a lot was at stake as far as the election is concerned. For in the final analysis, it would determine his political future.

He announced his presence in Edo State politics in 1981, when he was the state Chairman of the National Party of Nigeria. In 1983, he allegedly facilitated the victory of Dr. Samuel Ogbemudia, who defeated the Unity Party of Nigeria (UPN) candidate, Prof. Ambrose Alli.

He later became the national chairman of the Social Democratic Party (SDP) in 1993. The party won the presidential election but it was annulled by former military Head of State Gen. Ibrahim Babangida.

Since the country’s return to democracy in 1999, Anenih’s uncanny ability to deliver on difficult assignments earned him the nick name of Mr. Fix It. He has thoroughly enjoyed calling the shots, dividing the lines and apportioning shares to those who wished to be anything in the political sphere in Edo State.

But since Oshiomhole announced his presence in Edo politics, the ex-BOT chairman has been swallowing bitter pills of defeat. For Anenih, it has been a case of once beaten twice shy. In 2007, the governor he installed in Edo State, Prof. Oserhiemen Osunbor, was thrown out of the Government House by a court verdict.

In the 2011 elections, his party lost many national and state assembly seats in Edo. What used to be a ‘clean sweep’ for the PDP then changed.

For the Uromi chief, a life in the opposition in the last four years was just unbearable. Painfully, he may have to endure yet another four years in the opposition camp now. It is the demystification of a godfather in the twilight of his political career. town, that the ‘Journalistic adrenaline’ in us increased following reports of events in Edo South. The governor’s mood could tell that all was not well. We were told he had spoken to the press twice after accreditation. We waited.

By the time we were returning at about 4pm, little traffic had returned to the highway and people were seen jubilating when results were announced. The soldiers who blocked the highway had left probably to be at collation centres.

Unlike in previous elections when journalists ran for cover over gunshots by political thugs, the election was devoid of such action.

THE NATION MONDAY, JULY 16, 2012

9

NEWS Girl, 15, wins Soyinka Award

FLOOD IN IBADAN

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•Flooded area of Arulogun-Ojoo Road as a bridge caved in

•Stranded commuters at the scene where the bridge gave way on Arulogun-Ojoo road

FTER a keenly contested national essay competition, 15-yearold Miss Sopundi Mgbearike of Graceland International School, Port Harcourt, Rivers State, has emerged winner of this year’s Wole Soyinka birthday essay competition (WS78). The event was organised by Zmirage Limited. She beat 77 other shortlisted contestants across the country. The competition was staged in honour of the Nobel laureate, who turned 78 last Friday.

At a reception held at the Government House, Abeokuta, Ogun State at the weekend, Mgbearike was awarded a scholarship worth N250,000, while her school received a desktop computer.

The second prize winner, 17year-old Miss Chidinma Emmanuel of Betenas Unity High School, Idanre, Ondo State went home with N150.000, while her school got a laptop.

Third prize winner 16year-old Miss Aliyah Ibrahim got N100,000 and a laptop for her school. All three winners were female.

Prof. Soyinka later hosted the 78 pupils at his Abeokuta residence after the award presentation.

By Ozolua Uhakheme Assistant Editor (Arts)

The fourth and fifth positions went to Ayomidipupo Olowookere of Greater Tomorrow International College, Arigidi, Akoko, Ondo State and Akaji Ejiro Eke of Becky Parker College, Akure, respectively. Zmirage Limited, a multi-media companybased in Lagos, initiated the competition as part of the yearly cultural platform to celebrate the literary icon and the values he represents globally.

Governor Ibikunle Amosun commended the winners and the 73 finalists, urging them to work harder and always dream big in all their endeavours.

He said: “All of you are winners because you all went through the rigorous competition. This should be your starting point as you need to always dream big. Stay focused, follow instructions, so that you can all become extraordinary.

“Don’t give up. Don’t let anybody limit you. The competition is a learning process.

You should not be selfish or unduly proud but be humble about the success.”

Amosun who was repre-

•Soyinka

sented by his Special Adviser on Education Dr Tunji Abimbola, reiterated the government’s support for quality education. He extolled the virtues of the winners, noting that their success was attained through brilliance, resilience, courage and hard work.

The WS78 producer; Lillian Amah and Ropo Ewenla; chairman of jury, disclosed that picking the winners did not come easy, as many of the entries were revelations, noting that the prizes went to those who excelled in the competition tagged The Mind of a Patriot, “The essay competition is an intervention platform to promote reading and writing amongst students,” they added.

Kogi politician alleges threat to his life

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High Court and the Court of Appeal declared that the term of office of the then governor, Alhaji Idris Ibrahim, would not lapse until 2012.

But the judgment was set aside by the Supreme Court.

“Our client has since instituted an action principally against INEC, challenging the purported election of Alhaji Idris Wada as the governor of Kogi State in a purported election held during the pendency of INEC’s appeal to the Supreme Court and against the background of the Supreme Court judgment to the effect that, contrary to the judgment of the Federal High Court and Court of Appeal, Ibrahim Idris ought and should have vacated office on May 28, 2011.

“As a result of the proceedings in court at the instance of our client, the powers that be in Kogi State have not only been harassing him to the effect that the EFCC should willy nilly prosecute him.

“Put bluntly, these powerful people have been trying to use a respected commission headed by an equally highly esteemed officer to harass, intimidate, molest and persecute our client.”

•A flooded building

HE winner of the January 2011 primary election of the Peoples Democratic Party (PDP) in Kogi State, Jibrin Isah, has alleged threat to his life by people he called political opponents.

He claimed the powers that be in the state have been mounting undue pressure on him to dump his suit challenging the candidature of the Governor Idris Wada in the last general elections.

Isah maintained that he had the PDP mandate to run for the poll, assuring that the court would restore his mandate.

In a letter by his counsel, Chief Wole Olanipekun (SAN), to the Economic and Financial Crimes Commission (EFCC), which is allegedly mooting a plan to reopen the trial of the PDP chieftain for his alleged involvement in the Afribank scam, he submitted that participation in a shadow poll should not be an excuse for criminal trial.

Olanipekun recalled that on November 21, 2010, the EFCC counsel, Rotimi Jacob had informed a Federal High Court sitting in Lagos to strike out his client’s name from the charge, adding that

•A flooded Church at Oke Ayo, Odo Ona

• With trousers rolled up, a man walks through the flooded Church at Oke Ayo, Odo Ona

•Apete bridge swept away by the flood

‘As a result of the proceedings in court at the instance of our client, the powers that be in Kogi State have not only been harassing him to the effect that the EFCC should willy nilly prosecute him’

By Emmanuel Oladesu

the trial judge, Justice J.T. Tsoho granted the prayer.

He also recalled that Justice O.A. Akinlaja of the Lagos High Court had also on June 1, 2011, struck out Isah’s name, following the arraignment of suspects.

Olanipekun said: “Our client is a politician and a leading member of the PDP in Kogi State. In fact, he contested and won the primary election of the party in 2011 and his name was sent to the Independent National Electoral Commission (INEC) as the PDP governorship candidate in Kogi State in the April 2011 election. The election did not hold because the Federal

THE NATION MONDAY, JULY 16, 2012

10

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Court summons pathologist, three others over policeman’s death T HE Chief Magistrates Court in Yaba, Lagos, has summoned four more people in its effort to unravel the mystery behind the death of Police Corporal Patrick Omojiade of Adekunle Police Station.

They are: Professor F. B. Abdukareem, Consultant Pathologist/Morbid Anatomist, Professor Banjo, the Head of Department, Morbid Anatomy (both of the Lagos University Teaching Hospital), Chief Superintendent of Police, Solomon Ugochukwu, Head of Homicide Section at Panti and

By Eric Ikhilae

Alhaji Kamorudeen, traditional head (Baale) of Makoko community, where Omojiade purportedly died.

The court had earlier summoned the Divisional Police Officer (DPO) in charge of Adekunle Police Station, Yaba, Lagos, Tolani Oguntojoba, a Chief Superintendent of Police, and one Inspector Omojate.

Those summoned are believed to possess information crucial to the inquest, to be conducted by Magistrate Sherifat Metapo, into Corporal Omojiade’s death on May 2. He was 34.

Omojiade was last seen alive by his family on May 2 when he left for work at the Adekunle Police Station. He was later reported dead in unclear circumstances.

The inquest, which was to begin last Friday, was shifted to July 20

because of Magistrate Metapo’s absence.

Lawyer to the bereaved family, Moses Akpasubi, said those invited, particularly the Pathologist, who conducted autopsy on Omojiate’s body, will help the court to unravel the truth.

He told The Nation that though the autopsy report had been given to the Police, they were yet to release. The family gathered that that the cause of death as stated in the report is different from what his colleagues claimed killed him.

•Omojiade

Police foil robbery in Lagos

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•Ikeja Local Government Area Chairman Mr. Wale Odunlami, presenting a certificate to Alhaja Ramota Olorunnimbe, one of the council’s graduands at the council’s Adult Literacy Progamme

OLICE yesterday foiled a car snatch attempt by a four man gang in Agidingbi area of Lagos State.

The incident it was gathered occurred around 1pm, when people were returning from their different places of worship.

It was learnt that the gang who were operating on two unregistered motorcycles, blocked the Adidingbi road near Coca-cola as they attempted to snatch a Toyota Camry car.

The suspects were said to have opened fire in the air to scare passersby and motorists who all scampered for safety.

However, while the operation was ongoing, a policeman attached to the Special Anti-Robbery Squad Ikeja, caught in the web decided to engage the robbers in a gun duel.

According to the command’s spokesperson, Ngozi Braide, a Deputy Superintendent of Police who confirmed the incident, the policeman was able to gun down two of the suspects while the other two escaped with bullet wounds.

Fashola presents title documents to 1,000 home owners

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AGOS State Governor Babatunde Fashola has presented sub-lease title documents to 1, 000 home owners in government housing estates.

At the ceremony in Adeyemi Bero Auditorium at the State Secretariat, Alausa, Ikeja, Fashola said the beneficiaries were those who bought government properties before year 2000, and who until now, had letters of allocation or other documents not legally recognised.

He recalled that on his assumption of office for first term in 2007, government was concerned about the large number of properties in Lagos State without registered titles.

Fashola said: “Government, therefore, decided to do a number of things to assist property owners in registering their titles, in order to reduce the large number of properties without registered titles in the state”.

“This government project of registering titles to properties acquired in Government Housing Estates before the year 2000 is also another policy of

By Miriam Ndikanwu

government aimed at systematic reduction in the number of unregistered titles of properties in the state.

“Let me say that the concern of this government in all of these efforts aimed at reducing the unacceptable number of properties without registered titles is not for economic benefit on the part of government, but geared towards poverty alleviation and financial empowerment of the citizenry.”

Fashola, represented by the Commissioner for Housing Bosun Jeje said it was an incontrovertible economic fact that a property owner, who failed to register/perfect his title, is sitting on dead asset, adding that by his action, such a person would be unable to put such property to optimal economic use for his benefit.

“This initiative is aimed at making properties to begin to ‘work’ for their owners, since such properties with registered titles being legally recognised can seamlessly be used as security to obtain loans for the

acquisition of other properties and to raise needed finance to meet other needs of the owners,” he added.

The governor said applications for registration of houses in the estates were categorised into high income, medium income and low income, adding that such applications were accepted from house owners on payment of concessionary charges of N20,000, N15,000 and N10,000.

“Unfortunately some of the owners of properties targeted by government in this project did not pay the concessionary rates of charges fixed for this title registration, such title registration ordinarily would have cost them several thousands of naira more as normal transfer charges, going by the present value of such properties.

“However, among those that paid and commenced the procedure, many are still being expected at the government agencies processing their applications to come forward to sign their sub-lease deeds which

are ready for signatures and further processing”.

“Applicants who have paid the said concessionary charges fixed for the processing of their registered titles and have filled the requisite forms are therefore advised to go to the Government Housing Agencies processing their applications, to sign their Sub-Lease Title Deeds”, he said.

Permanent Secretary, Lands Bureau Hakeem Muri-Okunola said in line with state policy to encourage titling of properties, government decided to target house owners who bought properties from its housing agencies, Lagos State Development Property Corporation (LSDPC) and Lagos Building Investment Company Limited (LBIC), before the year 2000.

“We are here therefore talking about those who bought such properties a minimum of 12 years ago (some of you even from our records, bought your properties well over 40 years ago, but before now have only letters of allocation of such properties, without registered title documents of the properties”.

By Jude Isiguzo

“The policeman engaged the robbers in a gun battle and the two of them were gunned down, while two others escaped with bullet wounds.

“The robbery operation was foiled and the two suspects were arrested.

They have been taken to SARS for investigation”, Braide said.

She also noted that two locally made guns and ammunitions were recovered from the robbers, adding that the police is making efforts to arrest the other members of the gang who are on the run.

Fashola hailed on security initiative

By Segun Balogun

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AGOS State Governor Babatunde Raji Fashola has been given the thumbs up for tackling security challenges.

Addressing reporters over the weekend, Chairman Mainland Independent Group (MIG) Mr Kayode Aransiola acknowledged the people-oriented projects executed by Fashola.

Aransiola called on other governors to emulate the Action Congress of Nigeria ledgovernment of Lagos State.

He said: “Gov Fashola’s style of leadership has led to unprecedented influx of investors into the state”.

The MIG leader noted Senator Oluremi Tinubu’s opening of Lagos Central Senatorial District office on Herbert Macaulay Way, Yaba, adding: “Her numerous empowerment programmes had impacted positively on the lives of Lagosians.”

Aransiola said: “Senator Oluremi Tinubu’s initiative has been complemented by Commissioner for the Environment, Tunji Bello’s employment and empowerment programmes.”

Bello recently distributed 200 GCE Forms to students and sponsored several people on pilgrimage to Mecca and Jerusalem.

Aransiola said: “these gestures from Senator Oluremi Tinubu and Hon Tunji Bello are true reflections of the leadership style of Asiwaju Bola Ahmed Tinubu which has made several Peoples Democratic Party members to defect to the ACN”.

Several members of the PDP and other parties were recently received

11

THE NATION MONDAY, JULY 16, 2012

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Commercial motorcyclists seek ‘pocketfriendly’ levy from councils

By Segun Balogun

C O M M E R C I A L motorcyclists plying CeleIkotun route are seeking what they call “pocketfriendly” levy from the five the local government areas, where they operate.

Some of them said each of the councils collects N100 daily as “operational levy,” in addition to the N300 daily levy they pay to the National Union of Road Transport Workers.

They praised Governor Fashola for creating an effective interface between them and state government, unlike other states which have banned commercial motorcycling.

They said working on weekends, when local councils’ levy collectors are not on duty, is more profitable to them.

“Weekends are our most profitable days,” said Anthony Eze, one of the motorcyclists plying the route, “some of us now even prefer working on weekends only.”

The route from Cele, on Apapa-Oshodi Expressway, to Ikotun cuts through Ikotun, Egbe-Idimu, Ejigbo, Oshodi-Isolo, and Ejigbo local council areas.

“We pay N800 levy every working day and that is the official amount. There are other unofficial levies too.

So, there are some days one will feel like a slave working for other people because one cannot even boast of N1,000 after a full working day.” he said.

Bank worker, customers arraigned for N10m fraud

By Eric Ikhilae

A SENIOR official of Diamond Bank Plc, Oludare Kazeem, and two customers of the bank have been arraigned before a Yaba Magistrate Court in Lagos for allegedly defrauding the bank of N10million.

Kazeem was said to have aided Abike Awosika, 60, and Ademola James, 55, to steal the money from the bank. He was, until his arrest, attached to the bank’s Oregun branch.

They were said to have committed the fraud in November.

Police investigation revealed that Kazeem assisted James and Awosika in procuring forged statement of accounts from Access and Skye banks with which the customers withdrew N4.5million and N3.5million from the Oregun branch.

They pleaded not guilty to the six-count charge and were granted bail despite the prosecutor’s objection.

The prosecutor, Godwin Osunyi, from the Adekunle Police Station, Yaba, argued that although the offences are bailable, James was likely to evade trial having earlier jumped police bail.

Defence lawyer Emmanuel Bassey urged the court to discountenance Osunyi’s opposition and grant his clients bail.

Gawat’s whereabouts remain unknown

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HERE popular broadcaster Rasaq Aremu Gawat?

Since his disappearance a week ago, nothing has been heard of him.

The presenter of E ji Sari, a programme aired during the Ramadan, was last seen leaving Ikeja, where he attended a meeting around 5pm last Tuesday.

The Nation learnt that he disappeared about 11pm on Eko Bridge on the way to his way home.

Efforts to trace him have so far failed.

Speculations about his well-being have compounded his family’s dilemma. But Lagos State Police Command’s spokesperson, Ngozi Braide, dismissed the speculations.

Mrs Braide told The Nation that Gawat is yet to be found.

Gawat’s wife, Alhaja Fatimat has appealed for his release.

Speaking with The Nation at their Adeniji Adele, Lagos Island home, Alhaja Gawat said the family is worried over his disappearance.

The Lagos State Traffic Management Authority (LASTMA) has explained its role in the recovery of Gawat’s abandoned vehicle.

LASTMA’s General Manager Mr Babatunde Edu said a black Toyota Sports Utility Vehicle

•Wife pleads for release of husband •How we recovered his vehicle, by LASTMA •Fashola promises ‘substantial reward’ for information LAGOS State Governor Babatunde Fashola on Sunday appealed to Lagosians who have useful information regarding the whereabout of Television presenter, Alhaji. Razaq Gawat, to come forward with such to facilitate the current efforts by the police and the State Government to find him.

Speaking to newsmen in an interview, Fashola said the success of any investigation by the Police is based on information by the people, adding that

anyone who brought any useful information that could lead to the finding of the missing person would be substantially rewarded.

“I am optimistic that we will find him. I urge everybody to remain hopeful that we will find him. I know the police are working. They have some useful information that they are sharing with me. We are pursuing the leads, it may take time. We are checking every information. So, anybody who has any information that may lead

us to him, let us know. My number is 08034301122”, the Governor said.

Reiterating his call for useful information, Governor Fashola, who also urged the people to remain calm, further assured, “I know that the Police are working hard at the leads that we have picked up.

Everybody who has reason to believe that he (Gawat) could be here or there must help us. Call 767 or 112 emergency toll free numbers to inform the security agents”.

By Tajudeen Adebanjo

had some religious stuffs such as Qurans, Islamic materials, documents and complementary cards that had Gawat Communications written on them. A distant relative of Gawat who is also an official of the agency and familiar with the vehicle contacted the family.

“The LASTMA boss added that the presenter’s wife Mrs Fatimat Gawat and three other men appeared at the zone and were later joined by the Nigeria Police led by the Divisional Police Officer of Adeniji Central Police Station, Lagos Island, Lagos, Chief Superintendent of Police

(CSP) Monday Agbonnika, around 2pm on Wednesday. On their arrival, a spare key was brought out in the presence of LASTMA officials with an attempt to open the jeep, after several unsuccessful attempts. According to Edu, the first son of the victim, Jubril Gawat invited a panel beater who forcefully opened the car doors in the presence of his mother, officials and relatives.

“After the doors were opened, the younger Gawat entered the jeep to source for some documents which was

(SUV) with number plate number RE 77 AAA was discovered on the Eko Bridge inwards Apongbon around 11:45pm on Tuesday by LASTMA officials led by the Zonal head, Mr Akinpelu Ayuba during safety checks on the bridge.

“On Wednesday, the base officer of the Zone Mrs Ganiat Ijaoba, while conducting routine checks on all impounded vehicles discovered through the side glass (as the doors were locked) that the passenger seat of the jeep

•Gawat observed to be missing together with his phone.

Several unsuccessful calls were made to the victim’s phone while at the zone.

Eminent Nigerians and Islamic clerics have continued to throng his house to sympathise with his wife.

Among the clerics were Chief Missioner, Ansarud-Deen Society of Nigeria Sheikh AbdurRahman Ahmad; Mufti, Conference of Islamic Organisations (CIO) Sheikh Dhikrullahi Shafi’I; National Missioner, Fatiu Quareeb Society of Nigeria Sheikh Sulayman Adangba; Ustadh Jamiu Trimidhi; Sheikh Imran Eleha and Amir (President), Muslim Students’ Society of Nigeria (MSSN) Lagos State Area Unit Alhaji Qazim Badrudeen.

The scholars prayed for his safety.

According to Sheikh Ahmad, “this is a trial from Allah. We must be patience.”

Fashola urges residents to plant trees

AGOS State Governor Babatunde Fashola has urged the people to plant a tree in front or the back of their houses to shield them against the elements.

Speaking during the fifth edition of the yearly tree planing campaign at the OdiOlowo/Ojuwoye Local Council Development Area (LCDA) of the state, the governor, urged the people to take the task of policing the environment and ensuring that no one is allowed to cut down

L

By Miriam Ndikanwu

a tree without showing the permit to do so more serious.

Fashola said the event, with the theme: “plant a tree for a better climate,” which is taking place simultaneously across the state is aimed at drumming attention to global warming and climate change issues.

He said with the planting of three million trees so far, the government has exceeded its projection on tree planting since the exercise began five

years ago, adding that trees act as a protection for neighbourhoods and against natural disasters.

Fashola said in the aftermath of the heavy rainfall of July 10 last year, which resulted in flooding of some areas like Lekki, Arigbanla, Agege, IdiAraba, the state government went to work in some of the areas.

The outcome, he said, is that the solutions put in place have made much needed impact and are working, such that

there are no floods anymore in those places.

Specifically on the recent erosion challenges in some parts of the state, Governor Fashola said government is aware of the plight of people residing in the Alpha Beach area and is coming to their aid.

He urged them to ensure that before the government comes they should nurture a tree and protect it.

Explaining that the protective value of trees and plants is not limited to any area or social

class, the Governor said in recognition of the importance of trees, government acquired a transplanter for moving and transplanting trees irrespective of its size without harming it.

Earlier, Commissioner for the Environment Mr Tunji Bello, said trees reduce the greenhouse effect by shading houses and office buildings and also reduce the need for air conditioning by up to 30 percent which in turn reduces the amount of fossil fuels burnt to produce electricity.

•From right: Managing Director, Lagos Waste Management Agency (LAWMA), Mr. Ola Oresanya, (who represented the state governor), LAWMA’s General Manager, Administration and Special Duties, Mrs. Abimbola Jijoho-Ogun, President Association of Waste Managers, Mr. Adegboyega Adepitan and a youth corper, Ms Tunrayo Johnson at the tree planting campaign... on Saturday.

PHOTO: SOLOMON ADEOLA

THE NATION MONDAY, JULY 16, 2012

12

NEWS

• A flooded residential area in Ibadan...yesterday

•Apete Bridge...yesterday

Flood destroys bridges, roads in Oyo A

HEAVY rain at the weekend destroyed some bridges and roads in Ibadan, the Oyo State capital.

There was no casualty or damaged property.

The 24-hour torrential between Saturday and yesterday casued major rivers and streams to overflow their banks.

A temporary wooden bridge in Apete, Ido Local Government Area, was washed away. The bridge served the community in lieu of a standard bridge the government is constructing in the area.

Last August 26, a torrential caused a flood in which about 100 residents were killed and properties, estimated at N2billion, were destroyed.

The Abiola Ajimobi administration began the dredging of 43 streams and rivers and the construction of bridges late last year and early this year to prevent a recurrence of last August disaster.

The government yesterday said its proactive action mitigated the effect of the flood.

Commissioner for Information

I’ll contest against Mimiko, says Ondo LP aspirant From Damisi Ojo, Akure

AS Ondo State Governor Olusegun Mimiko prepares to declare his second term ambition this week, a chieftain of the ruling Labour Party (LP), Chief Francis Ogunjumelo, at the weekend said he would contest against Governor Olusegun Mimiko.

This followed the collection of his nomination form for the October 20 election.

In a statement in Akure, the state capital, by his Campaign Coordinator, Sunday Adejuwon, the aspirant said he has paid for and collected the form at the LP National Headquarters in Abuja.

The statement said: “This report became necessary because some party members have been misled into believing that Dr. Mimiko is the sole governorship aspirant of LP in the state.”

Hailing his supporters for standing by him, Ogunjumelo said he would work for victory at the party’s primary election.

He promised to ensure that only a credible aspirant emerges at the primaries.

Ogunjumelo, who is the Lijofi of Osooro land, was to contest against the incumbent senator representing Ondo South District, Boluwaji Kunlere, in last year’s National Assembly election. He was compelled to step down for Kunlere.

•Our measures prevented disaster, says govt From Bisi Oladele, Ibadan

and Orientation Bosun Oladele said the flood affected Odo-Ona/Apata and Oluyole Estate - where two bridges were damaged - as well as Orita Challenge, in Ibadan Southwest and Oluyole Local Government areas.

He said the government would urgently construct another pedestrian bridge to ease movement in the area.

The commissioner explained that the incident exposed some of the buildings blocking water channels, particularly at Orita Challenge.

Oladele said: “It seems as if we are driving the water. It is finding its way. Some of the structures that were not marked for demolition before were exposed and the government would have no choice than to continue with the demolition. But, on the whole, we thank God that no casualty has been recorded.”

In a statement by the Special Ad-

viser to the Governor on Media, Dr. Festus Adedayo, the government said it dispatched a team of commissioners, Special Advisers, the state Emergency Management Agency officials, as well as the state fire fighters to the affected areas, following distress calls from the residents.

The team is expected to submit a report to the governor.

The statement said the team’s report would enable the government to assess areas of intervention as well as boost its flood-fighting mechanisms.

It said: “We are all living witnesses to the flood disaster of August 26, 2011. The government returned to the drawing board. It set up a panel to look into the overt and covert causes of the flood, to recommend appropriate solutions. The panel came out with the list of a total of about 2,500 houses, which it recommended for demolition. But the government, being a humane one, reviewed the number downwards, with the belief

that massive dredging of rivers and streams as well as construction of bridges across the state, would ameliorate the situation. This we did and we thank God that the result is what we have now – a great reduction in the destructive powers of the flood.”

The government said it educated the residents and made a case at the World Bank.

“Because the task of reconstructing these bridges is so massive and is beyond the state government alone, immediately after last year’s flood, the governor met with officials of the World Bank and did a power-point presentation on the case of Ibadan flood disaster. The bank sent its representatives to the state for an assessment. The report has culminated in the bank, with the support of the Federal Ministry of Finance, agreeing in principle to grant the state government N200 million emergency relief, which is almost ready.

“Part of the fund would be spent to build a channel on the 30-kilometre

Ona River and complete the Upper Ogunpa River. It would help the state in its waste management challenges: from storage, collection, transportation to disposal sites, to turn them into sanitary landfills and to begin a waste-to-wealth programme. An absence of these efforts has often been a major cause of flood disasters.”

According to the statement, the government will partner the World Bank on the Eleyele Dam. The report came out after the partnership discovered that the Eleyele dam had not been silted in the last 47 years.

“A little over a week ago, Governor Ajimobi rushed to the World Bank office in Abuja, as a result of the predicted heavy rainfall. He made a presentation to World Bank officials in Washington DC through teleconferencing in Abuja to show the emergency of the Eleyele Dam. This led to the palliative measures taken by the state government in the reconstruction of Eleyele Dam’s broken slabs. Perhaps if this had not been done, the flood would have been more chaotic,” the government said.

ACN: Oni’s, others’ defection to PDP blessing in disguise

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HE Ondo State chapter of the Action Congress of Nigeria (ACN) at the weekend criticised the defection of the former state chairman of Labour Party (LP), Dr. Olaiya Oni, and some of his followers to the Peoples Democratic Party (PDP).

The party commiserated with the families of three Students’ Union Government (SUG) presidents of Federal University of Technology (FUTA) Akure; Adeyemi College of Education (ACE) Ondo; and School of Nursing and Midwifery, Akure, all in Ondo State, who died at the weekend in an accident at Emure-Ile near,

•Party condoles with deceased student leaders’ families From Damisi Ojo, Akure

Akure, the state capital.

Awopegba Oluwaseun (aka DCO), Akintola Abiodun and Oyinkan Olotu were returning from Abuja after attending an award ceremony for Ondo State Governor Olusegun Mimiko by the leadership of the National Association of Nigerian Students (NANS).

In a statement by its Publicity Secretary Rotimi Agbede, ACN described the action of the former LP chairman and his group as a “routine

exercise”.

It noted that the former minister and his political associates, including an aggrieved ACN governorship aspirant, Mr Saka Lawal, had traversed the three main political parties in the last 10 months.

The statement reads: “We take exceptions to the text of his speech condemning the process that led to the emergence of ACN governorship candidate and his attempt to link credible aspirants of the party to his shameless act.

“We are more certain that Dr. Oni

Ajimobi to replicate Aregbesola’s health programme in Oyo

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YO State Governor Abiola Ajimobi has said he would replicate the Walk to Live health programme of Osun State Government.

The governor, in company of his wife, Florence, and his Chief of Staff, Dr. Deolu Akande, spoke IlaOrangun, at the weekend at the sixth health programme.

The National Chairman of the Action Congress of Nigeria (ACN), Chief Bisi Akande, participated in the six-kilometre walk.

The top politician hails from the town.

Ajimobi said the exercise would not only ensure healthy living among the people, it would also help people to work effectively.

The governor identified the activities of the Rauf Aregbesola administration for the development of Osun State as the basis for the attack on him by his enemies.

From Adesoji Adeniyi, Osogbo

He noted that only few governors can walk freely on the street without fear of attack.

Ajimobi described the Walk to Live initiative as another model that should be emulated from the Aregbesola administration.

At the programme, which held at the town’s football field, Aregbesola said the monthly physical fitness exercise has shown that he is healthy, contrary to the rumours by his enemies that he was ill.

He challenged the People Democratic Party (PDP) leaders to walk in any part of the state to show their popularity.

The governor recalled that for over seven years the PDP was in power in Osun State, its officials could not walk freely on the street during the day but only in the night.

Chief Akande listed the advan-

tages of regular exercise, saying it has helped him to overcome arthritis, which is associated with old age.

Other participants include Osun State deputy governor, Otunba Titilayo Laoye-Tomori; Secretary to the Osun State Government, Alhaji Moshood Adeoti; the Chief of Staff to Osun State governor, Alhaji Adegboyega Oyetola; and other top government functionaries from Osun and Oyo states.

The Special Adviser to the Governor on Youths, Sports and Special Needs, Comrade Biyi Odunlade, hailed Aregbesola for the monthly exercise. He said it has encouraged many people to keep fit.

Osun State Football Association Chairman, Chief Taiwo Ogunjobi and FIFA board member, Chief Adegboye Onigbinde, emphasised the need for individuals to exercise their bodies regularly for inherent health benefits.

and his group cannot be of any benefit to any political party other than sowing discord and acrimony. This we have realised very late and tried unsuccessfully to cope with in the last few months.

“It is ironical that these same defectors, who were pumping champagne and praising the national leadership to high heavens for taking the best decision when the governorship ticket was zoned to the North Senatorial District through a process, have turned round to condemn the same process.”

The party noted that though it appreciates the feelings of some aspirants, but explained that “as loyal and dedicated party leaders and stakeholders, they should at least refrain from any act that can compromise the success of the party at the coming election”.

It said the defection would not affect the fortune of the party in the October 20 poll but enable the party to put its house in order.

“Their defection is a good riddance to bad rubbish,” ACN said.

It sympathised with the families of the students and prayed to God to grant them the fortitude to bear the loss.

“We also condoled with the entire students’ movement on the deaths of their fallen colleagues,” the party said.

ACN urged the students’ body to ignore desperate politicians, who are out to win without minding the ‘cost’.

It said: “You must realise that as future leaders, much is expected of you, considering the precarious situation in the country.”

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NEWS

Court remands nursing mother, others in prison for alleged N55m fraud T HE Economic and Financial Crimes Commission (EFCC) yesterday said the Delta State High Court, Asaba has ordered that five suspected fraudsters, including a nursing mother, be remanded in prison custody for alleged N55million fraud.

The suspects are a nursing mother, Nwakaego Oke, Wilson Nwajei, Collins Monday Ehiedu, Habib Momoh and Olakunle Abiodun.

A statement by the Head of Media and Publicity of the commission, Mr. Wilson Uwujaren, said the suspects are managers of the United Bank of Africa, Agbor branch.

The statement said their remand was “sequel to their arraignment by the EFCC on an eight-count charge of stealing and obtaining money by false pretence.

“They are alleged to have stolen N55 million of depositors’ fund, an offence contrary to section 390 of the Criminal Code Cap 17, Vol 2 Laws of Delta State of Nigeria.

“The five accused persons pleaded not guilty to the eight-count charge. Thereafter, counsel to EFCC, Kayode Oni, asked the court to remand the accused persons in prison and fix a date for trial.

“However, attempts by counsel to one of the accused persons to make an oral application for bail on the

From Yusuf Alli, Managing Editor, Northern Operation

basis that she was a nursing mother were rejected by the judge who castigated the lawyer for not doing the proper thing by way of filing an application for bail.

Justice C. O. Ogisi dismissed the defence counsel attempt to wipe up emotions that the 3rd accused person’s child was less than 3 months old.

She said there was no sentiment in law and that she was not a sentimental person.

Justice Ogisi said: “File your application. No sentiment. I am not a sentimental person once I am on this seat.”

She ordered that all the accused persons be remanded in prison custody and adjourned to September 26, 2012 for trial.”

The EFCC gave details of how the suspects landed in court.

The statement added: “The five managers, who are now suspended from the bank, were arrested following a petition from the UBA to the EFCC in which the bank alleged that some of its staff in Agbor Business office converted several customers’ funds meant for Fixed Deposit to

personal use and issued fake deposit certificate to depositors.

“They were also said to have dubiously booked temporary overdraft on the accounts of customers and subsequently converted the funds for their personal use.

“For the duo of Wilson Nwajei and Collins Monday Ehiedu who were further alleged to have siphoned over N50 million from depositors’ accounts, more trauma was to follow as they were both arraigned on a separate 26-count charge before Justice C. O. Ogisi.

“The duo, Business Manager and Relationship Manager respectively, of UBA, Agbor Branch, were said to have obtained over N50 million fraudulently from the bank.

“The two, at various times, converted customers deposit meant to be saved in fixed deposit, to their personal use.

“For instance, Nwajei and his cotraveler were said to have fraudulently converted the sum of N4 million property of United Bank of Africa by booking a temporary overdraft on the account of one Dick Royal Limited without the customer’s consent and fraudulently collected the sum from one Dickson M. Idah, the managing director of

the company under the guise that the money was wrongly credited to the said account.

“In one of the charge, Ehiedu was said to have “on or about the 8th Day of November 2010 at Agbor defrauded and fraudulently converted the sum of N1,077,716 belonging to one David Mike, money he received from a depositor to be saved in a fixed deposit account and diverted same for person use”.

“Nwajei, 37, a graduate of Engineering from the University of Nigeria, Nsukka joined the bank in 2001 as a marketer. He became the Agbor branch manager in 2009.

Ehiedu, a graduate of Edo State University, joined the then Standard Trust Bank, which later metamorphosed into UBA, in 2004.

“In his confessional statement with the EFCC, Ehiedu admitted thus. ‘Some of these funds were supposed to have been fixed. I invested in a forex business of about fifteen million (15 million). It was invested with Sye Capital Ventures Abuja …

This was customer’s money meant for fixed deposit of which I have been paying interest on.

“The sum total which I defrauded UBA is forty eight million and eighty one thousand naira only. I did some investment that failed and promises are there that they will pay me when they start up properly.”

Police arrest banker, customers

By Eric Ikhilae

T

HE Police in Lagos have arrested a senior official of Diamond Bank Plc, Oludare Kazeem, for allegedly colluding with some of the bank’s customers to defraud it.

Kazeem was said to have aided Abike Awosaike (60 years) and Ademola James (55 yrs) to steal about N10 milion from the bank.

He was attached to the bank’s Oregun branch.

They were said to have allegedly committed the fraud in November, last year, although it was discovered much later.

Police investigation revealed that Kazeem assisted James and Awosika in procuring forged statements of accounts from Access and Skye banks with which the customers withdrew N4,5m and N3.5 million from Oregun branch of Diamond bank.

The three were arraigned before the Yaba Magistrate’s Court last Friday on a six-count charge. They pleaded not guilty and were granted bail despite opposition from the prosecutor, Godwin Osunyi.

Osunyi, from the Adekunle Police station, Yaba argued that although the offences are bailable, which carries a minimum of three years upon conviction.

He told the court that James was likely to evade trial having earlier jumped the bail granted him by the Police.

Defence lawyer, Emmanuel Bassey urged the court to discountenance Osunyi’s opposition and admit his clients to bail. He argued that the alleged offences were not only bailable, the court reserved the discretion to decide whether or not to deny bail.

The magistrate, Mrs Sherifat Metapo granted them bail at N1million each with two sureties in similar amount. The sureties are to be gainfully employed and possess evidence of tax payment in the state for three years.

Further hearing has been adjourned to September 8.

Honour for NEXIM Bank CEO

•A bus conveying Nigerians evacuated from Libya by the Federal Government...at the weekend

PHOTO: SOLOMON ADEOLA

EFCC begins trial of Muslim, Christian clerics for diversion of N10m T HE Economic and financial Crimes Commission (EFCC) yesterday said it has arraigned three clerics before Justice M. S. Shu’aibu of the Federal High Court, Yola, Adamawa State on a six-count charge bordering on money laundering and obtaining N10 million by false pretence.

Those on trial are two leaders of the Taraba State chapter of the Muslim Council, Alhaji Inuwa Usman and Alhaji Chindo Bose and a Special Adviser to the State Government on Religious Matters, Rev. John Simon Jatutu.

The Muslim clerics were alleged to have conspired with Rev. Jatutu to divert part of the funds approved towards the celebration of the country’s Golden Jubilee.

A statement by the Head of Media and Publicity of the EFCC, Mr. Wilson Uwujaren, said: “The Taraba State government had in September 2010 approved N42 million for the Christian Association of Nigeria and the

•Alleged N11.3m fraud: couple in trouble

From Yusuf Alli, Managing Editor, Northern Operation

Muslim Council for purposes of the 50th Independence celebration.

“Both faiths shared the money equally with each getting N21million but the three accused persons cornered N10m from the Muslim Council share of the grant and declared only N11million to the council.

“However, members of the council later got wind of the actual amount approved for them, which prompted a petition to the EFCC. “When the charges were read to the accused persons, they pleaded not guilty to all charges.

“Their no guilty plea prompted the prosecution counsel, Al Qasim Jaafar to request the court to fix a date for the commencement of trial.

Jafaar opposed the bail application

by defence counsel, Ukaegbu Onyi, on the grounds that the accused had jumped administrative bail granted them by the Commission.

“However ruling on the bail application, Justice Shuaibu took cognizance of the forthcoming judicial recess and granted the accused persons bail in the sum of N1.5 million each and a surety in like sum.

The EFCC also yesterday said it has arraigned a couple, Dan Fulani and his wife, Gambo Tanimu (a.k.a.

Happiness) before Justice Musa Sale Shuaibu of the Federal High Court, Yola, and Adamawa State on a sixcount charge of conspiracy, money laundering and obtaining by false pretences.

The anti-graft agency said the offence is contrary to Sections 1(a), 17(a) of the Money Laundering

(Prohibition) Act 2004 and Other Related Offences Act 2006.

