July 21, 2014 by The Nation

Newspaper of the Year

Ibadan PDP aspirants shut out Alao-Akala

•Ex-governor: I’ll floor all of them

NEWS

Page 7

•Nigeria’s widest circulating newspaper

VOL. 9, NO. 2914 MONDAY, JULY 21, 2014

Lawmakers split over Al-Makura NEWS Page 4

•Rulers intervene to stop plot •www.thenationonlineng.net

TR UTH IN DEFENCE OF FREEDOM TRUTH

N150.00

Govt signs N275m yearly PR deal with US firm

HE Federal Government has awarded a N275million yearly contract to a United States public relations firm to manage its image, especially relating to the failure to rescue the abducted Chibok schoolgirls. Levick Strategic Communications is to assist with a range of government affairs and public relations

By Joseph Jibueze, Senior Correspondent

matters. The agreement is with effect from June 16, for an initial term of 12 months. The contract, a copy of which was obtained by The Nation, was signed on the government’s behalf by the head of a government media outfit on June 13.

According to the contract, professional fees for Levick staff will be billed at the rate of $100,000 per month (about N15,573,000). Levick is to engage Jared Genser of Perseus Strategies, “a lawyer in the international human rights and democracy community”, to assist in the firm’s objectives “to promote transparency, democracy and the rule of law throughout Ni-

geria”. The sub-contract to Genser will attract additional $25,000 per month (about N3.9million) and “will be passed through in its entirety Perseus Strategies”. Levick will bill travel-related expenses and meals to the government. “We estimate these to average $22,500.00 per professionContinued on page 4

•INSIDE: FASHOLA VISITS APAPA AGAIN P11 • NO PLAN TO REMOVE AJIMOBI, SAYS SPEAKER P7

Boko Haram: Outrage over Jonathan’s $1b loan request APC, Tinubu, lawyers to lawmakers: say no Minister defends plan

From Yusuf Alli, Eric Ikhilae, Abuja, Bolaji Ogundele, Warri and Mike Odiegwu, Yenagoa

HERE is outrage over President Goodluck Jonathan’s request for the National Assembly’s nod to secure a $1billion loan to buy arms and ammunition for the fight against Boko Haram. Minister of State for Defence Musiliu Obanikoro said at the weekend during his tour of Naval SEE ALSO formations in Delta and PAGE 5 Bayelsa states, that no major military equipment had been procured in 25 years - to justify the need for the loan. Obanikoro, accompanied by the Commanding Officer, NNS Delta, Navy Captain Musa Gemu, the Flag Officer Commanding (FOC)

Naval Engineering School, Rear Admiral Sidi H. Usman and the Flag Officer

Commanding (FOC) Central Naval Command, Rear AdWHERE ARE miral Peter Agba, said the war terrorism would soon THE CHIBOK against be won. GIRLS But the All Progressives KIDNAPPED Congress (APC), its Nation-

ON APRIL 15?

Continued on page 4

•The Russian air defence missile system BUK M2 believed to have been used to shoot down Malaysian flight MH17 seen at a military show at the international forum in Zhukovsky outside Moscow, in 2010.

‘How rebels shot down Malaysian jet’

N D I C A T I O N S emerged yesterday how pro-Russia rebels in Eastern Ukraine might have shot down the Malaysian airline MH17 last Thursday, killing 298 people on board. The plane was travelling to Kuala Lumpur from Amsterdam, Holland before it was forced down in Eastern Ukraine airspace. A motorist captured a military truck carrying BUK M1 in a border town. He filmed a military truck on main road for two kilometres in ‘border area’ of Russia at 8.45pm on Saturday Ukrainian sources have seized the footage and branded it “film of the BUK, the one that shot the Boeing” A BUK launcher was pictured rumbling into proContinued on page 4

•SPORTS P23 •CEO P27 •INSURANCE P36 •MOTORING P37 •POLITICS P47 •FOREIGN P58

THE NATION MONDAY, JULY 21, 2014

NEWS

Fast food in •Bayelsa State Governor Seriake Dickson (left) exchanging a copy of a Memorandum of Understanding (MoU) with Channels Television Chief Executive Mr. John Momoh during the maiden edition of Bayelsa State Investment and Economic Forum at the Banquet hall, Government House, Yenagoa...at the weekend. With them is Silverbird Television chief Mr. Ben Murray Bruce.

With a business model that seemingly scares away investors and mounting cost of doing business, the indigenous Quick Service Restaurant (QSR) is facing trying times. Lack of corporate governance, among others, has also been identified as another problem unsettling the sector, which was contributing about N200b annually to the GDP, writes ADEDEJI ADEMIGBUJI

T •Chairperson, Nelson Mandela Institution (NMI), Dr. Ngosi Okonjo-Iweala flanked by Vice President, Huawei Technologies West Africa, Mr. Cao Aijun (right);CEO, Nelson Mandela Institution (NMI), Mr. Bonaventure MbidaEssama (left); Managing Director, Huawei Technologies Nigeria, Mr. Gu Yu and the Public Relations Director, Mr. Wu Xiaoliang receiving the N80 million cheque from HUAWEI for empowerment of African Youth in ICT Industry during the 2014 Nelson Mandela International Day in Abuja...at the weekend.

•U.S. Consul General Mr Jeff Hawkins speaking at a news conference on Dawn in the Creeks, a television reality show to foster peace in Nigeria's Niger Delta, in Lagos. With him are Managing Director, The Quadrant Company, Mr Bolaji Okusaga and Team Lead, Political & Economic Section, U.S. Consulate, Lagos, Mr Will Meeker.

•CEO, Pinkberry Global Works, Miss Adaobi Ogudo (middle) speaking at a news conference to mark the World Mandela Day in Lagos...at the weekend. With her are Chairman, Loyalty Management Company Limited (LMLC), Ugo Tony Ajih (left) and Head, Client Relations, Folktales Moonlights Limited, Yuri Olumba.

HE cozy ambience of their outlets in strategic locations in major cities across the country, series of marketing promos and the aroma and taste of their pizza, chicken and chips give the impression that operators in Nigeria’s Quick Service Restaurant (QSR), more popularly called fast food industry, are having a swell time. Far from that. The “all-is-well smile” on the faces of models on their billboards on major highways is actually a façade for an industry in need of help. The sector is, indeed, sitting on the edge of heavy revenue losses and distress. A pointer to this emerged a few weeks ago when one of the leading indigenous QSR, Tantalizers, the only locally-owned fast food chain listed on the Nigerian Stock Exchange (NSE), posted a dismal performance in the market. Consequently, the company revealed plans to undertake a sale-and-lease back arrangement on some of its unfettered assets this quarter, with a view to raising about N1 billion working capital. This was after it experienced 86 per cent increase in net loss. It lost N564.82 million last year. The company’s audited report and accounts for the year ended December 31, 2013, showed that its turnover dropped from N41.20 billion in 2012 to N3.48 billion in 2013. Gross profit declined from N1.9 billion to N1.56 billion, while operating loss worsened from N243.4 million to N395.54 million. Loss before tax doubled from N263.18 million to N598.45 million. Loss after tax rose from N303.47 million to N564.82 million. Apparently worried by the dwindling fortune of the once vibrant and popular fast food chain and determined to turn things around, the Chairman, Tantalizers Plc, Dr. Jaiye Oyedotun, highlighted the new strategic direction of the company. He said the board and the management were working on repositioning the ailing fast foods company following a critical appraisal of its precarious financial and operational health. The repositioning is part of a rescue mission to put the company back on the path of profitability. “Our quarter one 2014 unaudited result showed a better performance, as the loss trend has reduced from N124 million to N109 million compared with the same period of 2013. We expect the performance improvement to continue as we execute the strategic turnaround programme to

One of Tantalizers several outlets

get the company back to profitability in 2015,” Dr. Oyedotun said, maintaining that for the time being, the company would continue to analyse, identify and shut down stores and institutions that continuously make losses. Tantalizers is not the only fast food giant whose fortunes have been dwindling. Before Tiger Brand bought equity in the fast food arm of United African Company Nigeria (UACN), Mr Bigg’s, its QSR, was under threat. Even after the intervention, it is not clear whether Mr Bigg’s has returned to the path of profitability, as some of its outlets at some service stations are closing down. For instance, when The Nation visited one of its outlets at a Mobil Filling Station at Adura, Alagbado Lagos, it was closed due to lack of patronage. “We were not making sales and rather than continue to incur overheads, we had to close down, though some other outlets are thriving,” the manager of the outlet who preferred anonymity, told The Nation. In 2011, when the sale of 49 per cent stake in UAC’s food division to Tiger Brands (TBS) of South Africa was perfected, the Group Managing Director/CEO, UAC Larry Ettah said: “We are delighted to partner with famous brands in this venture. This is a transformative transaction, which ensures UAC has the necessary strategic partner to unlock the considerable value potential in the QSR landscape, which Mr Bigg’s defined 25 years ago and in which it still maintains a leadership position. UACR will be availed of famous brands’ tested and highly successful brand stewardship to enhance and reinforce the Mr Bigg’s brand market power. This deal further reinforces UACN’s commitment to ensure we collaborate and leverage international partnerships to accelerate our strategic growth and progress.” Indeed, the transaction was seen by analysts as a sign of the inherent value in the company whereby the sum of the individual parts of UAC may be seen by investors as greater than the whole. However, Nigeria’s huge market with an estimated 169 million people, and an economy with annual growth rate of 6.8 per cent appear not to have leveraged the fast food giant and the ailing sector generally. While the cases of Tantalizers and UACN are easily known because they cannot hide the fact behind the figures as quoted companies, The Nation learnt that other leading QSR are also facing hard times. But it has not

THE NATION MONDAY, JULY 21, 2014

d industry...not so fast anymore

Mrs Ayeni

always been the case. Some time ago, the sector, according to the Association of Fast Food and Confectioners of Nigeria (AFFCON), an umbrella body of the QSR, was contributing about N200 billion to the Gross Domestic Product (GDP) and paying about N1billion in levies and taxes to various tiers of government. The sector was also a big employer of labour. The President of AFFCON and Managing Director of Tantalizers, Mrs. Bose Ayeni , disclosed that the industry employs over 500, 000 workers at processing and retail levels. Driven largely by Nigeria’s mushrooming middle class with high spending power, an increasing expatriate community, as well as consumer spending, the sector attracted global QSR brands, such as KFC, Domino, Nandos and Debonairs Pizza, among others. Ayeni said the sector has a massive growth potential and is dominated by some 100 small-to medium –sized indigenous brands with over 800 outlets spread across the country with potential to become bigger given the right environment. But today, the story is different. The Nation learnt that issues of high operating cost arising from lack of critical infrastructure, particularly power, remains a common thread that runs through most businesses in Nigeria, including the QSR sector. Ayeni said that about 30 per cent of the gross profit made by the fast food companies is used to service power supply. She also raised concern over multiplicity of taxes and levies. “This is compounded by the overlapping functions of several regulatory agencies. These overlapping functions and a lack of coordination amongst such regulators lead to heavy financial burden on fast food companies,” she said. PART from operational challenges, cost of servicing bank loans remains a major barrier. However, the QSR sector faces peculiar challenges: ownership structure and wrong business model. Some leading stock brokers in the sector and marketing communications experts have expressed concerns over the business model deployed by operators in the fast food industry, especially the local investors, noting that it is one of the factors rocking the sector . As the Chief Executive Officer of Domino Pizza Nigeria, Mr. Eric Andre, observed that the industry, which is still young, is bedeviled by ownership structure, which makes it difficult for them to operate and thrive on the capital market.

The Managing Director of Proshare, Mr. Olufemi Awoyemi perhaps, puts it more succinctly: “The structure of ownership in the sector in terms of corporate governance is that of ‘My husband and I business’. He explained further: “Tasty Fried Chicken is owned by a family, Sweet Sensation is owned by the Kamson, Tantalizers is owned by the Ayeni’s. For many of them, the husband is the Chairman, the wife is the Managing director. So, as you go along, that model will not work to get them listing on the stock market.” He lamented that this is despite the fact that “this is a sector that could never go wrong because of how important food is. Patronage is there, is it not ironic that almost all of them are not listed? The problem is the business model.” An investment strategist and Founder/Chair, Growing Business Foundation, Mrs. Ndidi Edozue, thinks so too. She said the ownership structure adopted by the players could cause a lucrative business to fail. “In terms of corporate governance and corporate structure, the sector is nowhere to be found. The poor performance of the sector in attracting investors is sometimes an issue of corporate governance bothering on ownership and management style. That will cause even a lucrative business to fail,” she told The Nation. The President, Chartered Institute of Stockbrokers, Mr. Mike Itegboje, said the challenges facing the operators go beyond ownership structure and business model. According to him, mismanagement of fund raised from the market is also an issue. “You will observe that Tantalizers raised money from the market just before the melt down. They probably did not invest and manage the proceeds effectively. The result is poor returns. Many failed to render reports as at when due to the market. I am not even sure if they have held AGM (Annual General Meeting) since raising funds from the market,” he said. But, the President of Public Relations Consultants Association of Nigeria (PRCAN), Mr. Chido Nwakanma, canvassed a different position. He said the problem is not so much about ownership, but cost of servicing loans borrowed from banks. Nwakanma, who has handled brands’ management for some operators in the sector, said : “Mr. Bigg’s adopted a model called Franchise. Each time it opens new outlet, it’s not UAC that is funding it. It is the Franchisee who brings his money and

given some standards to adhere to. So, for Tantalizers, the cost of roll out was huge. If you look at their book you will realise that a lot of challenges emanate from cost of servicing bank loans, which put lots of pressure on the business and not really the operational cost.” OWEVER, a greater threat to operators in the QSR sector may have been coming from traditional restaurants, more popularly called, ‘Mama Put’ in local parlance. It is a growing trend, which is changing the face of QSR. The traditional restaurants are fast taking over and sharing the market share of the standard QSR. Some of the operators process local soup from various cultural background, which leaves taste of originality in the mouth of consumers. They offer eba, semovita, pounded yam, Ofada rice, and moin-moin, among others. They also serve different kinds of soup such as efo riro, Edika Ikong, oha soup and so on to lure consumers of standard QSRs. Some of them have also introduced continental/Chinese meals to woo expatriate communities. “They are facing competition also from our old ‘Mama Put’. There is one in Port Harcourt that has opened about 30 outlets across the country and they are planning to open more. Again, our informal restaurants are upgrading standards now,” Awoyemi said. As if that is not enough cause for concern, many consumers are increasingly becoming conscious of the dangers of eating processed foods, a development that has put the fast food business under threat. The fast food industry and its nonstop marketing has been tabbed by many experts as a major player in the obesity and other health epidemic. For instance, a Pediatrician and co-author of a commentary published in the Journal of the American Medical Association (JAMA), David Ludwig, raised questions about whether big food companies can be trusted to help combat obesity. For the General Manager, Camry Security, Atiku Kafaru, the proliferation of fast food outlets, including the growing incursion of ‘Mama Put’ outlets, has eroded standards, which in turn, scare investors from risking their money in the sector whether as franchisees or shareholders. “A lot of people are coming into this industry and standard has gone down. The issue of franchisee has eroded standard,” he said.

Nwakanma

Awoyemi also cited quality control of taste offering of the QSR, which renders to consumers different taste of the same food from different outlets. He said this raises the issue of quality control, which is also putting off consumers. “You will discover that another major problem is in the taste, which is what they are actually selling. The taste of a particular food from the same brand differs from location to location. As a result, there is question about quality control,” he observed. With that trend, which has created a perception problem for QSR, Nwakanma said the players must respond to it. He said Tantalizer is the first to introduce African culinary and deserves the credit. “That is growing; the fast food model in Nigeria is different. They are the one that introduced African culinary into fast food, so they blended our local content into what they are offering consumers. They must take credit for it. The QSR in Nigeria is not the standard fast food business you see across the world. Yes, health awareness is growing and people are becoming aware of what they eat. So that sector must respond to that because it’s a perception problem,” he said. Despite the challenges faced by the sector, foreign investors have continued to express confidence in the sector, insisting that the opportunities are far from being explored considering the population. “The sector is full of opportunities and challenges. It is full of opportunities because Nigeria is a large market and if you bring good quality products, the people will accept it, thereby guaranteeing the success of the business. It is challenging because there are issues of infrastructural deficit such as power, transportation and access to good and quality materials. But for a serious business, Nigeria is surely a place to succeed,” Andre said. Andre noted that the QSR industry is young. He said while the latest brand in Africa is KFC, the largest in Nigeria is Mr. Bigg’s. “But overall, even if you put all the brands together, what you will have is less than 200 restaurants for 180 million people. So, in comparison, it’s a very, very young industry. A country of 180 million people will generally have something like 10,000 QSR and not 200,” he pointed out. Apparently noticing that lack of innovation contributes to the lull in the sector, telecoms operator Airtel re-

cently stepped in to help operators deploy technology to deepen market penetration. At an inaugural annual national conference of AFFCON, Airtel General Manager, Corporate Small Medium Enterprise and High Value Consumer Sale, Tawa Bolarin, said the telecoms company offered operators in the fast food business opportunities to reduce their fixed cost and add value to their services to customers. The offer, which comes in form of confectioners cost effective communication solutions, which could give added value to their services includes toll free call centres, Close User Group service, Teleconferencing, co-promotion and advertising opportunities and much more. She explained that fast food owners can actually outsource some of their services, which they are not necessarily good at, like ICT and telecommunications in order to allow them focus on their primary business and this also helps them avoid operation costs. She said: “We at Airtel have services like Close User Group, Wi-fi and other services that can enhance their services and also reduce their cost of operations. The Close User Community, which some are already using, allows users to call another person who works in the same business or company without paying up to N40. You can get a much cheaper service by having everybody in the Close Users Group. We have the 3G high speed Internet, which you can use. You can put a router in your restaurant, like some restaurants have VIP sections. And the fast food owners can make a lot of money from that.” Bolarin noted that Airtel could supply and host website for the fast food companies, therefore reducing their worries. She added: “This means that the cost of providing this service is much lower than you will otherwise pay for it. And you will be able to reach a lot more people.” The Marketing Manager of Sweet Sensation, Yemi Yusuf, said the products came at the right time because cost-effective strategy is a key factor to driving increase in profit that will eventually sustain the business. “A lot of us here will be interested to see how we can use this opportunity. Most of us are familiar with the CUG product, but I personally tick the one that has to do with co-promotion, which I will like to know more about so that I can use it in marketing,” he said. LSO commenting on the Airtel business solutions, Jimoh Ademola, Manager, Lacuisine Fast Food, noted that fast food operators face many challenges, including high cost of operation, especially running on generator among other issues. Ademola said teleconferencing could be helpful to his company because it would make it easier for him to reach other branches located far away. Although, Nigeria is an attractive destination for QSRs and future consumer expenditure is underpinned by a range of key drivers, including higher monthly income levels resulting from GDP expansion, an increase in the minimum wage, and a shift in social class demographics, with the middle class (the business’ core target market) expected to increase to 35 per cent of the population in 2015 compared to 30 per cent in 2009, most investors consider the sector as a risk. Notwithstanding, experts are of the view that the deployment of technology to deepen market penetration, coupled with some kind of ownership dilution and adherence to corporate governance, among others, would help stem the slide in the fortunes of the sector.

THE NATION MONDAY, JULY 21, 2014

‘How rebels shot down Malaysian jet’

Govt signs N275m yearly PR deal with US firm Continued from page 1

al per trip,” the firm said. Additionally, the government will pay a percentage of the fees upfront. “It is our policy to invoice our clients a flat 4.50 per cent of monthly fees to cover these costs,” Levick said. Fees for other services, such as paid media, video production and web development, will be borne by the government in addition to the fees for Levick staff. “Actual long-distance or conference calling charges incurred on behalf of the client will be billed separately, at cost,” the firm demanded. The government will also bear third-party vendor expenses, such as private newswire, outsourced printing, copy jobs, and significant costs for postage and

Continued from page 1

Russian rebel-held Torez just two hours before crash Ukraine’s security agency, the SBU, has released recordings of intercepted phone calls, claiming they prove Malaysia Airlines flight MH17 was shot down by a group of Russianbacked Cossack militants Neither recording - which allegedly includes a Russian military intelligence officer - could be independently verified Laughing rebels filmed the plane as it crashed, gleefully bragging ‘that was a blast – look at the smoke!’ Is this the BUK missile system back home in Russia after shooting down flight MH17? A driver followed the military truck on a main road for

Continued on page 57

•The equipment covered up being taking on the two-hour journey across the border of Russia and Ukraine shortly after 8.45pm...on Saturday

Northern delegates take battle to kill conference report to National Assembly

HERE are plans to kill the final report of the National Conference. Northern delegates met at a highbrow hotel in Abuja at the weekend to ensure that the report does not see the light of day. The conference, which ended abruptly last week, is to review and adopt its report on August 4, preparatory for presentation to President Goodluck Jonathan. A former Senator, a woman, “is the arrow head” of the conferees who met and resolved to “seek the understanding” of senators and House of Representatives members from the North to scuttle the report. The senator, a source said, is “peeved that the South would gain some mileage if the report of the conference is implemented as proposed”. Part of the strategies adopted at the meeting, the source said, is to “aggressively pursue enlistment of support of Northern members of the National Assembly to scrutinise the report to ensure that portions considered to be against the interest of the North are blocked from being ratified.”

From Onyedi Ojiabor and Dele Anofi, Abuja

The meeting, said to have been held on Friday, reportedly lasted till the early Saturday. Delegates who attended the meeting were mandated to use the opportunity of the annual recess of the National Assembly to reach out to the lawmakers. Although the conference made some landmark resolutions, it failed to agree on derivation and revenue sharing formula. The conference advised the federal government to set up a technical committee to resolve the issues. Local government administration, state police, derivation principle, land tenure, state creation, pilgrimage and alleged new constitution almost broke the conference. As disagreement simmered, some Northern delegates were pointedly accused of working to break the conference. Northern delegates were par-

ticularly uncomfortable with the resolution to have local government administration transferred from the exclusive legislative list to the concurrent legislate list. They also bickered over the recommendation to empower states that desire it to create their own police. Part of their argument was that most Northern states cannot afford to fund state police. Some of the Northern delegates also expressed concerns over the resolution to create additional 18 states, with a special one for the southeast zone. The most contested conference report was the Devolution of Power report. Its committee was co-chaired by former Akwa Ibom Governor Obong Victor Attah and former Inspector General of Police Alhaji Ibrahim Coomasie. Coomasie, leader of the Arewa Consultative Forum (ACF), led Northern delegates to the conference. Most of the recommendations made by the Committee on Dev-

olution of Power were adopted by the conferees but derivation principle was contentious. To resolve the issue, the conference secretariat allowed time for mediation by leaders of the six geo-political zones which resolved that the derivation benchmark be raised to “not less than 18 percent”. The leaders also proposed that five per cent of the Consolidated revenue fund should be set aside for reconstruction of insurgency ravaged Northeast geopolitical zone, with a proviso that the fund be made open to every state where terrorists caused destruction, beginning with the Northeast. Northern delegates opposed the generalisation of the fund and insisted that the five per cent insurgency fund should be specifically Northeast, Northwest and Northcentral geo-political zones. Southeast and southwest delegates said the fund should take care of every state where terrorism had occurred.

al Leader Asiwaju Bola Tinubu and some prominent lawyers have asked lawmakers to ject the request. On the state of the military, the minister said: “So far so good, but in real terms and given the goals that we have set for ourselves as a nation, there is the need for more investment. No doubt about that. “Funding will forever remain an issue. I schooled in the U.S. Anywhere, funding is a problem in terms of the military. It is not peculiar to Nigeria alone. I recognise the fact that if you have a responsibility to somebody, the person must be equipped to carry out such responsibility. “The Federal Government has resolved that within the limited resources available, the military is properly kitted to deal with the challenges confronting the country for now and the future. “The president is committed to that and he has taken practical steps. As I speak to you today, some of the acquisition we are doing to beef up military capacity have not been done in the last 25 years. That, to me, is what progress is all about.” Speaking in Yenagoa, Obanikoro said: “It is not true that the military is not well motivated. We must recognise and appreciate the effort of President Good-

luck Jonathan since he came on board. “I can tell you that in the last 25 years, we have not made major acquisitions in terms of platforms for the Navy, amunition and equipment generally for the military. “It is Jonathan that has started doing that now and it is as a result of neglect that we are suffering today. But that we are also trying to overcome with this new acquisition. “There is no doubt that we have both men and women who can deliver under any situation and they are acclaimed worldwide to be among the best. If they can solve issues outside, why will they not be able to solve issues at home.” The pattern of Defence Budget in the last 25 years showed a sharp increase, but most of the funds reportedly went to personnel and overhead costs. This year’s budget has the highest allocation to Defence N968.127 billion out of total budget of N4.962 trillion. The capital budget has always been spent on buildings, uniforms, some ammunition and vehicle spares parts. It was learnt that there was a little improvement in 2012 when the Navy bought two offshore patrol vessels and six coastal patrol boats and some spares. It was gathered that in the same

year, the Air Force acquired 12 Augusta 109 helicopters and some uniforms, reactivated C130 and G222 Alpha Jets. A military source said: “The military budgets over the years were not meant for massive equipment. They were meant for administration, logistics,training and day-to-day running of the establishment. “Nobody envisaged a war of this magnitude. This matter should not be unnecessarily sensationalised or politicised. These are facts Nigerians should be made to know. The source spoke on the telephone and pleaded not to be quoted. In an article in 2012, which drew the ire of the Presidency, a former Minister of Federal Capital Territory, Mallam Nasir elRufai, gave an insight into the nation’s defence budget. He said: “Military spending the world over averages about 2.5 per cent of GDP, with the USA being the highest spender – about $700billion, which is about 5 per cent of GDP. In Africa, the leading military spender is Algeria, ranked 29th in the world, with 3.8 per cent of GDP, followed by Egypt (41st, 2.1 per cent), Angola (42nd, 4.2 per cent), and South Africa (43rd, 1.3 per cent). Nigeria is ranked 57th in the world then earmarking $1.724billion – about 0.9 per cent of our GDP on

defence. Even a smaller country like Morocco, ranked 48th with 3.4 per cent of GDP out-spends us! In contrast, countries at near state-of-war like Lebanon (58th, 4.1 per cent) and Sudan (56th, 4.1 per cent) are in our neighbourhood in terms of defence outlays. “Our current budget for defence has climbed slightly to just over 1 per cent of GDP.” From N1.2 billion in 1988, the defence budget moved to N968.127 billion in this year’s budget. The opposition All Progressives Congress (APC) yesterday urged the National Assembly not to give its go-ahead for the President to take the loan. It urged the government to account for the “missing” $20 billion oil money, saying “massive corruption and lack of accountability is behind the government request for loan”. To APC national leader Asiwaju Bola Ahmed Tinubu, “the loan is dubious”, “Nigerians must reject it,” he said. Lagos lawyer Femi Falana (SAN) urged the National Assembly to reject the President’s request, saying there was no justification for the loan. The activist recalled that between 2010 and 2013, over N3 trillion was budgeted for defence. “Under the Appropriation Bill signed into law on May 23, 20 per cent of the entire federal budget

Continued on page 57

Jonathan, Shettima meet over Boko Haram’s Damboa massacre •Military: we won’t allow hoisting of strange flags in any part of Nigeria

ORNO State Governor Kashim Shettima met with President Goodluck Jonathan in Abuja on Friday, pleading for assistance to stop the rampaging Boko Haram insurgents. More than 300 people, including a Lieutenant-Colonel, have been killed by the insurgents in the last three weeks in Damboa. The daring insurgents have also served notices of attacks on

From Yusuf Alli, Abuja

nine other towns. But the military yesterday stepped up activities against the sect and ordered troops to rout out Boko Haram from Damboa. The Defence Headquarters said it would not allow any group to annex any part of Nigeria or hoist a strange flag. According to sources, Shettima Continued on page 57

Lawmakers split over Al-Makura

AWMAKERS are divided over the plan to impeach Nasarawa Gover-

nor Umaru Tanko Al-Makura. The Assembly has broken into three camps – All Progressives Congress(APC) and two groups in the Peoples Democratic Party (PDP). Besides, there are moves to douse the fire, with eight top traditional rulers and some eminent persons pleading with some of the 20 lawmakers to take it easy. A former Head of State Gen. Muhammadu Buhari, APC governors and other leaders will on Wednesday hold a solidarity ral-

Boko Haram: Outrage over Jonathan’s $1b loan request Continued from page 1

handling. Levick is to begin work upon receipt of advance quarterly retainer and interest of 1.5 per cent will be charged on all balances outstanding over 30 days. Under scope of services, Levick is to provide government affairs and communications counsel with the primary objective of changing the international and local media narrative related to: the Government of Nigeria’s efforts to find and safely return the more than 200 girls abducted by the terrorist organisation, Boko Haram, in Chibok; assisting the government’s efforts to mobilise international support in fighting Boko Haram as part of the greater global war on terror; and communicating the Presi-

i.e the sum of N968.127 billion out of N4.962 trillion, was earmarked for defence,” Falana said. He advised the Senate to find out what happened to the defence budget in the middle of the year to warrant a supplementary budget of N160 billion. Other senior lawyers urged the National Assembly to scrutinise the request. Joseph Nwobike and Sebastine Hon (both Senior Advocates of Nigeria) said, the legislature should monitor the application of the funds – if it gives the goahead. Nwobike said in view of the growing insecurity in the country, no amount was too much to spend on a secured environment for the people. Hon urged the National Assembly to extract, undertaking from the President to assure the country that the money would actually be spent for the purpose for which it was being sought. Nwobike said:”With the growing security challenges in the country; insurgency in the Northeast, as well as oil theft and sea piracy and other maritime crimes in the southern part of the country, I think there is a need for the government to acquire sophisticated military hardware and training for our military to be able to combat these crimes. “We should not ground in the argument about whether money

From Yusuf Alli, Abuja

ly for Al-Makura in Lafia. The rally, which was initially fixed for today, was shifted last night because of “logistics”. The division in the Assembly followed mass protest and intervention by some of the state’s prominent indigenes. The three groups are APC (four members); pro-impeachment PDP (10) and amenable PDP members(10). A highly-placed source said: “The intervention of some wellmeaning leaders in the state is beginning to yield dividends because some of the lawmakers are responding to overtures to drop the impeachment process. “The pressure is so overwhelming on some members that they are beginning to think of the fortunes of the PDP in 2015 if they remain adamant on impeachment. “Some of the mediators met with the governor and Assembly members separately in Abuja. The concern is that Nasarawa has many ethnic groups and any crisis can lead to a guerrilla warfare in the state. “Also, there is a sharp disagreement among the 20 PDP members of the Assembly on who gets what after the impeachment. Some of the lawmakers rejected certain offers.” For instance, said the source, some of the lawmakers are uncomfortable with the Deputy Governor, Dameshi Luka, taking over from Al-Makura. They said the “Adamawa option” in which the deputy governor resigned would have been better. “Again, some stalwarts of the Peoples Democratic Party(PDP) are opposed to the impeachment of the governor. The process is attracting much of ethnic and religious colouration,” the source added. The eight traditional rulers, led by the Emir of Lafia, Dr. Mustapha Agwai, have opened Continued on page 57

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THE NATION MONDAY JULY 21, 2014

NEWS FED GOVT’S $1B LOAN REQUEST There are options to loan, says Gbajabiamila From Victor Oluwasegun, Abuja

OUSE of Representatives Minority Leader Femi Gbajabiamila has said there is no need for the Federal Government to take the proposed $1 billion (about N165 billion) loan to equip the army. He urged the government to explore a trade-by-barter option to equip and train the army in its fight against insurgency. In a statement yesterday in Abuja by his Research and Media aide, Wasiu Olanrewaju-Smart, the lawmaker faulted President Goodluck Jonathan’s penchant for loans, despite the other options, such as the Sovereign Wealth Fund, reserve and excess oil revenue. Gbajabiamila said: “The Federal Government, by setting an illegal benchmark, has been creaming off about $30 per barrel of our crude oil sales, which it puts in an illegal Excess Crude Account. If it insists on cash, it should reach into that illegal account. “Again, it also set up the Sovereign Wealth Fund, a component of which it described as a future generation account. Well, Madam (Finance) Minister, the Chibok girls represent the future generation, go into that account, if you must. (That’s) Assuming the National Assembly will allow that. But to incur a further $1 billion loan at whatever interest rate, that is one loan too many for our future generation to pay off, and the answer is a capital No! “The request for $1 billion loan by the President, after N3 trillion allocated to Defence in three years with nothing to show for it, is evidence that the President and his advisers regard Nigerians as imbeciles (which they are not). For the sake of clarity, an imbecile is defined as a blockhead or a dunce.” The lawmaker described the loan as a “perfidious request”. He urged his colleagues in the National Assembly to turn down the request and asked the Federal Government to exchange oil for military hardware, as other needy countries have done in the past, if indeed Nigeria has weak military equipment, after comparing the previous budgets for Defence. Gbajabiamila said: “I do not think any more cash should pass through government at this time. If indeed more money is needed for the training of our men and women in uniform, which I doubt, then we should resort to the time-tested trade-by-barter. This means of commodity exchange continues between countries all over. We can exchange oil for arms if need be. “The AL YAMAMAH arms deal between the Saudis and the United Kingdom (UK), wherein a large amount of British military hardware was sold to the Saudi Arabian government for 600,000 barrels of crude oil a day, comes to mind. So does the ‘oil for arms’ deal between China and Venezuela and the deal struck by the United States (U.S) in 2011, when over 80 F15 fighter jets were sold to the Royal Saudi Air Force. The deal included training, logistics and maintenance.” The lawmaker, who is also the All Progressives Congress (APC) Leader in the House, listed some posers on which National Assembly members should ruminate before acting on President Jonathan’s request. He said: “Firstly, a comprehensive audit of what has happened to all the money allocated by the National Assembly to Defence in the last three years must be done immediately. This must be a condition precedent before a kobo is ever approved again. “Secondly, we have the MTEF, which laid out government expenditure framework for the next three years. We must stack this alongside this recent request and see if there is any place for such...”

APC: massive corruption behind govt’s request for loan

HE All Progressives Congress (APC) has urged the National Assembly to scrutinise President Goodluck Jonathan’s request for $1 billion (about N165 billion) loan to fight the insurgent group, Boko Haram. The party said the administration has no business borrowing money, if it had accounted for $20 billion in oil funds or checked the official stealing of 300,000 barrels of oil per day. In a statement yesterday in Lagos by its National Publicity Secretary, Alhaji Lai Mohammed, the party noted that even if the missing oil fund was only between $10 billion and $12 billion, as admitted by the Federal Government, the amount represents over 10 times the fund the government is now seeking to borrow under conditions that are yet unknown. It described as disingenuous and sheer blackmail the argument that the money is for national security or that it would facilitate the release of the over 200 Chibok schoolgirls who were abducted about 100 days ago. APC said: “That argument is hollow. In the first instance, trillions of naira have been allocated yearly - in the past few years - for security and defence. Yet, the fight against the insurgents rages on with deadly consequences. Secondly, the only reason the schoolgirls have remained in captivity is the sheer cluelessness and incompetence on the part of the Jonath-

By Olamilekan Andu

an administration, which waited for 19 days before even admitting that the girls were kidnapped in the first instance. “Therefore, putting more money in the hands of an incompetent and massively corrupt administration can only encourage more incompetence and corruption. That is why we are asking the National Assembly to put national interest above all other considerations by taking a dispassionate, non-partisan look at the President’s request. “What we are saying is that the National Assembly must summon security and military chiefs to explain how the huge funds allocated to the Security sector in the past were spent, before more funds can be pumped into the sector. They must be asked what happened to the military equipment said to have been procured in recent years. “They must also inquire from the administration why it should be borrowing $1 billion when it has not accounted for the missing $20 billion oil money, plug the daily stealing of 300,000 barrel per day (bpd) and unravel the massive fraud that has hallmarked the tenure of this administration (pension fraud, oil subsidy scam, Malabu fraud, among others). If after all the scrutiny, the National Assembly still feels it must approve

the loan, so be it. But it (National Assembly) must know that its own integrity and credibility are on the line.” The party reminded Nigerians that the civil war, which lasted three years, was prosecuted by the government without resorting to any external borrowing, due to competent and transparent management of the nation’s economy. It added: “On the contrary, trillions of naira have been pumped into the Boko Haram war in the past five years, and Nigerians still do not have any indication of how soon the insurgency will end or what happened to the huge allocated funds. Instead, what the tax payers are being asked to do is to shell out more funds to finance the incompetence and corruption of a reckless administration, whose officials fly around the world in jets that burn billions of naira but cannot allow them to be probed by the National Assembly.” APC wondered why the Jonathan administration, which roundly pilloried Borno State Governor Kashim Shettima, when he alerted Nigerians to the need to adequately equip and motivate our men and women in uniform, has now turned round to admit that the military needs modern hardware to fight insurgency. The party aligned with those who cautioned the National Assembly from giving a blank cheque to the administration, due to its inability to

•Mohammed

account for the past budgetary allocations for security and defence, as well as its sheer cluelessness and palpable incompetence. APC said: “This year alone, 20 per cent of the total national budget of N4.962 trillion, which is about N968.127 billion, was allocated to Defence. How much of that money has been released so far and how have the funds been spent? What about the equally huge allocations in the previous years? “With the Jonathan administration allegedly spending or setting aside an average of N2 billion to impeach each governor of APC states, and the Peoples Democratic Party (PDP) administration using the common wealth to bribe voters in a desperate bid to win elections at all cost, approving the $1 billion loan may amount to giving more ammunition to the administration to stifle the nation’s democracy or even threaten the very existence of the country.”

Loan meant to buy casket for democracy, says Tinubu By Olamilekan Andu

•Tinubu

LL Progressives Congress (APC) National Leader Asiwaju Bola Tinubu has said President Goodluck Jonathan’s request for $1 billion (about N165 billion) is not for fighting terrorism, as the government wants everyone to believe. The frontline politician said the loan would be spent to wage war against opposition and scuttle democracy. He noted that the administration would not be transparent in expending the loan, adding that its records showed a deep-rooted mismanagement of the nation’s resources and abuses. In a statement yesterday in Lagos, Tinubu said: “The news that President Jonathan has requested the National Assembly to approve his request to seek a loan of one billion dollars, purportedly to battle Boko Haram terrorism, should lead any person with sober conscience to fall out of their chair. “If only our spendthrift President attacked terrorism with the daring by which he assaults democracy and our common sense, there would be no need for any expenditure. Boko Haram would have been vanquished many yesterdays ago. “Yet, Boko Haram continues stalking us because the President would rather play tricks than govern as a statesman. The bottom line is that the only thing remotely military about this massive request is that it serves to camouflage a sinister aim. The man seeks to bolster the Peoples Democratic Party (PDP) electoral war chest on the backs of the victims of terror and

on the heaviness of our collective fear of the terrorist’s threat. In cloaking the request as part of the battle against terror, he believes no one will have the courage to object and this will enable him to get away with what should not be gotten away. “He is not asking for help in tackling terror. He is asking us to turn a blind eye and empty mind to an abject heist. This is as cynical a measure as a national leader has ever undertaken during the time of national calamity. He demeans his office and the nation in this time of crisis. Of all things, he now subordinates the gravest national threat we have faced in four decades to his desire to hold on to office. “Yet, do we know precisely what the loan is for? No. What will they purchase that has already not been set to purchase? No one knows. Again, by saying this is to fight terror, we are supposed to act blind, deaf and dumb or rush to congratulate him for his new found vigour. At best, he appears as a Johnny-come-lately to the fight against Boko Haram. This man has been commander-in-chief for over three years. Where has he been? He has been ensconced in the cosy, safe confines of Aso Villa, giving less than a care about the ravaging of northern Nigeria. “It was only upon hiring a foreign Public Relations (PR) firm did he begin to act as if Boko Haram and the Chibok crisis exist. Before that, he was sleepwalking in the midst of the storm around us. “I fear hired handlers may have told him to do this thing because it will help him get elected and will make it appear to the outside world that he is doing something. Johnnycome-lately is also now on stage, dancing and performing in dual capacity, as Johnny do-the-wrong-thing and Johnny-wrong-step. “Hasn’t he presented the National

Assembly defence bills and budgets totalling over three trillion naira in the past three years? Boko Haram has been terrorising throughout this period. Tell me, what has changed, what is so different now that he must stack another $1 billion atop the funds already given him to defend and protect the nation? The answer is nothing, except that elections are approaching. “Thus, we are left with two alternatives. In the past three years, he has been so bereft of conscience and derelict in duty that he presented defence budgets, which are woefully inadequate to face the challenge we all could plainly see before us. Alternatively, he has been so bereft of conscience and derelict in duty that he has squandered the money given him in the worst of ways, giving contracts to cronies and leaving our frontline soldiers without boots or bullets. “Now, he asks us to applaud his request for $1 billion loan. He and his claque have siphoned money from the states to deposit in the illegal Excess Crude Account/Sovereign Wealth Fund. The government said it did this unconstitutional confiscation of state and local funds to save for a ‘rainy day’. Well, terror is reigning over and down on us from all sides. The blood of the innocent rains on our national conscience. “If those who control this money do not think we are not now in the hands of calamity, then there will be no other earthly occurrence that may ply their hands into releasing the people’s money for the people’s security and well-being. In short, there is no need for the loan. If the funds are truly needed for our collective safety, Nigeria has the money. “But Jonathan seeks to borrow money because of his foreign handlers. They have told him, if he borrows from abroad and spends that same money aboard, he will win the favour of foreign lenders, arms contractors and assorted business ventures. These

people will, in turn, pressure their governments to love Jonathan where they now loathe him and his incompetent handling of high matters of state. As such, he can then ramrod his way through the 2105 elections and not risk international reaction. This is the plan. This loan is not intended to defend Nigeria any more than a pig is built for aerial flight. It is intended to launder his image and buy foreign favour that he may conduct his coming electoral misdeed in international silence. “In reality, this loan will be used to buy the election and pay for the intimidation of the opposition and the electorate. Most of it will go into the PDP coffers. The portion which finds its way to the Armed Forces and security agencies will be to purchase their services in suppressing all who are not PDP. The loan will not be to fight terrorism. It will be to fight the legitimate dissent. “Thus, the President’s request should be rejected categorically, for he seeks not to use the money to construct a safe haven for the people. He seeks the money to build a casket for democracy. “I want to rid this nation of Boko Haram but I also am not prepared to be fooled by a trickster and his tricks on this important point. Given his track record of corrupt expenditure, the burden of proof lies with Jonathan. If more money is truly needed to tackle Boko Haram, I have no qualms with it. Before we get there, the President must give the nation a full accounting of what happened with the vast funds already allocated. If we need more funds, let it come from the illegal funds the government now controls. “Moreover, if money is needed, the National Assembly must institute a special fund and exercise special control and monitoring over the sum. All expenditure must be audited by impartial experts so that the funds are used solely for the battle against Boko Haram and not for partisan objectives.”

THE NATION MONDAY JULY 21, 2014

NEWS ‘179,000 subscribers successfully ported’

Dangote donates N30b By Olamilekan Andu

From Vincent Ikuomola, Abuja

ABOUT 179,000 subscribers have successfully ported since the introduction of the Mobile Number Portability scheme in the country, the Nigerian Communications Commission (NCC) has said. The scheme, which was introduced in April, last year, is aimed at enabling telecom subscribers choose the networks that can provide them with the most effective services. NCC’s Director of Public Affairs Tony Ojobo gave the figure at the weekend at the prizegiving ceremony of the agency’s national essay competition, titled: The Effect of Mobile Number Portability on Telecom Service and Usage in Nigeria. Ojobo said the scheme had deepened competition among service providers and led to innovative services. The spokesman said the scheme also enthroned the consumer as the king in the marketplace.

Nigeria loses 415MW of electricity From John Ofikhenua, Abuja

POWER supply will again drop by 415 megawatts (MW), following the temporary shutdown of Afam Power plant in Rivers State, it has been learnt. The power drop is as a result of routine maintenance on the plant’s feeder gas station, Okoloma Gas Plant. The Transmission Company of Nigeria (TCN), in a statement in Abuja, said power would be rationed among electricity consumers across the country throughout the 10 days the maintenance is expected to last. The TCN said the temporary closure “will trigger a drop in the quantity of power available for transmission to Distribution companies (discos), which will result in nationwide load-shedding for 10 days, from 6am, July 20 to July 30, 2014”.

•General Secretary, Bible Society of Nigeria (BSN), Rev Dare Ajiboye (middle) with Assistant General Secretary, Publishing, Pastor Victor Oluwadamilare (left) and Deputy Manager, Public Relations, Bengamin Mordi, at the launch of a book, titled: Conduct, Not Condom, published by BSN in Lagos.

Deploying soldiers for elections is unconstitutional, says Falana

AGOS lawyer Mr. Femi Falana (SAN) has said it is illegal and ultra vires for the President to deploy armed forces to maintain law and order during elections. In a statement yesterday in Lagos, titled, Illegal Involvement of Soldiers in Election Duties, Falana said Sections 215 and 217 of the Constitution stipulates that the power of the President to deploy Armed Forces for internal security is limited to the suppression of insurrection, including insurgency and aiding the police to restore order when it has broken down. The frontline lawyer said instead of using soldiers during elections, the President should strengthen the police to ensure internal security while the Armed Forces should be restricted to defend the nation’s territorial integrity. He stressed that under the current constitution, the President lacks the power to involve soldiers in maintaining law and order during elections. Falana said: “Even in the Northeast, a state of emergency had to be declared by the

By Adebisi Onanuga

President to justify the deployment of the Armed Forces as part of the extraordinary measures he was required to take to restore law and order pursuant to Section 305 of the Constitution. Even then, the President had to seek and obtain the approval of the National Assembly for the deployment for a specific period of time.” The lawyer described as “misleading apologia for the militarisation of the recent governorship election in Ekiti State” an article by Bashorun Akin Osuntokun on the “militarisation and other fallacies” published in his weekly column in ThisDay of July 11. According to him, Osuntokun, in hailing the soldiers for displaying professionalism, “was curiously silent on the infringement of the fundamental right of Governor Rotimi Amaechi’s freedom of movement, which occurred at Iju-Itagbolu in Ondo State, contrary to Section 41 of the Con-

stitution”. He added: “The governor, who was billed to attend a political rally at Ado-Ekiti on June 19, 2014, was crudely turned back by the soldiers who claimed that they were acting on ‘orders from above’. “Mr. Osuntokun was equally silent on the illegal curfew imposed on Ekiti State by the army. Or, was any curfew declared by the relevant authorities that was not announced? A client, Mr. Bayo Fajimi, who was going home from Akure, Ondo State (his place of residence), was disenfranchised as he was prevented by the soldiers from entering Ekiti State at 6.30pm on June 20 because of the illegal curfew! Is the Bashorun not aware that the soldiers subjected every hotel in Ado-Ekiti to a search without warrant between 10pm and 2am for the sole purpose of ejecting all those who could not give ‘satisfactory’ explanation of their business in Ekiti State? Yet, while all ‘illegal aliens’, like

Governor Amaechi and others suspected to be All Progressives Congress (APC) members were harassed and expelled from the state by the army, some non-indigenes, who are chieftains of the Peoples Democratic Party (PDP), including two serving ministers and an influential thug from Anambra State, were allowed to ‘monitor’ the election. Indeed, they were fully protected by the armed Gendarmes. “Even though the Bashorun admitted that he was ‘struck and inconvenienced by the rigour and saturation of the security blanket’ on account of repeated security check points, he dismissed the complaints of the militarisation of the election. As far as he is concerned, the United States Embassy had endorsed the militarisation by issuing a statement to the effect that ‘the security forces collaborated effectively and provided a safe and secure environment free of major incidents’...”

