The Nation June 25, 2012 by The Nation

Nigeria’s widest circulating newspaper

News Gunmen free 40, kill eight in Yobe prison attack P4 Sports Ike Uche: Why I’m extending my stay at Granada P24 Business CBN relaxes deadline for sale of banks’ subsidiaries P25 www.thenationonlineng.net

VOL. 7, NO. 2167 MONDAY, JUNE 25, 2012

10 airlines get N87 billion From Yomi Odunuga, Abuja

EN airlines have received N87billion cash from the government to boost their operations and ensure safety, it was learnt at the weekend. The cash is from the N300b Aviation Intervention Fund, Senior Special Assistant to the President Continued on page 4

TR UTH IN DEFENCE OF FREEDOM TRUTH

N150.00

WHO GOT WHAT Airlines Sponsoring Bank •Chanchangi Airlines Ltd Diamond Bank Plc •Chanchangi Airlines Ltd Finbank Plc •Dana Airlines Ltd Diamond Bank Plc •Dana Airlines Ltd Diamond Bank Plc •Odengene Air Shuttle Serv. LtdFinbank Plc •Arik AirLtd Intercontnental Bank Plc •Arik AirLtd Zenith Bank Plc •Aero Contractors Ltd Oceanic Bank Plc •Air Nigeria Devp. Ltd United Bank of Africa Plc •Kabo Air Ltd Unity Bank Plc

Term Loan 160,000,000.00 2,308,000,000.00 2,729,000,000.00 528,200,000.00 3,590,000,000.00 10,000,000,000.00 14,000,000,000.00 35,550,000,000.00 4,190,000,000.00

Working Capital 50,000,000.00 210,000,000.00 500,000,000.00 2,808,000,000.00 692,000,000.00 692,000,000.00 2,729,000,000.00 89,800,000.00 618,000,000.00 1,410,000,000.00 5,000,000,000.00 10,000,000,000.00 6,000,000,000.00 20,000,000,000.00 35,550,000,000.00 2,470,000,000.00 6,660,000,000.00

Total 3,018,000,000.00 3,421,000,000.00 618,000,000.00 15,000,000,000.00 20,000,000,000.00 35,550,000,000.00 6,660,000,000.00

‘

It is personal and I don’t give a damn about that. The law is clear about it and so making it public is no issue and I will not play into the hands of the people. I have nothing to hide. I declared (assets publicly) under late President Umaru Musa Yar’Adua becuase he did it, but it is not proper. I could be investigated when I leave office. You don’t need to publicly declare it and it is a matter of principle. It is not the President declaring assets that will change the country

’

Why I sacked NSA Azazi, Bello, by Jonathan President: no role in $620,000 Otedola/Lawan bribe saga No dialogue with ‘faceless group’ Boko Haram

•Gen. Azazi

RESIDENT Goodluck Jonathan said last night that he fired Defence Minister Haliru Mohammed Bello and National Security Adviser (NSA) Gen. Owoye Azazi because he needed people with fresh ideas to tackle the country’s security challenges. Speaking during the third Presidential Chat aired on national television, the President said Dr. Mohammed

By Joseph Jibueze

and Gen. Azazi were not sacked because they were not hard-working. He said they were relieved of their duties because he wanted people who could do things differently. On why it has been difficult to end the activities of the Boko Haram sect, Jonathan said: “They (Boko Haram) change their tactics every day, and their aim is to destabilise the govern-

ment. “So, we brought in people who can do things differently, not that those who were there did not work hard,” he said. Col. Sambo Dasuki (rtd) replaced Azazi at the weekend. There is no replacement yet for Dr. Bello. Dasuki is a former Aide-de-Camp (ADC) to ex-Military President Ibrahim Babangida.