A statement by the EFCC said “the couple who are chairman and Treasurer respectively of a Cooperative Society in Jalingo, Taraba State allegedly defrauded one Alhaji Idris Tukur, a businessman, of N11.3million under the guise of selling imported rice to him.

“When the charge was read to the accused persons, they pleaded not guilty. Their counsel, P.S. Agabus, immediately urged the court to admit his clients to bail.

He told the court that the accused persons are well known in the community and would not jump bail. “But prosecution counsel, Al Qasim Ja’afar opposed the bail application.

“However, Justice Shu’aibu granted the accused persons bail in the sum of N1million each and a surety in like sum.

“The matter has been adjourned to October 24 for commencement of trial.”

THE Managing Director and Chief Executive Officer (CEO) of the Nigerian Export Import (NEXIM) Bank, Mr. Roberts Orya, has been voted as ‘Best Performing CEO’ by the Centre for Good Governance, Peace and Media Advocacy.

A statement by the centre’s Executive Secretary, Dr. Udenta O. Udenta, said Orya was chosen after a careful assessment.

Udenta said: “Mr. Roberts Orya, on assumption of office as Chief Executive Officer has performed excellently well, especially, in the areas of youth empowerment, employment generation and professional conduct in safeguarding taxpayers’ funds invested by the federal government through NEXIM.” He added that the rating was carried out with due consultations.

He added: “It has become imperatively necessary in line with our mandate to carry out ratings of agencies based on international standard to avail Nigerians the opportunity to assess the present administration from one sector to the other periodically and wish to confirm to Nigerians that the performances of the Nigerian Export-Import Bank (NEXIM) is quite impressive in the last few years.

“The management of the Bank has taken the lead in the areas of youth empowerment, job creation and professional conduct to boost our image both at home and abroad and we encourage every Nigerian saddled with such responsibility to continue to live up to the expectations of all and sundry.”

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EDITORIAL/OPINION EDITORIAL FROM OTHER LAND

COMMENT

Triumph of People Power •Landslide victory for Oshiomhole is a tribute to performance and voters’ vigilance T was hyped as a do-or-die contest, with Charles Ehigie Airhiavbere, the opposition Peoples Democratic Party (PDP) candidate, hoping to oust incumbent Adams Aliyu Oshiomhole of the Action Congress of Nigeria (ACN), in a stunning upset. But it ended as a no-contest, with the Edo people massively voting their choice governor.

With the final result as declared by the Independent National Electoral Commission (INEC), Governor Oshiomhole won by a huge vote share of no less than 75.8 per cent of valid votes cast. He won 477, 478 votes, a whopping 333, 213 more than his closest contestant, PDP’s Airhiavbere, who scored 144, 265 votes.

Other contestants had the following votes: Solomon Edebiri of the All Nigeria People’s Party (ANPP): 3, 642, Roland Izevbuwa of the Congress for Progressive Change (CPC): 2, 793 votes, though he had earlier announced his withdrawal for the ACN candidate; Frank Ukonga of the Social Democratic Mega Party (SDMP): 807 votes, Andrew Igwemoh of Labour Party (LP): 604 votes; and Paul Orumwense, National Conscience Party (NCP): 540 votes.

Aside from Oshiomhole’s huge landslide, he also cleared all the 18 local governments, winning comfortably in all of them.

Even the heavens appeared to have joined in celebrating the Edo governor’s victory, as the skies opened up shortly after the announcement of the result and poured down seeming showers of blessings. But that did not stop massive demonstration in Benin streets, with loud music, shrieks and screams of joy, loud backslapping and vigorous pumping of

I

hands to celebrate the occasion. This was a stark contrast to furious street protests in 2007, when Oshiomhole won the election but it was stolen by the PDP, necessitating litigation before it was retrieved.

The Edo gubernatorial election produced a rational outcome, a democratic norm of rewarding good performance and punishing governmental failures.

But that was not achieved because the INEC conducted a rancour-free election; or because it forestalled those criminal acts of systemic rigging that key PDP players were hoping to deploy in the election.

Indeed, it was a wonder on what basis the opposition would have won that election: on the basis of sweeping performance of the pre-Oshiomhole PDP government, or on the convincing show of the current PDP Federal Government?

This feat of rewarding democratic performance was achieved in spite of numerous plots to frustrate free and transparent polling. In the absence of concrete facts, it would be extreme to claim INEC was actively complicit in the attempt at thwarting the people’s will; an attempt that, this time, so gloriously backfired. But it is fair criticism to charge INEC for condemnable failure to plug all those systemic loopholes that ruling parties seize to skew elections and fiddle the vote. At the end of it all, it was triumph for the courageous Edo people, who manned their vote and rewarded a government that approximated their dreams with a hefty mandate for second term.

So, as the people rejoice, it is sad yet to know that INEC is still not institutionally strong enough to deliver free elections.

If the Edo people had not been determined and vigilant, the PDP desperadoes would still have attempted to skew

the result by massive disenfranchisement, massive illegal thumb-printing and sundry satanic tricks. However, the good news is that the security agencies appeared to have held firm to their constitutional duties of securing the environment for credible elections. Still, it is moot point if it is wise to deploy soldiers so visibly in an election.

With this glorious victory, we congratulate Governor Oshiomhole who, by his performance in office and ability to galvanise his people for re-election, has struck a big blow for democracy. He should use his second term to wrought more wonders.

But free and fair elections would not be here to stay until INEC is sufficiently strengthened to deliver such. Indeed, terms like “people should secure their votes” are ample evidence that it is not yet victory on that score. To preserve this democracy, free and fair elections must become systemic and routine.

‘With this glorious victory, we congratulate Governor Oshiomhole who, by his performance in office and ability to galvanise his people for reelection, has struck a big blow for democracy. He should use his second term to wrought more wonders. But free and fair elections would not be here to stay until INEC is sufficiently strengthened to deliver such’

As Mukhtar steps in ...

•We congratulate her and wish her success in her mission to ‘cleanse’ the judiciary

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USTICE Aloma Mariam Mukhtar assumes office as the first female and 13th Chief Justice of Nigeria (CJN) today. She takes over from retiring Justice Dahiru Musdapher, who clocked the mandatory retirement age of 70 yesterday. She is coming into office at a time when the judiciary is seen as a compromised institution. The judiciary, in recent times, suffered from perceived corruption and partisanship arising from conflicting and sometimes unreasonable judgments. We demand, from the new CJN, urgent and effective reforms that would take the judiciary away from these vices and others, so as to improve its low estimation in the court of public opinion.

Justice Mukhtar should take a cue from Justice John Roberts of the United States who broke ranks with his colleagues to redeem the institution of the judiciary

‘Justice Mukhtar, like her predecessors, has promised to weed out ‘bad eggs’ from the judiciary through ‘internal cleansing’. Will she be able to do this? Time will tell even though, nothing short of this is expected from her before her retirement in 2014’

from public ridicule in America. He looked for the law to justify a leftist position when he revoked the contentious Taxation Law. Though we are aware of Mukhtar’s courageous dissenting minority judgment alongside Justices George Oguntade (rtd) and Walter Onoghen, in the Yar’Adua/Buhari election petition legal dispute in 2007 in which the trio held that there was substantial non-compliance with the Electoral Act (2006), claiming that this vitiated the election of the late President. That was a rare display of courage, but she must realise that the nation requires more of such radical judicial activism and integrity as displayed in 2007 and by Justice Roberts, to take the judiciary to the next level under her reign as CJN. During her stewardship, it would be pleasant to see the judiciary give the legislative arm of government a healthy competition by hearkening to its hitherto unheralded function of also being a lawmaking institution through sound and scholarly judicial pronouncements. We want Nigerians to be made to feel that the nation has moved from legal justice to the era of social justice. The new CJN should be ready to introduce judicial innovations that will promote public interest litigations at the state’s expense. After all, the judiciary is made for the society and not the other way round.

The new CJN was born on November 20, 1944; she attended St. George’s Primary School, Zaria; St. Bartholomew’s School, Wusasa, Zaria, from 1950 and 1957; Rossholme School for Girls, East

Brent, Somerset, England, where she sat for her General Certificate of Education (Ordinary Level) in 1962; Reading Technical College, Berkshire England. Later, she went to Gibson and Weldon College of Law where she was called to the English Bar in Absentia in November, 1966. Mukhtar was called to the Nigerian Bar on June 26, 1967.

She started her legal career by working as a pupil state counsel, Ministry of Justice, Northern Nigeria in 1967; Office of the Legal Draftsman, Interim Common Services Agency, Magistrate Grade I, North Eastern State Government in 1971; Chief Registrar, Kano State Government Judiciary, 1973; Judge of the High Court of Kano State, 1977-1987; Justice of the Court of Appeal, 1987-1993; presiding justice of the Court of Appeal, 1993-2005; and justice of the Supreme Court from June 2005 to date. She is the most senior Justice of the Supreme Court.

Justice Mukhtar has been a life Bencher since 1993 and a life member of the Federation of Women Lawyers.

In 2003, she was honoured by the International Association of Women Lawyers, and in 2004, she was conferred with the Fellowship of the Nigerian Law School.

Justice Mukhtar, like her predecessors, has promised to weed out ‘bad eggs’ from the judiciary through ‘internal cleansing’. Will she be able to do this? Time will tell even though, nothing short of this is expected from her before her retirement in 2014.

The Folly of Sudan and South Sudan

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HEN South Sudan declared independence from Sudan one year ago, it was well understood that the struggle to build a functioning new state would be long and hard. What was not understood was how much both countries would do to sabotage each other — and themselves — in a destructive game of cross-border attacks and economic showdowns.

With independence, South Sudan inherited most of the former country’s oil fields. But South Sudan is landlocked and Sudan controls the pipeline needed to get that oil — the lifeblood for both governments — to market. In January, South Sudan shut down oil production in a dispute with Sudan over how much it should pay to transport its crude oil through Sudan’s pipeline.

In the months since, the two countries still have not agreed on a formula to share oil profits and each seems to be waiting for the other to blink — a fool’s game if there ever was one.

South Sudan’s economy was weak to begin with, and Sudan’s is now in free fall. Hunger is getting worse in both places, and so is political instability.

Deprived of oil income, Sudan last month announced that it could no longer subsidize gas, sending prices for fuel and other goods soaring. President Omar Hassan al-Bashir is having trouble paying his army. And over the past few weeks, thousands of protesters have demonstrated against the government, prompting a crackdown.

In South Sudan, the government has begun to get tougher about collecting income taxes to finance basic services. People are understandably reluctant to pay when the government is known for rampant mismanagement and corruption. President Salva Kiir recently urged officials to return $4 billion in “stolen” government money. Officials also suggested that any budget shortfall would be filled by international donors. So far, that doesn’t seem to be happening, and shouldn’t. South Sudan, along with Sudan, created this crisis, and they have the means to fix it.

The two sides fought a civil war that killed more than two million people before a peace deal in 2005. In the past year, they barely avoided a return to all-out conflict. Violence continues in Darfur and in the Nuba Mountains of Sudan, a rebel-held area where the Khartoum government is trying to bomb and starve the people into submission. Thousands have been displaced.

In April, South Sudan’s army occupied an oil-producing region claimed by Sudan and brought the countries close to a new war. South Sudan backed off after the United Nations threatened sanctions.

The joy that accompanied South Sudan’s hard-won freedom has faded. The United States and other countries that advocated independence need to keep working with both sides to resolve disputes over oil, borders and protections for minorities. There’s no changing the reality that these two nations are mutually dependent, now and long into the future.

– New York Times

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

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THE NATION MONDAY, JULY 16, 2012

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9EDITORIAL/OPINION

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IR: This is a clarion call to all stakeholders in Nigerian polytechnic education and a passionate appeal to those responsible for quality assurance in this sub-sector of higher learning. My main concern, which is the focus of this piece, is the teaching /lecturing methodology that most polytechnic lecturers, with the exception of a few, employ in imparting knowledge to their students. Most of us in the discipline of Arts /Humanities go through the rigours of having to cram loads and loads of notes in order to graduate with a competitive grade. Even at that, most of us still finish up far below our expectations, not necessarily because of lack of effort but because something is wrong with the system.

Most polytechnic lecturers use teaching methods that makes it difficult for students to think critically and recognize the complexity of the course content. Most notes are dictated and in some cases, photocopied by students. This is quite understandable in any higher institution

IR: The current security challenges facing the nation have again been brought to the fore with the killing of a Senator and state lawmaker who are both from Plateau state by Fulani herdsmen. How did we find ourselves in such a sorry state? We need to look at this issue holistically if we are to get solutions to this hydra-headed monster that currently confronts us.

The first way to tackle the security challenges that we face is to do something about the level of illiteracy and ignorance in the North. I heard the other day on television that there are nine million Almajiris in the North.

These are people without formal education and no prospect for the future; they are a ready army for the Boko Haram insurgency. Let’s build more schools in the North and make it a criminal offence for any parent to deny his/her child western education. This education should also be free so that nobody uses poverty as an excuse.

Secondly, our security agencies should be empowered with the latest technological gadgets to apprehend these criminals. I sometimes wonder what our President discusses with his

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Polytechnic education and their methodology of learning but some polytechnic lecturers especially in Humanities will demand that you give them back in the examinations, the exact content of the notes given to you in a word -for-word format. In some state-owned polytechnics where distorted handouts and textbooks are sold, students are not expected to give the examiner anything different from what they compiled in their so called handouts.

Is that what learning in a polytechnic meant to be?

Cramming causes unnecessary and heavy burden on the brain especially when the volume of the area to be covered is wide. Not all students can

cram and besides, memorizing without understanding is not the best way to learn. Though for those who are good at it, it may be sufficient for success within the walls of a classroom but not in a competitive labour market where you will be faced with the reality of applying whatever you have learnt in the school.

Or, how do you apply the knowledge you don’t even have?

All you are armed with as a graduate is one crammed junk that might even vanish before you get to the crowded labour market where even the best roam the street jobless. Blind cramming leads very often to forgetting whatever is memorized and

most students are always at a loss to recollect.

I don’t know why memorisation should become more important than understanding and intelligence.

When students understand the material that they are studying rather than memorizing facts, they are more likely to understand the material and the application should not be too difficult. A student should study to understand. This gives a sense of fulfilment because it makes them reason critically. Any time I am successful in understanding a topic to a satisfactory level after consultative study, I usually have this wider view of the complexity of the

Breaking the Boko Haram foreign counterparts when he goes on foreign trips. He should take a cue from the US which has made great use of technology in the war against terrorism. One thing every Nigerian must know by now is that Boko Haram is a creation of the northern political elite. How come between 2009 and 2011 nobody heard anything from Boko Haram until after the 2011 elections in which the northern elite felt cheated?

Why are there so much struggles, rancour and disagreement over which section of Nigeria produces the next President? It is not about service. For example, the North has ruled this country for 38 years, yet the region with the highest poverty level is the North. This shows that their leaders went there to serve themselves and not their people; their people are mere pawns in the struggle for power. There is therefore a nexus between the fight against corruption and the elimination of the struggle about which region produces the next President.

A popular adage says that an “idle mind is the devil’s workshop”. We all know that agriculture is the mainstay of the economy of the North. Let the Federal government invest in

agriculture, give soft loans to farmers without interest and ensure that the fertilizer programme is overhauled so that it can reach the ordinary farmers who need it. This will go a long way to create jobs and reduce the number of potential recruits for the sect.

President Jonathan cannot, in all sincerity, tell us that he does not know those behind these bombings. Let him ask Chief Olusegun Obasanjo how he dealt with IBB and other members of the mafia that brought him to power.

Boko Haram cannot be compared to the Niger Delta militants. The Niger Delta militants had a purpose, an ideology, and a clearly defined aim. Boko Haram lacks all of these qualities, so President Jonathan should not negotiate with them. He should adopt the US hard line posture which states that America does not negotiate with terrorists. Nigeria should not negotiate with terrorists.

• Peter Ovie Akus University of Port Harcourt

content and in turn, this enables me to demonstrate and explain how concepts are related even to a kid!

What hope have we in a system where you have to ‘upload’ and ‘download’ verbatim from a single skeletal source? Cramming is not suitable for development of thinking, reasoning, creativity and discovery, especially in a discipline where all these elements are needed in sufficient quantity. If this is what learning is all about in polytechnics, then, courses under business, management and humanities should be cut off from polytechnic programmes and be restricted to universities!

Most university lecturers will give you course content and allow you to make use of any textbook, recommended or not, including e-book and materials. Their focus is your intelligence and understanding of the subject under focus; not how well you can cram. Do you then blame those that say polytechnic’s Higher National Diploma cannot be equated to a university degree?

While I am not condemning memorisation in its entirety as a method of learning, I however believe that its importance should not be overrated. It would be more useful to those in Science and Mathematical disciplines where large numbers of formulae, terms and definitions are to be committed to the memory. This is because deductive methods are very useful in those disciplines and memorisation is a key element of a deductive method of learning. Those of us in the Humanities should be spared this trouble.

• Kesene, Moureen Ndidi, Federal Polytechnic, Bida, Niger State.

Only God can heal Nigeria

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IR: Only a genuine repentance to God in prayer can ensure permanent healing of Nigeria and Nigerians. It is also regrettable that Nigeria had been characterized by pride, wickedness and disregard to God, which attested to the fact that our nation is sick and needs God’s intervention.

If the church, government, leaders and the followers can see ourself as God sees us and try to amend our ways and follow the standard of God while the clerics preach the undiluted message of the kingdom of God, God says He is ready to manifest His Glory on all of us, by

cleansing us from the blemishes of the worldliness and renew us … then, the peace of God and divine prosperity will be given to us automatically.

I am convinced that, God is ready to help Nigeria, if Nigerians, who are called by His name, will humble themselves, and pray and seek His face and turn from their wicked way. Then, God will hear from heaven and will forgive the sins of Nigerians and heal the land.

If the leaders and the governed can go back to the word of the Bible, He (God) will refill His Glory on all of us, with a divine comfort. Also the clerics should

speak and preach the true messages of God to the church and the nation and to open the eyes of the people to the biblical ways of life and the true way of the kingdom of God … while the Christians in politics should know that they are there to correct the system and not to follow the likes of the unbelievers.

Nigerians should pray that God should instil His (God) fear upon us and lay off shamelessness that have enveloped a lot of Nigerians towards disobeying the word of God. • Pastor Raph Ola-Adesina Ibadan, Oyo State

21

THE NATION MONDAY, JULY 16, 2012

EDITORIAL/OPINION

W

HAT to do with the albatross of a large and unwieldy Civil Service has engaged the attention of Nigerian Presidents and technocrats, tasking their intelligence to the utmost?

Standing at several scores of thousands and gulping about N1 trillion in salaries and other emoluments yearly, the story of the Nigerian Civil Service should have been cheering and a veritable source of immense potential but it is far from that. In fact, it is such a grossly inefficient mass and a parasitic burden sucking the nation’s resources dry and begging to be pared down or shed every time.

A high degree of insolence, laziness, exasperating indiscipline that makes the body crawl, low morale/productivity and uninspiring leadership, offices that are shrines of tortuous bureaucracy, an array of old tables and chairs creaking like happy mice and shelves sagging and threatening to collapse under tomes of dog-eared files spewing out blackening papers held together with all manner of funny ropes, threads and wornout, inelastic rubber bands are features in several federal and state government offices. In essence, there is so much laziness and laxity that can never be accepted in the private sector that operate in the civil and public service.

Splitting and yawning cement floors on which are littered ledgers and documents that had either been badly chewed by rodents and cockroaches or wetted by the rain over time through leaking roofs and windows bereft of panes and glasses.

Everywhere, drawers that are coming apart assault the eyes and on notice boards you could almost see circulars from the Lugardian era or last century.

Amidst this confusion, you see a crop of civil servants chatting their heads off and throwing banters all day long while work lags behind or stands still. A couple of them will have their legs stretched out on the tables in from of them snoring away the time under some antiquity of fans struggling to oscillate and wheeze out stifling air. Who cares?

With the strength of the Oyo State Civil Service standing at 38,000, the current administration inherited one of the largest government work forces in Nigeria and the largest in the south western part of the country after Lagos State. Smelling a rat, the immediate past administration headed by Otunba Christopher Alao-Akala had engaged the services of a human resources management consulting firm called Captain Consultin, to carry out a thorough audit of records of all government staff in the state, vis a vis their offices and positions.

After several months of painstaking investigations, the staff auditing firm unearthed a can of norms: about 3,000 so -called government staff had been drawing salaries and allowances running into several millions of naira monthly from the coffers of the state government illegally for several years! Among them were ghost workers or staff with no letters of appointment, retirees or sacked staff who were still drawing salaries several years after their retirement and lay-off as the case may be, staff with forged certificates, falsified ages and outstanding

C

HIDI Amuta flourished with so much fallacy in his interview published in Businessday newspaper of Monday May 28. In his appraisal of issues of governance both at the federal level, South-east, and Abia, he overflowed with an armoury of mud in a desperate bid to denigrate the credentials of Governor Theodore A. Orji, whom he accused of deception, false claims, poverty and not delivering the dividends of democracy.

Those who are not familiar with Amuta’s antecedents may be carried away by the hogwash he postulated for argument and may even mistake him for a statesman or an idealistic academic spurred by social conscience. Recall that Amuta was the contract historian, media racketeer and professional revisionist, notorious for his despicable memoir on Babangida: Prince of the Niger.

This memoir celebrated the decay in the land vide the “settlement syndrome”, the vanishing $12.4 Gulf war oil windfall, the wholesale corruption and negation of the core values of the land, the institution of patronage as a vital qualification for career advancement in the country, and the enthronement of a culture of impunity, triumph of sin over morality.

Following the consequences of the June 12 election debacle, Amuta, quickly cobbled a rejoinder in which he repudiated the book, and like a typical literary hireling, proceeded on a 360 degrees summersault on everything he had affirmed on Babangida without apologising or explaining to Nigerians who he misled with that hagiography.

Not too long ago, he made so much noise about being a ‘Marxist’. Then his hobbyhorse was to scold the likes of Chinweizu, Onwuchekwa Jemie, Ihechukwu Madubuike, Charles Nnolim, Sunday Anozie, Wole Soyinka and others for being capitalist and right wing in orientation. That was when he never finished a sentence without oozing such words as “praxis” and “dialectics”. But no sooner had Amuta got hired as the Director of Babangida’s DFRRI in the old Imo State than he bid farewell to the Marxist-Leninist mumbo jumbo. Ironically, there was nothing on record that he did for his own (Ndi Abia) people by way of infrastructural empowerment with all the humongous funds at his disposal until he was kicked out ignobly from DFRRI. Chidi Amuta, mischievously passed a self evaluative judgment on Governor TA Orji which did not tally with the facts on the ground. As a consummate and thorough bred statesman, the governor has always extended an olive branch to and welcomed the opposition, including, faultfinders,

‘As a hard boiled bureaucrat versed with the nuances of critical and developmental agenda, Dr TA Orji, fell back on his time tested track record of reflective planning that lays the basis of solid and quality infrastructures’

Before the dust settles on Oyo’s sacked workers

By Gregory Adebayo

disciplinary cases and several others with various deficiencies, discrepancies and violations of rules of their engagement. A comprehensive list of their names was drawn up and submitted to ex-Governor Akala who apparently could not act on it since it was submitted in the twilight of his departure from office.

Fighting a political battle to retain his office, Akala had no choice but to buckle in the implementation of the report he authored.

After taking over, Governor Abiola Ajimobi was faced with two options over the matter: to boot out the indicted workers, thus sanitizing the state civil service and relieve the state government of the unpleasant, parasitic burden of doling millions of naira in monthly salaries to ghost workers or retain them and continue to shell out millions of naira. The latter course also carries the added threat of corrupting the integrity of the state civil state, lowering the morale of, and polluting the rank and file of conscientious and dutiful workers in the state.

Moreover, such step would clearly be against the principles of equity and fair-play.

Even in taking the hard and painful choice of a sack, the Oyo State government tempered it with due process by allowing for a fair-hearing. A panel was constituted and the workers pencilled down for the rationalisation exercise were allowed to defend themselves. Names of those who were absolved and who had good cases were struck off the list and the remainders, about 3,000 in all, were shown the way out.

Even after the sack, in response to clamorous claims of unjustifiable sack by the affected civil servants, an 11-man committee headed by the state attorney-general and commissioner for justice, Adebayo Ojo was set up. This panel has a representative of the Nigeria Labour Congress (NLC) and the Nigeria Bar Association as members.

Actually, an unbiased post-mortem of the exercise will reveal that there is nothing wrong in purging its work force of the aforementioned categories of defective staff at this time.

Corruption of whatever guise is like a cancer and when allowed to remain in a system, destroys every good part of the system.

The federal and other state governments too carry out such periodic staff auditing to fish out ghost workers in their services.

In the one done by the Oyo State government, two categories of civil servants were affected, (a) those employed into the state civil service with falsified age claims and certificates, (b) ghost workers who had no letters of appointment or had been retired

but still had their names on government’s payroll, as well as workers who had disciplinary cases against them.

There is way that a government which wants to run an efficient civil service and take its state and it people to Eldorado in 2015 can continue to harbour these sets of staff in its employ. In point of fact, the Oyo State government, all other state governments and the Federal Government, should probe further to uncover the sharp practices used in ‘loading’ payrolls in their departments, ministries, units and offices, especially in the rural areas and establish more stringent rules of engaging civil servants not only to deal with the general lax and laxity in the Nigerian Civil Service is noted and notorious for, but to get value for the money being paid out as salaries to their workers.

It is most unwise for a government to be talking so much about increasing its Internally Generated Revenue (IGR) and generally boosting its economy and finance without plugging the loopholes in its house. By the time it succeeds in boosting its IGR and making more money through other means, the hard-earned money would simply disappear through the unplugged loopholes. At a time when financial resources and earnings are dwindling and many projects are begging to be executed, it does not make sense to pay ghost workers.

What the Oyo State government has done therefore is most commendable so that when the state’s IGR is boosted as planned, instead of going for settlement of ever-increasing ghost workers’ salary bill, falsifiers of ages and certificates, the money would be used to execute projects, welfare facilities and firms for the betterment of the general civil populace in the state and provide employment for the jobless. More importantly, it is a morale-booster for righteousness and a hard knock for fraud and corruption which this society is trying to fight.

• Adebayo is a lecturer at the University of Ibadan.

‘The latter course also carries the added threat of corrupting the integrity of the state civil state, lowering the morale of, and polluting the rank and file of conscientious and dutiful workers in the state’

Still on Amuta’s appraisal of Abia

By Chinyemike Torti moaners, grumblers for an inclusive and anti-exclusionary ideal government that will move Abia forward.

According to the governor, everyone is welcomed, nothing is unimportant, and no one is insubstantial. The pivotal role of the opposition party, pressure and interest groups is recognised in all constitutional democracies worldwide, as they enliven the market place of ideas, debates and well thought-out alternative policy options to governance.

Governor TA Orji exhorts that the language of discourse should be bereft of verbiage, barefaced falsehood, puerile propaganda, unwholesome and inflammatory utterances, reminiscent of the bourbons, who never seemed to learn from the lessons of history. Problems that call for clear headed and strategic thinking should not be reduced to a pedestrian level of discourse that could undermine the integrity and security of the state.

This business of awarding pass, fail, excellence or average points, did not include the criteria of measurement adopted

by Amuta.

Poser is: what were the benchmarks adopted to evaluate the Abia state governor who by popular acclaim and all indices of best governance practice, has gone beyond the call of duty to deliver the dividends of democracy to his constituents?

Gone are the days of rule of thumb appraisals of critics who named or shamed politicians according to subjective indices.

Dr TA Orji, a self effacing and thoroughbred administrator is not given to razzmatazz and fanfare of so called ‘action governors’ whose predilection is to hug the klieg lights. Rather with an unflappable calmness, he devotes his energies and resources to uplifting the socio-economic, well being of Ndi Abia.

A few samplers would do. Recall that, Abia not too long ago, was a byword for kidnapping, stagnation, confrontation, divisions along various ethnic dichotomies, youth restiveness, killings, thuggery and mayhem. That is now history. The administration preceding him left a lot of muck accumulated for eight years vide phoney projects which were launched with grandeur, but added no value to the lives of the people. For all the pomp and flourish that defined the style of his predecessor, we never had a functional secretariat, nor government house. In place was a collection of match box type bungalows clustered in boys quarter style devoid of aesthetics. It is Dr TA Orji that has commenced work on the construction of a befitting government house, an international conference centre and the new Ubani main market all in one fell swoop. In the days of yore, civil service was devalued and governance transmuted into a Hobbesian structure which diminished personal worth.

Even though the ‘master strategist’ was styled an ‘action governor’ the legacy he left was institutional decay, pork

barrel politics, infrastructural deficit, mountains of debt [29billion naira], unpaid salaries, and other tell tale signs of declivity.

Because, Abia had nothing to show for more than its 20 years of existence, OCHENDO had to literally commence from ground zero, to put together the building blocks that would yield the dividends of democracy in a well thought out and structured template shorn of showmanship. As a hard boiled bureaucrat versed with the nuances of critical and developmental agenda, Dr TA Orji, fell back on his time tested track record of reflective planning that lays the basis of solid and quality infrastructures.

It is against this background that any objective appraisal of the scorecard of the governor would be better appreciated.

Infrastructure is at the heart of development and OCHENDO has been up and about putting things in place. No sooner had the dry season abated than he commissioned contractors on site to hit the ground running.

The magnitude of civil works currently going on at Aba and elsewhere is a clear manifestation of His Excellency’s determination to construct highways that meet the tests of time. For instance, the Port Harcourt road, Aba; UmuahiaIkot Ekpene, Bende-Ohafia, Umuahia-Ohafia-Arochukwu, all federal roads have been engaged in a massive reconstruction and civil works that are on-going. And that is just a tip of the iceberg. Today, civil works going on in state and urban roads include, Nkata-Alike-Umuahia road, construction of UmuezeAgbo-Ubani road, dualisation of Tower-Isieke, Ibeku road, including the street lighting.

Governor TA Orji has since commissioned the following roads in Aba: Ukwu Mango, Old Express/SAMEK, Abia Polytechnic pedestrian crossing, Danfodio road east.

Same for the following roads in Umuahia: the Umuafai, Agbama, Okwoyi road, Umukabia road, Ohuhu.

In the health sector, the governor has laid a solid template for sustainable growth. For instance it has collaborated with an Indian health diagnostic company, MECURE in the building of global standard diagnostic centres in Aba and Umuahia. These facilities are configured with their overseas facility and surgical operations are done through satellite links. All the expensive visits to England, U.S.A., India and China for medical treatment are now over. Since the diagnostic centres commenced operation in the state, it has become a Mecca for medical tourism, as patients countrywide have been patronising the diagnostic centres for their various health challenges and have been pleased with the quality of services received.

Other sectors like agriculture, housing, energy, education, security are undergoing turn around. The state may not have attained an Eldorado, the strains of • Hallelujah chorus are however being chimed.

THE NATION MONDAY, JULY 16, 2012

22

EDITORIAL/OPINION

W

ITHOUT doubt, the killings in Jos, Plateau State are getting out of hand. This conclusion is not necessarily borne out of the massacre of more than 140 people in the 10 villages attacked last weekend by suspected herdsmen or the Boko Haram sect that has claimed responsibility.

Neither is it because of the killing of a Senator and majority leader of the state House of assembly. Before now, thousands had been killed in the attacks which are rooted in ethnicity, religion and politics.

Perhaps, before this article is published, we may yet be treated to another orgy of violence in that state once reputed for its tranquility. Not unexpectedly, Jos has assumed the character of the state of nature where life has become nasty, short and brutish. It is now, a similitude of the survival of the fittest; a situation that forced medieval men into a social contract with a sovereign. By that reciprocity, man surrendered his powers to the government and in turn expected protection.

It involved rights, duties and obligations.

Events in that state are seriously throwing to question, the continued relevance of this philosophical explanation for the origin of modern governments. And if such events serve as constant reminders to the inability or incapacity of government to fulfill this primary duty, what options are there to the citizens: repudiate such a contract and contend with the vicissitudes of nature or what?

That is the uncanny dilemma presented by the volatile state of insecurity in Jos. It should instruct that we can allow that madness to continue at great peril.

Coming at a time the affected local governments are still under a state of emergency, the attacks have all the trappings of desperation and vengeance. The invaders, dressed in military and police uniforms with bullet proof vests, were on a mission to annihilate any living organism in the affected communities.

They had a field day selectively massacring hapless children and women before blowing down their houses. And by the time they were done 10 villages had been reduced to rubbles, though the Special Task Force claimed it killed 21 of the invaders and lost two of its men. The manner of the killings suggests that those behind them are on a genocide mission. That is why women and children are their greatest targets. When you kill women and children and destroy their homes, what else is left of humanity? Such is the nature of

Emeka OMEIHE 08121971199 email: EmekaOmeihe@yahoo.com

Issues from Jos killings the security challenges in that state.

Not done with this level of destruction, they were to ambush those who dared to bury the dead and sent many more to their early graves despite the heavy presence of the Special Task Force on security in the state.

It is therefore obvious that there is more to these attacks than ordinarily meets the eyes.

And any hope of the attacks abating may turn out as an exercise in wishful thinking. It is not enough therefore for President Jonathan, the leadership of the National Assembly and the Arewa Consultative Forum to condemn the killings. Neither is it sufficient to ask security agencies to fish out the perpetrators. We have become so much used to such talks and condemnations that they now add up to nothing.

We are tired of the unending season of condemnations and condolences. Government must as a matter of compelling imperative, proceed beyond this pontification and demonstrate sufficient capacity to tame the monster. The unabating killings constitute a serious indictment on the Jonathan regime. That is why nobody took his spokesman, Rueben Abati serious when he sought to demonstrate the resolve of the government to check impunity through the appointment of a new National Security Adviser (NSA).

First, the attacks came after the NSA visited Jos, held meetings with the feuding groups and announced to the nation that he is in contact with the Boko Haram sect and they were ready to negotiate. Coming on the heels of his visit, the killings indicate that no progress has been made in that direction. Secondly, the Boko Haram sect has even come out to clearly disown him. The sects leader Abul Qaqa in a statement said “the claim made by the Na-

I

HATE calculations right from my kindergarten days.

I was then good at 1+2=3 and some simple multiplications that did not go beyond 2x3=6.

Anything that goes beyond this looked more of Mandarin to me. I later found myself in a state of cognitive dissonance at Kofar Nassarawa Primary School when figures were slowly juxtaposed with alphabets.

In my college and university days, nothing significantly changed. Maths remained like cockroach to me. But by sheer providence of objectives questions, I ‘rigged’ my way to become sophomore when I passed Maths for Social Science with E during my university days. Can you see OBJ’s (read Obasanjo if you like) rigging power?

Attahiru Jega (yes, Jega, when he was the VC of BUK) then signed my certificate (of return)!

Today’s discourse is not mainly about Maths but rather about the calculation of loot and setting an agenda for looters. Looting is not alien to Nigeria and Nigerians. It is like a trait in our genetic makeup which makes us vintage Nigerians. A shoe-shiner can rub Stella Pomade on your shoes as Kiwi neutral. A sugarcane seller will palm foamy part of the cane on naive kids as the sweatiest part. A tax collector will print his personal invoice.

Construction companies will tamper with the initial contract specification or use low calibre metal rods on overhead bridge in order accommodate 15 percent kickback. This is how we draw ourselves back.

Now let us steer the discourse back to the issue of calculation. I was really amazed recently when I read a tweet revealing the mind-blowing power of a billion naira. The tweet says if a person steals N2 billion, and he is spending N50,000 daily, it will take him 100 years to

‘Life expectancy in Nigeria is just about 50 years. So this makes it somewhat impossible for a looter to live for 100 years, that is, even if he began stealing public funds when he was being pushed in a buggy. The 10 billion naira Tafa Balogun loot could take him centuries to spend. James Ibori loot will take him up to the new millennium. Abacha loot, which is calculated in billions of dollars, could even last for eternity’

tional Security Adviser to President Goodluck Jonathan, Mr. Sambo Dasuki, is a lie and has no iota of truth” It is either the NSA lied as claimed by the sect or it lied against him. Which ever the case, the purport of this is that the NSA is yet to secure the confidence of the sect. The sect further congratulated itself for the success it recorded in the attack on Christians in Barkin Ladi and Riyom whereby “security agents, Christians and two state and national assembly members were killed” Promising more attacks on Christians, it urged them to embrace Islam as their goal is to force Christians out of the country.

These statements are very weighty and say much about the mortal danger posed to the corporate existence of the country by this criminal sect. Yet you hear some self-serving people talk of engaging them in negotiations. Such people are quick to point to events in Iraq and Afghanistan as evidence of countries where maximum force proved ineffective in subduing such uprisings. But in making such comparisons, they lost sight of the substantial differences between those situations and what we have here. The countries they use as reference points are essentially Islamic countries. Nigeria is not and will never be. They were at no time involved in the senseless killings and bombing of churches of the local population. Their target was the foreign countries which they rightly considered invaders. Their resistance enjoyed the support of the local population but Boko Haram does not enjoy such support given that Muslims have publicly denounced them. So it is incongruous to use events in those countries or even Libya as

the basis for the pessimism that Boko Haram cannot be subdued and the only way out is to talk to them. Talk to them so that they will not run Christians out of the country? It is also possible that Boko Haram has no hands in the Jos killings. It may have appropriated it in the hope that the high casualty level will boost its criminal profile. This is a possibility.

Accounts of residents speak of the invaders (Fulani herdsmen) attacking them from the mountains. It is also possible that Boko Haram may have infiltrated the ranks of the herdsmen who have been in constant conflict with the local population. After all, the topography of the area shares much in common with what we see in Afghanistan. It may well be that Boko Haram has in part, relocated to the mountains. That would be bad news for the sacked villages as it will be foolhardy to expect the attacks to abate.

Government can rise to this challenge through aerial monitoring of the mountains.

Using helicopters and other hi-tech equipment that are not in short supply today, it can restore hope to the famished villagers who are now afraid to go to farms for fear of being killed. Beyond that, the villagers must be trained somehow in self defense. They must be organized and assisted to form vigilante groups to protect themselves. If the invaders are aware that such attacks can be repelled, they will be less inclined to embark on them.

But the source of the high caliber weapons, uniforms and bullet proof vests the invaders use during such attacks must be thoroughly investigated.

‘Government can rise to this challenge through aerial monitoring of the mountains. Using helicopters and other hi-tech equipment that are not in short supply today, it can restore hope to the famished villagers who are now afraid to go to farms for fear of being killed’

Agenda for looters

By Jaafar Jaafar spend the money. You see, from invective, rumour, humour, down to preaching, one sees all manner of stories in the social media. When your mind got wounded by a wildest rumour today, you may be healed tomorrow with a dose of fact. Such is the nature of social media.

Despite my congenital numero-phobia, I had to make the calculations to erase the doubt in my mind. Here we go: 365 days make a year. Yes. So if you spend N50,000 daily for 365 days, you will spend a total sum of N18, 250,000. Right? When you multiply N18, 250,000 by 100 (years), you will arrive at N1,825,000,000. Still, you have a remaining N175 million. So if one wishes to be generous, one can add 25 days ‘accrued’ from the 25 leap years in every century. With just the leap year spoil, you can come up with ‘something’ that can drill a couple of boreholes at Ikare-Akoko or build a ward at Yadakunya Leprosy Hospital.