Atiku to PDP: stop demonising opposition

ORMER Vice-President Atiku Abubakar has warned the Peoples Democratic Party (PDP) administration against demonising the All Progressives Congress (APC) before Nigerians. In a statement yesterday in Abuja, Atiku described as dangerous the attempts by the PDP-led government to polarise the country along faulty lines just to score cheap political points. The former vice-president faulted the escapist tactics of the ruling party, adding that it was shocking that the ruling party could divert the attention of Nigerians from its ineptitude and apathetic posture to corruption and insecurity to waging a war against the opposition. Reacting to a sponsored report in a weekly newspaper, alleging that a former Russian spy had linked the APC to terrorists and extremists, Atiku said the sponsored allegations by the PDP administration would not help the country. According to him, no responsible government

Don’t torment opposition governors, NLC tells Jonathan

MPEACHMENT and threats of impeachment of All Progressives Congress (APC) governors is suspicious, the Nigeria Labour Congress (NLC) National Vice-President Isa Aremu has said. The labour leader said the sanctity of tenure is needed to sustain democracy. Aremu, who was a member of the National Conference, spoke yesterday in Ilorin, the Kwara State capital, on the state’s radio programme, The Platform. The labour leader urged President Goodluck Jonathan not to use his office to torment governors in the opposition. He said: “What is worrisome to me is that of Nasarawa. The impeachment notice was served just at the time the President, who comes from another party, was visiting the state. I mean we should not give it the impression that the President is using his office to torment a governor in an opposition state. I don’t think this is the intention of the President. From Gbade Ogunwale, Assistant Editor, Abuja

would seek to create divisions, suspicion and animosity among the citizenry by linking opposition leaders with terrorist activities or accusing them of harbouring ex-

From Adekunle Jimoh, Ilorin

“What I am saying is, even the timing alone makes it to be suspicious. The President is an elected President. Currently, he is our President. He has the right to relate with elected governors but he cannot relate with you when, as he is arriving at the state, the governor’s job is being threatened. “I want President Jonathan to use his office to re-direct our political discourse along the line of statesmanship. He has done it before and I think he can do it before. Several times, he was threatened with impeachment and Nigerians stood up to say no. “I am not a fan of some of these governors. Some of them are known for recklessness and a lot of executive impunity. But a good number of them engage in self-help for themselves rather than public service for their people. Of course, there are some governors who have also performed, who endeared themselves to the electorate in their states.”

tremists. Atiku said it was regrettable that the PDP, through its National Publicity Secretary, Olisa Metuh, officially and publicly labelled the APC the “Islamic Brotherhood Party of Nigeria” and the “Janjaweed Party”.

The former vice-president said the names were borrowed from abroad and did not exist in Nigeria. He said the latest publication about the purported former Russian spy was a continuation of the PDP’s campaign of calumny against the

opposition and its leaders to divert attention from the epic failures of the ruling party to deliver the goods. Atiku was dismayed by PDP administration’s tactics to drive a wedge between the people by using a religious divide-and-rule blackmail to seek re-election in 2015. The former vice-president stressed that the greatest challenges facing Nigeria today are insecurity, hopelessness, hunger, unemployment, disease, fear of the future and poverty. He said: “The APC is a party for all Nigerians, irrespective of their religious, ethnic or regional identities. Let no one get confused. The APC is the party to stop the looting of the treasury. “We will thoroughly investigate and uncover whatever is missing of the alleged $50 billion stolen from the sale of crude oil. We are going to stop the governmentbacked theft of crude oil, which swings between the daily averages of 100,000 to 300,000 barrels a day. APC is the party to create jobs and end joblessness.”

FRICA’S richest person and the continent’s top donor, Alhaji Aliko Dangote, has said he is increasing his philanthropic gestures in Africa, with charity beginning from his home country, Nigeria. A statement by his group of companies, which has made several donations across Africa, said: “Africans must begin to take responsibilities by shaping the condition of its people.” The statement said the Dangote Group, through its foundation, spent about N30 billion on humanitarian gestures in two years. “This is including the Dangote Academy, worth about a N1 billion, through which manpower is developed across various disciplines,” it said. Last month, Dangote Cement in Ibese, Ogun State, through the group’s foundation, gave scholarship to 50 students of Yewa (Egbado) origin in various secondary and tertiary institutions. The group also donated $500,000 to victims of explosion in Republic of Congo. The Dangote Foundation contributed $2 million (about N330 million) to flood victims in Pakistan and N120 million to cushion the effect of famine in Niger Republic. Two years ago, the company donated N2.5 billion to flood victims in Nigeria, the single highest donation by a private body in the nation’s history. It also donated N430 million to flood victims, unemployed youths and women in Kogi State in the same year. Three years ago, the Dangote Foundation donated about N1 billion for the economic empowerment of women in Kano State. Recently, the foundation donated N540 million to vulnerable women, following insurgency in the Northeast. The group spent N1 billion on the rehabilitation of some Nigerian universities, as part of its contribution to the Education sector.

LASAA unveils outdoor magazine

HE Lagos State Signage and Advertisement Agency (LASAA) has unveiled Outdoorable magazine, its trade publication. The magazine is designed to provide information on the agency’s initiatives and happenings in the Outdoor Advertising sector. Its Managing Director George Noah said: “The goal of Outdoorable is to provide a platform for accessing information about LASAA and on the latest trends in the outdoor advertising industry, new initiatives and campaigns breaking forth, ideas and institutional development, fundamentals of outdoor advertising practice as well as promote a ‘one corporate culture’ in the industry.” The glossy publication will be published bi-annually. Noah explained that Outdoorable “will fully represent the Nigerian outdoor advertising industry while reaching a mass audience and readership that cuts across the borders of Nigeria and extends to the rest of Africa and beyond”.

THE NATION MONDAY, JULY 21, 2014

NEWS Ajimobi to establish community radio in Oyo

Ondo lawmaker, contractor trade words over attack

ONFUSION reigned at the Ondo State House of Assembly complex, Igbatoro Road, Akure, the Ondo State capital, at the weekend when a contractor handling projects at the complex, Mr Obayoriju Abass, was assaulted by some youths suspected to be political thugs loyal to one of the lawmakers. The youths were said to have stormed an office in the complex during a meeting summoned by the Assembly Tenders Committee chaired by the lawmaker representing Owo Constituency 1, Ayo Arowele. Sources said the contractor’s offence was that he argued with members of the committee during the meeting. Arowele’s clothes were torn to shreds after he was pushed out of the meeting. It was gathered that Obayoriju’s attack may not be unconnected with his interest in contesting in 2015 the position Arowele is occupying. Obayoriju, who spoke with reporters, alleged that he was assaulted by Arowele at the meeting.

From Bode Durojaiye, Oyo

YO State Governor Abiola Ajimobi has said his administration will establish a radio station in Oyo town. Ajimobi spoke at the weekend during his visit to the town. The governor was received by the Alaafin of Oyo, Oba Lamidi Adeyemi. The governor and the Alaafin later proceeded to the Ansar-UdDeen Central Mosque for the Jumat prayer. In his sermon, the Chief Imam, Alhaji Mukail Mobolaji, eulogised the governor for his transformation agenda. Ajimobi said: ’’Alaafin remains not only pillar of my success, the paramount ruler’s un-relentless, sincere and rare support for me and my administration has been a source of inspiration and stimulant in governance.’’ He said his administration would establish Atiba radio station and rehabilitate the Erelu Water Works. The Alaafin described Ajimobi as ‘’a visionary, listening, God-fearing and humane governor who meant well for the people of the state.’’

From Damisi Ojo, Akure

He said|: “I went to a meeting summoned by the tender’s committee but I was surprised that despite the fact that I answered the questions the committee asked me correctly, I was asked to shut up by Arowele and in the process of trying to defend myself, he slapped me. “He later instructed his thugs to walk me out of the meeting. One of his thugs tore my clothes and slapped me repeatedly. “I think what Arowele and his boys did to me is something that should not be allowed to go without reporting to the appropriate quarters. Such attack is barbaric and uncalled for.” Obayoriju, who has reported the matter to the police, threatened to sue the lawmaker, saying: “I will not hesitate to drag Arowele to court because what he did to me is primitive.” He also called on the police to investigate the matter. Arowele denied the allegation, describing it as a cookedup story designed to dent his image. He added that there was no truth in the allegation levelled against him.

Ondo riverine residents to benefit from NDDC health scheme From Damisi Ojo,Akure

•Obayoriju

He said: “We asked him some questions pertaining to the jobs he had handled in the Assembly and instead of ad-

dressing the issue, he insulted committee members at the meeting. I never assaulted him in any form.”

‘Election petition not to distract Fayose’

KITI State Commissioner for Integration and Inter-governmental Affairs Funminiyi Afuye has said the decision of the All Progressives Congress (APC) to petition the elections tribunal in respect of the June 21 election was not to distract the governorelect, Mr. Ayodele Fayose. Afuye said the party’s intention was to prove the extreme possibility of having rigged the election using technologies known to have been employed

From Sulaiman Salawudeen, Ado-Ekiti

in some advanced climes to perpetrate electoral fraud. He spoke in Ikere-Ekiti at the weekend in an interview with reporters during the referendum held by the government on the creation of new Local Council Development Areas (LCDAs). Afuye said despite the loss of the election, the Governor Kayode Fayemi-led administration remained a blessing to the

people. He said: “People would have to believe that nothing is impossible with technology. There are people who defraud through the use of Automated Teller Machine (ATM) without the owner knowing about it. “If this could happen and many other reported cases of cyber crime, we cannot rule the possibility of photo chromic and thermo chromic rigging in the June 21 governorship election.

“Apart from this, the system had been used in advanced climes to rig election and it might be a new invention in Nigeria, which our party would have to expose”. He added that APC would do everything possible to maintain a robust opposition. “We will constructively engage him on issues and this will be based on the programmes he has for the people of this state,” he said. .

Ibadan PDP governorship aspirants to pick consensus candidate

EOPLES Democratic Party (PDP) governorship aspirant of Ibadan origin agreed yesterday to present a consensus candidate. They met in Ibadan, the state capital at the residence of Elder Wole Oyelese. At the meeting were Oyelese, Alhaji Hazeem Gbolarumi, Prof. Taoheed Adedoja, Prof. Soji Adejumo, Sen. Teslim Folarin, Seyi Makinde and Dr. Azeez Adeduntan. A statement by the aspirants reads: “ We deliberated on the political situation in Oyo State, especially as it relates to our great party, the PDP and resolved as follows: “That we unanimously agreed to work together as a team to ensure victory for

•Akala: they’re not my match From Bisi Oladele, Ibadan

our party in 2015 elections and deliver Oyo State for President Goodluck Ebele Jonathan’s reelection. “That given the political reality on ground, the PDP candidate, who by the grace of Almighty God will be the next governor of Oyo State, must come from Ibadan land. “That the body takes cognizance of the importance and political interest of other zones and resolved to work assiduously with them to achieve victory for our great party at all levels. “That we appreciate the patience of our teeming and loyal supporters and indeed

the good people of Oyo state for enduring all the inhuman treatments inflicted on them by the current APC administration and we assure them of a responsible and responsive government as from May 29 2015 “That we appeal to our teeming and loyal supporters of the party to work together and for those who have defected from the party to return into the fold for a collective victory.” Ibadan votes accounted for the majority of votes in previous elections. The decision, said analysts, would affect the chances of former Governor Adebayo Alao-Akala, who is seeking to return to power.

Oyo Speaker: no plan to impeach governor

YO State House of Assembly Speaker Monsurat Sunmonu has denied reports that some members of the Assembly planned to impeach Governor Abiola Ajimobi. Sunmonu, who spoke with our correspondent on telephone yesterday, said rather than promoting unfounded “antiprogress” reports, Nigerians should be praying for the Assembly for working hard to achieve peace and prosperity of the state in

From Bisi Oladele, Ibadan

the last three years. The Speaker said at no time did members of the Assembly meet to discuss the alleged impeachment. “Instead of believing these lies, the good people of Nigeria should be praying for us to continue to work for the peace and progress of Oyo State. We have been discharging our duties by the grace of God and we believe God to help us till the end,” she said.

•Alao-Akala

Alao-Akala said he would defeat the Ibadan aspirants at the primaries. He added that Alao-Akala said Ibadan is only one of the towns in Oyo State, pointing out that every indigene has the right to contest for any position. According to him, Ibadan has 11 of the state’s 33 local government areas. He said candidates would need votes across all the councils to win. “I don’t care. Let all of them choose a candidate that will face me in the primaries. I have been governor before and I will be again,” AlaoAkala said.

BOUT 5,000 people in the riverine area of Ondo State are to benefit from the Niger Delta Development Commission (NDDC) free health programme. The state’s representative on the Governing Board of NDDC, Mr Amuwa Benson, spoke with reporters in Akure, the state capital, at the weekend. He said the programme would kick-off before the end of this month. Amuwa said Igbekebo and Zion-Pepe have been chosen as centres for the programme. He said the exercise was part of the commission’s responsibility to the oil-producing communities. Amuwa said: “It is responsibility of the commission to bring qualitative health services to the doorstep of the people in the mandate area and that is why the commission has chosen Igbekebo and Zion-Pepe as meeting points for the programme. Our target covers those with minor and severe ailments because health is wealth”.

Oyo council chief to would-be voters: protect your cards •‘PDP, others jittery over APC’ From Tayo Johnson, Ibadan

HE Caretaker Chairman of Akinyele Local Government Area of Oyo State, Ope Salami, has urged the people to protect their voter’s cards. He was at the weekend addressing All Progressives Congress (APC) members at Arulogun, Ibadan, the Oyo State capital. Salami said:” We have received news that some opposition parties in this state have gone to bring money from Abuja to buy your voter’s card from you by pretending they want to give you loan. Please reject them and ensure that your exercise your right by voting.” Salami, who pledged the support of his local government for Ajimobi’s re-election, said: “Don’t sell your voter’s cards to anybody because the oppositions are very desperate to buy your voter’s cards to rig the election in 2015. Don’t use your voter’s cards to borrow money or take a loan from any politician. If you do, your are selling out your future to the termites that are bent on eating up the future of your children. “When INEC begins the voter’s registration soonest, please all of you must ensure that you register to exercise your franchise. The card must be kept safely until the day of the election. “The peace we are experiencing in this state during Senator Abiola Ajimobi’s regime is unique in the history of this state. Over the last three years in office, he has laid a solid foundation and for continuity purpose, we all need to support him to complete all this projects.” Also at the weekend, the Caretaker Chairman of Ibadan North East Local Government, Mr.Ladi Oluokun said the opposition parties in the Southwest have become jittery about the APC’s rising profile. Oluokun spoke with reporters in Ibadan shortly after a meeting with his party leaders in the local government. He attributed the defeat of Dr Kayode Fayemi in Ekiti State to militarization. Oluokun said Ajimobi’s achievements were enough to guarantee his re-election. The council chief said: “This man (Ajimobi), on assumption of office, put an end to brigandage and violence from members of the National Union of Road Transport Workers (NURTW) who held the state to ransom for years and massacred many innocent people. Residents can now sleep with their two eyes closed unlike the period when the Peoples Democratic Party (PDP) government took sides with a faction of NURTW. May we not experience violence again in this state.”

Lawmaker hails tree-planting initiative By Bowale Odukale

HE lawmaker representing Eti-Osa Constituency 2 at the Lagos State House of Assembly, Gbolahan Yishawu, has said praised Lagosians for embracing the tree-planting initiative. He spoke at the 7th edition of Tree Planning Campaign themed “Life is Better with Trees” at Eti Osa Local Government Area. Yishawu said: “Environment is everything that is why the regeneration of the environment is a crucial component of our government. For the past 7 years, we have come together once a year for the tree planting exercise because it has proven that the quality of our health largely depends on the number of trees around us. “It is, therefore, expedient that we put in our best efforts to rehabilitate the environment, trees are known to make a huge impact in the fight against environmental problems including global warming” “This exercise has generated over 75,168 employment opportunities for horticulturists, pruners, gardeners, welders etc all of who help to keep the trees alive. Our target was to plant one million tree in ten years, and have planted over 5 million across Lagos.”

THE NATION MONDAY JULY 21, 2014

NEWS OSUN 2014 SDP seeks probe of members’ kidnap

•Osun State Governor Rauf Aregbesola (left) addressing the Association of Ondo State Indigenes residing in Osun during his Adoption for Second Term in Office at Nelson Mandela Freedom Park, Osogbo...last Saturday.INSET: Aregbesola (left) and the Senator representing Ondo North Senatorial District, Ajayi Borrofice, during the event.

Pedro, senator, others back Aregbesola’s re-election

SUN State Governor Rauf Aregbesola’s re-election bid got more support at the weekend from notable individuals and groups. One of them and former Lagos State Deputy Governor Otunba Femi Pedro said the All Progressives Congress (APC) candidate would win by a landslide on August 9. Pedro, who is also an APC chieftain, spoke in a statement in Lagos yesterday. He said the machinations by the Peoples Democratic Party (PDP) to take over the Southwest were only empty threats. He added that the Southwest people were better off under the APC government. Pedro, who lamented the abrasive nature by which the PDP has been going about its campaign in the Southwest, warned against rigging in the Osun election under any guise. According to him, Aregbesola would win through a free and fair election. He stressed that the militarisation of the polls is not only contradictory to the ideals of democracy, but also a strategy that Nigerians would resist at all cost. His words: “I know Governor Aregbesola very well.

•PDP chieftain, supporters defect to APC

From Sina Fadare, Lagos and Adesoji Adeniyi, Osogbo

He is on ground. The PDP themselves know that Ogbeni is fully on ground because he is one of the few politicians that started grassroots campaigning from his first day in office. Through his performance, rapport with the people and his ability to successfully domesticate governance in the state of Osun, this matter is really a foregone conclusion. He is going to win the August 9 poll by landslide. “The facts speak for itself and people need to be sincere about this. Aregbesola has touched every household in Osun through his laudable and people-oriented programmes. Unfortunately, PDP’s last minute onslaught won’t succeed because the people of Osun and the Southwest in general know who really has their interest at heart. “The APC is the only party that feels the pulse of the common man, and I believe the people of Osun will vote their conscience by ushering Aregbesola in a richly-deserved second term”. On whether the nationwide

fortune of the party appears to be dwindling of late, Pedro said the party is rather expanding and getting ready to form the government at the centre 2015, adding that those perceived to be aggrieved would come back. “Party faithful should remain steadfast and not waiver in spite of the sustained plot to destabilise the opposition party. This is nothing new. It has happened in the past and we always knew it would happen again. This time around, the opposition is better prepared for the barrage of assaults than people think. Their efforts to crush the opposition party will fail woefully. Mark my words”. A chieftain of the Osun State Peoples Democratic Party (PDP), Senator Felix Ogunwale a.k.a Jumokol, also declared his support for Aregbesola’s re-election. Ogunwale, who spoke with reporters during his defection to the APC with hundreds of his supporters in Iragbiji at the weekend, said he was backing Aregbesola because of the huge infrastructural development his administration has brought to Osun. The Iragbiji-born politician, who represented Osun

Central at the Senate between 2003 and 2007, remarked that the state’s progress is unprecedented. He said for the progress to be sustained, there is need for Aregbesola to return to office. He said: “What is happening in Osun is what everybody can see physically. If we want these developments to continue, we must vote for Aregbesola so that he can complete the good work he has started. “It is a fact that PDP in Osun State has lost focus. That is why I am calling on my lovers and those that believe in me to come out en mass and vote for Aregbesola. Don’t entrust your future in the hands of politicians who deceive with mundane and cheap immediate gains. “Is it the road networks within the state you want to talk about or the model schools his administration is building, electrification of villages and welfare package for the workers? Honestly, the governor has tried. “I am committed to the task of re-electing Aregbesola; I am so confident that Osun people will vote overwhelmingly for him because of his achievements, which

PDM withdraws candidate from poll

HE national leadership of the Peoples Democratic Movement (PDM) has withdrawn its Osun State standardbearer, Mr. Timothy Oludare Akinola, from the Independent National Electoral Commission’s (INEC) list of candidates for the poll. Akinola’s name was withdrawn for alleged anti-party activities in a letter addressed to the INEC Chairman, Prof. Attahiru Jega. The letter by the PDM’s National Chairman, Bashir

From Adesoji Adeniyi, Osogbo

Yusuf Ibrahim and dated June 23, 2014, said: “The PDM has taken the decision to withdraw Mr. Oludare Timothy Akinola as its candidate in the August 9 Osun State governorship election.” In the letter, PDM accused Akinola of “holding meetings with opposition political parties’ candidates without its consent, insisting that this amounts to anti-party activities.

‘PDM accused Akinola of holding meetings with opposition political parties’ candidates without its consent’ “Other reasons for his withdrawal had to do with his continuous failure to honour invitation to meetings by the National Secretariat and his lack of pre-

paredness and inability to present a concrete plan for campaign few weeks before the election.” Also, the party’s state Chairman, Alhaji Lasisi Bakare, in a separate letter to the Resident Electoral Commissioner, Mr. Olusegun Agbaje, intimated the commission on the development. “In the light of the above, our party will not be fielding any candidate to participate in the forthcoming election,” it said.

can be felt in every nook and cranny of the state.” An association, Oranmiyan Support Group, has also declared its intention to mobilise towards the realisation of the second term election of the governor. The group also said that it would engage voters through education to jealously guard their votes to ensure that their votes count. The group is made up of intellectuals and professionals from Osun State living in and outside the state but with operational base in Lagos. Its coordinator, Mr. Ayo Akinola, in a statement yesterday, said: “ We have decided to come out in the open to garner support for the candidacy and electoral success of Ogbeni Rauf Adesoji Aregbesola. This is rather the first time a group of this nature will come out openly. We have no choice because we do not want to sit on the fence this time around. We have no other state but Osun. If Osun falls today, God forbid, we fall with it. And if glory comes, we shall all be proud”. The group praised Aregbesola for applying the art and science of strategy to ensure success in all endeavours in which he is engaged.

HE Social Democratic Party (SDP) has called on the InspectorGeneral of Police (IG), Muhammed Abubakar, to investigate the circumstances leading to the alleged kidnap of three of its members in Osun State at the weekend. The state party Chairman, Mr. Ademola Isola, in a statement in Osogbo, expressed concern over the incident, calling on all security agencies to be on the watch as the August 9 Osun governorship election approaches. He said SDP members, including the party chairman in Ede-North Local Government, Alhaji Adewimbi Kadiri, Mrs. Titilayo Alaanu and Mrs. Musili Usman, were abducted during their houseto-house campaign at Alusekere ward of Ede on Saturday. The SDP Chairman thanked the Commissioner of Police, Mr. Ibrahim Maishanu, for his timely intervention and the DSS for treating his party members, who were found with no incriminating materials, with respect. “But we still want the IG to investigate this matter,” he said.

Group decries attack on members By Adekunle Yusuf,

Assistant Editor

GROUP campaigning for the re-election of Governor Rauf Aregbesola, De Raufs Volunteer Group, has warned the Peoples Democratic Party (PDP) and Omisore Campaign Organisation that it will not condone further attacks on its members. The group condemned the attack on its Director of Mobilisation, Comrade Bello Lukman, in front of the group’s secretariat, describing the act as “unwarranted and criminal.” The group’s Director-General, Comrade Amitolu Shittu, in a statement, said the incident occurred when a private car owner was harassed at the entrance of De Raufs office in Osogbo by persons suspected to be PDP’s thugs. According to Shittu, a member of the group who was recharging his phone nearby was accused of taking the picture of the thugs. The thugs later descended on Lukman, broke his Android phone and took away his Blackberry phone as well as N250,000 cash meant for the local units of the group.

NCP urges global focus on election

From Adesoji Adeniyi, Osogbo

SUN State National Conscience Party’s (NCP) governorship candidate Comrade Olanrewaju Afolayanka has called on the international community to take “special interest” in monitoring the governorship poll. Afolayanka, who spoke yesterday with selected pressure groups alleged that “some forces are working round the clock to ensure that the people’s will does not triumph at the conclusion of the election.” According to him, “the strict observation of the international community became imperative to checkmate the undue influence of the Presidency in imposing its candidate on the people.” The NCP candidate said information at his party’s disposal showed that “the Presidency was ready to spend N28 billion to capture Osun State for the Peoples Democratic Party (PDP) through its governorship candidate, Senator Iyiola Omisore, as it did for the Ekiti State governor-elect, Mr. Ayodele Fayose.”

THE NATION MONDAY, JULY 21, 2014

NEWS

Chibok protesters to Shekau: you’re a coward

ROTESTERS of the BringBackOurGirls Movement have accused Boko Haram leader Abubakar Shekau of cowardice. The group said he is not preaching Islam but wickedness and cowardice. The protesters spoke yesterday during their 82nd day sitout in Abuja. A leader of the movement, Aisha Yusufu, said she would not wait until her daughter is abducted before she does something about insurgency. Mrs. Yusufu said: “I say to Shekau, you are not human; you are a coward. This is not Islam; Islam is a religion of peace and not of wickedness and cowardice. “I don’t have to wait until

Robbers kill two in Kaduna robbery

•Destroy Sambo’s wife’s NGO vehicles From Abdulgafar Alabelewe, Kaduna

WO people were killed at the weekend when robbers blocked the Kaduna-Abuja Expressway near Doka village. An official car with an inscription, I- CARE Women and Children Initiative, belonging to the Non-Governmental Organisation (NGO) of Hajia Amina Sambo, wife of the Vice President, was among several vehicles destroyed. The NGO’s Kaduna State Coordinator, Abdulrahman Mikailu, who spoke from his bed at the St. Gerald Hospital in Kaduna, said his official vehicle was among the five vehicles that rammed into each other. He said: “Two bullets missed me when I tried to come out of my vehicle. I pretended to be dead. “The robbers, who were in military uniform, thought I was dead, so they went to my car and ordered my colleague to surrender all our belongings. “They killed two passengers in a commercial bus and robbed several vehicles.” Police spokesman Aminu Lawan said the multiple accidents were caused by panicked drivers. He said there was no official report of casualties. “The police helped in taking some of the victims to the hospital,” he added

Gunmen shoot lecturer From Abdulgafar Alabelewe, Kaduna

UNMEN have killed a lecturer of the Shehu Idris College of Health Technology, Kaduna State. Ishiaku Garba was killed minutes after he said his evening prayers. A source said: “He rushed home to attend to some ‘visitors’, who were waiting for him. “The ‘visitors’, who were the gunmen, collected his wife’s phone and some unspecified amount of money and other valuables.” Police spokesperson Aminu Lawan said investigations have begun.

•’They can’t malign my character’ From Grace Obike, Abuja

my daughter is kidnapped to do something, most of us might think that we are protected and anointed and cannot be touched. “ But we do not realise that Boko Haram is a problem for all Nigerians and not of a people or religion, it will get to a point that there will be nothing left for us to live for.” Former Minister of Education Oby Ezekwesili said the detractors trying to malign her character did not give her a character so they cannot malign it. Ezekwesili said the Chibok girls trusted the society but instead were inflicted with an injury.

“They did not give me my character and so they cannot malign it. I will continue to stand with the Chibok girls, no matter what they do “These girls trusted the society but instead they were inflicted with a wound, seeing the wound, we have refused to walk away. “This is not a time to move on, we cannot move on with a pain that is so deep. We use the Chibok girls to say, never again will we move on when our people are in pains. “If I want to be a politician, I can but I came here because of the wound and will not move on until there is a closure for the Chibok girls and their families.”

HE Peoples Democratic Party (PDP) is “shopping” for a Muslim candidate to replace ex-Governor Murtala Nyako, who was impeached by the House of Assembly last week. Going by emerging calculations, the party may have ruled out enthroning Nyako’s deputy, Bala Ngilari, a Christian from Adamawa North. The Independent National Electoral Commission (INEC) is expected to conduct fresh governorship election within 90 days. The PDP is working towards avoiding an election next year. Major contenders include Senator Abubakar Girie, Dr. Ahmed Modibbo and Anwal Tukur, son of former PDP National Chairman Alhaji Bamanga Tukur. Others are Senator Bello Tukur, Dr. Umar Ardo, Brigadier-Gen. Buba Marwa, Jerry Kundusi, Markus Gundiri and Acting Governor Ahmadu

Adamawa: PDP ‘shops’ for Muslim candidate From Gbade Ogunwale, Assistant Editor, Abuja

Umar Fintiri. It was, however, gathered that Ngilari may be brought back as deputy governorship candidate. A party chieftain said: “From all indications, we have viewed the situation and we are con-

vinced that for the state to have peace, we must work out an arrangement for a Muslim governor “As it stands the party is looking at having a Muslim governor just as Ngilari is being considered to return to his former position. We are trying to avoid any use of sentiment against our party.”

Succour for Boko Haram victims

From Kolade Adeyemi, Kano

group, Izala Islamic Sect, has donated food and clothing worth over N6million to 500 orphans, widows and Boko Haram victims in Kano State. The State Chairman, Dr Abdullah Saleh Pakistan, said the group provides succour to victims during Ramadan. He said: “We started this programme five years ago because we saw that there were hundreds of orphans and widows roaming about. “So we sat down and initiated it by seeking help from philanthropists and other God fearing people, who donate food and clothing. “In Dakata area of Nassarawa Local Government, we have one family whose father was killed; he left behind 25 young children.”

THE NATION MONDAY, JULY 21, 2014

CITYBEATS

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Man, 66, arrested for alleged murder

66-YEAR-OLD man, Lateef Sadiku Olarinde, has been arrested for the alleged murder of a barber in AbuleAdo, a Lagos suburb. The late Oluwajuwon Olawepo, was hit by a stray bullet last Tuesday when hoodlums allegedly led by a man who was simply identified as Olarinde invaded the area. It was gathered that the hoodlums came to chase away commercial motorcyclists from a land used as park. Olarinde, it was gathered, warned the riders to vacate the land, claiming to be its owner, but they refused until the day of the incident. A rider, who craved anonymity, said: “Every Friday, they come to the area in large number to extort money from us. Each of us (and stall owners) pay them N200 each; yet, they are never satisfied. When they invaded this area, they unleashed mayhem and beat us up. They were about 30 in number. “When we tried to resist them, they brought out guns and started shooting indiscriminately. We all ran away and those who have shops in the area hurriedly shut their shops. It was while Oluwajuwon was trying to lock up his shop that a stray bullet hit him on the chest. The police are aware of his activities in the area and they

By Jude Isiguzo

don’t want to do anything.” Oluwajuwon’s family has appealed to the InspectorGeneral of Police, Muhammed Abubakar and Commissioner of Police Umar Manko to order “full investigation” into the matter. Oluwajuwon’s elder brother, Samson, who said it was his pastor that informed him that some his brother was shot dead during a fight by hoodlums on Fine Niger Road at AbuleAdo, added: ”My pastor and I went to the scene of incident immediately to verify what actually happen; on getting there I met my brother in his pool of his blood on the floor. I was screaming; some policemen from Agboju Police Division were at the scene of the incident.” “As I speak to you we don’t know where the Policemen took the corpse of our brother to. While I and my two other brothers were making effort to find out from the policemen about where they took our brother’s corpse to. One of them came and said the Divisional Police Officer of the station had ordered them to detain us.” He said he was taken to the Special Anti-Robbery Squad (SARS) where the Officer in Charge, Abba Kyari ordered him released on bail.

•Chairman, Ifelodun Local Council Development Area (LCDA) of Lagos State, Shuaib Fatai Ajidagba (2nd left), with Ramotalai Akinola-Hassan, member, House of Assembly; Mr Olatunji Adegbadebo, representative of Commissioner for the Environment, chiefs and some residents at the flag-off of this year’s tree planting programme in the area.

Mob attacks woman with her dead child

MOB descended yesterday on a middleaged woman for allegedly being in possession of a dead child in Mile 2, a popular Lagos suburb. It was gathered that the woman had taken the child, 5, to the hospital, but the child died because she could not afford the cost of blood transfusion. The woman, simply identified as Florence, a mother of three, who hails from Kwale in Delta State, said the boy was her third child. Sources said she was carrying the boy in her back when passersby noticed that he was dead.

By Jude Isiguzo

A mob gathered and descended on the woman, alleging she stole the child and used him for ritual. But for the timely intervention of a team of policemen attached to the Rapid Response Squad (RRS), she would have been set ablaze. The victim said: ”I was born in Lagos. I have three children; nothing is wrong with me. My late boy’s name is Chidi; he was five years

old and had been very sick. He needed blood transfusion but I couldn’t afford the money. He died three days ago. Before he died, we wanted to travel back to the village. My husband stays in Port Harcourt. “The paper where I wrote his number has been destroyed by rain. I don’t have any relation in Lagos. I was living under a staircase in one of the shops located in Alaba Market. A security

man allowed my son and I to sleep there at night. I didn’t steal any baby, I didn’t kill any child. “I was carrying Chidi on my back after he died when people gathered this morning and started beating me. What have I done to deserve this kind of beating? If not for policemen they would have beaten me to death.”

Community angry over ‘illegal’ party congress

NLESS there is an urgent intervention by concerned authorities, the brewing tension in Ojodu Local Council Development Area (LCDA) of Lagos, a serious crisis may erupt in the area soon. Amid outbursts of anger Friday evening, leaders and members of the All Progressives Congress (APC) in the area held their maiden meeting and inauguration of the LCDA chapter of the party, following a congress election held on April 5, which was adjudged free and fair. They are, however, bitter over a “needless” rerun poll allegedly spearheaded by the member representing them in the House of Representatives, Hon. James Abiodun Faleke - which has since created a parallel leadership for the party in the area. Party leaders present at the parley, which was held at the Agidingbi Town Hall, Ikeja, included: Hon Olori Lola Bashorun, a former Vice Chairman of the LCDA; Chief Joseph Olaseinde Famakinwa, chairman of Ward C; Elder Alade Solomon, party lear from Oke-Ira, Ogba; Alhaja Kehinde Quadri, chairman, Ward A, and Hon Azeez Adebayo, Supervisor for Works in the LCDA. The mammoth crowd of party members and supporters that thronged the venue of the meeting loudly expressed their anger over the unsavoury development as they urged the state leaders of the party to attend to their grievances to avoid imminent chaos and save the party.

Why should I destroy the ‘party we have built? Those

that organised the parallel (congress) are Hon Oloro and sadly Baba Eto who incidentally is the deputy chairman of the party in the state Dada Aladelokun, Assistant Editor

Hon Bashorun told The Nation: “The problem here is about somebody who claims to be our representative desiring to control the leadership of all the six wards here. Hon Faleke was at the April 5 congress which was free and fair. But because he could not realise his ambition of having his people in all the wards, he organised a bogus rerun and went to the state leadership of our party to lie that his own version was the authentic. Interestingly, the state leadership said there was no rerun anywhere. This is unacceptable. We just want to assure the party that we are on ground here. They have taken over the key to our secretariat; that is why we are he because we don’t want trouble. Let the state intervene and ensure justice now.” Famakinwa, who echoed Bashorun’s views, said the matter demanded urgent attention by the authorities in the party because of the imminence of the 2015 election, adding however, that they remained loyal members of APC in the area. Also, Alhaja Quadri said the rerun is illegal and un-

’

just, saying: “I am the only elected woman in the free and fair poll. To now say that the same poll should be set aside is strange; it does not help the course of justice and ideal democracy. We need help here.” Both Solomon and Adebayo also expressed displeasure over the development, adding that it would be too much of a political risk to leave the area in the throes of the mounting tension. When contacted, Faleke, in an SMS, said: “I think you should contact the party secretariat at Acme. Why should I destroy the party we have built? Those that organised the parallel (congress) are Hon Oloro and sadly Baba Eto who incidentally is the deputy chairman of the party in the state.” However, Oloro (the LCDA’s chairman) exonerated himself and Baba Eto, saying it was the people that organised the congress. “I was Hon Faleke’s deputy for two terms when he chaired this council; I did not give him any problem. It is strange and unbelievable that today, whatever happens, he is always quick to mention my name,” he added.

THE NATION MONDAY, JULY 21, 2014

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Fashola: we won’t give up on Apapa gridlock

Lawmakers to governor: Curb menace of truck drivers

O find a lasting solution to the traffic gridlock in Apapa as a result of fuel and other cargo distribution operations, Lagos State Governor, Mr. Babatunde Fashola (SAN), yesterday again visited the Apapa Port area renewing his earlier pledge that his administration would neither give up nor surrender until a solution is found. Yesterday's visit was the third this month as the Governor pledged to work closely with all the stakeholders in the distribution of fuel and other cargo at the Port in order to enable residents and those who have businesses in the area to access their homes and work places on a sustainable basis. Fielding questions from reporters after being briefed by some government representatives and other haulage business operators at the Apapa Port, Fashola vowed that in spite of the seeming nonchalance on the part of the Federal Government which owns the Ports, his administration would continue to engage the problem with other stakeholders while also seeking the attention of the Federal Government to do what is right. Lagos State House of Assembly has called on Governor Babatunde Fashola to check the menace of truck and trailer drivers on bridges and highways in Apapa Local Government Area. They also urged the governor to ensure that tanker drivers patronise their terminal and holding bay on the LagosIbadan Expressway. These were part of the resolutions passed by the House following a motion co-sponsored by Hon. Mufutau Egberongbe (Apapa 1); Wahab Alawiye-King (Lagos Island 2); Sanai Agunbiade (Ikorodu 1), Olumuyiwa Jimoh (Apapa 2) and Moshood Oshun (Lagos Mainland 2). The House urged the governor to “expedite action on the revitalisation of rail transportation system of the state to help reduce the influx of trucks and trailers plying the route to ease the hardship being experienced by commuters on a

Fraudsters held with fake $200m By Jude Isiguzo

HE police have arrested four suspected fraudsters with fake $200 million. The suspects were arrested in their shrine at Ajeromi community off Railway line in Badia, Ijora, a Lagos suburb, following a tip-off. The police also recovered charms and amulets from them. According to the police, a victim report on how the suspects swindled him of a huge sum of money, including mobile phones. Sources said following the victim’s report, the Area ‘B’ Commander, Innocent Ndubueze Anene, an Assistant Commissioner (ACP), worked out a plan on how to arrest the suspects in their den. A source said the victim was duped last Sunday, adding that the police began to trail the suspects the following day. It was gathered that the suspects have duped many people of large sums of money.

By Oziegbe Okoeki

daily basis on the road”. It also called on the National Assembly through the Committee on Works to direct the Federal Ministry of Works to expedite action on the reconstruction of the road to avoid practical shut down of the road. In arriving at the resolutions, the lawmakers noted the indiscriminate parking and abandonment of trucks and trailers on bridges and highways in Apapa Local Government Area causing traffic jam with their attendant loss of productive man-hours and posing serious danger to the bridges built to ease vehicular movement in the area.

•Failed portion of a road leading to the Nigerian Ports Authority in Lagos, being inspected by Governor Fashola as part of efforts to curb the traffic gridlock caused by illegal parking of tankers and articulated vehicles ... yesterday. Inset: L-R: Fashola, Commissioner for Transportation Mr. Kayode Opeifa and General Manager, Lagos State Traffic Management Authority (LASTMA) Mr. Babatunde Edu.

THE NATION MONDAY, JULY 21, 2014

NEWS

•Senator Olorunnibe Mamora (right); Outgoing Chairman, Nigerian Medical Association, Lagos State branch, Dr Francis Adedayo (left) and the Chairman of the occasion, Dr Tosin Ajayi, at NMA’s annual dinner and awards night at Sheraton Hotels and Towers, Ikeja...at the weekend. PHOTO: MUYIWA HASSAN

Human trafficker gets 10 years jail term

BENIN socialite, Mrs. Eunice John Ayegidi, has been sentenced to a 10-year imprisonment for human trafficking. Mrs. Ayegidi, 48, was arrested in Ghana in 2012 and prosecuted by the Benin Zonal Command of the National Agency for the Prohibition of Traffic in Persons and Other Related Matters (NAPTIP). The court was told that Mrs. Ayegidi trafficked six girls to Ghana and accommodated them at a place called Prampram where the girls were used as commercial sex workers before they were rescued by the Ghanaian po-

From Osagie Otabor, Benin

lice. Mrs. Ayegidi was arraigned on an 18-count charge but she pleaded not guilty when they were read to her. She was convicted on nine counts, which included organising foreign travels, which promote commercial sex on counts one to six, procurement of persons for commercial sex counts seven to 12 and deceitful inducement counts 13 – 18. The jail term was without an option of fine. Justice Alero Adodo-

Eruaga of the Edo State High Court said the jail sentence would serve as a deterrent to other traffickers. The judge noted that Nigerian girls were trafficked for exploitative commercial sex and in the process bringing shame to the nation. NAPTIP has launched “Root out the traffickers from the Root” at remote villages, markets and other public places to educate the people on the ills and dangers of human trafficking. The Benin Zonal Commander, Mrs. Oluchi Ebiringa, who led the first leg of the outreach, said it would not be business as

usual for traffickers. She said: “Our new rural outreach operation will root out traffickers. We are moving ahead of them to remote villages and settlements. “We have resolved that if they (the traffickers) climb mountains, we shall climb them, if they pass through water, our operatives have been trained to pass through the same waters and catch up with them. “There is no escape route because they will meet us at every location even in the remote villages. The only option for them is to hands off and stop trafficking our promising children.”

Fed Govt sues Bayelsa for N1.9b electricity debt

HE Federal Government has initiated steps to recover over N1.9billion allegedly owed the defunct Power Holding Company of Nigeria (PHCN) by the Bayelsa State Government for electricity consumption from 2007 to 2011. The Nigeria Electricity Liability Management Limited (NELML) sued the state, its Attorney-General, the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance. NELML said the move was within its mandate under the Electric Power Sector Reform Act (2005) and the Roadmap of Power Sector Reform launched by President Goodluck Jonathan in August 2010. NELML was established by the Federal Government to take over PHCN’s liabilities, following its unbundling under the power sector privatisation process. In the suit filed at the Federal High Court, Abuja, NELML said N1.9billion was owed the Port Harcourt Electricity Distribution Company (PHEDC), an arm of the PHCN, prior to its sale.

•Agency joins CBN, ministry in suit From Eric Ikhilae, Abuja

It said the court action was informed by the government’s unwillingness to pay, despite earlier concessions granted it. In its statement of claim, NELML said PHEDC had upon an “extensive reconciliation of the accounts of all its customers” found that Bayelsa owed about N2.292billion for the period of December 1, 2007 to March 31, 2012 for the electricity supplied it for the running of its activities. It said on completion of reconciliation by both parties, the debt was put at N1.916,053.016.17, adding that the Attorney General wrote on September 6, 2012 asking for a discount of N1billion. The PHEDC refused but agreed to reduce the debt by 20 per cent. The plaintiff said the Attorney General wrote again on September 25, last year, proposing to be allowed to pay N1billion in full liquidation of the agreed debt,

which PHEDC also refused, but agreed to accept a reduced amount of N1.2billion. It added that although Bayelsa later accepted and sought to be allowed to pay the N1.2billion in three instalments, it failed, necessitating several other meetings. NELML stated that “at one of such meetings held on February 21, last year, between the first defendant and PHEDC at the Bayelsa State Ministry of Finance, it was agreed that the payment be made in four equal monthly installments, commencing from April last year and concluding July last year. “This was confirmed in a letter dated April 4, last year and written by the Commissioner of Finance. Despite the assurances and promises made by the second defendant (the Attorney General) till date, no payment has been received from the government,” the plaintiff said. It argued that since the concessions given to the state was upon its promise to pay in full by July last year and having failed to pay the state

is no longer entitled to the discount earlier granted it, therefore leaving its actual indebtedness now at N1.916billion. Although the government and its Attorney General are yet to respond to the suit, the plaintiff has shown copies of the letters between them, including those in which the state admitted the debt and sought concessions. The CBN and the ministry have filed separate objections to the suit, challenging the court’s jurisdiction, their inclusion in the case and praying the court to exclude them from the suit. The CBN argued that the plaintiff failed to establish any cause of action against it and that by virtue of the provision of Section 251 of the 1999 Constitution, the Federal High Court lacked the jurisdiction to entertain the plaintiff’s claims. The ministry argued that since it is not a juristic person, the court lacked the jurisdiction to entertain the suit against it. Justice Gabriel Kolawole has adjourned the matter till October 21.

89 benefit from NDDC’s medical aid

HE Managing Director of the Niger Delta Development Commission (NDDC), Bassey DanAbia, said the agency has begun consolidation phase of the Niger Delta master plan. He said 89 patients have benefited from the foreign medical aids on life-threatening ailments. The NDDC boss spoke at the weekend in Port

From Precious Dikewoha, Port Harcourt

Harcourt, the Rivers State capital, when some youths visited him. He said the master plan is a strategic aim to create an interface with the industry for effective engagement of youths and women in the region. Dan-Abia noted that the agency’s budget would ad-

dress the goals of the consolidation phase of the Niger Delta Regional Development Master Plan. Dan-Abia said: “The commission has introduced some human capital development programmes that would have great impact in the region in the years ahead. “Some of the programmes include the entrepreneurship development and empower-

ment programme, NDDC post-graduate scholarship scheme, women training etc. “The commission has built and repaired specialist hospitals and cardiovascular hospitals. “Eighty nine patients have benefitted from our foreign medical aids on life-threatening ailments and 5,000 from our free medical service programme.”

THE NATION MONDAY, JULY 21, 2014

COMMENTARY FROM OTHER LANDS

EDITORIALS

N30bn booty?

•We can only hope the Victims Support Funds won’t end up as election support funds

EWS that the Federal Government has floated a new initiative tagged: “Victims Support Funds” to serve as palliative for relatives of victims of sectarian crises, most especially the Boko Haram insurgency, across states of the federation is quite cheering. But the idea should not turn into another politicisation of misery by government. Experience has shown that when such funds were floated in the past, the impacts were felt more in the pockets of public officers than the targeted beneficiaries. The decision to implement the initiative, worth N30 billion, was reportedly taken at a recent Council of State meeting and unfurled by President Goodluck Jonathan during his inauguration of the Steering Committee for the Safe Schools Initiative at the Presidential Villa, Abuja.

‘The timing of the Victims Support Funds, considering the current rush for slush funds to prosecute the 2015 elections, is everything but auspicious. Our fear is that in the end, the exercise might be muddled up as the project, because of improper handling, may turn into another tall dream - a conduit for siphoning scarce funds’

The initiative is meant to complement the Safe Schools Initiative (SSI) that has Mr. Gordon Brown, former British Prime Minister and United Nations (UN) Special Envoy on Global Education, as frontrunner. General Theophilus Danjuma is chairman of the fund while Fola Adeola is to serve as his deputy. The need for the fund was underscored by President Jonathan when he said: ”Government is also coming up with what we call Victims Support Funds. We know that we need to intervene to cushion the effect of Boko Haram. So many people have been killed; we have widows and orphans: Properties have been destroyed, schools burnt.. We want to mobilise resources within and outside Nigeria just like we did during the flood of 2012.” We agree and, once again, restate that victims of these sectarian crises need a form of compensation to help stabilise their lives. And the government has a critical role to play in this regard. On paper, the government’s position fits the bill of a landmark beneficial project but we doubt whether the funds would not be crippled, like others before it, by bureaucratic log jam. For record purposes, it is pertinent to state that there are so many flood victims across the nation that never benefited from the 2012 flood funds, due to no fault of theirs, but that of improper coordination and undue politicisation, by the government. Now that this fund is being floated, it is

almost certain that the necessary government agencies do not have the correct records/statistics of certified victims or their relations that should be direct beneficiaries of the compensation. Sadly too, relations of victims that are mostly soldiers have reportedly cried out that they could not access the statutory entitlements of their breadwinners that died in the course of combating, especially, the Boko Haram rebellion. Now, if statutory benefits of these victims cannot be accounted for, what hope of judicious deployment does a fund considered derisively as ‘national cake’ have? The timing of the Victims Support Funds, considering the current rush for slush funds to prosecute the 2015 elections, is everything but auspicious. Our fear is that in the end, the exercise might be muddled up as the project, because of improper handling, may turn into another tall dream - a conduit for siphoning scarce funds. We call on Danjuma and Adeola to do everything possible to acquit themselves well in the discharge of this job that we feel the government merely intends to use their good names to launder its battered public image, in its failed bid to nip terrorism in the bud. We see the project as a continuation of generosity of cynicism by the Jonathan administration and we wait to be proved wrong that the funds may not wholly get to the targeted beneficiaries in the end.

Resuscitating research

•Nigeria begins to link up its tertiary institutions

HE recent launch of the Nigerian Research and Education Network (NgREN) represents a long-awaited solution to one of the most persistent challenges confronting the Nigerian tertiary education system: effective and efficient collaboration between local researchers and their foreign colleagues. Funded with US $10 million from the World Bank, NgREN seeks to provide broadband interconnectivity between Nigerian universities. This would enable them to collaborate on research projects much more closely than has hitherto been the case. The network is expected to significantly enhance their ability to be involved in global research collaborations which have increasingly become the norm. The importance of a successful NgREN intervention cannot be underestimated. The huge obstacles which stand in the way of effective, relevant and functional research are among the most formidable of the many problems facing the tertiary education sub-sector. Unlike their peers in other parts of the world, researchers in Nigeria find it extremely difficult to ensure that their research can be speedily integrated into the nation’s development projects. In the fields of food-processing and fabrication, for instance, laboratories and workshops in universities across the nation are full of inventions and improvements that are fated to become useless, simply because the world was not able to hear of them. NgREN should change that situation for the better. By providing a high-perfor-

mance national backbone among member universities, it will enable real-time data video and other connections among them, thereby reducing the need to travel and physically meet to exchange ideas. Nigerian researchers will now be able to discuss their work with colleagues, obtain assistance more easily, and publicise their research findings more widely. By significantly reducing the frustrations involved in the research process, NgREN could help in reinvigorating an essential part of the nation’s development. The new initiative is also very likely to play an important role in improving the world ranking of Nigerian universities as it will make them more visible in cyberspace and elsewhere. By bringing Nigerian researchers into close contact with their counterparts from other countries, NgREN would also help to raise local standards of education and research to globally-recognised levels. If the new facility is to function at optimum levels, all parties must ensure that all necessary elements are in place. Participating universities will have to ensure that the relevant infrastructure such as power, computer laboratories and trained staff are available. Just as importantly, government funding of these and other tertiary institutions has to be adequate to meet their needs. This is particularly important in the light of the debilitating strike by polytechnic teachers which crippled all activity in the sector for the better part of one calendar year. Nigeria would also be better-posi-

tioned to benefit from initiatives like NgREN if greater effort is made to integrate collaborative research into all aspects of educational activity. Increased funding should be made available specifically for joint research efforts involving different institutions. Funding should be provided for tertiary institutions to acquire the information technology vital to networking. More training should be provided for staff and students in such institutions to enable them utilise such technology fully. Now that the initiative seems to have gotten off to an auspicious start, it is hoped that more tertiary institutions are brought into it, and deliberate efforts are made to ensure that the products of the resultant collaborations are fully utilised to the nation’s advantage.