The President said it would be impossible to negotiate with the sect because it is faceless but would encourage third party dialogue. “Boko Haram has no face. Government will not dialogue with a faceless group. I don’t know what they want except to destabilise the country. The target of any terrorist group is to destabilise. By attacking churches, they Continued on page 4

•CITYBEAT P12•SPORTS P24 •CEO P32 •JOBS P37 •LABOUR P40

THE NATION MONDAY, JUNE 25, 2012

NEWS SEGUN OLUSOLA (1935-2012)

‘We’ve lost a rare P

•Fashola with the late Olusola’s widow Fehintola and son Jimi...yesterday

•Dr. Christopher Kolade and Mrs. Francisca Emmanuel at the residence of the late Olusola...yesterday

ROMINENT Nigerians yesterday said the country has lost a rare gem with the death of former Nigerian Ambassador to Ethiopia, Chief Segun Olusola. Lagos State Governor Babatunde Fashola, during a visit to the deceased’s widow, Fehintola, said the late culture icon was like a father to him. Fashola said:”In consoling you, I console myself also. He was like a father to me in every sense of the word just as he was to Jimi and to all his biological children. "I and the many others who are not his biological children drank from his very unending pot of wisdom and benefitted from his generosity and his time. He had time for everybody and that was actually the hallmark of being a parent to all of us who were privileged to cross his path. "Many people will share in his loss, the Nigerian Broadcasting Institution will miss him in so many ways. "Even his exit has created some uniqueness, bringing so many of us together. Many people I have not seen for ages are walking into this place to pay tribute to this icon of the African Arts. It represents the character of the man who has just passed on. One could go on but I am sure that as we plan the rites of exit of his passage, the appropriate forum will exist for many more people to come and pay tribute." Ekiti State Governor Kayode Fayemi, in a statement, by his Chief Press Secretary, Mr. Olayinka Oyebode, said the legacies left behind by the late former culture icon would eternally keep him in the memories of Nigerians and foreigners. The governor said Olusola’s demise has robbed the nation of a consummate diplomat, peacemaker, advocate of good governance and unrelenting supporter of the cause of refugees in Africa. According to him, Olusola was one of the best broadcasters produced by Nigeria who went on to mentor other broadcasters who ruled the airwaves after he (Olusola) had left the scene. Fayemi pointed out that Olusola’s ingenuity birthed the popular tele-

By Oziegbe Okoeki and Ovwe Medeme

vision drama series, ‘’Village Headmaster’’, which he said thought Nigerians good virtues and exposed societal ills. He described Olusola’s tenure as envoy to Ethiopia and the then Organisation of African Unity (OAU) in Addis Ababa as the golden era of Nigeria’s political and economic diplomacy in Africa. The governor also hailed the deceased for using the period of his retirement from public service to champion the cause of refugees through his establishment of the African Refugees Foundation (AREF). Fayemi urged the immediate family of the deceased to take solace in the fact that he (Olusola) lived a fulfilled life and positively affected humanity in his lifetime. The Executive Secretary of National Institute for Cultural Orientation, (NICO), Dr. Barclays Ayakoroma, described the death of Olusola as shocking, saying the late producer of the rested The Village Headmaster, would always be a reference point in the history of drama in Nigeria. Ayakoroma’s entry in the condolence register in the deceased’s home reads: “As an icon in the culture sector, his contributions have been invaluable in repositioning the sector in our quest for sustainable national development. May his gentle soul rest in peace.” The Executive director, Centre for Black Arts and Culture (CBAAC), Prof. Tunde Babawale, described Olusola as a culture icon, a role model in the culture sector. He said: “He devoted his life and time and resources to the promotion and propagation of African arts and culture as well as the pursuit of human progress. We will all miss you, sir.” Movie producer Zeb Ejiro said: “He was the greatest, the best and the finest man.” Deputy Whip of the Lagos State House of Assembly, Rotimi Abiru, has described Olusola as an asset to the country. Abiru said the late Olusola was a rare gem whose absence would be felt in so many areas of the nation’s life. Abiru said: “The broadcast industry and indeed the country has lost a rare gem in the person of Segun Olusola, a diplomat, ace television producer and

Olusola for burial July 20 •NANTAPdeclares 7-day mourning By Ozolua Uhakheme and Ovwe Medeme

•Chief Tunde Oloyede (left) and Mr. Funmi Odusolu duringa Olusola...yesterday

condolence visit to the widow of the late

•Daughter of the late Olusola, Oluwatoyin Laditi and Temidayo Hogan...yesterday PHOTOS: MOSES OMOSEHIN and RAHMAN SANUSI