Dear looter, do you know how many dialysis machines N1 billion can buy? I learn that the cost of dialysis machine is in the region of $15,000 (N2.4 million) to $6,000 (N9 million). So if you divide one billion by 2.4 million, you will arrive at about 416 million units of dialysis machines.

Isn’t this amount more than enough to decorate our hospitals with dialysis and X-ray machines?

Here, a looter who stole N2 billion can save two things: lives and one billion naira. If they can withdraw the money from your numerous proxy accounts or haul back their loot from the Swiss vaults, many people with renal problem, who otherwise would suffer to death, can be saved. In Nigeria, you will think buying the equipment is more difficult than buying drones or owning nuclear technology. Why don’t we improve the standard of our hospitals this year, and then focus on another problem the following year?

There are many members of the National Assembly who can give out N1 billion the way we give N20 donation for mosque maintenance or offertory in church. In the Customs Service, there are many billionaires who can feed millions with just a cup from the kegs of their wealth.

Likewise in the extractive industry and the Civil Service, there are enough billionaires to make life better for Nigerians. Surprisingly, these billionaires do not only

evade charity but also tax. A local council will force a poor roadside vulcaniser to pay tax but cannot collect ground rent from the rich. Paradox.

If a pension fund looter can be ‘clever’ enough to steal Old Age Pensioners’ (OAPs) lifetime saving, I wonder why he couldn’t have the nous to commit some percentage of the money to charity. With Boko Haram killing innocent Nigerians openly in a pocket of attacks, corruption is secretly executing genocide against Nigerians on a Richter scale.

I was recently privileged to see a bill of quantity and cost of building a four classroom block with two offices.

The ultra-modern classroom, which was built at the cost of N15 million, has long-span aluminium roofing sheets, suspended ceiling, tiled floor, extra-strong doors, among others. So if these looters can be conscientious enough to give some percentage of their loot to education, the literacy level will improve.

Looters live in castles, while their siblings and relations live in huts or rented multi-room apartments that can pass as pig pen. They take their children to study abroad but they cannot pay the school fees of their nephews and nieces studying at home. Can’t you see how heartless we can be?

Life expectancy in Nigeria is just about 50 years. So this makes it somewhat impossible for a looter to live for 100 years, that is, even if he began stealing public funds when he was being pushed in a buggy. The 10 billion naira Tafa Balogun loot could take him centuries to spend. James Ibori loot will take him up to the new millennium. Abacha loot, which is calculated in billions of dollars, could even last for eternity.

Apart from our home-grown looters, we have these multinationals who feign commitment to Corporate Social Responsibility (CSR). According to a blog injusticefacts.wordpress.com, “the top 200 corporations [in the world] are bigger than the combined economies of 180 countries.” But it’s dismaying to note that most of these corporations made the Bribe Payers Index (BPI). The fact is that if all the bribe givers will refuse to give, there won’t be a taker anymore and life will be better for Nigerians.

I just wish the looters will see logic in my agenda.

• Jaafar, a public affairs commentator, can be reach through jafsmohd@yahoo.com

Sport

2014 WORLD CUP QUALIFIERS:

KESHI CRAVES injury- free Eagles

TRANSFER DILEMMA:

Yobo: I am not a slave

25

THE NATION MONDAY, JULY 16, 2012

BUSINESS THE NATION

E-mail:- bussiness@thenationonlineng.net

ISSUES

Cassava for which Nigeria is the largest producer in the world, is being used to produce high quality cassava flour to replace some of the wheat.

The flour mills and their surrogates are doing all they can to misinform Nigerians so as to protect their super profits - Dr Akinwunmi Adesina Minister of Agric.

THE CEO

Balancing Nigeria's growing sovereign risks - P. 27

‘Insurance can’t thrive in a poor P. 32 economy’

News Briefing

Bureaucracy stalls sovereign guaranteed projects THE Debt Management Office’s (DMO’s) plan to fast-track the implementation of some projects through its Sovereign Guarantee policy is being delayed by bureaucrats.

- Page 26

CBN targets 62,000 ATMs by 2020 THE Central Bank of Nigeria (CBN) is to set up a Micro Small and Medium Enterprises (MSME) Fund targeted at empowering women.

- Page 30

JPMorgan’s trading loss hits $5.8b J PMorgan has said the loss from the bank’s chief investment office’s errant trades has totalled $5.8 billion so far this year.

- Page 39 DATA STREAM COMMODITY PRICES Oil -$107/barrel Cocoa -$2,686.35/metric ton Coffee - ¢132.70/pound Cotton - ¢95.17pound Gold -$1,800/troy ounce Rubber -¢159.21pound MARKET CAPITALISATIONS NSE JSE NYSE LSE

-N6.503 trillion -Z5.112trillion -$10.84 trillion -£61.67 trillion RATES Inflation -10.5% Treasury Bills -7.08% Maximum lending-22.42% Prime lending -15.87% Savings rate -2% 91-day NTB -15% Time Deposit -5.49% MPR -12% Foreign Reserve $35.8b FOREX CFA 0.2958 EUR 206.9 £ 242.1 $ 156 ¥ 1.9179 SDR 238 RIYAL 40.472

•From left: Zonal Head, Northeast, Unity Bank PLC, Mr Usman Abaji; Managing Director, Mr Ado Wanka and star prize winner, Aim and Win promo of the bank, Mrs. Bikudaima Joura, during the presentation in Abuja ... at weekend.

CBN mulls policy to discourage local T transactions in dollars

HE Central Bank of Nigeria (CBN) is planning a policy to discourage local transactions in dollars. This is to reduce pressure from the nation’s foreign reserves, The Nation has learnt.

If the policy, which formed part of the discussions at last Tuesday’s Bankers’ Committee meeting in Abuja and a retreat in Lagos at the weekend is implemented, recipients of international money transfer schemes, such as Western Union and Money Gram, may be affected. They may receive the naira equivalent of the currencies wired to them from abroad.

The policy may also affect firms and hotels that sell their goods and services in dollars.

Dollar is the world’s widely accepted means of payment in the international market. Virtually, all countries including Ni-

•Int’l money transfer may be affected

By Ayodele Aminu Group Business Editor

geria have majority of their reserves in dollar.

The demand for dollars has continued to exert pressure on Nigeria’s foreign reserves, which were $37.65 bllion as at June but fell to $36.7 billion last Thursday (July 12, this year).

Banks, according to persons familiar with the discussions are willing to embrace payments for international money transfer in naira to reduce the costs associated with importation the foreign currencies used for such payments.

“Everyone wants dollars,

which is imported by banks and the CBN. And it is too expensive. If recipients accept the naira equivalent for payment of their international money transfer, it would reduce pressure on our foreign reserves. Banks will also be saving a lot of money as they have to import foreign currencies, particularly dollars” said a top official of one of the big banks.

The Nation gathered that Travelex – the importing logistics provider for the CBN imports over $200million on behalf of the apex bank monthly.

But there is always the propensity for recipients of international money transfer to re-

ceive their money in foreign currencies because of the differentials between the official foreign exchange market (the Wholesale Dutch auction System where the CBN sells forex bi-weekly) and the black market. At the official market, a dollar exchanges at N159, while its N162 per dollar at the black market.

Anaylists, who spoke with the newspaper described the proposed policy as laudable, but advised the CBN to ensure that recipents of international money transfer are paid the naira equivalent at the prevailing black market exchange rate.

Though CBN’s Director of Communication, Ugochukwu Okorafor, could not confirm this

story, he, however, agreed that naira should be the only means of transactions in Nigeria.

“This is a Nigerian territory and it is the naira that is our currency. We will continue to put policies in place to make sure that the naira is safe, stable, continues to be stable, remain a store of value and a credible medium of exchange in the Nigerian economy,” Okorafor stressed.

He warned currency speculators, saying they will get their fingers burnt.

Speculators will pay dearly because we have enough reserves to defend the naira. We have been meeting all eligible demands at the official market.

We know the value of hot money in the system. Even if all the hot money edges out, we are still comfortable because we have adequate reserves to address it,” he said.

Dangote, MRS, Ontario, Oando are top forex users ANGOTE Cement Plc, MRS Oil and Gas Company Limited, Ontario Oil and Gas Limited and Oando Supply and Trading Limited emerged the top four users of foreign exchange at official market (the bi-weekly Wholesale Dutch Auction System) in the first quarter of 2012.

D

*Apex bank sells $4.57b in Q1

By Emeka Ugwuanyi

A document obtained by The Nation, showed that Dangote Cement within the period demanded for $751,007,978, MRS Oil and Gas Company Limited $382,656,688 while Ontario Oil and Gas Limited demanded for

$378,300,000 and Oando Supply and Trading Limited, $338,056,000.

The document also showed that out of 51 companies, Dangote, MRS, Ontario and Oando bought $1,850,020,666 out of the $4,576, 682,022 from

the apex bank within the period under review.

Other big players in the quarter include Conoil $204,132,000, Aiteo Energy Resources Limited $201,600,400, NIPCO Plc $150,860,000, First Image Global Technology Limited $136,900,000, and Total Nigeria Plc $118,578,900.

Oil and gas companies ac-

cording to the data constituted more than 80 per cent of the 51 companies that sought the over $4 billion provided by the CBN. Some relatively unpopular companies such as Pancham International Limited and Dag Motorcycle Industries Limited, demanded for as much as $106,248,000 and $85,607,280 respectively.

16% bond yields not sustainable, says Okonjo-Iweala

T

HE Co-ordinating Minister for the Economy and Minster of Finance, Ngozi Okonjo-Iweala, has faulted the 16 per cent yield on government bonds, saying it is unsustainable.

Speaking at a video interview session with the news network, ABN, she said government’s borrowing was too high. She said

By Collins Nweze

efforts must be exhausted at reducing the cost.

She said domestic borrowing remains a major challenge for the economy, though Nigerians are not bothered about it.

“The real issue is domestic borrowing even though citizens are not bothered as they

believe domestic debt is just domestic, and as such, the government can always borrow if it needs to,” she said.

Mrs Okonjo-Iweala said the government’s debt strategy is to gradually reduce the budget deficit. The deficit was reduced by over N100 billion in 2011/ 2012 and will be gradually re-

duced by 2015, she added.

According to her, the provision of a sinking fund will start in the 2013 budget, to save funds for the retirement of bonds as they fall due.

She said the fuel subsidy probe has given an insight into the dedication of the Federal Government to get to the root

of the problem, recover funds stolen under the guise of subsidy payments and prosecute offenders as this is the wish of Nigerians, home and abroad.

She said there is nothing to worry about debt to Gross Domestic Product (GDP) ratio as Nigeria has a low ratio compared to other countries of the world.

THE NATION MONDAY, JULY 16, 2012

26

BUSINESS NEWS Flight Schedule

Bureaucracy stalls take-off of sovereign guaranteed projects

MONDAY - FRIDAY LAGOS – ABUJA Departure Arrival 1. Aero 06.50 08.10 2. Associated 07.00 09.30 3. Air Nigeria 07.00 08.20 4. IRS 07.00 08.20 7. Arik 07.15 08.15 7. Chanchangi 07.15 9. Air Nigeria 08.15 09.35 10. Aero 08.45 10.05 11. Arik 09.15 10.15 12. Chanchangi 10.00 11.00 13. IRS 11.15 12.35 14. Aero 12.20 13.30 15. Air Nigeria 13.25 14.45 16. Chanchangi 13.30 14.30 17. Arik 13.45 14.45 18. IRS 14.00 15.20 19. Aero 14.10 15.30 20. Air Nigeria 14.50 16.10 21. Chanchangi 15.30 16.30 22. Arik 15.50 16.50 23. Aero 16.00 17.20 24. IRS 16.30 17.50 25. Arik 16.50 17.50 26. Chanchangi 17.30 18.30 27. Air Nigeria 17.35 18.55 29. Air Nigeria (T/TH) 18.30 19.50 20. Arik 18.45 19.45 31. Aero 19.20 20.40

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thorities in government. Approval of this kind of framework must pass through different stages.

“The laws are clear on an issue like this. The Fiscal Responsibilities Act is clear on this. Nothing can happen until the necessary procedures are followed. The Ministry of Finance must study and give its recommendation on the issue, ditto other institutions.”

She said approval of the framework was on, adding that the DMO could not take a decision on it.

“We are not in a position to fix the date for the commencement of the sovereign guaranteed initia-

tives. No date has been scheduled as regards this issue. Approval of this nature is sensitive. It is not something that we can pick up on the road. We have to follow due process,” she said, adding that suggestions had been made to the government on the matter.

She said the DMO could select projects that fit its plans, adding that projects that were not of value would be excluded.

Oniha explained that her Office would not provide loans for organisations that want to invest in the economy, but would guarantee institutions that are obtaining facilities for its projects.

08.50 12.40 14.10 17.20 12.15 12.45 09.10 11.00 11.10 16.20

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

By Akinola Ajibade

08.30 09.10 11.50 12.45 13.40 15.20 16.30 16.40

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

1. Arik 2. Arik 3. Arik

T

HE Debt Management Office’s (DMO’s) plan to fasttrack the implementation of some projects through its Sovereign Guarantee policy is being delayed by bureaucrats.

This initiative is expected to give to firms financing critical projects, such as road construction, power and employment generation, the needed finance.

Director, Research, DMO, Mrs Patience Oniha, who gave this indication in a telephone chat with The Nation, said the Federal Government has not approved the guidelines.

She said: “There are layers of au-

08.00 18.00

LAGOS – ABUJA SAT/SUN Arik 7.15; 10.20; 2.20; 5.20pm – 7.30; 9.15; 10.20; 2.20; 4.50; 6.45 Aero 07.30; 09.35; 13.10; 14.50; 20.20 – 07.30; 09.35; 13.10; 14.50; 20.20 Air Nigeria 08.15; 14.30; 17.15; 18.30 – 08.15; 13.30; 14.30; 17.15; 18.30

From left: Director, Great Place To Work, Australia, Tom Frtunik; CEO/ GMD Great Place To Work Nigeria, Kunle Malomo, presenting an award to Mr Reginald Ihejiahi MD /CEO, Fidelity Bank Plc, at the bank’s Head Office in Lagos.

PHOTO: SOLOMON ADEOLA

Local content policy pushes insurers’ claims up by 30% T HE Local Content Policy has boosted insurance claims profile by 30 per cent, The Nation has learnt.

Investigation revealed that this arose from risks in the oil and gas sector.

The Nigerian Content Act has empowered insurers to underwrite 70 per cent of risks.

The Managing Director Royal Exchange General Insurance Company, Olutayo Borokini, said the Local Content Policy has increased the industry’s premium by 50 per cent, while the claims rose by 30 per cent.

He said the increase in claims is as result of skills cap in oil and gas created by the policy.

He said: “The local participation in oil and gas business has increased in the last two years, especially with the enactment of the Local Content Policy by the Federal Government. Seventy per cent is supposed to be given to local insurers. That has led to the growth of oil and gas business in insurance.

The Local Content Policy has its advantages and disadvantages. We have had increase in the number of claims,

By Chuks Udo Okonta

as a result of the policy. The services that were provided by foreigners are now provided by local technicians who are not trained. It would take some time to develop the local skills.

The result from it is that the risk factor is there.”

Managing Director, LASACO Insurance Plc, Olusola Ladipo-Ajayi, said the policy has thrown up some claims which the operators are working with loss adjusters to offset. He said oil and gas underwriting is capital intensive, as it is denominated in dollars; therefore, operators still have capacity problems in terms of finance.

He said operators are coping and gradually coming of age in terms of technical know-how, adding that their exposure is aiding their understanding of technical know-how on risks in the industry.

“We have some claims that have arisen that would also further expose us as we would read the loss adjusters’ report to enhance our knowledge. The

major challenge we have is getting the right type of security as reinsurance back-up. The capacity out there in the international community itself is limited; so, on the balance of probability, I think we are doing what we ought to do. It is our prayers that more indigenous companies should have confidence in the local insurance industry and encourage us to growth together.

“It is better than nothing and I think, it has paid off,” he said.

Commissioner for Insurance Fola Daniel, said most of the underwriters have shown enthusiasm on leveraging on the opportunities afforded by the Nigerian Content Act. He said the Act stated that 70 per cent of insurable property in the oil and gas business must be domiciled with Nigerian insurers, adding that industry has risen to the occasion.

He noted that operators need effort to train personnel to understand oil and gas; otherwise, they will go and state risks, which they lack the required knowledge, which would become a blind date which could crash and be inimical to the organisation and the industry.

Liberalise, don’t privatise, electricity workers urge govt

P

RESIDENT, Senior Staff of Electricity and Allied Corporations, Comrade Bede Oparah, has appealed to the Federal Government to liberalise the Power Holding Company of Nigeria (PHCN) rather than privatise it.

He told The Nation that the government ought to have given electricity workers a chance to make an input on the issue.

He said: “We are working in the industry. We know where the problems are, therefore, our opinion

•From left:

By Dupe Olaoye-Osinkolu

should be considered. And the opinion is, privatisation will not solve the problem. What will solve it is liberalisation of the power sector.

“We can see that the government has started admitting, by some of its actions, that liberalisation is the answer. The recent law that was passed, which says state governments are free to generate, transmit and distribute electricity,is a form of liberalisation. In Akwa Ibom, the

Governor has built 125 megawatts plant. In Rivers State, they built a plant of beyond 150 megawatts.

“If other state governments can build their own plants and generate electricity, it will contribute to the total generation this country has, and it will make life better. So, I want to appreciate government for that form of liberalisation.”

On tariff, Oparah said the government should get generation right before talking about increasing tariff.

N7.7tr projects abandoned

By Okwy Iroegbu-Chikezie

N

O fewer than 11, 886 projects worth N7.7 trillion were abandoned in the country last year,

President, Nigerian Institute of Quantity Surveyors (NIQS), Agele Alufohai, has said.

Alufohai spoke at a Stakeholders’ Forum on Effective Budget Implementation and Performance in Nigeria, organised by the House of Representatives’ Committee on Appropriation.

He listed some the factors responsible for the menace as insufficient funds, non-viability, political inexpediency and lack of continuity of project management by successive governments.

To solve the problem, he called for the involvement of the private sector in the execution of projects.

“Economically, successful nations have refrained from giving dominant roles to the state that allows bureaucrats to appropriate vast amount of the nation’s wealth on doing what the private sector can do.”

He suggested the use of qualified quantity surveyors and project management professionals, training of public officers, and compulsory adoption of Building Information Modelling (BIM) for public projects.

He advocated the establishment of institutions that would reduce the scope of abuses and errors, rather than sanction-oriented ones, such as probes and anti-fraud agencies.

He pointed out that though the country has a lot to benefit from the reduction of the incidence of abandoned projects and cost overruns - in terms of the enormous revenue that would be saved for development projectsthe biggest gains is in promoting deeper political commitment to economic policy strategies that emphasise savings, careful planning and transparency.

Interbank rates ease on higher cash flows

I

NTERBANK lending rates eased 100 basis points to an average of 14.33 per cent last week, aided by improved liquidity.

Dealers said the market opened with a cash balance of about N14.6 billion ($90 million) on Friday, compared with a negative balance of 12.74 billion naira last Friday.

“We have inflows from repaid matured treasury bills of a net balance of about 50 billion naira and around 30 billion naira disbursal to some government agencies in the week, helping to lift market liquidity,” one dealer said.

The Federal Government sold N95.56 billion in three-month and six-month treasury bills on Wednesday, while there was net cash inflow from matured bills.

Dealers said some lenders also preferred to take money from the central bank window, helping to ease pressure on the borrowing costs this week.

The secured Open Buy Back (OBB) rate eased to 13.50 per cent from 14.75 per cent last week, 1.5 percentage points above the central bank’s 12 per cent benchmark rate, and 350 basis points above the Standing Deposit Facility (SDF) rate.

“Interbank rates are expected to inch up next week by the time we start funding for foreign exchange and treasury bills purchases and Nigeria National Petroleum Corporation (NNPC) recall a portion of its deposit with some banks,” another dealer said.

NNPC supplies the bulk of foreign exchange traded on the interbank forex market and usually recalls part of the naira proceed to its account with the central bank to fund its obligations to the government.

THE NATION MONDAY, JULY 16, 2012

27

ISSUES

Nigeria’s sovereign debts (March 2012)

Constituents of domestic debt (March 2012)

(Nb)

•Source DMO

•Source DMO

Balancing Nigeria's growing sovereign risks Nigeria's sovereign debt management choices are limited. As a result of the huge infrastructure gap and monoproduct revenue source, the national and sub-national governments are filling the financial gaps with bonds.

While relatively cheap long-term bonds provide the Federal Government and states with amenable capital, the nature of the largely recurrent-expenditure bonds, growing size of the overall sovereign issues, resurgence of sub-national authorities and the stress level of the financial markets underline worries about sustainability and management of sovereign bonds. TAOFIK SALAKO reports

G

OVERNMENTS’ debt activities have increasingly become the defining lines of Nigeria's financial markets performance. With the lingering capital market downtrend and attendant investor's apathy, government bonds are becoming the main issues in the capital market. Federal Government's bonds accounted for about 98 per cent of total primary issues in the capital market in the first quarter of 2012. Compared with new equities issues of N2.23 billion and corporate bond issue of N2.26 billion, Federal Government bond issue was N209.76 billion.

The flow of funds also showed continued pat-

tern of greater inflow into government's bonds.

While the other issues recorded varied degrees of subscription, government bonds were largely oversubscribed by more than 82 per cent, raising N382.40 billion within the three months. In the same period, allotment proposals for N52 billion were cleared for two state governments – Ondo and Edo. Ondo State raised N27 billion while Edo State sourced N25 billion. The two sub-national issues were fully subscribed; further underlining the appetite for government issues. Last month, the Federal Government bonds attracted about N130 billion, although about N84 billion was eventu-

ally allotted by the Debt Management Office (DMO) - the agency saddled with the debt issuance programme of the government.

There is also a strong correlation between investor's appetite at the primary market with that of the secondary market. For every N1 million staked on equities in the second quarter of 2012, investors staked almost N8 million on bonds. Average weekly turnover on the Overthe-Counter (OTC) bond market, where the Federal Government's sovereign bonds are traded, stood at N105.5 billion for 116.9 million units in 710 deals as against average weekly turnover of N13.25 billion for 2.04 billion shares in

18,311 deals on the equity market. Turnover on the OTC bond market during the three-month period totalled 1.52 billion units worth N1.37 trillion in 9,236 deals compared with a turnover of 26.49 billion shares worth N172.24 billion in 238,043 deals in the equity market.

The underlining trend is that most portfolio and fund managers, including banks, insurance companies and pension fund administrators, are heavily skewed with government bond,both national and sub-nationContinued on page 28

THE NATION MONDAY, JULY 16, 2012

28

ISSUES

Balancing Nigeria's growing sovereign risks Continued from page 27

Nigeria natinal debt (March 2012)

als, and as such, decisions about the maturity of government debts have become important to the dynamics of financial and economic stress levels.

Resetting national finance Sovereign bonds have now become regular financing instruments for national budget deficits as against the previous practice of relying on the ways and means of the Central Bank of Nigeria (CBN). The Federal Government would raise N794 billion in new bond issues to largely finance the N1.1 trillion deficits expected in the 2012 budget. This is a breach of the latest Debt Sustainability Analysis (DSA) previewing the borrowing prospects of the country. The DSA is a multi-party report jointly produced by the Ministry of Finance, CBN, National Planning Commission, Budget Office of the Federation, National Bureau of Statistics and the Debt Management Office (DMO), which served as the coordinating organisation for the report. The DSA, which provided inputs into the 2012-2014 Medium-Term Expenditure Framework (MTEF) of the Federal Government, recommended a borrowing limit of N345 billion or $2.25 billion for 2012 including N208 billion local borrowings and $0.90 billion external debts.

The DSA, however, indicated headroom for increase in national debt portfolio without breaching the global acceptable limit. It highlighted that given the current debt profile; Nigeria could borrow up to N1.49 trillion or $9.5 billion this year, given the optimistic profile of the country's growth and debt levels. With this optimistic scenario, total public debt was projected to rise to N9.01 trillion or $57.4 billion in 2012. Still below 30 per cent, Nigeria is still far from the global standard for debt-to-GDP ratio of around 40 per cent. Nigeria's total debt profile was N6.88 trillion as at March 2012. Domestic debt component stood at N5.97 trillion, while external debt was $5.91 billion or N919.44 billion.

The MTEF already outlined a course for future growth of national debt in the short to medium term. According to the framework, the Federal Government would spend some N2.11 trillion to service foreign and domestic debts and borrow about N2.6 trillion in new domestic debts over the next four years. A breakdown of the MTEF showed the government would use N1.93 trillion to service domestic debts while another N180 billion would be used to service foreign debts.

During the course of the fiscal plan, the government plans to borrow N2.59 trillion through the domestic debt market with an average yearly borrowing of N648 billion. According to the fiscal plan, the government plans to gradually reduce amounts for debt servicing from N511.98 billion in 2012 to N543.38 billion in 2013 and subsequently to N446.62 billion and N423.39 billion in 2014 and 2015 respectively.

In the same vein, domestic borrowings are expected to trend downward from N794.4 billion in 2012 to N752.9 billion in 2013 and subsequently to N578.72 billion and N461.75 billion in 2014 and 2015 respectively.

Besides the size of national debt, the dominance of the private sector in the ownership of government debts poses dual risks of global contagious effect and increased domestic exposures to policy changes. The Bank for International Settlement (BIS) in a report on sovereign risks noted that while financial institutions have always needed to contend with market risks on sovereign debt due to changing interest rate expectations, sovereign credit risk and its implications now pose a significant and urgent challenge to banks.

“These challenges are particularly acute when it is a bank's home sovereign that is in distress.

A deterioration in sovereign creditworthiness drives up banks' funding costs and impairs their market access through multiple channels.

Moreover, due to the extensive role of government securities in the financial system, banks cannot fully insulate themselves from higher sovereign risk by changing their operations," BIS pointed out.

At the onset of the debt management programme in 2002, CBN had held the largest percentage of domestic debts that year with about 46 per cent while banks and discount houses held about 39. Non-bank public held about 15 per cent of domestic debts 2002. By the end of 2010, banks and discount houses held the largest chunk of 57 per cent followed by non-bank public with 32 per cent. CBN's holding stood at some 7.5 per cent while sinking funds held 3.2

•Source DMO

per cent. Also, improving investors' appetite for sovereign bonds has gradually seen the size of the issue rising almost on a year-on-year basis from N140 billion in 2005 to N1.07trillion in 2010. This has also enabled government to gradually extend tenor from two years in 2005 to 20 years by 2009. Besides, from a predominance of short-term treasury bills in 2002, Nigerian domestic sovereign debts are now largely comprised of bonds. At the onset of the bond issuance programme in 2002, Nigerian Treasury Bills (NTBs) made up about 63 per cent of total domestic debt while treasury bonds constituted about 37 per cent. There were no bonds and development stocks were negligible at 0.14 per cent. But in 2010, the composition has been completely reversed with sovereign bonds constituting about 64 per cent while NTBs comprised 28 per cent. Treasury bonds made up 8.2 per cent while development stocks were almost non-existent at 0.005 per cent.

Managing sub-national debts Standard and Poor's (S & P), the leading global rating agency, that recently improved Nigeria's sovereign rating to B+ long-term foreign currency rating with positive outlook had cited Nigeria's low fiscal and external debt as a credit strength for Nigeria's sovereign rating.

Managing Director, South Africa and sub-Sahara Africa (SSA), Standard & Poor's, Mr Konrad Reuss, explained that the statement of credit strength includes from an aggregate perspective also the indebtedness of the federal states as the rating agency’s analysis of government debt burden would look at a general government definition including central, regional and local government.

"However this statement does not extend to individual states per se - among which credit quality might differ significantly. Also, if federal states, indeed, were to borrow heavily, their individual debt bearing capacity would likely differ. Hence, the question of debt sustainability of individual federal states would have to be answered on an individual basis," Reuss pointed out.

Standard & Poor's has a public rating for only Rivers State out of the 36 states of the Federation and the Federal Capital Territory (FCT).

While the Federal Government has shown considerable discipline in managing its debts, the absence of similar debt management structures in several states and local governments may pose a challenge to the effectiveness of the national debt management strategy. This is underscored by the growing number of states accessing the capital market for funds. Four states Lagos, Bayelsa, Kaduna and Ebonyi raised about N133 billion in 2010. Within the past three years, not less than 14 bonds have been floated by states and there are strong indications that several states would float more bonds in 2012this year. With growing domestic debts, substantial external debts by states

• Minister of Finance, Dr Ngozi Okonjo-Iweala

have raised a spectre of dislocation, unless states also develop the institutional capacity to manage their debts. The 36 states and the Federal Capital Territory (FCT) accounted for 41 per cent of total external debts of $5.4 billion as at June 30, 2011. Also, there has been a steady rise in domestic debts of states to peak at N796.2 billion by the end of 2010. Besides, the structure and components of states' domestic debts easily make them susceptible to shocks, which could trigger bigger shocks and destabilise the nation's financial system. By the end of 2010, short-term debts comprising commercial bank loans, contractors' debts and pension arrears made up 86 per cent of states' domestic debt while medium and long-term bonds constituted only 14 per cent.

A recent study of sub-national debt management also underscored the need for effective management of state bonds in tandem with national debt management to avoid financial and economic dislocations. The study found that sub-national debt management was characterised by absence of appropriate institutional framework for the coordination of debt management activities, weak public finance management institutions and practices at the state and local government levels. It also discovered lack of coordination of fiscal policies and operations at all tiers of government, lack of effective coordination and regulation of borrowing by sub-national entities resulting in excessive fiscal expansion that creates problems for macroeconomic stability, poor and unreliable database on sub-national debts and borrowings and absence of a comprehensive sub-national debt strategy that takes into account Nigeria's peculiar fiscal federalism.

The S & P rating analysis identified considerable autonomy of the regional states as a weakness, alongside political tension and divides.

With increasing clamour by states and lately the local government for full fiscal autonomy, divergent debt agenda could lead to distortions in the national debt management.

Fostering fiscal responsibility With this, the Federal Government through the DMO has been working at extending the framework for the management of sovereign debts to sub-national debt management. DMO was mandated to partner with each state to establish full-fledged Debt Management Department (DMD) that would be technically and institutionally capable of managing the process and procedures necessary for sustainable debt management at the state level.

In 2007, the template for the implementation of the DMD was adopted by the 36 Sstates of the federation. The template outlined the legal, institutional, human and material requirements that would lead to an effective DMD. Apart from serving as best practices guidelines, the nationwide adoption of the template provided uniformity and bench-

‘We have brought the debt down by N100 billion; next year we will bring it down again, until we get to a level that is comfortable. The quality of the economic growth is what we are looking for. That means we have to save a little bit more’

mark for peer review.

Director-General, Debt Management Office (DMO) Dr Abraham Nwankwo, said the agency had developed a strategic plan that encapsulated sub-national debt management objectives as well as national debt management framework that set out guidelines for borrowings for all tiers of the federation.

These two landmark documents have helped to streamline sub-national borrowings and enhance transparent management of the process and proceeds of the debt issue.

Nwankwo noted that all states have administratively established DMDs while almost all the states have been making budgetary provisions for effective functioning of their DMDs. With the establishment of the DMDs across the federation, several states have made appreciable progress in the implementation of the template. At the last count, 16 states have already passed the necessary legislation- State Fiscal Responsibility Law or Public Debt Management Law or a combination of the two. Nine other states are in the process of passing the enabling law. DMO has also conducted Debt data Reconstruction (DDR) in 25 states and is scheduled to complete DDR exercise for the remaining 11 states in 2012. The DDR enables the state to identify, collect, collate, document and computerise its debt databoth domestic and external, in line with the international best practice. This would provide the state with necessary data for strategy formulation, planning and development.

Cushions for sustainable debt The Federal Government hopes to counterbalance the risks of the national debt profile with increased savings into the excess crude account. Minister of Finance and Coordinating Minister of the Economy Mrs. Ngozi Okonjo-Iweala has also reiterated the commitment of the government to slowing down domestic borrowing. She noted that although Nigeria cannot stop borrowing over night, but the government has started finding ways of reducing the level of borrowing.

“We have brought the debt down by N100 billion; next year we will bring it down again, until we get to a level that is comfortable.

The quality of the economic growth is what we are looking for. That means we have to save a little bit more and you saw that after the National Economic Council (NEC) some weeks ago, the governors, under the chairmanship of the Vice-President, Namadi Sambo, have agreed that we should save more in the excess crude, We have about $5.6 billion now. I believe that to have a strong coffer we should be able to save up to $10 billion," Okonjo-Iweala said.

S & P also noted : "Although general government debt has increased over the past few years, high nominal GDP growth have contained the debt-to-GDP ratio at 23.4 per cent as of year-end 2011", implying that further growth could mitigate the debt outlook.

Now, the challenge is to find the progressive balance between reduction in government's debt profile and national growth requirement. The government can start this by changing the nature of its debt issues from largely recurrent-expenditure issues to specific project-tied bond that can deliver prioritised national infrastructure.

THE NATION MONDAY, JULY 16, 2012

29

PERSONAL FINANCE

Between historical fundamentals and forecasts

Investor’s Worth

From employee to owner AYO Osibo was an employee who successfully used Management Buy Out (MBO) to become the single largest individual shareholder in the company he had previously been managing for others. MBO is a particularly tenuous investment strategy. Tricky, riskier and sometimes costlier, MBO- the purchase of controlling equity stake in a company from existing core investor by the management executives of the company, requires more rigourous decision process than other investment decisions. For the management executives, they must possess the requisite capital, expertise and character to win the minds of the divesting investors. Where management lacks capital but is reputed for professionalism, it can attract capital from other sources to consummate the deal. This type of MBO is referred to as Leveraged MBO. The transformation of Portland Paints and Products Nigeria Plc is as interesting as the metamorphosis of Bayo Osibo.

Portland Paints & Products Nig. Plc is a leader in the Nigerian paints Industry. Portland Paintspurveyor of the Sandtex brand of paints; was for several years a division of West African Portland Cement (Wapco) Plc, now

B

Lafarge Cement Wapco Nigeria.

In 1984, Osibo became the national sales manager for the Portland paints division. With the division performing creditably well as a going concern, Wapco initiated the registration of the division as a limited liability company in 1985. Osibo was subsequently made the general manager and chief executive of the new company.

When Wapco decided to divest from the company, Osibo- a biochemist, saw it as both an opportunity and a challenge. Having managed the company successfully, he was fully aware of the potential of the business. So, MBO became an attractive option for him and the divesting core investor, which wanted its capital but still wanted to leave the company in good hands. The credibility of the existing management attracted Aureos West Africa Fund, a British venture capital company, which supported the management with capital.

Portland Paints transited into a public limited liability company in 2008 and subsequently listed its shares on the Nigerian Stock Exchange (NSE) in 2009.

With current equity stake of more than 24 per cent, according to the latest filing, Osibo is the single largest individual

shareholder in Portland Paints, where he remains the managing director and chief executive.

At current market value, Osibo’s equity value is within the middle range of nine-digit figures. Portland Paints is currently trading with a market capitalisation of about N1.6 billion.

With his substantial equity stake and historic attachment to the company, Osibo has significantly grown the product basket of Portland Paints to include marine and protective coatings for oil and gas sector, sanitary ware, instant road repair material for repairs in all weather for cracks and potholes in asphalt, concrete and landing runway areas in airports as well as its traditional decorative and industrial paints.

A graduate of Biochemistry from the University of Ibadan, Osibo also holds a Master degree in Business Administration from the University of Lagos. He started his working career with Lever Brothers-now Unilever Nigeria Plc, where he rose to the position of senior sales field manager within a period of three year. He later joined Nigerian Textile Mills before moving over to Wapco.

For Osibo, it has been a valuable transformation.

Ask a Broker What is Price-Earnings ratio?

P

RICE-Earnings (PE) Ratio is a measurement of the most recent earnings of a company in relation to its current market values with a view to ascertaining the fairness of the pricing trend.

The PE ratio is derived by dividing the closing price of the stock by the earnings per share for the period under review, usually the audited 12-month period. For instance, the PE ratio for a company with a share price of N40 and earnings per share of N5 will be eight. Simply, fundamental analysts tend to use the PE ratio to measure

the attractiveness of a stock, using the ratio as indication of the probable period that it might take to recoup one’s investment.

Thus the lower the PE ratio, the more attractive the stock is and vice versa. However, a low or high PE ratio does not necessarily indicate the value consideration and potential of a stock. In some instances, low PE ratio may indicate higher risk while high PE ratio may indicate lower risk and better returns depending on the earnings outlook and business cycle. So, beyond the simplistic view, PE ratio is a highly advanced measurement tool for

both fundamental and technical analysts and it is better used in relation to other indices.

Besides, to ensure a more reflective measurement, many analysts undertake comparison of many PE ratios to determine the “appropriate” PE ratio. So, beside the PE ratio based on the current price, PE ratio may be found for the highest, lowest, opening and closing market values of a stock within a period or over several periods.

With these, analyst can determine the median or mean PE as well as the range for a stock, a group of stocks or the entire markets and used these variables for stock-by-stock, sectoral and market reviews.

Ways and Means

Consumer contract in cashless system

T

HE new defining spectrum for service in the Nigerian banking industry is the cashless policy of the Central Bank Nigeria (CBN). It is aimed at reducing the amount of physical cash in circulating in the economy and encouraging more electronic-based transactions.

With the double-digit penalty for dealing with ‘excessive’ cash, banking customers are expected to increasingly turn to electronic products including card-based channels such as Automated Teller Machine (ATM) and Point of Sale (POS) terminals. Already, recent by the CBN showed that many Nigerians are fast adopting electronic payment systems, especially card-based transactions.

Although the security of transactions under electronic banking, just as under conventional ‘showyour-face-and paper’ banking, remains a joint responsibility of the bank and the customer, several rules and regulations of the apex bank mandate the bank to provide certain facilities, data and services to enhance the security of electronic banking. Where any bank fails in any of the rules and regulations, the rules confer the right to restitution on customer

•CBN Governor, Sanusi

and penalty on the bank.

CBN’s guidelines on operations of ATM requires among others that: • At least two per cent of ATMs by any bank or other institution must have tactile graphic symbol for the use of visually impaired customers within the five-year time.

• Every bank must establish a fully functional help desk to attend to the needs of customers. Non-functional help desk contacts attract a fine for each day of infraction.

• Banks are expected to disclose ATM surcharge to customers and where any bank failed to disclose such surcharge, the bank shall be liable and the apex bank shall effect a refund of the surcharge to the affected customer.

• Any bank that installed an ATM without online monitoring mechanism, camera and back-up power (inverter) shall be liable to a fine, while the customer shall have a claim against the bank in the event of a fraud.

• An ATM deployer will be made to refund the full amount involved in any fraud perpetrated on its ATM for failure to provide footages on the disputed transactions when required.

• Failure to respond to the customer or to the CBN on ATM complaints within 72 hours will attract a fine per day for each complaint after a 72-hour timeline until the response is received.

•In the event of failure to resolve any ATM dispute with evidence of resolution within 14 days, the deployer will refund the total amount involved in the fraud.

T

HE main objective of portfolio management is majorly to minimise inherent risks in the process of maximising return.

The investment manager basically seeks to achieve this objective by engaging in wide analysis to determine firstly, the type of securities to be chosen and secondly, the proportion of investment to be made in each security.

Security or investment analysis, which from a perspective is categorised into fundamental analysis and technical analysis, is a major tool in effective portfolio management; although other tools such as portfolio selection and mix are also crucial determinants of the overall return.