‘If the new facility is to function at optimum levels, all parties must ensure that all necessary elements are in place. Participating universities will have to ensure that the relevant infrastructure such as power, computer laboratories and trained staff are available. Just as importantly, government funding of these and other tertiary institutions has to be adequate to meet their needs’

Putin is facing his moment of truth

- Tragedy of MH17 shows he is losing control in Ukraine

N recent years Vladimir Putin, Russia’s president, has been an unconstructive actor on the world stage, notorious for his protection of the murderous Assad regime in Syria and for the annexation of Crimea. But how he acts following the shooting down of a Malaysian airliner over Ukraine will probably do more than anything else to seal his international reputation. It may be that this terrible tragedy, in which 298 innocent people died, will convince the Kremlin leader to shut down the bloody insurgency in eastern Ukraine that he has fuelled by covertly supplying arms to the pro-Russian rebels fighting the Kiev government. Alternatively, he may try to prevent the truth over Malaysia Airlines Flight 17 emerging and stick to his policy of dismembering Ukraine to stop it shifting to the west. If he chooses the latter course, Russia will become an international pariah and a dark new era in east-west relations will begin. Following the destruction of MH17, there has been much dispute as to who was responsible. The circumstantial evidence indicates that the aircraft was shot down by pro-Russian separatists. There is a question mark over how the rebels came to be in possession of such a potent surface-to-air missile system. They may have stolen it from the Ukrainian military or – far more gravely – obtained it directly from Russia. But it seems inconceivable that the Boeing 777 was fired on by Ukraine’s armed forces, given the absence of any military aircraft on the rebel side. A full and independent investigation into the aircraft’s destruction is needed. The separatists, who control the territory where the aircraft crashed, must give investigators unrestricted access to the site and to the black box recorders. This may require Mr Putin to put unequivocal public pressure on the proRussian militants to comply. Should he fail, the Kremlin leader risks losing what remains of his international credibility. Mr Putin’s responsibilities go far beyond this. Although the Kremlin has accepted the emergence of Petro Poroshenko as Ukraine’s elected president, it has continued to feed the conflict by supplying the rebels with ever more tanks and heavy weaponry. Moscow must end this flow of materiel, force the separatists to stop fighting and dissolve the Donetsk People’s Republic. If Mr Putin does not rise to the challenge, the west needs to be firm in its response. Before the MH17 disaster the US was correct to impose fresh sanctions. Should there be no change in Kremlin behaviour, President Barack Obama would be justified in pressing for tougher economic penalties, the only way to concentrate the Kremlin’s mind. European leaders should also rethink their collective stance. The bloc has been disappointingly divided between those, like the central Europeans, who take a tough approach to Russia and those, like Italy and parts of the German government, that are reluctant because of the threat to economic ties. As a result the EU has passed far less stringent sanctions than the US. If the death of 298 people – among them at least 198 Europeans – on a flight out of Amsterdam does not make EU leaders think again, nothing will. However, it is Mr Putin who ultimately holds the key to resolving this crisis. He needs to act while he still has the power to dictate events. At home, the Russian president has encouraged a pro-separatist frenzy across state media that risks becoming unstoppable. In eastern Ukraine he has unleashed heavily armed forces whose indiscriminate conduct he is now struggling to contain. The tragedy of MH17 is a terrible sign of how the conflict in Ukraine is slipping catastrophically out of control. Mr Putin has precious little time to change course. – Financial Times

TRUTH IN DEFENCE OF FREEDOM Managing Director/Editor-in-Chief Victor Ifijeh

• Editor Gbenga Omotoso •Chairman, Editorial Board Sam Omatseye •General Editor Adekunle Ade-Adeleye •Editor, Online Lekan Otufodunrin •Managing Editor Northern Operation Yusuf Alli •Managing Editor Waheed Odusile

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THE NATION MONDAY, JULY 21, 2014

CARTOON & LETTERS

IR: It is a terrifying that Nigeria is at risk of the deadly Ebola Virus Disease epidemic. The virus is "out of control" and spreading rapidly across the West African coast like a wild harmattan fire with the World Health Organisation(WHO) recording 44 new infections and 21 deaths in just two days. The outbreak of the deadly Ebola virus in West Africa is the worst on record with over 500 deaths reported to date. With several cases of Ebola reported in Mali, Gambia, Ghana and Sierra Leone, West Africa is witnessing the most challenging outbreak since the disease was discovered 38 years ago. WHO recently declared that it expects the deadly virus’ spread to continue for several more months in West Africa and now that it has spread to three neighbouring countries, the crisis appears to be far from being over. Nigeria, being the economic hub of the West African sub-region, attracts the highest movement of people, goods and services within the region

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Preventing the deadly Ebola virus

and this portends great danger for the country as the Ebola Virus is highly infectious and can be transmitted through bodily fluids, skin and other organs or through indirect contact with environments contaminated by the disease. In a country where management of emergencies and disasters is lethargic, a nation where healthcare facilities and personnel are grossly inadequate and doctors’ strike incessant, the possibility of coping with an outbreak of the deadly Ebola Virus disease will, no doubt, be a very difficult national yoke. Nigeria remains one of five

countries in the world still grappling with the eradication of polio even with readily available vaccination. In a country where strive is rife, the burden of curtailing the outbreak of another disease with no available vaccination will no doubt be a weighty crisis. This is why the authorities must act fast to secure the nation’s borders and prevent entry of the deadly virus. Ebola is highly infectious. It can be transmitted through bodily fluids, skin and other organs or through indirect contact with environments contaminated by the disease. The disease can also have a long

incubation period, lasting up to three weeks, which allows it to spread rapidly before diagnosis and quarantine can take place. Men who have been infected with the disease and recovered can still pass it on through sexual contact for up to seven weeks. In the absence of effective treatment and a human vaccine, raising awareness of the risk factors for Ebola infection and protective measures individuals can take is the only way to reduce human infection and death. Beside clinical management, the WHO, the Federal Ministry of Health

election. Recently, President Jonathan welcomed former Governor Ali Modu Sheriff into the PDP with preferential treatment and opened Maiduguri airport for the landing of his private plane. The Maiduguri Airport had been shut for some time and was not made available for locals even for lesser hajj. Impeachment moves have been made and are still been made against opposition governors especially in states where the PDP controls the states houses of assemblies. Some

have rumored that more states controlled by the opposition may go the same way. What our President needs to do is to endear himself into the hearts of the electorate. If the President had dealt with sponsors of terrorism, the killings of our people with impunity would have stopped. He should deploy security forces to resolve our insecurity challenges and not use such for irrelevancies. He should fight corruption and ensures transparency in governance. He should stop granting state pardons to corrupt

elements who still have cases in courts to resolve. He should ensure that fake marketers who were paid billions of naira for fuel not imported are brought to book and the ill-gotten wealth retrieved into the public treasury. He should fight oil theft and substantially increase the earnings of the nation. The President should retrace his steps and not follow the path of executive recklessness.

Let us call on the priests of divinity, to divine our collective future as well as those of the abducted ladies. The priests of the Pentecostal and orthodox churches should not be left out of this; so also are the imams, to help us pray our way out of this calamity. It’s not a mockery of the situation, but something we needed to do but had looked at, with negligence. After all, an average Nigerian and even many of the mediocres in public offices are always rushing to these spiritual centres for political breakthroughs during electioneering. Spiritualism is not all of the panacea but just one of them. The “men of God” should also be begged into negotiating for the release of these

abducted girls, granting their closeness with God or divinity, so that the heart of the Boko Haram boys would be softened and an unconditional release without bloodshed or casualty on the part of the abductees achieved. While all these is on, it’s high time we accepted that though our armed forces are doing their best, the numerical and physical strength of our military do not meet the technological and intelligential demands for tackling a hit and run insurgency like Boko Haram. And also the patriotic motivation of our military does not meet the “readiness to die, but not die alone” will of the Boko Haram goons. If motivation is to be termed, dying for what one believes in, then no army

President should halt drift into fascism

IR: We are beginning to see a gradual transition into fascism, selective justice and retrogressive clampdown on the opposition. This portends ominous sign for the nation. It is becoming clearer that President Jonathan is ready to muscle his way into the presidency for a second term in 2015. The opposition are being whipped to fall in line willy nilly. I believe that President Goodluck Jonathan has the constitutional right to contest for a second term in office. Similarly, the opposition has a right to field a presidential candidate against the President or any other PDP candidate in 2015. President Jonathan should allow his work to speak for or against him. Any student of politics will know that clamping down on the opposition can only achieve temporary relief. It rather attracts sympathy for the persecuted. Whichever way, all public officers will have to leave the office one day. During the Ekiti governorship election, APC governors were prevented by security forces from entering into Ekiti State while the Minister of Police Affairs and the Minister of State for Defence (PDP chieftains) were allowed in. The Akure airport was also shut to prevent the APC governors from flying into their bases and they were forced to travel by road. Some Ekiti State APC local leaders were detained during the

• Akinlolu Abdulazeez Adelaja, University of Ilorin.

and other partners should implement measures to respond to outbreak, contact tracing, disease surveillance, laboratory work, logistics, information-sharing and communication for effective response. The Federal Ministry of Health must also step up its public enlightenment campaigns to further create awareness on how to prevent infection from the deadly virus, and in case of infection, how to identify the early symptoms which is characterized by sudden onset of fever, intense weakness, muscle pain, sore throat and death. There is need for aggressive production and distribution of Information, Education and Communication Materials on prevention and management of Ebola Virus. Border states, because of their proximity to the reported countries of outbreak, particularly to the west of Nigeria should emulate Lagos and other states that have issued warning alerts to their residents on the risk of Ebola Virus outbreak. Lagos State, in particular, had advised the residents on precautionary measures to prevent infections. These include washing of hands often with soap and water, avoiding close contact with people who are sick and ensuring that objects used by the sick are decontaminated and properly disposed. The Disease Control Units of all the Ministry of Health in the vulnerable states must also synergize in creating a coordinated surveillance system around the border posts to identify possible carriers. • Sola Ogunmosunle Ministry of Information & Strategy, Alausa, Ikeja.

Chibok Girls: Let’s go spiritual

IR: Nigerians, faced with a series of unbroken life difficulties tend to affiliate his “hell on earth” with spiritualism. As the popular adage says, heaven only helps those who help themselves. It seems about time that aspect of our lifestyle is put to urgent use. This is the time for the nation to ask for the help of our spiritual leaders (the jet flyers and those without). Given the complexity of Boko Haram insurgency and the rate at which it is getting out of governmental control, the presidency should not shy away from holding an expanded security advisory meeting comprising not just the governors but also the spiritual crème de la crème.

in the world not even the America’s, has a higher motivation than that of the die-hard terrorist. The Boko Haram goons are ready to die for a cause -even though a regrettably erroneous one- and to our spiritual leaders we should be turning our attention to, for spiritual breakthrough, as every contemporary Nigerian does. They mustn’t reject us in this dire time, after all many of them had made wealth and fame from a whole lot of us, who jostle to their centres and strive through our nose to add up to the collection box, in the name of breakthrough and miracles. •Waliu Olaifa, olaifawaliu@rocketmail.com

THE NATION MONDAY, JULY 21, 2014

COMMENTS

O leap of the imagination can conclusively clarify the mind-boggling assault perpetrated by 21year-old Tolani Ajayi against his 64-year-old father. It is enlightening that even Tolani himself is unable to fully illuminate his dark atrocity. The 300level student of History and International Relations at the faith-based Redeemer’s University (RUN), Ogun State, has been arrested by the police for the self-confessed murder of his dad, Mr. Charles Ajayi, a lawyer who had been decorated as a Senior Advocate of Nigeria (SAN); and, whatever happens, his history has been fundamentally marred by his unacceptably poor management of the son-father relationship. Perhaps wise after the fact of his scandalous act, he was quoted as saying, “He was a good father and actually took care of us well. I never lacked anything. I was just angry that day.” He also said: “I have prayed since I killed my dad and asked God for forgiveness because I actually regret that I killed him.” It was terrible enough that Tolani killed his father, but even more repugnant was the manner of the murder. By his account, “I used normal small kitchen knife. Later, I used a cutlass to attack him.” He dismembered his father’s body and dumped the pieces in a bush. Just a thought: What if the butchered body was never discovered, and Tolani correctly linked with the killing? Ironically, these evils happened within the expansive Redemption Camp of the Redeemed Christian Church of God (RCCG) on the Lagos-Ibadan Expressway. Remarkably, only father and son can tell the sequence of events that culminated in the shocking death; and since dead men tell no tales, Tolani would want the world to believe his own version. His narrative: “The incident happened around 1.00am…There was an argument between us and I stood up to him. He beat me with a stick and bit me with his teeth. Just the two us were at home…My father went to the kitchen and fetched a wooden spoon. He just used it to beat me repeatedly and

‘If, indeed, anger was the determining factor in this tragic manifestation of unrefined bestiality, then it is most apt to reflect on not only the psychology of anger, but also the sociology of anger, particularly in the Nigerian context with all its anger-inducing realities’

INALLY, the first governor under the auspices of the Jonathan-led civilian administration has been impeached. The elephants who won are celebrating; the elephants who lost are quiet, while the familiar grass, never in the picture whenever the evil plot is hatched, remains in the backyard of the country, staring bleakly in abject and institutionalised solitude. One must start by saying that democracy as a system of government is not new to Nigeria, save that in the last 50 years, those who have managed the country have not learned any meaningful lesson, those who are currently in charge have stubbornly refused to learn any lesson, and the people who should challenge this microscopic few and either force them to learn those hard lessons or be thrown out of power, have been maniacally robbed of their capacity to do so by long years of systematic and careful politically programmed agenda promoting mass illiteracy, poverty, nepotism, ethnicity and in the extreme case, blind greed. From the time the British colonialists surreptitiously abandoned the government and the people of Nigeria in the hands of their cronies in the then fading colonial enterprise, the Nigerian Project has continued along a familiar line of history. Thus, while the helpless and apparently orphaned nation did continue to change hands, with each change having about the same set of characters reshuffling themselves under different guise, each of this set of ruthless beneficiaries of the British imposed confusion, made sure they left the country worse than they met it, and each made sure the same familiar history their unkind parents told them of how the country was run aground, was successfully retold by them. To start with, it is familiar history that after the then Northern People’s Congress (NPC) came to power in December 1959, on the wings of its clandestine deal with the National Council of Nigeria and Cameroon (NCNC), the final question to determine the political future of the infant Nigerian State, was whether the then federal powers in Lagos, would be ready to tolerate any major opposition in the next General elections. It became evident very early that the then ruling government, was in no mood for such and this it evidenced by immediately setting to work to discredit and destroy the opposition. To achieve this, it found willing hands by which it immediately engineered serious crisis in the then Western region via the Western House of Assembly. The crisis was yet to simmer when the elephants who supposedly won that fight coasted home to victory in the 1964 General Elections. As it is said, those who sow the wind are condemned to reaping the whirlwind. Thus, was it that before the winning elephants could settle down to savour the supposed gains of their stolen victory, they were unceremoniously thrown out of power, through the barrels of the gun. And so the First Republic ended in wanton disgrace. Ordinarily, anyone would have thought this would be enough lessons for any right-thinking society, but like it is said, when a people fail to learn from history, they are bound to repeat it. In a familiar move, as the announcement of General Elections was made in 1978 as a prelude to the Second Republic, the disgraced men of 1966 quickly regrouped under different ban-

‘I was just angry that day’ I tried to defend myself. Then he bit me on the shoulder and I got angry.” Faith may have been at the centre of the clash as Tolani reportedly elaborated that his father attacked him because he was allegedly cold during a prayer session on the fateful night. However, it is intriguing that Tolani said his father was not in the habit of beating him or biting him before that time, which seems to contradict the dramatic picture of beating and biting that he had painted; but this is not to deny the possibility altogether. It is understandable, and perhaps to be expected, that the narrator-participant presented the story to reflect provocation, as if that could be redeeming. “Drugs did not push me to kill my father,” he declared, possibly in an effort to promote something akin to self-defence. There is no doubt that his denial of the suggestion that he might have been under an abnormal influence further complicates the case. Against the background of his admitted romance with drugs, it would have been easy to link his violence to mindbending substances had he not emphatically denied such connection. Or was he living in denial? Logically, questions about parenting and socialisation will arise from Tolani’s extreme and excessive expression of anger. But, at bottom, his murderous rage must be firmly analysed within the context of personal responsibility. The truth is that whatever the inadequacies of his upbringing and the defects of his social integration, it should be reasonably expected that with his education and implied exposure to civility, he ought not to be associated with patricide. Interestingly, he claimed to have a girlfriend and other friends in school, which should be unsurprising; the

real surprise would be if his friends can understand or explain his crime. Not only his friends. What about the entire university community? Many observers are likely to wonder why the Christian orientation of his university turned out to be insufficient as a means of humanisation, which would amount to undervaluing, if not overlooking, the more important dimension of personal accountability. It is instructive that, in a moment of introspective insight, Tolani himself was quoted as saying, “It is not about church, but only God knows why.” It can only be imagined how the members of his family would interpret this double tragedy, the murder and the murderer. If, indeed, anger was the determining factor in this tragic manifestation of unrefined bestiality, then it is most apt to reflect on not only the psychology of anger, but also the sociology of anger, particularly in the Nigerian context with all its anger-inducing realities. It is noteworthy that a specific individual in power, speaking of Delta State Governor Emmanuel Uduaghan, has focused his thoughts on this destructive phenomenon, which is generally understated until something as jolting as Tolani’s outrageousness surfaces. Uduaghan may be an unlikely source of a philosophically perceptive view on anger, particularly because of the political nuances of his position, with reference to the country’s ruling Peoples Democratic Party (PDP) where he belongs, and the rival All Progressives Congress (APC), but his perspective is nevertheless useful. In a recent interview, Uduaghan said: “Now I am trying to organise a workshop or summit on anger management. We are a country today and virtually everybody is angry with the other person. People are angry with the president, they are angry with PDP, angry with APC, one ethnic person is angry with the other ethnic person. You are driving on the road and one driver is angry with the other driver, okada rider is angry with the police and the police are angry.” He went on: “So we are a country where virtually every person is angry with the other person. So what is happening? We need to sit down and look at why people are angry. Why are we angry with each other? When you read 10 columnists, you will see that eight are writing out of anger. We just get angry with one another.” Tolani, clearly now clear-eyed, can see the futility of anger. Sadly, it took patricide, in which he was the protagonist, to open his eyes. “There is no way Nigerians can help me,” he said with touching stoicism. “I am going to face my judgment. I am meant to pay for what I have done. It is not as if I am ready. It is something that is inevitable; something that is going to happen. I am just waiting for the time.” The enduring moral of this sad and saddening story is: Control your anger before it controls you.

Impeachment gale: Return to democratic wilderness By Olusola Adegbite ners. Again, like a cat with nine lives, the NPC-NCNC marriage of 1959 resurfaced under a new brand called the National Party of Nigeria (NPN). With no clearly significant or manifestly prosperous manifesto, the NPN grabbed powers on a self-styled misrepresentation of 12 two-thirds votes of the people, who apparently may not even have been able to understand the then big grammar of the constitution. As it was the case in the 60 to 66 episode, these political gangsters looted the country to the bone, pilfered the treasury to ruins, and turned their fatherland to a beggarly nation. The NPN took off from where the NPC-NCNC hung its boots of intolerance in 1966, and sought to destroy the opposition. Again, a massive crisis was engineered in the Western region, through willing hands in the then Ondo-State and at the end, 1966 was simply rehearsed and repeated, as the elephants that claimed to have won in a landslide, were thereafter again thrown out of power in a gun-slide. Then came 1999. The remaining NPN unspent warlords, not minding the disgrace of the Buhari-Babangida-Abacha trio, who made sure they were reduced to the status of errand boys, only fit to lick the boots of the military all the way from 84 to 98, still emerged as the overnight moneybags, who stood as potential bidders for the May 29 electoral process. Thus, again Nigeria’s electoral fortune was effectively nipped in the bud, while the country was safely put in the pockets of the old gang. Where some had been forced into retirement, they simple replaced themselves with their foreign-trained sons and daughters, who go about huffy and puffy in their American accent talking, not forgetting to tag their father’s name to their maiden name. The old political cargo and their new found friends in ex-generals quickly arranged themselves in different spheres of power, each quietly grabbing whatever he can, with the other looking the other way. As long as the cake is enough to go round, no quarrel is sure to be heard. A few instances, where disgruntled faction made to open the can of worms, it was quickly treated as a family affair and a deal brokered. To secure this treasure chest, which ceaselessly flows from dirty oil money unaccounted for, history is consistently overlooked, commonsense habitually cast into the bin, and federal power is deployed to destroy whatever opposition may try to rear its head to challenge the status quo. Crisis of different fashion is plotted and seed of confusion is sowed consistently. After all, as the rulers reason when confusion is everywhere, name-calling become easy and it effectively in favour he who has the largest machinery to succeed better in name-calling.

He has all the control of the Military, the Police, appoints nearly all Heads of anything that matter and controls the largest chunk of the available wealth, can easily cause confusion and claim that the weaker party is trying to make the country ungovernable. And since the people are hardly that well-educated, once a lie is repeated to their hearing over and over again via federal power propaganda; it sooner than later becomes the truth to them. They defend it as Transformation Ambassadors or pay for paid adverts as Protectors of Nigeria’s democracy and sometimes they claim that claim that those who are for them are far more than those who are against them. For anyone, who is right-thinking, the Nyako impeachment did not come as a surprise. Verily too, whatever plot may be in the works against Al Makura is not going to end up as something new. Such events only represent a familiar chain of transaction when ruthless politicians seize the soul of a nation. It doesn’t matter what Nyako did or did not do, that counts for nothing when federal power decides that grabbing power in your state is a matter of do or die. Those who sponsored Nyako’s removal are not unknown, just the same way those who sponsored the removal of Adegbenro in 1962, were not unknown. They are in the seat of power in Abuja. After all if Nyako had remained in PDP, giving strength to the PDP number, no matter what his offence may be, it would simply have been treated as a family affair. But that is Nigeria’s familiar story, a story of history ignored, history repeated. A story of the worst governing the best. If the same grounds that were used to impeach Nyako, were to be taken as valid, should those who sponsored Nyako’s impeachment not have been removed a long time ago? It is settled in Law, that the greatest impeachable offence any President can commit is to grossly violate the Constitution he so swore to uphold and protect. Yet, this has been a celebrated and recurring decimal under the current administration, with not as much as a whimper. Not only has the current administration violated the constitution so manifestly, it has nonchalantly corrupted itself with arrogated power that it does not have, consistently making the country a laughing stock in the international community. Yet, these acts remain permanently under the carpet, in a high-powered desperate political conspiracy to actualise 2015 at all cost. This is what happens when desperate politicians have learnt no lessons and do not have the capacity to learn any. They care less about the number of evil plots they can commission to remain in power, as long as they can take flight once the ship capsizes. •Adegbite, Esq. is a Lecturer in the Faculty of Law, Obafemi Awolowo University, Ile-Ife.

THE NATION MONDAY, JULY 21, 2014

COMMENTS

HEN some weeks ago the National Conference arrived at consensus on some thorny issues of our federal order, many had heaved a heavy sigh of relief that we are about to make real progress as a people. This optimism should not surprise any keen watcher of contemporary events in the country especially since the idea of the conference came to public focus. Since then, we had been fed with scepticisms and outright doomsday predictions on the eventual outcome of that gathering. So when the news filtered that the conference had taken unanimous decisions on some of these vexatious issues of our corporate existence, not a few Nigerians were pleasantly surprised. Against all negative predictions, the conference agreed on rotational presidency between the North and the South and between the six geo-political zones of the country. It went further to approve same for the three senatorial zones of the states with respect to the governorship post. The various blocs or clearly identifiable cleavages in a local government are also to benefit from this rotation. As if these were not enough to rekindle hope on the good things to come, the conference went further and in unison, approved the creation of an additional state for the south-east zone specifically to bring it at bar with others and clean off years of marginalization and inequity in state structure. It also recommended the creation of additional 17 states across the country depending on their economic viability and population. The approval of an additional state for the South-east was very symbolic in more ways than one. By the language of the conference,

‘Gambari’s gambit was inevitably bound to hit the rocks as it was not worth more than the piece of paper on which it was presented. It was nothing but a sectional agenda to scuttle discussions on fiscal federalism, derivation and resource control. He may have succeeded. But it is a pyrrhic victory the country will continue to pay dearly for’

Emeka OMEIHE 08121971199 email: EmekaOmeihe@yahoo.com

Gambari’s five per cent gambit it was certain it wanted the additional state in the region to be given utmost priority even if it happens to be the only created now. This was considered very patriotic and harbinger of a new beginning. It is more so given that when the idea of the new state was mooted earlier, no less a group than the Arewa Consultative Forum ACF had shown vehement opposition to it. The forum had in a very widely circulated memo selectively addressed to northern delegates directed them to oppose the idea of an additional state for the zone advancing its own reasons. Given this attempt at goading northern delegates to oppose the idea, it was refreshing that some of those who spoke very favourably for the envisaged state were from that zone. That was something to rekindle hope that we may perhaps be parting ways with our attachment to sectional predilections that have been in constant competition with the central authority for the loyalty of the citizens. But this optimism was not to endure. Hardly had the conclusions of the conference become public knowledge than signs of dissent began to rear their ugly heads. Some of the northern delegates, who were part and parcel of the decisions, curiously began to sing different tunes, apparently having come under heavy reprimand from vested interests from their zones. They began moves to upturn the decisions of the conference hiding under the cloak of

HEN the legendary Nelson Mandela made his famous quote ‘there can be no keener revelation of a society’s soul than the way in which it treats its children,” he most likely had the humanity-indicting apartheid system in mind. Were he alive now and a Nigerian, he would have replaced the last strand of the sentence with ‘the way in which it allows the tobacco industry, merchants of death, to toy with the lives and destinies’ of its children. This becomes more pertinent as the question of whether tobacco should continue to exist as a consumable product alongside our glistening civilization, continues to bug us all. This also rears up on the heel of the recent public hearing on the National Tobacco Control Bill at the House of Representatives. Some of the core issues of the bill bordered on ‘Prohibition of Tobacco Advertising, Promotion, and Sponsorship’ (Article 13 of the WHO’s Framework Convention on Tobacco Control a.k.a FCTC). This piece will also focus on the aspect that pertains to marketing to minors, and one that has remained a thorny issue. No doubt, advertisement remains the core of marketing communication dating back to the days of yore when the beating of gongs to attract the attention of our folks in rustic communities to the present when our market women’s voices remain their invaluable asset. And, for an industry whose stock in trade remains cunningly convincing vulnerable consumers to be stuck for life with buying and consuming a product which sickens and ultimately kills them, deceptive advertisement remains at the core of the tobacco industry, and if allowed, they would do all they can to ensure that they retain that pattern, grave implications or not. Note the ugly statistics: half of current tobacco users will eventually die of a tobacco-related disease! Yet, even more repulsive, the tobacco industry deliberately targets young, impressionable persons with attractive messages, labeling, catch-phrases and youth-oriented events (sponsorships) such as sporting, musical and fashion shows. A panacea proffered by the current bill is to place comprehensive ban on all tobacco marketing, sponsorship and peg the age where youths can legally purchase tobacco products at 21. Existing researches already prove the relationships between point of sale advertising and displays, and increase in smoking among young persons. Closely related to this is the recommendation for an end to sale by sticks so as to limit access to tobacco products by young people (who most times may not afford buying by packets). It is a well known fact that the use of hard drugs and other dangerous substances are usually preceded by the use of cigarettes especially with the young and restless. Many young people, having access to the cheap, ubiquitous cigarettes, with their systems laden with nicotine and

non observance of the rules for decision making. But these could not go far for very obvious reasons. Not satisfied with the fate of their protests, especially against the backdrop that the conference was only left with one more committee report out of the 20, those members then hatched another plan. The report of the committee on devolution of powers was to provide the fulcrum for them to vent their spleen over their dissatisfaction with some of the earlier conclusions of the conference. Incidentally, that committee’s report contained such controversial matters as fiscal federalism, derivation principle and resource control. And with the demand by the oil bearing states for an upward review of the derivation revenue, the stage appeared set for a showdown. Discussions on these issues were explosive. The Elders Consensus Committee had to take some time off to allow tempers cool for a compromise position. When the consensus committee finally set out to address the plenary, it was the responsibility of Prof. Ibrahim Gambari to lead the presentation. His presentation embodied an increase in the derivation revenue from its current 13 per cent to 18. Gambari also spoke of a five per cent revenue allocation to be called “Fund for Stabilization, Rehabilitation and Reconstruction” principally for the Northeast, North-west and North-central to be shared at the ratio of three per cent and oneone per cent respectively. Hardly had he finished his presentation

than loud protests brought him down. While some argued that he betrayed the elders committee by inserting the northern zones as the only potential beneficiaries of the fund, others found the idea not only absurd but unjustifiable. The conference which was winding down before this incident had to adjourn abruptly. And as things stand, it is not clear whether that is the end of the deliberations of the conference. If that is the end, then the status quo remains on the issue of fiscal federalism and the awesome powers at the disposal of the central government that have been largely responsible for the bitter competition for power. But beyond this, questions have been raised regarding the propriety of setting out five per cent of the nation’s revenue for the three northern zones. The idea the elders had was that such a fund is to be applied to any part of the country confronted by the peculiar challenges envisaged in the proposal. But this has been trivialized by the way Gambari went about it. Ostensibly, the only reason for Gambari’s limiting of the fund to the northern states is the current insecurity in that part of the country wrought by the Boko Haram insurgency. Given that the insecurity is more pronounced in the North-east with Borno as the epicentre, it remains a puzzle why Gambari thought other northern zones should benefit from the fund to the exclusion of the zones in the south. It would appear that the so-called stabilization fund was a clever way to scuttle the demand for an upward review of the derivation principle. Not unexpectedly, there have been protests from both the South-east and South-south against the idea as these zones have suffered worse devastation when it comes to the physical harm done to their people on account of civil war or military invasion. There was the 30-month pogrom that left the former eastern region a ghost of itself. There were also the Odi invasion in Bayelsa State and that of Zaki Biam in Benue State where entire villages were mowed down for small security infractions without any recompense. Why ignore these cases? Gambari’s gambit was inevitably bound to hit the rocks as it was not worth more than the piece of paper on which it was presented. It was nothing but a sectional agenda to scuttle discussions on fiscal federalism, derivation and resource control. He may have succeeded. But it is a pyrrhic victory the country will continue to pay dearly for.

Tobacco profiteers and our children By Betty Abah yearning to attain more ‘highs’, easily ‘graduate’ to those substances. It is then necessary to limit this easy access and prevent that dangerous possibility. Even with this indicting finds, Big Tobacco continues to target the lungs of young people, indeed young Africans. It is an open secret that due to stringent legislations in Western countries, the bulk of tobacco marketing has shifted to the developing nations and Nigeria is one of the topmost ‘customers’ of tobacco multinationals. In their crooked logics, they would need to replace their lost grounds, replace the dying populations of addicted smokers (many already down with tobacco-induced cancer, heart diseases and other terminal ailments) in the West with young, agile persons here. With current trend which shows that one billion sticks are smoked in Nigeria annually, we are already contributing casualties to the six million lives which the WHO says are killed every year due to tobacco use. Saying therefore that a large percentage of our promising youngsters are represented in that grim statistics is simply an understatement. Think of a soulless business and the tobacco industry comes to mind! Indeed, so angered are governments all over the world with ‘Big (‘Damaging) Tobacco’s contribution to degeneration of public health especially with their targeting of the most productive mass of the population that they have put up the most stringent of policies to curb the smoky menace. India is a salient example: highest incidence of oral cancer in the world; One third of all cancer patients in the world; one out of 10 Indian adults dying of tobacco-related diseases. Faced with the gory statistics, the Indian government has now woken to its responsibility. Besides comprehensive smoke-free public places (which protects non-smokers from the harm of tobacco smoke), gory images of cancerous mouths, noses, necks, damaged lungs, perforated hearts among others now ‘grace’ the covers of cigarettes all in a bid to discourage smoking. In 2010, Australia dealt the last straw when it pioneered the ‘plain packaging’ policy whereby cigarette covers no longer bear any brand names or attractive logos other than badly distorted body organs so that smokers, not knowing what they were even about to puff, would reconsider their risky lifestyles. And so far, it has proved successful, witnessing, according to recent statistics, a 15 percent reduction in smoking nationwide. Increasing taxes will also take away youngsters’ buying

power as has been shown to have worked world over. Only last year, New York City which has the most comprehensive law on smoking, celebrated its 10 years of its smoke-free laws which has witnessed a 31 per cent decline in smoking since 2002, from 21.5 to 14.8 percent, while youth smoking has been cut by more than half since 2001, from 17.6 to 8.5 percent. This law owes its success to the cigarette tax which stands at $5.85 per pack, the highest in the USA. Given the above grim facts, it behoves on our lawmakers therefore to heed the voice of conscience and pass this important bill that would both secure public health and our children’s future. It is a battle between public health and soulless profiteers. And, lest we forget, a country is deemed great that truly cares about its c h i l d r e n, a n d t h e m o s t v u l n e r a b l e . A l r e a d y , t h e international child’s rights group Save Our Children shows Nigeria cocooned near the bottom in the line-up of child-friendly nations owing to gross neglect and ramshackle healthcare system. Already the world’s searchlight is on Nigeria over the Chibok girls’ abduction saga, and Boko Haram’s murderous rage which do not spare children. Already, we are wrestling to disarm many of our young people from violence in the wake of the insurgency’s nightmare. We need no dibia to tell us that we can’t stomach any more epidemic, no, not with an already comatose healthcare. This bill must by all means make a difference. History’s big eyes are set on us. We must do all we can to protect, to salvage our future. We must summon the courage to go the way of other countries such as Kenya, South Africa, Ghana, Togo among others that passed effective smoke-free laws. We must summon the courage to say ‘no, not again, not our children, soulless Big Tobacco’. • Abah, a child’s right and public health advocate, writes from Lagos

‘It is an open secret that due to stringent legislations in Western countries, the bulk of tobacco marketing has shifted to the developing nations and Nigeria is one of the topmost ‘customers’ of tobacco multinationals’

AWC 2014

Pg. 24

Pg. 41

AWC 2014

THE NATION MONDAY, JULY 21, 2014

BUSINESS THE NATION

E-mail:- bussiness@thenationonlineng.net

‘Mr. President’s word is a bond. We must generate more power; we are prepared to assist all our agencies in making sure that the ball keeps rolling. We can’t afford to fail in our duties.’ •Minister of Power, Prof. Chinedu Nebo

ISSUES

CEO

‘How identity management will aid foreign investment’ - P. 27

Stable power: Still a long way to go - P. 32

News Briefing AfDB issues N160b local currency bond THE African Development Bank (AfDB) has completed its maiden local currency issuance bond in the country’s capital market. The bond issue came after the lender received the Securities and Exchange Commission (SEC’s) approval to establish a N160 billion Medium Term Note (MTN) Programme and “No Objection” to start the book building process on June 6. –Page 26

Nigeria earns N55.4b from tobacco THE Nigerian Export Promotion Council (NEPC) has said the role of the tobacco industry in the country’s economy cannot be overlooked. –Page 26

‘Include insurance in your programmes, projects’ INSURANCE practitioners have asked the government to make insurance policy mandatory for its contractors. They also want it to be mandatory in the Ministries, Departments and Agencies’ (MDAs) budgets. –Page 35

DATA STREAM COMMODITY PRICES Oil -$117.4/barrel Cocoa -$2,686.35/metric ton Coffee - ¢132.70/pound Cotton - ¢95.17pound Gold -$1,396.9/troy Sugar -$163/lb MARKET CAPITALISATIONS NSE -N11.4 trillion JSE -Z5.112trillion NYSE -$10.84 trillion LSE -£61.67 trillion RATES Inflation -8% Treasury Bills -10.58%(91d) Maximum lending -30% Prime lending -15.87% Savings rate -1% 91-day NTB -15% Time Deposit -5.49% MPR -12% Foreign Reserve $45b FOREX CFA -0.2958 EUR -206.9 £ -242.1 $ -156 ¥ -1.9179 SDR -238 RIYAL -40.472

• From left: Executive Director, Mainstreet Bank Limited, Dr. Chris O. Itsede; GMD/CEO, Ms Faith Tuedor-Matthews; Chairman, Alhaji Gambo Ahmed and Group Company Secretary Michael Madoghwe during the bank’s 2nd Annual General Meeting (AGM) in Lagos.

Lawyers urge govt on Shippers’ Council’s funding

Govt may stop Katsina energy project over insecurity L T

By Oluwakemi Dauda

HE Federal Govern ment is planning to stop the renewable energy project in Katsina State because of insecurity in the state, the Minister of Power Prof Chinedu Nebo has said. Nebo told The Nation that the project in the Northeastern state had been delayed for over one year due to the security challenges, lamenting that even the technical person handling it was kidnapped. Under this prevailing circumstance, he said the government was left with no option but to stop the project. He said: ‘’There are problems relating to the imple-

By Akinola Ajibade

mentation of the renewable energy projects in Katsina. “The major one is the kidnapping of the technical person handling the project a year ago. Those assigned to handle the project said they cannot go ahead, unless the security situation improves. “The Ministry of Power has stepped into the matter. We want to cancel the contract, in spite of the fact that it is 97 per cent completed. But, again, it is the security that has forced us down.‘’ Nebo said the suppressed electricity demand is higher in the country what is being generated now. ‘’Right now, the suppressed

demand in the country is so huge, compared to what we are generating. If we quadruple our generation and distribution capacity, it would not be enough for the whole country. In view of this, we are encouraging more Nigerians to build more plants to improve the supply of electricity and grow the economy,’’ he added. He stressed the need to create an enabling environment to grow the sector, stressing that more investors would come when there is a stable economic climate. He said the more plants are built, the less the pressure on them to produce certain amount of electricity. He explained that power

from the grid was falling, due to gas problem in the country. “The sector is experiencing gas problem, a development that culminated in the ability of the power generation companies (GENCOs) to generate electricity and further distribute to the distribution companies (DISCOs),” he said. He said though the Ministry of Petroleum Resources, the Nigerian National Petroleum Resources (NNPC), operators and other relevant agencies had waded into the matter to ensure that enough gas was supplied to fire the turbines for optimal performance, this has not yielded results.

66% of privatised firms doing well, says BPE

BOUT 66 per cent of the privatised enter prises in the country are doing well while 34 per cent are not doing so well, the Director- General, Bureau of Public Enterprises (BPE) Mr Benjamin Dikki has said. He identified poor policy implementation by previous administrations as the factor responsible for the non-performance of some of the privatised firms. He said the Federal Government is trying to create the environment that would allow private sector investments in infrastructure through the institutionalisation of sound policies, liberalisation and delineation of the roles of the parties. He added that appropriate legal and regulatory framework, mitigation of risks

• 17 investors show interest in NITEL By Toba Agboola

and introduction of independent economic regulators limiting government to policy formulation, planning and technical regulation, among others are also important steps government is taking. According to him, 17 investors have signified interest to buy the Nigerian Telecommunications Ltd (NITEL) and its mobile arm, Mobile Telecommunications Ltd (MTEL), in the ongoing guided liquidation of the national telecom carrier. He said about 22 investors have shown interest but five out of them were left out because of lateness. He said: “When the time

for the submission of Expression of Interest (EoI) closed, we got 17 EoIs. Five were late and were not accommodated in strict compliance to our rules. “The 17 bidders are currently being evaluated and would go through the approval process. BPE would announce those that emerge on completion of the evaluation. They would be given a chance to do due diligence and then at the appropriate time, be asked to submit technical and financial bids.” Dikki said the guided liquidation was not auctioning of the various parts of the company. As for the N350 billion liabilities of NITEL, he said

the Federal Government in line with the Companies and Allied Matters Act (CAMA) has sought for protection so that the balance from liabilities would not go back to the treasury, noting that the liabilities are huge necessitating the choice of guided liquidation. He said: “We are selling the company as a business unit that must continue doing business in the telecoms sector, because NITEL is the first national carrier. We have done similar things before with the AFCON, the fertiliser company which is today known as Notore.” He said the government had opted for a guided liquidation option because the expected proceeds from NITEL would likely be less than its debts value.

AWYERS have urged the Federal Government to prioritise the funding and provision of legal teeth to the Nigerian Shippers’ Council (NSC). A former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Mrs. Mfon Usoro identified funding as a critical to the NSC’s survival, urging the government to address the issue for the ports’economic regulator. She said NSC needs to be armed with powers of the law to execute its statutory functions. She called on President Goodluck Jonathan and the transport minister to pursue the passage of the bills as soon as possible so that the Council can succeed. Also, the President of the Nigerian Maritime Law Association, Mr. Louis Mbanefo (SAN) and other legal experts called on President Goodluck Jonathan and the Minister of Transport, Senator Idris Umar, to pursue the issue of legal backing for the NSC as an important instrument for it to play its role well. The stakeholders said the passage of the Ports & Harbours and the National Transport Commission (NTC) Bills as important for the ports industry, as well as to aid the NSC operations as the ports regulator. He identified the need for law for the NSC, adding that it should have been the first thing. He said the government to expedite action on the issue. Another maritime lawyer, Mr Chidi Ilogu (SAN), however, said the council can operate as a Regulator with its current law, adding that the need for urgent passage of the necessary bills for the regulator to operate cannot be over-emphasised.

THE NATION MONDAY, JULY 21, 2014

BUSINESS NEWS SON registers 30 mobile phone brands

AfDB issues N160b local currency bond

HE African Development Bank (AfDB) has completed its maiden local currency issuance bond in the country’s capital market. The bond issue came after the lender received the Securities and Exchange Commission (SEC’s) approval to establish a N160 billion Medium Term Note (MTN) Programme and “No Objection” to start the book building process on June 6. AfDB was advised on the transaction by Stanbic IBTC Capital and Rand Merchant Bank Nigeria, a wholly owned subsidiary of the FirstRand Group. In a statement over the weekend, AfDB said it launched a seven-year, semi-annual fixed rate coupon bearing bond structured with a threeyear grace period preceding a fouryear amortising profile on principal. It also introduced a new instrument into the domestic market and adding another issuance into the supranational asset class. The bank raised N12.95 billion, issuing at a discount of about 75 bps below the comparable reference point on the government yield curve (Federal Government of Nigeria 27 Jan 2022) to price at 11.25 per cent. The book building started on June 20 with a closing date on July 4 and the settlement of the proceeds occurred on July 11. The AfDB’s MTN Programme is the first ever to be established by a supranational issuer in the Nigerian capital market, and the amount raised also represents the largest ever issuance, and also the longest maturity instrument in its

By Collins Nweze

asset class to be introduced to the market. Acceptance of the issue in the market was also further evidenced and demonstrated by the diverse category of investors to whom the securities were distributed (including pension funds, asset managers, banks and insurance companies). Treasurer,African Development Bank Group, Pierre Van Peteghem, outlined the importance and significance of the transaction to the bank as it marks its inaugural issuance in the Nigerian market, given the size and relative sophistication of this market and Nigeria being the bank’s largest shareholder. He added that “issuances in the local markets allow the bank to lend to its borrowers in local currencies thereby eliminating their currency risks; and to participate in the development of African capital markets by providing a new investment product to the local institutional investors.” The bank’s local currency bonds are structured to match the underlying projects to which the bank will lend the proceeds. The proceeds of the maiden NGN issuance will be lent to a client who will use the funds to finance local SMEs and some infrastructure projects. This issuance marks the AfDB’s third domestic bond issue in Africa, outside of South Africa. The bank previously issued two local currency bonds in Uganda in August 2012 and May last year. “The

•AfDB President, Donald Kabureka

Nigerian Naira issuance confirms the AfDB’s commitment to launch more local currency bonds across the continent, with proceeds used to provide local currency loans to the bank’s clients. This will enable us to better respond to client needs, particularly with respect to mitigating the foreign exchange risks posed by hard currency loans,” said Van Peteghem. As part of its Local Currency Initiative, the AfDB has issued, since 2005, some offshore bonds linked to the Botswana Pula, Ghana Cedi, Kenya Shilling, Tanzania Shilling, Uganda Shilling, Zambian Kwacha and the Nigerian Naira. The Bank currently has authorisation to issue domestically in over 10 African markets, including the CFA Franc zone, Zambia, Ghana, Egypt, Tanzania and Kenya. The AfDB is celebrating its 50th anniversary, with over 4,500 projects, amounting to over $118 billion since its creation in 1964, in various sectors. They include agriculture and rural development, financial intermediation, industry and manufacturing, and education and health.

From left: Vice President & Area Business Head, MasterCard West Africa, Omokehinde Ojomuyide; Executive Director, Operations & Technology, Keystone Bank, Mrs. Yvvone Isichei; Divisional President, Sub-Sahara Africa, MasterCard Worldwide, Daniel Monehin and Chief Information Officer, Keystone Bank,Femi Aderibigbe, during a business visit by MasterCard to the bank in Lagos ... at the weekend.

Nigeria earns N55.4b from tobacco, says NEPC By Muyiwa Lucas

• NEPC Chief Executive, Olusegun Awolowo

HE Nigerian Export Promo tion Council (NEPC) has said the role of the tobacco industry in the country’s economy cannot be overlooked. In a document exclusively obtained by The Nation, the NEPC

observed that when viewed against the background of the statistics from the data for beneficiaries of its Export Expansion Grant Scheme (EEGS), the tobacco sector has contributed immensely to the economy. For instance, the NEPC said between 2006 and 2012, there was an accumulated inflow of foreign exchange worth N55.386 billion from the sector. The inflow also reflects an increase of 1,055.77 per cent from N1. 08billion in 2006 to N12.51billion in 2012. In the same period, the sector, according to the report, contributed N20.41billion in investment in capital assets and infrastructure development. There is also an increase of 89.08 per cent in

2012 to the tune of N2. 96billion as against N1. 57billion in 2006. While in the area of employment generation, the sector recorded an increase of 11.64 per cent in 2012 with a total of 1,237 employees as against 1,108 employees in 2006. “The Council hereby restates that the tobacco companies have significantly contributed to the growth of the nation’s economy in line with the Transformation Agenda of the present administration, especially in the areas of employment and revenue generation,” the NEPC report said. Investigations into the operations of the British American Tobacco Iseyin Agronomy (BATIA) revealed that from tobacco farming alone, about N1 billion is generated into the economy of its host community of OkeOgun, in Oyo State.

GROUP, Phone and Allied Products Dealers Associa tion (PAPDA), Computer Village, Lagos has debunked the insinuation that the group encourages the trading of sub-standard mobile phones in the market, saying that its partnership with the Standards Organisation of Nigeria (SON) has led to the registration of over 30 phone brands in the market. Its President, Mr. Ikye Onwe, who spoke at the weekend in Lagos, said sequel to the Memorandum of Understanding (MoU) it signed with SON to rid the market of counterfeit products, PAPDA provided an office for SON officials for the establishment of a market desk, adding that two workers of SON was subsequently deployed to operate from the office in order to mutually fight substandard products. Specifically, to support the agency’s zero tolerance on sub-standard phones, PAPDA facilitated a joint trip for SON’s top management to China where they visited some phone factories and met with over 65 owners of phone factory to ensure that these factories no longer manufacture and import sub-standard phones into the Nigerian market. Onwe also explained that the association and all importers of mo-

By Lucas Ajanaku

bile phones in Computer Village agreed that from July 1 this year, all mobile phones that would be sold in the country would be products that have been duly registered with SON. These products must have brand name marks. According to him, mobile phones such as “Nokia and Samsung products will not be stocked and displayed in stores owned by PAPDA’s members”. In addition, the group agreed that all mobile phone brands sold in Nigeria market need to have a functional service centre which would cater to “after sales services”. PAPDA has, however, warned that all products that lack these requirements would be confiscated and destroyed by the “joint taskforce of the SON and PAPDA”. Some of the mobile phone brands that have passed SON’s blue litmus test and registered are Gowin, M’horse, Bontel, XGP, Tukaro, Q7, and Soloking. Others are U-Boss, Oktec, Maxtel, BML, MBO, Teemur, Aus, Mi-phone, Opsson, and MTK. Admet, H-mobile, DXD, Teenic, Simba, Ucall, Treesky, and Gionee and Kenxinda are the others.