HE late Chief Segun Olusola will be buried on July 20 at his home town in Iperu-Remo, his son, Olujimi, said last night. He said a burial committee headed by veteran broadcaster Chief Taiwo Alimi will announce other arangements. The National Executive Council of National Association of Nigerian Theatre Arts Practitioners (NANTAP) has declared a 7-day mourning period in honour of the late Olusola. A statement signed by the association’s National President, Gregory Odutayo, said all national, state and local activities of the association are suspended for the next 7 days. The statement reads: “All NANTAP chapters across the nation are to comply with this development which takes effect from Sunday 24th June, 2012. The late Ambassador and theatre icon was until his passing on to eternal glory, the Chairman of the Association’s Board of Trustees.” It described the late Olusola as an icon of arts, and thus deserves all the honour and respect for his selfless contributions and legacies imprinted in our minds, lives, institutions, states and the world at large. The Committee for Relevant Art (CORA) commiserated with the family of the late culture icon. A statement by the committee’s Secretary-General, Mr. Toyin Akinoso, reads: “The committee understands the grief that both the family and the community of artists are going through. We share the feeling of loss and mourn the passing away of a true icon of contemporary arts of Nigeria, a man who was a diplomat in the truest sense of the word, who could spontaneously ingratiate himself into the rituals of art practice and in the next breadth fit into the community of those who walk the corridors of power. “Village Headmaster, the gift he gave Nigeria, started the country on the path of TV drama series, which evolved into television soap operas, which, both in themselves and with other efforts in filmmaking, helped to shape the Nollywood tradition. As young beneficiaries of the wisdom of this great contributor to the artistic progress and the discourses around our national well being, we should ordinarily affirm that his death is an occasion for celebrating his legacies.”

THE NATION MONDAY, JUNE 25, 2012

NEWS THE DANA AIR PLANE CRASH

gem in Olusola’ Group mourns culture icon

NON Governmental Organisation, Journalists Action on Tobacco and Health (JATH), has described as a great loss to Nigeria the death of Chief Segun Olusola. In a statement in Lagos, JATH described the late Olusola as selfless a Nigerian whose lifestyle bestowed kindness on humanity. The group said: “Ambassardor Olusola left a legacy of service to humanity in a Nigeria society where true service is very scarce. He was a gentleman with a large heart for social service. Olusola served as the first chair of the Board of JATH and provided support that enabled the organisation achieved many of its campaign goals.”

•From left: Deputy Speaker, House of Representatives, Hon. Emeka Ihedioha, Minister of Power, Barth Nnaji and Minister of Health, Onyebuchi Chukwu at a funeral mass held for late Prof. Celestine Onwuliri the husband of Minister of State, Foriegn Affairs who died in the Dana Air plane crash held at St. Jude's Catholic Church, Amuzi, Ahiazu-Mbaise in Imo State... on Saturday

•Prince Lekan Fadina signing the condolence register...yesterday

lover of arts and culture.” He urged the Federal Government and Ogun State government to give him a befitting burial and immortalise him for his numerous contributions to nation building. Prolific actor and businessman, Daniel Imoudu, has described the death of Chief Olusola as a rude shock. Imoudu said the late Olusola dedicated a major part of his life to service to mankind.

He said: “As a veteran in arts and culture, Ambassador Olusola led by example and also contributed immensely to the emergence of several personalities who are now major players in the entertainment industry.” Imoudu, who played Dagbolu in Village Headmaster, said: “Ambassador Olusola must never be forgotten in the annals of arts and culture in Nigeria, and by extension, Africa.”

HE death of the former Nigerian Ambassador to Ethiopia, Chief Segun Olusola, is a great loss to the people of Lagos Central Senatorial district, Senator Oluremi Tinubu said yesterday. In a statement, the senator said: “With the passing of Ambassador Segun Olusola, Nigeria has lost a national icon, Lagos Central Senatorial district has lost a rare gem; we have lost a man of many parts. He lived a life worthy of emulation and his death saddens us all. “He touched many lives and impacted our nation positively in many areas. He was an extraordinary pro-