From the statistical content perspective, investment analysis is broadly categorised into two: historical and projective analyses.

Historical analysis explores the past fundamental and technical performances of an investment as a measurement of reliability and future return.

Projective analysis on the other hand outlines possible future performance of an investment against the background of historical analysis, current and future macro and micro economic developments.

The thematic frame of projective analysis, otherwise called forecasting, is the estimation of current and future variables to determine possible return within a period.

Since historical analysis deals with realised return, return already earned, and as much does not translate into new earnings, projective analysis occupies a primary place in proactive investment management because of its propensity to create new good returns.

The primary motive of investment, it should be recalled, is to earn extra income on the principal amount invested through dividends and capital appreciation.

Projective analysis brings investors closer to

Company Niger Ins Chellarams Seven-Up AG Leventis Evans Medical

Dangote Flour Mills Tantalizers MRS Oil

By Taofik Salako

realisation of their main objectives.

Besides the platform offered by historical analysis, projective analysis uses a step-by-step funnel approach to determine variables that will impact, positively or negatively, on future dividends and share prices, starting from isolation and estimation of relevant macro-economic variables to industry variables and then narrowed down to the company.

This approach, otherwise referred to as economic-industry-company (EIC) or “top down” approach, enables an investment analyst to have a full view of risks and opportunities inherent in an investment decision and simultaneously reduces risk and enhances realisation of return.

Several studies have confirmed the importance of macro factors in dividends flow and price changes.

These make analysts to pay more attention to forces operating in the overall economy as well as in the different segment of the economy.

To assume that companies operate in vacuum, without mediation of external forces, is a naïve error that many analysts have learnt to avoid. Experts underscore the importance of macro economic factors with the arguments that the course of national economic development influences corporate profits, investor attitudes and expectations and share prices.

For instance, an outlook of economic recession can lead to lower profits, which can trigger investor pessimism and lower share prices. Projecting possible consequences of fiscal and monetary policies on the overall economic trend can lead to good positioning in stocks that will lead the new swell of growths on the stock market.

Fiscal policies and the direction of government incomes and expenditures are major factors in economic analysis, especially in public sector-dominated economy like Nigeria’s. Se-

AGM Date AGM Venue 19-07-12 Golden Gate, Ikoyi, Lagos 27-09-12 NA 20-09-12 Muson, Lagos 05-07-12 Mainland Hotel, Oyingbo Lagos 26-07-12 Factory, Km 32, Lagos-Ibadan Express, Ogun State 05-07-12 To be Advised 28-07-12 10-07-12

NA Federal Palace Hotel, VI, Lagos

curity analyst should be able to determine the effects of government activities on socio-economic variables that can impact on investments.

For instance, the removal of the fuel subsidy has not only compounded the running cost of companies but also reduced the purchasing power of the consumers.

Also, the capital domestication or local content policy of the federal government has created huge markets for discerning local manufacturers and service providers. The local content policy and compulsory insurance have created huge earnings opportunities for Nigerian insurance companies.

Proactive analysis will take into consideration the impact of enforcement of such policies on the companies. Security analyst can track changes in wages, pension, taxes, male/female population and other demographic factors to project the possible direction of the overall economy and the impacts on investments.

Besides, monetary policies play crucial roles in the direction of overall economy.

A school of thought believes that changes in the money supply trigger chain of reactions that influence the economic outlook.

Although not universally acceptable, monetarist theory of economics simply states that fluctuation in the rate of growth of the money supply are of utmost importance in determining gross national product (GNP), corporate profits, interest rates and stock prices. Monetarists believe that monetary changes lead stock price changes. For instance, projective analysis will take into consideration significant changes in the monetary management such as the Central Bank of Nigeria’s inflation target approach and guided exchange rate management.

A shrewd combination of historical and projective analyses however makes for more reliable and dependable investment decision.

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27-04-12

12 p.m.

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Feedback/Comments: Email: taofad2000@yahoo.co.uk; SMS only: 080-2833-0861

15-06-12

30

THE NATION MONDAY, JULY 16, 2012

MONEY LINK

CBN to inaugurate fund for women empowerment HE Central Bank of Nigeria (CBN) is to set up a Micro Small and Medium Enterprises (MSME) Fund targeted at empowering women.

Speaking at the African Women’s Economic Summit, titled, ‘African Women Financing the Future’ at the weekend, CBN Governor, Sanusi Lamido Sanusi, said 60 per cent of the proposed fund would be for women entrepreneurs.

He said the fund is expected

T

By Collins Nweze

to replace the old Agricultural Credit Guarantee Scheme (ACGS) being implemented by the apex bank.

“When this fund is launched, at least 60 per cent of the loan will go to women business owners at single-digit interest rate. Hopefully, by October this year, when we all come back from the World Bank meetings, it will be inaugurated,” he said.

Sanusi said both men and women are equal and should

•To scrap agric credit scheme be treated equally in management institutions.

“I am not one of those that believe that all men are better than women, or that women are better than men. You need both to have diversity on the board. Any board that has a combination of men and women is better than any one that has men only, or women only,” he added.

Sanusi explained that the

move to empower more women is aimed at boosting the Federal Government’s programme on job creation and poverty alleviation. He said the Bankers’ Committee has declared the 2012 financial period, “a year of women empowerment,” adding that a sub-committee has been formed to enable Deposit Money Banks achieve that objective.

CBN targets 62,000 ATMs by 2020

T

HE Central Bank of Nigeria (CBN) has said the number of Automated Teller Machines needs to increase from 9,958 in 2010 to 62, 440 in 2020 to achieve the goals of financial inclusion strategy.

Also, the CBN is projecting the number of bank ‘branches to increase from 5,797 in 2010 to 10,000 by 2020, while the number of Point of Sales (PoS) devices is expected to increase from 11,223 to over 400,000 during the projected period.

The apex bank said 65,000 mobile agent network is re-

By Akinola Ajibade

quired by 2020 to ensure the success of mobile banking system in the country.

Confirming the development, an official, Shared Services Department, CBN, Chidi Umeano, said there has been an increase in the payment channels to meet the targeted growth for the industry, adding that PoS channels have been increasing in tandem with the aspirations of the financial regulator to promote the cashless banking initiatives. Umeano said the num-

banking and further made more people access banking services.

“The issue of payment transformation is critical to the growth of the industry. The apex bank wants all forms of payments to take a new dimension. This would enable depositors to have alternative modes of conducting transactions and further increase participation in the system. We are migrating from cash-based to the cashless economy now. It is a process that would transform the industry and economy in the next few decades,” he added.

ber of ATMs has increased in the industry compared to what it was a few years ago.

He said: “Though the growth in the number of Automated Teller Machines in the industry has been a bit slow, appreciable progress is being recorded in that area. My department is not in charge of the financial inclusion programmes. However, there has been an increase in the number of PoS and ATMs in recent times.”

He said the emphasis is now on the payment platforms to foster the growth of cashless

Fidelity receives ‘Great Place To Work’ award IDELITY Bank Plc has received the Great Place to Work (GPTW) trophy and certificate of achievement from the organizers of 2011/2012 assessment period award.

Speaking at the award ceremony held at the bank’s headquarters in Lagos, Director, Great Place to Work, Australia, Tom Frtunik, said Fidelity was

F

recognised because research conducted by the company showed that workers are satisfied with the bank’s working environment.

He said the bank’s staff were interviewed and their feedback used to decide the lender’s position.

The Managing Director of GPTW,Nigeria, Kunle

best companies scored an average of 78.1 per cent.

Managing Director, Fidelity Bank, Reginald Ihejiahi said he is proud of the bank’s management achievements and the recognition it has gotten.

He said leadership should be credible and trustworthy and that is what the management has provided for its workforce.

Malomo, said over 219 companies were nominated for the awards, 10 companies emerged, explaining that Trust Index and Culture Audit were the two parameters used in selecting the best. Fidelity emerged number five, and number two among financial institutions.

He said the Trust Index was at least 70 per cent, while the 10

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

Price Loss 2754.67 447.80

INTERBANK RATES 7.9-10% 10-11%

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

Amount 30m 46.7m 50m

Rate % 10.96 9.62 12.34

Date 28-04-2012 “ 14-04-2012

GAINERS AS AT 13-7-12 SYMBOL

O/PRICE

DANGCEM NB WAPCO DANGSUGAR GUARANTY UBN UAC-PROP NAHCO DANGFLOUR FIRSTBANK

112.00 109.19 41.51 4.20 15.98 4.50 9.72 5.80 6.29 11.26

C/PRICE

116.00 110.01 42.00 4.41 16.18 4.65 9.85 5.92 6.4 11.33

O/PRICE 26.75 14.35 10.30 4.50 3.30 2.40 3.10 4.80 14.50 1.90

C/PRICE 26.00 14.00 10.01 4.33 3.14 2.28 2.99 4.7 14.4 1.81

S

TANDARD & Poor’s (S&P) Ratings Services has assigned a ‘B+’ rating to the proposed senior unsecured notes to be issued

by Access Finance, a special purpose entity of Access Bank Plc. The rating reflects the unconditional and irrevocable guarantee provided by the bank.

Consequently, the rating on the notes, all of which are senior unsecured, reflects the counterparty credit ratings

on Access Bank.

The ratings on Access Bank reflect its ‘bb-’ anchor, as well as the bank’s “adequate” business position, “moderate” capital and earnings, “moderate” risk position, “adequate” funding and “average” liquidity, as our criteria define these terms,” a statement from Reuters said.

The counterparty credit ratings on Access Bank reflect the bank’s stand-alone credit profile of ‘b+.’

CHANGE 0.75 0.35 0.20 0.17 0.16 0.12 0.11 0.10 0.10 0.09

Exchange Rate (N) 155.2 155.8 155.7

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

CAPITAL MARKET INDEX Year Start Offer

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

Current Before

C u r r e n t CUV Start After %

147.6000 239.4810 212.4997

149.7100 244.0123 207.9023

150.7100 245.6422 209.2910

-2.11 -2.57 -1.51

149.7450

154.0000

154.3000

-3.04

152.0000

153.0000

155.5000

-2.30

153.0000

154.0000

156.0000

-1.96

DISCOUNT WINDOW Feb. ’11

July ’11

Dec ’11

MPR

6.50%

6.50%

12%

Standing Lending Rate ,, Deposit Rate ,, Liquidity Ratio Cash Return Rate Inflation Rate

8.50% 4.50% 25.00% 1.00% 12.10%

8.50% 4.50% 25.00% 2.00% 12.10%

9.50% 5.50% 30.00% 2.00% 12.6%

NIBOR Tenor 7 Days 30 Days 60 Days 150 Days

NSE CAP Index

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

Rate (Previous) 4 Mar, 2012 9.0417 9.6667 11.2917 12.1250

Rate (Currency) 6, Mar, 2012 10.17% 11.46% 11.96% 12.54%

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

% Change -1.44% -1.44%

MEMORANDUM QUOTATIONS Name

CHANGE

4.00 0.82 0.49 0.21 0.20 0.15 0.13 0.12 0.11 0.07

Amount Sold ($) 150m 138m 113m

EXHANGE RATE 6-03-12

LOSERS AS AT 13-7-12

SYMBOL PZ CADBURY ETI UBA VITAFOAM PAINTCOM REDSTAREX NASCON ZENITHBANK MAYBAKER

Sanusi

Access gets S&P’s B+ rating on guaranteed notes

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

Currency OBB Rate Call Rate

Governor,

It said interests expressed by banks on the policy has been encouraging, adding that there has been sensitization and gradual implementation of the policy in majority of the banks.

The Nation gathered that some banks have started taking census of gender distribution in their banks to avert CBN’s sanctions. Many of the banks have set up committees to decide processes and plans that would assist them address the gender imbalance.

WHOLESALE DUTCH AUCTION SYSTEM

MANAGED FUNDS

NIDF NESF

•CBN

DATA BANK

Tenor

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

“The Bankers’ Committee has made 2012 the year of women empowerment. A subcommittee on women empowerment has been formed. We are working at establishing a special fund by the end of the year that will provide credit facilities to women at a single digit interest rate.”

Already, CBN data indicate that women already occupy 27 per cent of senior management positions and 15 per cent of board seats in all the banks, the Bankers’ Committee, has observed.

The apex bank said the feat is in line with it’s directive that banks achieve a 40 per cent senior management positions and 30 per cent board seat for women by 2014.

“We are making serious progress in achieving the set target. Majority of banks are complying and this has led to the positive result we have today,” it said.

Offer Price

Bid Price

ARM AGGRESSIVE 9.17 KAKAWA GUARANTEED 1.00 STANBIC IBTC GUARANTE 122.23 AFRINVEST W.A. EQUITY FUND 105.18 LOTUS CAPITAL HALAL 0.74 BGL SAPPHIRE FUND 1.09 BGL NUBIAN FUND 0.95 NIGERIA INTERNATIONAL DEB. 1,710.87 PARAMOUNT EQUITY FUND 8.95 CONTINENTAL UNIT TRUST 1.39 CENTRE-POINT UNIT TRUST 1.87 STANBIC IBTC NIG EQUITY 7,535.73 THE DISCOVERY FUND 193.00 FIDELITY NIGFUND 1.67 • ARM AGGRESSIVE • KAKAWA GUARANTEED • STANBIC IBTC GUARANTE • AFRINVEST W.A. EQUITY FUND

9.08 1.00 122.10 105.15 0.72 1.09 0.93 1,710.53 8.51 1.33 1.80 7,737.33 191.08 1.62

Movement

OPEN BUY BACK

Bank P/Court

Previous 04 July, 2011

Current 07, Aug, 2011

8.5000 8.0833

8.5000 8.0833

Movement

THE NATION MONDAY, JULY 16, 2012

31

MONEY MARKET REPORT

Olympics, speculators raise forex demand

T

HE demand for foreign exchange (FOREX) is expected to increase in the coming weeks as travellers to the Olympic games in London make last minute purchases of dollars and pound sterling needed to make their trips. This combined with activities of forex speculators are expected to take demand to new heights in the coming weeks.

The opening and closing ceremonies of the London Summer Olympic Games are slated for July 27 and August 12.

In the last one week, $594 million was sold by the Central Bank of Nigeria (CBN) on July 4, 9 and 11. These figures are likely to soar in the coming weeks as more demands for forex ensue.

Managing Director, Partnership Investment Company Plc, Victor Ogiemwonyi, who confirmed the development said the two policies instituted by the CBN on return of unused forex and $50,000 maximum weekly purchase by Bureau De Change (BDCs) are aimed at curtailing forex speculators.

He explained that the apex bank, being aware that this is an Olympic year, is taking drastic measures to ensure that it controls the sale and usage of forex to protect the reserves and the local currency.

Given the dwindling external reserve position, experts say the foreign exchange market will witness aggressive intervention by the apex bank to maintain the value of the naira. However, the CBN could be forced to devalue the naira if the dwindling external reserve position continues unabated and by unrelenting speculation in the forex market. The CBN has not hidden its desire to put speculators out of job. Recently it embarked on reform of the forex market to deal with speculators.

The CBN introduced the forward transaction; it suspended the Wholesale Dutch Auction System (WDAS) in favour of the Retail system, and barred oil multinational firms and airlines from selling foreign exchange to the bureau de change segment of the market among other initiatives aimed at curbing excessive demand/speculation.

TBs Nigeria sold N95.56 billion ($589.1 million) in three-month and six-month treasury bills. However, strong demand pushed yields to their lowest level in seven weeks.

It sold N30.16 billion of 91-day paper at 13.75 per cent at Wednesday’s bi- monthly auction, down from 14.09 per cent the previous auction. Also, the yield on N65.40 billion of the 182-day paper fell to 14.88 per cent from 15.31 per cent.

Total subscriptions were at N290.22 billion even dealers said the pattern of demand suggested participation by offshore investors.

Interbank The interbank lending rates eased 100 basis points to an average of 14.33 per cent last week, aided by improved liquidity. Dealers said the market opened with a cash balance of about N14.6 billion on Friday, compared with a negative balance of N12.74 billion.

“We have inflows from repaid matured treasury bills of a net balance of about N50 billion and around N30 billion disbursal to some government agencies in the week, helping to lift market liquidity,” one dealer said.

•CBN Governor Sanusi Lamido Sanusi

By Collins Nweze

The secured Open Buy Back (OBB) rate eased to 13.50 per cent from 14.75 per cent last week, 1.5 percentage points above the CBN’s 12 per cent benchmark rate, and 350 basis points above the Standing Deposit Facility (SDF) rate. “Interbank rates are expected to inch up next week by the time we start funding for foreign exchange and treasury bills purchases and Nigeria National Petroleum Corporation (NNPC) recall a portion of its deposit with some banks,” another dealer said.

PoS transactions Point of Sale (PoS) merchants have called for one-day transaction settlement cycle and a reduction in tariff. Speaking at the Citiserve Merchant Congress, Managing Director/Chief Executive Officer, Eronic Stores, Prince Eroni, said the delay in crediting merchants’ accounts and high tariff on transactions are major impediments to the use of PoS. The event was organised by Citiserve, a subsidiary of Vigeo Holdings Limited to sensitise merchants and other stakeholders in the e-payment on the benefits of using PoS. Eroni said the banks and the Central Bank of Nigeria (CBN) should work on achieving a one-day settlement cycle and further reduction of the transaction fee below the current 1.2.5 per cent.

Head, e-Distribution, Citiserve, Jubril Salaudeen, said the firm is working towards resolving the complaints and problems encountered by merchants before the full implementation of the cashless banking initiative nationwide.

CIBN The Chairman, Chartered Institute of Bankers of Nigeria (CIBN), Segun Aina, has challenged bank-

N =¥$ £ •

ers to be ethical and professional in their dealings with customers.

Speaking during the induction for members in Lagos, he said their induction as chartered bankers has imposed on them the challenges of showing high level of integrity in their dealings.

He said they should be professional, alert to global trends and uphold high ethical and professional standards.

The institute graduated a total of 671 members, who have successfully qualified for the award of its banking professional qualifications in examinations conducted last year. They include 46 for certificate in Banking, two for Treasury Dealership Certificate, 468 for Microfinance Certification and 155 for the Associateship of the Chartered Institute of Bankers (ACIB).

VISA award VISA Incorporated has instituted an award for financial institutions that recognise shares and promotes best practices in risk.It is aimed at advancing the risk management standards to financial institutions by honouring those that have implemented a secure and reliable infrastructure that counters fraud.

In a statement, the global payments firm lauded the efforts of 20 institutions in Asia Pacific, Central Europe, Middle East and Africa (APCEMEA). They will getting the inaugural annual Visa Leader Awards at its summit.

Fitch Fitch Ratings, one of the world’s foremost rating agencies, has affirmed ratings of nine banks in the country that elected to be rated. The banks are GTBank, Zenith Bank, which had the highest Viability Rating

(VR) as stand alone banks. Also rated were Firstbank, Union Bank and Fidelity Bank, whose ratings were upgraded. Others are Access Bank, Diamond, Stanbic IBTC and United Bank for Africa Plc. Fitch, according to the report, upgraded FirstBank’s VR to ‘b’ from ‘b-’, while Union Bank moved from ‘c’ to ‘ccc’. Fidelity Bank’s Long-term National Rating was also upgraded to ‘BBB+(nga)’ from ‘BBB-(nga)’ and its National Short-term rating to ‘F2(nga)’ from ‘F3(nga)’.

Lagos N50b bond The apex bank has also approved liquidity status for the first batch of N50 billion fixed rate bond issuance floated in 2009 by the Lagos State Government.

Lagos State Commissioner for Finance, Mr Adetokunbo Abiru disclosed this at the Second and 3rd Annual General Meeting (AGM) of the state’s fixed rate bond (series 1 and 11) in Lagos last week.

He said Lagos has passed the Debt Sustainability Test. Abiru said the government uses the Bond Issuance Programme as a financial strategy to complement the state’s internally Generated Revenue. He added that this has reflected in her services and infrastructural development in the state. He reiterated that the funds raised from the bonds had been utilised effectively and that the state is committed to the Infrastructure renewal and Economic growth.

SMEs funding The apex bank has also stressed the need for establishment of more middle-sized banks (tier II banks) that will concentrate on lending to Small and Medium Scale Enterprises (SMEs).

Speaking at the Isaac Moghalu Foundation Leadership Lecture, CBN Governor, Sanusi Lamido

‘This is a demonstration of our commitment to setting standards for sustainable business practices; subjecting our processes to a rigorous evaluation by a reputable organisation, such as the British Standards Institute, demonstrates the length we can go as a Bank to ensure the security of our customers’ transactions’

Sanusi said that tier II banks are competing with tier I banks for accounts of multinationals, such as Shell, Chevron and other International Oil Companies (IOCs) which is not supposed to be.

“We don’t have too many middle-sized banks that are expected to target SMEs to boost the productive sector of the economy.

Such banks are expected to fund small businesses not multinationals,” he said. He said SMEs remain the engine of growth for the economy and have to be supported to achieve the development needed.

The apex bank had earlier said Nigeria should expect new banks as it had received applications for new licences. This became necessary after the CBN created new models for the reforms in banking, and its commitment to financial inclusion. CBN Deputy Governor, Financial System Stability, Kingsley Moghalu said some applications are being processed by the regulator and cuts across the range — commercial, merchant and others.

Bank to bank report Stanbic IBTC Bank plans to adopt a holding company (HoldCo) structure at a court ordered meeting of its shareholders. The name of the proposed firm is Stanbic IBTC Holdings Plc. This new structure will be proposed to shareholders in compliance with the revised regulatory framework of the CBN, which requires banks to divest from noncore banking businesses or adopt a holding structure.

Ecobank Transnational Incorporated (ETI) has signed a 40.7 million euro seven-year loan facility agreement with PROPARCO, the Development Financial Institution arm of the French Development Agency (AFD) and BIO, the Belgian Investment Company for Developing Countries.

In a statement, the bank said the fund would be invested in developing its systems and technology infrastructure serving nine million retail, local corporate, public sector and microfinance customers.

Fidelity Bank Plc has donated N850,000 to a member of the National Youth Service Corps (NYSC) -Miss Omonike Akinselure- under the commercial bank’s ‘Helping Hands’ scheme. The amount, which was given to her at an event in Lagos, was for her to undergo a surgery on her jaw.

The General Manager, Operations, of the bank, Mr Sam Obijiaku, who spoke at the presentation of the cheque to Akinselure, said the move was in line with the bank’s Corporate Social Responsibility (CSR) of lending support to the needy.

Access Bank has been awarded the ISO 27001, a global standard for information security management, for efficiency of its security management process, by the British Standard Institute.

In a statement, the bank said the certification is a validation of its industry leadership in epayment and compliance with best practice.

Greg Jobome, Access Bank’s Chief Risk Officer said: “This is a demonstration of our commitment to setting standards for sustainable business practices; subjecting our processes to a rigorous evaluation by a reputable organisation, such as the British Standards Institute, demonstrates the length we can go as a Bank to ensure the security of our customers’ transactions”.

32

THE NATION MONDAY, JULY 16, 2012

THE CEO

‘Insurance can’t thrive in a poor economy’

• Borokini

PHOTO: ABIODUN WILLIAMS

The real sector is the engine room of any economy. If the sector is not working, things will be at a standstill in a country. One sector that is feeling the drag in the manufacturing industry is insurance. In this interview with SIMEON EBULU and CHUKS UDO OKONTA, the Managing Director, Royal Exchange General Insurance, Mr Olutayo Borokini, says insurance can only grow where manufacturing firms are doing well.

H

OW are operators responding to the Boko Haram menace?

Everybody is concerned, because if there is insecurity of lives and property, business would not thrive. Investors would not come. Everybody is worried, including insurance practitioners. It is definitely affecting our business, in the sense that where there is violence, lives are lost as it is happening daily. If they are insured, insurers have to pay. Loss of lives may lead to increase in claims. If someone has a personal accident policy which protects him against an accident and he suffers robbery and violent attacks, if he has a reliable policy, the insurance company would be liable to pay.

For property, there are exclusions as against terrorist activities like those of Boko Haram. Typical insurance policy excludes any loss from terrorism. For example, what happened in Kaduna, if an insured is injured or loses his life, the insurance company has to pay. Unless you are able to prove that the injury or death is as a result of terrorist attack. We have a case of a client in Abuja.

There was a bomb scare and the client ran and left his car with the car keys inside, before he came back, the car had been taken, we had to pay. Those are the kinds of things we observe.

In monetary terms, how much has this menace cost the industry?

The cost cannot easily be quantified now.

If the situation continues, by the end of the year, one can estimate what the industry has lost to insecurity. Presently, economic activities are paralysed in the northern part of the country, Kaduna, Kano, Jos and others.

What it means is that businessmen and women would move their investments out of those places because of the general state of insecurity. If they had insurance in these businesses, the insurance have to be terminated and that would mean loss of businesses to insurance companies operating in those areas. If they did not move out of the country, but to other parts of Nigeria, the loss would not be much. But, if they move out of Nigeria, it would be total loss of business to

the insurance industry. The impact of the menace cannot be ascertained but insurance branches in the affected states would not be able to meet their targets. That is why we call on the government to stem the tide now.

With Local Content in place, how have insurers fared in oil and gas underwriting?

Local participation in oil and gas business has increased in the last two years, especially, with the passing of the Local Content Policy by the Federal Government. Seventy per cent is supposed to be given to local insurers. That has led to the growth of oil and gas business in insurance. The Local Content Policy has its advantages and disadvantages.

We have seek increases in the number of claims as a result of the policy. The services

‘Manufacturing is the base of any industrial development. For any insurance firm to do well, the industries have to do well. If the industries are doing well, of course, there would be a lot of opportunities for insurance. But we have seen that the manufacturing sector is going down due to lack of basic infrastructure such as electricity’

formerly provided by foreigners are now being provided by local technicians who are not really trained, fully. It would take some time to develop local skills. The result is that the risk factor is there.

Are oil and gas claims settled in dollars?

If the policies are denominated in dollars, they would be settled in dollars. You can denominate a policy in dollar or in naira.

But, usually, the policies are denominated in dollars. This is because most of the equipment used in oil and gas are imported, and if there is any damage, they have to be imported. It is better the policy is issued in the currency with which you have to indemnify.

Most of the policies are dollar denominated and most of the transactions are dollar based.

As the level of business is growing, so also is the level of claims increasing. The claims are going up because of inadequate technical capacity. Note that the local content policy also mandates the oil and gas sector to cede some of the jobs to locals, who may not have acquired the necessary training. This also results in accidents which push up claims.

By what percentage point has oil and gas claims and premium gone up?

In terms of premium, it has increased by at least 50 per cent, while the claims rose by 30 per cent. But, some how, it is still sustainable and profitable.

• Continued on page 33

33

THE NATION MONDAY, JULY 16, 2012

THE CEO

‘Insurance can’t thrive in a poor economy’ •Continued from page 32

Are insurers adequately equipped for oil and gas risks?

In terms of human capacity, we are not really prepared. This is because most of the risks are still rated abroad. We still depend on technical skills from abroad to rate some of these risks. We need to develop the local skills, capacity, in terms of ratings in the oil and gas sector.

That is something that would take quite some time. This is, because, even in the London market, where most oil and gas risks are rated, it is not easy for them to pass-on the risks. It is the duty of underwriters to train their staff.

How has Royal Exchange fared since the last recapitalisation?

In 2010, the company was doing slightly above N3 billion, but as at the last quarter of 2011, the gross premium income of the company rose to N5.4 billion. The cash collections are equally above N5 billion. The company has been growing at the rate of at least 30 per cent.

Virtually every class of the business has grown. Our oil and gas business has grown to premium income of N1 billion. Almost 30 per cent of our income come from oil and gas. The motor business is also operating at about 30 per cent as well, while the industrial risk business also accounts for 30 per cent. The rest 10 per cent is from other classes of business. We are really growing in every class of our businesses. The growth has been balanced.

What is your rating of micro and takaful insurance?

The growth of the industry in the past years has been skewed towards wholesales, but in the last four years, the regulatory authority, the National Insurance Commission (NAICOM), has been spearheading

a move into retail business. Actually, the future of insurance lies in retail. They have come up with a programme to assist the retail sector by sensitising the public, and also regulations have been passed to help develop the small sector businesses.

For example, we have the compulsory insurance, that states that all public buildings in Nigeria and buildings under construction must be insured. These are essential areas of growth for the industry.

They are all geared towards the retail market. Of course, Royal Exchange is also tapping into these opportunities through the e-products we have introduced into the market with the use of scratch cards.

Through the use of information technology, we expect to reach millions of Nigerians by putting these products on-line and selling them to members of the public, and also having an effective agency system that is well spread. The company is also expanding its branch network to reach a larger percentage of the population.

The issue of takaful, an Islamic insurance product, is a bit different from the conventional insurance product in the sense that where there are no claims in the course of the year, if you participated in the business, you partake in the profit sharing. Also takaful products are based on the principles of Sharia.

For example, you invest insurance money in other areas like breweries. Aside that, takaful products can be taken by Muslims and non Muslims.

How do you service the grassroots?

Those at the grassroots cannot be reached through the conventional brokers system. They are reached through agency networks which

‘Through the use of information technology, we expect to reach millions of Nigerians by putting these products on-line and selling them to members of the public, and also having an effective agency system that is well spread. The company is also expanding its branch network to reach a larger percentage of the population’

• Borokini

PHOTOS: ABIODUN WILLIAMS

we are developing in-house. Also, we are deploying information technology to achieve this. We are putting some of these products on our website and to sell them through the use of scratch cards and agents. That is the method we have used to reach out to as many people as possible. In fact, the intention is that all our products would be sold through scratch cards in small values which would be tailored towards specific needs.

How does the scratch card work?

The way the scratch card works is if a young man has just bought a car and wants to insure it, he would be approached by an agent who would educate him on the need for insurance. If the car owner agrees to insure the car, he would be given a scratch card. With the card, once he pays, he would be able to access our website, fill the proposal form on- line. He would then get a cover automatically. An individual can still insure the content of his/her house with the cards. Prices of certain products have been classified.

For example, an individual can get a householder policy for N1 million. At the rate of one per cent, which would cost N10,000, an individual can get a cover which can be done through the scratch card.

By just buying a card for N10,000, you key in the pin on it on our customised website, and fill the proposal form and get the cover automatically, after due confirmation.

The process assists the insured in claims collection and ensures that there are no delays.

How many agents are driving the e-business?

In all our branches, we have ebased agents that are employed on part-time basis to sell our products.

As your last year’s financial account been approved yet?

Our accounts have been approved by the National Insurance Commission (NAICOM). Our Annual General Meeting (AGM) is being planned and dividends would be paid this year. The last two years, we were not able to pay dividends because we had to make a lot of provisions. We are gradually getting out of that.

Which class of business does Royal Exchange find most rewarding?

Manufacturing is the base of any industrial development. For any insurance firm to do well, the industries have to do well. If the industries are doing well, of course, there would be a lot of opportunities for insurance. But we have seen that the manufacturing sector is going down due to lack of basic infrastructure such as electricity.

The textile industry in the last two years has gone down because of power failure. If everything is working as expected, the manufacturing and construction which are the real sector and agriculture would generate businesses for insurance. For now, because everybody is depending on oil, it is the main stay of the economy, so also, for us in the insurance sector, we are keying into it to generate revenue. The real thing is that the government has to develop other sectors. Nigeria must not be a mono product economy. The manufacturing sector is the bedrock of any industrial development.

Was there any major risks that resulted in large claims for your firm in the past one year?

Yes. Last year, there was flooding, especially in Lagos and Ogun states, which caused major disasters and affected our business.

We suffered losses in claims settlement, like the one paid to West African Milk and others. For West African Milk, a consortium of companies led by Royal Exchange paid over N3.6 billion. Our share of the risk was about 25 per cent.

• Borokini

‘The issue is also complicated by multi-nationals. Because most manufacturing firms owned by multinationals have to contend with the cost of doing business in Nigeria, which is very high, they try to manage their cost, and one of the areas of doing so is insurance’ Last year, our claims payment was over N1 billion.

How are insurers reacting to claims settlement?

Before, most insurance companies were not well capitalised. But since 2007, when the capital base of companies was increased, many companies are now in a position to pay claims. I can proudly say that claims settlement has changed. In 2008, Royal Exchange led a consortium of companies that paid the biggest claims in the industry. And that was the Nigerian Bottling Company (NBC) claims, which was about N8 billion. With that, it showed that we are able to meet our responsibilities. The Nigerian insurance industry has come of age.

The present players in the market are doing well with some exceptions. Most companies pay claims, including Royal Exchange.

What is the disposition of Royal Exchange to aviation business?

Aviation is a very high risk business, because when the losses occur, they are usually very high. It’s a line of business that a lot insurers are selective and careful about, including Royal Exchange. Aviation business is highly hazardous.

In times past, the industry tried to form a pool to underwrite aviation business, but the pool has become moribund. So, most of the aviation risks are reinsured abroad, with the local companies taking a little portion. That was why, even in the recent crash that happened, the local content was about 30 per cent.

Our exposure in that risk is very minimal; we are not involved in the main risk. We are involved as a re-insurer.

Are risks properly priced?

The bane of the industry is rate cutting. Because of the number of players in the market and the few businesses available, coupled with the weak economy, we have more

demand than supply. And there are no new businesses, so there is intense competition. With the competition, some operators have to lower the price in most cases. There is supposed to be industry standard, but it is not adhered to. Competition has forced down the prices of insurance products.

The issue is also complicated by multi-nationals. Because most manufacturing firms owned by multinationals have to contend with the cost of doing business in Nigeria, which is very high, they try to manage their cost, and one of the areas of doing so is insurance.

For example, the management of a company would tell their broker, we are not ready to spend more than N100 million on insurance for a year, how you are to structure the programme is up to you. Then the broker would go around shopping, trying to beat down the rate through reduction in prices. That would force the price down. That is the trend we are having now.

Most of the industrial risk businesses are not well priced. In some cases, the re-insurers have to intervene by rejecting the risks.

How can the challenge be addressed?

It can only be addressed through collaboration. We have too many players for the businesses that are available. As big as South Africa is, in terms of insurance penetration which is about five per cent, it has about 15 insurance companies.

In Nigeria, we have 59 firms.

How do you control such great number of players, because if there are about five underwriters on a particular business, and the five reject the risk, the broker still has an opportunity to take other five in the market and can continue until he exhausts the whole. Mind you, the companies have been capitalised up to N3 billion.

THE NATION MONDAY, JULY 16, 2012

34

EQUITIES

Equities gain N201b

NIGERIAN STOCK EXCHANGE DAILY SUMMARY AS AT 13-7-12

M

ARKET capitalisation of all quoted companies on the Nigerian Stock Exchange (NSE) rose by N201.16 billion to close at N7.260 trillion last week.

The benchmark index at NSE, the All-Share Index (ASI) advanced from 22,110.91 to 22,741.06, a cumulative increase of 630.14 points to return a growth of 2.85 per cent.

The half year results announced by some banks, during the week, spurred buying sentiments, leading to cumulative gains of 8.3 per cent from Diamond Bank and 5.6 per cent from UBA. Also on the up-tick last week were, Union Bank and Sterling Bank both, recording weekly gains of 22.1 per cent and 7.8 per cent respectively.

Analysts anticipate this positive trend in the banking sector to continue this week, as other companies in the sector announce their half year numbers.

By Taofik Salako and Tonia Osundolire

Speculators seeking to book profit mid-week, trimmed 2.3 per cent from Dangote Flour; Nestle, Honeywell Flour, Flour Mills. Cadbury also caved to bearish sentiments during the just concluded week, shedding between 0.6 per cent and 6.6 per cent at the close of the week.

Dangote Sugar, NASCON and 7-up, were howeve,r divergent to the bearish sentiments in the sector, rallying with cumulative gains of 10.5 per cent, 2.2 per cent and 5.0 per cent respectively Specifically, a turnover of 1.459 billion shares worth N9.618 billion in 18,276 deals were recorded last week, in contrast to a total of 1.007 billion shares valued at N8.507 billion exchanged in the previous week in 18,352 deals.

Likewise, a total of 250 units of 4.00 per cent FGN April

2015 valued at N183, 882 were exchanged in 5 deals.

Also traded last week were 2,180 units of NewGold Exchange Traded Funds (ETFs) valued at N5.400 million exchanged in eight deals.

At the close of trading activities for the week, the Financial Services sector of the equities market was the most active with 1.145 billion shares valued at N5.403 billion traded in 10,393 deals.

This was followed by the Conglomerates sector with 77.79 million shares valued at N140.502 billion traded in 680 deals.

Two sub-sectors both from the financial sector were the most active during the week with 1.137 billion shares worth N5.398 billion exchanged by investors in 10,340 deals. Volume in the sub-sectors was largely driven by activity in the shares of UBA Plc, Diamond Bank Plc and Sovereign Trust Insurance Plc. Trading in the shares of the companies accounted for 473.165 million shares, representing 41.62 per cent, 41.32 per cent and 32.43 per cent of the turnover recorded by the sector, subsector and total equities turnover for the week, respectively.

NIGERIAN STOCK EXCHANGE DAILY SUMMARY AS AT 13-7-12

THE NATION MONDAY, JULY 16 , 2012

35

EQUITIES WATCH

Email: taofad2000@yahoo.co.uk

The stock mortgage sector is trading at its nominal value. Secondary pricing underlines the chequered fundamentals of the mortgage stocks. But the lowly secondary valuation may imply good return prospects for Aso Savings and Loan Plc, writes TAOFIK SALAKO.

Deposit base trend

T

HE four companies quoted under the mortgage sector are valued at about N21 billion. The mortgage sector is barely six years old on the secondary market. With the earliest company listed in 2006, all other mortgage companies were listed around 2008.

Mortgage stocks had ridden on the back of the extremely bullish market during the 2004-2007eqiuity boom period to raise new capital, restructure their balance sheet and woo investors, who were fascinated by the tangible underlying assets and immense opportunities in the housing sector.

The underlying assets of mortgage companies are private and commercial housing developments. Mortgage runs on a clear business principle: a home buyer or builder obtains finance from a financial institution to complete the real estate development. Besides the demand for initial equity contribution of varied size, the property in question also serves as collateral and the ownership only fully transferred to the owner upon complete payment of the loan and the conditions thereon. Savings and loans companies, otherwise known as primary mortgage institutions (PMI), therefore mobilise savings from customers, mostly prospective home owners, and distribute such deposits to needy customers. As financial intermediation companies, PMIs are regulated by the Central Bank of Nigeria (CBN). Quoted mortgage companies are also regulated by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).

With housing estate sprouting all over, the combination of the real estate boom and stock market boom had given many investors the belief of a one-for-two deal.

What future consideration for mortgage stock?

This much was also evident in the historic emergence of the Real Estate Investment Trust (REIT), which also had its primary assets in real estate, on the stock market.

But with post-listing results, mortgage companies appeared to have suffered a failed start. This is related by the share prices of the four mortgage companies. The trio of Aso Savings, Resort Savings and Loans and Union Homes Savings and Loans are trading at 50 kobo per share while Abbey Building Society has stagnated at N1.44.

Aso Saving, share price was static at 50 kobo per share throughout 2011. It has also remained on the same spot so far this year.