‘PPP vital to bridging infrastructure deficit’

AGOS State Commissioner for Works and Infrastructure Dr. Femi Hamzat has said no nation can build its infrastructure without private sector participation as it has been done in countries such as Brazil and Malaysia. Hamzat, who spoke against the backdrop of a World Bank report, said the nation needed funding far in excess of $97billion to bridge her yawning infrastructure gap. He lamented that Nigerians are curiously wary of getting loans even when the state government has always put it into good use such facility. He said: “United States of America has over $16 trillion debt and that is what they use to build and upgrade their infrastructure but here we don’t like owing.” He said though the World Bank gave the huge figure on road construction, the cost is still outside of the construction of waste water collectors and drains that must go with road construction. The commissioner said the challenge of infrastructure provision include the negative attitude of people who abuse the facilities provided by government for the majority of the people. He regretted that Nigeria is the only oil producing country in the world that move the commodity

By Okwy Iroegbu-Chikezie

by road noting that about 90 per cent of fuel tankers go through Lagos roads. On the Lagos/Badagry expressway, he said the 52.9 kilometre10 lane road is on track, noting that the construction is designed to discourage traffic build up on the expressway. He said this is more so when at a point the contractor needed 1.2 million cubic feet of sand which is about 300,000 tippers of sand. Hamzat regretted that the Federal Government has not been supportive of the project which is a federal road. He said the state has spent about N59 billion on the road, adding that the Federal government agreed to only pay N51 billion which they are yet to pay. He urged the Federal Government to pay the debt which he said is affecting the construction of other roads in the state. He said the government is correctly constructing 211 roads across the state and has spent N580 million in changing of Eko Bridge bearing which is a major traffic artery in the state. Noting that if the state had failed to act when it did it would have been disastrous for the public.

Firms urged to review energy usage

N industrialist, Dr Hyke Ochia, has urged food and drink manufacturers to review their energy usage to reduce cost of electricity. He said the average energy bills could rise by anything between 20 and 30 per cent of the production costs due to high energy tariffs. Ochia, who is Chairman, Southsouth, Southeast Chamber of Commerce, said the challenges facing the industry are growing more difficult every day, following increase in energy bills. He said increased energy costs are squeezing their margins, adding that it meant less cash to invest. He said food and drink manufacturers should evaluate solutions in the light of rising energy costs because industry needs to audit its expenditure in terms of energy supplies and procurement, risk management, usage and costs. These required a look at everything from the potential for onsite energy generation to

By Daniel Essiet

advice on energy efficiency. For businesses faced with steep rises in energy costs, investing in renewable energy projects can generate significant savings and help them remain competitive. But the rising cost of such programmes themselves represented an increasingly daunting barrier for food processors seeking to generate more of the power used in their operations through renewable means. He urged the food industry stakeholders to raise its rate of energy efficiency improvements across the supply chain. Ochia said industry and other stakeholders need to seek new solutions to ensure energy systems underpin requirements of economic growth, sustainability and energy security. He said manufacturers would consider changing their energy source to a renewable supply.

THE NATION MONDAY, JULY 21, 2014

THE CEO Successive governments have over the years worked on a dependable database without success. The National Identity Management Commission (NIMC) is charged with creating an identity scheme that will stand the test of time. According to its Director-General/Chief Executive Officer, Mr Chris Onyemenam, a lawyer, in this interview with reporters in Lagos, a dependable identity management scheme will boost foreign direct investment (FDI) and curb fraud in the financial sector. LUCAS AJANAKU was there.

‘How identity management will aid T foreign investment’

HIS project has been on for a while, how feasible is the December deadline you have set? No, I have not set December; what I said is that there is a presidential directive and as you know that is a policy statement and we are all bound by it. The presidential directive is to the effect that all federal agencies that are involved in data capture services and also have identity authentication and registration unit, should, not could, align their activities and infrastructures with a view to switching over to the National Identity Management Commission (NIMC) infrastructure. The objectives of this directive, is in my opinion, of three folds. One is to optimise the use of scarce resources at that level that is dedicated to identity management. Another is to ensure that as a result of that, there are no duplications of efforts so that we can quickly establish a national identity data base which is a single version of the truth of personal information of Nigerians. Now, the value proposition of this, you can begin to describe this whether it is terms of security, financial services, access to credits, reducing dependence on cash, which may aid the cashless policy of the Federal Government in terms of providing subsidy to those who actually needs it and making safety and group work proramme work in several respects. The single version of truth of every individual in an important tool for ensuring that the programme is better planned and the targeted on the basis of those programmes are reached.That is the only way we can begin to appreciate the impact of this programme and its effects. And Mr. Presidents has given a clear directive that this is what we must seek to achieve by December. And I can tell you that right now, the cards have already been carbonised, the connectivity infrastructure is in place, what we are now doing is to connect the device and let it be in sync with the process of data capture so that over a short period, we can have a data base that is properly populated. That is what we are doing. What is the relevance of this card to fighting fraud in the financial sector? There are, at least, three biometric attributes in the card; one is the Irish, the other is the facial recognition while the third is the finger print. It is very difficult, very difficult for you to beat these three. When you then combine it with what you know, which is the PIN number, the normal PIN that we all know, and what you have which is a smart card which has public key infrastructure built into it. A set of encryption methodology combination has gone into it in ensuring that you cannot put your data card beside any of this smartphones and your data will be out. I hope you know that can happen. But it cannot happen with this card. That card cannot easily be hacked into because we have taken time to build a public key infrastructure around it that meets global best practice/standard. The card is 100 per cent poly carbonate. It has 18 security features, aside from the 19th one which is complex security feature on the chip, that chip is an 80 kilo byte chip. It is different from the normal ATM cards that you have seen. Your ATM card, you lose one today, they ask you: what is the number? They tell you it is no longer possible for you to use it, they give another one. Those are not the kind of cards we are talking about. I am talking about a card that if you want one manufactured, you have to come and take permission from the commission in anywhere in the world. I am talking about a card which features are recognised based on best global practice by the institutions whose job is it to recognise such. The International Telecommunications Union (ITU) for instance knows that we have this kind of card and there is a certain number that once they check the number against the device and it shows that number, they will know that the card is genuine anywhere in the world. That is the level of thoroughness and that is how meticulous

•Onyemenam

we have been in trying to drive this process because we know that there are “Oluwole’s (fake documents makers on Lagos Island) and we know that there are also people outside our own clime that make the Oluwole’s to thrive. Advance fee fraud is not committed by one person. It is committed by two people-the foreigner who is interested to make that happen: and the local that is also interested making it happen too. They build their theory, their proposition around deception for the person in Nigeria and quick business for the person out there who knows that this is too juicy to be true and still goes ahead to take part in it but with this card and with the National Identification Number (NIN) which means you don’t even need the card, it is possible for you to say I am the DG of NIMC, this is how you can find out. And so the foreigner is like caveat emptor (buyers beware). We now have an infrastructure to make the buyer say look, prove to me that you who you say you are and he/she will rely on that proof because the system complies with the global best practices, and then he can independently check the site. Part of the problems we have had about identity management is that foreigners get access to Nigeria’s identity documents, especially in international border communities in the sub-region. What measures are in place to guide against this? I am going to answer this question probably so you can appreciate the context in a slightly different manner. When we were in school we used to read about democracy

you remember, but there was a gentleman who said for forms of government let fools contest, whatever is best administered is the best. Why am I saying this? There are views that people have expressed severally that you must not allow non-Nigerians to be enrol; you must not do this; you must not do that. There are people that also say that our borders are porous. So what is the best approach? What are we interested in because when I am going to commit fraud, I don’t write it on my forehead whether I am a Nigerian or not. Our responsibility as a commission is to guarantee the identity of individuals and not to confer citizenships. So what we have done is to ensure that what the law says we should do is what we are doing. We know that there are some of these gaps that can help nonNigerians for instance to undermine our system, but as long as the identity is ascertained, because we have a system that will enable us to cross check, it will be easy to detect anybody who is claiming what he is not. Now let me go directly to your question because I wanted to make the context obvious. What we have done can be categorise into three. Number one we have a set of verifications documents that you can come with- birth certificates, certificate of indigeneships, international passports, drivers license and the old national ID to evidence that you are a Nigerian. We also know that there are traditional rulers and people who can says yes, I confirm this person. Besides that, the most

important thing which is the second category is the institutional support and the cooperation that we have. The Nigeria Immigration Service has deployed an officer to each of our offices so they help us to screen people that are suspected not to be Nigerians. They also help us screen people who have come forward with the so called legitimate evidence that they are legal residents. What are we doing in terms of ensuring that our workers are able to do the right thing? They are exposed to training. There is no worker that has not been exposed to two weeks of training on how to use our equipment. During the enrolment, there is a little bit of communication /interaction, question and answer that go on between the enrolment officer and the person to be enrolled. The idea is to hear you speak to be sure you are not someone from a different location that is trying to impersonate. Once that happened enrolment officer will immediately ask the person to the enrolment supervisor and the screening is triggered on that basis. And to make sure that the enrolment officer they do not compromise this process, they are screened and the screening is an ongoing process. We clear that you have genuine qualification, cleared from all appropriate agencies that you have not been convicted of any crime or accused of any criminal acts, we clear from the security agencies that you are not on the wanted list. We are going through all of that. Each person that is working for us goes through meticulous process and the idea is to ensure that you will do the best that you can. And at the back end there is a process that gradually enables us to ensure that we do what is called “call over” that is cross checking. And there is one more that I will not disclose. That one is IT-base and part of the solutions. There is no need for me to say it but when you experience it, when you go and enrol, you will see the difference between all other enrolments that you have been doing before and this one and you will probably get what I am saying. In general, what are the challenges confronting NIMC in implementing the project? The major challenge now is how to get Nigerians to enrol. We expected that by now the private sector involvement would have become significant to enable the citizens from all walks of life and location to participate. That disappointment means NIMC would continue to intervene until due process is followed to sort out that issue. So that translates to poor citizens’ turn-out. Though this is improving now but misunderstanding what we are doing and comparing it with what has been done in the past still breeds cynicism. So, this is a big challenge and costs a lot more to manage. The high cost of running the enrolment centre because stable power supply is needed, dearth of requisite human resource, poor salary structure and then ‘expectation gap’ - we are in a hurry to see the card issued because we are used to such things – it doesn’t matter whether the NIN is issued instantly, unlike in the pastbased on past experiences and the wrong perception of what identity management means. But the biggest challenge is the failure of the concessionaires to meet their obligations. There is the problem of duplication of identities of the citizens. What are the dangers you think this portends for the country? Duplication of identities is the bane of Nigeria’s identity management sector. From the ‘photo ID’ that can be obtained from any ‘business centre’ really, to various identification schemes in the Federal Government agencies where demographic and or biometric data for specific statutory reasons are collected, the problem is the same – ability to have more than ‘a single version of truth’ of an individuals’ personal information. This has been extended to include the growing concept of ‘self-identification’ and •Continued on page 28

THE NATION MONDAY, JULY 21, 2014

THE CEO

‘How identity management will aid foreign investment’ •Continued from page 27

others. Agencies such as the Federal Inland Revenue Service (FIRS), Federal Road Safety Commission (FRSC), National Health Insurance Scheme (NHIS), Nigeria Immigration Service (NIS), National Pension Commission (PENCOM), Nigerian Communications Commission (NCC) and others, have all collected data for different purposes from citizens. There are common aspects of these data feeds. The next step is to adopt the proposed harmonisation process as soon as possible. The common data sets have since been agreed to and what we need now is the best approach to fast track implementation. It’s not a healthy development that citizens end up carrying different identities for these different agencies in the form of identity cards. Even a business centre can produce a photo ID card for you in a couple of minutes. As soon as the National Identity Database System we have is populated with data and made available and others key into it, the problem would gradually be eliminated. That includes government agencies in the country that can be linked up for whatever purpose. There is a transition period during which all other government agencies will have to align with the NIMC system. This will now be December 31, 2014. The lack of an interoperability platform means there could be a high incidence of multiple identities. To curb the duplication of same and or similar activities all over, the President directed NIMC to ensure there is a harmonised environment for all stakeholder agencies and we are working on that. Any new project such as the one by CBN unfortunately will perhaps further deepen the wave of duplication of activities. But we are in talks with them now to ensure we achieve a seamless integration. On the dangers such duplication portends, it’s real. First is registration fatigue and second is the security issue. Not only is time and energy expended repeating what one agency has done but also the country’s scarce resource have been and are being spent unnecessarily. It also discourages and or delays the completion time for a seamless interoperability that would best serve the government and citizenry. A close examination will tell you, for example, that once you take part in the Joint Admissions and Matriculation Board (JAMB), your biometrics is already given to an institution. They need it to check examination and other fraudulent practices. It’s not debatable but JAMB does not have the statutory responsibility to keep it. That role is ancillary or incidental to its primary function. It is understandable because we do not as yet have enough data in the National Identity Database, that’s what we are working on and with time this will be in place. With the planned harmonisation, these issues will be sorted out pretty soon. Citizen’s biometrics everywhere is not good at all. Is NIMC in partnership with any foreign company or organisation over the identity scheme? Yes, we are. They are a group of Technology Service Providers typically referred to as Original Equipment Manufacturers (OEM). They include IBM, Oracle, HP, APS, Emerson, L1 Identity Solutions (now Morpho Trust USA), NetApp, Utimaco, Cisco, NXP, DataCard Group, Crypto Vision, to name just a few. But we are dealing with them along with their local partners. We also have local Technology Service Providers – Galaxy Backbone Plc, Omatek Computers, Digital Jewels, Dataflex, Interglobal Ltd, the Banks, Unified Payments Ltd, SageMetrics, to mention just a few. The commission has also partnered MasterCard and VisaCard as the first payment technology solutions providers for the rollout of the National Identity Smart Card project. The choice of MasterCard as the first to be used is hinged on the company’s show of commitment towards furthering financial inclusion through the reduction of cash in the Nigerian economy. They have rapidly discussed and met the conditions for making this happen and we have gone ahead to engage their local partners who are also li-

• Onyemenam

censed by both the CBN and the MasterCard. MasterCard has pioneered large scale card schemes that combine biometric functionality with electronic payments and the NIMC buoyed by its resolve to provide Nigerians with the very best, decided to capitalize on their wealth of experience in this field to make the National Identity Management System (NIMS) project rollout a sustainable success for the country and for the African continent at large. Unless there is any form of sabotage, the revenue streams that this strategy guarantees the NIMS will enable the NIMC become very much less dependent on the public treasury over time, just like NCC, for example. Let me hasten to add that contrary to the wrong information peddled by some persons for selfish reasons, the partnership with MasterCard is not an award of contract to them for the production of the National Identity Smart Card. It will not compromise the integrity of the NIMS project because the MasterCard is only a payment platform provider and they have been operating the same solution in Nigeria for years now. Our demographic and biometric data reside with us, and MasterCard can never have access to them. Some of the demographic data on the face of the National Identity Smart Card, used for the activation of the Card resides only with the ‘Issuer Processor, which for now is Unified Payment Systems Limited a Nigerian company owned by all Nigerian banks as I understand it. Considering the size of the country, what is your coverage now? We have planned to cover all local governments in the course of the year. This will not be an easy task and of course you know we require budgetary provisions and timely releases to be able to do that. But if the concessionaires decide to invest right away this would happen in three months and all that is needed is 13,000 enrolment units (mobile and fixed), we are about 75per cent away from that. May be an illustration will help here. Do you know how banks in Nigeria establish branches nationwide? And link them up such that from any branch you can conduct a transaction on your account? Each branch delivering the same services, same way, every

day since it was opened to the public for business and the customer friendly banking hall, looking similar if not the same (ambience)? With all branches having constant power supply, internet and dedicated network connectivity that is secure and up all the time? It’s not magic, its careful planning and it happens as planned. We are opening branches (enrolment centres) across the country and deploying, in phases, close to 2,000 enrolment systems. Already we have about 400 enrolment centres, including special centres and centres located in schools and government agencies. It takes meticulous planning and a regime of adherence to technical standards to establish an enrolment centre. We must get it right each time and in each location. One wrong data input and everything goes bad. At present, NIMC enrols about 60,000 persons a day and is working towards growing that number to 100,000 daily. Note that this is in a bid to meet the presidential mandate of December 31, 2014. So, how many people have you enrolled so far? We just started in October, it is about three million. When will those who have enrolled get the National Identification Number (NIN)? As soon as you present yourself to be enrolled at any of our enrolment centres. That’s it. The problem here is that we have come to see ‘identity management’ as ‘card issuance’. We need a shift in paradigm, away from that mindset of card issuance, to a new mindset – Identity Management, where then NI) is your identity. Please note that card issuance is only an aspect of the NIMS. We are not just doing another card issuance project and that’s why you have not as yet seen the cards. There are other components of the NIMS and this card happens to be different and designed for enhanced use of the national identity database which is the core infrastructure. Already the system is such that when you get registered, within seconds, you get your NIN. So when people ask the question: When am I going to get the card, it is in the mind set of the past when we were focused on card issuance. But the right mindset should ask the question: When am I going to get my

‘When we conclude the integration exercise for a national resource optimisation, based on a standardised process of data capture and management and sustain it, Nigeria will be a better place for all because it will unlock significant economic and employment potential; it will drive financial inclusion’

NIN? Honestly, this wrong perception that the ‘card is your identity’ is one very recurrent fraction accentuated by the cynicism carried over from the limited successes recorded on card issuance projects in the past especially the SAGEM project. Now, put in a very simple way, we do three things- first we issue NIN because the number is your identity. Secondly, we issue the National Identity Cards (NID), which has multiple purposes and third, we provide verification systems. When we conclude the integration exercise for a national resource optimisation, based on a standardised process of data capture and management and sustain it, Nigeria will be a better place for all because it will unlock significant economic and employment potential; it will drive financial inclusion; it will stimulate demand and domestic production in a peculiar way and this will in turn impact on gross domestic product (GDP) growth rate. Most people did not believe the telecom sector will be transformed with the GSM revolution. It happened. Most people do not believe the identity sector will be transformed, by God’s grace, it will happen. Its transformational impact is perhaps also comparable to what GSM has done and what the ongoing deregulation in the power sector will do. So, if we are talking of the National Identity (smart) Cards, please give us some time, a few more weeks and we will announce the launch date, the card has been designed, tested and is ready. The card personalisation process has been designed, profiled and tested. We are planning the formal launch of the card, to anchor efforts at ensuring the paradigm shift as best as we can since a couple of awareness campaigns have been planned. Maybe we are wrong in opting to launch the components of the NIMS at different times but preliminary survey reports indicate that the perception is gradually changing and the card launch might just help us clinch the shift in paradigm. Given our peculiar circumstances, there seems to be no one best methodology for handling the public cynicism of the past and the imperative of a paradigm shift away from card issuance to identity management. What people do not understand is that we are talking of a completely different type of card with multiple functions and we did not pick it up from any shelf anywhere in the world. It was designed, developed, built/ produced and tested specifically for Nigeria and is a currency grade card with three levels of security built into the manufacturing and personalisation processes. When we eventually start issuing these Cards there will honestly be a tremendous improvement in the way business is done in Nigeria. It will earn us further respectability globally and that’s the motivation. How many agencies of the government are you working with to harmonise the process? As far back as 2009, the NIMC set up the Harmonisation and Integration Implementing Committee and several government agencies, through which it has been involved in the NIMS project. Following a Harmonization and Integration Assessment study, the committee has to date, developed a Harmonisation Policy, a uniform Demographic and Biometric Standards and the Business Rules. There are sub-committees working on design issues and we are fast tracking this process now with a few pilot designs testing the data capture. We have sufficient capacity at the backend and have adequate fibre connectivity already in place. And as I mentioned before, the card is a multi-purpose card that will cater for some of the agencies’ integration needs, based on a global standard. These agencies include the NCC, the Independent National Electoral Commission (INEC), the Federal Inland Revenue Service (FIRS), the FRSC, the National Health Insurance Service (NHIS), the Nigerian Police Force (NPF), the CBN, the Economic and Financial Crimes Commission (EFCC), the Nigeria Immigration Service (NIS), the (PENCOM), the State Security Service (SSS), the Office of the National Security Adviser (ONSA), the Corporate Affairs Commission (CAC), the Office of the Head of the Civil Service of the Federation (OHCSF), the National Population Commission (NpopC), the Nigerian Prison Service (NPS) and a few others. These agencies are involved in one form of identity database management or the other, necessitating a transitional period that has to come to and end by December 31, 2014. Currently most of these agencies, 14 of them, have been connected to our fibre network CAC, NpopC, NIS, NPS, NPF, CBN, NCC,

THE NATION MONDAY, JULY 21, 2014

MONEYLINK

CBN may keep rates unchanged as MPC meets today

HE Central Bank of Nigeria (CBN) is expected to keep the interest rate unchanged at 12 per cent as the Monetary Policy Committee (MPC) meets today and tomorrow. If the MPC keeps the rate unchanged, it will be the 17th time in a row, it is taking such stance in an effort to control inflation and support the naira, a Reuters poll found. This week’s MPC meeting will be the first chaired by the new CBN Governor, Godwin Emefiele and will be closely watched by foreign

By Collins Nweze

investors and analysts. The former managing director of Zenith Bank struck a dovish tone on rates two days after taking office in June, saying he would seek a gradual reduction in borrowing costs, which have been stuck at 12 per cent since late 2011. That is much higher than the 5.75 percent in South Africa, which Nigeria overtook to become Africa’s largest economy earlier this year, and 8.50 per cent in Kenya.

Investors perceived his comments to mark a reversal of the hawkish policies implemented by his predecessor Lamido Sanusi that were credited with curbing inflation and supporting the currency, and sold bonds and the naira. Emefiele has since said he would wait until after presidential elections next year before making any rate cut, and all 20 analysts polled by Reuters in the past week expected the MPC to keep the benchmark rate steady at 12 per cent. “Emefiele has laid out plans to

cut rates in the medium term (but) we do not see any chance of this happening at July’s MPC, much less as inflation continues to creep up ahead of elections,” said Alan Cameron, London-based economist at Nigerian stockbroker CSL. Inflation rose to a 10-month high of 8.2 per cent in June, closer to the CBN’s upper limit of nine per cent, after rising for four straight months this year on higher food prices and excess liquidity. “Higher risk premiums and fiscal profligacy related to the elec-

Mainstreet Bank posts N13.2b profit

Financial inclusion: CBN praises Sterling Bank, Osun

TERLING Bank Plc and the Osun State Government have been commended by the Central Bank of Nigeria (CBN). This commendation comes as the apex bank advised other financial institutions to ensure that more Nigerians currently ‘unbanked’ are financially serviced. Speaking at a workshop organised for banks and other financial institutions on Financial Inclusion and Agent Banking, the CBN Assistant Director, Payment Policy & Oversight Banking Payment System; Mr. Olushola Agboola lauded the efforts of the bank and called for more to be done to ensure wider reach. Sterling Bank has empowered over 100 indigenes of Osun State and a larger number of others. Sterling Bank’s Head of Financial Inclusion, Mr. Richard Osungboye who also spoke at the just concluded Workshop in Oshogbo, said

with the collaborative efforts between the CBN and the Osun State government , the percentage of rural people yet to be captured in the financial system will reduce drastically. He particularly commended the Osun State government’s plan to adopt the “Cooperative Model” for the establishment of MFBs as approved by the CBN. Further plans of the Government include collaborating with the Microfinance Institutions (MFIs) & Deposit Money Banks to increase the number of Point-of sales [PoS] and Automated Teller Machines (ATMs) in all 30 LGAs, encourage civil servants and other individuals or companies that do business with it to use available financial institutions and establishment of Entrepreneurship Development Centers across the state. Oshungboye further stated that conducting regular seminars on financial inclusion, regularly monitoring the implementation of vari-

•Sterling Bank CEO Yemi Adeola

ous programmes in all states of the federation and undertaking necessary reviews will go a long way to achieving the goal of ensuring a larger percentage of our population are captured under the financial inclusion programme.

AINSTREET Bank Limited has consolidated its return to profitability as it announced a profit before tax (PBT) of N13.2 billion in its group financial performance for the year ended December 31, 2013. Speaking at the bank’s second Annual General Meeting which held at the weekend in Lagos, its Chairman Board of Directors, Alhaji Gambo Ahmed, said the result is the outcome of strategies the lender put in place to build confidence, optimise costs, improve operational efficiency and customer service delivery. In A statement, the lender said the financial result showed growth in all key financial indices. Gross earnings grew to a new high of N49.6 billion in 2013. The growth was largely driven by increased interest income as the bank significantly grew its loan portfolio by 63 per cent from N34.9 billion in 2012 to N57 billion in 2013.

MEMORANDUM QUOTATIONS Name

Offer Price

AFRINVEST W.A. EQUITY FUND ARM AGGRESSIVE GROWTH BGL NUBIAN FUND BGL SAPPHIRE FUND CANARY GROWTH FUND CONTINENTAL UNIT TRUST CORAL INCOME FUND FBN FIXED INCOME FUND FBN HERITAGET FUND FBN MONEY MARKET FUND • UBA BALANCED FUND • UBA BOND FUND • UBA EQUITY FUND • UBA MONEY MARKET FUND

168.45 9.17 1.12 1.19 0.69 1.39 1,652.18 1,108.44 121.26 1,087.30 1.3451 1.3635 1.0178 1.1855

167.01 9.08 1.12 1.19 0.69 1.33 1,652.18 1,107.62 120.38 1,087.00

GAINERS AS AT 17-07-14

SYMBOL

Monetary Policy Rate

12.0%

Selling (N)

154.73

155.73

Pounds Sterling

264.9442

266.6565

1.40

1.47

5.00

Money Supply (M2)

N15.9 trillion.

154.50

162.22

5.00

Euro

209.4116

210.765

3.01

3.16

4.98

Credit to private Sector (CPS)

N16.76 trillion

Swiss Franc

172.2668

173.3801

Yen

1.5201

1.5299

CFA

0.3021

0.3221

238.3011

239.8412

24.9375

25.0995

Riyal

41.258

41.5247

SDR

238.5318

240.0734

11.80

4.80

4.89

4.71

AGLEVENT

1.13

1.39

4.51

MANSARD

2.56

2.67

4.30

3.28

3.40

3.66

19.79

20.50

3.66

LOSERS AS AT 17-07-14

O/PRICE

C/PRICE

CHANGE

Primary Lending Rate (PLR)

16.5%

NIGERIAN INTER-BANK OFFERED RATES (NIBOR)

Tenor

Rate (%)

Overnight (O/N)

10.500

12.175

12.101

13.328

13.225

14.296

14.-85

65.60

62.32

-5.00

HONYFLOUR

4.49

4.30

-4.23

UBN

9.54

9.23

-3.25

JBERGER

65.00

63.00

-3.08

OANDO

25.65

25.00

-2.53

UAC-PROP

17.90

17.46

-2.46

R-DAS ($/N)

157.29

0.82

0.80

-2.44

Interbank ($/N)

162.75

17.23

16.85

-2.21

Parallel ($/N)

167.50

FIDELITYBK

1.98

1.94

-2.02

UPL

4.40

4.32

-1.82

ETI

Buying (N)

US Dollar

4.67

NEM

Currency

$110.44

11.26

CONOIL

8.2%

Oil Price (Bonny Light/b)

REDSTAREX

SYMBOL

CBN EXCHANGE RATES July 16, 2014

Inflation: June

9.90

PAINTCOM

NNFM

Amount Sold in ($) 305.4m 279.08m 342.8m

1.11

1.01

SKYEBANK

ECONOMIC INDICATORS

Amount Offered in ($) 350M 300m 350m

$38.3bn

WEMABANK

CCNN

Transaction Dates 7/14/14 7/9/14 7/7/14

Foreign Reserves

C/PRICE

FIDSON

RETAIL DUTCH AUCTION SYSTEM (RDAS)

CHANGE

O/PRICE

MOBIL

By Lucy Erekosima

Despite the significant growth in risk assets, the non-performing loan ratio (NPL Ratio) remained low at 3.66 per cent; well below the five per cent regulatory limit. The bank’s operational efficiency strategy yielded a 26.6 per cent growth in net interest margin. “We have achieved this result in spite of the socio-economic challenges and increased competition in the Nigerian banking industry. The result clearly reaffirms that the bank is on the right track of becoming a top tier bank,” explained the bank’s Chairman. Group Managing/Chief Executive Officer Faith Tuedor-Matthews said the lender had within the period under review, successfully migrated to the latest version of Finacle core banking application, which has significantly improved our ability to deliver service to our customers and introduce innovative products and services.

DATA BANK

Bid Price

1.3361 1.3635 0.9999 1.1855

tion will keep pressure on the currency and price growth and Emefiele and his team will not want to exacerbate that by loosening policy too aggressively,” said Matthew Searle, sub-Saharan Africa Analyst at Business Monitor International. “With the recent compression in fixed-income yields, as short-tenor maturities head south below the 10 percent levels, the risks of negative real rates on Nigerian assets will again resurface,” said Adedayo Idowu, economist at Vetiva Capital.

WAUA Yuan/Renminbi

GOVT. SECURITIES YIELD – SECONDARY MARKET

Tenor

July 4, 2014

July 7, 2014

T-bills - 91

9.98

10.00

T-bills - 182

10.00

10.07

T-bills - 364

10.22

Bond - 3yrs

11.26

11.37

Bond - 5yrs

11.36

11.41

Bond - 7yrs

11.77

11.86

FOREX RATES

THE NATION MONDAY, JULY 21, 2014

EQUITIES NIGERIAN STOCK EXCHANGE DAILY SUMMARY AS AT 18-07-14

DAILY SUMMARY AS AT 18-07-14

THE NATION MONDAY, JULY 21, 2014

EQUITIES

Investors await interim dividends T

HE boards of Nestle Nigeria Plc and Guaranty Trust Bank Plc are scheduled to meet this week to review the company’s halfyear earnings and possible returns to shareholders. Directors of the companies are expected to discuss dividend payments, regulatory filings at the Nigerian Stock Exchange (NSE) indicated. Both companies operate a twice-a-year dividend policy while they also operate the Gregorian calendar as their business year. Market analysts said they expected interim dividends and halfyear earnings from companies to stimulate mild rallies at the stock market. The equities’ market maintained a tight trading position last week as investors remained cautious. With average week-on-week gain 0f 0.14 per cent and almost flat turnover, the market situation was almost at a standstill. “Despite the lacklustre performance of the equities market in the first half, we retain our 10 per cent target return for the market by 2014 year-end, as we see opportunities for outperformance in some

•Nestle Nigeria, GTBank may declare this week Stories by Taofik Salako Capital Market Editor

counters with high volatility,” analysts at Cardinal Stone Partners stated in reference to earnings and dividend outlooks. GTBank is expected to declare interim dividend on its audited accounts for the six-month period ended June 30, 2014. At the meeting, the board of the bank is expected to deliberate on the operational reports and financial statements for the six-month period, after which the accounts would be forwarded to the Central Bank of Nigeria (CBN) for the apex bank’s review and approval. The accounts would then be sent to the Nigerian Stock Exchange (NSE). GTBank had paid an interim dividend of N7.36 billion, implying a dividend per share of 25 kobo in 2013. It later followed this with final dividend of N42.67 billion, representing a dividend per share of N1.45. The total dividend for 2013 thus stood at N50 billion, representing N1.70 per share. There are credible indications that

the bank might not go below the interim level in 2013. While the market awaits the second quarter earnings, the bank had recorded modest growth in gross earnings in the first quarter, though its bottom-line was suppressed by relatively higher interest and operating expenses. First quarter report of GTBank for the period ended March 31, 2014 showed that while gross earnings rose by 6.0 per cent, profit before tax slipped marginally by 2.0 per cent. Net profit after tax however inched up by 2.0 per cent. The performance of the bank across the profit and loss accounts and the balance sheet was tight with slight increases in key balance sheet items. Deposits rose by 3.0 per cent while loans and advances inched up by one per cent. Net assets rose by 6.0 per cent. Gross earnings stood at N67.58 billion in first quarter 2014 as against N63.86 billion in comparable period of 2013. Profit before tax dipped from N28.49 billion to N28.01 billion. Profit after tax

inched up from N22.56 billion to N23.11 billion. Earnings per share thus increased by similar ratio from 80 kobo to 81 kobo. Customer deposits rose from N1.44 trillion in first quarter 2013 to N1.49 trillion in first quarter 2014. Loans and advances increased marginally from N1.01 trillion to N1.02 trillion. Net assets rose by 6.0 per cent from N332.35 billion to N352.89 billion. Meanwhile, turnover at the NSE last week stood at 1.78 billion shares worth N19.90 billion in 25,974 deals as against a total of 1.83 billion shares valued at N19.39 billion traded in 26,521 deals in previous week. The financial services sector was the most active with 1.31 billion shares valued at N9.82 billion traded in 12,283 deals; thus contributing 73.6 per cent the total equity turnover volume. The conglomerates sector followed with a turnover of 138.12 million shares worth N873.59 million in 2,103 deals. The third place was occupied by the consumer goods sector with 136.58 million shares worth N4.651

billion in 3,464 deals. The three most active stocks were FBN Holdings Plc, Unity Bank Plc and Fidelity Bank Plc, which jointly accounted for 668.15 million shares worth N4.50 billion in 2,807 deals, contributing 37.60 per cent and 22.6 per cent to the total equity turnover volume and value respectively. Also, a total of 18,535 units of Exchange Traded Products (ETPs) valued at N483.425.26 were traded in 19 deals compared with a total of 836,683 units valued at N18.094 million traded in 21 deals in the previous week. In the debt segment, a total of 220 units of FGN bonds valued at N260, 072.36 were traded in two deals compared with a total of 10,600 units of FGN bonds valued at N13.64 million traded in two deals in the previous week. The All Share Index (ASI), the benchmark index at the NSE, recorded a week-on-week gain of 0.14 per cent to close at 42,891.82, pushing the aggregate market capitalisation similarly to N14.163 trillion. All the NSE sector indices appreciated during the week with the exception of the NSE Oil and Gas Index that depreciated.

25-Day Pricing Trend at NSE .x e d In e ra h Sl l A :x e d n I. 4 1 0 2 , 8 1 ly Ju 6 1 e n Ju : e in l e m iT

Fri W ed Mon Thurs n io ta N e h T: e cr u o S

Tues Fri W ed Mon Thurs Tues Fri W ed Mon 40000

40500

41000

41500

Champion Breweries floats N11.7b rights issue C HAMPION Breweries Plc will open application list for a N11.7 billion rights issue early August as the company moves to recapitalize its operations and optimize production capacity. Champion Breweries plans to issue 6.30 billion ordinary shares of 50 kobo each through a rights issue to existing shareholders on the basis of seven new ordinary shares for every one share they held as at May 7, 2014. The company has indicated it plans to sell the rights issue at N1.85 per share. Regulatory filing obtained at the weekend indicated that the rights issue will open on August 4 and close on September 10. The rights issue’s price represents a substantial discount to the company’s current market price of N10.17 on the NSE. The discount is in line with the traditional view of rights issue as a form of return to existing shareholders. The huge discount provides opportunity for existing sharehold-

ers who want to fully or partially renounce their rights to trade such renounced shares on the NSE. The management of Champion Breweries had earlier indicated that the company would soon overcome its challenge of capital inadequacies with the planned recapitalisation exercise. The recapitalization, according to the management, would enable the company to maintain and sustain the production of premium quality beer and non-alcoholic beverages that meet international brewing standards through the deployment of cutting-edge technology and application of human capital. The Raysun Nigeria Limited, a wholly owned subsidiary of Heineken International BV, recently became the new core investor in Champion Breweries following the sale of 513 million ordinary shares of 50 kobo each by

42000

Consolidated Breweries Plc, the previous core investor in Champion Breweries. The shares were crossed to Raysun on the floor of the NSE. As a result, Raysun now owns a 57 per cent equity stake in the total issued share capital of Champion Breweries. Chairman, Consolidated Breweries Plc, Prof. Oyinade OdutolaOlurin, said the sale of its equity stake in Champion Breweries was meant to provide the company with better financing opportunity. According to her, Champion Breweries has recorded losses over the years and has relied on financing from Consolidated Breweries in the form of inter-company debt. The associated interest burden of the intercompany debts on Champion Breweries has negatively impacted its profitability. She pointed out that it was is in the best interest of both parties for the company to be owned by Raysun, where Champion Breweries’ financing and restructuring needs can be more adequately met.

42500

43000

43500

UACN GMD is NECA president

ROUP managing director, UAC of Nigeria (UACN) Plc, Mr Larry Ettah, has been elected as the president of the National Employers Consultative Association (NECA) – the umbrella organization of employers in the organized private sector in Nigeria. Until his election as head of the foremost employers’ group in the country, Mr. Ettah was the 1st vice president of NECA. Mr Ettah, who assumed headship of the UAC Group on January 1, 2007, holds a B.Sc. degree in Industrial Chemistry and an MBA-Finance and Marketing, both from University of Benin. He is also a graduate of the renowned Executive Programme of Ross School of Business, University of Michigan, and also attended Executive Programme at Graduate School of Business, Stanford University, USA. The new NECA helmsman held

several senior management positions in UAC before his appointment as the managing director. He also chairs several quoted companies including UAC Property Development Company Plc; Chemical & Allied Products Plc; Portland Paints & Products Nigeria Plc and Livestock Feeds Plc. A member of the UAC board since 2004, Mr Ettah is expected to bring his wealth of experience as a distinguished corporate strategist and marketing expert with wide network and proven leadership skills to bear on the 57year old NECA, which was formed as a platform for private sector employers to interact with the government, labour, communities and other relevant institutions in and outside Nigeria for the purpose of promoting harmonious business environment that engenders productivity and prosperity for the country.

THE NATION MONDAY, JULY 21, 2014

ISSUES The citizenry expected improved power supply following the coming of the distribution and generation companies. They have been disappointed. Reason: epileptic power supply is still the order of the day. Assistant Editor EMEKA UGWUANYI reports.

• Power plant

Stable power: Still a long way to go G Background

OING by the rebasing of its Gross Domestic Product (GDP), Nigeria emerged Africa’s largest economy, but indices to support the supposed growth are not visible. Electricity, which is the key driver of industrialisation, remains a problem as demand outstrips supply. About 10 years ago, the Federal Government embarked on privatisation of the power sector as part of search of lasting solution solution. This culminated in the enactment of the Electric Power Sector Reform Act (EPSRA) 2005, which set the rules for transition to private sector control, such as the unbundling of the Power Holding Company of Nigeria (PHCN) into 18 successor companies, establishment of appropriate tariff regime and gas pricing, to encourage private investors. tin line with the law, President

Goodluck Jonathan launched the Power Sector Reform Roadmap in 2010. These activities led to PHCN’s privatisation and handover of the power assets of the successor companies to private investors in November, last year. But, contrary to the expectations,there is no improve-

‘

ments in supply. Rather, it has dropped by as much as 50 per cent, leading to massive load-shedding and blackout in all parts of the country. Even the investors are disappointed. They are complaining that besides inadequate gas, which accounts for the drastic drop in power supply, what was

Industrial and residential have not seen any difference between the defunct PHCN and now private sector driven power sector. They said power supply has dropped below what it was when under government management. They noted that despite the poor power supply, they still are still paying the same tariff. They lamented the recent upward review of the tariff, which they are bound to pay even without commensurate supply

handed over to them is below what they expected.

Consumers' view

Industrial and residential consumers told The Nation that they have not seen any difference between the defunct PHCN and now private sector driven power sector. They said power supply has dropped below what it was when under government management. They noted that despite the poor power supply, they still are still paying the same tariff. They lamented the recent upward review of the tariff, which they are bound to pay even without commensurate supply.

Investors’ challenges

’

After the takeover of the assets of the defunct PHCN, the investors said they dis• Continued on page 33

THE NATION MONDAY, JULY 21, 2014

ISSUES ministrations neglected the sector until the regime of President Olusegun Obasanjo, who saw reason for substantial investment in power generation segment of the value chain. "The existing infrastructure was dilapidated, there were no new investments in the sector within the mentioned decades, therefore, we cannot expect the new investors to perform magic in terms of improved supply. They have just spent over six months on the sector's management, and this period is too short to assess them because they have to put the infrastructure in place and this cannot be accomplished in months. "For energy to improve to the expectation of Nigerians, it will take at least five years, and within these five years, the investors have to massively invest in generation and distribution. Investors in distribution companies need at least N60 billion investments yearly for five years to make reasonable mark in supply while investors in generation need a minimum investment of $1.5 billion to generate reasonable and sustainable power." He said that although transmission segment is managed by a private sector company, Manitoba Hydro International of Canada, government has to make huge investment in the area.

• Continued from page 32

covered that the privatisation was based on wrong assumptions because there was cash crunch in the sector and that the financial institutions were not willing to fund the projects, having committed about N1 trillion, which they (the lenders) were doubtful of recovering. The investors also felt bad that their projected revenue fell below expectation. They said cash collected from power customers was lower than expected and as such could cover their. They explained that solutions to the issues proposed by the regulatory agency in the sector had not achieved results. They said the GENCOs and DISCOs face deviations between their projected business plans and the actual situation. The deviations, they said, are bigger than what can be handled within the limits of the official assumptions in the privatisation. The exposure of the financial sector to the power sector, they said, is heavy and the uncertainties arising from it is increasing their (financial sector) risk perception, which makes additional financing to cover the gaps identified in the sector difficult. They noted that the expected change would hardly come if there is no change in the way the situation is evolving. The investors explained that, according to the reform agenda, the DISCOs purchased electricity from the GENCOs through a special business unit (SBU) - the Nigerian Bulk Electricity Trading Plc (NBET) - a public liability company owned by the Federal Government. The DSICOs sell the electricity to consumers and collect payments for their service and pay the GENCOs, unfortunately not all electricity purchased from GENCOs is sold and not all the money is collected because of losses - that is, the Aggregate Technical, Commercial and Collection (ATC&C) losses. This development, they said, constitutes serious disruption because their business plans are based on certain assumptions. They lamented they discovered that the available electricity was less than what was announced by the Bureau of Public Enterprises (BPE) during bidding, adding that the power sector regulator, Nigerian Electricity Regulatory Commission (NERC) said it would be carrying out tariff adjustment regularly to meet their business plans and compensate for the collection gap from the consumers but that hasn't happened. Since the DISCOs’ revenues are significantly lower than expected, they are unable to pay in full their bills to the Market Operator (MO), which consequently makes the GENCOs receive remarkably less revenues. The MO holds brief for the NBET, whose job is expected to begin in the third quarter of the year when the Transition Electricity Market (TEM) will start. The implication of lower revenue generation by the DISCOs is that GENCOs' owners have to make capital injections higher than expected to cover capacity recovery plans (CRP) and capital expenditure (CAPEX) as well as operational costs, because the DISCOs couldn't meet their financial obligations to the generators. There is higher financial stress for new owners of the power assets, the investors said. The Interim Market Rules (IMR) introduced by NERC to assuage the problems faced by the investors also have not made any positive impact, it was learnt; this is because there is no bankable guarantee that the investors could use to get the additional financing from financial institutions to cover the gap that exist in the sector. The consequences of the challenges are that the DISCOs will slow down on their electrification expansion, which will result in lower growth rate for access to electricity than expected; they may introduce more expensive tariffs to end-users, especially those that feed from embedded generation (generation outside the national grid); and slow down on the ATC&C loss reduction plans. The GENCOs on the other hand, will slow down their CRPs, which will result in significant drop in electricity supply to customers and lack of appetite for increased investment by the private sector as well as foreign direct investment (FDI). The investors also identified power equipment and facilities vandalism as a major challenge, energy theft, energy wastage by customers, lack of urban planning where people build along the right of way of the utility companies and under high

•Prof Nebo

•Chairman NERC, Dr Sam Amadi

Still a long way to go tension lines and unilateral decision of government and organisations while carrying out projects within the DISCOs.

What the investors are doing In order not to lose their investment and also retain confidence of the customers they serve, the investors are taking investment decisions and strategies on how best to improve delivery, their revenue generations and expand their network. For instance, electricity demand in Ikeja Electricity Distribution Company (IKEDC), according the Managing Director, Abiodun Ajifowobaje, is 1250 megawatts (MW) while it gets only 329MW from the national grid. The Eko Electricity Distribution Company (EKEDC) requires 700MW while it gets about 200MW. Other DISCOs have different consumption demands but certainly none gets 40 per cent of its demand from the national grids. They also have different infrastructural gaps that needed to be addressed, such as distribution transformers, feeders and meters to position for efficiency. The owners of Geregu and Ughelli Power Generation Companies, Forte Oil Plc and Transcorp are investing to expand the assets. To improve on supply, the new owners of Eko Electricity Distribution Company (EKEDC) said they would invest N42 billion in five years to reinforce the operation of the company, adding that they have secured $150 million for network expansion and improvement. The company also plans N6.79billion investment in pre-paid metering. The Managing Director, EKEDC, Dr. Oladele Amoda, said: "The new investors in the company have secured about N25billion ($150million) loan from a bank to be invested in network expansion, metering of power consumers developmental projects and reinforcement of the network. "In the short run, we are investing about N1.3billion on metering while a total of N6.79billion will be invested within the next five years to promote effective billing and adequate metering. Our greatest challenges after the take-over include severe capacity limitations in most of the transmission stations to facilitate delivery of improved power supply to power consumers," he said, urging the government to enact legislation that would prevent vandalism, energy and cable theft. Amoda said the company was discussing with some firms to generate 400MW for the customers of the company, but with

‘

special consideration for the industrial customers that need uninterrupted power supply which are also prepared to pay more. The management of IKEDC is also working with its technical partners, Korea Electric Power Company (KEPCO), to ensure meter accuracy and energy loss reduction. Ajifowobaje said: "IKEDC is working with KEPCO to provide a strategic solution to metering that takes cognizance of the needs of all customers within the network. I am happy to report that with the adoption of new technology we have made substantial progress in this regard and remain committed to ensuring that all our customers are adequately metered." He said the firm was discussing with private sector generators to get supplies through embedded generation to complement what it get from the grid. “KEPCO is working to double generation from Egbin Power Generation Company in the next few years. Egbin's installed generation capacity is 1320MW while a fresh plant that will generate 1350MW is being planned. Substantial renovations have taken place in the company while reinforcement of equipment and facilities are ongoing,” he said. On gas supply inadequacy, the Group Managing Director of Nigerian National Petroleum Corporation (NNPC) Andrew Yakubu said the corporation is building new pipelines to supply gas to thermal power stations, while most of the vandalised trunk pipelines have been repaired and are working. He noted that a chunk of domestic gas production is dedicated to power and assured that with the completion of the pipelines under construction, gas needs will be substantially met.