My hope is not dashed, says widow

Mrs. Omobola Oloko lost her husband, Adetunji, to the Air plane crash. In a tribute, Mrs. Oloko shares their Senator Tinubu Dana experice as a couple. Excerpts:

mourns Olusola

• Senator Tinubu

•From left: Mrs. Funsho Adegbola, the niece of the late Adetunji Oloko, the widow, Mrs. Omobola Oloko and a friend of the deceased, Mr. Seyi Onajide during the funeral Service for the late Oloko who died in the ill-fated Dana Air plane crash in Lagos at the Redeemed Christian Church of God, Resurrection Parish, Lagos Province 5 Headquaters Lekki, Lagos...at the weekend PHOTO: DAVID ADEJO

moter of Nigerian, nay African culture; a charity activist, a brilliant and knowledgeable diplomat whose grasp of issues was empowering. “In Ambassador Olusola, the man who gave us the “Village Headmaster” soap opera that many of us watched with relish while growing up, Nigeria has lost a great mind and no doubt, an elder statesman. “We can look back with joy at unselfish fruitfulness of his 77 years on earth and the legacies he built; from these, we can draw inspiration and encouragement in the knowledge that it is in the service to our fellow man that we can leave the boldest imprints in the sands of time. I will never forget how I worked with him to reach out to the needy and how he guided me in the direction of where service was most needful. “The only way we can repay Ambassador Olusola in death is to make sure the ideals that he lived for never die. Nigeria must also recognise and preserve his works for generations yet unborn. “Those he left behind can take consolation in the fruitful life he led and how his commitment to social causes was focused on benefitting the neglected and underprivileged members of our society.”

DETUNJI my precious husband. Your heart sure dripped with love, honour, care, gentleness and assurance for me all through our earthly journey together. My love, who could ever believe that our journey of nearly two decades would so rudely, wickedly and painfully terminated by the cold hands of death, no thanks to the greed of the management of DANA airlines on Sunday, 3rd June, 2012. Adetunji was a Godly man. He feared God, loved Him and proved it by his works on earth. He God honoured him because he drove straight from the thanksgiving service in his parish, RCCG, Christ the Rock, Abuja to the airport to board the ill-fated flight. My husband was a public servant in private service. He was instrument of comfort. He lived for everyone around him, family, friend, colleagues and acquaintances. He impacted everyone that came his way. He gave himself for many so that they might discover themselves. My crown was a handsome man inside and outside. His kindness and selflessness would make the efforts of others pale into insignificance when you discover how sacrificial those actions and commitments

‘

We shared our pains together. We laughed together, we believed together. We stood together. We prevailed together. Would l miss you, Adetunji? That is not befitting, you know what, l will forever cherish the privilege that l had to leverage on a humble, kind, generous and noble make like you. You live on in heart.

‘

were. A faithful, loving and dotting husband. A dutiful son, dependable brother, uncles and cousin. A friendly neighbor, a dedicated staff member and friendly colleague. A man of few words, yet, always deep in thoughts. He was easy to crack jokes and bring smiles to all

faces. He was highly intelligent, smart and very reflective. He was good with his mind and hands. My husband considered others before himself. Adetunji Akintola, Oloko was an angle. A home maker. An encourager. A committed husband. I was his’mum’ ‘lovely angel’ and ‘pretty baby’ while he was my ‘dad’ and ‘joy’ and, together, we meant the world, one to the other. My husband nurtured, guided and encouraged me all round. He enhanced my life in innumerable ways. We shared our pains together. We laughed together, we believed together. We stood together. We prevailed together. Would l miss you, Adetunji? That is not befitting, you know what, l will forever cherish the privilege that l had to leverage on a humble, kind, generous and noble make like you. You live on in heart. You always told me that you were proud of me, now, Adetunji, it is my turn to let you know that l am and will always be proud of you. Even, in death, you did not let me down. My hope is not dashed. I prayed all through Monday night for a miracle, that you would live; God answered me because you live still, and you have taken your place among the triumphant saints.

THE NATION MONDAY, JUNE 25, 2012

NEWS Gunmen free 40, kill eight in Yobe prison attack

•Speaker, ECOWAS Parliament, Ike Ekweremadu (second right) , Chairperson, House of Representatives Committee on the Diaspora, Mrs Abike Dabiri-Erewa, ECOWAS Secretary General, Mohammed Diakite (right), and member of the committee, Mustapha Khabeeb during a meeting in Abuja on the plight of Nigerians living in Ghana...at the weekend PHOTO ABAYOMI FAYESE

AMATURU, the Yobe State capital, was yesterday the scene of yet another gun battle. Unknown gunmen, who are suspected to be members’ of the Islamist sect Boko Haram, attacked a satellite prison in the town, freeing 40 inmates. Yobe State Commissioner of Police Patrick Egbuniwe confirmed the jail break. He said: “Yes; there was a jail break in the early hours of this morning which was assisted by some armed gunmen suspected to be members of Boko Harama sect. “The gunmen freed 40 prisoners, killed one prisoner and one prison warder was injured. “Our men arrived at the scene and fought to retrieve