But there appears to be silver linings for stock such as Aso Savings. Audited report and accounts of Aso Savings for the year ended March 31, 2012 showed gross earnings of N10.79 billion, profit before tax of N301 million and net profit after tax of N129.3 million. Deposit base stood at N68.34 billion while placement totaled N27 billion. The company has total assets of N86.24 billion and equity funds of N3.14 billion. Mortgage assets constitute 79 per cent of total loans and advances.

Growth initiatives Aso Savings has commenced steps to raise additional capital to shore up its shareholders' funds of N3.1 billion in order to achieve the revised minimum capi-

Gross earnings trend

talisation for mortgage banks of N5 billion stipulated by the Central Bank of Nigeria. Besides, the company has increased its investment portfolio, partnering with the central and state governments to invest in new housing schemes across the country. This is in line with its corporate objective of creating platforms for Nigerians to own affordable homes.

The company had in 2011 invested in the multi-billion naira Lugbe Social and Affordable Homes Scheme in Abuja, in partnership with the Ministry of Lands, Housing and Urban Development. Aso Savings is constructing 144 blocks of modern flats out of the 100,000 units of affordable homes scheme it plans to finance across the country. Also recently, the company partnered with the Oyo State government to develop 1,400 units of homes in the Oyo State government's transformation housing estate. The ground breaking ceremony was laid recently by Governor of Oyo state, Senator Abiola Ajimobi and Managing Director of ASO Savings & Loans Plc, Mr Hassan Usman in Ibadan.

Aso Savings is also leading innovations in the industry. The company had in March 2012, held a three-day national housing exhibition in Abuja where all stakeholders in the Nigeria's Housing sector gathered to showcase the best of the industry offerings to a global audience. The initiative was commended for

•MD, Aso Savings and Loans Plc, Hassan Usman

championing sectoral growth in the Nigerian housing and mortgage industries.

The management of Aso Savings said ongoing growth initiatives and strategic future plan would strengthen the company's individual and commercial businesses while enhancing the tempo of its savings generation. Already, Aso Savings' flagship product-My House Savings Account, is generally regarded as the prime mortgage product in the industry. The company indicated it intends to build on this.

With two-year average earnings per share of 7.5 kobo, which implies probable average earnings yield of 15 per cent, expected improvements in the fundamentals of Aso Savings would further enhance the underlying value of the stock.

Balance sheet trend

THE NATION MONDAY, JULY 16 , 2012

36

DUE DILIGENCE

Fidelity Bank: Improving assets quality F

IDELITY Bank Plc combined significant increase in total assets and considerable improvement in assets quality last year. The lender broadened its income sources to mitigate constrained margins in the banking sector. Audited report and accounts of Fidelity Bank for the year ended December 31, 2011 showed that gross loans and advances rose by 30 per cent but the proportion of nonperforming loans dropped by 67 per cent, improving the bank's assets quality to the highest level in recent years.

With 25 per cent increase in gross earnings, expanding income sources provided cushions against segmental dislocations, moderating the impact of high cost of funds and declining margins on the bottom-line. Interest-based incomes increased by 20 per cent while non-interest incomes grew faster by about 38 per cent. These moderated significant increase in total costs, although the lag between attendant costs and slowdown related to the expansive business restructuring and key growth initiatives watered down the bottomline performance.

The bank distributed N4.05 billion to shareholders, representing a dividend per share of 14 kobo. The significance of the dividend yield, earnings yield and dividend cover of 1.36 times showed better prospects for future dividend outlook.

Capital adequacy Total assets rose by 54 per cent to N740.9 billion in 2011 as against N481.6 billion in 2010. The increase was driven mainly by earnings assets, which rose by 56 per cent compared with marginal increase of 6.9 per cent in fixed assets. Total liabilities also rode on the back of strong growth in customer deposits to N603.5 billion in 2011 as against N345.44 billion in 2010. Deposit liabilities grew by 71.5 per cent from N326.74 billion to N560.4 billion. Both the paid up share capital and equity funds remained almost flat. While paid up share capital remained N14.48 billion, shareholders' funds inched up by 1.0 per cent from N136.05 billion to N137.36 billion.

However, the capital adequacy of the bank slipped below previous level, although it remained considerably above industrybenchmarks. The proportion of equity funds to total assets dropped from 28 per cent to 18.5 per cent. Equity funds represented 53.5 per cent of loans and advances in 2011 as against 85 per cent in 2010 while assets tied down permanently amounted to about 20 per cent of share-

2007

By Taofik Salako

holders' funds in 2011 compared with about 19 per cent in 2010.

Assets quality Fidelity Bank continued to benefit from a more efficient credit risks management framework. Considerable reduction in assets and business risks counterbalanced declines in other segments of the balance sheet and strengthened the balance sheet outlook. While nearly four out of 10 risk assets stood the risk of going bad in previous year, less than one of similar assets was so categorised in the immediate past year. Gross loans and advances rose by 30 per cent from N207.03 billion in 2010 to N268.55 billion in 2011. Non-performing loans however ,dropped by 67 per cent from N69.45 billion to N22.77 billion. These indicated that proportion of probably bad loans to total loans portfolio improved from 33.5 per cent to 8.5 per cent. With this, possible threat from classified assets to the equity base reduced from 51 per cent to about 17 per cent. Notwithstanding, the bank maintained constant coverage for bad loans.

Profitability Sizeable increase across income lines drove the top-line performance, with the larger increase in the less costly non-interest income moderating the negative impact of relatively high costs of funds and operations. Gross earnings totaled N70.05 billion in 2011 as against N56.05 billion in 2010. Interest income had grown by 20 per cent from N40.06 billion to N48.06 billion while non-interest income grew by 37.5 per cent from N15.99 billion to N21.99 billion. Non-interest income accounted for 31.4 per cent of gross

Fiscal Year Ended December 31 12 months Nm Profit and Loss Statement Gross earnings Interest income Interest expense Net interest income Total non-interest income Total non-interest expense Profit before tax (loss) Profit after tax (loss)

2008

revenue in 2011 in contrast with 28.5 per cent in 2010. But with interest expense rising by 40 per cent from N13.52 billion to N18.98 billion, net interest income only improved marginally in 2011 at N29.08 billion compared with N26.54 billion in 2010. Sizeable increase in operating expense from N29.9 billion to N38.9 billion further compounded the bottom-line, leaving pre and post tax profits at lower levels. Profit before tax dropped by 11.3 per cent from N8.65 billion to N7.67 billion while profit after tax declined by 8.5 per cent from N5.98 billion to N5.46 billion. Basic net earnings per share consequently dropped from 21 kobo in 2010 to 19 kobo in 2011.

The relatively high cost-to-income profile coloured the underlying fundamentals of the bank. With net interest margin dropping from 66 per cent to 60 per cent, average pre-tax profit margin reduced from 15 per cent to 11 per cent. Interest income/loans and advances ratio had contracted from 19 per cent to about 12 per cent, a steeper decline than average cost of fund, which only slipped from 4.1 per cent to 3.4 per cent. Operating expense amounted to about 56 per cent of total earnings in 2011 as against 53 per cent in 2010 just as average cost per employee increased significantly from N3.9 million to N5.8 million. However, average contribution of each employee stagnated at N2.3 million.

Meanwhile, the overall return outlook of the bank was encouraging with higher earnings and dividend yields overshadowing decline in underlying returns. The bank distributed N4.05 billion to shareholders, representing a dividend per share of 14 kobo. Earnings yield ranged be-

2011 12 months Nm

2010 % change

70,048 48056 18979 29,077 21,992 38,878 7,671 5,468

56,049 40055 13,515 26,540 15,994 29,857 8651 5976

Balance Sheet Assets: Cash and balances with other banks 180,669 Short-term investments 149,986 Loans and advances (net) 256,902 Total earning assets 713,915 Fixed assets 27,026 Total assets 740,941 Liabilities and Capital: Total deposit liabilities 560,365 Total liabilities 603,459 Paid-up share capital 14,481 Shareholders’ funds 137,359 Liabilities and equity 740,941

25.0 20.0 40.4 9.6 37.5 30.2 -11.3 -8.5

2009

3.9 373.7 61.0 56.4 6.9 53.8

173,893 31,664 159,561 456,343 25,272 481,615

71.5 74.7 0.0 1.0 53.8

326,741 345,437 14,481 136,053 481,615

2010

2011

tween a low and high of 12.1 per cent and 16.8 per cent while dividend yield ranged between 8.9 per cent and 12.4 per cent based on the market consideration of the bank so far this year.

Dividend cover stood at 1.36 times.

Underlying returns on equity and total assets however slipped from 1.8 per cent and 4.4 per cent in 2010 to 1.0 per cent and 4.0 per cent respectively in 2011.

Liquidity Immediate cash coverage for liabilities dropped considerably in 2011, although equally liquid short-term investments provided comfortable buffer. The proportion of cash and bank balances to total liabilities reduced from 50 per cent to about 30 per cent.

However, short-term investments, mainly in treasury bills; rose by 374 per cent from N31.66 billion to N149.99 billion. This provided strong support for intermediate liquidity position.

Loans and advances/total assets ratio stood at about 35 per cent as against 33 per cent in previous year. Loans and advances/total deposits ratio closed 2011 at 46 per cent in as against 49 per cent in 2010.

Governance & structures Incorporated in 1987 as a private limited liability company, Fidelity Bank metamorphosed from wholesale banking in 1987 to commercial banking by 1989. It subsequently changed into a public limited liability company in 1999 and six years later listed its shares on the secondary market.

Fidelity Bank is a wholly-owned Nigerian company with its shares widely dispersed among some 428,000 shareholders. The bank is

Fiscal Year Ended December 31

•MD, Fidelity Bank, Reginald Ihejiahi

managed by a 19-member board of directors under Chief Chris Ezeh and a highly diversified management team under Mr. Reginald Ihejiahi.

Fidelity Bank has a robust corporate governance and risk management framework in compliance with code of corporate governance for public companies and best practices requirements for banks. The bank did not contravene any banking rules during the year under review.

Analyst's opinion Against the background of the operating environment, Fidelity Bank showed commendable resilience and the performance in the immediate past year reassured on the prospects of the bank going forward.

Medium to long term strategic plan to continuously build the bank's balance sheet and grow general business capacity is expected to improve overall performance in the years ahead, especially with the continuing improvements in cost management and assets quality. With expanding branch network, growing customer base and increasingly active real sector finance segment, investments in key growth-driven resources should place Fidelity Bank in strong position to edge competition and tap into emerging opportunities. The lender, however, needs to reevaluate the capital requirement vis-Ă -vis the tempo of growth and expansion of its business.

Overall, there is reasonable basis to assume positive outlook for the bank

2011 %

2010 %

Asset Quality Gross Loans and Advances (Nm) Classified loans (Nm) % of classified loans Loan Loss Reserves/Classified Loans Classified Loans/Equity Stock

268,554 22,774 8.5 32.4 16.6

207,031 69,451 33.5 35.8 51.0

Capital Adequacy Equity/Total Assets Equity/Loans and Advances Permanent Assets/Equity

18.5 53.5 19.7

28.2 85.3 18.6

Liquidity Ratios Loans & Advances/Total Assets Cash & Bank Balances/Total Liabilities Loans & Advances/Total deposits

34.7 29.9 45.8

33.1 50.3 48.8

Profitability ratios Pre-tax Profit Margin Return on Total Assets Return on Equity Net Interest Margin Interest Income/Loans & Advances Interest Paid/Total Deposits Operating Expense/Total Revenue Non-Interest Income/Total Revenue Pre-tax Profit Per Employee (Nm) Staff Costs per Employee (Nm) Staff Costs/Gross Revenue Earnings per share (basic)(kobo) Dividend per share (kobo) Dividend cover (times)

11.0 1.0 4.0 60.5 11.6 3.4 55.5 31.4 2.3 5.8 27.3 19 14 1.36

15.4 1.8 4.4 66.3 19.1 4.1 53.3 28.5 2.3 3.9 26.3 21 Nil Nil

THE NATION MONDAY, JULY 16, 2012

37

Taxation

Tax Administration in Nigeria

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AX administration in Nigeria cuts across the three-tiers of government. A core success factor for any system is its position on administrative issues. An effective tax policy document should therefore be one that establishes clear guidelines on crucial tax administration issues.

In the context of the Nigerian Tax Policy, the salient issues in tax administration include the following: 5.1 Intelligence and information gathering As a first step in the tax administration process, tax authorities require adequate and correct information to carry out their duties of assessment and collection of taxes. Ideally, such information should be provided voluntarily by taxpayers. However, this is not always the case and in a large number of instances, tax authorities have to source for and obtain information other than voluntarily from the tax payer. In addition, even in instances, where taxpayers voluntarily provide information, such information, may either not be complete or accurate.

rigorous than a routine audit. In addition tax authorities shall ensure that taxpayers understand the difference between tax audits and investigations given that the outcome of an investigation may lead to legal action against taxpayers. Taxpayers on their part shall be encouraged to remain in compliance with all tax requirements as this will significantly impact the outcome oftax audits and investigations.

Overall tax authorities shall ensure that audits and investigations are carried out in an open, fair and independent manner and taxpayers shall be afforded the opportunity to make necessary representations and provide relevant information to assist tax authorities carry out a fair and objective analysis of the taxpayer’s records before arriving at a decision on the taxpayer’s status. In addition any decisions reached by tax authorities on the basis of audits and investigations shall be subject to review and appeal by taxpayers following the normal appeal process provided in the various tax legislation.

It is in this respect, that authorities would be required to develop workable and secure structures for intelligence and information gathering. Such structures shall compliment the normal administrative structures in place for obtaining information from taxpayers. The tax authorities would therefore be required to develop internal competencies for such purposes and also partner with relevant government organs, such as the various law enforcement agencies, data gathering agencies and other agencies which have custody or access to information relevant to the activities of tax authorities.

In addition to the above there shall be close collaboration with these agencies to facilitate information gathering and in this regard, tax authorities shall consider short and long term measures, such as secondment of personnel, human capacity development programmes (training and provision of tools), proper use of information technology and creation of permanent inter-agency structures, towards realising these objectives. Reliance shall also be placed on the introduction and use of the unique taxpayer identification number to facilitate easier identification and monitoring of tax payers. Taxpayers shall be properly educated on the intelligence and information gathering methods of the tax authorities and all actions carried out by the tax authorities in this regard shall be done in line with statutory and Constitutional provisions, which safeguard the right to privacy of taxpayers. This is without prejudice to the rights of tax authorities (in appropriate cases), to use the instrumentality of the law to ensure full and complete access to information and data required for the effective and efficient administration of taxes in Nigeria.

5.2 Registration of taxable persons In order to have an effective tax system in which all tax payers are covered, every taxable person (which includes companies, enterprises, partnerships and other business entities) must be registered for tax purposes. Registration is a fundamental step. in the tax administration process and tax authorities at Federal and state- level shall be required to register all tax payers and issue a Unique Tax Identification Number (U-TIN). This will be issued along prescribed and standard formats, upon registration by the taxpayers. No’ taxpayer should have more than one U-TIN irrespective of place of registration. In addition every U-TIN shall be unique to a taxpayer.

The U- TIN will provide a uniform mode of identification for all taxpayers in Nigeria. Government at all levels are therefore enjoined to support the introduction of a uniform system of registration and allocation of U-TIN and the creation of a data-base accessible to all tax authorities (and other Federal, state and local government agencies) in the country. This will provide easy and complete access to taxpayer information nationwide, which can be achieved by the efficient use of information communication technology and ultimately reduce the cost of administration-and supervision while enhancing higher compliance.

The relevant tax authorities and the Joint Tax Board should ensure the successful administration/operation of the U-TIN programme.

5.3 Filing and returns processing Filing and returns processing is a core process in the tax administration system. It encompasses all the processes commencing from preparation of returns and filing of self assessment by the taxpayer, to the issuance of assessments by the tax authority and the acceptance of returns filed by the taxpayers. It also includes the review and amendment of tax returns by taxpayers and tax authorities, examination of accounts and the determination of the tax liability of the taxpayer. The process terminates where a final liability has been agreed between the tax authority and the taxpayer and only payment is outstanding.

Given that payment of tax is based on either self assessment or assessments issued by the tax authority, It is necessary that tax authorities accord, this particular function priority. In this regard, tax payers shall be encouraged to file returns on a self assessment basis in compliance with tax laws, as it saves significant time and resources required by tax authorities in ensuring compliance by taxpayers. This can be done, by developing structures that will enhance and simplify compliance, such as the creation of a reliable taxpayer data base, electronic compliance system, automation and standardisation of the filing and returns process and regular publication of tax compliance manuals. Tax authorities shall also carry out widespread and regular taxpayer enlightenment on the filing and returns process.

Tax officials shall also be trained on all aspects of the filing and returns process and it shall be the responsibility of tax authorities to ensure that a transparent and simplified process is introduced which would have a multiplier effect on the rate and level of compliance and ultimately enhance tax collection and the overall effectiveness of the tax system.

5.4 Payment processing and collection Payment processing and collection is closely linked to the filing and returns process discussed above. This is the culmination of the core tax functions carried out by tax officials and usually signifies the successful conclusion of a filing and return circle.

In order to ensure an effective payment processing and collection system, tax authorities shall embrace the use of electronic payment (e-payment) systems in all transactions to drive automatic and improved remittances and collections. In addition, there shall be the use of technology and related systems in tax administration particularly in the payment and collection process. A rigorous and transparent, book keeping, financial regulation and reporting framework should be adopted by tax authorities at all levels of Government to minimise and avoid leakages of tax revenue.

Tax authorities shall partner with financial institutions and other relevant government agencies to support a framework for automated

5.7 Enforcement of tax laws (evasion and avoidance) It is acknowledged that in every system there are bound to be leakages.

It is, therefore, the duty of tax authorities to identify all such avenues for leakages in the Nigerian tax system and minimise or eradicate these leakages. In this regard, two of the major means by which leakages occur in the tax system are tax evasion and avoidance.

• ALHAJI KABIR MOHAMMED MASHI, AG. EXECUTIVE CHAIRMAN, FIRS

The U- TIN will provide a uniform mode of identification for all taxpayers in Nigeria.

Government at all levels are, therefore, enjoined to support the introduction of a uniform system of registration and allocation of U-TIN and the creation of a data-base accessible to all tax authorities (and other Federal, state and local government agencies) in the country. payment systems. Avenues for leakages shall be identified with the assistance of these partner institutions and promptly addressed. Tax officials and taxpayers alike shall be encouraged and educated on the use of electronic payment systems, to safeguard the integrity of the tax payment and collection system.

Where an effective and efficient system of payment and collection processing is adopted, tax revenue can be properly collected and maximised, thereby increasing overall tax take and providing sustainable revenue for Government.

5.5 Record keeping Record keeping is ‘another core and integral function in tax administration. Significant time, effort and resources are usually channelled towards intelligence and information gathering by tax authorities. The process does not however end once information or other relevant data are obtained by tax authorities, rather there must be a sustainable system for the retention and retrieval of such information. This process is known as record keeping.

Information gathering usually entails interface with and requires the assistance of third parties, however record keeping is entirely within the control of tax authorities. In this regard, all tax authorities are required to establish specialised record keeping units as core functions within the tax administration structure. Such specialised units should be properly staffed and provided the necessary tools to discharge their duties. Manual record keeping systems should be de-emphasised in favour of electronic systems. It is expected that where processes such as registration of taxpayers, filing and processing of returns and payment are already automated, it would aid the deployment of an automated record keeping system.

The benefits derivable from electronic and automated systems of record keeping in tax administration include ease of retrieval and movement of records, integrity and durability of the record keeping system and increased tax payer confidence in the system. Tax authorities should partner with the relevant agencies to set up automated systems and also train tax officials in the use and maintenance of such systems.

An electronically enabled system of record keeping would not only be in line with global best practices but greatly enhance the tax administration process and assist tax officials efficiently discharge their duties.

5.6 Audit and investigation As part of the tax administration process, tax authorities usually carry out routine verification of returns filed by taxpayers to confirm completeness and accuracy. In addition, tax authorities may when deemed necessary carry out specific review of a taxpayers records in order to ascertain the tax status of the taxpayer, whether the records have been previously provided to the tax authorities or not. These processes encompass the audit and investigation functions in the tax administration structure.

Audits of taxpayer’s returns are routine and carried out periodically, while investigations are done for a specific purpose or in respect of the specific activities of a taxpayer. Audits should be carried out frequently and within a reasonable period after the submission of returns by the taxpayers to minimise difficulties which may be occasioned by the passage of time. The tax audit function shall be a highly specialised function and tax audit processes shall be simplified and made as taxpayer friendly as possible. Tax authorities shall promote the use of electronic and other technology related systems in the audit process to reduce time and cost and protect the integrity of the audit process. Tax authorities shall carry out routine enlightenment campaigns on tax audits and there should be frequent forums where tax authorities and taxpayers interact and discuss issues related to the audit process.

Tax investigations shall be carried out in the same manner as audits, however, it is expected that the investigation process shall be more

Tax evasion can be defined as a deliberate refusal to pay taxes or make tax returns with the intention of fraudulently retaining tax revenue or concealing the actual tax status of a taxpayer. Avoidance on the other hand is the means by which tax liability is minimised or avoided by exploiting the loopholes in the law. While evasion is illegal and is a criminal offence, avoidance is not illegal, but it is not encouraged. One tax evasion mechanism prevalent in the Nigerian system, amongst others is touting, which is the employment of middlemen or fraudulent tax “consultants” to assist in the filing of fraudulent returns and in the procurement of fraudulent tax clearance certificates. One of the reasons why touting thrives is the ignorance of tax payers who are regularly fleeced of their monies that they would otherwise have paid to the government as tax. This ignorance is exploited by criminals in collaboration with fraudulent tax officials (existing, retired, or dismissed) of the relevant tax authorities. Another reason is time constraint, as many taxpayers are too busy and cannot afford the time it takes to process tax related matters. Another reason is that it does not require a lot of investment to achieve high profits, accordingly it is a “very profitable” business venture. Risks to date are low as very few incidences of criminal prosecution and conviction of tax offenders are initiated and completed by tax authorities and law enforcement agencies.

Accordingly, a critical first step to address these leakages is the undoubted need to fully modernise and automate the tax system, improve taxpayer convenience in the assessment and payment process whilst at the same time entrenching effective and modern human resource management practices in the tax authorities. Second is the need to build the performance oriented culture with persons with the relevant skills that are updated regularly overtime. Third, tax authorities should carry out continuous tax payer enlightenment and education on the unlawful nature and consequence of tax evasion and collaborate with relevant agencies including law enforcement agencies to identify and bring tax evaders into the tax net. Fourth, Government and all tax authorities must work in a collaborative manner to tackle the leakages in the system. There is need to see the tax system as belonging to all Nigerians and work together to get the best of the system, as any gaps are readily exploited by tax evaders. Fifth, the process of criminal prosecution cannot be relegated to the background in the quest to collect revenue. Criminal prosecution of tax evaders is necessary to send the right signals to defaulters, that evasion is a criminal offence and would be viewed with all seriousness by tax authorities and law enforcement agencies. This process shall be carried out in line with the provisions of tax and other relevant legislation.

With respect to avoidance, tax authorities and legislators should identify and address the loopholes in the laws to minimise the incidence of tax avoidance. Where a particular provision of the law is subject to various interpretations which create avenue for avoidance, necessary clarification shall be provided in the form of information circulars or rulings to resolve any such ambiguity.

Overall, however, it shall be duty of tax-payers and their authorised agents to ensure that they fulfill their legal and patriotic duty to compute, declare and pay full and correct taxes to the Nigerian government. In this regard, government shall ensure that tax payers who comply are rewarded and those who do not comply are sanctioned as follows: a) Reward for compliance Tax authorities should be encouraged to provide incentives and other rewards to tax payers who comply with tax laws. Tax authorities may also hold fora where such tax payers are publicly recognised and honoured. It is hoped that such gestures would elicit favourable response from tax payers and result in higher compliance rate. (b) Sanctions for non-compliance In the same manner that rewards and incentives are provided to compliant tax-payers, sanctions and punitive measures may be taken against recalcitrant offenders and non- compliant tax payers. In this regard tax authorities shall explore all avenues in the laws and ensure that the full weight of the law is brought to bear on such tax-payers.

Measures, which may be taken by tax authorities include legal prosecution before the courts, freezing of the bank accounts of offenders with lien over monies lodged in such accounts, sealing off and distraining of the premises of such tax-payers, public notices showing the tax status of such tax-payers (name and shame) and application to the court for the winding up of tax debtors and recovery of unpaid taxes, where necessary. It should be emphasised that tax authorities are at liberty to employ any legal measures to recover taxes and ensure compliance by tax offenders.

5.8 Operation and funding for tax refunds The tax refund process is also an important and integral part of tax administration. Tax authorities are required to refund excess taxes paid over by taxpayers in order to obtain the confidence and trust of taxpayers. It is, therefore, important that tax payers understand that they can recover excess taxes paid to tax authorities in a timely and complete manner. In this regard, the provisions of our tax laws on tax refund shall be strictly complied with and tax payers should be encouraged to take benefit of these provisions.

• To be continued

THE NATION MONDAY, JULY 16, 2012

38

BUSINESS INTERNATIONAL

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PMorgan has said the loss from the bank’s chief investment office’s errant trades has totalled $5.8 billion so far this year.

The three managers who led the trading division no longer work at the bank and could lose as much as two years of income, according to JPMorgan. All the traders involved with the so-called London Whale losses have also been “separated” from the bank, without any severance.

JPMorgan Chief Executive Officer Jamie Dimon praised Ina Drew, who led the CIO office, and said she volunteered to give up two years’ worth of pay, the maximum amount available for clawbacks.

Drew retired from the firm shortly

JPMorgan’s trading loss hits $5.8b after the bad trades came to light.

When the losses were first revealed on May 10, CEO Jamie Dimon pegged them at around $2 billion but said they could move higher.

JPMorgan the losses totalled $4.4 billion in the second quarter and Dimon said the most the firm could still lose is $1.7 billion. But he also noted: “It doesn’t have to lose money at all.”

Dimon said the CIO would no longer trade derivatives, which

were behind the big loss. Instead the investment bank will be unwinding the original trades.

He said the firm has already reduced its position in an obscure index known as IG-9, where the CIO’s bets were made, by 70 per cent.

“What remains isn’t that big of a deal,” said Dimon.

JPMorgan executive Michael Cavanaugh who oversaw the review of the London Whale defended how much Dimon and CFO Doug Braunstein knew about the poten-

tial losses back in April, when Dimon dismissed press reports of the London Whale as a “tempest in a teapot.”

Cavanaugh said Dimon, Braunstein and other senior executives were assured by CIO traders and managers that the total loss from derivatives bets ranged from a profit of $350 million to a loss of $250 million.

JPMorgan said the firm has emails, voice tapes and other documents that suggest traders may have been

hiding the losses. Bank executives said they’re no longer confident in the figures reported by the CIO and that JPMorgan would be restating its first-quarter earnings. The restatement will reduce first-quarter net income by $459 million.

Commercial lending was a bright spot, increasing 24 per cent year over year. But real estate lending dried up. JPMorgan’s home equity loans and mortgage loans declined by more than $11 billion from the prior year’s quarter.

LCD pays to settle pricefixing case LG, the world’s second biggest producer of LCD displays LG Display has agreed to pay $380million (£246million) to settle an LCD panel price-fixing case in the United states.

The company denied doing anything wrong, but said it had agreed to a settlement to avoid “the expense and burden of protracted litigation”.

It was the largest amount paid by any of the 10 companies that have settled the case, including Toshiba, Samsung, Sharp and Hitachi.

They were accused of fixing the prices of LCD panels between 1996 and 2006.

The money will go to US consumers and state governments. The alleged price fixing would have increased the prices of devices using LCD displays such as televisions and laptop computers.

Samsung paid $240million to settle the case in December, while Toshiba is to pay $21million and AU Optronics is to pay $170million.

Starbucks plans fifth U.S. coffee roasting factory STARBUCKS Corp., the world’s largest coffee-shop operator, said it will open a new plant in Augusta, Georgia, creating more than 140 manufacturing jobs.

The factory will cost $172 million and open in early 2014, the company said today in a statement.

Fast food wars: Competition is as fierce as ever among fast and fastcasual restaurants looking to take a bigger bite of the market. Here are some recent moves these companies have made in an effort to lure more customers and pad their profits.

Once complete, the facility will produce products manufactured abroad, including Starbucks VIA Ready Brew, as well as the coffee base for Frappuccino blended beverages and many of Starbucks readyto-drink products.

The plant will be Seattle-based Starbucks’s fifth manufacturing facility in the U.S. The company’s existing network of four roasting facilities employ more than 830 people in Kent, Washington; York, Pennsylvania; Sandy Run, South Carolina; and Carson Valley, Nevada.

“During such challenging economic times, I am thrilled that we are creating jobs and building something special right here in Georgia,” said Peter Gibbons, executive vice president, Starbucks Global Supply Chain Operations.

Starbucks, which through last week had risen 15 per cent this year, gained 0.7 per cent to $53.03.

From left: Senior Representative, Singapore Ministry of Foreign Affairs, Mary Seet-Sheng; Director-General, Customs,Fong Yong Kian; World Customs Organisation(WCO) Secretary-General,Kunio Mikuriya;Permanent Secretary, Singapore Ministry of Transport,Pang Kin Keong; ICAO Secretary General, Raymond Benjamin;Deputy Secretary,International, Singapore Ministry of Transport,Lee Yuen Hee and Director-General, Singapore Civil Aviation Authority,Yap Ong Heng at a Joint Conference on Enhancing air cargo security and facilitation – Synergy through cooperation by Singapore Ministry of Transport, Singapore Customs, the International Civil Aviation Organisation (ICAO) and World Customs Organisation (WCO) in Singapore.

Consumer sentiment in U.S. drops to lowest this year

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ONFIDENCE among United States’ consumers unexpectedly declined in July to the lowest level this year as Americans grew more pessimistic about their finances.

University of Michigan index of consumer sentiment dropped to 72 per cent this month from June’s 73.2 reading. The gauge was projected to rise to 73.5 per cent , according to a median forecast of 69 economists surveyed by Bloomberg News.

The weakest quarter of hiring by companies in two years along with stock market volatility tied to Europe’s debt crisis threaten to hold back the household spending that accounts for about 70 per cent of the economy. Sales at retailers such as Hhgregg Inc. (HGG) may struggle as fewer consumers expect their incomes to increase.

“The labour market has been pretty slow to recover, house prices are still low and there’s a lot of nervousness about what’s going on in Europe” and Washington, said Michael Hanson, a senior U.S. economist at Bank of America in New York, who correctly forecast the July reading. “The economy looks like it’s slowing.”

Estimates for the Michigan confi-

dence measure ranged from 71.5 to 76.5, according to the Bloomberg survey. The index averaged 64.2 during the last recession and 89 in the five years before the 18-month economic slump that ended in June 2009.

Stocks climbed, snapping the longest losing streak since May for the Standard & Poor’s 500 Index, as JPMorgan Chase & Co. rallied after reporting its results. The S&P 500 gained 1.4 per cent to 1,353.47 at in New York.

Elsewhere, China’s growth slowed for a sixth straight quarter.

Gross domestic product expanded 7.6 per cent in the second quarter from the same three months last year, the weakest in three years, the National Bureau of Statistics said today in Beijing.

In Europe, Spanish lenders’ net borrowings from the European Central Bank jumped to a record 337 billion euros ($411 billion) in June as the European bailout agreement failed to ease their access to funding.

The University of Michigan’s measure of confidence mirrors the Bloomberg Consumer Comfort Index, which stagnated last week and has fallen since the end of June.

The Michigan survey’s index of

consumer expectations for six months from now, which more closely projects the direction of consumer spending, decreased to 64.8, also the lowest this year, from 67.8.

One in 10 consumers surveyed said they expected their inflationadjusted incomes would increase in the next 12 months, according to economists at Barclays Plc in New York.

Electronics retailer Hhgregg this week cut its full-year profit forecast amid declining sales of televisions.

Dennis May, chief executive officer of the Indianapolis-based chain, said purchases in the fiscal first quarter are “an indicator of the difficulty in the current retail environment,” according to a statement on July 10.

The Michigan gauge of current conditions, which asks Americans whether they’re better off than they were a year ago and if they think it’s a good time to buy big-ticket items like cars, rose to 83.2 in July from 81.5.

Employment growth has waned relative to its pace earlier this year.

Private payrolls, which exclude government agencies, increased by 84,000 in June, capping the worst quarter for corporate employment since the first quarter of 2010. The

jobless rate held at 8.2 per cent.

The Federal Reserve has signaled that a further economic slowdown would bring growing support among policy makers for additional steps to spur the three-year expansion, according to minutes of the June 19-20 meeting released this week in Washington.

A few members of the Federal Open Market Committee said the Fed should ease policy to move the economy toward its targets for full employment and stable prices. Several others said more action could be warranted if growth slows, risks intensified or inflation seemed likely to fall “persistently” below their goal.

Cheaper energy costs are providing some respite for Americans.

The price of a gallon of gasoline was $3.39 as of yesterday, according to AAA, the biggest U.S. auto group.

While that’s down from a high this year of $3.94 in April, fuel prices are up about 5 cents higher since the end of June.

Consumers in today’s confidence report said they expect an inflation rate of 2.8 percent over the next 12 months, the lowest since October 2010 and down from 3.1 percent in June.

Over the next five years, the fig-

Wells Fargo pays $175m in racial bias settlement

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NITED States bank Wells Fargo will pay at least $175million (£113million) to settle accusations that it discriminated against African-American and Hispanic borrowers, the Department of Justice (DoJ) has said.

The bank is accused of charging non-white customers higher interest rates and fees on mortgages than it charged white customers

between 2004 and 2009.

But it said it was settling the matter “solely for the purpose of avoiding contested litigation with the DoJ”.

The bank will pay $125million in compensation to about 4,000 customers and $50m in direct aid to communities hit by the sub-prime housing crisis.

The US government alleged that Wells Fargo “engaged in discrimi-

natory lending practices against qualified African-American and Hispanic borrowers - thereby violating the Equal Credit Opportunity Act and the Fair Housing Act” from 2004 to 2009.

A BBC investigation in 2009 uncovered Baltimore’s “ghetto loans” Subsequent investigations found “systemic discrimination” in Wells Fargo’s lending practices, deputy Attorney General James Cole said.

Non-white borrowers were also steered towards riskier sub-prime loans, while white customers received standard loan terms, the DoJ said.

“An applicant’s creditworthiness, and not the colour of his or her skin, should determine what loans a borrower qualifies for,” Mr Cole said.

The DoJ said it was the secondlargest fair lending settlement it had ever reached.

THE NATION MONDAY, JULY 16, 2012

39

INSURANCE

NAICOM to go after erring brokers

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HE National Insurance Commission (NAICOM) would go after brokers, who operate despite the withdrawal of their licences, the Commissioner for Insurance Fola Daniel has said.

He told The Nation that the commission has published the affected brokers’ name to intimate that they were no longer in business.He said the commission would embark on the-spot-assessment to ensure that the brokers comply with the law.

The firms that were suspended are APL Insurance Brokers Limited, ASO Solid Insurance Limited, Bambi Insurance Broker Limited, CIB Insurance Broker Limited, Cachet Insurance Brokers Limited, Clown Field Royal Insurance Limited, Cobal Insurance Brokers and Col-Val Insurance Brokers.

Others are Commercial Marine Brokers, Consolidated Insurance Brokers, Corporate Trust Insurance Limited, Delight Insurance Brokers Limited, Fair Deal Insurance Limited, First Cover Master Broker Limited, Goodgate Insurance Limited, Hope equity & Trust Brokers Limited, I B P C Insurance Brokers Limited, Inland Insur-

Stories by Chuks Udo Okonta

ance Brokers Limited, Ma Aji Insurance Brokers Limited and Mark of Security Insurance Limited.

Also affected are Mbc Insurance Brokers Limited, Mecartend Insurance Brokers Limited, Megatech Insurance Brokers Limited, MultiLateral Insurance Brokers, Risk Guard Insurance Broker Limited, Royal Trust Insurance Brokers Limited, Shield Insurance Broker Limited, Tulip Insurance Brokers Limited, Uni-Chartered Insurance Brokers, Unimag Insurance and United Modern Insurance Brokers.

President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo said the council would collaborate with others to stem the activities of charlatans who portray the industry in bad light.

She said: “In view of the need to affirm the provisions of the NCRIB Acts on registration of insurance brokers and eliminate the existence of charlatans from the insurance broking profession, NAICOM has continued to play complementary roles in this area, an issue he said is commendable.

NAICOM has forwarded a circular to the brokers operating with

their licences, but without NCRIB registration certificates to normalise their records with the council immediately. The council has also forwarded written circulars to all those affected to comply with the directive to avoid embarrassment as the council would soon publish the names of its members in some national dailies in adherence to the law.”

She noted that the NCRIB law stipulates that the registration of an insurance broker with the NCRIB is a condition to be met before one can be licensed by NAICOM. She expressed misgivings that some firms were flouting the law.

Osijo noted that the council has empowered its relevant committee, adding that it would only to record its expected goal of expanding the frontier of public awareness on insurance broking if the committee and chapters, which are close to the grassroots and are committed and vibrant.

She called on brokers to be committed to professionalism to deepen their businesses, adding that only professionals could excel.

‘160 MDAs yet to submit list of retirees’

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O fewer than 160 Ministries, Departments and Agencies (MDAs) of the Federal Government are yet to submit the data of their employees, who would retire next year, the National Pension Commission (PenCom) has said.

In a statement, its Director-General Mohammad Ahmad, urged them to compile and send the information before the end of this quarter or risk being left out in the pension scheme.

It said: “To ensure that adequate arrangements are made for hitch free exercise, a circular was issued by the Commission to all Treasury Funded MDAs requesting them to forward the list of their employees due for retirement between January and December, 2013 as well as those that had retired but yet to be enrolled on or before March 31, 2012.”

He said some MDAs have since 2006 failed to submit their staff data to the PenCom, adding that out of the 470 MDAs, less than 400 have complied with the directive to submit their nominal rolls to the commission.

Besides, he said some of those who complied submitted incorrect information. He noted that over 700,000 employees’ accounts are credited regularly

and that PenCom hopes to collaborate with Independent Corrupt Practices and other Related Offences Commission (ICPC) to make the defaulters comply.

He said: “Up till now, some MDAs have not submitted their nominal rolls since 2006. We also asked employees to give us details; that also became an issue. We now went back to design a different format entirely that captures their salaries as well as their nominal roll in a very simplified way. Out of 470, less than 400 have submitted their nominal rolls. Of course, the balance includes those who have submitted with incorrect information in their nominal roll.

“The commission as a responsible organisation cannot transfer money into an account of an individual we cannot vouch for because anybody can open an account and say he is a staff member of the Ministry of Defence. We have tried all we could like sensitisation and seminars with MDAs and meetings with pension desk officers but, maybe because retirement for most people is not something that is immediate, therefore, they don’t look at it as an issue. Those that are serious made sure they got all the necessary documents.”

Niger Insurance returns to profitability, posts N1.2b profit

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•From left: Ben Etiaba, Director, Aquila Capital Group; Bashorun J.K Randle, Chairman, Aquila Capital Group, Chizor Malize, Managing Partner, Brandzone Consulting LLC, Brand Consultants to Aquila Capital Group; Chuka Onwuchekwa, Managing Director/CEO, Aquila Leasing Limited; Uche Obilor, Director, Aquila Capital Group at the formal launch of Aquila Leasing Brand in Lagos.