Stakeholders' view Members of the organised private sector, including the Manufacturers Association of Nigeria (MAN), Lagos Chamber of Commerce and Industry (LCCI), and operators of small and medium scale enterprises, confirmed they haven't seen improvement in power supply from the utility companies. The Chairman, Infrastructure Committee, MAN, Reginald Odia, said their members are optimistic that the new investors would fix the power problem but that would not come quick because the sector has been neglected for decades resulting in lack of infrastructure and dilapidation of existing ones. Odia said: "For over 34 years, the power sector has been in deterioration. Past ad-

The available electricity was less than what was announced by the Bureau of Public Enterprises (BPE) during bidding, ... the power sector regulator, Nigerian Electricity Regulatory Commission (NERC), said it would be carrying out tariff adjustment regularly to meet their business plans and compensate for the collection gap from the consumers but that hasn't happened

’

What the government should do Stakeholders said the government should have an understanding with the local and international financial institutions that supported the privatisation and investors because they are suffering. The understanding, they added, would open an additional window of financing from such institutions. The government, they added, should establish a 'tariff increase roadmap' within feasible limits and far beyond the multiyear-tariff-order 2 (MYTO II) tariff review terms and firm it up through proper legal instruments. MYTO is the current tariff system used in billing electricity consumers in Nigeria, which is holistically reviewed every five years, and the system is in its second phase. Having started in 2008, the first phase ended in 2012. The stakeholders suggested that debts arising from interim market rules (IMR), which guide the power sector operations, from gas, tariffs, among others, need to be converted into enforceable legal instruments. Because the privatised companies need access to financing to cover the revenue gap apart from what investors have already committed during the privatisation, it wouldn't be bad for the government to organise a stabilisation fund from which DISCOs and GENCOs could have this additional financing. The size of the fund shall arise from a thorough independent study with government's guarantee, they added. However, there are some factors that militate against some of the proposals. With the poor power supply level, tariff increase may not go down well with consumers and also the government doesn't want anything that would have it deeply involved in the management of the power sector. The government said in view of the critical role of transmission in the supply chain, it has made provision for rehabilitation; upgrade and expansion of the transmission infrastructure across the country for wheeling of electricity to Nigerians. The government said it sought external funding for the Transmission Company of Nigeria (TCN) from the African Development Bank and the Eurobond, among others, and has released N300 million from the Eurobond to the company. It said in January, it approved N1.9 billion for the supply of 746 kilometres of aluminum conductor composite core reinforced (ACCR) for the re-conduction of the Onitsha-New Haven 330kv transmission line that runs up to Makurdi in Benue State, secured a loan of $170 million from the French Development Agency to boost power transmission in the Federal Capital Territory. These are just few of the interventions in transmission sector, the Minister of Power, Prof Chinedu Nebo said. He added that in compliance with global shift to renewable energy, the government is building 700MW hydro plant at Zungeru, and is planning construction of 3,050MW Mambilla hydro project, among other smaller plants, including the Gurara 2.

THE NATION MONDAY, JULY 21 , 2014

DUE DILIGENCE

HEMICAL and Allied Products (CAP) Plc recorded a well-rounded performance in the immediate past business year with improved bottom-line and stronger balance sheet. With double-digit growths in sales and profit, the paintsmanufacturing company sustained its zero financial leverage and further improved on its liquidity and financing structure. The improved bottom-line impacted positively on immediate and underlying returns to shareholders. In spite of 25 per cent increase in outstanding shares due to a bonus issue of one for four shares during the year, the company increased cash dividend by 15 per cent while equity funds rose by 13 per cent. Audited report and accounts of CAP for the year ended December 31, 2013 showed that sales rose by 18 per cent while pre and post tax profits grew by 26 per cent and 27 per cent respectively. Nearly all financing, profitability, efficiency and liquidity ratios underlined improved performance.

5-Yr Sales Trend 7000 5231

5000 Nm

4313 3645

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â&#x20AC;˘Chairma, CAP, Larry Ettah

large increase in shares dimmed the sustainable dividend outlook with a dividend cover of 0.90 times in 2013 as against 1.02 times in 2012.

CAP: Better colours Taofik Salako Capital Market Editor

liabilities/total assets closed 2013 at 55.5 per cent as against 58.5 per cent in previous year. Efficiency Average cost efficiency improved during the year as the company reined in relative cost of sales while improving employee productivity. Average cost of sale per unit of sale decreased in 2013, providing early headroom for profit growth. Overall outlook suggests improved productivity alongside the improvement in cost efficiency. Total cost of business, excluding finance charges, dropped from about 72 per cent in 2012 to 69.2 per cent in 2013. Average number of employees stood at 213 persons in 2013, a marginal increase on 210 persons in the previous year. Meanwhile,

total staff cost increased from N375.13 million to N449.32 million. This implied average staff cost per employee of N2.11 million in 2013 as against N1.79 million in 2012. Correspondingly, average contribution of each employee to pre-tax profit increased from N7.91 million to N9.80 million. Profitability

CAP recorded appreciable improvements in both underlying and actual profit and loss items. Substantial growths in sales and profit translated into equally significant increase in cash distributions to shareholders. The congruence between outward profit and loss items and key indices indicated sustained uptrend for the company. Total turnover rose by 18.4 per cent from N5.23 billion to N6.20 billion. Cost of sales was moderated at N3.04 billion in 2013 as against N2.63 billion, representing 2012 an increase of 15.5 per cent. Gross profit thus 12 months rose by 21 per cent from N2.60 billion to N3.16 billion. Total 5,156 operating expenses rose by 11 per cent 5,231 from N1.12 billion to 2,632 N1.25 billion. The absence of financing 2,599 charges counterbal1,122 anced the marginal

Fiscal Year Ended December 31 Nmillion

2013 12 months

% change

Profit and Loss Statement Main Business Segment Total turnover Cost of sales Gross profit Operating expenses Interest and other incomes Finance expenses Pre-tax profit(loss) Post-tax profit (loss) Basic earnings per share(kobo) Gross dividend (Nm) Cash dividend per share (kobo) Net Assets per share (kobo)

6,179 6,196 3,041 3,155 1,245 177 0 2,087 1,417 202 1,575 225 181

19.8 18.4 15.5 21.4 11.0 -4.0 0.0 25.6 27.0 1.5 44.2 15.4 -9.5

184 0 1,661 1,116 199 1,092 195 200

414 480 59 2,555 3,035

0.5 6.3 -18.5 5.4 5.5

412 452 73 2,424 2,876

153 0 1,685 82 1,767

0.7 0.0 0.2 9.5 0.6

152 0 1,682 75 1,757

350.0 1,268

25.0 13.3

280.0 1,119

Balance Sheet Assets: Fixed assets Total long term assets Trade debtors Current assets Total assets Liabilities: Trade creditors Bank loans Current liabilities Long-term liabilities Total liabilities Equity Funds Share capital Total Equity Funds

2011 3 L-R: 2009-2013

Financing structure CAP's total balance sheet size increased slightly by 5.5 per cent from N2.88 billion in 2012 to N3.04 billion in 2013. Non-current assets had increased by 6.3 per cent to N480 million in 2013 as against N452 million in 2012. Current assets also improved slightly from N2.42 billion to N2.56 billion. Total liabilities was almost flat at N1.767 billion in 2013 as against N1.757 billion in 2012. The paid up capital had increased by 25 per cent from N280 million to N350 million. Shareholders' funds also improved from N1.12 billion to N1.27 billion. Underlying financing ratios showed a stronger financing position. With zero gearing ratio, the proportion of equity funds to total assets improved from about 39 per cent in 2012 to 42 per cent in 2013. Long-term liabilities/total assets stood at 58.2 per cent as against 61.1 per cent while current

6196

6000

Liquidity

decline in non-core business income, which dropped from N184 million to N177 million. Consequently, profit before tax rose by 25.6 per cent from N1.66 billion to N2.09 billion. After taxes, net profit increased by 27 per cent from N1.12 billion to N1.42 billion. Unadjusted earnings per share stood at N2.02 in 2013, representing an increase of 1.5 per cent on N1.99 recorded in 2012. However, adjusted for the 25 per cent increase in outstanding shares due to a bonus issue of one for four shares in 2013, earnings per share actually increased by 27 per cent from N1.59 in 2012 to N2.02 in 2013. Gross dividend increased by 44 per cent from N1.09 billion for 2012 to N1.56 billion for 2013, representing total dividend per share of N2.25 for 2013 as against N1.95 distributed for 2012. However, net assets per share declined by 9.5 per cent from N2 in 2012 to close at N1.81 in 2013. Beyond the surface, underlying profitability indices improved considerably. Gross profit margin increased from 49.7 per cent to 50.9 per cent. Profit before tax margin also improved from 31.8 per cent to 33.7 per cent. Return on total assets stood at about 69 per cent in 2013 as against 58 per cent in 2012. Return on equity also increased from 99.7 per cent to 111.8 per cent. However, the

Fiscal Year Ended December 31

2013 %

2012 %

Financing structure Equity funds/Total assets Long-term liabilities/Total assets Current liabilities/Total assets Debt/Equity ratio

41.8 58.2 55.5 0.0

38.9 61.1 58.5 0.0

Profitability Gross profit margin Pre-tax profit margin Return on total assets Return on equity Dividend cover (times)

50.9 33.7 68.8 111.8 0.90

49.7 31.8 57.8 99.7 1.02

Efficiency Pre-tax profit per employee (Nm) 9.80 Staff cost per employee (Nm) 2.11 Cost of sales, operating exp/Turnover 69.2

7.91 1.79 71.8

Liquidity Current ratio Working capital/Turnover Debtors/Creditors

1.44 14.2 47.9

1.52 14.0 38.8

CAP emerged with stronger liquidity, signposted by positive working capital and stable financial coverage for immediate liabilities. Current ratio, which measures the financial agility of a company by relating current assets to relative liabilities, improved from 1.44 times in 2012 to 1.52 times in 2013. Working capital/turnover ratio stood at 14 per cent in 2013 as against 14.2 per cent in 2012. Debtors/creditors ratio stood at 38.8 per cent in 2013 compared with 47.9 per cent in 2012. Governance and structures CAP is a member of the UACN Group, Nigeria's largest conglomerate. CAP evolved from the British multinational, Imperial Chemical Industries Plc, which formalized its Nigerian operations in 1957 under ICI Exports Limited. In 1992, UACN acquired 35.7 per cent equity stake from ICI Nigeria to become the major shareholder in CAP. UACN currently holds 50.09 per cent equity stake in the company. CAP, the leading paints company, produces wide range of paints, with its flagship brand, Dulux, as a market leader in several categories. The board and management of the company remain unchanged. Mr. Larry Ettah, the group managing director of UACN, still chairs the board while Mrs Omolara Elemide leads the executive management team as managing director. The company generally complies will extant code of corporate governance and post-listing rules.

Analyst's opinion The performance of CAP is commendable. Recent expansions have continued to stimulate the top-line while increasingly efficient cost management strategy appeared to be providing additional impetus. The company appears to have found the right mix. Stable cost management strategy, deleveraged balance sheet and aggressive sales growth strategy should provide further impetus for future growth. It had during the year expanded its network with the opening of eight new Dulux colour shops in Umuahia, Dopemu, Akure, Jigawa, Abuja, Katsina, Aba and Ughelli while it also successfully executed the Dulux Mobile Room Makeover, an innovative marketing campaign in the Nigerian clime, to the delight of our teeming consumers. Besides, CAP commenced ink jet coding of its product packages, making adulteration of the product more difficult. The company should also be able to harness synergies from recent acquisition of Portland Paints and Products Nigeria by the UACN Group. Overall, there is reasonable basis to assume that the company would sustain its positive performance outlook.

THE NATION MONDAY, JULY 21, 2014

EQUITIES WATCH

Email: taofad2000@yahoo.co.uk

The 55th annual general meeting of Lafarge Cement Wapco Nigeria Plc was both historic and transformational. In this situational report, Capital Market Editor, TAOFIK SALAKO reports that besides the large turnout and conduct of the meeting, including the use and supervision of an electronic voting system, the epochal decision by Lafarge Group, the majority shareholder, not to vote on the special resolutions containing significant related party-interest matters might herald new corporate governance standards for the Nigerian capital market.

Lafarge Wapco and the emerging higher standards in corporate governance O

N Wednesday July 09 2014, Lafarge Cement Wapco Nigeria (Lafarge Wapco) Plc held its 55th annual general meeting at the City Hall, Lagos. The choice of venue was instructive. With more than a thousand shareholders, the imposing structure and large hall of the City Hall was reminiscent of the impressive profile of Lafarge Wapco; Nigeria's oldest and most diversified cement company. Lafarge Wapco's cement had helped in building the City Hall. The meeting was special, with its combination of ordinary and special businesses. The ordinary course of the meeting included presentation of the audited report and accounts for the year ended 31 December 2013, declaration of a dividend, election and re-election of directors, authorization of the directors to fix the remuneration of the auditors and election of audit committee members. But the unusual turnout at the meeting, including the presence of retail and institutional shareholders, was more about the special business than the ordinary business of the meeting. The meeting was expected to be turning point- the last to be held as Lafarge Wapco. Accordingly everyone was interested in the decision-making. With 11 resolutions of the special business, Lafarge Wapco sought to consolidate its impressive corporate and brand heritage into a new era of PanAfrican presence. The kernel of the special business was the proposal by Lafarge to consolidate its cement businesses in Nigeria and combine these with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc (Lafarge Africa). The consolidation would be done by transferring Lafarge's assets in South Africa and Nigeria to Lafarge Wapco. Under the transaction, Lafarge Group will transfer its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4 per cent and its equity stakes in three other cement companies in Nigeria-United Cement Company of Nigeria Limited (35%), Ashaka Cement Plc, (58.61%) and Atlas Cement Company Limited (100%) to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group. Lafarge Africa, which would retain Lafarge Wapco's subsisting listing on the Nigerian Stock Exchange (NSE), is estimated to have an initial market capitalization of over $3 billion (about N468 billion), making it the 6th largest Company on the NSE by market capitalisation. Contrary to known antics of majority shareholders to seek to influence such historic decisions, Lafarge demonstrated uncommon restrain and commitment to ensure minority shareholders decide the necessity, shape and course of the consolidation. While the Chief Olusegun Osunkeye-led board of directors could have joined the special business into a single, loosely worded resolution to give the majority shareholder, Lafarge, the opportunity to play around their whims on the consolidation, the company decided to list out each resolution separately for shareholders to decide. This was to be the first of a number of higher standards and decisions to show transparency and equity around this important decision. Thus, the first four resolutions related to the acquisition of the shares of the different entities and the shares and payments made in exchange. Resolution five sought approval for a new capital issue of N100 billion, while resolution six dealt with listing of additional shares on the NSE. The seventh resolution was on the increase in authorised share capital of the company from N2.287 billion to N5 billion and the reflection of this new capital in the Memorandum of Association. Resolution eight sought to increase the number of directors from 13 to 17 in order to reflect the enlarged nature of the business. Resolution nine was to include a provision that requires special resolution for set amounts of capital for capital expenditure, loans and guarantees. The tenth resolution was on the change of Lafarge Wapco's name to Lafarge Africa Plc, while the eleventh resolution rounded off by empowering directors to take necessary actions to effect earlier resolutions. With the national anthem sang, the chairman opened the meeting and the notice of the meeting was read. The chairman laid the annual re-

port and accounts to the meeting and the circulated chairman's statement - included in the annual report - was noted as read by shareholders as well as the auditors and audit committee's reports. Then the meeting moved to shareholders' comments, questions and observations; the ordinary business of the meeting went on smoothly as expected. Lafarge Wapco had delivered exceptional performance - net earnings grew by 92 per cent in 2013, prompting the board of directors to recommend a 175 per cent increase in the dividend per share to N3.30 for the 2013 business year as against N1.20 paid for the previous year. This underlined continuous growth for investors who had received dividend per share of 75 kobo for the 2011 business year. Turnover increased by 12 per cent to N98.8 billion as against N87.9 billion in 2012. Lafarge Wapco's new ready-mix concrete business contributed N1.6 billion to the total turnover. The company not only focused on increasing its turnover but has ensured that its operational costs were curtailed without compromising on service to its customers. The strong operational performance and efficient working capital management resulted in an increase in cash holdings of N11.5 billion. With the company being in a more cash positive position, it was able to reduce its debt by 42 per cent, paying off its variable rate medium term syndicated Naira and foreign currency loans ahead of tenor. Accordingly, the company witnessed a significant reduction in interest expenses from N5.5 billion to N3.8 billion and its debt position in 2013 closed at N21.5 billion comprising a fixed rate corporate bond and a power intervention fund loan. The debt-to-equity ratio halved to 23 per cent in 2013 as against 55 per cent in 2012. The audited report and accounts of Lafarge Wapco for the year ended December 31, 2013 showed that profit after tax grew by 92 per cent to N28.2 billion in 2013 as against N14.7 billion recorded in 2012. Profit before tax grew by 30 per cent from N21.3 billion to N27.7 billion. Consequently, basic earnings per share grew from N4.90 to N9.42; an increase of 92 per cent. One after the other, shareholders spoke extensively and glowingly on the performance of the company. Chief Olusegun Osunkeye, unarguably one of Nigeria's iconic boardroom leaders, was in his best element and gave several shareholders the long latitude to make their comments until the meeting started with a chorus of 'progress', 'progress'; indicating shareholders were satisfied and ready to vote on the resolutions. At a point, Chief Olusegun Osunkeye had to request the management staff of the company to stand up and rightly take the credit - a loud applause, for the positive comments from shareholders. Chief Sola Abodunrin, chairman, Ibadan Zone Shareholders Association (IBZA), noted the historic performance of Lafarge Wapco and commended the impressive year-on-year growth. Sir Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria (ISAN), also lauded the performance of the company assuring that shareholders would continue to support the management. In his remarks, Chief Timothy Adesiyan, president, Nigeria Shareholders Solidarity Association (NSSA), expressed satisfaction with the performance and the increase in dividend. Bishop Goodluck Akporie of Onitsha Zone Shareholders Association pointed out that Lafarge Wapco has continued to demonstrate that it values its shareholders. Shareholders' activist, Mr Nonah Awoh, spiced the meeting with his usual scrutiny and the contextual reference to Germany's 7-1 world cup mauling of Brazil. Nearly all shareholders agreed that the fundamental performance of the Company was satisfactory.

Since the report containing the special business was laid together with the ordinary business, shareholders also took advantage of the opportunity to comment and seek clarifications on the emergent Lafarge Africa. All shareholders agreed that the consolidation was a strategic positioning that would deliver better value going forward. They tended to agree with Standard Chartered and KPMG on their independent valuation, fairness and other salient issues in the consolidation. In its independent assessment of the fairness and reasonableness of the valuations used in the share exchange ratios and considerations, KPMG, an independent professional firm, considered the valuation used in determining the share exchange ratio to be "fair and reasonable". Putting its opinion in perspective, KPMG explained that "fair market value and fair value referred to the highest price available in an open and unrestricted market, between informed, prudent parties acting at arm's length and under no compulsion to act, expressed in terms of money or money's worth", as determined in the Lafarge Wapco's transaction. Fairness, KPMG noted, is primarily based on quantitative issues while reasonableness is based on qualitative issues. In arriving at its decision, KPMG, which has acted for Nigeria's Securities and Exchange Commission (SEC) in many landmark inquiries, stated that it conducted wide-ranging analyses and used several valuation methodologies including discounted free cash flow method, market-based methods based on earnings before interest, tax, depreciation and amortization (EBITDA), earnings before interest and tax (EBIT) and price to earnings and capacity multiples; and comparable transactions method among other quantitative decisions and assumptions. Then came the voting for the 11 resolutions under the special business. Osunkeye announced that Stanbic Nominees Nigeria Limited, which has 11.29 per cent equity stake in its name, had requested for voting by polling rather than by show of hands and popular acclamation. The registrar to the company, City Securities (Registrars) Limited, had prepared for all options having provided the shareholders with electronic voting devices, which were registered alongside the shareholders as they arrived for the meeting. Osunkeye requested Akintola Williams Deloitte to scrutinize the polling. Then came the announcement that Lafarge, the parent company which holds 60 per cent majority equity stake, had decided to abstain from voting on the 11 special resolutions, the first-ever decision by a majority shareholder. That left the fate of Lafarge Africa and the consolidation, which Lafarge also strongly believes in, solely in the hands of minority shareholders. Most observers and market analysts saw the decision by Lafarge as a new chapter in best practices and corporate governance as well as a mark of confidence that the transaction was fair and acceptable to any discerning investor on its own terms. In the end, all the resolutions relating to the consolidation were passed by a significant majority of the eligible shareholders with approvals ranging between 78 per cent and 98 per cent. Beyond the Lafarge Wapco meeting and Lafarge Africa transaction, the decision to allow minority shareholders to determine the necessity or otherwise of such a significant transaction by Lafarge opened the chapter into a higher level of corporate governance, which Nigeria capital market aspires. Nigerian capital market regulators-Securities and Exchange Commission (SEC) and NSE are considering a new rule that will bar major shareholders, directors and their related persons and institutions from voting at specially convened meetings for significant related party interest trans-

â&#x20AC;&#x2DC;Beyond the Lafarge Wapco meeting and Lafarge Africa transaction, the decision to allow minority shareholders to determine the necessity or otherwise of such a significant transaction by Lafarge opened the chapter into a higher level of corporate governance, which Nigeria capital market aspiresâ&#x20AC;&#x2122;

â&#x20AC;˘Chief Olusegun Osunkeye

actions that require the approval of shareholders. The new draft rules, which have generated heated debate, exclude all related and interested parties, entities, associates and proxies from exercising their voting rights, even where they hold fullypaid shares. The new draft rules, if finally approved, will represent a major paradigm shift from the current practice where such excluded persons and entities are allowed to exercise their voting rights and runs contrary to the general principle of one share or unit, one vote. The draft rules are yet to be approved and not yet in operation. Checks with both SEC and NSE indicated that Lafarge voluntarily opted to abstain from voting and allow minority shareholders to vote on the resolutions. While the consensus appears that the Nigerian market is not ripe for such rules excluding major investors, who take the largest risks, from voting on crucial issues, market analysts have hailed Lafarge's decision as a model example of voluntary compliance and submission to highest ideals. Managing Director, Chapel Hill Denham, Mr. Bolaji Balogun noted that while the decision by Lafarge should not be used to institute such compulsory exclusion of major shareholders from voting on major issues as this could be counter-productive to efforts to win companies to list on the NSE as well as entrepreneurial development, the decision by Lafarge is commendable. Besides, that minority shareholders were the ones that passed the Lafarge Africa transaction speaks volume of the widespread support and acceptability of the consolidation and its terms of exchange. Incorporated in Nigeria in 1959 and listed on the NSE in 1979, Lafarge WAPCO has one of the largest and most enlightened shareholder bases. One of the highest-priced and most capitalised companies on the NSE, Lafarge Wapco's shares are among the most widely traded. Latest shareholding analysis showed that sundry Nigerian shareholders hold the second largest equity stake in the Company at 23.67 per cent. Odu'a Investment Company Limited, the investment company of the South-West states, holds 5.04 per cent while Stanbic Nominees Nigeria holds 11.29 per cent, totaling 40 per cent. Most shareholders in Lafarge Wapco are retail investors, which further underscore the importance of their votes in favour of the consolidation. Retail investors have no institutional benefits other than their dividends and capital gains, which can only come from continued growth and price appreciation. Thus, they tend to be nervous with disruptive changes to the normal course. They are, however, receptive to changes with promises of better returns. According to the shareholders' analysis, more than 30 per cent of the over 60,000 shareholders of Lafarge Wapco hold between one and 500 shares while some 55 per cent hold between 501 and 5,000 shares. Unlike major shareholders, directors, staff, related parties and advisers, the only swing for the multitude of minority shareholders is the fairness and reasonableness of the deal, and that's what swayed the votes for Lafarge Africa. As it completes the regulatory processes, Lafarge Africa is taking off with widespread shareholders' supports and the honour

THE NATION JULY 21, 2014

THE NATION

BUSINESS INSURANCE

CIIN to govt: include insurance in your programmes, projects I NSURANCE practitioners have asked the government to make insurance policy mandatory for its contractors. They also want it to be mandatory in the Ministries, Departments and Agencies’ (MDAs) budgets. They said this would help in institutionalising insurance policies, and deepen the 2014 budget, which is key to achieving inclusive insurance that will impact the lowincome group and catalyse complete growth in the economy. This is contained in paper titled, ‘Role of insurance in the National Budget,’ presented to the Federal Government by the Chartered Insurance Institute of Nigeria (CIIN). Drafted by the institute’s Consultant, Biodun Adedipe Associates Limited, the proposal stated that a vibrant and effective insurance industry would contribute to the growth of the economy by enhancing its financial intermediation, creating liquidity and mobilising savings. The institute added that the industry can also improve living standards and enhance social stability, support policy formulation and implementation towards the achievement of national objectives,

Stories by OmobolaTolu-Kusimo

create jobs and foster investment and entrepreneurship by creating an environment that ensures greater certainty. The institute said is was time for stakeholders to drive the sector, urging that the government should be the facilitator and regulator. He added that each stakeholder has a role to play in ensuring the transformation of the economy through a vibrant sector. In a addition, the group recommended that the government should ensure sanity in the sector through regulation and enforcement of rules, while operators provide best practices and clients access insurance policies and pay the premiums according to the contract terms. They said: “The government should commence the implementation modalities for “Objective 3” under the housing section in the Vision 20:2020 document, on the establishment of a mortgage and title insurance system that will mitigate

credit risks. “There is need to fast-track implementation of agricultural and micro insurance, as well as social security schemes. Since such insurance products may not be profitable to operators, the government might need to provide either supply side or demand side incentives. This is corroborated by the United Nations Conference on Trade and Development (UNCTAD), which advised that to provide insurance as a public good, the Federal Government should consider placing support mechanisms by acting as a sort of reinsurer; creating public awareness, providing favourable regulatory and enforcement mechanisms, and exploring alternative insurance schemes. This can be like community-based schemes for rural populations or bank account holders receiving insurance instead of interest to strengthen rural insurance or micro insurance towards financial inclusion and inclusive insurance.” The experts said should the Federal Government implements its

suggestion, it would to project continuity whenever a project suffers a loss during construction or execution. This, they argued, would catalyse the industry to drive inclusive growth. They urged the Federal Government to amend Section 1 of the Companies and Income Tax Act (CITA) 2007 tax policy, which does not recognise micro insurance and takaful as main classes of insurance. Also, Section 3 does not recognise agricultural insurance. “The Federal Government should effectively enforce the compulsory insurance of imports and ensure that the Nigeria Customs Service is statutorily empowered to conduct surveillance at the ports to validate genuine insurance documents, adopt and use insurance bonds for government contracts, ensure insurance business is restricted to the practitioners who have the requisite skills for effective risk management, rather than allow other professionals to dabble into the field. “Governments and their agencies

should pay premium on time in order for the economy to reap the full benefits of compulsory life insurance for paid employees and selfemployed individuals while the National Insurance Commission (NAICOM) should review its licensing requirements for micro insurance.” The practitioners pointed out that most times, the reference to the national budget is to the numbers giving attention to how much is allocated to MDAs’ programmes and projects rather than being treated as a policy document that dictates the specific actions that the government intends to take to achieve its objectives as stated in the budget. The practitioners also noted that there are allocations in the N4.642 trillion 2014 Appropriation Bill for premiums, but that these would not be paid until the funds were released after approval by the National Assembly and signing into law by the President. “The question is, how much of this provision will accrue to Nigerian insurance companies? The excuse often made is lack of capacity, which the local insurance companies can never build unless they enjoy deliberate government patronage,” they added.

Leadway Assurance assets hit N101b

• From left: Managing Director/CEO, Sovereign Trust Insurance (STI) Plc, Mr. Wale Onaolapo; Rector, Chartered Insurance Institute of Nigeria (CIIN) College of Insurance, Dr. Yeside Abiodun Oyetayo; Executive Director/COO, STI, Mr. Samuel Ogbodu, and Human Resources Manager, STI, Mrs. Twiggy Ogbemudia, during a courtesy visit paid by the Rector to STI headquarters in Lagos.

Mansard gets NAICOM’s nod on micro insurance products

ANSARD Insurance Plc has secured the endorsement of the regulatory body, the National Insurance Commission (NAICOM), to roll out micro insurance products, the company’s Chief Client Officer, Tosin Runsewe, has said. He said the approval has made the firm to become among the first firms to run micro-insurance business in the country. He said the approval of NAICOM for the micro insurance business portfolio is an endorsement of the firm’s foresightedness and would spur the company towards maintaining excellence. He said Mansard has over the years provided excellent services with products tailored towards making the lives of its clients better. He said: “The micro-insurance business is one of the ways we aim to reach our target clients. With the NAICOM green light to roll-out products, we are encouraged to give our very best and this we would do. Our micro insurance products are designed to be appropriate for the

low income market in relation to cost, policy terms, coverage and delivery mechanism.” He continued: “The products are aimed at delivering insurance coverage to Nigerians of all walks of life irrespective of their location or socioeconomic class and by this approval; Mansard Insurance Plc becomes one of the first underwriting firms to be granted approval to carry out micro insurance business. “One of the products is the Mansard Instant Plan (MIP), a simple plan which provides life and accident insurance cover to the policy holder. For as little as an annual premium of N1,000 the plan promises a sum assured of N100,000 cover for permanent disablement or demise and up to N10,000 for medical expenses in case of accidents. Medical test is not required to buy this policy and it can be obtained at all Mansard Insurance consumer touch points nationwide.” Runsewe explained that NAICOM has classified micro-insurance poli-

cies to cover little risks and therefore, exclude special risks like motor insurance except tricycles and motorcycles, professional indemnity and other pecuniary risks with sums insured higher than N1 million. He added that the commission insists that for any company to get approval to carry out micro-insurance business, its products must be simple, affordable and valuable. Mansard was incorporated in 1989 as a private limited liability company and is registered as a composite company with the NAICOM. The firm offers life and non-life insurance products and services to individuals and institutions across Nigeria whilst also offering Investment management and health maintenance solutions through its two subsidiaries, Mansard Investments Limited and Mansard Health Limited. The firm was listed on the Nigeria Stock Exchange in November 2009 and has capitalisation of over N24 billion, thereby making it the biggest insurance company on the stock exchange.

EADWAY Assurance Company Limited has grown its assets hitting N101.2 billion at the end of the 2013 financial year from the N68.8 billion recorded in the previous year representing a 47 per cent increase. The firm also paid claims in excess of N10.9 billion, a 51 per cent increase from the N7.2 billion record of 2012. Its Chairman, Mallam Umar Yahaya, made this known at the company’s 42nd Annual General Meeting in Lagos. He said the N10.9 billion claims payout is continuing evidence of the promise that the company has kept to its customers over the years. He said though 2013 figures are still emerging, the firm had remained the single highest claims’ paying company in the industry, adding that it also closed the year with a balance sheet size that remained strong at N97.1billion in 2013 with tradeable reserves (insurance funds) of N49.7 billion, currently

the highest in the insurance industry. He said: “Competition remains rife within the insurance industry with key dynamic players challenging and changing the way we do business and putting us on our heels not only to consolidate, but also to surpass our current achievements if we are to stay ahead in 2014.” “We have positioned ourselves to benefit from the National Insurance Commission (NAICOM)’s market development restructuring initiative (MDRI) following the release of operational guidelines on micro-insurance and have started rolling out new products while extending our markets through new channels in order to take advantage of emerging trends and compete favourably with numerous competitors in the industry.” Apart from the parent company, Leadway Assurance Company Limited, other companies in the Group include Leadway Capital and Trusts Limited, Leadway Hotels Limited and Leadway Properties and Investments.

LASACO promotes 31

ASACO Assurance Plc has elevated 31 of its workers. They are Miss Omoh Warrie, who was controller. She is now Assistant General Manager; Mrs. Jumoke Koleoso, Mrs. Taiwo Adegbola, Mrs. Abiola Aladejebi and Mr. Lawrence Oyedele, all senior managers were elevated to controllers. The Group Managing Director of LASACO, Mr. Olusola LadipoAjayi, said the exercise was part of a strategic goal of the organisation to boost morale of staff and enhance productivity. The LASACO boss said the role of human capital development

in the industry cannot be underestimated. He said: “Huge investment is being made in human capital in order to keep them abreast of global trends for efficiency and optimum performance. “The newly promoted staff who are 31 cut across the company’s organisational structure. “Human capital development is our major area of focus and we are proud to recognise the contributions of the newly elevated to our collective success. Each will continue to aid in LASACO Assurance Plc’s growth and increase market share.”

THE NATION MONDAY, JULY 21, 2014

BUSINESS MOTORING

The Chevrolet Traverse delivers a smooth, confident and quiet highway ride. Its V6 engine provides adequate performance, but lacks low-end punch during authoritative passing maneuvres at any speed, writes TAJUDEEN ADEBANJO with agency reports

•Chevrolet Traverse

Chevrolet Traverse: comfortable, spacious L

ARGE crossover Sport Utility Vehicle (SUVs) have become the vehicle of choice for many large families. And it is easy to see why, as these crossovers offer plenty of room for passengers and their belongings, as well as the availability of all-wheel drive to get them confidently to their destinations in foul weather conditions. Among these new-age station wagons, the Chevrolet Traverse stands as a sensible choice. Among the Traverse’s many attributes is its very spacious interior that can seat up to eight passengers. Or, with the second- and third-row seats flipped down, it can provide a cavernous 116 cubic feet of cargo capacity. The cabin is attractive, too, benefiting from last year’s refresh that brought more harmonious styling along with a standard rearview camera and Chevrolet’s MyLink infotainment interface. The latter controls a wealth of audio, navigation and phone functions through a simple touchscreen. There are other good choices for a large crossover. The Ford Flex, with its more traditional wagon-like styling, is a funkier take on the same theme and definitely worth checking out, as is the more athletic-handling and nearly as spacious Mazda CX-9. And if one is willing to drop down a bit in size, the Hyundai Santa Fe impresses with its all-around excellence. But with its handsome styling, enormous cabin and impressive day-to-day functionality, the Chevrolet Traverse more than holds its own in the current population of family-friendly crossovers.

Body Styles With seating for up to eight passengers, the Traverse is classified as a large crossover SUV. It is offered in three basic trim levels — LS, LT and LTZ — but the LT is subdivided into 1LT and 2LT versions. Standard features on the LS Traverse include 17-inch steel wheels, automatic headlights, roof rails, cruise control, front and rear air-conditioning, keyless entry, full power accessories, cloth upholstery, 60/40-split-folding third-row seats, a tilt-and-telescoping steering wheel, a trip computer, Bluetooth, OnStar telematics, a 6.5inch touch screen display, a rearview camera and a six-speaker audio system (with a CD player, USB/auxiliary audio inputs, satellite radio and HD radio). There are also dual USB

charge-only ports on the rear of the center console. Stepping up to the 1LT trim adds 18-inch alloy wheels, fog lights, heated mirrors, rear parking sensors, remote ignition, a leather-wrapped steering wheel, wood-grain interior trim and an eight-way power driver seat with power lumbar adjustments. On top of that, the 2LT tacks on an auto-dimming driver-side and rearview mirror, a power lift gate, tri-zone automatic climate control, heated front seats and the MyLink infotainment interface (which includes voice control, Bluetooth audio connectivity and smartphone radio app integration). The range-topping LTZ trim includes 20-inch wheels, a blind-spot monitoring system, a rear cross-traffic alert system, forward collision-alert system, lane-departure warning system, powerfolding mirrors, second-row captain’s chairs (reducing seating capacity to seven), leather upholstery, a 10-way power driver seat with power lumbar adjustments, driver memory functions, an eight-way power front passenger seat, ventilated front seats and a heated steering wheel. Some of the upper trims’ features are available on the lower trims as options; for example, the forward collision alert and lane-departure warning systems are optional on the 2LT. Also available, depending on trim level, are a navigation system, a 10-speaker Bose audio system, a dual-panel sunroof and a rear-seat DVD entertainment center with A/V inputs and a 110-volt household power outlet for gaming consoles.

Powertrains and Performance Powering most Chevrolet Traverse models is a 3.6-litre V6 that produces 281 horsepower and 266 pound-feet of torque. The LTZ trim features twin exhaust outlets that increase output to 288 hp and 270 lb-ft. A six-speed automatic is the only available transmission, but buyers can choose front-wheel or all-wheel drive. In Edmunds testing, an all-wheel-drive LTZ sprinted to 60 mph in a class-competitive 8.1 seconds. The EPA estimates fuel economy at 19 mpg in combined driving for the front-drive Traverse (17 city/24 highway) and 19 mpg combined (16 city/23 highway) for the allwheel-drive model; both are average results

•Interior

for V6 crossovers in this class. Safety Standard safety features on all Chevy Traverse models include four-wheel antilock disc brakes, traction and stability control, a rearview camera, front seat side airbags and full-length side curtain airbags for all three rows. OnStar is also standard and includes automatic crash notification, on-demand roadside assistance, remote door unlocking, stolen-vehicle assistance and turn-by-turn navigation. An inboard driver-seat side airbag that helps protect front occupants from colliding into each other in the event of a side impact is optional on the LS trim and standard on all others. Rear parking sensors are standard on all versions, except the base LS. A blind-spot and rear crosstraffic monitoring system is standard on the LTZ, as are forward collision-alert and lanedeparture warning systems. The latter two are optional on the 2LT. In Edmunds brake testing, a fully loaded LTZ with all-wheel drive required just 119 feet to stop from 60 mph, which is better than average for a family-oriented three-row crossover SUV. In government crash tests, the Traverse earned a top five-star rating for overall performance, with five out of five stars given for overall front-impact protection and five stars for overall side-impact protection. The Traverse also fared well in Insurance Institute for Highway Safety crash tests, in which it got the highest rating of “Good” in moderate-overlap frontaloffset, side-impact and roof-strength tests. Interior Design The Chevrolet Traverse features a spacious and attractive interior. Most touch points are

decently padded, and GM’s recent attention to improving materials quality has helped the Traverse look and feel more premium than in previous years, especially the LTZ. The rearview monitor and all infotainment functions are accessed via a 6.5-inch touch screen display in the dash, but the screen itself is mounted low in the driver’s sight line and requires a longer glance away from the road than we would like. The available MyLink interface, which allows smartphone radio app integration, features a clean layout and intuitive menu structure. Both on-screen and dashmounted touch inputs are regularly slow to react, however, making the interface a bit frustrating. We’re also not fond of the small buttons for some climate controls or the USB port placement in a dash-top bin, where direct sun and high temperatures can bake electronics. Front-row passengers will enjoy abundant head- and legroom, as will second-row occupants, but the middle row seat cushions are a bit low. Sliding those seats all the way back alleviates this issue, but that effectively kills third-row legroom. The slide release is also difficult to access. The narrow, flat third-row seats are easily deployed and stowed, though they are really suited only for kids and smaller adults. As is invariably the case with threerow vehicles, rearward visibility is almost nonexistent when you have a full crew on board, so the standard rearview camera is a huge help. The Traverse scores points for its generous cargo capacity. Even with the third-row seats in place, the Traverse can carry up to 24.4 cubic feet of luggage. That figure jumps to 70.3 cubes with the rearmost seats folded flat and a cavernous 116.3 cubes with the second row stowed.

THE NATION MONDAY, JULY 21, 2014

MOTORING

KIA locally-assembled cars out in September K IA Motors Corporation, the Korean manufacturers of KIA automobiles has announced plan to roll-out in September, the first set of locally-assembled KIA vehicles in Lagos. KIA's Africa and Middle East Manager, Mr Homer Kim said this at an inauguration of Kia ultramodern showroom in Lagos. KIA's decision to establish a local plant in Nigeria followed Federal Government's proclamation of a modified National Automotive Policy that seeks to revolutionise Nigeria automotive industry and steadily discourage importation of fully built-up vehicles. KIA Motors Corporation had in February signed a treaty with

Stories by Tajudeen Adebanjo

Dana Motors Limited, local KIA representatives to restructure existing short-term obligation to align with long-term investment in assets development - a scenario that culminated in the provision of technical knowhow and setting up machinery for the local plant. Kim said the plant would immediately begin to assemble select KIA models including A, B and C - segment Rio, Cerato and Optima because of the huge KIA model line-up and by mid 2015 commence full scale production of the entire KIA range. "We will immediately begin to assemble few models including KIA Rio, Cerato and Optima because of the huge model line-up

of KIA and by mid 2015, ceteris paribus (all things being equal), the entire KIA range will be made locally. This in essence implies that, not a single KIA model will be imported into Nigeria from Korea," Kim said. Dana Motors Limited Managing Director, Mr Jacky Hathiramani said the dealership is proud to be associated with the Korean automaker and seeks to replicate KIA outstanding qualities in Nigeria. Hathiramani reiterated the company's commitment to the success of the investment, adding that "we will continue to introduce convincing marketing communications techniques that will help raise KIA's profile and brand iden-

tity, while also creating positive perceptions for KIA products through high-profile sponsorship deals." This strategy is aimed at changing the perception of customers to view KIA not only as an automobile but a manufacturer of cars of great quality and design, Dana Motors boss assured. He hailed KIA's resilience and candour from a mere bicycles and motorcycles manufacturer 50 years ago to a world-class manufacturer of cars in rapid succession that resulted in broad range of models available in the global market. "Today, KIA Motors Corporation has become a genuine global force in the automotive world and its brand slogan - 'The Power to Sur-

prise' represents the company's global commitment to surpassing customers' expectations through continuous automotive innovation," Hathiramani said. Dana Motors chief executive also said trainings and skill acquisition for local technicians have begun and efforts are on to acquaint the trainees with KIA's constantly improving technology. He said KIA plant in Nigeria would immediately indigenise some KIA parts such as windscreen, alloy wheel, batteries, fabric, headlights, tyres and get them standardised in Korea, while its longterm goal is to export cars from Nigeria to neighbouring ECOWAS and Central African Republic.

ABC celebrates decade of Coach W'Africa

BC Transport Plc is celebrating a decade of introducing Coach West Africa. Its Deputy Managing Director Mr Jude Nneji, said the success recorded in the last 10 years was not without fewer challenges. According to him, the West Africa concept is all about tourism, integration of West Africa region and making sure that West Africans are able to appreciate their neighbours, their cultures and promote trade. "Of course," Nneji said, "when you have a booming commerce, people are empowered, and then there is a lot more to do in terms of commercial activities. I think so far we have been able to achieve that because the region is beginning to open up, a lot of Nigerians have been able to discover some of their similarities and roots in Ghana, Benin Republic and some of other places. Similar culture, similar re-

ligion, similar ways of behaviour and of course, the most important thing is that the commercial activities is yearly increasing because all those goods that are produced in Nigeria find their way in Ghana, Benin and Togo and so are the good that are produced here. In fact, about 30 per cent of most of the customers we carry are traders who go to buy one thing or the other from all these places and come back." Nneji said the major challenges faced the company along the route are culture and immigration. "When we are talking about movement of goods and services across the borders, you also find out that there are some of them that are supposed to categorise as duty free but the customs in that country will cause all sorts of delay or blackmail by asking you to pay duties. If you are moving goods from one country to the other, the countries in

Infinity begins Ramadan offer

NFINITY Tyres Limited has announced the commencement of a special offer, Ramadan 'Scratch and Win' promo, designed to add value to the lives of its customers across the country. A statement from the company said the promo, Value Drive, is between July 10 and 30. It added that the special Ramadan promo was introduced by the company in addition to its annual Christmas promo traditionally held in December. Infinity Tyres said the offer would cover its premium tyre brands such as Pirelli, Goodyear, Infinity and CEAT with the battery brands. It explained that the promo was an instant gratification scheme which would allow customers to win "fantastic prizes through a scratch and win reward system." The Marketing Manager, Infinity Tyres Limited, Mr Vikas Bahl, ex-

pressed excitement as he described the promo as one platform through which the company could show appreciation to its loyal customers. "The Nigerian market, though competitive, is highly favourable for companies that deliver products and services of excellent quality and we assure the motoring public that they can all participate in the promo by simply purchasing any tyre or battery from any Infinity Tyres outlet. "Any purchase, no matter how small will attract a scratch card with which customers will win fabulous prizes." He explained that to participate, consumers were expected to buy any tyre or battery brand from any Infinity Tyres outlet within the stipulated promo period, and for every purchase made, customers would get a scratch card bearing an instant prize such as cash, tyre services or gift items.

•Nneji (middle) assisted by ABC workers to cut the anniversary cake

between are not supposed to charge you because you are not using the goods in their country, you are only passing through as a transit and if

for any reason they have doubt, they can seal off the compartment and make sure those things are not delivered within your region. But

you know this issue about doubting and all that, is really making the cost of trade very expensive within the sub region," he said.

Porsche increases production investments

HE Executive Board and the Works Council of the sports car producer Porsche have decided to implement support measures for the prosperous future of the Zuffenhausen plant. A statement by Porsche Middle East and Africa FZE Public Relations Anja Wood, said starting in autumn 2014, a dedicated agreement will be negotiated to enable further growth and job security for the over 3,100 employees in production. Plans include a further expansion of the vehicle assembly as well as a new body construction facility for the brand's two-door models. This means that in the future, the Boxster and Cayman as well as the 911 and the 918 Spyder super sports car will be exclusively produced at the parent plant in Stuttgart in Germany. Planned measures involve an investment volume of more than 400 million euros. "The parent plant in Zuffenhausen is the Porsche brand's showcase site,

and it is considered the epitome of top quality, productivity and flexibility in production," Dr Oliver Blume, member of the Executive Board Production and Logistics said. Last year, the company had already announced the investment of an additional 700 million euros in the Porsche site north of Stuttgart by 2018. Around 300 million euros are planned for an entirely new body construction facility, in which sports car bodies would be produced with state-ofthe-art technologies. Already today, the plant features a highly advanced paint shop, which began operations in 2011 after an investment of 200 million euros. One of the main goals resolved by the Executive Board and the Works Council focuses on the continuous qualification of employees to face the enormous challenges of future automotive manufacturing, including new materials, processes and flexible assignments to various responsibili-

ties in the production chain. "For years now, the entire team at the Zuffenhausen plant has set record after record, and we have successfully increased our productivity. Due to this, we were able to reduce the weekly work schedule to 34 hours per week," Blume said. Previously achieved productivity gains allow a gradual production transfer of the mid-engine Boxster and Cayman models to Zuffenhausen. Due to capacity limits, some of the cars have been manufactured at the multi-brand Volkswagen plant in Osnabrueck, Germany since 2012; production there will continue till 2016. Due to the high international demand for Cayenne, Macan and Panamera models built at the Leipzig production plant, Porsche will start assembling an average of 20,000 Cayenne models in Osnabrueck starting summer 2015. For this, an investment of 25 million euros is planned.

SAFE DRIVING

Road safety regulators and operators (3)

HE Governments and their agencies (including FRSC) should continue to do more of their public education or public enlightenment role which is different from the main training programme entrusted into the hands of the driving schools. All stakeholders (including driving schools) should also be involved in such public enlightenment programmes. • Governments and their agencies (including FRSC) as part of their public enlightenment

programmes should encourage and compel public and private sector organisations to regularly re-train their drivers in the driving schools that are certified to do so. • Driver retraining programmes must as much as required be accompanied with the relevant practical elements, not just theoretical training alone because vehicle technology is dynamic and changes frequently. • Without prejudice, there is a need for a good working relationship between the governments,

traffic agencies (including FRSC) and the driving schools to remove unhealthy rivalry and ensure the accomplishment of the goal of drastically reducing the rate of road crashes and fatalities in Nigeria. • Governments and their agencies (including FRSC) should take proactive steps to ensure that every learner actually learns driving in the driving schools with structured and uniform examination put in place among other measures to ensure total compliance by Nigerians.

• Governments (Federal, State and Local) must stop pushing their agencies to focus on income generation to the neglect of the safety of irreparable lives and properties. It is a sin to give life–saving organisations such as FRSC and other traffic management agencies revenue targets. There are lots of money to make in enforcement if properly and objectively done. Let us drop sentiments to save lives and valuable properties. We shall all give account to God.

Jide Owatunmise Registrar / Chief Executive, Professional Driving and Safety Academy

THE NATION MONDAY, JULY 21, 2014

BUSINESS

Malaysia Airlines faces doubtful future

HARES in Malaysia Airlines closed down 11 per cent in Malaysia following the crash of flight MH17 in Ukraine on route from Amsterdam to Kuala Lumpur. Some Asian stock markets also ended the day lower on fears the crash may intensify political tensions between the West, Ukraine and Russia. This is the second catastrophe to hit the Malaysian airline this year after flight MH370 disappeared in March. Questions are being asked about

whether the carrier can now survive. "Even if this is pure coincidence, it's never happened in history that a flag carrier has seen two wide-body aircraft disappearing in a few months," said Bertrand Grabowski, head of aviation at DVB Bank, which acts as a banker to Malaysia Airlines. "The support from the government needs to be more explicit and perhaps more massive." The company has been losing money for many years and its market value has fallen by more than 40% in the past nine months.

Reports suggest that state investment firm Khazanah Nasional, the major shareholder in the airline, is looking to take the carrier private. The firm has invested more than $1bn into the airline in recent years and had previously indicated that a major restructuring was on the cards. Analysts said further investment was needed if the airline was to survive in the short term. Speaking to the BBC's World Service, Mohshin Aziz, an investment analyst at Maybank in Kuala Lumpur, said the challenges now

facing Malaysia Airlines were "insurmountable". Without significant funding, he said the airline would not survive beyond a year. But even if the airline was to secure financing, questions about its longer-term viability remain, analysts said. "This latest incident will now compromise the brand from a European perspective," said Leo Fattorini, aviation partner at Bird & Bird. "You've got to ask whether the brand can survive this latest tragedy."