Why I sacked NSA Azazi, Bello, by Jonathan Continued from page 1

try to instigate Christians against Moslems. “Soon, if they don’t succeed with that, they may attack mosques so that Moslems will attack Christians. But we are working very hard and we will stop it.” He said if members of the group state its grievance, he would encourage those who have been in touch with them to go ahead and pacify them and make them see why they must stop the killings. “The Boko Haram members are Nigerians and I will rather not want to lose the life of any Nigerian. Boko Haram has no face. Government will not dialogue with a faceless organisation. “Security is a global challenge; just like the economic meltdown. Government is on it. Boko Haram changes their tactics every day, we are also changing and we will continue to adjust.” “We will encourage those with access to them to dialogue with them. Even (Islamic leader, Dr) Datti Ahmed has access to them, we will encourage him,” he said. The President also defended his decision to attend the Earth Summit in Brazil soon after the last round of bombings in Kaduna and Yobe states.

10 airlines get N87 billion Continued from page 1

on Aviation, Captain Shehu Iyal said. The government made the cash available following complaints by airlines, including Aero, Virgin Nigeria and Chachangi, the global economic recession was having adverse effects on their operations as they were being bogged down by debts. Besides, there were high interest rates, low working capital, absence of medium/long term funding, high custom duties, VAT and other taxes. Iyal, in a paper submitted to the Senate and House of Representatives’ joint sitting on the June 3 Dana Air crash, noted that some of the major airlines made the request for assistance during the tenure of the late President Umaru Yar’Adua.

“I have no regrets going to Brazil,” Jonathan said. “I sympathise with the people who lost loved ones. I feel the pain. When I hear that one person dies, I feel so sad. “But the government in Nigeria must not stop for a second because of terrorists. Boko Haram and their sponsors will not stop government from functioning. The Vice-President, the Senate President, the Speaker, all must keep faith with their engagements. The country must move on.” “I have no regrets going to Brazil. I feel the pain when I hear that some people died. Those who were worried got worried out of ignorance. Part of their plans is to muzzle government. The government of Nigeria must not stop for a moment; government must function. It would have communicated something too negative and the consequences would have been bad for the image of the country. It would have meant that the country was unsafe. “I could have sent the Vice President or any other person, but the day the international community gets to know that even the President could not travel, then we would be in serious trouble. All arms of government will keep faith with their national and international engagements. We sympathise with the level of damage,

but we must bring it to an end.” Jonathan said the fight against corruption has not been lost. Asked about the allegation that anti-graft agencies wait for the President’s “body language” before bringing corruption charges against suspects, Jonathan said it was not true. “I give them the latitude to do their work. If a person is doing a job and is waiting for the President’s body language, then he is not committed,” he said. The President said he picked the Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Lamorde, even though he investigated him when he was governor of Bayelsa State because Nigerians have confidence in him. “Nigerians have confidence in Larmode and I also believe in him. I have confidence in Lamorde.” The President also, for the first time, spoke on the on the sacking of former EFCC boss Mrs Farida Waziri. He said she was sacked due to loss of confidence as there were many allegations against her. He, however, said sacking her was not an indication that all the allegations against her were true. He said it was better for the head of an anti-corruption agency not to be taint-

ed or seen to be tainted The President said because Nigeria practices English law, sometimes it is not easy to obtain the 90 per cent proof to secure a criminal conviction. “The burden on these agencies is enormous. It takes time to build a case file,” the President said. Jonathan, who also pleaded that the anti-graft agencies be given time to work, denied being part of the alleged sting operation to nail Hon. Farouk Lawan. He also noted that before the House probe, the Federal Government had earlier set up a panel to look into the subsidy issue, adding that “if we have something to hide, we would not have brought in Nuhu Ribadu who contested against me in the last presidential electuion”. He also said that before now, he had asked for an international audit firm to audit NNPC. Citing the reported case of money transfer in the United States concerning the Nigerian Embassy, the President said he has asked the EFCC to investigate the report. “If I get report even in a newspaper, I give directive to necessary security agencies to investigate. Regarding the oil subsidy probe by the House of Representatives over which the