Operator advocates enforcement of insurance

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NLESS defaulters are penalised for not acquiring compulsory insurance, operators would continue to find it difficult to sell the products, former Chairman Nigerian Insurers Association and Managing Director LASACO Assurance Plc Olusola Ladipo-Ajayi, has said.

He told The Nation that until this is done, people would not readily buy insurance. He added that the industry’s Market Development and Restructuring Initiative (MDRI) has not gone as far as operators expected.

He noted that this was because; there are teething problems, such as the training of agents and others.

He said: “The problem with Nigeria is that we need law enforcement to sell insurance at this point in time given our level of development. Until there is enforcement, people would not readily buy insurance. If you

look at the Pension Act, as widely publicised as it is, how many Nigerians employers have taken the group life scheme apart from the Federal Government and a few states. How many states have enacted their Pension Act? The thing is a kind of social change and there is need for more enforcement.”

He noted that the only area of success that has been remarkable is where insurance companies work with enforcement agents in some states to enforce certain aspect of the law. He said it is worrisome that most Nigerians do not know that there is a law that expects them to insure their properties.

“We would not get there over night. MDRI is a very good initiative meant to deepen the industry. We have to train agents, keep them by paying allowance pending when they are able to produce.

But one wonders how long we would be able to keep them.

“If it gets to a position when

people are penalised for not providing the insurances they took for their losses, it would become easier for insurers to sell their products. Now, if you go to an average Nigerian and tell him to insure his house because there is law for such, he would ask you where, does the law exist? Most Nigerians do not even know about the law.”

He noted that aside the failure of enforcement, operators’ attitude to business has contributed largely to the poor development of the industry.

“The insurance industry is its own worst enemy, because competition has driven down prices and the price has continued to go down into unprofitable level. So, it is difficult to grow the industry. We are running ourselves below profitable level due to pressure in the competitive market that is why we cannot grow beyond what we are doing at present,” he said.

IGER Insurance Plc has posted after tax profit of N1.2 billion for the year ended December 31, 2011.

This indicates a tremendous leap in profit given that the company recorded a loss of N123 million in 2010.

Its Managing Director Clinton Uranta, who spoke to reporters in Lagos, said the company’s board has approved a dividend of 2.5 kobo per share for shareholders. He added that the gross premium income rose from N7.04 billion in 2010 to N7.8 billion in 2011.

He noted that while the underwriting profit of was N1.54 billion, profit from deposit administration increased from N120 million to N1.53 billion.

The company’s shareholders fund increased from N4.2 billion to N5.3 billion, while its total assets stood at N21.2 billion at the end of December 2011.

He said: “After having weathered the storm successfully in

the difficult business environment prevailing in Nigeria for the past 50 years, Niger Insurance plans to organise a befitting golden jubilee celebration next month.

“As the insurance firm has evolved over time to be one of the most sought after insurance providers in the country, the management is convinced that the golden jubilee anniversary is a giant milestone that needs to be celebrated considering the fact that many of the companies, which commenced business in the country 50 years ago are no longer in operation.

“Niger Insurance has not only remained afloat over the years, it has also carved a niche for itself in its area of business and it is waxing stronger day by day.

“As a company that is always playing by the rules, Niger Insurance has never been found wanting in claims payment and it is keeping faith with its promise to pay genuine claims promptly.“

Sovereign Trust opens branches

S

OVEREIGN Trust Insurance Plc has opened two branches in Ilorin, the capital of Kwara State and Osogbo, Osun State.

Its Managing Director Wale Onaolapo said his aim is to take the products and services of the organisation closer to the public.

He noted that the company has set its focus on how to optimise its operations and profitability by ensuring that competitive products and services are made available to the public.

He said the gospel of insurance is a continuous project that must

be preached till every Nigerian will voluntarily walk in to pick up an insurance cover; adding that the company believes this would come to pass in not-toofar a future which explains why it will continue to increase its branch network.

Head of Corporate Communications and Brand Management Segun Bankole, said the decision to extend its services to the new locations was borne out of the company’s objective of exploiting the underdeveloped areas of the market by developing and creating innovative financial and insurance services to meet customer needs.

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LABOUR HALF YEAR REVIEW

Insecurity: NLC plans peace summit in August

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•Worker protesting fuel subsidy removal

Labour's unfulfilled dream

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OR the Labour movement, it has been rough in the last six months, considering its seeming unachievable feats. Workers and trade unions started the year with the struggle to kick against fuel price increase as announced on January 1 by President Goodluck Jonathan. Having achieved a partial victory, Labour rolled out conditions the Federal Government needed to meet to end the rot in the oil sector.

Faroukgate This later led to Farouk Lawan's Adhoc Committee that started, according to many, on a good note.

Even Labour praised and encouraged the activities of the committee. But recently, the unexpected happened. The assumed 'righteous' Committee Chairman was indicted by oil magnate, Femi Otedola. In the face of the crisis, Labour held on to its belief in the report already produced and submitted by the Adhoc Committee on Oil Subsidy.

It called for its implementation, saying whoever erred must be brought to book, but the Report must be implemented.

Now that the court has stopped the Federal Government from implementing Farouk Committee's Oil Subsidy Report, Labour would expectedly embark on a new round of agitation.

Its theme for this year's May Day celebration - Right to Work, Food and Education: A panacea to Insecurity aptly captures the hope of the workers' dreams, which are far from being realised. The struggle continued as labour leaders fought tooth and nail to ensure compliance with the National Minimum Wage Law that stipulates a uniform national minimum wage of N18,000 for workers.

The right to work, food and education that labour preaches is hinged on living wage. Implementation of the minimum wage, according to labour still remains a mirage in many states. The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) protested against non-implementation of the stipulated national minimum wage.

Job cuts While Labour struggled for implementation of the N18,000 minimum wage, many workers kissed their jobs goodbye due to no fault of theirs. Employers in many of the

By Dupe Olaoye-Osinkolu

sectors of the economy reduced staff strength due to the harsh economic situation.

Workers in the manufacturing, textile and banking sectors are part of the job loss statistics. In the banking sector alone, about 1.7 million jobs were lost in the period under review. Many trade unions, having suffered dwindling membership due to job cuts are investing. They moved away from the traditional reliance on check-off dues. The National Union of Food, Beverage and Tobacco Employees (NUFBTE) took the lead in such area. The textile union is hanging on to its estate investments, a foresighted feat achieved during Adams Oshiomhole's general secretaryship days when the union was buoyant. The union in the last six months has been educating its remaining members on how best to go about their duties, even as it appealed to the government to ensure the turn-around of the industry towards creating jobs.

NLC NLC tried in vain to put its house in order. It has, however, not been able to do so as the NLC has a number of court cases filed against it by some of its sacked workers. They include the former General Secretary, John Odah and former Head of Information department, Onah Iduh.

The court has advised that the NLC try an out-of-court settlement with the aggrieved parties. Both parties are working towards that, but Odah is pushing for reinstatement as General Secretary, since according to him, NLC's condition of service states that an employee can only leave the service, if he has put in 35 years in the service of the NLC or is 65 years of age or if she commits a crime. He said none of these conditions apply to him. Hence he is seeking reinstatement as general secretary.

Odah's successor, in acting capac-

ity, Owei Lakemfa, has also been removed from the exalted office of general secretary. The leadership is now opting for rotational general secretaryship. Chris Uyot of the Information department is the acting general secretary. Internal wrangling has cast doubts on the NLC's ability to fight and win workers' causes like it used to do.

TUC waxes stronger On the other hand, TUC is waxing stronger. The senior workers seem to have seized the opportunity of the disorderliness in the NLC, to reposition itself, economically and as an organisation. TUC rolled out 150 buses during the period under review with Federal Government's revolving loan. When The Nation visited The NLC's Labour Mass Transit Service yard in Yaba, to find out why the buses are no longer on the roads, most of them were down.

Pension fraud Billions of naira meant for paying pension was stolen and nobody protested.

NLC, as the legitimate face of workers was supposed to have stood up for the pensioners. On Workers' Day, TUC urged "good men to join hands in a common cause in order to achieve great changes. It is, therefore, important that every labour leader at every cadre of the movement should remain conscious of our common cause; our common interests and our common destiny so that we would forever be united towards generating the critical mass needed for the constant renewal of the nation. This is not the time to refuse to do something or adopt "sidon look" attitude.

Having said that, the masses felt Labour would hasten the process of justice with its intervention. That is yet to happen.

People believe that if the scale of the police pension scam is staggering, so should the level of public outrage be and that no retired worker

‘Many trade unions, having suffered dwindling membership due to job cuts are investing. They moved away from the traditional reliance on check-off dues’

deserves to be deprived of his or her monthly entitlements. High levels of corruption or misconduct by senior public servants must never be condoned.

Mid-April, the NLC leadership warned that it would mobilise workers for an indefinite protest to express anger over the scandal in the police pension funds. In a public statement signed by the Vice President, Isa Aremu, the NLC said: "Corruption in the pension sector is not just an economic crime... Taking the terminal benefits of millions of pensioners amounts to burying the future of the existing workforce and mass early burials of the current pensioners."

Anti-trade bill Honourable Heineken Lokpobiri sponsored a Bill in the National Assembly that was alleged by Labour to be directed at emasculating the trade union movement. In reaction to the Bill, TUC President General, Peter Esele said those in government are showing increasing intolerance to the basic practice of democracy as espoused by the traditions and ethos of our movement.

On the escalating level of corruption, Esele called on labour leaders at every cadre of the movement to remain conscious of the movement's common cause; its common interests and destiny so that the labour movement would forever be united towards generating the critical mass needed for the constant renewal of the nation.

Esele also lamented various challenges being faced by the nation, which in the first half of the year threatened the wellbeing of the economy.

He said the immediate consequences of the nation's monumental decay in its industrial capacity are that of decreasing capacity to create new jobs in order to absorb new entrants into the labour market and increasing difficulty in retaining old employees. He believes these objective realities have foisted on the nation a poverty rate of over 60 per cent. This, according to the national Bureau of Statistics, figures released earlier this year was based on those living below $1 per day. The statistics office said the international standard for measuring poverty is a $2 benchmark,which when factored in, paints a grimmer picture of the situation.

national summit by the Nigeria Labour Congress (NLC) to discuss the spate of violence and the state of insecurity in the country has been slated for august.

National President of the congress, Mr Waheed Omar, disclosed this to The Nation at the Annual General Meeting of the Nigeria Employers Consultative Association held in Lagos.

Omar said the summit would see the gathering of major stakeholders, including religious institutions and traditional leaders to discuss the way forward. He said that the summit would also discuss how Nigerians could live peacefully.

Omar noted that Nigerians were more alert now more than ever before because of the fear of the unknown.

He called for an end to the spate of killings in parts of the country, stressing that Nigerians were tired of the killing of their loved ones.

NLC, in an earlier interview, said it will not involve the Federal Government at the summit until the security issue is discussed extensively

by Nigerians. “Of course government must be involved but not at this very stage because we wouldn’t want it to be politicised in any way,” he said.

However ,when the NLC President extended the invitation to NECA during his goodwill message, Labour and Productivity Minister , Chief Emeka Wogu told him that though he did not extend the invitation to government, the issue of peace concerns everybody and so government would love to attend such a summit.

“We are looking at August 26, 27.

The scenario we want to create is, everybody should come with what he holds and believes in; but Nigeria is the meeting point.How do we fuse in all these things and now continue to live peacefully as we used to without interference with whatever the other person has as his own personal identity as opposed to the major unified identity as a Nigerian. “ Let it be pure Nigerians who are committed to the peace and unity of Nigeria that will come and discuss openly, apportion blame wherever blame is to be apportioned; at the end of the day, we say okay, having said all these, what is the way forward. “ Omar said the situations in Jos, Plateau State, is different from the happenings in other parts of the country, stressing that the crises must be addressed squarely.

He said the summit would strive to find sustainable solution to the security challenges and that a colloquium would be held on the first day of the summit followed by a peaceful street match by all the stakeholders on the second day.

“This is just to show that there is nothing wrong with Nigerians living together as one irrespective of the religious, ethnic or political differences,” Omar said.

Corps members take over teaching in Bauchi Students on teaching practice and corps members in Bauchi State have taken over teaching in secondary schools following the indefinite strike embarked upon by teachers across the state. The Director-General of the state’s Ministry of Education, Alhaji Saleh Hassan, told The Nation that teachers are supposed to teach people how to live in the society and he wondered why violating a court directive will come from a teacher.

He blamed the striking teachers for not obeying a court injunction obtained by the state government to prevent them from embarking on the strike.

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MOTORING

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MONDAY, JULY 16, 2012

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

Coscharis Group has unveiled the BMW 3 Series. The event was held at Oceanview Restaurants, Victoria Island, Lagos.TAJUDEEN ADEBANJO reports.

•Lagos State Deputy Governor Mrs Adejoke Orelope-Adefulire unveiling the car

BMW 3 series: Improved handling, pleasure driving T

HE BMW 3 series has been described as the epitome of driving pleasure.

The sixth generation of the BMW 3 Series sedan sets new benchmarks in terms of sporting prowess, elegance and comfort.

The pioneering history serves as inspiratioin for the new sports sedan, whose powerful styling represents a fresh interpretation and conscientious development of traditional BMW design cues. The new face, with flat headlights reaching as far as the BMW kidney grille, emphasises the elegantly dynamic design of the new BMW 3 series Unveiling the 3 series in Lagos, recently, President of Coscharis Group, Dr Cosmos Maduka said the car is designed to maintain its position as segment leader, adding that it had the typical superior performance of a BMW while being highly efficient.

The product, Maduka said, offers state-ofthe-art technology and innovative features that are unique in the competitive environment.

The car has grown bigger in length and width, with its wide track increasing at the front and rear by 37mm and 47mm respectively while the length increased by 93mm.

Available in three trim levels, sportline, luxury line and modern line sedan also boasts of sophisticated interior and exterior attributes.

Drive and chassis technology have always been the key areas of expertise for the brand and agility and driving dynamics remain outstanding attributes of the new sedan.

The car belies its larger dimensions with a kerb weight of 40 kilogrammes below that of its predecessor.

BMW, Maduka boasted, is the first car maker to offer an eight-speed automatic gearbox in the premium mid-size segment.

It can be specified in combination with any of the petrol and diesel engines in the range and links up with the Auto Start-Stop function that comes as standard. Compact and exceptionally efficient, it allows the new BMW 3 series to match or outperform models fitted with the standard six-speed manual gearbox in terms of fuel economy and emissions. The new eight-speed automatic brings together shift comfort, dynamic performance and efficiency of the highest order, making it the perfect partner of the new sedan‘s dynamic potential.

The Connected Drive feature offers an unmatched combination of driver assistance technology and mobility systems. A new arrival in the premium mid-size segment is the latest-generation full-colour Head-Up Display, which projects key information- in sharp resolution-onto the widscreen so it appears directly in the driv-

er‘s field of view. Also available is surround view with side view and top view which gives a bird‘s-eye perspective of the vehicle and the area around it. In addition, a parking assistance system helps the driver to manoeuvre into parking spaces. Among the other assistance technology available under the BMW Connected Drive banner is Active Cruise Control with Stop and Go function, the Lane Change Warning system which are offered for the first time in a BMW 3 series sedan. Real-time Traffic Information (RTTI) and special apps such as „BMW Connected” for using social networks are also available, an innovative comfort access function allowing handsfree.

Making reference to after sales, Maduka said the six BMW service centres strategically positioned across the country coupled with highly trained personnel are on ground round the clock to attend to the needs of customers.

“I make bold to say that no automobile sales and after sales company in Nigeria replicates our passion. We give our customers great value for their money bearing in mind that good value and excellent service are often left behind by luxury brands, but they are critical elements of a customer’s final decision to buy.”

BMW 3 Series sedan defines a perfect and unique balance of sporty and elegant design, performance and efficiency, driving experience and driver orientation.

“We are proud of the confidence reposed on us by BMW AG, by giving us the dealership rights for almost 14 years running to sell their vehicles in Nigeria and often remind ourselves that premium brands are not something that we can buy into but something that we have to earn; something that we have to work for to work for us,” Maduka said.

Coscharis Motors, he said, shall endeavour to provide the highest levels of customer service for this elite brand in line with international quality standards.

“Good value and excellent service are often left behind by luxury brands” but they are critical elements of a customer’s final decision to buy.

“The parent company of Coscharis Motors in a bid to provide the local market with the best reputable car in the world, infused with a distinctive edifice flavour, will soon be inaugurating our new Lekki sales and service centre and CG Eko LLP at Ikeja (a public private partnership with the Lagos State government).

No other auto label in Nigeria reflects our unique brand philosophy of auto brands integration, innovation and modern technology cum structure,” Maduka said.

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56TH KANO STATE EXECUTIVE COUNCIL MEETING

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n Wednesday 11th July, 2012 (22nd Sha’aban, 1433 AH) the Kano State Executive Council held its Fifty sixth (56th) sitting in continuation with sequence of previous sittings during which important policy issues and programs that positively impact on the quality of lives of our citizenry were deliberated upon.

It is delightful to witness the reawakening of the hopes and fulfillment of the aspirations of the people of Kano State as depicted in the glaring progress achieved in the improvement of the quality and quantity of services provided by Government across all sectors – especially water supply, agricultural production, education, healthcare delivery, environmental sanitation and refuse disposal, installation/repairs of street and traffic lights, beautification of urban Kano, provision of security, provision of skill acquisition and employment opportunities etc.

It is worthy to highlight that in the fifty five (55) sitting, the present Administration approved a capital expenditure close to N130 Billion of which N4,715,553,666.00 was approved for the execution of 14 projects by the Council. Highlights of the decisions reached at the 55th Meeting are as follows:1.

cumbersome thereby making it necessary to computerise its general operations. The main aim of the project is aimed to network the five (5) departments for easy coordination, effective and efficient record management of contributors and pension funds entrusted to them by the Government. Consequently, the Council approved release of N41,708,722.00 to the office of Head of Civil Service to enable the Kano State Pension Fund Trustees execute the stated project 3. MINISTRY OF PLANNING AND BUDGET. Notification of the need to Domesticate the Public Procurement and Fiscal Responsibility Laws in the State: Contents of this memorandum presented details on the need for the domestication of the two laws referred and notified the Council of the two draft Bills being with the Ministry of Justice due to be presented to the previous Executive Council for deliberation before submission to the then legislature for passage into law but was delayed due to some contentious issues which still remain unsolved. Council considered and approved the setting up of a technical committee as proposed to be chaired by the Projects Monitoring Directorate with Ministry of Justice as secretariat.

N82,087,763.27 funds to facilitate for the conduct of the 2012 re-accreditation/interim and verification exercise for Kano State Polytechnic.

N12,600,000.00 funds to facilitate settlement of outstanding payment for diesel supplied to State Government owned Hospitals.

N7,837,761.90 Government contribution to the joint execution of environment related projects.

N1,000,000.00 funds for the conduct of the second Ramadan fair by KACCIMA. N7,500,000.00 funds to facilitate the completion and commissioning of Kura Export Production (EPV) project.

N18,100.653.72 funds for the construction of pedestrian bridge at Bompai police barracks.

N153,487,500.00 for the procurement of seeds for implementation of the Growth enhancement Support Service (GES).

N2,714,890,134.23 as funds for the revalidation and execution of five(5) inherited road projects.

N15,447,806.30 as funds for the emergency renovation works at NYSC permanent Orientation Camp site at Kusalla in Karaye LGCA. N1,186,754,000.00 for the procurement of additional fertilizer for distribution for the 2012 planting season.

N67,416,750.00 as funds to facilitate the laying of 1000mm pipes over a distance of 15 Kilometers (Chalawa to Gwaron Dutse).

N17,917,750.68 for the construction of ten (10) toilet cubicles and ten (10) bathrooms at Bagauda Livestock Institute.

N10,050,000.00 as funds for the second phase of 250 Zawarawa marriage project.

N420,373,546.00 funds for the payment of compensation for land and structures acquired for Northern Terminus project at Dawanau.

4. MINISTRY OF WATER RESOURCES. Construction of Training Fish Ponds and a Hostel Block at Magaga Dam site;Council approved for the release of the requested sum of N20,585,059.05 to the Ministry of Water Resources for the execution of the stated project so as to actualise yet another endeavour aimed at providing skill acquisition opportunity for our youth

Today’s Council sitting was presided over by the Chairman Gov. Rabi’u Musa Kwankwaso FNSE during which 36 memoranda were submitted by 13 MDA’s and deliberated upon by the Council. Consequently, an expenditure of N31,217,721,649.40 for the implementation/execution of 21 projects was approved by the Council as follows:-

b) Foreign training of 64 qualified students selected (PHD and Masters) at the Texas A and M University: The responsive Council was amply reminded of its commitment to the Texas A and M University project which has to be seen to its successful conclusion. So, Contents of this memorandum requested for the Council to consider and approve for the following; • Appointing a coordinator for the Kano Campus of the Texas A&M University for which the person of Professor Yakubu Nasidi is recommended.

• A joint budget (counter-funding) between the State Government and Texas A&M University for the implementation of the entire project.

• Preparing the 64 qualified students selected for the program by providing the required funds for their entrance examination.

• Release of 50% of the total budget for the project (i.e $6,036,666.05).

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1. MINISTRY OF WORKS, HOUSING AND TRANSPORT. Eight (8) memoranda were presented by the Ministry and deliberated upon by the Council as follows; (a) Development of the Academic (building) section of the Kano State Sports Institute at Karfi town: Council was amply reminded of its appreciative award of the contract for the construction of a perimeter wall and entrance gate at the proposed Institute site by contents of this memorandum which at the same time requested for the release of funds to facilitate the construction/development of the academic section so as to ensure the immediate/timely commencement of academic programs in compliance with the administration’s policy on such projects. Consequently, the Council approved the release of the requested sum of N394,443,261.12 to the Ministry of Works, Housing and Transport for the execution of the stated project. (b) Renovation of damaged structures/properties at Cabinet office Kano: The memorandum politely notified the Council of the need to renovate the damaged structures at the Cabinet office and accordingly requested the release of the sum of N41,651,857.44 to facilitate the execution and the renovation works. The Council consequently approved release of the requested sum of money to the Ministry of Works, Housing and Transport to expedite action on the renovation work so as to put the affected structures back to normal use accordingly. (c) Construction of Academic Infrastructure to facilitate operations at the proposed Kano State Entrepreneurship Development Institute at Dawakin Tofa: The memorandum invited the Council to recall that the referred Institute is among the twenty (20) of its type established by the present Administration. In compliance to a relevant request, the ministry of Works, Housing and Transport produced designs suitable for the institute upon which bills of quantities were prepared in the sum of N363,531.506.20 which was presented to the Council for approval. The Council considered the request and approved release of the requested sum of money to the Ministry of Works, Housing and Transport for the execution of the project in view of its significance and in consideration of the fact that it fall within the realm of the Administration’s laudable programs on self-reliance and creation of employment opportunities. (d) Construction of Academic Block, two (2) Hostel Blocks and kitchen facilities at Informatics Institute Kura: The attention of the Council was politely drawn to the need to put in place additional facilities prior to the commencement of academic programs at the Informatics Institute Kura. Accordingly, the Ministry of Works, Housing and Transport requested the Council for the release of the aggregate sum of N397,337,217.25 for the construction of Academic Block, two (2) hostel blocks and kitchen facilities for immediate commencement of academic programs at the Institute. The Council considered and approved the request to facilitate for immediate commencement of academic programs at the Institute. (e) General renovation works at Audu Bako Secretariat Wall fence and provision of security wire: The responsive Council was amply notified by contents of this memorandum, of the situation of the perimeter wall fence at Audu Bako Secretariat and the need to upgrade it as well as improve the security condition in order to protect lives and property within the secretariat, N54,667,723.68 was requested and was approved for release for the renovation work to enhance the security situation at Audu Bako secretariat. (f) Execution of additional work at Sani Abacha Youth Vocational Center: Council was politely alerted of the need for additional work in order to complete the works started in compliance with an executive directive given on Sani Abacha Vocational Training Centre. The sum of N5,042.273.72 was requested and was approved for release by the Council to the Ministry of Works, Housing and Transport to enable execution of the additional work. (g) Renovation works at the offices of the World Bank Assisted Projects Kano State: Contents of this memorandum alerted the responsive Council of the need to carry out renovation works at the offices of the World Bank Assisted Projects, Kano State in view of the state of dilapidation and general disrepair of the structure. Council noted, considered and approved release of the requested sum of N6,896,615.50 to the Ministry of Works, Housing and Transport to expedite action on the execution of the renovation works. (h) Construction of Fly-over Bridges (State Road K/Nassarawa and Ibrahim Taiwo Road from Radio Kano): Council was adequately notified of the multitude number of problems resulting from traffic congestion, road accidents, increase in vehicular running cost, noise and air pollution, delays, loss of revenue and criminal activities which bedevil the transportation situation in Kano being the most populous State in the federation and second only to Lagos in commercial activities. Solutions need to be put in place so as to save the unfortunate situation. One of such solution is the imperative of constructing Fly-over bridges at strategic locations to provide easy flow of traffic and reduce traffic congestion on our roads. Two (2) cluster of the Fly-over bridges are proposed for consideration-Thus: 1st cluster comprises of; Silver Jubilee/Rotary Intersection(Zaria Road/State Road Round About/Junction).

Gidan Murtala/Rotary Intersection.

Gidan Radio/Rotary Intersection (IBB Road and Ibrahim Taiwo Road Junction) 2nd cluster comprises of; Gyadi-Gyadi/Rotary Intersection(Zaria Road and Maiduguri junction/Round about) Dangi/Rotary Intersection(Zaria Road and Zoo Road junction/Round about) The memorandum requested for the release of the sum of N5,933,520,068.34 to the ministry of works, housing and transport for the construction of the first cluster of fly-over bridges as first phase of the entire project. Council noted, considered and approved release of the requested sum of money to the Ministry of Works for the execution of the stated project due to its significance.

2. OFFICE OF THE HEAD OF CIVIL SERVICE. Computerisation of the activities of Kano State Pension Trust Fund: Attention of the Council was respectively drawn to the significance of information technology in ensuring prudence and efficiency in the conduct of businesses. Specifically, the Kano State Pension Fund Trustees has Five (5) major departments that manage activities related to 19,655 pensioners as at May, 2012 which makes the work enormous and

5. OFFICE OF THE SECRETARY TO THE STATE GOVERNMENT Five (5) memoranda were submitted by the office of the Secretary to the state government for deliberation by the Council. Thus; Training of 400 prospective participants from the 44 LGCA’s for a 6 weeks training to be coordinated by NEPAD Kano office: Contents of this memorandum substantiated to the attentive council that the proposed training aims at empowering youth and women through creating job opportunities and setting up new micro/cottage industries for economic viability. Whereby the training workshop targets at training the beneficiaries on preservation of perishable goods, leather and related products, animal feeds, hatchery production and machine fabrication.

The entire program is proposed to train 400 participants at its conclusion which will cost the total sum of N23,979,500.00. However, contents of this memorandum suggested for the Council to consider and approve the release of a trimmed sum of N10,000,000.00 to cater for the training of 200 beneficiaries as pilot or first phase/batch of the program by allocating 40 participants to each of the five various training centres. This way, the efficacy of the program could be tested through performance of the pioneers pending embarking on the training for the remaining 200 participants in the second batch. Council noted, considered and approved for the release of the requested trimmed sum of N10,000,000.00 to the office of the secretary to the State Government to enable NEPAD facilitate for the proposed first phase of the training workshop.

c) Interlock tiles laying Projects at some Selected roads in Kano metropolis from the standing committee on Urban Beautification and Development Central Kano State: Council acknowledged and appreciated contents of the progress reports as highlighted for the twelve (12) selected areas inspected by the committee which include Airport Road, Bompai Road, Sani Marshal Road, Ahmadu Bello Way, Audu Bako Way, Alu Avenue, Iyaka Road, Commissioner Road, Gwarzo Road and Emir’s Place Road, Lagos Street, Race course road. Findings during the inspection visitations prompted the committee to recommend the under listed for Governments consideration and direction for further action.

KNUPDA must ensure using concrete Kerbs of high quality.

Government should enforce sanctions on street walkways, hawking and improper parking of vehicles.

Government to direct street lighting committee to henceforth repair and replace any interlock tiles removed in the course of discharging their responsibilities.

Government should direct for all road side Kerbs to be painted black and white so as to beautify the road sides. (d) Procurement of operational vehicles for some MDA’s to ease their transportation needs for effective service Delivery: Office of the Secretary to the state Government politely notified the attentive Council, via contents of this memorandum, of the series of requests for operational vehicles from a number of Government organs, most of them with cogent needs for transportation to facilitate ease of service delivery to the community.

Council noted, considered and approved for the release of N51,475,000.00 for the procurement of six(6) vehicles for distribution to six(6) Government organs as follows; One(1) Toyota 18-seater bus (new) - Suggestion Box Committee One(1) Toyota coaster 30-seater bus - Livestock Institute Bagauda One(1) Toyota Hilux D.C - S.S.A project One(1) Toyota Hilux D.C - NEPAD One(1) Toyota Hilux D.C - Kano Zoo One(1) Toyota Hilux D.C - NAPTIP At the respective cost of:.

N7,500,000.00, N16,175,000.00, N6,950,000.00 x 4 = N27,800,000.00 TOTAL = N51,475,000.00 (e) Ratification for the Procurement of utility vehicles for Newly appointed Kano State Pension Trustees: Contents of this memorandum adequately acquainted the Council of the need to provide utility vehicles to smoothen the execution of official responsibilities of the Pension Trustees which include travelling outside the state. Council noted, considered and approved for the release of the requested sum of N29,403,000.00 from the funds under the care of the pension fund trustees.

6. MINISTRY FOR HIGHER EDUCATION. Payment of Final year Tuition Fees/Living Expenses in Respect of Mubarak Muhammad Abdullahi Studying at University of Glarmorgan United Kingdom: Contents of this memorandum abundantly reminded the Council of having sponsored the referred student for a three (3) year Undergraduate study in Air Craft Maintenance Engineering at the mentioned University based on his talent and potentials when he constructed a home-made Helicopter exhibited at Katsina State in 2007. As such, Council considered and approved release of the requested sum of N4,760,100.00 (equivalent to £18,450 x N258) to the Ministry of Higher Education to facilitate for the stated purpose in respect of Mubarak Muhammad Abdullahi wishing him luck in this endeavour.

7. MINISTRY OF ENVIRONMENT. Rehabilitation of seven (7) of the twenty four (24) Available Shelter Belts: This memorandum presented highlights on the seven (7) most severely damaged/ encroached shelter belts in the state and recommends rehabilitating them, since they cover a distance of 50 Kilometres. The sum of N15,126,000.00 requested for the purpose was approved for release by the Council to the Ministry of Environment to expedite action on the stated project since the establishment of new shelter belts is not feasible meanwhile.

8.

MINISTRY OF INFORMATION, INTERNAL AFFAIRS, YOUTH, SPORTS AND CULTURE. Two (2) memoranda were submitted by this Ministry for deliberation by the Council as follows (a) Participation of Kwankwasiyya Academicals in the League-Du-Challenge cup Internationale Pre-season Tournament in France (12th-19th August 2012): Attention of the council was respectfully drawn by contents of this memorandum, to the invitation received from Association Les Sportie2 Coer, Nimes-France for the participation of Kwankwasiyya Academicals Kano in the forthcoming International U-19 pre-season tournament tagged “LANGUE-Doc-Challenge Cup 2012 scheduled to hold 12th-19th August,2012. The invitation results from the team’s excellent and enviable performance at an earlier competition in Niamey, Niger Republic which qualifies it for an automatic ticket in the U-19 preseason professional cup competition expected to be attended by best football teams in South France. As such, this Ministry recommends a 35 member state delegation to attend the event. Such include, Technical crew and players-Thus; Permanent Secretary- Head = 1 Sports Desk Officer = 1 Media Officer = 1 A Doctor = 1 Physiotherapist = 1 Curator = 1

= 1 = 1 = 7 = 20 = 35

The contingent is expected to depart Kano for France on the 10th of August by Air France through Lagos and return on the 20th of August 2012.

Council noted, considered and approved for the release of the requested sum of N24,117,697.00 to the Ministry of information, Internal Affairs, Youth, Sports and Culture to enable the team participate in the tournament.

Again, release of the Government officials accompanying the team was approved by the Council. (b) Allocation of a 36 – seater Bus to Kano Pillars Football Club: The referred request as endorsed by the Ministry of Information, was humbly presented to the Council sitting which noted, considered and approved procurement and allocation of the requested number and types of vehicles to the Kano Pillars Football Club in cognisance of

Rabi’u Musa Kwankawaso

the fact that the team is currently in the middle of the National Premier League Competition at which the Club ranks Second in its hierarchy. As such, Council directed the office of the Secretary to the State Government to step into the matter and handle appropriately.

9. MINISTRY OF EDUCATION Four (4) memoranda were submitted by the Ministry of Education for consideration by the Council as follows; (a) Facilitation of the Train the Trainee Workshop on the newly introduced Entrepreneurial subjects and handling of the new Acquired Machines: The considerate Council approved for the release of the requested sum of N3,011,760.00 to the Ministry of Education to enable the facilitation of the referred workshop in view of its significance to the actualisation of competent teaching of the newly introduced entrepreneurial subjects along with the acquisition of skills in handling the newly acquired machines. Subjects to be handled as presented include – viz; Leather works processing Fisheries Animal Husbandry Catering (b) Participation of Kano State to represent Nigeria in the 2012 European Schools Debate competition in Czech Republic (29th July – 3rd August,2012)l: SUBEB forwarded a letter of nomination of Kano State to represent Nigeria at the referred event via contents of this memorandum. Council did not hesitate to approve for the release of the requested sum of N8,161,600.00 to the Ministry of Education to facilitate for the stated purpose according to the details forwarded. (c) Allocation of School Buses to the Newly Established and Upgraded Science and Technical Colleges in the State; Contents of this memorandum abundantly notified the Council of the urgent need for compliance with the referred request in view of its significance to the educational sector – especially the specialised aspects (Science and Technical Education). As such, Council approved for the office of the secretary to the state Government to process the request for the provision of the requested vehicles- thus; Government Technical College Danbatta – 1bus Girls Science and Technical College Karaye – 1bus GSTC Dadin Kowa, Doguwa – 1bus GSTC Gani, Sumaila – 1bus GTC Wudil (Replacement) – 1bus (d) Submission of Information memorandum on the proposal on “Drillo Examination Software” for use by SS3 students in Kano State: The observant Council noted and considered contents of the referred memorandum as stating the alternative opinion of the Ministry of Education on the issue at hand. As such, Council directed the Ministry of Education to represent its alternative opinion through a more comprehensive memorandum 10. MINISTRY OF AGRICULTURE AND NATURAL RESOURCES Launching of the 2011/2012 Rabies Vaccination Campaign at Kundila Veterinary Hospital: Council noted the seven (7) point’s revelation from the referred exercise and applauded the performance of the participants and remains expectant of better performance in future on such issues as they are important as to receive commendations from the National Veterinary Research Institute.

11. Ministry of Health Four (4) memoranda were presented for consideration by the Council from the Ministry of Health. Thus; (a) Establishment of Vitamin ‘A’ production Plant in the State by Global Alliance for Improved Nutrition. (GAIN): Council noted and considered the contents of the referred memorandum and directed the Ministry of Health to represent the case more comprehensively at next Council sitting. (b) Notification of Kano State Medical Students Association Health Week: Council noted and appreciated contents of this memorandum as presenting the solidarity of the referred association to the present administration in the state so, Council directed for the release of the sum of N750, 000.00 to the Kano State Medical Students Association in support of their activities. (c) Purchase and Supply of required equipment/furniture to Tuberculosis Drug Resistant (MDR) ward at Infections Diseases Hospital Kano: Council noted, considered and approved for the release of the requested sum of N12,968,428.48 to the Ministry of Health to facilitate for the stated purpose in respect of the fact that the Hospital is the only referral Centre of its kind in the entire State and deserves a befitting standard as suggested by contents of this memorandum. (d) Facilitation and Distribution of Anti-Malarial Drugs by NMCP to Public Health Facilities in the State: The responsive Council was politely notified of the availability of the Anti-Malarial drugs in the States Medical store which were supplied to the State by the National Malarial Control Program (NMCP). Contents of this memorandum went further to remind the Council of its approval on the distribution of such drugs to the 44 LGCA’s. So, Council noted, considered and approved for the release of the requested sum of N2,630,600.00 to the Ministry of Health to expedite action on the distribution work based on its significance.

12. MINISTRY OF COMMERCE, INDUSTRY, COOPERATIVES AND TOURISM Two (2) memoranda were submitted by the Ministry for consideration by the Council as follows;(a) Streamlining advertisement activities and sanitising its practice in the State; Council noted contents of the Memorandum. (b) Kano State Government’s Share on the Harmonisation of Public Private Partnership (PPP) with Globacom Telecommunication Company;N 27,760,000.00, as requested, was approved for release by the Council to the Ministry of Commerce to facilitate for the stated program which is in value 520 youth from the 44 Local Government Council Areas, thus i. 10 from each of the metropolitan LGCAS. ii. 5 from each of the remaining 38 LGAS. 13. MINISTRY OF LAND AND PHYSICAL PLANNING Two (2) memoranda were presented by this Ministry for consideration by the Council as follows;(a) Approval for upward review of fees and other charges for the Ministry of Land and KNUPDA: Council noted contents of the referred memorandum and directed for the enaction of a committee to look into the matter and represent the case more comprehensively at next Council sitting (b) Facilitation of the 4th batch of Local Governments five (5) kilometer road projects;Contents of this memorandum concisely requested for the release of the sum of N23,776,298,443.40 for the execution of the local Government five (5) road Kilometer project at fourteen (14) LGCAS comprising Ajingi, D/ kudu, Doguwa, Gabasawa, Gaya, Gezawa, Kabo, Karaye, Kiru, Makoda, Sumaila, Ungogo and Wudil. These are in addition to similar projects earlier approved for execution by the Council at Sixteen (16) other Local Government Council Areas.

SIGNED: HON. COMMISSIONER, Information, Internal Affairs, Youth, Sports & Culture, Kano State

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NEWS

Couple arrested for alleged child theft

Wammako, Orji call for regional pact

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HE police in Delta State have arrested five persons, including a couple, over the theft of a sevenmonth old baby boy.

Police spokesman Charles Muka identified the suspects as Collins Osekihe,Chuks Elue, Patience Elue, Chuks Okwudili and Uche Anyansi.

Muka said the police, acting on a tip-off, arrested Osekihe, who identified other gang members at Agbor, Ika South Local Government.

The victim, Trust-in-God Madaka, was rescued from Patience Elue, who promised to buy him for N250, 000.

From Okungbowa Aiwerie, Asaba

Muka said the suspects have made confessional statements.

The kid’s mother, Linda, said she was at her mother’s funeral in Umunede when three boys entered the house armed with cutlasses and ordered her to release the child or be killed.

In Abavo, also in the same local government, 20 youths were arrested for allegedly undermining peace and security in the town.

A kingship tussle has divided the community.

Commissioner of Police Ikechukwo Adubas invited community leaders for a peace meeting in Asaba.

It was gathered that the suspects were apprehended while allegedly pasting the photograph of a man, who claimed to be the monarch of Abavo.

The suspects were allegedly recruited to foment trouble in the town.

Muka said the youths have been arrested.