Wall St. bounces after sell-off; Google climbs

.S. stocks rebounded modestly on Friday, after the S&P 500 suffered its worst decline since April 10, but the benchmark index remained on track for a second straight weekly decline. Investors will continue to keep a close eye on geopolitical tensions, as world leaders demanded an investigation after a Malaysian airliner was downed at the Ukraine-Russia border and Israel announced the start of a Gaza ground campaign on Thursday. The CBOE Volatility index .VIX dropped 8.1 percent to 13.36, after a 32 percent surge to 14.54 in the prior session - its biggest jump since April 2013. The index still remains well below its historical average of around 20. Google Inc (GOOGL.O) gained 2.2 percent to $593.52 as the biggest boost to the S&P 500 after the world's No.1 Internet search company posted second-quarter results and said its chief business officer would leave the company. "It seems counter-intuitive given the ruthlessness with which the market sold off yesterday, but in the broader context the markets are generating a lot of attractive themes," said Peter Kenny, chief market strategist at Clearpool Group in New York. "We have an economy that is expanding - we have many data points that support that narrative - we are in the middle of earnings season and earnings season has given investors reason to believe that what we have seen in the headlines over the last day or two, though very important, aren't what is driving investment decisions." General Electric (GE.N) shed 1.2 percent to $26.30 after the conglomerate posted growth in second-quarter earnings that matched expectations. Fellow Dow component IBM (IBM.N) also lost ground, down 0.7 percent to $191.21 after the world's largest technology company reported its software business grew less than expected even as quarterly earnings beat analysts' expectations. But Honeywell International (HON.N), a maker of aircraft cockpit parts and other electronic equipment, raised the lower end of its 2014 profit forecast range and reported better-than-expected quarterly profit. Its shares gained 0.8 percent to $95.97 The Dow Jones industrial average .DJI rose 38.66 points or 0.23 percent, to 17,015.47, the S&P 500 .SPX gained 6.9 points or 0.35 percent, to 1,965.02 and the Nasdaq Composite .IXIC added 26.59 points or 0.61 percent, to 4,390.04. The Thomson Reuters/University of Michigan's preliminary July reading on the overall index on consumer sentiment came in at 81.3, below both the consensus analyst expectation of 83 and the final June read of 82.5.

â&#x20AC;˘ From left: Director, Minister's office, Mr. Jonathan Juma, Director General, Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, Minister of Industry, Trade and Investment, Dr. Olusegun Aganga, Deputy President , LCCI, Dr. (Mrs) Nike Akande and Vice President , LCCI, Mr. Soboma Ajumogobia during a courtesy call by the Chamber officials to the Ministry's Headquarters in Abuja.

MH17 crash: Airlines divert flights from eastern Ukraine

UROPEAN flight safety body Eurocontrol says Ukrainian authorities have closed the airspace in the east of the country to all airline flights. It said all flight plans that use routes in the area are being rejected. It follows the crash of Malaysian airliner flight MH17 with 298 people on board, amid claims it was shot down. Flights already airborne are being routed around the area by air traffic control in the region, a Department for Transport spokesperson said. However, some airlines in the last week including British Airways and Air France had already altered their flight paths to avoid Ukraine. British Airways said its flights did

not use Ukrainian airspace, with the exception of a once-a-day service between Heathrow and Kiev. A spokesman for BA said they were keeping those services under review, but that "Kiev is several hundred kilometres from the incident site". Flight MH17 was on a flight from Amsterdam to Kuala Lumpur when it came down near the village of Grabovo. The European Cockpit Association (ECA), which represents more than 38,000 European pilots, said the route flown by the crashed Malaysian aircraft was "the most common

route for flights from Europe to South East Asia." Airline Emirates said its flight EK171 from Dubai to Kiev had returned to Dubai "due to the safety concerns raised with the latest reports on Malaysian flight MH17". It added that its flights to Kiev were suspended "with immediate effect, till further notice". The airline said its flights to and from the US and other European destinations used a different route and were outside the zone where the incident involving MH17 occurred. Meanwhile, US carriers have also agreed to avoid flying through airspace near Russia's border with Ukraine. the Federal Aviation Administration said.

U.S. drugmaker AbbVie finally wins Dublin's Shire with $55b deal U.S. drugmaker AbbVie (ABBV.N) bought Dublin-based Shire (SHP.L) on Friday in a 32 billion-pound ($54.7 billion) deal that will allow it to slash its tax bill by relocating to Britain. The London-listed company, which makes expensive medicines to treat rare diseases, fought off four earlier bids from AbbVie until the U.S. firm raised its price to 52.48 pounds per share - made up of 24.44 pounds in cash and 0.8960 new AbbVie shares. Chicago-based AbbVie is buying Shire to cut both its U.S. tax bill and its reliance on arthritis drug Humira, the world's top selling medicine which loses U.S. patent protection in 2016. AbbVie, which generates nearly 60 percent of its revenue from Humira, had until Friday to announce a firm offer for Shire, extend the deadline or walk away under UK takeover rules. It now plans to create a combined company incorporated in Jersey, the Channel Islands, which will pay an effective tax of about 13 percent, sharply lower than its current rate of about 22 percent, making the deal one of the biggest driven by the tactic known as tax inversion.

UK banks face full CMA competition probe MARKETS watchdog the Competition and Markets Authority (CMA) has recommended a full competition inquiry into banks. The provisional decision recommends a full-scale inquiry into the banking sector including the provision of current accounts and business lending. The process will start with a consultation, and the CMA will take a final decision in the autumn. The banking industry said it would co-operate with the review, but that changes were already underway. Alex Chisholm, CMA chief executive, told BBC Radio 4's Today programme it was "vital" that the banking sector worked properly, which was why the full eighteen month investigation There are a lot of under-satisfied customers out there, and small businesses are saying they are not happy.

Apple scolded by Europe over in-app purchase protections

PPLE has been criticised by the European Commission for not offering any "concrete and immediate" plans to stop users being misled by "free" apps. Many popular apps are free to download, but are designed to tempt users to pay for in-game enhancements - often allowing for quicker progression. The Commission is now forcing Apple and Google, the biggest vendors of apps, to make the "true cost" of games clear. But it singled out Apple for not making a commitment to change. "Regrettably, no concrete and immediate solutions have been made by Apple to date to address the concerns linked in particular to payment authorisation," the Commission said in a statement. "Apple has proposed to address those concerns. However, no firm commitment and no timing have been provided for the implementation of such possible future changes. "CPC [consumer protection cooperation] authorities will continue to engage with Apple to ensure that it provides specific details of changes required and put its practices into

line with the common position." The Commission said national authorities had the option to take legal action against companies that were deemed not to be complying with Europe's guidance on free apps. In a statement, Apple said it was doing "more than others" to protect

parents. "These controls go far beyond the features of others in the industry," an Apple spokesman said. "But we are always working to strengthen the protections we have in place, and we're adding great new features with iOS 8, such as Ask to Buy, giving parents even more con-

trol over what their kids can buy on the App Store." Google is said to have decided on a number of changes due to come into force by September. In December last year, the European Commission asked app vendors to take steps to ensure:

Morgan Stanley rebuilds in commodities trading

FTER more than a year of scaling back in commodities, Morgan Stanley (MS.N) is ready to expand. The Wall Street bank plans to hire about a dozen traders, sales staff and other professionals in the United States. It's building up commodities trading and financing businesses that can profit despite tougher regulations, people familiar with the matter told Reuters. "The moves that we've made are in large part because we looked at these businesses through a new capital lens," said one executive involved in the business's strategy who spoke on the condition of anonymity. "That's just the reality of life on Wall Street these days." For example, Morgan Stanley is

looking at making more loans to energy producers and sell more commodity-linked products to retail investors, the sources told Reuters. Commodities trading was big for Morgan Stanley before the financial crisis. Revenue from the business rose from $580 million in 2000 to $1.9 billion in 2007, according to estimates by Bernstein analyst Brad Hintz. Since then, commodities trading has come under pressure at big banks as funding costs have risen and regulators have clamped on their ability to make bets with their own money. Right now, Morgan Stanley has about 310 sales, trading and other "front office" professionals in its commodities business. The dozen or so people it is hiring will only par-

tially offset the 100 employees it will lose when and if it sells its physical oil merchanting business to the Russian oil giant Rosneft (ROSN.MM). After the deal, Morgan Stanley will still act as an intermediary between clients and physical oil markets, but will be rid of its own network of storage and transportation assets. Morgan Stanley is selling its physical oil assets as the Federal Reserve is conducting a review of banks' involvement in commodities markets. To some regulators, physical commodities represent a big risk: an operational problem, like an oil spill on an offshore rig, could lead to huge reputational damage and crater the bank's stock, potentially destabilizing it and the broader financial system.

THE NATION MONDAY, JULY 21, 2014

Taxation

Tax audit and minimum tax computation

AXATION, worldwide, constitutes a major source of revenue to governments for funding their capital and recurrent expenditures. In recent times, there has been the urge for tax authorities in Nigeria to carry out spontaneous and sporadic tax audits and investigations on taxpayers, especially corporate bodies, suspected of tax evasion or tax delinquency. In doing so, the tax authorities, in discharge of their duties as contained in the enabling tax laws, adopt various methods in tackling taxpayers. The taxpayers, on the other hand, are quick to resist any additional tax burden that might drain their pockets. While tax authorities do have statutory powers to conduct tax audits and investigations on taxpayers to ensure that the revenues due to government are not lost by way of false returns, these powers are, however, not without legal limits. Tax audits and investigations are very complex and tasking processes and as such, tax managers and their consultants must understand the ‘rules of the game’. On the other hand, according to the Federal Inland Revenue Service (FIRS), minimum tax is justifiable on the premise that every asset generates income. The minimum tax regulations are therefore anti-tax avoidance measures whether or not the affected company declares a profit, or the company was dormant during the relevant year of tax assessment. Where a company is dormant, minimum tax is usually charged on the company’s net assets or on its share capital, whichever is the higher of the two. Meaning of Audit An audit is an examination usually by an independent person, on a set of the accounting books, records, documents, etc, from which a financial statement has been prepared and/or an examination and verification of a company’s financial and accounting records and supporting documents by an independent party after which an opinion is given on the state of affairs of such books and records. Objectives of Statutory Audit The primary objective of audit is to express an opinion on the financial statements of an enterprise as to whether: i. Proper books have been kept, ii. The financial statements are in agreement with the books, iii. The requirements of the applicable legislations, for example, the Companies and Allied Matters Act (CAMA) 1990 (as amended) have been complied with, iv. Applicable accounting standards (both local and international) have been complied with, v. The financial statements give a true and fair view of the state of the financial affairs of the enterprise as at its balance sheet date, vi. The financial statements give a true and fair view of the result of the operations of the enterprise for the period under consideration. Tax Audit This is an additional audit to the statutory audit and is carried out by tax officials from relevant authority. The approach and scope of work would be slightly different from that to be carried out for an audit under CAMA, 1990. Objectives of Tax Audit The objectives of tax audit are to enable the tax auditors determine whether or not: i. Adequate accounting books and records exist for the purpose of determining the taxable profits or loss of the taxpayer and consequently the tax payable, ii. The tax computations submitted to the authority by the taxpayer agree with the underlying records, iii. All applicable tax legislation have been complied with, iv. Provision of an avenue to educate taxpayers on various provisions of the tax laws, v. Discourage tax evasion, vi. Detect and correct accounting and/or arithmetic errors in tax returns, vii. Provide feedback to the management on various provisions of the law and recommend possible changes, viii. Identify cases involving tax fraud and recommend them for investigation, ix. Forestall a taxable person’s failure to render tax returns, x. Forestall a taxable person rendering incomplete or inaccurate returns in support of the self-assessment scheme. Powers of FIRS to Audit Prior to the introduction of the self-assessment scheme, there was no specific provision in Companies Income Tax Act (CITA) for tax audit. Subsection 4 of Section 43 was introduced to empower FIRS to carry out tax audit. The sub-section states: “Nothing in the foregoing provisions of this Section or in any other provisions of the Act shall be construed as precluding the Revenue Service from verifying by tax audit any matter relating to entries in any books, documents, accounts or returns as the Service may from time to time specify in any guideline.” An integral part of the self-assessment scheme is the need to periodically verify the tax returns filed by taxpayers through tax audit procedures. The tax audit exercise essentially is meant to enable the revenue authority to further satisfy itself that audited financial statements and the related tax computations submitted by the taxpayer agree with the underlying records. Types of Tax Audit The scope and type of audit steps to be executed would depend on the type of audit to be performed, the underlying trigger and the objectives to be achieved. At present, FIRS is involved in the following types of audit: 1. Registration Audit – The purpose of this audit is to bring

all relevant companies and individuals into the tax net. The audit involves obtaining information on businesses from the Corporate Affairs Commission (CAC), the Nigeria Customs Service, other third parties and routine visits to premises of suspected non-registered taxpayers in order to ensure that all companies and individuals who fall under FIRS’ tax jurisdiction are properly registered. In some cases, information in this regard can be obtained from other FIRS departments who may alert the Tax Audit Processes and Policies Department on the need to carry out registration checks regarding certain companies and individuals who are outside the FIRS tax net. At the end of each registration audit, companies and individuals found to be outside tax net are usually registered and given Taxpayer’s Identification Number, and a Permanent Note Jacket file is opened 2. Advisory Audits - A visit to newly established businesses advising them of their obligations in terms of tax types, filing of declarations, payment of amounts due, records to be maintained and likelihood of audit if it is considered to be a risk and the sanctions that might apply for non-compliance. Obtaining information on newly registered companies from CAC and visiting their offices to advise them of their obligations under the law. 3. Record Keeping Audits - A check on enterprises that may have a reputation of not keeping adequate records. The visit would point out the obligations of the taxpayer as provided for in the CITA Section 63 regarding the keeping of records. Penalties are to be computed in line with CITA Section 92. 4. Desk Audits - Audits will generally require field visits. However, it may be possible to undertake some basic checks from the tax office. These can be conducted with regards to specific issues of a small enterprise when the auditor is confident that all necessary information can be ascertained by conducting the examination in the office. They can also be used as a preliminary examination of declarations/returns, analyzing ratios and cross-checking information to determine if an audit is warranted. 5. Single Issue Audits – These are quick response audits with a narrow focus. Their limited objectives focus on a single tax type or a single period concerning an individual taxpayer as opposed to the comprehensive audit. For instance, FIRS may only be examining whether the taxpayer has met their obligations in respect of employment – PayAs-You-Earn, Withholding Tax (WHT), and Value Added Tax (VAT) or Company Income Tax (CIT). 6. Refund Audits – Verifying the taxpayer’s right to a refund prior to processing the refund in accordance with the provisions of Section 23 of the FIRS Establishment Act. Therefore, audits are usually undertaken for the first refund claim as well as where the refund claims varies significantly from established patterns and trends. 7. Audit Projects - Audit can be organized as a separate project for specific groups of taxpayers or tax types (e.g. VAT, WHT) on a regional or national scale. These projects may cover an industry (e.g. construction) or a line of business (e.g. retail) and/or certain items from the declaration or profit and loss account (e.g. capital allowance). They will consist of specific checks and are used to address a particular risk or to establish the degree of non-compliance in a particular sector. 8. Comprehensive (or full) Audits – All tax obligations over one or more tax periods are typically referred for extensive examination when discrepancies are uncovered during more routine single issue audits. As they are usually time consuming, comprehensive audits should only be applied to taxpayers when there is evidence of underreporting that will have an impact across taxes. 9. Mergers and Acquisition Audits – As part of mergers and acquisition strategies, it is usual for companies involved in the process to investigate their potential partners. Such investigations are undertaken by independent professional accountants and lawyers on behalf of the parties involved. A tax audit shortly after a merger or an acquisition has enormous potential for audit yields as the new entity’s financial statements would often materially differ from its previous components. 10. Public Offers Audit – Securities and Exchange Commission rules require companies involved in a public offer to disclose their financial history covering a period of at least five years to the investing public. Again, professional accountants, lawyers and other professionals usually carry out a number of investigations in order to provide for public disclosure the information required to be disclosed by the regulatory authorities. A tax audit shortly after a company has made a public offer has enormous potential for audit yields. 11. Post Pioneer Period Audits – During its pioneer status period, a company would not only operate without paying taxes but would also carry forward any losses sustained from the commencement of operations to the end of its pioneer status period. In this regard, tax audit would serve to revalidate the losses and capital allowances carried forward. Minimum Tax Legislation Section 32 (2) of the CIT Act (as amended) provides that where in a year of assessment, the ascertainable profits of a company, from all sources, results in a loss or where the company’s ascertainable profits results in no tax being liable for payment, or where the tax payable is less than the statutory minimum tax allowable, such a company shall be liable to be charged and to pay a statutory minimum tax, which amount will be dependent on whether the company has a annual turnover of less than N500,000, or more than N500,000. A company with an annual turnover of N500,000 or less, that has been carrying on business for at least four years, is

• Acting Executive Chairman, FIRS, Alhaji Kabir Mohammed

Mashi liable to charge to a minimum tax of any of the higher of the following sums: (i) 0.5% of the company’s gross profit; or (ii) 0.5% of the company’s net assets; or (iii) 0.25% of the company’s paid up share capital; or (iv) 0.25% of the turnover of the company for the relevant year of tax assessment. Where, however, the turnover of the company is more than N500,000, the minimum tax payable shall be the higher of the above rates that is charged for companies with an annual turnover of N500,000 or less, plus 0.125% (or 50 per cent) on the excess of the turnover that is above N500,000 will be charged as minimum tax. Exemption from Minimum Tax Regulations Companies that are involved in agriculture, companies that have not carried on business during the first four years of their incorporation, or companies that have at least 25 imported equity capital fully paid for by a foreign company, are among the exempted corporations to whom the minimum tax provisions stated above do not apply. Capital Allowances and Minimum Tax For each year of tax assessment in which minimum tax is payable, the capital allowance for that year shall be computed together with any unabsorbed allowances brought forward from the previous years, and these shall be deducted as far as possible from the assessable profits for the relevant financial year, and or carried forward to the next financial year. Dormant Companies and Minimum Tax The general perception that dormant companies are not liable to pay any tax at all as they are not engaged in any trade or business is not correct. As a tax avoidance measure, minimum tax is charged on the higher amounts of such a dormant company’s gross profit, or on its net assets, or on its paid-up share capital, or on its turnover, at the rates stated above. The only exemptions to this rule are as also stated above. To avoid penalties for non-compliance, owners of companies that are dormant for any reason, or are not making any profits, will do well to contact their tax advisers for compliance in order to avoid tax penalties that could finally liquidate such companies.

‘Tax audits and investigations are very complex and tasking processes and as such, tax managers and their consultants must understand the ‘rules of the game’. On the other hand, according to the Federal Inland Revenue Service (FIRS), minimum tax is justifiable on the premise that every asset generates income’

THE NATION MONDAY, JULY 21, 2014

MONDAY JULY 21, 2014

POLITICS THE NATION

E-mail:- politics@thenationonlineng.net

NATIONAL CONFERENCE It is business-as-usual at the National Conference, with the proposal for the creation of 18 states. The development puts a question mark on the commitment of the delegates because their proposal is not in tune with the reality that necessitated the conference, writes Deputy Political Editor RAYMOND MORDI.

States creation: Triumph of compromise N

OTHING epitomises the incongru-ity of some of the National Confer-ence proposals, compared with the reality on the ground, more than the suggestion that 18 new states should be created to bring the number of states in the country to 54. Coming at a time when it has become obvious that the burden of the 36-state structure of is not sustainable and many Nigerians are calling for pruning down the number of the federating units and going back to regional autonomy, the idea of the increase is both ridiculous and laughable. “I am completely astounded that people are still agitating for the creation of more states,” Sam Ohuabunwa, an industrialist and former chairman of the Nigeria Economic Summit Group (NESG) said. This is particularly instructive, considering the fact that the conference has been dubbed the antidote to disintegration. Many of the 36 states are not viable. They virtually depend on the monthly allocations from the Federation Account to pay salaries and remain afloat, with virtually nothing left for the development of the state. This has been compounded by the dwindling allocations accruing to the states in recent times. To many observers, the fact that such a proposal sailed through, considering the high consensus parameter of 70 per cent adopted by the conference, shows that majority of the delegates are not in tune with the reality. But, the proposal to create more states may not come as a surprise to discerning observers. Over 70 per cent of the delegates are above 70 years and they are mostly people who have occupied leadership positions in the past. King Alfred Diette-Spiff, the traditional ruler of Twon-Brass, Bayelsa State, who is a member of the National Conference, throws more light on the composition of the conference: “The composition of the conference is quite formidable; you have former governors, former Presidents of the Senate, former Speakers, former chief justices, former retired justices of the Supreme Court; you have everybody, all the way down to the people from the National Youth Service Corp (NYSC) and civic and trade-based societies,” he said. As far as Diette-Spiff is concerned, Nigeria is in a bad dream. “It is like we are being chased by the buffalo. We tried to run, but we are being knocked in the feet. This conference is a wake-up call; after it, it may not be so golden again,” he added. Diette-Spiff was the governor of Rivers State from May 1967 to July 1975 during the military administration of Gen. Yakubu Gowon. The import of the proposal for more states, going by the desperate picture painted by the former governor, is that the country is yet to wake up from its slumber and the elite class are still fiddling, while the country is on the verge of collapse. Senate Leader Victor NdomaEgba, linked the country’s economic backwardness to the creation of numerous states by the military. He said Nigeria was more focused and tilted towards the direction of de-

velopment when she had four regions in the ‘60s and 12 states in the ‘70s. His words: “As at 1965, when we had four regions, Nigeria’s economy was at par with that of Brazil, Malaysia, Indonesia and other countries. Now, those countries have maintained those same structures and we have increased ours on the pretext of development.” In contrast, India, the world’s second most populous nation, with a population of 1.22 billion, has a federal structure with only 28 states. Indeed, Uttar Pradesh, one of the states in the northern part of the country, has a population of 200 million; far beyond Nigeria’s 150 million. The sub-continent of India is also the world’s seventh largest nation, with a landmass of 3,287,590 square kilometre. Similarly, China, the world’s most populous nation, with 1.34 billion citizens, and the third largest by landmass, has 34 provinces. Nigeria is the seventh most populous country in the world and the 31st in terms of landmass. The Chief Executive Officer, Nesbet Consulting, Dr. Alaba Olusemore argued that creation of more states would not be in the country’s favour, as it would not necessarily bring about development. “What will bring development is visionary leadership that can galvanize the creative energies of the people and one that can harness the available resources of the state,” he noted, adding that any new state that is created can only increase the country’s overall recurrent expenditure and slow capital growth in the federating units. Former President of the Nigerian Bar Association (NBA), Olisa Agbakoba, who is a delegate to the conference, said he never agreed with the recommendation because most of the states were not self-dependent. “I am a member of the National Conference, but I don’t agree with the decision that we should create more states. I don’t understand why the need to create more states is to bring development to the grassroots. But where are going to stop? You create state in Asaba, you create in Onitsha, you create in Aba and other states in Nigeria. I don’t support it personally, because we can’t keep on creating states in Nigeria. Many of the states we have are not viable. So, if we keep creating states, I don’t know whether we are thinking about future sustainability of Nigeria,” he said. Agbakoba, a senior advocate of Nigeria (SAN), added: “The real thing we need to look at is how we can use our resources to develop Nigeria? And the only way to do that is to devolve powers to the regional systems.” The call for the creation of new states has been recurring. For instance, the National Assembly, has

•Map of Nigeria

been hinting for several years now that more states are in the offing. The agitation for creation of new states started with the arbitrary creation of 12 states in 1967 by Gen. Gowon, to frustrate the secessionist bid by the defunct Eastern Region under the leadership of Lieutenant-Colonel Chukwuemeka Odumegwu-Ojukwu. Since then the number of states have been altered from 12 to 19 in 1976; to 21 in 1987; 30 in 1991; and 36 in 1996. Even at that, the agitation has not abated. There are agitations from all the six geo-political zones. The Southeast, for instance, has been consistently asking for an additional state to bring the number of states in the zone at par with that of other geo-political zones. The Southeast has only five states while the other zones have six states. The Northwest has seven states. Beyond that, there are agitations for states such as Aba, Etiti, Njaba/Anim and Wawa. This is in spite of the recommendations of the Willinks Commission of 1957, which considered the state creation and the minority question and arrived at the conclusion that it would be counter-productive to create a new region out of the defunct Eastern Region because of the contiguity of the ethnic boundaries. The commission said it was both impractical and in the long run unsustainable. As hinted above, the creation of new states was initially driven by the need to address perceived domination of ethnic minority communities by the majority. Later the underlying principle for demanding for new states changed. The underlying reason for such agitations now centre around the belief that additional states will trans-

late to enhanced share of the federal revenue and opportunities in federal public service, which is shared on the basis of equality. Experts say the proponents of these new states are not considering the interest of the people, but are merely looking for avenues for a bigger chunk of the national cake. The National Publicity Secretary of the Afenifere Renewal Group (ARG), Mr. Kunle Famoriyo, said it is ironic that Nigeria is the only country that is running what he described as ‘feeding bottle’ federalism. He said the answer to the developmental problems facing the country is regional autonomy. “Things would never change as long as we continue go to Abuja to collect allocation. This ‘feeding bottle’ economy cannot save us. God is not wrong to have brought Igbos, Hausa-Fulanis, Yorubas and other ethnic nationalities together to live as one. We are playing a different god, by saying that the basis of our unity should be for everybody to go to the centre to collect monetary allocation,” he stressed. This tendency, he added, has been dragging the country back because it has bottled up the creativity that is embedded in the individual Nigerian Besides, creating more states would entail setting up administrative structures that would end up consuming more of the country’s resources that ought to be directed towards development. Even with the current 36-state structure, experts have suggested the transforming of the six geo-political zones into the federating units that would be autonomous. For the fallout of the 36state structure, as well as the presidential system of government adopted since 1979 has become a drainpipe to the coffers of the na-

‘The underlying reason for such agitations now centre around the belief that additional states will translate to enhanced share of the federal revenue and opportunities in federal public service, which is shared on the basis of equality’

tion; it is catering for the needs of individuals, instead of catering for that of the larger society. Take the executive arm of government for instance. At the federal level, the number of personnel required to run the system is too large for an economy that is still struggling to find its feet. The list includes the president, the vice president, about 43 ministers and about 133 personal aides, as well as an unwieldy number of ministries, departments and agencies, MDAs, all drawing mouth-watering salaries and allowances from the national treasury. For instance, about 133 personal aides service the president, the vice-president, as well as the first lady. These aides, who are mostly political appointees, include the Chief of Staff to the President, Deputy Chief of Staff to the Vice President, Principal Secretary to the President, Principal Secretary to the Vice President, 25 special advisers, 42 senior special assistants, 52 special assistants and 12 personal assistants. A similar structure is in place at the state level. The list here includes the governors, their deputies, about 15 commissioners on the average, a horde of special assistants and advisers, MDAs with thousands of civil servants on government payroll. In fact, the number of special advisers engaged by Isa Yuguda, governor of Bauchi State, during his first term is very instructive here. Yuguda had as much as 1,200 special advisers on the payroll, many of which do not have personal offices. The wastefulness is replicated in the National Assembly, which is bicameral, with 360 members in the lower house and 109 in the upper house. The legislators themselves have hundreds of special assistants and administrative staff, all earning billions of naira in salaries and allowances from government. Commenting on the legislators’ mouth-watering salaries and allowances in Abuja during the nation’s 51st independence anniversary, Richard Dowden, a British journalist, had described as unacceptable the fact that Nigeria, a country with 10 per cent of the world’s maternal and child mortality and 10 per cent of the world’s children out of school, has the highest paid politicians in the world. “One million dollars for a parliamentary salary with another one million dollars in expenses is obscene,” noted Dowden. George Oguntade, retired Supreme Court judge, had argued at a seminar to mark Nigeria’s attainment of 10 years of civilian rule in 2009 that, with the way things are going, Nigeria cannot operate the existing 36-state structure and make progress. Be that as it may, there is also the perception that the centre is getting more than its fair share of the cake, and that this is depriving the federating units of critical funds required for development. Ikechukwu Unegbe, a writer and legal practitioner, who echoed this view, said Nigeria’s revenue allocation formula top-heavy, and requires urgent review. “This structure breeds poverty and lack of development within her federating units, comprising of states and local government areas,” he noted, adding that the entire system should be remodelled to reflect the principle of true federalism.

THE NATION MONDAY JULY 21, 2014

POLITICS

How far can OmoAgege go in Delta?

The Peoples Democratic Party (PDP) is on the prowl. Ahead of next year’s elections, the main opposition party, the All Progressives Congress (APC), is being targeted for liquidation. Group Political Editor EMMANUEL OLADESU examines the implications of the gross intolerance and impunity for democracy.

Ovie Omo-Agege is former Secretary to Government in Delta State. He is an aspirant for governorship in the Peoples Democratic Party (PDP). But, can he get the ticket? EMMANUEL OLADESU examines the hurdles on the way.

2015: PDP and emasculation of opposition

VIE Omo-Agege, lawyer and politician, is a veteran governorship as pirant in Delta State. He has been on the queue for power since 2007. Having served as commissioner and Secretary to Government, his priority is to succeed Governor Emmanuel Uduaghan, who will bow out of office next year. Three years ago, Omo-Agege defected from the Peoples Democratic Party (PDP) to the defunct Action Congress of Nigeria (ACN). But, he later dumped the party and retraced his steps to his former party. Last year, he contested for the Senate, but without success. Omo-Agege is from a prominent family in Urhoboland. His father is a respected jurist. He is not the only person in the race. Others include Chief Kenneth Gbagi, Dr. Ngozi Olojeme and Senator Ifeanyi Okowa. The questuion is: can OmoAgege beat them at the primaries? The politics of Delta State is as big as its slogan, The Big Heart. According to political watchers, many factors will shape the governorship contest. The first is the strength of the Urhobo ethnic group, which has not produced the governor before, and the quest by the opposition party, the APC, for power shift. There is the pervading feeling in Delta that, in the spirit of equity, fairness and justice, the next governor should come from the Delta Central.Thus, both parties are studying the aspirants from the zone. However, zoning does not prevent aspirants from other districts to vie for the office. The only difference is that, while Delta North has enjoyed a fair share of federal appointments, the opportunity has eluded Delta Central. Therefore, Delta Central is perceived as a marginalised zone. The second factor, according to observers, is the calibre of candidates. It is doubtful, if a politician without pedigree can succeed Governor Emmanuel Uduagban. The governor will also not be indifferent to the tendency of his successor. Another factor is the ‘Ibori factor’. Despite his ordeals, the former governor, James Ibori, has remained a power broker in the Southsouth state. Sources said that he will have an input into the emergence of Uduaghan’s successor. Omo-Agege is an administrator and business mogul. During his National Youth Service Corps, he served with the Directorate of Criminal Investigation and Intelligence of the Kwara State Command of the Nigerian Police Force in 1987. Later, he set up his practice. He was the Executive Assistant to Ibori in 2003, Commissioner for Special Duties, and the SSG. Other aspirants cannot be ignored. Okowa is a successful medica doctor and chairman of the Senate Committee on Health. Gbagi is a former Minister of State. Olojeme is the Chairman of the Nigerian Social Insurance •Omo-Agege Trust Fund.

How Nigeria can develop, by Ogun first lady By Adebisi Onanuga

IFE of Ogun State governor Mrs. Olufunso Amosun has said that human and infrastructural development are key elements in poverty eradication and employment generation, especially in a developing economy like Nigeria. She advised government at all levels to focus more in these areas to improve the lots of the masses. Mrs. Amosun spoke while commissioning some constituency projects facilitated by the Speaker of the House of Assembly, Hon. Suraj Ishola Adekunbi, in his Yewa North Constituency. Mrs. Amosun said human capital development through empowerment for self-sustenance would always lead to employment generation. She advised leaders to always give back to the people to reduce poverty and deprivation. Commending the Speaker for following the footsteps of the governor, Senator Ibikunle Amosun, she charged politicians to make life better for the people through quality service. Mrs. Amosun urged the people to support government to advance more democratic dividends to the people. He that the people focus of good governance. Speaking earlier, Hon. Adekunbi said he was committed to offer good governance, enhance human capital development in order to add value to the living standard of the peopl. He emphasised that the collaboration and support from the executive arm had been yielding fruits in the ongoing massive road expansion and construction. ”My election into the seventh legislature of the Ogun State House of Assembly and my subsequent emergence as the Speaker of that great House is a call to offer good governance, enhance human capital development and alleviate poverty amongst our people”, the Speaker said. According to him, the projects, which included two blocks of classrooms at Ayetoro and Sunwa, modern public toilets with borehole in Ayetoro market, and security patrol van donated to Vigilantes Service will boost security of lives and properties. Other items included school furniture for school pupils, motorcycles, deep freezers, sewing and grinding machines, hair dryers and generating sets. Adekunbi lauded Amosun for delivering democratic dividends, to the people. He recalled that, as the Speaker, he had facilitated the construction of Ayetoro Olodo road, Ayetoro-Olorunda road, Joga-Ilogun modern bridge and IdagbaOlodo Modern bridge and distribution of seven transformers to boost electricity. He maintained that support had been given to education in his constituency through construction of additional classrooms, enrolment of NECO/SSCE fee for 50 Senior Secondary School students in 2012 and 2013, while 25 qualified students were registered for JAMB this year. The Speaker said that over 11 communities had been assisted through construction and repair of 11 different boreholes.

ROM Ekiti to Zamfara, from Bornu to Osun, and from Kano to Rivers, a culture of political intolerance is brewing. To observers, opposition figures are targets of political attacks. In its desperation for power, the Peoples Democratic Party (PDP) has regressed to a do-or-die tactics. Now, ahead of next year’s polls, the polity is being enveloped in anxiety. Last week, the All Progressives Congress (APC) raised an alarm over clandestine plans to wipe out the opposition. Its National Chairman, Chief John Odigie-Oyegun, cried out that President Goodluck Jonathan had instigated the Houses of Assembly to stage rebellion against legitimate authorities at the state level. He said legislators were being financially induced to remove APC governors so that their positions can be taken over by Peoples Democratic Party (PDP) chieftains. It is an understatement. To recapture Adamawa State, an impeachment was orchestrated against Governor Murtala Nyako. “The impeachment was militarised. Soldiers were guiding the members of the impeachment panel, who had been instructed to arrive at a pre-determined outcome. The objective was to get the governor out of the way”, said Lai Mohammed, the APC National Publicity Secretary. Some rights activists have described the impeachment as illegal. They claimed that the impeachment notice was never served on the governor. Besides, the speed with which the panel did the alleged hatchet job was confounding. The panel sat for two days. Reflecting on the governor’s ordeals, pro-democracy crusader Joe Igbokwe said that the Presidency and the PDP have declared war on the opposition. He said the business of the opposition in democracy is beyond the ken and comprehension of desperate PDP leaders. “I saw it coming. After the registration of the APC and the defection of some PDP governors to the APC, I warned that there would be intimidation, subterfuge, brigandage, suppression, oppression, repression, force, harassment to fight the APC. They first went to court to stop the governors and failed. Now, they have resorted to using stolen money to buy lawmakers in various Houses of Assembly to impeach selected APC governors”, he fumed. Igbokwe, who is the Lagos State APC Publicity Secretary, added: “Using the heavy and weighty instrumentality of the Federal Government, the Presidency and the PDP have decided to decimate and desecrate the opposition by crude and rough tactics.” Simultaneously, the PDP also turned the heat on Nyako’s counter-

•Chief Odigie-Oyegun

part in Nasarawa State, Tanko Almakura. Anxiety is mounting in the Northcentral state over moves to displace the governor by the exuberant legislators acting the scripts of their Abuja sponsors. In fact, OdigieOyegun alleged that the Federal Government harboured plans to exterminate APC governments in Borno, Edo, Osun and Rivers states. In Borno State, Governor Shettima Kashim has not had rest of mind since the Boko Haram sect started its insurgency. The Federal Government has been criticised for not resolving the security challenge. Bornu is one of the strongholds of the APC. Now, there are fears that the Independent National Electoral Commission (INEC) may not hold elections in the state next year. It this happens, administrator in the image of the PDP will be appointed by the Federal Government to steer its affairs, until there is a more congenial atmosphere. Igbokwe blamed the Federal Government for not nipping the Boko Haram insurgency in the bud. He also objected to attempts by the PDP to shift the blame for its ineptitude to the APC “to attract the sympathy of Nigerians and use it to remain in power, no matter whose ox is gored. The wrong labeling, he said is in bad faith, recalling that the late National Security Adviser, Gen. Patrick Aziza, had attributed the insecurity to the internal struggle for power in the PDP. “The PDP has furiously claimed that the APC is responsible for Boko Haram. Femi Fani-Kayode, who ran to the PDP to escape legal action for alleged corruption while serving as the Aviation Minister, claimed that Modu alli Sherrif, the former governor of Borno State’s presence in the APC was proof that the APC is behind Boko Haram. Two days ago, the same PDP that is desperate to pass its liabilities to its enemies opened

the closed Maiduguri Airport for no other person than Modu Sherrif because he has expressed intent to decamp to the PDP,” he added. In Edo State, crisis has seized the House of Assembly. Four legislators recently defected from the APC to the PDP. APC leaders have alleged that more are being induced to jump ship, preparatory to impeachment. The crisis escalated when the plot leaked. Sources said that, although it is wishful thinking to contemplate impeachment in Edo, the attention of the governor, Adams Oshiomhole, can be diverted by the hawks. In Rivers, Governor Rotimi Amaechi has been sleeping with one eye closed. Following the strained relations between him and the President, there have been moves to draw the curtains on his tenure. The former Police Commissioner, Joseph Mbu, became a thorn in the flesh of his administration. A source said that the PDP leaders are still plotting the impeachment of the governor, despite his popularity. Last month, the PDP lived up to its threat to capture Ekiti State. Through what APC leaders described as photocronic device, the APC governor, Kayode Fayemi, was defeated by his PDP challenger, Ayodele Fayose. The case is now before the tribunal. In Osun State, there are fears that the same device may be used for the next month’s governorship election. Besides, the APC has raised an alarm over plans by the electoral agency to disenfranchise many voters in APCdominated local governments. “Permanent voter’s cards are being denied to APC members. They want to either rig or reduce the APC votes”, alleged Sola Fasure, Governor Rauf Aregbesola’s media aide. Since the emergence of the mega opposition party, the quest for power shift has been on the front burner. Both PDP and APC have been flexing muscles in the media. But, APC chieftains have also complained about media censorship. Besides, Igbokwe said that security agents are being mobilised to play obnoxious roles on poll days. “Freedom of speech, association, movement and expression are systematically being curtailed in Nigeria. Today, you cannot appear on any television station without getting a clearance from the National Broadcasting Commission (NBC), if you are from the opposition party. Today, we fear that all the nation’s security agencies have been given insttructions to crush the opposition at all cost. They are now mobilised for obnoxious roles during elections and they are put at the beck and call of the PDP and the fixers of the party, whose inordinate quest for power has become demonic”, he added.

Don’t torment opposition governors, labour tells Jonathan

HE impeachment of the All Progressives Congress (APC) governors is suspicious, the National Vice President of the Nigeria Labour Congress (NLC), Comrade Isa Aremu, has said. He said that the sanctity of tenure is the sustainer of democracy. Aremu, who is a delegate to the National Conference, spoke in Ilorin, the Kwara State capital. He urged President Goodluck Jonathan not to use his office to torment governors in the opposition party. Aremu said: “The one that is worrisome to me is the one of Nassarawa. The impeachment notice was served at the time the President

From Adekunle Jimoh, Ilorin

who comes from another party was visiting the state. We should not give the impression that the President is using his office to torment a governor in an opposition state. I don’t think this is the intention of the President. Even, the timing alone makes it to be suspicious. The President is the elected President. Currently, he is our President. He has the right to relate with elected governors, but he cannot relate with you when as he is arriving at the state, the governor’s job is being threatened. “I want President Jonathan to use his office to re-direct our political discourse along the line of statesmanship. He has done it before

and I think he can do it again. Several times, he was threatened with impeachment and Nigerians stood up to say no. “I am not a fan of some of these governors. Some of them are known for recklessness, a lot of executive impunity. A good number of them engage in self-help for themselves, rather than public service for their people. Of course, there are some governors that have also performed who endeared themselves to the electorate in their respective states. He added: “Our constitution is clear. A governor has the mandate to be in office for four years after which we go for election. If the electorate want him or her, he or she is given another mandate for four years.

THE NATION MONDAY, JULY 21, 2014

THE NATION MONDAY, JULY 21, 2014 USEFUL PHONE NUMBERS ON ANY EMERGENCY Council endorsed the useful phone numbers submitted by the security agents in case of any emergency on the metropolitan Roads. Accordingly, the public may easily contact KAROTA for: Breakdown of Vehicle(s), Traffic Congestion, Accidents, and Illegal/Wrong Parking on – 08091626747. Similarly, the State Police Command could be contacted on – 08032419754, 08123821575. In addition, the State Fire Service can also be contacted on – 07051246833, 08191778888.

158TH KANO STATE EXECUTIVE COUNCIL MEETING

PREPARED BY COUNCIL AFFAIRS DIRECTORATE, OFFICE OF THE SECRETARY TO THE STATE GOVERNMENT, GOVERNMENT HOUSE, KANO. aintaining its commitments to serve as well as deliver dividend of democracy to the State citizens, Governor Engr. Rabi'u Musa Kwankwaso, FNSE presided over the one hundred and fifty eighth (158th) sitting of the Kano State Executive

Council. Today Wednesday 16th July, 2014 (19th Ramadan, 1435 AH). Thirty eight (38) memoranda from eleven (11) MDAs were tabled for deliberation by Council of which eighteen (18) were approved for execution with an expenditure of Four Hundred and Forty Six Million, Six Hundred and Seventy Six Thousand, Seven Hundred and Sixty six Naira, Forty Five Kobo (N446,676,766.45) covering sixteen (16) projects while the remaining two (2) were on policy issues. Thus;

1. OFFICE OF THE SECRETARYTO THE STATE GOVERNMENT The Secretary to the State Government submitted fourteen (14) memoranda for deliberation by Council on behalf of the Chairman and some MDAs where Seven (7) were approved for execution as follows; a) Request for Funds to Enable Payment of Feeding Cost in Respect of 500 and 600 Cadets of Fourth (4th) Batch Course for Ninety (90) Days and Sixty (60) Days at Zakirai in Gabasawa and Karaye LGCAs Conducted by the State Corporate Security Training Institute:The Secretary to the State Government endorsed the cited request from the authorities at the State Corporate Security Training Institute and presented it to Council for consideration. Details were presented along with the financial implications to the tune of N52,650,000.00 which was requested for release by Council for the stated purpose. Council acknowledged the presentation and approved for the release of the requested sum of N52,650,000.00 to the Secretary to the State Government for onward payment to the authorities at the State Corporate Security Training Institute to cater for the following incurred expenditure. Viz; SN Number of Students Number of Days Feeding/Head (N) Total cost (N) i. 500 (Gabasawa) 90 650 29,250,000.00 ii. 600 (Karaye) 60 650 23,400,000.00 Total = 52,650,000.00 b) Presentation and Request for Funds to Enable Payment of Compensation to Owners of Plots Affected by the Extension of School of Environmental Studies Gwarzo:Council was politely reminded, through contents of this memorandum of its approval granted for the release of the sum of N80,441,092,00 for the cited purpose via Council Extract No. SSCA/CA/EX/7/1/228 dated 15th April, 2013. The funds were appropriately disbursed to the affected land owners from which complaints were received that the following verified omissions existed. Viz; i. Twelve (12) Farmlands/nine (9) Plots - N3,015,900.00. ii. Economic Trees - N1,458,000.00. Total = N4,473,900.00. Therefore, Council was requested to approve the release of the sum of N4,473,900.00 to enable the State Ministry of Land and Physical Planning pay the stated omitted compensations. c) Presentation and Request for Funds for the Upward Review of Monthly Operational Fund for the State Drainage Committee:The Senior Special Assistant/Chairman Drainage Committee submitted the cited request which was endorsed by the Secretary to the State Government and presented to Council for consideration. Specifically, the request was for the upward review of the monthly operational fund for the State Drainage Committee from N1,231,150.00 to N2,407,880.00 considering the additional two (2) Tractors allocated to the Committee. Council noted, considered and approved an upward review from N1,231,150.00 to N1,500,000.00 as monthly operational fund for the State Drainage Committee and directed the release of the sum of N2,353,460.00 to cover understanding two months for May and June, 2014. d) Request for Funds to Enable Conduct of a 2 - Days Capacity Building Workshop for Community Based Associations in Kano Metropolis Scheduled for (30th - 31st July, 2014) at Mumbayya House:The Sustainable Kano Project (SKP) submitted the cited request which was endorsed by the Secretary to the State Government and presented to Council for consideration. Details on the fifteen (15) requirements costed to the aggregate sum of N740,000.00 were recommended to Council for consideration and approval for release for the stated purpose as substantiated. Council noted, considered and approved as requested. e) Request for Funds to Enable Payment of Three (3) Months Sitting Allowances to the State Steering Committee on Investment Climate Programme (ICP):The State Steering Committee on Investment Climate Programme comprises seven (7)

Members entitled to a sitting allowance of N30,000.00 each monthly. The allowances accrued to the tune of N630,000.00 in three (3) months (April - June, 2014) (i.e. N30,000.00 x 3 x 7 = N630,000.00) and was requested for release by Council. Council acknowledged the Statutory Nature of the request and approved as follows; i. Release of the sum of N630,000.00 to the Secretary to the State Government for disbursement to the seven (7) Member Committee as their Rabi’u Musa Kwankawaso sitting allowances for three (3) months (April June, 2014). ii. That the seven (7) Member Committee cited be dissolved henceforth. f) Presentation of the Eighth (8th) Progress Report Forwarded by Senior Special Assistant Kwankwasiyya City:The Secretary to the State Government endorsed the cited progress report and presented the summary to Council for consideration and noting. i. Kwankwasiyya City consists of fifty three (53) Road Network System of 23,357.50M length; 593 residential plots of size 30 x 45M; sixty four (64) Commercial Plots; one (1) Governor's Lodge; one (1) Central Mosque; one (1) Fire Service Department (Unit); five (5) Islamiyya Schools; six (6) (five (5) daily prayer mosques); one (1) Neighbourhood Market; Nursery School; five (5) Play Grounds; Police Station, two (2) Primary Schools; seven (7) Refuse Collection Centers; Secondary School; Resource Center; Five Star Hotel; three (3) Filling Station; Amusement Park; two (2) Parks and a Garden. Similarly, the project include two (2) Shopping Malls; Hospital; three (3) Bridges; 2 - Lane dual carriage and single carriage way; Close and Link Roads; Reinforced Solid Filled Block Work Drainage on both sides; Box Culverts with Crossing and Access; Cover Slabs; Median and Street Lightning; Provision of Electrical Power Supply; Pipe Borne Water and Networking System. ii. That the Contractor has mobilized to site with all the necessary equipments. iii. That clearance of roads and filling/removal of unsuitable material and filling are completed and most of the roads are at the sub base/base level as well as priming of six (6) roads has commenced. That the excavation for the construction of drainages and culverts were substantially completed. iv. List of the Contractors and payment made to each Contractor with level of completion of the project was presented to Council for consideration. Council acknowledged the presentation, approved and directed the Ministry of Works, Housing and Transport to instruct and follow up on the Contractors to speed - up work at Kwankwasiyya City for its timely completion. g) Request for Funds to Enable the Kano Pillars Basketball Team Participate in the 2014 National Final - 8 (10th - 19th July, 2014), Lagos:The Kano State Sports Council submitted the request through the Ministry of Information, Internal Affairs, Youth, Sports and Culture which was endorsed by the Secretary to the State Government and presented to Council for consideration. Details on the requirements were presented along with the request for the release of the sum of N7,558,500.00 for the stated purpose. Council noted, considered and approved for the release of the trimmed sum of N5,000,000.00 to the Sports Council to enable participation of the Kano Pillars Basketball Team at the National Final - 8 schedule to hold from(10th - 19th July, 2014) in Lagos. 2. MINISTRY OF WORKS, HOUSING AND TRANSPORT The Ministry submitted five (5) memoranda for deliberation by Council. Three (3) of them were approved for execution as follows; a) Request for Funds to Enable Payment for Diesel (AGO) Supplied to the Taskforce Committee on Installation/Repairs/Reactivation of Street and Traffic Control Lights for the Month of April, 2014:The good work undertaken by the Committee on the continuous provision of lighting on our major streets need no emphasis. The Committee relentlessly sources the supply of electrical energy required from standby electricity generators powered by diesel (AGO). The supply for the month of April, 2014 was presented to Council for consideration at the sum of N83,519,260.00. Council noted, considered and approved as requested the release of the stated sum. b) Request for Funds to Enable Payment for Diesel (AGO) Supplied to the Taskforce Committee on Installation/Repairs/Reactivation of Street and Traffic Control Lights for the Month of May, 2014:The Urban Beautification Policy of the present administration was profusely applauded especially the continuous provision of Street Lighting on our major Streets despite the epileptic supply from PHCN. Such is only possible by using standby electricity generators powered by diesel (AGO) regularly supplied to the Committee for which the month of May, 2014.