His words: “We are screening them to ascertain their level of involvement.

“They were destroying properties of opponents, ar-

resting and locking them up illegally and the police cannot watch people breach the peace.”

In a related development, the Abavo traditional council has debunked the purported crowning of Ekhator Sunday Jegbefume III. He described it as a taboo and an affront on the revered ancient Abavo tradition.

A statement by the Ero of Abavo kingdom, Agbeje Osameha, said: “King Uche Irenuma 11 remains the traditional ruler of Abavo kingdom duly recognised by the Delta State Government.”

From Ugochukwu Ugoji-Eke, Umuahia

OKOTO State Governor Aliyu Wammako has supported the call by his Abia State counterpart, Theodore Orji, for a national integration through regional pact.

He identified integration as a panacea for unity among states.

Wammako spoke at the Abia State Government House, Umuahia, at the end of his two-day working visit.

He said his mission was in compliance with the Governors Forum directives.

The governor hailed the economic vibrancy of Aba, the state’s commercial nerve centre, saying the ingenuity of residents has widened its investment potentials.

He said: “To seek areas of collaboration between Abia and Sokoto states, as members of the Governors Forum, we decided to visit each other to review each other’s achievements under the Peer Review Mechanism and to encourage national cohesion.

Wammako, who last visited the state 17 years ago, said: “I have seen changes- improved sanitation, good road networks, which are made possible by Orji’s style of leadership.”

On the Umuahia- Aba federal highway, the governor lamented its poor state, saying: “I am not here to raise controversy. The road which I saw was in a deplorable condition. It is Trunk A road, there is the need to rehabilitate it.”

Orji recalled his youth corps experience in Sokoto, saying that he was in love with the Caliphate and its people.

Orji said: ‘’Governance is about making the people happy and comforting and alleviating their problems. ‘’This is why we expanded and dualised Bende Road to ease traffic.”

Ogun PDP faction criticises electoral body

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•Amaechi (second right), his wife, Judith, Hon Asita Honourable and Ahoada West Council Chairman Awori Miller and Senator Wilson Ake (behind) and other officials in Okogbe...yesterday

I’m devastated, says Amaechi •Senator Abe: neglect of pipelines caused tanker fire

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IVERS State Governor Rotimi Amaechi has decried the tanker fire in which over 120 people died in Okogbe, Ahoada West Local Government Area, last Thursday.

Speaking at the palace of the Eze Igbu Igbudiya, Joshua Eyiba, during a condolence visit ,the governor said: “It is with a lot of grief that I have come to visit you.

“I would say to you that I am confused.

I don’t know exactly how to console you because the people who are dead are Rivers people who I govern and, therefore, I am as pained as you are.

“What do I tell you? What do I tell the community, knowing none of us has the capacity to bring back to life those who were burnt.’’

The governor spoke of the need to enlighten the people not to take the risk of scooping petroleum products.

Amaechi said: “There is a need for enlightenment. People should know that no matter how bad it is for anybody, it is better to be alive than to go pursuing death.

“Let this tragedy not happen to us again.

Let the fight against poverty not be so desperate as to take as many lives as it has sadly taken with this single incident.”

“As Christians, we should leave to God what has happened and continue to pray

From Onyedi Ojiabor, Assistant Editor that this incident will never happen in Nigeria again.

“The government will continue to take care of the medical needs of the survivors and in our hospitals.

“We will continue to do that untill they are okay and strong enough to leave.

“I have directed the Commissioner for Special Duties to seek out the families of the victims.

“As a government, we will sit down and look at what we can do for them, to assist them in some ways to cushion the effects of this tragedy.”

The monarch thanked the governor for the visit.

Amaechi later visited the survivors at the University of Port Harcourt Teaching Hospital (UPTH).

The Chairman, Senate Committee on Petroleum Resources (Downstream), Magnus Abe, yesterday blamed the fire on neglect of petroleum pipelines by the Federal Government.

Abe described the mayhem as an avoidable one.

He said the Federal Government could no longer afford to ignore investment in pipeline infrastructure to transport petroleum products.

The lawmaker, who condemned movement of petroleum products by tankers, said transportation of products by road is not only wasteful and dangerous but could not be sustained for long-term investment in the sector.

In a statement, Abe urged government and stakeholders to take a cue from other countries and break the dependence on oil tankers.

He said, “I condole with the Rivers State Government and the affected families.

But let us also use this incident to draw attention to the fact that we have said repeatedly that one of the greatest challenges facing this country is our inability to maintain, improve and police our pipelines.

“Moving petroleum products in small quantities by tankers over long distances is simply too expensive, too dangerous and financially unsustainable.

“This incident offers us another opportunity to address the critical issue of our pipelines.

“As we mourn let us also pray that God will give us wisdom and courage to address the issue of our pipelines, so that this incident will be the last of its kind.

“May God grant repose to the dead.”

Cleric urges commitment to Fed Govt, Boko Haram dialogue

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FORMER President of National Council of Muslim Youth Organisations (NACOMYO), Kunle Sanni, has urged the Federal Government to be more committed in holding talks with Boko Haram.

Speaking at the weekend in Ado-Ekiti, the Ekiti State capital, the cleric said the Goodluck Jonathan-led administration has not shown enough commitment to ending the insurgence.

Sanni, who spoke at the weekend during a pre-Ramadan lecture organised by the Broadcasting Service of Ekiti State (BSES), accused the Federal Government of frustrating efforts by eminent Nigerians to seek peace with the group.

Dignitaries at the event included Senior Special Assistant

By Sulaiman Salawudeen, Ado-Ekiti

to the governor on Inter-Religion Matters, Ade Alofe; Secretary to the State Government Ganiyu Owolabi; General Manager of BSES Idowu Oguntuase and a businessman, Suleiman Akinbami, who chaired the occasion.

Speaking on the topic: “Islam, Religion of Peace and Social Progress”, Sanni said latest occurences in the country showed that most of the deadly attacks were not necessarily carried out by the sect.

He said some politicians, using hoodlums, have successfully appropriated the tenuous security situation in the country to foment mayhem.

HE Peoples Democratic Party (PDP) in Ogun State, under the leadership of Adebayo Dayo, has condemned the provisional list of candidates for the July 21 council elections as published by the Ogun State Independent Electoral Commission (OGSIEC).

In a statement, the faction said:”It is important to state that by its action, OGSIEC has shown contempt for the law by failing to comply with four judgments from the Federal High Court and Ogun State High Court, which constantly affirmed our executive as “the only and authentic body to superintend over the affairs of Ogun PDP till 2016.

“We assure OGSEIC and its puppeteers that light will prevail over darkness. We will not take the law into our hands but will return to the courts to save us from this mess.

“Our supporters should remain calm and law abiding as we shall surely triumph.”

‘Governor not indebted to us’ From Ugochukwu Ugoji-Eke, Umuahia

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ONTRACTORS handling road projects in Abia State have hailed Governor Theodore Orji for living up to expectation in his administration’s patronage of indigenous firms.

A contractor, Paul Ezeanyagu, said the government has been fulfilling its financial obligations.

Ezeanyagu, who spoke with The Nation in Umuahia, the state capital, confirmed that the governor has never defaulted in paying his company, adding that contractors have been reciprocating the gesture by not defaulting in service delivery.

He said: “Governor Orji is a hardworking man, who once he pays contractors, he will never rest until he ensures that the contractor does quality work commensurate to the funds released.”

The contractor said Orji always inspects ongoing projects.

“His persistent visits to one of my sites at AmuzukwuMbom road made me finish the work on time,” he said.

Commissioner condoles with Uduaghan

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HE Delta State Commissioner for Information, Chike Ogeah, has commiserated with Governor Emmanuel Uduaghan and his wife, Roli, on the death of Mrs Uduaghan ‘s mother, Mama Rebecca Ayomike.

In a condolence message on behalf of the government and people, Ogeah said Mama Ayomike was a Christian, who lived a life of service to God and humanity.

The commissioner urged Uduaghan’s wife to take solace in the fact that her mother devoted her life to the advancement of her community and society.

He said her virtues of humility and service should inspire those she left behind.

Ogeah prayed God to grant the deceased eternal rest and the family and the fortitude to bear the loss.

Church holds juvenile harvest

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HE juvenile harvest of Motailatu Church Cherubim & Seraphim Worldwide will hold on August 12.

The Oke-Ira Parish in Ogba, Ikeja, Lagos, will host the yearly event.

It will feature a biblical quiz, debate and dancing competitions among students in Ikeja Local Government Area and Ojodu Local Council Development Authority.

The debate and quiz competitions are to be supervised by officials of Ikeja chapter of the Nigerian Union of Teachers (NUT).

The grand finale will be presided over by the Primate, Founder and Spiritual Head of Motailatu Organisation Worldwide, Archbishop I.M. Akinadewo

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NEWS Retired policemen decry inability to access NHF

‘Make agric priority of economy’

By Adebisi Onanuga

CHAIRMAN of the Island Club of Lagos Prince Ademola Dada has advised the Federal Government to diversify the nation’s economy by investing heavily in agriculture, which he described as the bedrock of every economy around the world.

The Island Club Chairman, who counselled the government to look beyond the oil and gas sector and diversify the economy, warned against the operation of a mono-economy policy in the country, which is centred around the oil industry.

Speaking with reporters in Lagos at the weekend, Prince Dada attributed the lull in the economy to the total dependency on the oil and gas.

He recalled that the investments made into agriculture by the defunct Western region, under the leadership of the late sage, Chief Obafemi Awolowo, was responsible for the rapid development of the region in the 60s.

“The idea of agricultural revolution was pioneered in the country by Chief Obafemi Awolwo during his tenure as premier of the defunct Western Region. Encouraging young people to live on farms was instrumental to the agricultural revolution recorded by the then Awolowo-led administration.”

‘Don’t politicise accident, says NANS

By Adegunle Olugbamila

THE President of the National Association of Nigerian Students (NANS) Comrade Dauda Ibrahim has warned ‘unscrupulous politicians’ bent on scoring cheap points from the accident that claimed three members of NANS, and left several others injured last Friday Comrade Ibrahim who said NANS lost the leadership of three institutions- Federal University of Technology Akure (FUTA); Adeyemi College of Education ACE; Ondo and the Ondo State School of Midwifery, Akure.

The deceased and other NANS members were returning from Abuja after the Nigerian Outstanding Leadership Award (NOLA), organised on Friday where 10 Nigerians were honoured.

The NANS President lamented that some politicians have cashed in on the incident to indict fellow politicians and state governors who were honoured.

Comrade Ibrahim spoke to our reporter on his sick bed following injuries he sustained at a separate accident on Friday on the Abuja-Lokoja road on a mission to monitor the Edo State governorship election.

From Adekunle Jimoh, Ilorin

ETIRED police officers, under the aegis of Association of Police PENCOM Retired Officers (aka Elders’ Club of Nigeria), have decried their inability to access their National Housing Funds (NHF) at the Federal Mortgage Bank of Nigeria.

The association urged the Federal Government to grant members loan through the police pension scheme.

The National President, Dr Moses Ajeka, spoke at the weekend in Ilorin, the Kwara State capital, at the inauguration of the state executive.

Dr Ajeka said pension fund administrators (PFAs) “should stand as guarantors for us at the banks, adding that profit made from deductions on their pay could be staggered on their monthly pension.

He canvassed regular meetings between the chairman of Pencom, administrators and members of the association, saying “our members should be represented at the Pencom.”

His words: “If we are fairly treated, there is no way we could have come here, but we would want to follow it in a peaceful manner because we have served 35 years.

“It is an honour and whatever, we want to do in this society we will do it with dignity. That is why we want to gather ourselves together and move to the authorities who are supposed to be at the helm of affairs to listen to us to know what can be done to alleviate our problem because we are suffering.”

Earlier, the state chair of the association, Lasisi Akinlabi said the “worst situation is the issue of the contribution from our salaries and after retirement all efforts made to withdraw our money have proved abortive.

“We have been issued with passbooks and account numbers. This is our money and should be refunded without further delay. It is a cheat on us and a breach of contract. We are asking the police authorities to take up this matter with a view to refunding our money to us without conditions.

“Our monthly pension is too small compared to the inflation in the market. We are appealing to Pencom to make sure that pension of retired officers shall be the basic of one’s salary as at when he was in the service.

“At the recent seminar held by the insurance scheme on annuity, we were told that the lifespan of pension i.e the monthly allowance is between 10 and 15 years. Pension is for life and if one’s monthly pension is stopped after 15years, what will happen to the rest of his life here on earth.”

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•One of the burnt rooms of a bungalow at Odo-Ona,Apata area of Ibadan, where a young woman died…yesterday

Wike clears NTI of alleged N1.4b fraud

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HE National Teachers Institute (NTI) has been cleared of wrong

doing by the committee set up by the Minister of State for Education, Nyesom Wike, of allegations by the National Union of Teachers (NUT) that NTI defrauded teachers, who participated in the 2011 Millennium Development Goals (MDGs) of N1.4 billion.

Wike said the appropriate authorities have been contacted to ensure the release of the fund to pay the affected teachers.

The minister had set up a joint committee, chaired by the Director of Basic and Secondary Education in the Federal Ministry of Education with representatives from the NTI, NUT and the Special Assistant (Political) to the minister.

The committee was set up to recommend ways forward to the minister.

Director-General of NTI Dr. Ladan Sharehu explained that it paid the teachers N2,500 instead of N14,000 because the fourth quarter of the 2011 budget

•Promises to pay teachers From Gbenga Omokhunu, Abuja

was not released.

NUT had alleged that NTI underpaid teachers to the tune of N1.437 billion as allowances for the retraining exercise under the 2011 Millennium Development Goals (MDGs) programme.

Speaking at an intervention meeting between NTI and NUT, Wike said the institute could not pay the N1.437 billion because funds were not released as anticipated in the budget.

He said the funds were not released due to the general cut in the last quarter disbursement of the 2011 budget.

Sharehu said N2,500 each was paid to the teachers instead of N14,000 following the ministry’s approval that the N300 million balance in the third quarter be paid.

According to him, the institute decided to share the balance of N300 million instead of leaving them with

‘As the body charged with the responsibility of training and retraining of teachers, there is no reason the institute will ever underrate the worth and integrity of teachers, let alone causing them pains’ nothing.

Sharehu regretted that the NUT leadership made such an allegation against the institute when, in fact, the situation was made clear to them verbally and in writting.

“As the body charged with the responsibility of training and retraining of teachers, there is no reason the institute will ever underrate the worth and integrity of teach-

ers, let alone causing them pains.

“We even wrote to the leadership of the NUT intimating them of the situation; this can be confirmed from them. Also, when their officers and my team met with the Minister of State for Education, Barrister Nyesom Wike, in Abuja, at the instance of the minister, I still explained the matter clearly to them.”

The NTI boss stressed that besides the NUT, the institute had written to all the relevant stakeholders about the development.

In his remarks, the president of NUT, Comrade Michael Olukoya, confirmed that the management of NTI wrote to the union about the shortfall in the 2011 budgets which made it impossible for the institute to pay teachers the N1.437 billion.

He said the union was informed about the problems with the budget by the NTI after its National Executive Council had taken a decision to go to the press on the matter.

Arik explains wing-tip brush with Air Force plane

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rik Air Managing Director Mr. Chris Ndulue has blamed the wing-tip brush between the airline’s Boeing 737-700 aircraft, marked 5N MJI, and a Nigerian Air Force C-130 (NAF 917) aircraft, at the weekend, on the apron markings of the airport, which were not been done to suit modern aircraft’s wing-span.

The incident occurred at the weekend at the Yakubu Gowon Airport, Heipang, Jos, on Saturday.

The Arik Air aircraft was on a scheduled flight from Jos, the Plateau State capital, to Lagos.

It brushed the wing of the parked NAF aircraft, while taxiing and caused minor damage to the wings of both aircraft.

The tank 1 wing tip of the NAF C-130 and the left winglet of the Arik Air’s Boeing 737-700 Next Generation (NG) aircraft were damaged.

Initiate to reports that fuel

By Kelvin Osa-Okunbor

gushed out of the damaged area of the Boeing 737-700 is not true.

A team of Arik Air officials comprising the Chairman, Sir Joseph ArumemiIkhide; Ndulue; the Chief Pilot, Captain Adetokunbo Adekunbi and the Safety Manager; Captain Jide Bakare were in Jos yesterday to assess the damage. The Nigerian Civil Aviation Authority (NCAA) was also in

the team that visited Jos yesterday.

Blaming the incident on the on the apron markings of the airport, Ndulue said: “The markings on the tarmac of the Jos Airport are old markings which did not take into cognisance the use of bigger aircraft like Boeing 737-700 or 737-800 which we have in our fleet and are capable of misleading pilots during taxing. We hope this incident will make FAAN to

re-do those markings”.

He also debunked claims that another of the airline’s aircraft had an incident in Abuja on Saturday.

“Arik Air continues to operate to the highest safety standards as recommended by the NCAA, EASA and Federal Airport Administration (FAA) of the United States of America. Our guests are assured of their safety aboard our flights at all times.”

DNA test now possible at OAUTH, says CMD

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HE Obafemi Awolowo University Teaching Hospital (OAUTH) can now do DNA test on tissues, its Chief Medical Director, Prof.

Olusanya Adejuyigbe, has said.

The CMD, who spoke with reporters at the weekend said the teaching hospital now has the ability to conduct a full spectrum of

From Austin Ehikoya, Abuja

DNA tests contrary to what obtained during the DANA crash of June 3 in which over 153 people died.

According to him, the hospital could not assist in conducting the DNA test on the victims because they were burnt and had no blood in them and the reagent for conducting the test on tissues

was not available at the time.

“DNA is like an identification tag for individuals. If you know your DNA, no other person except he is your identical twin, can have it. So, if we can address the DNA, we may be able to address that individual. Or discover if you have a blood relation with which you share genetic materials.

“But as you know, many of the victims of the DANA crash were burnt, and blood was not available. We were advised to get the reagent to perform DNA on the tissue.So we were restricted at the time because blood was not available and that was the common requirement either for paternity dispute or for tissue.’’

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NEWS Osun buys nine ambulances From Adesoji Adeniyi, Osogbo

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HE Osun State Government has bought nine ambulances under its Strategic Ambulance Service Scheme, to boost health care delivery.

The Commissioner for Health, Dr. Temitope Ilori, spoke at the weekend at the quarterly ministerial media briefing in Osogbo, the state cpital.

She said the ambulances would be stationed at strategic locations on major highways.

The commissioner said the recent sponsorship of 10 health personnel, including doctors and nurses, to Germany for professional training, was part of the Rauf Aregbesola administration’s effort to improve health care system.

Highlighting the achievements of her ministry in the last two quarters of the year, Mrs. Ilori said some Osun Youth Empowerment Scheme (OYES) volunteers were trained as paramedics, adding that the government plans to train pupils for Osun Schools Calisthenics Programme.

She said the government assists indigent residents to get medical treatment they cannot afford.

Mrs Ilori said the government, in collaboration with the Osun State branch of the Nigerian Medical Association (NMA), would organise a Medical Mission tomorrow and Wednesday for the residents.

Alleged witchcraft: Ekiti urges police T to prosecute woman’s killers

HE Ekiti State Government yesterday condemned the killing of a 70-year-old woman, Mrs Rebecca Adewunmi, by some youths in Omuo-Ekiti.

It urged the police to fish out the perpetrators and prosecute them.

Madam Rebecca was accused of being a witch and killed about two weeks ago by “angry youths”.

Commissioner for Women’s Affairs, Social Development and Gender Empowerment, Mrs. Fola RichieAdewumi, described the incident as a “Stone Age conduct in the 21st century”.

In a statement at the weekend in Ado-Ekiti, the state capital, the commissioner noted that the act is criminal, barbaric and a contravention of any known law in a civilised setting, including Ekiti State.

•Woman’s family seeks state, police protection From Sulaiman Sallawudeen, Ado-Ekiti

Mrs Richie-Adewusi regretted that such an incident could still happen in a civilised society, saying it was sad that the old woman was killed because of a dream by a little girl that she had a hand in the illness of her stepson.

The commissioner faulted the failure of the police to arrest any suspects since June 30, when the incident occurred, because some community leaders reportedly advised against their intervention.

She noted that since Gov-

ernor Kayode Fayemi has made a “state law on Gender-Based Violence Prohibition last November, this has made such a barbaric act a blatant criminal matter in Ekiti State with great consequences which would definitely have to be given full weight and consequence in the present circumstance”.

Mrs. Richie-Adewusi called for the arrest and prosecution of the killers.

According to her, the Gender–Based Violence includes threats to commit, or acts liable to result in physical abuse,

including slapping, beating, arm-twisting, stabbing, strangling, burning, choking, kicking, threats with an object or weapon, murder and traditional practices that are harmful to health and well being”.

She added: “It is clear that the perpetrators of this dastardly act have contravened this law and they should be made to face the full wrath of the law. This act is condemnable, and we hope the law enforcement agents will live up to their responsibility and bring all the perpetrators to book.”

Lawyer sues Ondo over increased affidavit fees From Damisi Ojo, Akure

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N Akure lawyer, Charles Titiloye, has prayed the Supreme Court to declare as illegal and unconstitutional the increment of court fees by the government under the Ondo State Judiciary.

In a six-ground Notice of Appeal filed on July 12 before the apex court, Titiloye urged the court to reverse the increment of the affidavit fee by the Olusegun Mimiko administration from N50 to N300 and N2,000.

He averred that the action violates the principle of Separation of Powers and Section 274 of the Constitution, which confer such powers on the Chief Judge.

The lawyer faulted the decision of the Court of Appeal in Akure, which ruled that he lacked the locus stand to file the action.

Justice Kudirat KekereEkun, in a unanimous decision of the Court of Appeal in Akure on June 25, ruled that it is the Chief Judge that can sue on infractions on Section 274 of the Constitution.

The court held that the fact that Titiloye is an activist, a lawyer and an officer of the court, who has pending cases before the court, does not give him the right to sue on the infraction of the Constitution.

The lawyer urged the Supreme Court to set aside the Appeal Court verdict, saying lawyers have a duty to ensure that the making and content of rules of courts conform to the Constitution.

Joined as respondents are: the Chief Judge; the AttorneyGeneral and the state Judiciary.

•From left: Patrick Obuseh, Gbenga Adefaye, Prof. Ropo Sekoni, Mohammed Haruna, Col. Gabriel Ajayi (rtd) and Adeleke PHOTO: ADEJO DAVID Muyiwa at the fourth Wole Soyinka Centre Media Lecture...at the weekend.

Ondo ACN youths, activist condole with student leaders’ families

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HE youths in Ondo State Action Congress of Nigeria (ACN) and a rights activist, Mr. Morakinyo Ogele, at the weekend commiserated with the families of three Students’ Union Government (SUG) leaders who died in an accident on Friday night.

The students’ leaders died while returning from Abuja where they honoured Governor Olusegun Mimiko with National Association Nigerian Students (NANS) award.

The deceased were presidents of the SUG of Federal University of Technology, Akure (FUTA) Awopegba Oluwaseun; Adeyemi College of Education (ACE), Akintola Abiodun; and Ondo State School of Midwifery, Akure, Miss Oyikan Olotu.

Ogele said the accident was a manifestation of a political class that was dressing itself with a borrowed robe.

He wondered why the students chose Abuja for the award, since the national body of the association was working with the state chapter of the union.

According to him, Akure or one of the campuses would have served the same purpose.

Ogele said: “It is on record

Akeredolu condemns award for Mimiko

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NDO State Action Congress of Nigeria (ACN) governorship candidate, Mr Rotimi Akeredolu (SAN), yesterday condemned an award for Governor Olusegun Mimiko which led to the death of three students’ leaders in an accident.

In a statement in Akure, the state capital, the former Nigerian Bar Association (NBA) President described the award was a charade.

The statement reads: “The news of the gruesome but needless deaths of students who went to participate in the charade called an award ceremony, ostensibly sponsored by the awardees, came as a very rude shock to us.

“Whilst we commiserate with the families of the deceased and wish the injured speedy recovery, the fact must be stressed that this sad event was, however, avoidable.

“The award ceremony, purportedly organised by the National Association of Nigerian Students (NANS), was to confer ‘honours’ on Governor Mimiko, among others. These special awardees were marked for recognition for their ‘excellent’ performances. The governor’s award is ‘the best Governor, 2012’, not minding the fact that Ondo State Government, under his watch, has neither paid its students their due bursary nor scholarships in the last two years...”

From Leke Akeredolu, Akure

that some states governors are begging some pressure groups, students union and others to dress them in series of award and when there peo-

ple are suffering. There is no any reason that if students in Ondo State in conjunction with its national body are bestowing any award on the State Governor, Abuja should have been the best venue.

“Any of the campuses would have been a proper venue for the award. Few years ago, former Kano State Governor Ibrahim Shekarau and I were honoured by the students of the University of Ado-Ekiti. The event was held on their campus. Not only this, when Femi Falana and I were honoured by the students with the Senior Advocate of Nigerian Students (NANS) awards, one of the campuses was used as the venue...”

ACN Youth Leader, Mr. Enas Mohammed, wondered why the governor preferred receiving awards when the residents are suffering.

Mohammed also said: “The governor’s recent action has shown how he is wasting the resources of the state, which are meant for development, on awards. Though we are sad that these promising young leaders died on their return from Abuja, the question that should be on our lips is: does the governor justify such award?

“In the last three and a half years in office, this governor is yet to inaugurate the roads he embarked upon but preferrs to waste billions of naira on redressing Oba Adesida/Oyemekun Road.”

Family members of the slain woman, including the woman’s daughter, Mrs. Grace Smith, and her siblings, Mrs. Eunise Orojo and Mr. Omokanju Gabriel Abiodun, have appealed for the protection of the government and the police.

Adressing reporters in Ado-Ekiti at the weekend, Mr. Omokanju said the town “of our birth has since become a no-go area for us, despite the fact that it is where we know as home”.

He added: “Those who killed our mother have vowed to eliminate every member of our family. They said we have been making troubles and that if the death of a lead witch in the community, who we called our sister, would not make us to close our mouths, death would.

“We can longer move freely about in Ekiti State. They have been looking for means to eliminate us and we have been changing locations and homes. We are helpless in the circumstance, as the town has singled out only our family for a supposed sin of causing the backwardness of the town and its many promising indigenes.

“I am appealing to Governor Kayode Fayemi and members of his Executive Council (Exco) to protect me and my sisters. We don’t want to be killed by those who killed our mother for a sin known only to them. I appeal, I appeal.”

Ekiti to compile data on orphans, vulnerable children

By Sulaiman Salawudeen, Ado-Ekiti

EKITI State will soon begin a census to compile data on Orphans and Vulnerable Children (OVCs) in the 16 local government areas of the state.

Commissioner for Women’s Affairs, Social Development and Gender Empowerment, Mrs. Fola Richie-Adewusi broke the news at a training workshop for Research Assistants and Supervisors on OVCs survey.

Addressing participants at the workshop in Ado-Ekiti, the state capital, the commissioner said the training would enable the state to generate reliable data for policy formulation to alleviate the chellenges of the OVCs. Mrs Richie-Adewusi, who was represented by the Deputy Director Child Development, Mrs Lola Ologuntoye, said the training would equip the participants with information to determine how to plan for OVCs. A consultant in charge of the training, Mr Taiwo Benson, said Ekiti was the third state in Nigeria to do an in-depth assessment and situation analysis of OVCs. Participants were from the National Population Commission (NPC), the Bureau of Statistics (BOS) and graduates of Demography and Social Statistics.

THE NATION MONDAY, JULY 16, 2012

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NEWS CAN, JNI, ACF decry Borno explosion From Tony Akowe, Kaduna

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HE President of the Christian Association of Nigeria (CAN), Pastor Ayo Oritsejafor, the Muslim umbrella body in the North, Jama’atu Nasril Islam (JNI) and the pan northern socio-political organisation, Arewa Consultative Forum (ACF), yesterday decried Friday’s bombing targeted at the Shehu of Borno, Alhaji Abubakar Garba El-Kanemi and the Deputy Governor of Borno State, Alhaji Zannah Umar.

Oritsejafor called for collaborated efforts to end the spate of bombings in the country.

In a statement by the Special Assistant to the CAN President on Media and Public Affairs, Kenny Ashaka, Pastor Oritsejafor said he wondered why the Shehu of Borno whom he described as a dispassionate, credible and forward-looking Muslim should be a target of attack.

He noted that those who profess Islamicism are those with different, radical and extreme Islamic ideologies operating with misinterpreted principles that do not have value for human life, as long as the beliefs of others differ from theirs, adding that there is a difference between Islam and Islamicism.

Worshippers shun church services as explosions rock Kogi A NOTHER major tragedy was averted yesterday.

Explosives in a vehicle were detonated by some people near the branches of the Living Faith Church (aka Winners Chapel) and the Deeper Life Bible Church on the Okene-Obehira Road in Kogi State.

There had been fears in Lokoja, the state capital, following a rumour that there would be an attack.

Worshippers at two churches located 200 metres from the spot of the blast were said to have shunned services to avert a disaster.

An eyewitness said the vehicle exploded near the

•One held

From Mohammed Bashir, Lokoja

Winners Chapel on Obehira Road.

Although the motive of the attackers and the destination of the vehicle could not be ascertained, the source said the assailants must have been waiting to launch the attack.

Another witness said the occupants of the explosivesladen vehicle could have been heading for Lokoja, the state capital.

A source at the scene of the explosions said the occupants of the vehicle were accosted by the manager of the NNPC filling station where it was parked.

The source added that it was when the people were moving the vehicle away from the station that the bomb exploded.

Police spokesman Ile Simon confirmed the blast.

He said one person had been arrested in connection with the incident. He is be-

ing interrogated, but the second person is on the run.

The chairman of the Joint Task Force (JTF) in Kogi State, who also confirmed the incident, said they were trying to unravel the mystery surrounding the blast.

The police command confirmed the blast, saying there was no casualty.

The Commissioner of Police, Alhaji Mohammed Musa Katsina, in a telephone chat said the attackers detonated the bombs in their Rover saloon car with registration number LKJ 919 AA.

STF: Plateau evacuation notice not targeted at any group •Northern governors warn STF

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HE Special Task Force (STF) has said the people of Plateau State should not see the 48 hours evacuation notice given to residents in Riyom and Barkin Ladi local governments as being targeted at a group of people.

It said it is a general military rule aimed at addressing the insecurity in the state.

The STF Commander, MajGen. Henry Ayoola, said: “The evacuation rules are “a necessity in line with the International Humanitarian Law and are consistent with best global practices.

“The affected villages are Mabnga, Kakuruk, Kuzen, Maseh, Shong and the inhabitants of the areas are advised to leave in their interest within 48 hours with effect from yesterday.”

From Marie-Therese Nanlong, Jos and Jide Orintunsin, Minna

The commander said the affected villages are not predominantly of any tribe, adding that the STF is aware that virtually all the villages in the areas have been deserted following the July 7 attacks.

He said the operation is expected to be swift and once the area is declared safe, residents will be called back.

Northern States’ governors have urged the STF to exercise caution over the matter.

The Chairman of the Northern States Governors Forum (NSGF) and the Governor of Niger State, Dr. Mu’azu Babangida Aliyu, warned that the 48- hour ultimatum issued by the STF could lead to the breakdown of law and order not only in Plateau State

but in other parts of the country.

On Saturday, the STF asked residents of the affected areas to vacate the places immediately, citing military action in the troubled villages as the reason.

A statement by the Chief Press Secretary to Governor Aliyu, Danladi Ndayebo, said the forum is worried by complaints from a section of the region to the effect that the vacation order represents a declaration of war by the military against a segment of the nation’s citizens.

According to the statement, “although the forum is not opposed to any action that will put a stop to the senseless killings of innocent people in Plateau State, the region cannot afford the likely negative consequences of the order that the

•Aliyu

Fulani herdsmen should vacate the said villages without providing alternatives.”

Advising the STF to work closely with Governor Jonah Jang, Aliyu said the issuance of unilateral orders would worsen the insecurity in the state.

The statement called for a stakeholders’ forum to address the recurring crisis.

“The current security challenges in Plateau State provide the opportunity for stakeholders to sit down and solve the indigene-settler problem once and for all,” the statement added.

Man, 82, marries woman, 70, at Kano mass wedding N 82-year-old man, Malam Uba Abdurrahman, was among the 250 men who married in the second batch of the planned group marriage organised by Kano State Hisba Board yesterday.

The wedding fatiha of some of the couples was conducted at the Kano Central Mosque under the supervision of the Emir of Kano, Alhaji Ado Bayero, who served as the father of the brides.

Abdurrahman met his 70year old wife, Malama Amina Usman, through one of her sons.

“After we had begun seeing each other, I went to the Hisba Board and completed the necessary processes,’’ he said.

A

From Kolade Adeyemi, Kano

He hailed the board for initiating the programme and urged other couples to live in peace.

In all, 250 brides, comprising divorcees and single women, were selected from the 44 local governments.

The wife of the Vice-President, Hajiya Amina Sambo, attended the mass wedding.

She donated 150 sewing machines to the brides to make them self-reliant.

Another highlight of the event was the tying of the nuptial knot between an 80year-old man, Sa’idu Ahamad and Zainab Ado, 55.

The mass wedding fatiha, which was low-key, unlike

the previous one, was conducted by the imams of the local governments.

The Director-General of the Hisbah Command (Sharia implementation agency), Saheed Abba Sufi, told reporters that the mass wedding was aimed at addressing the high rate of divorce in the state.

The first in the series of the mass wedding was held in Kano about four months ago when 100 couples were joined. The event attracted dignitaries from within and outside the country.

Presenting gifts to the couples, Hajiya Sambo described the mass wedding initiative of the government as a right step in the right direction to tackle the socio-economic

challenges at the grassroots.

She said she was impressed by the initiative of the government. She noted that the development informed her decision to make the donations.

She said she has contacted some governors to emulate the kind gesture of the Kano State Government.

Hajiya Sambo urged the beneficiaries to make judicious use of the gifts. She also enjoined them to be obedient to their husband to avoid quarrels.

Governor Rabiu Musa Kwankwaso also presented gifts to the couples. They are beds, beddings, bags of rice, cartons of spaghetti, household items and N20,000 each as a take-off capital.

Borno attack callous, says Tambuwal

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PEAKER of the House of Representatives, Aminu Waziri Tambuwal, has described as callous the attack in a mosque in Maiduguri, the Borno State capital, last Friday. Five persons died in the attack.

He said the incident has shown that the Boko Haram attacks are not targeted at Christians alone.

In a statement issued by his Special Adviser on Media and Public Affairs, Malam Imam

Imam, Tambuwal said men of goodwill must rise to confront the Boko Haram menace, which he said “is meant to destroy us as a nation.”

He said no religion condoned the killings of innocent people under any guise, and urged security agencies to rise to the occasion by fishing out the perpetrators of the attacks and bringing them to justice.

Tambuwal said no country desirous of development would allow its citizens to be

killed at will, and reiterated the determination of the House of Representatives to, in conjunction with other arms of government, do everything possible to return all sections of the country to the path of peace and stability.

He enjoined the groups nursing grievances to shun violence and embrace dialogue.

Tambuwal said despite the insecurity in some areas in the country, Nigerians should not

cave in to the reign of terror visited on them.

“It is by remaining resolute and prayerful that we can overcome this difficult phase of our nationhood,” he added.

The House of Representatives Speaker decried the targeting of the Shehu of Borno and the Deputy Governor in the attack and condoled with the government and people of Borno State, especially the families of the deceased.

THE NATION MONDAY, JULY 16, 2012

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NEWS US seeks SERAP’s advice on Alamieyeseigha’s loot HE United States Department of Justice has sought the advice of the Socio-Economic Rights and Accountability Project (SERAP) on “what the US should do with the proceeds of the civil asset forfeitures imposed on Diepreye Alamieyeseigha, the former governor of Baylelsa State.

Alamieyeseigha was convicted of money laundering and unjust enrichment.”

The request for advice was made last week by Jeffrey Benzing of the Department of Justice to SERAP’s US Volunteer Counsel, Professor Alexander W. Sierck.

This followed the Department of Justice first Kleptocracy Asset Recovery Initiative forfeiture judgment of $400,000 in assets traced to Alamieyeseigha in Nigeria.

Professor Sierck’s response reads in part: “On behalf of my client, SERAP, the Nigerian NGO, I am responding to your question as to what the US Department of Justice should do with the proceeds of the civil asset forfeitures imposed on Diepreye Solomon Peter Alamieyeseigha, the former Governor of Baylelsa State in Nigeria, who has been convicted in Nigeria of money laundering and unjust enrichment while in political office.”

According to the organisation, “in the specific context of Governor Alamieyseigha case, the US should establish a trust fund comprising present and future civil asset forfeiture proceeds to be paid, ultimately to benefit the people of Baylelsa State. As a practical matter this would mean payment to a Nigerian or foreign NGO which would, subject to anti-corruption safeguards, spend the money on public health or education projects, in the state. A direct payout from the trust fund to the adult citizens of the state would seem to be, in my judgment, impractical and inefficient.”

SERAP noted that Article 79 of the Rome Statute establishing the International Criminal Court provides for the establishment of separate trust funds into which criminal penalties and asset forfeiture proceeds are paid.

N273b pension fund: Senate insists on trial of Maina, others

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HE Senate has said Chairman of the Pension Reform Task Team, Mr. Abdulrasheed Maina, must face trial for alleged mismanagement of N273.9 billion pension funds.

A member of the Senate Joint Committee on Public Service and Establishment, States and Local Government Administration, said yesterday that more petitions against the Maina-led Task Team have been received.

The committee member, who spoke under the condition of anonymity in Abuja, said fresh petitions and allegations are being sent in by pensioners against Maina and his Task Team.

He said the committee had been inundated with petitions that the Task Team stalled the payment of harmonisation and increment pension rates worth N2.6 billion to police pensioners.

•Payment of N2.6b to police pensioners stalled From Onyedi Ojiabor, Assistant Editor

He said the money, approved by the Federal Government, was meant to pay police pensioners.

The Senate committee, he said, is looking into these allegations against the Task Team.”

He noted that the pension Task Team has created excruciating pains for pensioners.

The lawmaker said petitioners cited irregular payment, stoppage of payment and loss of confidence in the task force.

He said: “Following the submission of the committee’s report to the Senate in plenary, we have been inundated with fresh complaints, grievances and petitions from bitter and aggrieved pensioners and their dependant ask-

ing us to arrest the activities of Maina’s task force.”

He said the pensioners claimed that “due to the illegal actions and activities of the task force, the payment of the monthly pension gratuity and pension arrears has been stalled in the Police Pension Office resulting in untold hardship experienced by police pensioners.”

He said the petitioners the harmonisation and increment of pension rates worth N2.6 billion in the Police Pension Office approved by government which was stalled.

He also quoted similar petitions in the pension offices of the Office of the Head of Civil Service of the Federation (OHCSF) and the State Security Service (SSS) and accused the task force of “de-

liberately causing crisis and working against the prompt and regular payment of their monthly pension.”

The lawmaker said members of the committee observed that Maina attempted to cause disaffection between the Senate Committee and the House of Representatives Committee on Pensions, a development that has backfired.

He said that Chairman of the Reps Committee on Pension has endorsed recommendations of the Senate Committee on the need to disband the task force in the interest of pensioners.

The Senate Committee, headed by Senator Aloysius Etok which investigated the activities of the Maina-led task force accused Task Team of mismanaging over N273.9 billion of pension fund.

Supreme Council for Islamic Affairs urges Nigerians to seek peace

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HE Nigerian Supreme Council for Islamic Affairs (NSCIA), Southeast Zone, has urged Nigerians to live in peace and respect one another.

NSCIA, in a statement after its meeting with the Nigeria Inter-Religious Council (NIREC) in Abakaliki, condemned the bombings and reprisal attacks in the North, describing it as “cruel and barbaric”.

“We condemn the killings of innocent Nigerians in places of worship and centres across the country.

“This act is cruel to humanity and has no basis, and cannot in anyway be linked to any religion.

“In Islam anyone that kills even one person unjustly is like he has killed all humanity,” it said.

The statement, which was signed by heads of the council’s Directorate of Public Affairs units in the five states of the Southeast, appealed to Nigerians not to seek vengeance.

NSCIA appealed to aggrieved groups to embrace dialogue and give peace a

chance to ensure the success of the transformation agenda of President Goodluck Jonathan.

The council described as “uncomplimentary” a recent statement credited to a religious leader, who threatened to attack mosques and residences of Muslim leaders in the Southeast.

“The call for reprisal attacks sounds unwarranted and a disservice to the nation.

“We do not subscribe to any call for reprisal in the situation we found ourselves but we sympathise and commiserate with the families and victims of those affected by the criminal activities of Boko Haram.

“We appreciate the security agencies for the efforts they are making to tackle the security challenges in the country,” it said.

The council called on all Nigerians to assist the government in tackling the security challenges by providing security agencies with information that could lead to the arrest of those perpetrating criminal activities in the country.

Editors set agenda for CJN

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HE Nigerian Guild of Editors (NGE) has urged the new Chief Justice of Nigeria (CJN), Justice Aloma Mukhtar to rebuild the waning confidence in the nation’s Judiciary.

Mr Gbenga Adefaye, President, NGE spoke yesterday with the News Agency of Nigeria (NAN) in Lagos.

Mukhtar, 68, will be sworn in today.

She will become the 13th chief justice and the first woman CJN. Adefaye described Justice Mukhtar’s appointment as significant and historic, adding that it is good for women empowerment.

He said:”The appointment is also significant for our nation because it is based on merit.

“Ordinarily, the Guild will not be drawn into matters that are out of its purview but we believe that she should restore confidence in the judiciary through the projection of integrity.”

A human rights group, Access to Justice (AJ), also in a statement by Mr Joseph Otteh, its Executive Director, said Justice Mukhtar must address the enormous challenges facing the Judiciary, including corruption.

“Mukhtar needs to take decisive steps to demonstrate both to the public and other judicial officers that she will operate a zero-level tolerance for any conduct that carries a real risk of damaging public perception of judicial independence, integrity and accountability.”

•Chief Operating Officer AgustaWestl Mr. Daniele Romiti (left) and Chairman, Caverton Group Mr. Aderemi Makanjuola shake hands after signing the agreement on the apointment of Caverton Helicopters as the authorised service centre for Romiti’s helicopters in Nigeria. Behind them at the 2012 Farnborough Airshow, United Kingdom (UK) are from left; Mr. Olabode Makanjuola, Director, Caverton Group; Mr. Patrick Chabrat, Head of Region, Mr. Enrico Laila Morra, Sales Manager, Africa both of AgustaWestland and Mr. Adeniyi Makanjuola, Executive Vice Chairman, Caverton Helicopters.

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‘Constitution conference panacea to nation’s problems’

OALITION of Democrats for Electoral Reforms (CODER) Coordinator Mr. Ayo Opadokun yesterday urged President Goodluck Jonathan to convoke a Sovereign National Conference (SNG) to discuss the basis for peaceful co-existence in the country.

He said Nigeria is not yet a nation, adding that its position as a united nationstate is fragile.

Opadokun said in a statement that the constitution review committee set up by the President is a manifestation of another jinx, stressing that Justice Alfa Belgore, who chairs the commission, cannot deny

By Emmanuel Oladesu, Deputy Political Editor

the national question staring the country in the face.

He said: “There is no doubt that President Jonathan has turned out to be a remarkable scion of President Obasanjo’s ‘politricks’. There was no spectacular recommendation of Belgore’s committee that had not been canvassed before.

“Obasanjo’s 2005’National Conference had one and only one agenda. But the Nigerian people rejected the subterranean move. In fact when Prof.

Jerry Gana and his team thought they have succeeded in pushing the third agenda in, the significant majority of the delegates rejected the evil proposal.

“This time around, the dubious intention to chase shadow as opposed to the substance will be a stillborn baby.

Using Obasanjo’s many selfish ideas will be counter-productive this time. Deliberately, the Nigerian national leadership is always averse to turning the Nigerian geographical expression into a nation. We have wasted various opportunities to reconfigure our political

space till date.Otherwise,why will a President Jonathan ignore the popular will of the greatest majority asking that it is imperative and a necessity to assemble Nigerian ethnic nationalities and other stakeholders to meet in a representative assembly to confront the national question for this one time?”

Opadokun said Nigeria has been misruled, making it one of the 10 leading corrupt countries in the world.

He objected to Belgore as the chair of the constitution review panel, saying he was a leading icon of the Belgore’s dynasty which had usurped power in Ilorin.

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THE NATION MONDAY, JULY 16, 2012

NEWS •President/ Chairman of Council Chartered Institute of Arbitrators Chief Afe Babalola, presenting a plaque to Ibrahim Muhammed, a Justice of the Supreme Court(middle) and Lagos State Attorney General Ade Ipaye, during the presidential dinner and conferment of fellows of the institute at the Sheraton Hotels and Towers Ikeja…at the weekend.

PHOTO: ADEGUNLE OLUGBAMILA

ACN Barcelona hails Oshiomhole’s T was jubilation galore in victory

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Barcelona and entire Spain yesterdayas Nigerians received the news of the reelection of Edo Governor, Adams Oshiomhole.

Mr Fidelis Igunbor said he was elated that the people shunned ethnicity to vote the right candidate. He said they did not allow themselves to be intimidated with the presence of heavy security.

According to Loveday Iyobosa, who resides in Madrid, though he hails from Benin, he was happy that his people rejected the PDP candidate, adding that the Oba of Benin did well in leading the people on to the right path.

Across Spain, it was exchange of congratulatory messages.

The people gathered to celebrate the victory they described as hard won. According to them, it was no mean achievement to defeat a political heavyweight like Chief Tony Anenih.

ACN member Bayo Eni-

Jonathan to woo global business leaders in London

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RESIDENT Goodluck Jonathan is expected to lead a strong team to the High Level Investment and Business Summit on Nigeria taking place in London between July 30 and August 1. The summit is to ensure that Nigeria seizes the opportunity of the London 2012 Olympics and Paralympics Games to link Nigerian entrepreneurs to the global economic system and project Nigeria to the international community as one of the world’s best investment desti-

nations.

The top notch business forum that is also expected to be attended by Nigeria’s leading partners from the international development community will feature presentations by the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo Iweala, Trade and Investment Minister, Olusegun Aganga, Petroleum Minister, Deziani Allison Madueke, Minister of Agriculture, Dr Akinwunmi Adesina, Minister of Power,

Professor Barth Nnaji, Minister of Culture, Tourism and National Orientation, Chief Edem Duke and Mr Sanusi Lamido Sanusi the CBN Governor. Governors including those of Anambra, Kogi, Niger, Delta, Ogun, Oyo, Ondo and Ekiti States will attend to attract investors to their states.

Africa’s number one Industrialist, Alhaji Aliko Dangote, President Manufactures Association of Nigeria, Chief Kola Jamodu, CEO , ECOBANK Group, Mr Arnold Ekpe, former Group Managing Director of the United

Bank for Africa, Mr Tony Elumelu and many private sector leaders have confirmed their participation at the summit.

The Director General of the United Nations Industrial Development Organisation, Dr Kandeh Yumkella, will lead the team of foreign dignitaries that include Mr Stephen Jennings, CEO, Renaissance Capital and the Chairman of Goldman Sachs Asset Management, Mr Jim O’Neill.

The event that is being orga-

nized by the Bank of Industry, under the supervision of Aganga. No fewer than 350 delegates comprising businessmen, diplomats, government representatives, representatives of transnational corporations (TNCs), multinational organizations, international financial institutions, multilateral agencies and Nigeria’s leading international development partners from across the world. The summit with the theme’’ Nigeria- the World’s Most Vibrant Market’’ has attracted significant international attention.

From Tunde Oyeleke

kuomehin who resides in Valencia and hails from Ondo State, said while felicitating with Edo people he called on Ondo people in the Diaspora to do like their Edo State counterparts who did everything possible to mobilise their people at home to get prepared and be battle ready to confront PDP and ensure their votes count and be counted.

Enikuomehin said the battle for Ondo in October will not be less fierce.

Driver’s licence ‘ideal for planning’

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EPUTY Senate President Ike Ekweremadu has described the upgraded driver’s license a veritable tool that will provide the gateway for effective collation of accurate data on Nigerian drivers, necessary for national planning.

Speaking after undergoing the process of obtaining the driver’s license at the national headquarters of the Federal Road Safety Corps, the Deputy Senate President said he came to process his driver’s licence as a symbolic stamp of authority following the lifting of the suspension order placed on the number plate and driver’s licence production by the Senate.

According to him, the FRSC remarkably transformed into a technologically driven government agency which has achieved an effective re-alignment of motor vehicle administration in Nigeria.

Oshiomhole: we’ve sent riggers out of business Continued from page 2 politicians. I am very proud of

PDP (13,282), ANPP (156), CPC (115), LP (24), NCP (25), and SDMP (40).

Etsako Central: ACN (16,834), PDP (5,113), ANPP (42), CPC (30), LP (12), NCP (16) and SDMP (18).

Etsako East: ACN (23,174), PDP (4,992), ANPP (75), CPC (61), LP (13), NCP (6), SDMP (28).

Etsako West: ACN (44,962), PDP (5,920), ANPP (169), CPC (192), LP (152), NCP (37), SDMP (45).

Igueben: ACN (9,751), PDP (6,758), ANPP (63), CPC (35), LP (9), NCP (19), SDMP (18).

Ikpoba/Okha: ACN (58,809), PDP (6,505), ANPP (518), CPC (357), LP (54), NCP (49), SDMP (56).

Oredo: ACN (66,522), PDP (9,081), ANPP (454), CPC (268), LP (49), NCP (45), SDMP (48).

Orhionmwon: ACN (26,163), PDP (8,716), ANPP (277), CPC (235), LP (34), NCP (46), SDMP (53).

Ovia North East: ACN (26,835), PDP (5,427), ANPP (280), CPC (233), LP (41), NCP (34), SDMP (68) Ovia South West: ACN (16,077), PDP (5,015), ANPP (196), CPC (222), LP (25), NCP (37), SDMP (84) Owan East: ACN (22,483), PDP (11,709), ANPP (169), CPC (123), LP (27), NCP (23), SDMP (34) Owan West: ACN (15,150), PDP (7,229), ANPP (136), CPC (130), LP (20), NCP (26), SDMP (37) Uhunmwode: ACN (17,011), PDP (5,826), ANPP (359), CPC (124), LP (22), NCP (24), SDMP (70).

Resident Electoral Commissioner (REC) Mr Kassim Gaidam praised the political parties’ leaders for their “maturity”.

“They have proved to be real

Edo,” he said after the announcement.

He then joked: “I will even apply for the citizenship of Edo State. If all politicians will conduct themselves this way, then our job will be made easier.”

According to him, despite some hitches encountered, there was a lot to cheer about the exercise.

“The effort to make INEC better will continue. We should all be solution-providers at all times,” he said.

Celebrations erupted outside the INEC headquarters on 3, Benin-Auchi Road, Ikpoba Hill.

Chants of “Oshio Baba!” “It’s the peoples’ election!” “No more PDP!” “No more Anenih!” rent the air.

Men, women, youths, commercial motorcycle riders and bus drivers all sang songs of victory.

Some sang: “PDP, sweep am!”; “Anenih, sweep am!” as broom sellers made brisk business.

As if to acknowledge Oshiomhole’s victory, the heavens opened up as it rained about an hour later.

Hundreds of youths sang and marched through Benin streets.

At the INEC headquarters, security was tight as a large detachment of armed soldiers and policemen stood guard, frisking visitors and controlling the surging crowd.

Some party agents and reporters had kept vigil at the INEC office.

President Jonathan and Senate President David Mark congratulated Oshiomhole.

In a statement by the Special Adviser to the President on Media and Publicity, Dr. Reuben Abati, Jonathan praised INEC and the security services for ensuring that the election was free and fair.

He said the successful conduct of the election was in line with his administration’s commitment to continually strengthen democracy through the establishment of a more credible electoral system.

The President urged Oshiomhole to receive the fresh mandate as an endorsement of his outstanding performance in his first term.

He also urged the governor to see his re-election as an expression of the desire of Edo people for “the continuation of focused, purposeful and dynamic leadership’’.

The statement reads: “President Goodluck Ebele Jonathan congratulates Governor Adams Oshiomhole of Edo State on his re-election yesterday for another term in office.

“President Jonathan also commends the Independent National Electoral Commission, its personnel and the nation’s security services for ensuring that the elections were free and fair in keeping with his administration’s commitment to continually strengthening democracy in Nigeria through the establishment of a more credible electoral system.

“The President urges Governor Oshiomhole to receive the fresh mandate given to him yesterday by the people of Edo State as an endorsement of his outstanding performance in his first term and an expression of their desire for a continuation of his focused, purposeful and dynamic leadership.

“He expects that the Governor will work even harder in his second term to justify the confidence in his leadership clearly expressed by the Edo State electorate yesterday and assures him that the Federal Government will continue to give all possible support and as-

sistance for development in the state.

“President Jonathan wishes the Comrade-Governor continued good health and a successful second term in the service of Edo State and Nigeria.”

Senate President Mark described Oshiomhole’s victory was a reward for service.

He said: “This re-election is a reward for service. It must serve as an elixir for greater performance. You must continue to make service to your people the focal point of your administration.”

In a statement in Abuja by his Special Adviser on Media and Publicity, Mr. Kola Ologbondiyan, Mark urged the governor to be magnanimous in victory and implored him and other contestants to join hands to build a new Edo in the overall interest of the people.

The Senate President praised the Independent National Electoral Commission (INEC), security agencies and the people for the peaceful conduct of the election.

He commiserated with the government and people of the state over the Ologbo boat mishap which claimed some lives in the course of Saturday’s election.

The national leadership of the PDP conceded victory to Oshiomhole.

In a congratulatory message to Oshiomhole, the PDP also urged its supporters to remain calm, law abiding and to resist the temptation to take the law into their hands.

The party’s National Publicity Secretary, Olisa Metuh, in a statement, said: “As a party that respects the institutions of democracy, and in demonstration of the spirit of sportsmanship, which is the acclaimed principle of the PDP under the lead-

ership of Alhaji Bamanga Tukur, we call on all our supporters to accept this result as declared by INEC. “We congratulate the winner for this victory. This is, however, without prejudice to our right to seek redress if we observe from our field reports any foul play. We, therefore, urge our supporters to remain calm, law abiding and resist any temptation to take the law into their hands.

“While we await the reports of our monitors in different locations in the state in order to determine our next course of action, we commend the people of Edo State for their enthusiastic participation in the exercise.

“In the course of our campaigns, we told the people that our entry into the race was not a do-or-die affair. We did our best to provide a credible alternative to the people of the state.

“We shared their hope for a reentry into the mainstream of Nigerian politics. We shared their sentiments in their yearning to join the list of progressive states administered by the PDP. However, to our disappointment, the results as declared by INEC did not go our way”, the statement added.

Former Vice President Atiku Abubakar in a statement by his media office in Abuja, said Oshiomhole’s reaction was a clear confirmation that the people are satisfied with the performance of the governor in his first term in office.

According to Atiku, it is becoming increasingly clear that Nigerians are ready to take full advantage of democracy as a system of representative government following the way in which the election was monitored by Nigerians via the social media platforms.

He praised the people of Edo

•Gen. Airhiavbere

State for the discipline and tolerance they had exhibited in expressing their choice in the election.

Atiku commended Gen. Airhiavbere for making himself available as an alternative in the election, noting that the loss in Edo State should be taken in good faith as it was never a door-die affair in the first place.

According to him, PDP’s loss in Edo State offers unique opportunity for the ruling party to reflect on the way forward.

Edo ACN Chairman Mr Thomas Okosun praised President Jonathan for not interfering in the election.

Okosun, in an interview with the News Agency of Nigeria (NAN) yesterday in Benin, also praised INEC Chairman Prof.

Attahiru Jega for conducting a free and fair election.

He said: “With this election, the President has indeed demonstrated that he is a man of his word and Nigerians can trust him too.

“ACN’s victory today is a victory for Nigeria’s democracy and gradual liberation from the era of dictatorship.’’

The chairman noted however that INEC still needs to improve on its operations, especially in producing accurate voters register, provision of logistics and the distribution of election materials.

NATIONSPORT MONDAY, JULY 16, 2012

TRANSFERS

EXIT BECKONS

for former Arsenal star

K

OLO TOURE is eyeing a move out of Manchester City to

Turkey.

Bursaspor are reportedly interested in signing up the defender, with Manchester City happy for the move to go ahead.

Chances are likely to be limited for Toure at the Etihad stadium, next season.

He has failed to win back a regular place in Roberto Mancini’s side after serving a drugs ban.

MALOUDA's SANTOS deal in doubt F

LORENT MALOUDA has a year left to run on his contract at Stamford Bridge but did not play as regularly as he would have liked last season and faces increased competition for a starting spot this term following the signings of Marko Marin and Eden Hazard.

Reports have suggested that

MANCINI INSISTS Tevez, Dzeko won’t leave Man City

the Blues could be ready to let the Frenchman go, and Santos vicepresident Odilio Rodrigues stated earlier this week that informal talks had been held.

Ramalho admits that he is an admirer of the 32-year-old, but doubts whether a deal will be finalised due to financial issues.

"Malouda was offered to us," Ramalho told reporters. "He is a

very interesting player, but you get scared when they tell you their demands.

"They say they are in crisis in Europe, but they spend so much money on transfers there. He was offered to us, but when you think about his wages, it gets hard.

"He is a very good player, an old-school midfielder who can hold the ball and set the tone in attack.”

VILLA BOSS

M

ANCHESTER CITY manager Roberto Mancini has confirmed his intention to resist offers for strikers Edin Dzeko and Carlos Tevez.

•Malouda The duo have been linked with a move away from the Etihad Stadium following a season in which Dzeko found himself in and out of the team and Tevez spent several months on the sidelines after his relationship with Mancini broke down.

Tevez returned to action to play an important part in helping City seal the Premier League title, however, while Dzeko still managed 19 goals in all competitions.

And Mancini has reiterated his desire to fend off reported interest from the likes of Bayern Munich and AC Milan in the two players.

"Both Dzeko and Tevez will stay at City," Mancini told Sky Italia. "We are a great team and we try to keep all our great players. It won't be easy but they will stay here.

"We still lack a couple of players to reach [the level of] Real Madrid and Barcelona. Also our mentality has to grow season by season."

Mancini, meanwhile, dismissed speculation linking him to the vacant Russia job by insisting that he remained committed to the project at City having recently signed a new five-year contract.

"I'm honoured by Russian interest in me, but at Man City there are important plans for the future," the Italian explained.

61

keen on Carroll deal

A

S T O N VILLA have joined the race for Andy Carroll's signature as the striker continues to be tipped for a move away from Liverpool.

Carroll's future at Anfield has been placed in doubt by the arrival of fellow forward Fabio Borini in a £8m switch from Roma last week, which follows hot-on-the-heels of comments by new Reds boss Brendan Rodgers that he may be prepared to let him leave on loan.

Rodgers is also stepping up his interest in Fulham attacker Clint Dempsey and his signing would surely open the door for potential suitors to seal a deal for the England international.

West Ham, Fulham and the 23year-old's old club Newcastle have also been linked with a move for the Reds targetman, while Villa manager Paul Lambert is known to be on the look out for extra firepower to bolster his side's striking options.

The prospect of pairing Carroll up with England team-mate Darren Bent at Villa Park is one which would appeal to Lambert, if he was to officially become available.

He told Sky Sports News: "There's no doubt he's a top player, and it wouldn't be one I would dismiss if it was there.

"I've always said that the group need a hand. They need players to come in and give them a hand and we're trying to get them in."

The Scot has made three additions to his squad so far since taking over, with Brett Holman, Karim El Ahmadi and Matthew Lowton having all arrived at the club since the end of last season.

MOURA swoop ruled out

S

AO PAULO say they have no intention of selling Lucas Moura despite reports claiming that Manchester United are ready to bid £26m.

Reds boss Sir Alex Ferguson has confirmed he wants to bring in at least one more player this summer and Moura is said to be on his wanted list, while Chelsea are also known to be keen.

Reports have claimed United are lining up a massive bid for the 19-year-old but Sao Paulo president Juvenal Juvencio says they will resist the temptation to

cash in on the starlet.

"It is a risk not selling Lucas, but we are going to take it," Juvencio has been quoted as saying.

Whether the Brazilians will have a change of heart if a firm bid is made, remains to be seen but for now they are digging their heals in and are refusing to sell.

Real Madrid have also been linked with the player who is one of the most exciting young talents in South American football.

•Carroll

THE NATION MONDAY, JULY 16, 2012

62

SPORT EXTRA

NwaneriwinsMalaysiandouble F

ORMER Nigeria international defender Obinna Nwaneri has won a league and cup double in Malaysia with his Super

League club Kelantan FA. The former Enyimba defender won the league as well as 2012 Malaysia Cup to fulfil his dream of winning the dou-

ble.

He said he was now looking forward to adding the AFC Cup to his trophy cabinet as

IBB Golf Club plans big for next Olympics

I

BB International Golf and Country Club Lady Captain Anne Addeh has told NationSport that her club has resolved to take the bull by the horns and engage is a developmental plans that would help produce great golfers that could represent Nigeria in the next Olympics in the next four years and after.

The Lady Captain said the new executive committee of the IBB International Golf and Country Club is determine to create some good records during their tenure and the only way they could do so is to embark on a genuine developmental program for the growth of the game in the country.

“The new administration of the IBB International Golf and Country Club take golf development most especially in the junior category very seriously because with golf going to the Olympics as a sport then Nigeria has to prepare for it. What we have now in terms of personnel that can go out and play is lacking. We don't have very good young golfers.

“We have taken some steps to develop our junior golfers which made the club to lower the age for joining the club as a junior member which means a child as 8 years can become a junior member of the club. That's part of the strategy for catching them young. We also have in our plans four major tournament that we have four junior golfers in the year.

“We started with the Children's Day event in May. We are also going to have four week golf development plan during this long vacation now. It will start on the Au-

— Lady Captain Addeh From Segun Ogunjimi, Abuja

gust 8-28 this year. At the end of that we will have a Junior Open where we will invite junior golfers from all over Nigeria to play.

“That is the second major one. Also the third one is that in December when the

children are home again, we will have end of the year Kitty for juniors in this club. Last year there was an African Junior competition, so in April next year when the children are home again for the Easter we will have the fourth competition for the juniors”, Addeh summed up.

his club remain in strong contention in the international competition.

Speaking with MTNFootball.com, Nwaneri said he was proud of what he has achieved in his first season in Malaysia.

"It was a great achievement for me and the club, winning a double league is a good experience. I am looking forward to winning the AFC Cup. We have a game on Tuesday in the cup against Arbil, I hope we win it to make return leg a mere formality,” he informed.

Onyekachi Nwoha is the other Nigerian at Kelatan FA.

Abdullahi clears air on Govt delegation to Olympics

S

PORTS Minister, Bolaji Abdullahi has come out to clarify the main reasons for scraping the usual Federal Government delegation to this year’s Olympic Games holding in England.

“It was a decision that was taken only because the kind of budget that we have is very challenging. Team Great Britain is going to spend about 300 million pounds to participate in the Olympics. How much is Nigeria spending? just 2.3 billion naira. So it is peanuts compare to what other countries are spending.

“So we have the responsibility to manage this fund efficiently. The priority is the athletes and we have to make them comfortable. We have to make sure they have their allowances, to camp in the best environment, to also ensure they get the best coaches and all that.

So once you are ready to invest in athletes and make them priority then you then you have little left to play around with.

When you don’t have that kind of opportunity then you have to be focused.

“Secondly in line with Transformation Agenda, Mr President’s (Ebele Goodluck Jonathan) is trying to do some-

•Commends NVBF youth programs From Segun Ogunjimi thing; we are trying to break away from the past where we just go on jamboree in the name of participating in these international competitions. We also found out that the delegates are even more than the athletes”, the Sports Minister told NationSport at the Nigeria Volleyball Federation’s catch them young secondary schools program held at the volleyball court of the Abuja National Stadium, Package B on Friday.

Abdullahi also explained further, “So we at the National Sports Commission believe that we have to help Mr. President to put a stop to this kind of jamboree. From what I heard when they go there as officials or delegation of the Federal Government of Nigeria they want to take over the job of the coaches, they also want to take over the job of the technical teams, they want to ask for entitlements and everybody is busy catering for them rather than catering for the athletes “I am glad Nigerian public have appreciated it and they are going along with us. Of course you can not rule out

people wanting to go to the Olympics but when we now begin to constitute formal Nigerian delegation is where you begin to create problems.

The Minister also used the opportunity to commend the Engineer Habu Gumel-led Nigeria Volleyball Federation for their initiative in trying to develop the game from the secondary school level which they tagged “Volleyball at School” geared towards catching them young.

“I am happy that the Volleyball Federation is towing the line and agenda of the National Sports Commission by trying to catch them young through school sports.

I am happy and commending the President (Engineer Habu Gumel) and the Federation for this initiative. It is a revolution in sports now and it is the mission of the National Sports Commission to develop sports from the grassroots most especially in schools. I am also happy that the representative of the Minister of Education also attended this program”, the Minister disclosed.

Union Bank sweeps laurels at Lagos Table Tennis League

D

ESPITE stiff opposition from Springfresh Club and Union Maritime, Union Bank Sports Club affirmed its supremacy at the grand finale of the Lagos State Table Tennis League after mopping the laurels in the men and women events.

The bankers had three teams taking part in the finale, with only two making it to the last four, but they managed to beat other teams to the title at the finale watched by the Lagos State Commissioner for Youth, Sports and Social Development, Wahid Oshodi as well as representatives of the Oniru Royal Family sponsor of the eight week league including top officers in the ministry.

10 men and women teams made it to the grand finale and they were drawn into two groups with five teams in each group of the championship held at the Mobolaji Johnson Sports Centre, Rowe Park in Yaba.

The top teams qualified for the semi-final with Union Bank, Springfresh and Nigeria Police making it to the last four in the men's event.

Also, Union Bank ladies were joined by Union Maritime, J30 and Nigeria Police in the semi-final of the women's division.

However, it was the end of the road for Union Bank team one led by the duo of Jide Ogidiolu and Kazeem Makanjuola. Having led the league from week one to the end, the pair failed to qualify from the group during the finale to give the bankers' team two and three the chance to lay hold on the title.

For the Springfresh team captained by Mojeed Olayiwola, they put up a good fight to match their pretourney boasting with action by making it to the final stage before conceding victory to Union Bank two in a

•Ogundele

match that ended 3-0 in favour of the bankers.

Olayiwola and his teammate - Hammed Adeyinka were at their best in the finale but their efforts could not save them from losing to Union Bank's duo of Ganiyu Ashimiyu and Sola Oyetayo in the men's final.

Fatimo Bello paid no respect to the pedigree of foreign-based Ganiat Ogundele and Olaide Atinuke in the women final as the southpaw player inspired the bankers' ladies to overcome Union Maritime 3-2 to lift the trophy.

For Prince Tijani Oniru, the sponsorship of the tournament would continue considering the enormous skills displayed by the participants.

“Our sponsorship of table tennis is a clarion call to support and partner the Lagos State Government to develop grassroots sports in the State. This step is taking by the Oniru Royal Family to contribute our own quota in line with policy of the administration of Babatunde Fashola in sports development and we believe that government alone cannot do it,” he said.

NATIONSPORT MONDAY, JULY 16, 2012

FIORENTINA

EUROPEAN LEAGUE

63

ARSENAL

Plots move for Afellay

denies bid for Chamakh

F

IORENTINA have denied making an offer for Arsenal striker Marouane Chamakh. The Morocco international joined the Gunners on a Bosman free transfer from Bordeaux in 2010 but has failed to hold down a regular place at the Emirates Stadium.

Arsenal manager Arsene Wenger was this week quoted as saying Fiorentina had made an offer for the 28 year-old, but Viola sporting director Daniele Prade dismissed that claim and cited the player's wages as one reason they would not be pursuing a deal.

Prade told SportItalia: "Have we made an offer for Chamakh? We have not made one because he earns three million euros (per season)."

Prade did confirm, however, that Chamakh's Morocco striker partner Mounir El Hamdaoui would soon join the Florence outfit from Ajax.

"We hope to complete El Hamdaoui's transfer tomorrow," Prade said. "He is a striker that our coach (Vincenzo Montella) likes a lot."

Prade also announced the club would only consider selling leading striker Stevan Jovetic this summer if they receive an offer above €30m.

HAMSIK

issues Juve warning

•Maicon

•Chamakh

Roma finalises Bradley swoop

R

OMA have confirmed the 3.75million euros signing of United States international Michael Bradley from Serie A rivals Chievo.

The 24-year-old has penned a fouryear contract that ties him to the Giallorossi until June 30, 2016, Roma announced in a statement on their website.

Bradley, who has won 69 caps for his country, joined Chievo last summer from Borussia Monchengladbach and had one year left on his contract with the Verona outfit.

As part of the deal, Roma's Romanian midfielder Adrian Stoian, 21, has joined Chievo for the upcoming campaign.

REAL MADRID set to hijack Maicon

R

EAL MADRID have stepped up their interest in Chelsea target Maicon, according to reports in the Italian media.

It had been suggested that Blues boss Roberto Di Matteo would swoop for the Inter Milan and Brazil star as he begins to make changes to his squad.

But Mediaset have claimed that Jose Mourinho is ready to raid his former club for the full-back, 31,

who is moving into the last year of his contract, and beat the Blues to the punch.

A fee of around €8million would appear to be enough to convince the Nerazzurri to sell.

The Serie A giants are currently clearing out their squad with Diego Forlan and Lucio already moving to Internacional and Juventus respectively.

•Hamsik

www.thenationonlineng.net

MONDAY, JULY 16 , 2012 TRUTH IN DEFENCE OF FREEDOM

TODAY IN THE NATION ‘‘Government can rise to this challenge through aerial monitoring of the mountains. Using helicopters and other hi-tech equipment that are not in short supply today, it can restore hope to the famished villagers who are now afraid to go to farms for fear of being killeds’

EMEKA OMEIHE

VOL 7 NO 2,190

C OMMENT & D EB ATE EBA

T

HE Edo governorship election set itself up as a battle, but it ended as a coronation. The guns quiet, the sweats spare, muscles sterile and plots stunted. The battlefield was more imagined than realised. The ballot triumphed over bullets, the people’s force over the farce of imposed results.

The day after, we now know that the hype was unnecessary. It was all balloon, all hot air, and the candidate whose name began with “Air” had no substance in the polls because he had no content in his vision.

It was unnecessary because the good people of Edo had an overwhelming voice and the election could not have been a battle or contest. They all needed to go to the polls and acclaim the age-old wisdom: the voice of the people is the voice of God. It was a practical demonstration of that idea French philosopher Jean Jacque Rousseau designated as the collective will, an idea sometimes exploited by tyrants.

It was the victory for preparation, anticipating the criminal weirdos and manipulating devilry of the other side.

Mobilisation trumped official fiat.

All the preset dramas became impotent.

Not the visit of the President who was shunned by the Oba of Benin. Not the murder of Adams Oshiomhole’s principal secretary. Not the attempts on his life or that of his information commissioner. Not the bluster of godfathers or the wimpy cries of such yesterday’s men as Ebenezer Babatope, Oyinlola or the man with the phony Awo cap, Segun Oni. Not the heady brood of soldiers. Or flood of fake voters’ cards. Not Anenih. Not the private armies.

But the people.

INEC under Attahiru Jega, the man with a face of deceptive innocence, did not do the job. The people of Edo State did it for themselves. They did by turning themselves into the vanguards of their own patrimony, the guarantors of their own votes, the protectors of their own truth, the arbiters of their own case. They did not want to say one thing with their ballots and let INEC say something else in Abuja, the refuge of lies. In the democracy and election, the Edo people did not want their language muffled through the filter of a counterfeit interpreter. They said it, they heard it, and affirmed that it was theirs.

So they jumped on the streets in a tumult of joy. They were not celebrating parochial politics. It was not victory for Adams’ ethnic part of Edo, or jubilation for geopolitics. It was because Adams was given a task to do, and by their reckoning, he did.

He passed his examination. Unlike Lucky Igbinedion who was asked to “repeat a

SAM OMATSEYE

IN TOUCH

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

Eve of Adam’s glory

• Oshiomhole

class,” Adams passed with éclat. Lucky was not even lucky for his airy friend. He lost in his ward. So also was the airy candidate, whose primary constituency – the army – ignored him. He lost resoundingly.

Samuel Ogbemudia, in his hoary times, would not come out in clear language to say on whose side he was. He was no hero of the moment but only cast shadows on an otherwise stellar pedigree.

The greatest loss goes to the president.

He was the one whom Adams served, even attracting criticisms from his party faithful and fellow labour travellers for breaking ranks. President Jonathan watched while Adams went through tempestuous temptations. He did not caution his party

RIPPLES CLERIC IRGES NIGERIANS TO BE HOPEFUL – News

To be HOPEFUL?....since INDEPENDENCE

men as an act of gratitude for Adams turn of good will. He also failed to reenact Bayelsa impunity in Edo. It exposed Jega. Adams himself bellowed that Jega failed. He left the election to the fortunes of the fraudsters and adventurers but the people won. We should be wary in signposting the Edo election as a model of INEC performance or President Jonathan’s devotion to equity. It was the people who denied the thief entry. The soldiers’ guns could not do anything. The people of Edo, known for their doughty hearts, were ready to mix their clay soil with blood and tears of their rage. Like Winston Churchill asserted, they were ready with nothing but blood, toil, tears and sweat.

But rigging in the Edo story was because Adams had landslide backing. What if the victory margin was narrow or if it was a 60-40 scenario, would it not have been possible to rig, and give the fraudster a cliffhanger? After all, a win is a win. That is why we cannot give any kudos to Jega, an umpire who is reported to pay visits to Aso Rock. He has no business meeting with the President, unless in public glare.

The Edo people did not want to wait for the courts. The courts were saner when Adams reclaimed his victory. But not now, when judges are not expected to rule for justice. The Edo people delivered justice for themselves. It is the electoral equivalent of self-help.

The other loser is of course Anenih, Mr. Fix it. The election day was Adams’ eve of glory, but it was the gory day of Anenih’s political silence. Never again will he flex a muscle as the proprietor of Edo politics.

But this victory tells us that to perform is one thing, to be perceived as performing is

HARDBALL HE just concluded governorship election in Edo State is unique in many ways. For the first time an electoral victory by a sitting public officer was celebrated with genuine spontaneity by ordinary people. This was not the usual crowd of leeches and hangers-on who benefit from the patronage of the incumbent.

Reports yesterday spoke of women, children, the elderly and youths taking to the streets of the capital Benin City in joyous celebration following the declaration of Governor Adams Oshiomhole as winner of the poll. Market women who were about displaying their wares picked up brooms – symbol of the governor’s party - and started dancing.

This is in contrast to what normally happens – angry and outraged mobs venting their frustration over rigging by burning and pillaging. The outpouring of goodwill on the streets is clear indication that the will of the people has been reflected by the results announced by the Independent National Electoral Commission (INEC).

Aside all the obvious advantages of incumbency, most independent observers and commentators believe that Oshiomhole triumphed because of the per-

T

Lessons from Edo polls ception that he made a genuine effort to transform the state – unlike many of his predecessors who were seen as more interested in feathering their nest.

This shows that the people respond when they see elected officials making an effort.

But even more important, where they are adequately mobilised through voter education and awareness, they rise up to resist election riggers who may want to thwart their will.

Another important lesson is that despite the received wisdom that elections in Nigeria will, almost always, be decided by mundane things like ethnicity, in a free and fair poll the people will reward merit and results, irrespective of all other primordial considerations.

That is why Oshiomhole triumphed in all senatorial zones of the state – including those of his major opponent, the Peoples Democratic Party’s (PDP), Major General Charles Airhiavbere (rtd) and his key backers like the famed fixer , Chief

quite another. The third point, though, is that to perform as an elected officer is no guarantee of electoral victory. As well as we play the politics of governance, we have always to pay attention to the politics of election.

Adams did well not to rest on the rollicking chorus of his performance. He went to the grassroots and mobilised for the election. When President Clinton completed his campaigns, he knew a good percentage of his voters would come from blacks who did not like to vote. He invoked the words of a famous baseball player, Yogi Berra: it is not over until it is over.

So, while I wrote that it was a coronation, it would not have been so without preparation. The election day was easy because of long days of rigorous planning and intelligence. To refer to Churchill again during the Second World War, no one can guarantee victory but we can deserve it.

We expect Adams to work harder in the second term. He can take a cue from the governor of example, Babatunde Raji Fashola (SAN) of Lagos whose second term has intensified work, with him taking a back seat while unleashing his commissioners to pursue his grander programmes of education, agriculture, housing and infrastructure. From being an action governor, he now focuses on an action government.

I don’t expect Adams to witch-hunt those he defeated or he would have dropped back to his own vomit. He should clasp them to his bosom and make them work for him to make Edo the place the people want it to be. Again, from Winston Churchill: “In war, resolution; in victory, magnanimity; in defeat, defiance; in peace, good will.”

Ogbeni’s night AST week, Governor Rauf Aregbesola engaged his people in a night-to-dawn interactive session. It was part theatre, part classroom, part dialogue. He laid bare his style of governance, how far he has gone in fulfilling his promises and his general plan ahead.

Deploying wit, figures, philosophy, native wisdom and songs, he told the story of Osun in the barely two years of his stewardship. He did it because of his confidence in his work so far.

More of this will come, but it was a groundbreaking act in governor-to-people meeting. I don’t know if all the people could stay awake all night, but from reports, it was a serious equivalent of our usual all-night party.

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•Hardball is not the opinion of the columnist featured above TonyAnenih, Chief of Staff to the President, Chief Mike Oghiadomhe, former Governor Samuel Ogbemudia, state PDP chairman Dan Orbih, Chief Gabriel Igbinedion and several others.

All through the campaign, the PDP unable to run against the record of the incumbent resorted to playing the age-old ethnic card. The failure of this tired strategy should be a lesson to old political warhorses and godfathers all over that the time to retire is at hand.

One of the talking points in this election has been the comments made by the winner about the performance of INEC. Some have said his reactions were hasty because of the overall outlook at the end of the day. Given that the same old logistic problems surfaced again all over Edo State last Saturday, it is clear that Professor Attahiru Jega and his team still have a long way to go.

It is hard to fault those who kept raising an alarm till the very end. Rather than suggesting that they were merely crying wolf where there was none, another way to look at it is that their trenchant criticism kept INEC and the Federal Government on their toes - and tested election riggers at bay.

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