THE NATION MONDAY, JULY 21, 2014 Council was requested to approve the release of the sum of N92,562,360.00 t enable payment for the diesel (AGO) supplied to the Taskforce Committee for the month of May, 2014 according to the details presented. Council acknowledged the authenticity of the suppliers and approved as requested. 3. MINISTRY OF EDUCATION One (1) of the two (2) memoranda submitted for consideration by Council from the Ministry of Education was approved for execution. Thus; Request for Funds to Enable the Construction of a Perimeter Wall Fence at Tahafizul Qur'an Boarding Secondary School Gaya:Cognizant of the resolve by the present administration to secure and fortify all Government owned buildings and facilities from unlawful trespass and pilfering, the Ministry of Education submitted the request for consideration by Council. Details were presented for consideration along with the request for the release of the aggregate sum of N31,008,081.11 by Council to enable execution of the following projects at Tahafizul Qur'an Gaya; i. Construction of perimeter wall fence - N29,371,556.98. ii. Construction of one (1) Gate - N1,003,761.31. iii. Construction of one (1) Security Post - N632,762.82. Total = N31,008,081.11. Council noted, considered and approved the release of the requested sum of N31,008,081.11 to enable execution of the stated three (3) projects at Tahafizul Qur'an Gaya on Contractual Arrangement to be supervised by the State Ministry of Education. 4. MINISTRY OFAGRICULTUREAND NATURALRESOURCE a) Request for Funds to Enable Provision of Empowerment Package to the 275 First (1st) Batch Trainees of the Institute of Horticulture, Bagauda, Kano:Pursuant to the laudable policy of the present administration to provide take - off empowerment package to each of the graduating trainees from any of the established Skill Acquisition Institutes, the request was submitted from the Ministry of Agriculture and Natural Resources for consideration by Council. Details were presented along with the request for the release of the aggregate sum of N36,363,750.00 for the undertaking. Council deliberated upon, appraised the request and approved for the release of the sum of N50,000.00 in respect of each of the 275no. first (1st) Batch Trainees of the Horticulture Institute, Bagauda aggregating to the sum of N13,750,000.00 for the 275no trainees. b) Presentation on the Need and Request for Funds to Revive the Operations of KNARDA Media Center:Agricultural Extension Services were presented to Council as the cardinal activities of KNARDA and its personnel. The Communication Support Services provided by the Media Center at KNARDA keeps farmers in Kano State abreast with developments in agricultural endeavours. Reportedly, the Media Center requires revival with the requirement for the release of the sum of N8,322,000.00. The details presented prompted Council to approve for the release of the requested sum of N8,322,000.00 to the Ministry of Agriculture and Natural Resources to enable KNARDA revive its Media Center according to the details presented. OFFICE OF THE DEPUTY GOVERNOR/HONOURABLE COMMISSIONER, MINISTRY FOR LOCAL GOVERNMENTS This Office submitted two (2) memoranda for consideration by Council. Only one (1) was approved for execution as follows; Presentation on the Need for Amendment to the State and Local Government Harmonized Rates and Levies Law 2014 Bill: Boards, Advertising and Signage:The Deputy Governor/Honourable Commissioner, Ministry for Local Government submitted the presentation for consideration by Council. Council was politely reminded of the passing of Kano State and Local Governments Harmonized Rates and Levies Law of 2014 in respect of taxes payable by Entrepreneurs and Private Companies and all taxes collectable by Local Government Councils. Further, Council was notified that Chris Parks Marketing Solution (CPMS) Nigeria Ltd. was commissioned as Consultant for the collection of revenue on Bill Board, Advertising and Signage in eight (8) Metropolitan LGCAs in 2012 and 2013. The Consultant studied the Bill and made the following discoveries; o Some fundamental omissions were made in some sections of the Bill. o Some grammatical errors were discovered. o Some revenue was lost for the State and Local Governments due to omission of revenue base related to outdoor advertisement. o The Consultant identified and Incorporate the missing areas and rates and forwarded harmonized rates and levies for the Urban, Semi - Urban and Rural areas in terms of payment of revenue by Private Individuals and Corporate Organizations. More details were presented to Council for consideration along with the request to effect the proposed nineteen (19) amendments on the content of the Bill. Council acknowledged the presentation and approved as requested. c) MINISTRY OF WATER RESOURCES Presentation on the Need and Request for Funds to Enable Emergency Repair/Renovation of Outlet Canal at Kafin Chiri Dam:The presentation was submitted for consideration by Council sequel to an earlier submitted emergency report on the dilapidated condition of the outlet canal at Kafin Chiri Dam. Details on the assessed condition of the site were presented to Council for consideration along with the scope of works required estimated at the cost of N6,860,497.87 for the stated purpose. Council acknowledged the project as appropriate and approved the release of the sum of N6,860,497.87 to the Ministry of Water Resources for its execution.

51 d) MINISTRY OF HEALTH Request for Approval and Release of Funds to Commence the Education of General Nurses and Post Basic Midwives at the Schools of Nursing Madobi and Post Basic Midwifery Gezawa:The Honourable Commissioner, Ministry of Health notified Council, through contents of this memorandum that, the Board of Nursing and Midwifery Council of Nigeria has approved the award of provisional accreditation status to the Schools of Post Basic Midwifery Gezawa and that of General Nursing Madobi, Kano State. The two (2) Schools are to commence the Education/Training of Post Midwives and General Nurses with effect from May, 2014. Nevertheless, the Post Basic Midwifery training will commence in September, 2014 while that of General Nursing will commence in November, 2014 at School of Post - Basic Midwifery Gezawa and General Nursing Madobi respectively. Details of the requirements and financial implications to the tune of N5,250,000.00 which was requested for release were presented to Council for consideration. Council considered the request as appropriate and approved the release of the requested sum of N5,250,000.00 to the Ministry of Health for the stated purpose. e) MINISTRY OF FINANCE Presentation and Request for Funds to Enable Payment of the Liability Incurred on the Provision of Erosion Control along Sharada Road:Office of the State Accountant General was presented with the cited issue for advice. The case was critically studied and the following two (2) recommendations were proffered to Council for adoption; i. That certificate No. 4 to the tune of N12,182,725.42 be paid to the Company from the Ecological Funds as it relates to erosion and flood control. ii. That retention to the tune of N2,473,461.89 should not be paid as Certificate No. 5 does not relate to retention. Council acknowledged the presentation and approved the release of the sum of N12,182,725.42 as recommended to effect payment for the stated liability. f) MINISTRY OF LAND AND PHYSICAL PLANNING Request for Funds to for the Construction of Sharada Road (Phase II): Link Road:Cognizant of the resolve by the present administration to provide qualitative infrastructure for use by the citizenry in the State, the Ministry of Land and Physical Planning submitted the cited request for consideration by Council. Sharada Road Phase II (Link Road) project was presented to Council at a distance of 900.00M (0.9KM) and was estimated to cost the most responsive Contractual sum of N121,406,068.05 which was requested for release to enable execution of the stated purpose. Accordingly, Council considered the importance of the link road among the roads network in Sharada Industrial Area and approved as requested. g) MINISTRY OF RURALAND COMMUNITY DEVELOPMENT Request for Funds to Enable Procurement and Installation of Electricity Relief Transformer at Hauren Yan' Wanki, Gwale LGCA:The cited request was submitted in response to the reported predicament of the people in the area regarding the almost total absence of electricity supply for a long period of time. The State Rural Electrification Board assessed the problem and proffered solution in the provision of a relief electricity transformer at the cost of N5,968,414.00. Congruence of the project to the policy of the present administration to provide qualitative infrastructure for use by the citizenry in the State, prompted Council to approve as requested. UPDATE ON ACTIVITES OF THE 158TH KANO STATE EXECUTIVE COUNCIL SITTING 1. SIGNINGOFANAGREEMENT BETWEEN THE STATE GOVERNMENTAND THE E-TRANSACT ON THE PRODUCTION OF ID CARD TO TRADERS AND BUSINESSMEN IN THE STATE Council witnessed the signing of an agreement for the production of ID Cards for the Traders and Businessmen in Kano State between the State Government and E-transact to meet the global banking and other business transactions. 2. MEETINGBETWEENTHE STATE GOVERNMENTANDTHE DIRECTOR DEVELOPMENT FINANCE ON MID-TERM REVIEW/ASSESMENT OF THIRTY SEVEN (37) MICROFINANCE BANKS IN THE STATE Council noted the meeting between the Government and the Director Development Finance on Mid-term Review/Assessment of thirty seven (37) Microfinance Banks where the delegation in company of BRAK from Bangladesh commended the Government of Kano State and assured their support to uplift the socio-economic wellbeing of the State and the Country in general. Accordingly, Council acknowledged the commencement of the construction of under - pass way at Gadon Kaya. Therefore, appeal to the General public to abide by the traffic rules/ regulations. 3. PLACEMENT OFMETERSATTHE STREET LIGHTS GENERATORS INSTALLED BY THE GOVERNMENT Council noted the placement of meters at the street lights electricity generators installed by the Government to ensure effective use of the diesel supplied to the Generators.

Signed: Hon. Commissioner, Ministry of Information, Internal Affairs, Youth, Sports andCulture

THE NATION MONDAY, JULY 21, 2014

NEWS

Falana: deployment of soldiers for elections is unconstitutional, illegal

By Adebisi Onanuga

•Falana

AGOS lawyer Mr. Femi Falana (SAN) has said it is illegal and ultra vires on the part of President Goodluck Jonathan to deploy the armed forces to maintain law and order during elections. Falana, in a statement yesterday, titled: "Illegal involvement of soldiers in election duties," said sections 215 and 217 of the constitution are abundantly clear that the power of the President to deploy armed forces for internal security is limited to the suppression of insurrection, including insurgency and aiding the police to restore order when it has broken down. Rather than use soldiers during elections, he advised that the police should be strengthened to discharge the duty of ensuring internal security while the armed forces are restricted to the defence of the nation's territorial integrity. He said under the current constitutional dispensation, the President and Commander-inChief of the armed lacks the power to involve soldiers in maintaining law and order during elections. "Even in the Northeast region, a state of emergency had to be declared by the President to justify the deployment of members of the armed forces as part of the extraordinary measures he was required to take to restore law and order pursuant to sec-

tion 305 of the Constitution. "Even then, the President had to seek and obtain the approval of the National Assembly for the said deployment for a specific period of time," he stated. Falana described as "misleading apologia for the militarisation of the recent governorship election in Ekiti State", an article by Bashorun Akin Osuntokun on "Militarisation and other fallacies" published in his weekly column in Thisday newspaper of Friday, July 11, 2014. According to him, Osuntokun, in commending the soldiers for displaying professionalism, "was curiously silent on the infringement of the fundamental right of Governor Rotimi Amaechi's freedom of movement, which occurred at Iju-Itagbolu in Ondo State, contrary to Section 41 of the Constitution. "The governor, who was billed to attend a political rally at AdoEkiti on June 19, 2014, was crudely turned back by the soldiers who claimed that they were acting on "orders from above. "Mr. Osuntokun was equally silent on the illegal curfew imposed on Ekiti State by the army. Or was any curfew declared by the relevant authorities that was not announced? A client, Mr. Bayo Fajimi, who was going home from Akure, Ondo State ( his place of residence), was disenfranchised as he was prevented by the soldiers from entering Ekiti State at 6.30 pm on June 20 because of the illegal curfew! Is the Bashorun not aware that the soldiers subjected every hotel at Ado Ekiti to a search without warrant between 10pm and 2am for the sole purpose of ejecting all those who could not give "satisfactory" explanation of their business in Ekiti State? Yet while all "illegal aliens" like Governor Amaechi and others suspected to be All Progressives Congress

members were harassed and expelled from the state by the army, some non-indigenes who are chieftains of the People's Democratic Party, including two serving ministers and an influential thug from Anambra State, were allowed to "monitor" the election. Indeed, they were fully protected by the armed gendarmes. "Even though the Bashorun admitted that he was "struck and inconvenienced by the rigour and saturation of the security blanket" on account of repeated security check-points, he dismissed the complaints of the militarisation of the election. As far as he is concerned, the United States Embassy had endorsed the militarisation by issuing a statement to the effect that, "the security forces collaborated effectively and provided a safe and secure environment free of major incidents". He added that Bashorun Osuntokun claimed that the soldiers displayed civility as they were "neither intrusive nor threatening". Falana, however, pointed out that the Americans, who issued the statement, do not involve armed troops in the management of their own elections. He added that the soldiers drafted to his community at Ilawe-Ekiti constituted themselves into an army of occupation. "Apart from assaulting individuals without any justification, they beat up a policeman on June 20, which led to a violent clash between the police and the army. As a result of the pandemonium which ensued, the main market in the town was abruptly closed down. I personally witnessed the brutality exhibited by the rampaging troops. I have other reports of human rights abuses committed in other parts of Ekiti State by those armed soldiers who usurped police duties of

SON arraigns motorcycle dealer for selling ‘fake’ parts

THE Standard Organisation of Nigeria (SON) has arraigned a 34-year-old man, Ekepereka Ani, at the Federal High Court in Lagos for allegedly selling counterfeit motorcycle spare parts. The agency said the accused person, his company, Ekepereka International Nigeria Limited and others at large “manufactured, sold and distributed” substandard motorcycle spare parts which resembled those that met SON and the Nigeria Industrial Standard requirements. The prosecutor, Assistant Superintendent of Police Olakanmi Omisope, said Ani and the others committed the alleged offence at 167, Zone 14, Main Market, Anambra State and in Lagos between January 1 and June 12 this year. Among the”fake” motorcycle brands found on the accused are 198 cartons of substandard Og-

By Joseph Jibueze

buawa Motorcycle Chain, 158 cartons of substandard Kotec Motorcycle chain and 166 cartons of E. Sunny Vespa Limited Spar Plugs. SON said the offences violated Section 517 of the Criminal Code, Cap C38 Laws of the Federation of Nigeria, 2004 and Section 15(1)(a)(b) and Section 20 of the Standard Organisation of Nigeria, Cap S9 Laws of the Federation of Nigeria, 2004. Ani pleaded not guilty to two-count charges bothering on the offences. Following an oral bail application by his lawyer, Mr. Kingsley Ugu, Ani was granted bail in the sum of N5million with one surety in like sum. Justice Ibrahim Buba adjourned till September 27 for trial.

Fed Govt urged to raise funding on education

HE Federal Government has been urged to increase the funding on education, to enable the country attain technological development. The Chairman of Omotayo College (Junior and Senior School)), Ogijo, Ogun State, Sir Tayo Opanubi, who spoke at the weekend at the 4th Graduation/ Valedictory Ceremony of the institution, said without a vibrant educational sector, no nation could attain greatness. Opanubi, an engineer, said if government increases funding on education , incessant strikes by the academic and non-academic workers of universities, polytechnics and colleges of education would stop. He enjoined individuals and corporate bodies to support government in funding education. The chairman of the occasion,

By Tokunbo Ogunsami

Alhaji Ayuba Bolaji, the Project Manager/Chief Executive, Ogun State Forestry Plantation Project, urged the graduating pupils to choose a career they have a flair for, so that they would contribute to the country’s development. “Parents and guardians should not force their children and wards to choose a career. They should allow them to go into the professions they have a passion for,” he added. The Vice-Chairman of the college, Lady Sarah Opanubi, said: “Our goal is to provide high quality education in a conducive environment. We have a passion for excellence and zero tolerance for exam malpractices and indiscipline.” The Head Teacher, Mr. Mike

Odubote, said: “Excellence is a by-product of determination, perseverance, discipline, diligence and courtesy; the core values upon which Omotayo College was built. “We teach our pupils in moral values, academic excellence and leadership prowess to become total children, who are poised not only to become leaders, but also to revolutionalise the world.” The Best Graduating Pupil Award for the 2013/2014 academic session was won by Nwaduba Uzochikwai. The Best Graduating Pupil, Science and Maths dept, is Ojo Oluwatobi. The Best Graduating Pupil, Business dept, is Okeowo Omolola. The Best Graduating Pupil, Humanities dept, is Isaac Janobest; while the Best Behaved Graduating Pupil is Okeowo Omolola.

maintaining law and order before and after the election", he said. He pointed out that with what he witnessed during the election, there was no role that the soldiers played that the mobile section of the Nigeria Police Force could not have played even better, adding: "Or when has the manning of road blocks become a military affair?" According to him, the three criminal elements, who were caught with a lorry load of ballot papers before the election were arrested by the police. "With the figure of 36,790 armed soldiers, police, state security service and civil defence personnel deployed for the Ekiti election, not less than one million armed troops will be required for the 2015 election. "Since the Federal Government cannot possibly mobilise that number of troops, the United Nations may be requested to send a Peace Keeping Force for the militarisation of the entire country during the general election. Falana recalled that when former President Obasanjo deployed the army during the 2003 general elections, over 200 people were killed by the security forces. He said the courts have consistently enjoined the Federal Government to desist from involving the armed forces in the conduct of elections. He cited several court judgments to back his claim that it is illegal to deploy soldiers for elections, including a lead judgment of the Court of Appeal in Yussuf v Obasanjo (2005) 18 N.W.L.R. (Pt 956)

96. Salami JCA (as he then was), held that "It is up to the police to protect our nascent democracy and not the military, otherwise the democracy might be wittingly or unwittingly militarised. This is not what the citizenry bargained for in wrestling power from the military in 1999. Conscious step or steps should be taken to civilianise the polity to ensure the survival and sustenance of democracy." He maintained therefore that the deployment of the armed forces for the maintenance of law and order during elections cannot be legally justified in view of Section 215(3) of the Constitution which has vested the police with the exclusive power to maintain and secure public safety and public order in the country. He said the President is only empowered by virtue of Section 217(2) of the Constitution to deploy the armed forces for the "suppression of insurrection and acting in aid of civil authorities to restore law order". The Senior Advocate said this, in effect, means that before the armed forces may be involved in the maintenance of law and order, there must have been insurrection or civil disturbances which cannot be contained by the Police. The Constitution, according to him, never envisaged that the armed forces will usurp the powers of the police with respect to the "preservation of law and order" in any part of the country.

Burial for Madam Chigbo

RS. Victoria Chinelo Okwunna Chigbo,

(nee Muoghalu), mother of Maureen Chigbo, Publisher/ Editor of Realnews Magazine, an online publication, has died. She died on June 22 at the National Orthopaedic Hospital, Igbobi, Lagos. Aged 80, the late Madam Chigbo hailed from Abidi Village, Umuoji, in Idemili North Local Government Area of Anambra State. She was a retired teacher , who reformed the lives of children. She was a devout Catholic In recognition of her hard work in the church, she was given a papal certificate as a life member of the Catholic Faith and installed as a patroness of the Catholic Women Organisation, Christ the King Parish, Onitsha. She inspired a lot of people and led a lot of souls to God with her dedication and devotion to religious activities. The remains of the late Madam Chigbo will be buried in Umuoji on August 1.

•The late Madam Chigbo

THE NATION MONDAY, JULY 21, 2014

NEWS Collapsed building kills three From Osagie Otabor, Benin

WO sons and a housemaid of Edo State Chairman of the Youth Sports Federation of Nigeria (YSFON) Osamudiamwen Osagiede have been killed in Benin, the Edo State capital, when a building collapsed. They were at the building to repair a bicycle when the tragic incident occurred. The names of the boys were given as Junior and Martins, aged 15 and seven. Their dad said: “It is a great pain to me. They were my only sons. They went there to repair their bicycles when a section of the building collapsed on them. They were killed instantly.” He said the matter has been reported to the police.

‘Embrace non-violence’ By Dayo Fakuade

HE Consul General of the United States Embassy, Jeffrey Hawkins Jr, has enjoined Nigerians to embrace non-violence as a means of conflict resolution. Speaking in Lagos at the unveiling of a reality television series: “Dawn in the Creeks”, Hawkins said the series are empowerment tools to forge a legacy of peace and transformation in the Niger Delta. He also noted that the series would enlighten the people in making just demands non-violently. Addressing participants at the event, the project’s Creative Director, Jeta Amata, who screened and trained the seven participants in Nembe, Bayelsa State, praised the Department of State for sponsoring the venture. He extolled the notion of non-violence as a means of conflict resolution and urged agitators to employ the tactics in resolving the problems plaguing the region.

PDP warns Ekiti Assembly over result of referendum on LCDAs From Sulaiman Salaweudeen, Ado-Ekiti

HE Peoples Democratic Party (PDP) in Ekiti State has urged the House of Assembly to disregard the results of the last Saturday’s referendum on the creation of Local Council Development Areas (LCDAs). The party, in a statement by its Publicity Secretary, Pastor Kola Oluwawole, in Ado-Ekiti at the weekend, said the position arose from the fact that the Assembly had been served notice of the suit filed by it (the party) challenging the exercise. The PDP added that the suit, filed on behalf of the party by its Chairman, Mr Makanjuola Ogundipe, was duly served on the Assembly and that the appropriate thing to do in line with the custom of a legislative body was to “stay action” on such matters. “The proof of service on the Assembly is there and the Assembly leadership knows the right thing to do, stay action on any matter in court until such is determined by the court’’.

‘Jonathan’s re-election non-negotiable’ From Mike Odiegwu, Yenagoa

HE National Youth Council (NYC) declared yesterday that President Goodluck Jonathan’s re-election next year was non-negotiable. Members of the National Executive Committee made the declaration shortly after arriving Yenagoa, Bayelsa State, for a meeting. NYC also called on security agencies to prosecute persons and groups calling for the nation’s dissolution.

•From left: Mrs Opral Benson; Princess Olayemi Fasawe, Pastor Ituah Ighodalo, his wife, Ibidun; Mrs Ope Oke, Ven Lanre Ogunmituyi and other members of Trinity House cutting the church’s fourth anniversary celebration cake in Lagos.

APC: impeachment plot against Amaechi will fail

HE All Progressives Congress (APC) in Rivers State has said any impeachment plot against Governor Rotimi Amaechi will fail. It said God who has been protecting him all these years, will “surely” see him to the end of his tenure on May 29, next year. The party lauded the governor’s commitment to serve the people. The APC, through its state Chairman, Davies Ibiamu Ikanya, said the defection of 24 members of the House of Assembly from the Peoples Democratic Party (PDP) to the APC was a step in the right direction. The Felix Obuah-led Rivers PDP, on April 29 last year, suspended all the proAmaechi lawmakers from the

From Bisi Olaniyi, Port Harcourt

party. The party said:”We are confident that God will not allow the evil machinations of the PDP to materialise. One thing going for Amaechi is that having spent eight years as Speaker of the House of Assembly and four years as the Leader of the Speakers’ Forum in Nigeria, he is in a better position to understand legislative power games. “We should also appreciate the fact that apart from politics, most of the lawmakers are his colleagues and political associates, who are too principled to sell out at this crucial time. “ Amaechi and the lawmakers have come a long

way. These lawmakers and the governor share the same political fate. They were all members of the PDP and were all suspended from the party. “The lawmakers are all victims of PDP’s brutality and high-handedness. Governor Amaechi and the G-25 lawmakers detest evil, greed and politics without principle. “We make bold to say that Rivers APC lawmakers are not only progressives and God-fearing democrats, but most importantly, true sons of Rivers State, who will not join our enemies to cause any confusion in the state. “These enemies of democracy have demonstrated their hatred for our governor and Rivers State. It is our

‘Jonathan, PDP not behind Nyako’s removal’

HE Peoples Democratic Party’s (PDP) National Publicity Secretary, Olisa Metuh, has described the impeachment of the former

By Bola Olajuwon

Adamawa State Governor, Murtala Nyako, as an act of democracy. Metuh said the impeachment was a constitution right granted the people of Adamawa State and it was exercised through the State House of Assembly’s members. The PDP spokesperson, in a statement yesterday, added that the lawmakers “accorded rule of law and due process the rightful place in removing Nyako.” Metuh added: “Therefore, allegations by the All Progressives Congress (APC) linking the national leadership of the Peoples Democratic Party (PDP) and President Goodluck Jonathan to this are purely escapist and can only come from revisionists and reactionary forces.” He added that it was unfortunate that the APC championing the rights of the people to choice of leadership was the same party turning against the constitutionally guaranteed

right of the people to withdraw legitimacy through impeachment and recall. The statement advised the APC to look inwards in finding answers to its woes and leave the PDP out of it, saying that “if a sitting governor who has spent over seven years in office could be removed by more than twothird of the members of his state assembly, reasons should be located to fundamental factors within rather than the trite excuses of external influence. “While we state in no uncertain terms that neither the PDP as a party nor President Jonathan is remotely or otherwise connected to the impeachment in Adamawa or elsewhere, we also wish to ask the APC to locate the Sword of Damocles dangling in some of the states which they control to the expression of the collective will of the people against bad governance as the PDP believes strongly in separation of powers and the sanctity of the legislature.”

Voter cards ready in Cross River

From Nicholas Kalu, Calabar

HE Independent National Electoral Commission (INEC) in Cross River State has said permanent voter cards and materials for the continuous voter registration are ready. Resident Electoral Commissioner Mike Igini said three days have been fixed for people to collect their cards at the polling units where registration took place in 2011. He said the exercise would begin from August 15 to 17, adding that to collect the cards, voters must have been registered in 2011.

•Amaechi

duty to ensure that they do not come here to scuttle everything that Amaechi has achieved for the state and its people. “We are pleased to congratulate the 24 lawmakers, who declared for the APC. By so doing, they have demonstrated that they are true progressives, who are resolutely committed to an egalitarian, virile and vibrant Rivers State.”

236 PDP members join Kwara APC From Adekunle Jimoh, Ilorin

WO hundred and thirty six members of the Peoples Democratic Party (PDP) have joined the ruling All Progressives Congress (APC) in Kwara State. The defectors attributed their decision to PDP leaders’ insensitivity to their plight. The defectors, mostly youths from Ajanaku ward in Ilorin South Local Government Area claimed to be members of the Solidarity Oba Abu Youth Vanguard. They were received by the Chairman, Local Government Service Commission, Alhaji Sulaiman Yusuf. The defectors claimed that PDP “lacks organisation, team work, credibility and service to humanity”. They lamented that the party leaders “lacks sincerity and do not have their interest at heart. They only make empty promises to gain popularity and followership among the youth of the community”. The group’s Chairman, Usman Olaiya, explained that they have nothing to show for their support for PDP leaders. Olaiya said: “They are so self-centred, they only want to benefit from us and care less about the situation of our group or the ward we represent.”

THE NATION MONDAY, JULY 21, 2014

NEWS Ramadan 24, 1435AH

RAMADAN KAREEM

•Sheik Zakariyah Abbas, representing Baba Adinni of Lagos, Sheikh AbdulAfeez Abou (left) presenting gifts to Naibul Amir (Vice-President) Muslim Students’ Society of Nigeria (MSSN) Lagos State Area Unit, Mallam Saheed Ashafa during Quran competition at University of Lagos main auditorium, Akoka.

•From left: Chairman, Ibeju-lekki Local Government, Kemi Surakat; The Onitedo of Oke Odo Iwerekun, Oba Tajudeen Elemoro; Senator ‘Gbenga Ashafa and Hon Wasiu Elemoro, during the annual Ramadan Tasfir organised by Senator Ashafa at Elemoro Palace, Ibeju-Lekki.

6.3 million Muslims perform Umrah

ORE than 6.3 million Umrah visas have been issued since the beginning of the season, an increase of 900,000 over the same period last year, said Mohammed Al-Bijawi, Haj Ministry branch director in Madinah. “This does not include the last 10 days of Ramadan, in which the numbers increase,”

he said. His words: “There has also been a 1.4 percent decline in the number of pilgrims who stay past the expiry of their visas. They usually have health issues or experience a delay in departure for one reason or another. “We can thank the drastic drop in the number of Umrah overstayers to the effective control mechanisms undertaken by

the Haj and Interior Ministries, in addition to the cooperation of the 48 Umrah service providers within the Kingdom and the 2,000 foreign agents. There are also several field committees conducting ad hoc checks on visa validity on the ground.” The Haj Ministry recently made it mandatory for Umrah firms not to send new groups of pilgrims until exist-

Journalists urged to report Islam with accuracy

RAMADAN GUIDE WITH FEMI ABBAS e-mail: femabbas@yahoo.com Tel: 08122697498

Exemplary leadership

EOPLE who are qualified to be called leaders always have exemplary character to be emulated. That is why Allah says (SAW) in Chapter 32 Verse 21 of the Qur’an thus: “You have a good example in Allah’s Apostle (Prophet Muhammad) for anyone who looks towards Allah and the Last Day and remembers Allah always”. As Head of State in Madinah, the Prophet interacted peacefully with the Jews and the Christians. He enacted laws which protected them and their political and economic interests. He supported them against the hostilities of the pagan states like the Persian Empire. And a whole chapter of the Qur’an (chapter 30 named Chapter of Rome) was revealed to assist the Prophet in his support for the Christians. The prophecy of victory in that chapter came to pass just nine in years as the Christians regained the territory they had lost to the Persian Empire. The chapter reads: “Rome, the (Christian Headquarters) has been defeated in the neighbouring land but after their defeat, they shall, themselves, gain victory within a few years. Allah’s is the command before and after. On that day, the believers will rejoice in Allah’s help. He gives victory to whomever He wills. He is the Mighty one, the Merciful”. A few years after that prophetic revelation, the Christian Greeks defeated the pagan Persians and regained the territory which had been taken from them in war. And the Muslims rejoiced with them. It will also be recalled that after Palestine became a part of the Islamic State shortly after the demise of Prophet Muhammad, Umar bn Khattab, the second Caliph, paid a visit to that country. And while there, the time for prayer came. The Christian Cathedral was quickly cleaned up for the Caliph to lead the Muslims in prayer therein. When he was asked to enter and lead the prayer he refused saying “You cannot turn a Cathedral into a Mosque, the people of the book have a right to worship in their way and inside their Cathedral just as you have a right to worship in your Mosque”. He then warned that “never should any Muslim, individual or group convert a church into a Mosque for the purpose of worship” reminding his people that the Prophet never approved of such in his life time. That is exemplary beyond mere tolerance. If adherents of other religions had followed this principle, the world would have been in perfect peace today.

ent pilgrims have left. “It is through such measures that the ministry has succeeded in controlling pilgrim traffic,” he said. Saudi Assistant Foreign Minister Prince Khaled bin Saud bin Khaled, said the number of incoming pilgrims never exceeds 400,000 pilgrims at a time.

JOURNALISTS have been enjoined to report Islam with accuracy rather than being sensational on issues associated with the religion. Managing Editor of Western Post, Mr Tunde Rahman, gave the charge in his paper presentation titled “Reporting Islam in The Media: Critical Appraisal” at the 19th Ola Olu Muslim Society Ramadan Lecture at the Wings Central Mosque, Iwo, Osun State. Journalists, Rahman said, are expected to report issues about Islam with clear understanding of what the religion is all about and what it preaches. He condemned media reports describing the terrorist group, the Boko Haram, as an Islamist organisation. Rahman said: “To report Islam well, journalists must be equipped. It is like you are covering the Senate and you are not familiar with the rules of the Senate and the Constitution of the country. To report Islam well, journalists must be conversant with the Quran and the teachings of Prophet Muhammad.” However, he said the bulk of the work lies with the Muslims to ensure Islam gets adequate and accurate reports from the media. He said: “What must we as Muslims do to ensure that the media report Islam and Issues about Islam properly and accu-

From Adesoji Adeniyi, Osogbo

rately? How do we ensure correct the seeming paucity of Islamic contents in the media visa-vis those of Christianity?” Rahman enjoined Muslims to provide more platforms to spread awareness about Islam and what the religion portends. “We can do a lot more by sponsoring programmes on radio and television to further propagate the ideals of Islam. Muslims Ulamas should also be in the vanguard of mounting training programmes on Islam for practising journalists and our university graduates. “We can also encourage more Muslims to go into the journalism profession to properly equip them with the much needed Islamic knowledge, which will rub off on their reportage. In the extreme cases, we can establish training schools where we can mix Islamic knowledge with journalist training,” he said. The Ramadan lecture held in honour of late Pa Saliu Fagbenro Falola and his late wife, Mama Salamotu Efunkemi, was attended by dignitaries including the Federal Commissioner of the Independent National Electoral Commission (INEC), Prof. Lai Olurode; the Aragbiji of Iragbiji, Oba Abdulrasheed Olabomi and the Akirun of Ikirun, Oba Rauf Olayiwola.

Atiku seeks harmonious co-existence From Abdulgafar Alabelewe, Kaduna

ORMER Vice President, Alhaji Atiku Abubakar has enjoined Muslims to make use of the last ten days of Ramadan to pray for peace, harmonious co-existence and unity. Abubakar made the call while donating N5,000 copies of the Holy Quran to Islamic organizations, Juma’at Mosques and schools in Kaduna yesterday. Represented by the Coordinator of the Distribution Committee, Malam Shehu Buba Umar said, the former Vice President urged Muslims to dedicate themselves in prayers to God before the end of the holy month. According to him, “the last ten days of Ramadan is a period when prophet Muhammad (PBUH) used to be awake throughout the night to pray to Almighty Allah. “We hope Muslims and other Nigerians would devote themselves in prayers for peace, harmonious co-existence and development of the country. The distribution of the Quran was aimed at supporting Muslims intensive recitation of the holy book,” he said. However, while receiving the Qur’an on behalf of the Sultan Bello Mosque, Sheikh Ahmad Gumi appealed to wealthy Muslims to pay Zakat from their wealth as commanded by Allah. Paying Zakat, he said, will reduce the hardship face by majority of the needy in the society.

•From left: The Caretaker Chairman of Ibadan North East Local Government, Mr Ladi Oluokun and some Islamic clerics during the distribution of over 450 bags of rice to associations and moques with the council area for Ramadan.

RAMADAN DIET If a person intends to do a good deed but cannot do it, Allah writes for him a reward of one good deed. If he both intends to do and performs that good deed, Allah writes for him a reward of ten good deeds and increases it up to seven hundred and more. And if the person intends to commit an evil deed but then changes his mind, Allah writes for him a reward of one good deed. If he both intends and commits that evil deed, Allah writes for him a punishment of one evil deed. (Prophet Muhammad) ,

SPONSORED BY CHAIRMAN, AGEGE LOCAL GOVT AREA, LAGOS ALHAJI JUBREEL ABDULKAREEM AND WIFE, ALHAJA SHERIFAT

THE NATION MONDAY, JULY 21, 2014

NEWS (SHOWBIZ) •Bruce and MBGN 2014 winner, Nnadi

Kate Henshaw goes into politics

19-year-old Iheoma Nnadi is MBGN 2014

T was a day of glory for 19-year-old Iheoma Nnadi, representing Akwa Ibom State, who emerged the winner of the 2014 Most Beautiful Girl in Nigeria at a spectacular grand finale held last Friday in Bayelsa State. Nnadi, a model signed to Boss Models in South Africa, beat 29 other contestants and won N3million cash prize, a brand new KIA car and a shot to represent Nigeria at the Miss World pageant later this year The beautiful evening saw a bevy on ladies who put up their best performances, thereby making it somewhat tough for the

judges comprising actress Osas Ighodaro, ex MBGN, Sylvia Nduka and former Mr. Nigeria, Bryan Okwara, to easily determine the winner. Hosted by IK Osakioduwa and Yvonne “Vixen” Ekwere, the ladies gave a lovely mime in their cultural attires as they danced to Tchelete by Davido & Mafikizolo. Other contestants who shone on the occasion were Miss Abuja (4th runner-up); Miss Osun (3rd runner- up); Miss Kwara (2nd runner-up) and Miss Edo (1st runner up). There were scintillating performances by Seyi Shay, Patoranking, Lola Rae, Yeka

Onka and Timi Dako. At the well-attended 27th edition of the pageant, awards were given to some other lucky contestants. They include: Miss Delta, winner of Best Costume; Miss Edo, winner of Miss Amity; Miss Kwara, winner of Most Charismatic and Miss Kogi, winner of Miss Photogenic. This year’s MBGN pageant kicked-off with a bang at the ultra-modern Gabriel Okara Cultural Centre, with 31 gorgeous girls representing their respective states. Each of the ladies had scaled through zonal competitions to earn a place in the grand finale.

Consequently, the MBGN 2014 winner will represent Nigeria at the Miss World competition in London, UK; the first runner-up will represent Nigeria at the Miss Universe competition, while the second runner-up will represent Nigeria in the Miss Tourism International competition. Over the last 27 years, the MBGN, which is organised by Silverbird Group, had produced winners who have excelled in all walks of life both in Nigeria and internationally.

Genevieve Nnaji announces top three acts in Act The Part contest

OLLYWOOD star Genevieve Nnaji has announced the top three acts in the Act The Part online contest for a chance to spend one exciting day with her, as voting ended on Sunday midnight. The two-week long online competition had received thousands of entries from enthusiastic fans who tried to re-enact a role from any

I •Ohio

described the category, which pitted him against other “amazing artistes”, as tough. During the media chat, which had in attendance VIMN Africa’s Colette Otusheso and many others, the sensational singer said: “When I was hanging out with the other nominees before the awards in LA, I never thought I would win because I have worked with almost everyone on that nomination list and

they are amazing artistes. The African category of the Best International Act was a tough one; so, when I was announced as the winner, I was absolutely stunned and elated.” In his view, Nigerian rap act, Ice Prince, said: “I was really excited when I heard them call Davido’s name. He is a really talented artiste and it’s encouraging to see African artistes being recognised for their hard work.”

Other talents nominated for the Best International Act Africa at the BET Award 2014 included Tanzania’s Diamond Platnumz, South Africa’s Mafikizolo, Ghana’s Sarkodie, Togo’s Toofan and Nigeria’s Tiwa Savage. The BET Awards 2014 held on Sunday, June 29, at the Nokia Theatre L.A. Live in Los Angeles and premiered on TV across Africa on BET International on July 1.

Honour for Matthew Ohio N line with its tradition of celebrating success, the Remy Martin brand treated the founder of Industry Nite, Matthew Ohio and his friends to a VIP-styled party at The Place, Lekki, Lagos recently. Matthew Ohio is a showbiz enthusiast, show promoter and businessman who started the Industry

OLLYWOOD actress Kate Henshaw is currently aspiring to represent Calabar Munical/Odukpani Federal Constituency at the House of Representatives under the platform of the Peoples Democratic Party (PDP). The actress, who turned 43 on Saturday, July 19, officially unveiled her campaign website on the same day. To qualify to run for the office under the PDP, the actress has to win the primaries scheduled for October this year. On what she plans to achieve as a candidate, the actress said: “I have a

strong interest and desire to serve my people and show that there is a better, more humane way to do things when you are in a position of leadership. It is also about putting the people first, being accountable to them as well as being accessible. I am also very keen on promoting and championing the provision of clean water, good roads and sanitation in my constituency. One of my key areas of focus will be provision of affordable education and quality healthcare, especially for expecting and young mothers, the less privileged and the physically challenged.”

Legends of Nollywood Awards holds December

movie of their choice. However, after a gruelling selection process, three acts made it to the top three positions from which only one winner will emerge via popular votes and have the opportunity to hang out with the Amstel Malta brand ambassador. The winner will also win a fabulous makeover, courtesy Amstel Malta.

BET 2014: I didn’t believe I’d win, says Davido

EW weeks after emerging the 2014 BET Best International Act winner, David Adeleke, aka Davido, has said that the honour came to him by surprise. The Omo Baba Olowo crooner, who was hosted alongside BET Best International Act 2013 winner/2014 BET Experience performer Ice Prince, at the upbeat Viacom International Media Networks (VIMN) Africa’s office in Ikoyi, Lagos, further

•Henshaw

Nite in 2009 as an independent platform for artistes to showcase themselves. According to the organisers, the Remy Martin Pacesetters VIP party is in line with the brand’s goal of celebrating Nigerian achievers across every walk of life. Guests present at the party were Tuface and Annie Idibia, Falz the Bahd guy, Davido, Skales, Sheyman, Kamal Ajiboye, IK Ogbonna, B Red, DJ Jimmy Jatt, Julius Agwu, Basketmouth, Bovi and a host of others.

RGANISERS of the Legends of Nollywood (LON), an annual awards ceremony aimed at recognising and honouring individuals who have shaped the Nigerian movie industry, have announced that the third edition of the show will hold on December 6, at the Banquet Hall of National Arts Theatre, Iganmu, Lagos. Paul Obazele, the brain behind the awards ceremony, said: “The Nigerian movie industry has had a rich history as a result of the untiring zeal and creativity of the trailblazers who •Obazele overcame enormous odds and challenges to birth an industry that has gained stars. There are so many global recognition. The heroes that do not need to legends and veterans of the pass on before we start to industry are known as the honour them. Nollywood Legends of Nollywood. They wouldn’t have been what it need to be recognised and is today, if these people acknowledged for their body had not put in what they of works.” had,” he added. According to Obazele, it is Among the activities time to pay tributes to the lined up for this year’s great personalities and event is an autographprogrammes that have signing event by some top provided the capacity which, Nollywood stars on Dein turn, has helped to shape cember 4 and 5. Apart from the industry. “They have this, there will be a movie blessed us with their gifts show for the less priviand talents. Talents that have leged at Cinema 1 and 2 of inspired generations and the National Arts Theatre, have continually raised new Iganmu, Lagos.

THE NATION MONDAY, JULY 21, 2014

NEWS Boko Haram: Outrage over Jonathan’s $1b loan request Continued from page 4

had been spent in the past or not. What we should be concerned with is how to tackle these challenges, which are not only threatening the fabric of our nation, but also interfering with our economic life. “In other words, we all know how much Nigeria has lost since this insurgency, oil theft and other maritime crimes started. What we have lost in a year is more than $10billion. So if we spend $1b to equip our military so that they can stop

or nip in the bud, this escalating criminality, I think is a welcome development.” “The only thing that I will ask the National Assembly to do in approving the loan is to improve on their oversight function, such that they will be able to monitor in great details, where the money will be spent, what it will be spent on, and the benefit capital, which the money will be able to generate in the area of security of lives and property in the country,” Nwobike said. Hon said : “The question that will arise is, what has been the ef-

fect of the spending on the military so far? Is it that it has not been fully utilised or there are some extraordinary measures requiring external borrowing, in addition to what has been budgeted for to take care of the military? “I think as the Commander-inChief, he is the person wearing the shoes and he knows where they are pinching him. “The National Assembly should extract an undertaking from the President to the effect that if this amount is approved,

he will tackle the insurgency that is ravaging our country. “The National Assembly should audit the military in view of the fact that there have been allegations flying here and there that substandard equipment are being supplied to soldiers fighting the insurgents and that heavy money has been misappropriated or taken away outrightly. “So, I advise that there should be probity and accountability to make Nigerians appreciate the imperative for looking for additional funds,” Hon said.

Jonathan, Shettima meet over Boko Haram’s Damboa massacre Continued from page 4

had a closed door session with the President on Friday night on the security challenges facing the state. The two leaders locked themselves up for about 45 minutes without any of their aides present. A source said: “The meeting had to do with the security situation in the state, especially attacks on Damboa and the withdrawal of troops from the area by military authorities. “The death toll had made the governor sad, in spite of the huge investment in security apparatchik in the state. “The military is unhappy that some local collaborators played key roles in the ambush of troops on July 4 which led to the killing of a Lieutenant Colonel in a tank by some suicide bombers. “The governor is seeking

more military assistance to save the state. No leader will be happy seeing his people being killed like fowls. And the President reassured the governor that more actions will be taken. “As if the assault on Damboa was not enough, the insurgents have served notices of attacks on nine more towns. It is like a part of Borno is under siege again after the gains made by the military. “I think they also had discussions on the fate of the Chibok girls and the President’s proposed meeting with some of the parents of the abducted girls and those who escaped.” Neither the Presidency nor Borno State government was willing to reveal the details of the meeting. Special Adviser to the President on Media and Publicity, Dr. Reuben Abati confirmed that the President met with the governor. Also, a top government official in Borno State confirmed that the gov-

ernor met with the President on Friday night. Barely 48 hours after the meeting, the military yesterday stepped up activities against the sect and ordered troops to rout out Boko Haram from Damboa. The Director of Defence Information, Maj.-Gen. Chris Olukolade, who spoke with our correspondent, said the military had ordered troops to firm up activities against the sect in Damboa and other vulnerable areas. He said: “We have put in place necessary machinery, including the patrol of vulnerable areas, to check the insurgents. Activities are being stepped up to curtail the menace.” Asked in what manner the activities had been stepped up, he replied: “I won’t go into details on the actions we have taken. I cannot disclose military plans. “We will not say when troops will take charge of Damboa to

avoid a repeat of the last ambush of these committed and loyal soldiers. But we are firming up deployment of troops to Damboa and other places. “We are ready for the insurgents but we will prefer to keep our strategies to ourselves because of the nature of the battle ahead.” Pressed to talk on the hoisting of flags in Damboa by Boko Haram, Brig.-Gen. Olukolade said:”From intelligence report, no hoisting of the flags was noticed in the sense that people are creating the impression. One or two persons may have hoisted flags in their compounds “The Nigerian military will deny them any freedom of action against the people this country. “Let me assure you that the military will not allow any portion of this country to bear any strange flag.”

geria. The government also agreed to indemnify and hold Levick and its agents “harmless” with respect to any claims or actions for libel, slander, defamation, copyright infringe-

ment, idea misappropriation or invasion of privacy arising out of the firm’s consultation. It was agreed that work would begin upon Levick’s receipt of the signed agreement and initial

payment. The funds are to be sent by cheque to Levick or by wire transfer to its banker, BB&T, Washington, DC, with account number 5156166334.

Govt signs N275m yearly PR deal with US firm

Continued from page 4

dent Goodluck Jonathan administration’s past, present and future priority to foster transparency, democracy and the rule of law throughout Ni-

Lawmakers split over Al-Makura Continued from page 4

talks with members of the Assembly on the need to halt the impeachment. Some of those involved in the talks are the Andoma of Doma, Alhaji Aliyu Onawu; Etsu Karu, HRH Luka Panyan-Baba and the Emir of Keffi, Alhaji Chindo Yamusa, among others. One of the royal fathers said: “We are intervening because Nasarawa is heterogeneous and we are thinking of the consequences of the impeachment on the unity, peace and stability of the state. “ The lawmakers have the constitutional right to remove the governor but of what use is impeachment with chaos and prolonged crisis? We cannot afford this now in this young state. “We have spoken with some

of the lawmakers to give their plan a second thought. We are optimistic that they will listen.” Among those expected in Nasarawa on Wednesday are a former Head of State, Gen. Muhammadu Buhari, all APC governors, Senators, members of the House of Representatives, the National Chairman of APC, Chief John Odigie-Oyegun, members of the National Executive Committee of APC. One of the leaders said: “We are going to Lafia to pay solidarity visit to the governor encourage the people of the state to sustain their support for AlMakura and prick the conscience of the Assembly members. “We hope the PDP leadership will put an end to the ongoing impunity which will serve no one any good in the end.”

‘How rebels shot down Malaysian jet’ Continued from page 4

two kilometres in a ‘border area’ of Russia before uploading the footage, filmed with a dashboard camera, on the internet. The cargo had no escort and Ukrainian sources have seized on it, captioning the footage: ‘A Russian blogger filmed the BUK M1 in Russia, the one that shot the Boeing.’ ‘For two kilometres, a blogger from Russia has been driving behind covered BUK 1M which, according to his words, had been driving from the Ukrainian border. His opinion is that it is exactly that BUK that made the shot,’ said one version spreading on the web. The driver is heard saying: ‘No kidding.’ While the footage is visibly in Russia rather than Ukraine, the exact location is not given.

A second truck is also evident in some frames. It was filmed at around 8.45pm on Saturday. Reports from Ukraine suggested the BUK had been smuggled in the dead of night into Russia soon after the plane was blasted out of the sky last Thursday. It came after images were released of a launcher rumbling through Torez, held by proRussian separatists, just two hours before the Malaysia Airlines flight was shot down. In a tense phone call with Russian President Vladimir Putin, British Prime Minister David Cameron, said Russia would have to ‘present compelling and credible evidence’ that the Kremlin-backed separatists were not to blame for 298 people - including 10 Britons - being killed, despite the images and footage.

THE NATION MONDAY, JULY 21, 2014

FOREIGN MUSINGS

Rwanda Genocide “Never Again”?, Try CAR

T is now twenty years ago. It seems we have once again as an international body of humanity forgotten our collective resolve of “” NEVER AGAIN” . We watched with aloof indifference and lame passivity as brothers hacked and machete each other in what is now known as Rwanda Genocidal ethnic cleansing. Negatively evocative words sprang out of broadcast media asking neighbours to kill cockroaches, referring to Tutsis and moderate Hutus. What happened? The plane carrying then Rwandan President Juvenal Habyarimana and Burundian President Cyprien Ntaryamira, both of Hutus extraction was shot down while approaching Kigali airport by some unknown entities. This sparked violent reactions which led to the orgy of killings in retaliation. In the wake, almost a million people were killed in the most horrendous manner which

Global Focus DAYO FAKUADE, Foreign Editor sms 08134230367

daborgu@gmail.com pitched brothers against brothers, neighbours against neighbours and even husbands against wives all in the name of ethnic cleansing. Then President William Blythe Jefferson Clinton, the 42nd, looked the camera in the eye and with deep emotions regretted the bloody aftermath. He along with his United Kingdom counterpart blocked the efforts at the United Nations to expand United Nations intervention force to deploy a meaningfully robust UN contingents that would have impacted positively and defensively in stopping the carnage that was to happen. genocide; rather preferring a powerless, ineffectual rag tag interventionist forces. According to Clinton, had the Western powers responded accordingly and timely, at least 300,000 lives could have been saved. The result was catastrophic as we witnessed the onslaught. Now we have another opportunity at international redemption as the events in neighbouring Central African Republic (CAR) unfolds. At present the death toll is climbing and

the international community seems to have forgotten NEVER AGAIN as much more of same ethnic cleansing seems to be rearing its ugly head here in the Central African Republic. The refugee number is climbing as people are being killed even in churches reminiscent of the horrors of Rwanda where we said NEVER AGAIN. So the international community should rise up in unison to effectuate NEVER AGAIN now that we can still do something to avert another catastrophe. What started as a retaliatory measure in Gaza Strip over three missing Israeli youths has now turned into a groundswell of offensive negativities claiming hundreds odf lives and wounding thousands in this occupied enclave. Once again, Israel’s staunch backer and ally, the United States of America said Israel has the right to defend herself from the Palestinian rockets. About seven Israelis have been killed in the encounter and the international community watches in amazement as an Egyptian brokered ceasefire fell apart within hours. On a tragic note, once again by sheer dint of fatalism, another Malaysian airliner went down during the week under review, not by disappearance but by a surface to air missire allegedly fired from the pro-Russian Supremacist group territory in southern Ukraine.. There has been accusations and counter-accusations from both the rebel groups and Ukraine government. There has been accusa-

Who are the Taliban?

HE hardline Islamic Taliban movement has proved to be a formidable fighting force in Afghanistan and a major threat to its government. The Taliban also threatens to destabilise Pakistan, where they control areas in the north-west and have been blamed for a wave of suicide bombings and other attacks. Many observers now believe that future peace in Afghanistan can only come if the government in Kabul negotiates with the Taliban. The announcement of Taliban plans to open an office in Qatar in June 2013 was seen as a positive step in those negotiations, but mistrust on both sides remains high. Hopes for peace talks were equally high early in 2012 before the Taliban in Afghanistan announced in a strongly-worded statement in March of that year that they were suspending preliminary peace negotiations with the US. The Taliban emerged in the early 1990s in northern Pakistan following the withdrawal of Soviet troops from Afghanistan. A predominantly Pashtun movement, the Taliban came to prominence in Afghanistan in the autumn of 1994. It is commonly believed that they first appeared in religious seminaries - mostly paid for by money from Saudi Arabia - which preached a hard line form of Sunni Islam. The Taliban’s promise - in Pashtun areas straddling Pakistan and Afghanistan - was to restore peace and security and enforce their own austere version of Sharia, or Islamic law, once in power. In both countries they introduced or supported Islamic punishments - such as public executions of convicted murderers and adulterers and amputations of those found guilty of theft. Men were required to grow beards and women had to wear the all-covering burka. The Taliban banned television, music and cinema and disapproved of girls aged 10 and over going to school. •Emerged in Afghanistan in 1994 •Mainly supported by ethnic Pashtuns •Toppled after US-led invasion of Afghanistan in 2001 •Fugitive leader Mullah Omar wanted, whereabouts unknown Pakistan has repeatedly denied that it is the architect of the Taliban enterprise. But there is little doubt that many Afghans who initially joined the movement were educated in madrassas (religious schools) in Pakistan. Pakistan was also one of only three countries, along with Saudi Arabia and the United Arab Emir-

ates (UAE), which recognised the Taliban when they were in power in Afghanistan from the mid1990s until 2001. It was also the last country to break diplomatic ties with the Taliban. Although Pakistan has in recent years adopted a harder line against Taliban militants carrying out attacks on its soil, new Prime Minister Nawaz Sharif - who was elected in May - has said talking to the militants is one of his priorities. In recent months at least three key leaders of the Pakistani Taliban have been killed in US drone strikes. Mullah Nazir was killed in January and Waliur Rehman was killed in May. In November 2013, the group’s leader in Pakistan, Hakimullah Mehsud, was reported killed in a drone strike. But despite these setbacks for the militants, there is evidence that their influence in Karachi has significantly increased. What is arguably one of the most internationally criticised of all Pakistani Taliban attacks took place in October 2012, when schoolgirl Malala Yousafzai was attacked on her way home in the town of Mingora. The attention of the world was drawn to the Taliban in Afghanistan following the attacks on the World Trade Centre in September 2001. The Taliban in Afghanistan were accused of providing a sanctuary to Osama Bin Laden and the al-Qaeda movement who were blamed for the attacks. Soon after 9/11 the Taliban were driven from power in Afghanistan by a US-led coalition, although their leader Mullah Mohammad Omar was not captured. In recent years the Taliban have re-emerged in Afghanistan and grown far stronger in Pakistan, where observers say there is loose co-ordination between different Taliban factions and militant groups. The main Pakistani faction was led by Hakimullah Mehsud until his death. His Tehrik-e Taliban Pakistan (TTP) is blamed for dozens of suicide bombings and other attacks. Observers warn against over-stating the existence of one unified insurgency against the Pakistani state, however. The Taliban in Afghanistan are still believed to be led by Mullah Omar, a village clergyman who lost his right eye fighting the occupying forces of the Soviet Union in the 1980s. Afghans, weary of the mujahideen’s excesses and infighting after the Soviets were driven out, generally welcomed the Taliban when they first appeared on the scene. Their early popularity was largely due to their

success in stamping out corruption, curbing lawlessness and making the roads and the areas under their control safe for commerce to flourish. They captured the province of Herat, bordering Iran, in September 1995. Exactly one year later, they captured the Afghan capital, Kabul, after overthrowing the regime of President Burhanuddin Rabbani and his defence minister, Ahmed Shah Masood. By 1998, they were in control of almost 90% of Afghanistan. They were accused of various human rights and cultural abuses. One notorious example was in 2001, when the Taliban went ahead with the destruction of the famous Bamiyan Buddha statues in central Afghanistan, despite international outrage. On October 7, 2001, a US-led military coalition invaded Afghanistan and by the first week of December the Taliban regime had collapsed. Mullah Omar and his comrades have evaded capture despite one of the largest manhunts in the world. They are generally thought to be taking refuge in the Pakistani city of Quetta, from where they are guiding the resurgent Taliban. But the existence of what is dubbed the “Quetta Shura” is denied by Islamabad. Despite ever higher numbers of foreign troops, the Taliban have steadily extended their influence, rendering vast tracts of Afghanistan insecure, and violence in the country has returned to levels not seen since 2001. Their retreat earlier this decade enabled them to limit their human and material losses and return with a vengeance. There have been numerous Taliban attacks on Kabul in the past two years and, in September 2012, the group carried out a high-profile raid on Nato’s Camp Bastion base. In the same month the US military handed control of the controversial Bagram prison - housing more than 3,000 Taliban fighters and terrorism suspects - to the Afghan authorities. In recent years the Taliban have also increasingly relied on roadside bombs as a means of fighting Nato and Afghan forces. The exact number of people killed by these devices is difficult to calculate but the interior ministry says they were responsible for killing most of 1,800 Afghan national police personnel who died in 2012. About 900 Afghan National Army soldiers were killed by roadside bombs during the same time period, estimates suggest. Culled from BBC Online

U.S envoy advises Niger Delta indigenes to be non-violent

HE Consul General of the USA in Nigeria Mr. Jeffrey J. Hawkins Jr. has enjoined Nigerians in the Niger Delta area to embrace non-violence as a means of conflict resolution. Speaking to newsmen in Lagos over the weekend at the unveiling of a reality Television series ‘Dawn in the Creeks’’, Mr. Hawkins said the TV series is a sensitization and empowerment tool which is aimed at forging a legacy of peace and transformation in the Niger Delta. He also noted that the tv series is aimed at opening the eyes of the people in making just demands about their wellbeing within the frame work of a non-violent medium. The Niger Delta Legacy Engagement Board was set by local stakeholders to actualize the efforts of the filmmakers for this project, he said, drawing seven individuals from three different communities in Bayelsa, Rivers and Cross Rivers States to tell the story and the plight of the people.

By Dayo Fakuade, Foreign Editor

The CG noted some of the achievements of the project as empowering the individuals in the movie project some of whom have been able to translate the skills learnt into other enduring and sustainable ventures. He is also of the opinion that the board will be on ground for the long haul even when the US government support ends. Addressing participants at the event, the Creative Director of the project Jeta Amata , who picked , screened and trained all seven participants in Nembe, Bayelsa State, praised the American Department of State for sponsoring the venture. He extols the notion of non-violence as a means of conflict resolution and wants his community to employ this tactics in resolving the myriads of problems plaguing the region. The reality TV series stated showing on select television stations across the country over the weekend. See your local listings.

tions of evidence tampering against the rebels who were alleged to have restricted access to investigators and even firing in the air to scare investigators. We will keep monitoring, but this is not the best time for Russia who was just slapped with another rond of sanctions by the United States with United Kingdom now ready to tow the same line on sanctions against Russia. With 193 Dutch on board the airliner, Germany is livid and the story is just unfolding with no end in sight. We are still following the Ebola story across West Africa and caution is the advisory for all travellers across the sub-region as death toll mounts. Do the needful, check in with your local health authorities as you transverse across the region. On a sad note, The Dreaded One knocked on the doors of the family of this columnist early yesterday with the passing away of my darling sister Mrs Ibidunola Florence Olaofe, nee Fakuade, an angel waiting in the wings of angel triumphal. Her ambience and conviviality will be sorely missed in all her 60 years on mother earth. As we conclude, our globe is our heritage. Lets continue to keep her clean in our everyday living. Go green, plant a tree in your neighbourhood and put a smile on a tight face, by doing an act of random kindness. Remember that Babatunde Raji Fashola administration extols us :”Life is better with Trees”” Sit under it and read a story to your child and grandchildren, you will be better for it. See you next week

Gaza’s death toll rising

AZA has suffered the highest death toll since Israel’s offensive began, with at least 87 people reported killed on Sunday - 67 of them in one area. Palestinian President Mahmoud Abbas said the deaths in the Shejaiya district east of Gaza City were a “massacre”. Witnesses spoke of bodies lying in the streets. A humanitarian truce was agreed in the area, but lasted less than an hour. Israel said that 13 of its soldiers had been killed since Saturday night. The soldiers were all from the Golani Brigade, the Israel Defense Forces said. It brings to 18 the number of Israeli soldiers who have been killed in the offensive. The ceasefire in Shejaiya was meant to last from 13:30 to 15:30 local time (10:30-12:30 GMT), according to an Israeli military spokesman. But a BBC team on the ground reported an exchange of fire less than an hour after the truce began. Both sides blamed the other for violating the truce. Israel earlier said it had expanded its operation launched 13 days ago - against Hamas militants. In an interview with BBC Arabic, Israeli Prime Minister Netanyahu described the Shejaiya district as a “terror stronghold” and a launch pad for rockets fired at Israel. Families ‘devastated’ The BBC’s Yolande Knell, in Gaza City, says there have been scenes of panic with thousands of residents fleeing the Shejaiya area. The death toll rose sharply over the weekend, with the number of Palestinians killed more than 425 since the operation began, according to Palestinian health officials. They say the number of wounded from the operation now stands at more than 3,000. Paramedics said that rescue workers have so far not been able to get to the eastern part of Shejaiya, an area very close to the Israeli border and about three kilometres (1.2 miles) away from Gaza City, which has seen heavy shelling. Sunday’s death toll is expected to rise. The majority of those killed are civilians, the UN says. •The Israeli military said it “neutralised” two militants who “emerged from a tunnel” in southern Gaza, with no harm to Israeli troops •UN Secretary General Ban Ki-moon is due to arrive in Qatar later to meet Mr Abbas •Hamas is continuing to fire rockets into Israel, with one landing in the city of Ashkelon Heavy Israeli bombardment of Shejaiya started overnight, Palestinians say The Israeli military says the ground offensive has been expanded to destroy a Hamas tunnel network The thick, black column of smoke is still rising from Shejaiya, north-east of Gaza City. Earlier in the day there was constant, intense Israeli shelling but a shaky, brief, humanitarian ceasefire produced a period of relative quiet. This enabled ambulances to enter the area. Medics pulled dead and wounded Palestinians from the rubble of their apartment buildings. Television pictures have been showing horrific, bloody scenes of dead elderly women and children. At the Shifa hospital, there is a traffic jam of emergency vehicles by the entrance. “The hospital was totally overloaded. For many of us, these were the worst scenes we’ve ever had...”

THE NATION MONDAY, JULY 21, 2014

FOREIGN NEWS

MH17 air crash: Recovered bodies put on train

HE remains of up to 196 people from the MH17 crash in Ukraine have been loaded on to refrigerated rail wagons, to be taken to an unknown destination. All 298 people on Malaysia Airlines flight MH17 died when a missile reportedly hit it on Thursday. Western countries have criticised pro-Russian rebels controlling the area for restricting access to the crash site. The rebels say they will hand MH17's flight recorders to the International Civil Aviation Organization. There is still no sign of the fully fledged independent investigation which is being demanded by the international community. As for the strong words from British Prime Minister David Cameron attacking Russia they are likely to have little impact on the rebels here. They are contemptuous of the West and are much more concerned with the local military balance than with any warnings from London. The UN Security Council has called for a full and independent

international investigation into the crash OSCE monitors say pro-Russian gunmen allowed them to visit more of the area on Saturday Ukraine's government and the rebels have accused each other of shooting down the Boeing 777, which was flying from Amsterdam to Kuala Lumpur. In other developments •US Secretary of State John Kerry said it was "pretty clear" Russia had transferred a missile system to the rebels which was allegedly used to down the jet •Ukraine produced what it said was a recording of another intercepted call between rebels (in Russian) saying Moscow had given orders not to hand the "black boxes" to international monitors. The authenticity of the tape could not be confirmed •Ukrainian Deputy Prime Minister Volodymyr Groysman said talks were under way with the rebels on letting the train leave rebel territory The freight train with its five sealed wagons has been standing at Torez railway station,

15km (nine miles) from the crash site. The carriages, with heavy closed doors, look like refrigeration units and there is the occasional smell normally associated with dead bodies, the BBC's Richard Galpin reports from Torez. An OSCE team was allowed to see three of the wagons and observed "tagged body bags", without being able to verify the figures. It's not clear where the train will take the bodies. Speaking in Donetsk, the biggest rebel-held city in the east, rebel political leader Alexander Borodai reportedly said the bodies would remain in Torez until international aviation inspectors arrived. He said they had moved the bodies "out of respect for the families", adding: "We couldn't wait any longer because of the heat and also because there are many dogs and wild animals in the zone." He also said his forces had brought the plane's "black boxes" to the city and he was supervising them personally.

Michael Bociurkiw, an OSCE spokesman, told reporters that some of the other bodies from the plane could have been incinerated during the crash, AP said. The passenger list released by Malaysia Airlines shows the plane was carrying 193 Dutch nationals (including one with dual US nationality), 43 Malaysians (including 15 crew), 27 Australians, 12 Indonesians and 10 Britons (including one with dual South African nationality), four Germans, four Belgians, three from the Philippines, and one each from Canada and New Zealand. There were 193 Dutch nationals on board flight MH17 In a mark of respect to the dead, Malaysia Airline says it is retiring the MH17 flight number. The airline did the same for MH370, which disappeared in March with 239 passengers and crew on board. Russia denies any involvement in the downing of the Malaysian plane, and has rejected Western allegations that it is stoking the Ukraine conflict.

Libya militias in renewed battle for airport

IVAL militias are locked in battle at Libya’s main international airport, with reports of at least four people killed in the fighting. Clashes resumed at Tripoli airport on Sunday, after attempts at a ceasefire failed. Missiles, rockets and tanks were said to be used. The fighting began last week, damaging planes and forcing the airport to shut. Libya has been gripped by instability since the 2011 uprising, with swathes of the country controlled by militias. Successive governments have struggled to disarm the rival groups. Fighters from the city of Zintan are fighting Islamist-led militias, including many fighters from Misrata, for control of the airport. At least two of those killed on Sunday were civilians, security officials said. “The airport was attacked this morning with mortar rounds, rockets and tank fire,” Al-Jilani al-Dahesh, an airport security official, told AFP news agency. On Sunday, smoke could be seen rising from the road leading to the airport The airport has been shut with all flights suspended The fighting was described as the most intense since clashes erupted at the airport on 12 July. A spokesman for the district, Mohammed Abdulrahman, said residents were caught up in the fighting. “The shells are landing on us from all warring militias,” he told Reuters.

Remains of a burnt Libyan airliner

Clashes were also reported at main road leading to the airport. In a statement on its Facebook page, the European Union mission in Libya said it was “concerned about the protracted conflict over Tripoli International Airport”, adding: “The only option is a political solution and a peaceful democratic process.” Libya has been hit by anarchy since the overthrow of long-serving ruler Col Muammar Gaddafi in October 2011.

Iran nuclear talks deadline extended

EU foreign policy chief Catherine Ashton and Iranian Foreign Minister Mohammad Javad Zarif in Vienna —Saturday

PHOTO:EPA

DIPLOMATS have agreed a four-month extension to the deadline for an agreement between Iran and world powers on Iran’s nuclear programme. The US says it will unblock $2.8bn in frozen Iranian funds, in return for Iran continuing to convert its stocks of 20%-enriched uranium into fuel. The talks have aimed to per-

suade Iran to limit its nuclear programme in exchange for the lifting of sanctions. World powers suspect Iran seeks atomic weapons, which Iran denies. The country insists that it is enriching uranium for use in nuclear power stations and for medical purposes. Reuters reports that negotiations will now resume in Septem-

ber, with a final deadline set for 24 November. “There are still significant gaps on some core issues which will require more time and effort,” said a joint statement issued by EU foreign policy chief Catherine Ashton and Iran’s Foreign Minister Mohammad Javad Zarif. Though talks have now been extended, let’s not forget that the two sides have failed to reach a much anticipated deal. The extension of talks is good news and bad. It is a sign that diplomacy could still work but opponents now have the chance to score in extra time. Some US Congress members claim Tehran is buying time to aid the Iranian economy, already choking under the pressure of sanctions. And hardliners in Iran are becoming more vocal against the

deal over fears it could mean better ties with the US. The odds against the deal are already high and both sides could use the next four months to derail any comprehensive agreement. US Secretary of State John Kerry said the US would “continue to vigorously enforce the sanctions that remain in place” on Iran, during the extended period of talks. But the US said it would allow Iran to access $2.8bn in funds that had been frozen after Iran agreed to continue converting its 20%-enriched uranium stocks during the four-month extension. The 20%-enriched uranium is a medium level of purity and experts say once it reaches that level it could be enriched to weapons-grade, or 90% purity, in a relatively short time.

MH17: Prayers across Netherlands for victims

ORSHIPPERS at church services across the Netherlands on Sunday prayed for the victims of the Ukraine air disaster and their next of kin, as anger built over the separatist rebels' hindering of the investigation into the downing of Malaysia Airlines At the St. Vitus church in the central city of Hilversum, Father Julius Dresme summed up the nation's pain. "It's terrible, and everybody's hearts are bleeding and crying," he said. "And it makes (people) restless and people feel sorrow, and feel a little anger but mostly sadness, confusion." In Rome, Pope Francis led thousands of tour-

ists and pilgrims assembled in St. Peter's Square in prayer for peace in Ukraine and the Mideast. "I invite you to remember and to keep praying for tensions and conflicts which are going on in different parts of the world, especially in the Middle East and in Ukraine," he said. Others mourned privately. At the Amsterdam student rowing club Skoll, a single member sat weeping Sunday as she wrote in a condolence book for two members of the club who died, Karlijn Keijzer and her boyfriend Laurens van der Graaff. Amid the grieving, Prime Minister Mark Rutte is pushing for Russian President Vladimir Putin to use his influence over the

rebels in eastern Ukraine to ensure a full investigation into the tragedy that killed 298 passengers and crew, including 193 Dutch citizens. Rutte angrily condemned the rebels Saturday evening for interfering with the wreckage and bodies in Ukraine. "This is totally disgusting. It is also serious because it undermines the investigation," he said. Rutte called Vladimir Putin on Saturday and had what he described as "an extremely intense telephone conversation" with the Russian president in which he urged him to exert his influence over the rebels and ensure there is a thorough, independent international investigation.

UNMEN have killed at least 20 soldiers in an attack on a checkpoint in western Egypt, security officials say. The attackers used grenade launchers and heavy machine guns when they attacked the desert post some 390 miles (630km) west of Cairo, officials said. It is not yet clear who carried out the assault. Militants have intensified a campaign against the security forces since the Islamist President Mohammed Morsi was ousted from power just over a year ago. The attack took place on the Farafra-Cairo highway in Wadi al-Jadid governorate, security officials said. Three of the gunmen were also killed, state-run news agency Mena reported. The country’s presidency has declared three days of mourning, saying: “Terrorism will be uprooted from every part of Egypt.”

28 Egyptian troops killed at checkpoint The area borders Sudan and Libya. Some reports suggested that the attackers could have been smuggling weapons from Libya into Egypt. The BBC’s Suzanne Kianpour in Cairo says the Egyptian army has been struggling to keep Islamist insurgents at bay. This checkpoint attack marks a significant victory for the militants in a campaign that has already claimed the lives of dozens of policemen and soldiers, our correspondent adds. The government led by former army chief Abdul Fattah al-Sisi has cracked down harshly on Islamists and other political opponents. Mr Sisi - who removed Mr Morsi from power - won May’s presidential election.

Widow wins $23.6bn tobacco suit

United Stated court has ordered the country’s second largest cigarette company to pay $23.6 billion (£13.8bn) to the wife of a smoker who died of lung cancer. RJ Reynolds Tobacco Company was hit with the punitive fine in addition to $16.8m (£9.8m) in compensatory damages. Cynthia Robinson took action against the firm in 2008, seeking compensation for her husband’s death in 1996. A company official said the verdict was “grossly excessive and impermissible under state and constitutional law.” During the four-week trial, lawyers for Ms Robinson argued that RJ Reynolds was negligent in informing consumers of the dangers of consuming tobacco. This negligence, the lawyers said, led to her husband Michael Johnson Sr contracting lung cancer from smoking after becoming “addicted” and failing multiple attempts to quit. “RJ Reynolds took a calculated risk by manufacturing cigarettes and selling them to consumers without properly informing them of the hazards,” Ms Robinson’s lawyer Willie Gary said. “We hope that this verdict will send a message to RJ Reynolds and other big tobacco companies that will force them to stop putting the lives of innocent people in jeopardy,” he added.

RJ Reynolds plans to appeal against the court’s decision, vice president and assistant general counsel Jeffery Raborn said in a statement. “This verdict goes far beyond the realm of reasonableness and fairness, and is completely inconsistent with the evidence presented,” he said.

PUBLIC NOTICE OLADIMEJI

I wish to inform the general public that I am Olajide Oladimeji Oluwafunsho and not Olajide Olamide Oluwafunsho. All former documents remain valid. General public take note.

BOLATITO

I formerly known and addressed as Miss Bolatito Adedamola Ebunoluwa/Bolatito Damola Ebunolu now wish to be known and addressed as Mrs Edun Adedamola Ebunoluwa. All former documents remain valid. General public take note.

ONUWA

I formerly known and addressed as Miss Onuwa Mary Chidiogo now wish to be known and addressed as Mrs Mary Chidiogo Mbaonum. All former documents remain valid NYSC, Ebony State University and general public take note.

CLIFFORD

I, formerly known and addressed as MISS CLIFFORD CHIBUZOR MILLICENT, now wish to be known and addressed as MRS MILLICENT CHIBUZOR BOI-SUNDAY. All former documents remain valid. The general public should please take note.

ITABUMHE

I, formerly known and addressed as MISS ITABUMHE JUSTINA, now wish to be known and addressed as MRS NDUBUISI-OSUJI JUSTINA. All former documents remain valid. The general public should please take note.

PUBLIC NOTE CORRECTION OF NAME

I Solomon Isigba. I am the sole proprietor of TOP SOLO AND COMPANY (NIGERIA),with Corperate Affairs Commission (CAC) registraction number PH/ 043138, which was registered on the 22nd of March 1999. That the name which i submitted for registration particulars is my real name, SOLOMON ISIGBA, it was discovered that the name on the record of Corperate Affair Commission is SOLOMON OYO, which is not my correct name. I hereby, wish to be known and addressed as SOLOMON ISIGBA, the sole proprietor of TOP SOLO AND COMPANY (NIGERIA) and not SOLOMON OYO. Corperate Affair Commission, Heritage Bank and general public please take note.

PUBLIC NOTICE

The general public is hereby informed that an application has been submitted to the Abuja Geographic Information System (AGIS) by Ivy Pharmacy Ltd for the registration of a Power of Attorney in respect of its interest in Plot No. 1512, Durumi District, Caadastral Zone B02, Abuja. Any objection to the application should be sent to AGIS within thirty (30) day from the date of this publication. Dated this 15th July, 2014 Signed by: C. Odili Achilike Esq, FCasi AC, Arb ChMc Solicitor to Ivy Pharmacy Ltd.

THE NATION MONDAY, JULY 21, 2014

T R A N S F E R S . . .

NATION SPORT Nedved insists Juve key men going nowhere

Isco plays down exit talk

EAL Madrid attacker Isco has taken to Twitter to quell suggestions that he could leave Los Blancos on a season-long loan this summer. Liverpool are the latest club to be linked with a move for the 22-yearold, who scored 11 times for Madrid last season. Sevilla and AC Milan have also been credited with an interest following suggestions that the Spaniard wanted regular football next season. However, on his official Twitter account and in response to the speculation, Isco wrote: "Obviously all lies." Isco lost his spot in the Madrid XI last season due to the form of Angel di Maria.

UVENTUS director Pavel Nedved has insisted that the Turin giants have no intention of selling Arturo Vidal and Paul Pogba. Former Juve coach Antonio Conte walked out on the Italian champions this week, with reports suggesting he was unhappy with a lack of transfer activity. Conte was also said to be concerned by talk of Vidal potentially joining Manchester United, while fellow midfielder Pogba has also been linked with a big-money move ahead of the new season. Juve legend Nedved has set the record straight, though, stating that the club plan to keep hold of their sought-after players and will only sell if they receive offers they are unable to refuse. He said: "Anyone who thinks Antonio Conte resigned due to the transfer strategy is wrong. Our plan is clear: we want to keep all our best players, including Vidal and Pogba. "We don't want to sell anyone, especially not Vidal. Of course, if a particularly high offer arrived then we'd have to think about it, but we don't want to sell our champions. "We want to be competitive in the Champions League and the only sales will be players who are not part of our plans."

•Daley Blind

•Isco

Blind to Barcelona rumours may become a reality - agent •Pavel Nedved

Report: James Rodriguez to force Real Madrid move

AMES Rodriguez will reportedly force a move to Real Madrid this summer. The Colombian has been strongly linked with a transfer from Monaco since the completion of the World Cup last month. The two clubs have not yet agreed a final price, but according to AS, Rodriguez has said that he will not play a single minute of Monaco's preseason, with a view to pushing through the move. It is understood that Madrid want to pay around £55m for the talented attacker, but Monaco are holding out for a fee in the region of £70m. The 23-year-old scored six goals for Colombia at this summer's World Cup.

•James

ESPITE Ajax boss Frank de Boer's pleas that he stick around in Amsterdam for another season, the Dutch star's representative hinted a summer move to Camp Nou is possible World Cup star Daley Blind could be on his way to Barcelona this summer, according to the Netherlands defender's agent. Blind was crucial for Ajax in 2013-14 as the club lifted the Eredivisie and subsequently starred for his national team as they reached the semi-finals in Brazil, even scoring as they defeated

hosts Brazil 3-0 in the third-place playoff. New Manchester United boss Louis van Gaal - who guided Netherlands to the last four before linking up with the Premier League club - had been reported to be keen on bringing Blind to Old Trafford, but in recent weeks Barca have emerged as a possible destination for the 24-year-old. Ajax coach Frank de Boer has publicly pleaded with the defender to stay at the Eredivisie champions for another season, but the player's representative hinted that interest in Blind might be

too great for the Dutch giants to ignore. "At the moment there is nothing concrete," Rob Jansen replied to Voetbal International when asked specifically about Barca rumours. "But the rumours of today could very well be tomorrow's reality. "There are many clubs interested in Daley. We'll have to wait and see what happens when the transfer market shakes up." Blind's contract with Ajax - whom he has been with since joining as a youngster in 1998 - runs until 2016.

Lukaku set for Chelsea stay, says Steve Holland

HELSEA assistant first-team coach Steve Holland has denied reports that striker Romelu Lukaku is on the verge of leaving the club. The Belgium forward spent last season on loan at Everton - where he scored 15 goals in 31 Premier League appearances - following a successful spell at West Brom the previous campaign. Lukaku has been linked with a return to Goodison Park, while Tottenham and Bundesliga club Wolfsburg are also said to be eager to sign the 21-year-old. Holland does not expect the former Anderlecht man to be on the move in the near future, though. "The plan is that he will join up with us at some stage during the second [pre-season] week when we are in Holland," he told reporters. When pressed as to whether Lukaku will not be allowed to leave Stamford Bridge before he is due to head to Netherlands on tour, Holland stated: "That's the situation as I understand it.” Marco van Ginkel took another step closer to a return to full fitness by playing in a 3-2 friendly win over AFC Wimbledon on Saturday and Holland has welcomed the return of the midfielder, who missed most of last season due to a

cruciate ligament injury. He said: "Marco has worked fantastically hard to come back from an awful injury and has had a long road back but he has done magnificently well, well enough to be involved in the

Dutch squad's training just before the World Cup. "He is accumulating games and he is looking stronger every game, and it is really important he gets a good preseason."

Juve would consider "high bid" for Arturo Vidal

UVENTUS director Pavel Nedved has conceded that the club would have to give consideration to a "high bid" for Arturo Vidal's services. Manchester United are thought to be keen admirers of the 27-year-old, with one report having claimed that they are prepared to pay him the same wages as those earned by Robin van Persie. His Italian employers have since insisted that the midfielder is not for sale, but when asked for his opinion on the situation, Nedved admitted that a lucrative offer for Vidal or youngster Paul Pogba would be reviewed by the club. "We don't want to sell anyone, especially Vidal. Our strategy is clear, we want to keep all our best players, including Vidal and Pogba. Certainly, if there was a high bid for them, we'd have to think about it, but we don't want to sell our champions." Vidal is currently on holiday in his native Chile.

•Vidal

•Steve Holland

THE NATION MONDAY, JULY 21, 2014

SPORT EXTRA ATHLETICS

NSC backs Platinum Jubilee Celebration of athletics in Nigeria

•Kenneth Omeruo with Middlesbrough’s Manager

Omeruo rejoins Middlesbrough S UPER Eagles’ defender Kenneth Omeruo has confirmed he is rejoining Middlesbrough this season. Omeruo, who was one of the shining lights for the

By Bowale Odukale

Super Eagles in 2014 summer's World Cup in Brazil, playing all the four matches, confirmed that he would be re-joining the club

he spent last season on loan on his Twitter account. Omeruo tweeted, "Holiday is finished. . Almost time for work again.. happy to be re joining Boro for a new season."

The 20-year-old defender made 14 appearances for Middlesbrough in the English Championship last season after joining on loan for the second half of last season.

GLO PREMIER LEAGUE 2ND ROUND

Nigerians expect stiff competition

ATIONAL Telecoms Operator and title Sponsor of Glo Premier League, Globacom, has expressed confidence in the capacity and ingenuity of clubs in the Nigerian elite football league to raise their game and satisfy the yearnings of football lovers across the country for highly entertaining games as the league’s second round commenced on Sunday. The GPL has been on a break after the first stanza ended before the start of Brazil 2014 World Cup in June. Several clubs have used the period to energize their teams and sustain their quest for the

league title. “We were impressed with the stiff competition that characterised the first round of the Glo Premier League. It is a good spell for Nigerian football,” Globacom said in a statement in Lagos on Sunday. “It has not been a stroll-inthe-park for the reigning champions, Kano Pillars. For the most part of the first stanza, Sharks of Port Harcourt led the table, while Kano Pillars only took over the lead at the end of the first round. From the way the battle has been fought so far, it is likely that the test of nerves will go down to the wire,” the

statement added. The telecommunications company, reputed to be the biggest supporter of football in Nigeria and Africa, also expressed delight at the manner the GPL clubs have beefed up their squads during the break, while commending the rancour-free transfer deals. “We expect the competition to be even stiffer this time, especially after most of the clubs have oiled their machines in readiness for the second round battle,” the statement further said. Globacom also commended the League Management Company (LMC) for what it described as profes-

sional scheduling of the outstanding matches in the first stanza and the management of the 20 clubs in the league for doing their utmost to play by the rule. “The LMC deserves our applause for ensuring that all the 19 matches were completed despite some of the clubs having a backlog of games to play due to other commitments,” the statement concluded. Kano Pillars lead the log with 34 points going into the second stanza, with Nasarawa United trailing on 31 points while the pair of Sharks FC and Abia Warriors are joined third with 30 points.

RIO 2016 OLYMPICS

Missing WTF Grand Prix a major setback, says Chukwumerije

FTER missing out from the last World Taekwondo Federation (WTF) Grand Prix in China, three-time Olympian, Chika Chukwumerije admits that this might affect the country’s chance of qualifying for the Rio 2016 Olympic Games in Brazil. Excerpts.

What does missing the WTF Grand Prix mean to you personally? Irrevocable loss of funds, time and hard work – with the first two being very limited resources. What impact will it have on the country's chances of qualifying for the Rio Olympics? Missing a G4 tournament is not funny at all, because winning it will send one up the charts by as much as 10 – 15 slots. It means we would have to invest more to win back those ranking points – that means more competitions to attend, extension of training time, increase in the mental and emotional stress that it takes to keep the focus. We cannot afford for our National Taekwondo athletes to miss the majors. Don’t miss the Africa Games, don’t miss the World Championships, don’t miss the Grand Prix, and do not miss the G-2s. If we do that

and do relatively well, we will have 2 or 3 people automatically in the Olympics. It is that straightforward. What is the implication of this on your career? After a decade of this uphill battle, one feels like giving up. Probably Thomas Edison would frown and remind me of his words that, “many of life’s failures are people who did not realise how close they were to success when they gave up”, but it does not change how frustrating it gets to work so hard and feel like one’s efforts are being emptied into a black hole. It is demoralising to compete against opponents who have committed resources – dedicated funds, dedicated training spaces, dedicated support training staff etc. We might be just as talented, but it is definitely not a level playing field. Nonetheless, I have shaken off the disappointment.

There is a whole new generation of young taekwondo athletes coming up and being inspired. We must keep showing them the way through our examples, and the first example would be “never to give up even though the going is always tough”. We will keep working towards set goals one step at a time.

What is the response of WTF to your complaints? The WTF did everything right – sent info on time, got Nigeria registered once we acknowledged on time, and provided the platform to engage the host organisers in order to participate. Thus, it was not an issue for the WTF. It was a mistake from the official representative of the China Taekwondo Association, and it won’t be fair to bring the WTF in on this. What has happened has happened; we can only learn from it and ensure it does not happen again.

•Chukwumerije

HE National Sports Commission (NSC) has thrown its weight behind the forthcoming Platinum Jubilee celebration of Athletics Federation of Nigeria (AFN). The federation was founded in 1944. Members of the Athletics Stakeholder, the committee responsible for the planning of Track and Field Platinum Jubilee Celebration recently paid a courtesy visit to the Director General of the NSC Hon. Gbenga Elegbeleye. Speaking during the visit, the Chairman of the AFN Platinum Jubilee Celebration committee, Olukayode Thomas, told Hon. Elegbeleye that in the last 70 years, track and field has achieved so much and that all the principal characters behind the success story must be honoured and celebrated,“Of the three gold medals won by Team Nigeria at the modern Olympic Games since Helsinki’52 Games, two were won by track and field athletes. Tracks and field has also recorded more success than other sports at the Commonwealth Games and the All Africa Games. “We have recorded success in all IAAF championships from World Championships to World Indoors, World Junior, World Cup, World Relays and other Championships.’’ Thomas also said that track and field has ensured that many

Nigerians were educated at home and abroad and some of them are top professionals in many sphere of human endeavor, “we have decided to honour athletes, officials, coaches,corporate organizations and other stakeholders who have made all these and many other achievements possible’’. Responding, Hon Elegbeleye commended the Athletics Stakeholders for their initiative, he assured them that the NSC is behind them and will give them all the support they need to ensure a successful celebration,“Beside all these that you plan to do, am also appealing to you to organise a competition’’ said Elegbeleye. Responding, the committee’s head of operations, Olumide Bamiduro, who is also the scribe of the AFN, thanked the DG and the NSC for their support, he assured that there will be a competition as part of the activities to mark the jubilee. The organising committee of AFN Platinum Jubilee Celebration is headed by Thomas; Bamiduro is the Director of Operations. Others members included Falilat Ogunkoya, a member of AFN board, Yussuf Alli former Captain of Team Nigeria, Henry Amike, President of Olympians and Olamide George SA to Ondo State Governor.

Referee Popoola's decision is valid—NBBF President

HE president of the Nigerian Basketball Federation, Tijjani Umar has said that umpire Tunde Popoola got the decision to cancel the final basket scored by Mark Mentors against Kano Pillars right in the final match of the DSTV Premier Basketball League Final 8. Controversy cropped up at the Indoor Sports Hall of the National Stadium in Lagos when referee Tunde Popoola canceled Mark Mentors guard, Musa Usman's basket at the end of the game on Saturday as Kano Pillars ran away 89-88 points victory.

By Akeem Lawal Umar, however, informed NationSport right after he and the chairman of Mark Mentors club, Mark Igoche came out of the OB van of TV right owners SuperSport to review the dying seconds of the epic final match. "From the replay it was clear that Musa Usman still had possession of the ball as time expired. The referee dully indicated that, and from the video footage I and the Mark Mentors chairman saw, the referee got the decision spot on", Umar noted.

2014 APAPA U-13 FOOTBALL CHAMPIONSHIP

Ijora Oloye emerges winners

THE 2014 edition of the Ayodeji Joseph U13 primary schools soccer championship ended in a grand style as Ijora Oloye Primary School emerged as winners of the annual tournament. The event held at the Apapa Astro Turf Pitch, Apapasaw the winners defeat State Primary School 4 -1 in the final match as Arakan Barracks primary school also thrashed Methodist Primary school4-0 in a 3rd place match of the 8-day event which features eight primary schools within the local government area. In the talent discovery tournament, Abba Mustapha of Ijora Oloye was awarded the Most Valuable Player of the Tournament MVP while Yakubu Jubril of Arakan Barracks won the golden boot award. Promising as it seems, the tournament has discovered wealth of footballing talents within the local government area. Sponsored by the local

By Bowale Odukale authority, the competition is aimed at promoting football at the grass roots and also develops young talents under the age of 13 within the area. Speaking with at the event, the Executive Chairman,Apapa Local Government, Ayodeji Joseph said that competitions of this magnitude will help discover talents across the federation. "If this event had not been organised, we will not witness an amazing discovery of raw talents. We don't have to fold our hands and expect change suddenly;we have to act to actualize dreams. Nigeria is endowed with talents that can bring glory to the nation on all front and that is what weare doing here in Apapa local government. We will continue to do this over time and ensure progress in grass roots sports," he concluded.

TODAY IN THE NATION

MONDAY, JULY 21, 2014 TRUTH IN DEFENCE OF FREEDOM

VOL 9 NO 2,914

COMMENT & DEB ATE EBA

HIS is the season of Wole Soyinka, Nigeria’s master artist, whose works, whether as a playwright, a novelist, a poet or an essayist, have dramatised the Nigerian harried existence. He has poeticised Nigeria either in the mocking tones of comedy or in the depressing ether of tragedy. As we celebrate his 80th birthday, we also mourn the Nigerian season of anomie, as we have morphed into a nation on the edge of a precipice. His oeuvre broods over his country. Nothing demonstrates this atrophy of hope as the harmattan dust unleashed by the President Goodluck Jonathan administration in the name of democracy. It is the hobgoblin of impeachment. Ordinarily, we can say impeachment is a legitimate weapon of politics to oust any elected officer, whether governor or president, who has breached the moral code of office and drawn the cathedral aura of the people’s mandate into the cesspit. So, to impeach legitimately is to affirm the people’s will, but also to retrieve the high ideal of the vote. It is the re-legitimation of the people’s will and the sublimity of democracy as a popular revenge. It is a reminder to the incumbent that he is flesh and blood, human like all of us, and he cannot soar into tyranny or fall into contempt at will. It is a milder form of the Roman tradition where a slave lurked behind an emperor during a triumphal parade and whispered: “Remember, you are only human.” Yet, I can say that in this inchoate republic, we have had quite a few impeachments, and I can say we have never had any, no matter the political party, that actually carried the inviolate encasement of the people’s hurrah. It has always been politics as revenge, sometimes with the hue of atavistic butchery. But never before in our history has this weapon become so savage in its intent as the gale that the Jonathan administration is flinging open from his house of storms. The Acting Governor of Adamawa State, Ahmadu Fintiri, exemplified the low moral standard with his celebration when he arrived the national headquarters of the Peoples Democratic Party (PDP) in Abuja. “I have delivered,” he crooned with selfsatisfaction. What did that mean? “As a loyal and obedient party member, I came on a courtesy call to my party and the National Working Committee as my first assignment after the battle to remove Governor Murtala Nyako, who had stolen the mandate of the PDP under which he was

RIPPLES BETTER DAYS AHEAD–Cleric

...and I BET, those BETTER DAYS won’t come in a CENTURY

SAM OMATSEYE

IN TOUCH

intouchnation@gmail.com 08054501081(sms only) Twitter: @samomatseye

Madmen and specialists

‘

Was it not the same house that gave Nyako a vote of confidence in the halcyon, backslapping days when he had committed the same offences over which he recently fell at the guillotine? By impeaching him, were they not carrying out the absurd theatre of self-impeachment, an act of legislative selfexecution? •Nyako

•Rotimi Amaechi

•Umaru Al-Makura

elected. I came here to bring back the mandate and I have handed over to them (party leaders) the mandate.” Clearly, the ouster had nothing to do with higher ideal of integrity in public office. It was just an act of partisan malice. For Governor Nyako had many sins before he defected from the PDP to the All Progressives Congress (APC), and they were legion. Yet, I cannot say all were unconstitutional sins. I found them very nauseating. How do you turn your office into a nepotistic fiefdom advertising your husbandry of wives by making them special advisers, or how do you turn fecund with about 1,000 special advisers in the name of stomach infrastructure? How do you turn your son into a political gladiator just be-

’

cause you have one, and you can flex any paternal muscle? Those were some of the things that the public detested about the man, and all of these permeated the Adamawa body politic as a PDP man. He was not impeachable then. Suddenly his sins as a PDP man were saintly until he became an APC man. He did not have body odour until he found another lover. The trial, like the trial in Soyinka’s best work, A Dance of the Forests, created optical illusion. Is Nyako being tried as the PDP sinner or as the APC defector? Who was innocent here, who was the madman? Was it the man who was tried, or the accuser? Or who was the specialist? Was it the person who claimed he had control of the judicial process and turned it upside down,

HARDBALL

HIS piece, first published on June 23, is being rerun as a salute to the Federal Government for heeding Hardball’s strident calls and setting up the N30billion ‘Victims Support Fund’. Hardball thinks it is a remarkable gesture that it is better late than never. Read on: Hardball had canvassed the issue of finding succour for the victims of Boko Haram insurgency until he was wearied out by the Federal Government’s seeming rope-a-dope tactics. You remember the legendary pugilist, Mohammed Ali, in his heyday, perfected this fighting stratagem in which he leans against the boxing ring ropes, shields his face and goads his opponent to pound the rest of his body. Because a great boxer’s body is as tough as a mass of polythene, you would badger at his body only to your peril. To drill our point home, the Federal Government may (unbeknown to it) have adopted a rope-a-dope style of governance to the effect that it is almost impossible to canvass for alternative policy options today. The Boko Haram insurgents have carried out intense war on a large chunk of

Rope-a-dope governance the North in the past five years without let. No arm of government is seriously taking records, but an estimated 5,000 Nigerians may have been killed, while about 15,000 may have been inflicted with bodily injuries. There are huge material losses too in terms of property, businesses, goods and cash. But nobody is keeping tab, which is bad enough. But worse is that government has not considered any response to these hapless collateral outcomes of our current hate and terror regime. This callous indifference may have pushed the visiting United States lawmakers to make a strident call to the Federal Government to spare a thought for these victims. Being Americans and extant lawmakers for that matter, perhaps government would be apt to listen to them and act upon their appeal faster than it would hearken to a ranting and a disgusting Nigerian columnist. But let it be done all the same and done quickly. The US congress men and women, who came

or the man who fled because he knew justice had tumbled over? In Soyinka’s Madmen and Specialists, the border is nebulous. Was it not the same house that gave Nyako a vote of confidence in the halcyon, backslapping days when he had committed the same offences over which he recently fell at the guillotine? By impeaching him, were they not carrying out the absurd theatre of self-impeachment, an act of legislative selfexecution? So, what we are seeing, however, is a play of giants. Jonathan is the giant here, but not a giant of moral grandeur. He is a parody of the giant of the television advertisement standing him with Mandela, Obama, etc. But he is a giant, who Soyinka mocked in a play of that title. So, it was clear Fintiri was not acting for the Adamawa State people, but his party leaders in Abuja, and who is the helmsman of Abuja? Unless we lie to ourselves, it is President Jonathan. Was that not why Nyako scurried there, cap in hand, to see if he could save him? He forgot that nobody ever begs Jonathan in this matter. He, a snake with sly venom, never forgives and never takes responsibility. Fat with prey, he snorts quietly in his nest. Nyako just learned that lesson after wasting his pride in a servile visit to Aso Rock. If you knew brother Chume well, in Soyinka’s Jero Plays, you won’t have a doubt. He watches from the stealth of his abode his opera of Nigeria. He does not have to have wonyosi. So, why not Nasarawa, why not Edo, or Rivers, etc? But we forget that his first target has been Rivers State, but he has consistently failed. He is still hopeful. But what is at stake is not the party victory now, but the Nigerian democracy or our survival as a nation. Jonathan does not have a conscience for consequences or an acute sense of history. That would have subdued him to sobriety. If you succeed now, does democracy succeed? Politics is a contest for power, but malice and contempt for the dignity of the constitution are dangerous. They uphold the cynical high point of technicality over substance. You don’t win a people from above, but from below. Jonathan wants to conquer rather than win the hearts of Nigeria. You don’t know when a soup is over-burned by staring at the surface bubbling appetisingly. Any such strategy is superficial. It is flirtation with death for this democracy like the King’s horseman in Soyinka’s play of that title. It’s not the road for us.

•Hardball is not the opinion of the columnist featured above mid-June, said they were in town as part of the global effort to ensure the release of the teenage school girls kidnapped in Chibok, Borno State, since April 14. Steve Stockman, who led the delegation to Nigeria, spoke its mind thus: “The best thing that could happen is if we have a fund set up for those that lost their lives and for the families that remain here on this earth.” Nigerians, including this columnist, have shouted themselves hoarse on this matter, which seems rather straightforward and commonsensical. Why has the Federal Government or any government for that matter not deemed it fit to set up a committee and a fund to begin to sort the numerous victims and grant them reprieve? What we have experienced since 2009 is that after each attack, the dead are evacuated and often poured into a mass grave, while the injured are taken to hospitals and largely abandoned to their fate. While we kowtow and bend over double to appease the terrorists, as was done for the Niger Delta militants, we must track and manage the poor victims in order to heal not only the physical, but also emotional and spiritual wounds too. It is called atonement.

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