Presidency is accused of orchestrating a sting operation that led to the suspension of chairman of the probe panel Farouk Lawan for collecting $620,000 from oil baron Femi Otedola, Jonathan said he had nothing to do with it. “I have nothing to hide,” the President said. He said he would not have appointed former opposition Action Congress of Nigeria (ACN) Presidential candidate Nuhu Ribadu head of petroleum revenue task force if he was not sincere about ridding the petroleum sector of corruption. “If I want to do a sting operation, why would I use Femi (Otedola)? The fact is that criticising Jonathan is a big business in Nigeria,” Jonathan said. On why he has not declared his assets, the President said: “It is personal and I don’t give a damn about that. The law is clear about it and so making it public is no issue and I will not play into the hands of the people. I have nothing to hide. I declared under the late President Umaru Musa Yar’Adua becuase he did it, but it is not proper. I could be investigated when I leave office. You don’t need to publicly declare your assets and it is a matter of principle. It is not the President declaring assets that will change the country. We should go after issues that will develop the country.

From Duku Joel, Damaturu

some prisoners and arrest the attackers but, at the moment, no prisoner is retrieved nor any arrest made. “Some of the gunmen were killed but their members carted away with them their bodies.” CP Egbuniwe disclosed that a combined team of policemen and soldiers are after the attackers whom he said are being traced to Bundigari and Pawari wards of Damaturu. Some security sources, however, said that seven prisoners and one warder were killed. Egbuniwe insisted that only one prisoner was killed. He said: “Except those seven prisoners were killed somewhere else outside the prison yard. We only saw one prisoner that was killed and we picked up his body and deposited it at the mortuary. This is what I know and I am telling you.” The CP also confirmed that “some miscreants attempted to burn down a private school at Pawari area, but men of the Fire Service responded quickly by putting out the fire to avert colossal damage”. The prison attack is the second, coming after the March 28 incident at Damagum satellite prison in Fune Local Government where 14 inmates were freed. There was trouble inDamaturu last week when Boko Haram fighters invaded the town, burning schools, shooting and setting off explosives. Residents were kept indoors for hours.

Explosion in Bauchi

N explosion was last night reported in the Bayan Darin area of Bauchi. Eyewitnesses reported hearing gunfire at about 10pm, a few minutes after President Goodluck Jonathan’s media chat. But this couod not be confirmed by security agencies before press time.

WHO GOT WHAT Airlines •Caverton Helicopters Ltd •Caverton Helicopters Ltd •Overland Airways Ltd •First Nation Airways Ltd Apart from the issues raised by the airlines’ operators at the joint sitting, stakeholders have expressed doubts about a possible diversion of the funds to other means by the beneficiaries. He also said the country stands to benefit immensely from the Memorandum of Understanding signed with Lufthansa after work on the ongoing review of the MoU might have been concluded. Iyal said the former President directed his office to organise a stakeholders’ forum and take a holistic view of the sector to “find out how best the government could assist

Sponsoring Bank Zenith Bank Plc Zenith Bank Plc Access Bank Plc Skye Bank Plc SUB-TOTAL the airlines”. After the forum, he said the late President Yar’Adua approved most of the recommendations and directed the Ministry of Finance and the Central Bank of Nigeria (CBN) to give the airlines with funds at generous rates. Following Yar’Adua’s demise after a protracted illness, his successor, President Goodluck Jonathan, ensured that funds were disbursed to the airlines through the Bank of Industry and the airlines’ sponsoring banks, Iyal said. A breakdown of the airlineby-airline chart, which was attached to Iyal’s submission

Term Loan 825,500,000.00 805,000,000.00 271,700,000.00 74,957,400,000.00

Working Capital 825,500,000.00 523,000,00.00 523,000,000.00 805,000,000.00 271,700,000.00 11,734,800,000.00 86,692,200,000.00

and obtained by our correspondent at the weekend, indicated that the Air Nigeria Developmental Limited got the highest share of N35.5b as term loan. Aero Contractors followed with N14b as term loan and another N6b as working capital. Air Nigeria did not collect a working capital. The funds were distributed through various banks, according to Iyal, who said: “The funds were disbursed at a generous rate of between two per cent to seven per cent as against the 18 per cent to 20 per cent that was the going market rate. There was

also a moratorium of six months with extended repayment term of between 10 to 15 years.” On the working capital, Iyal noted: “Some of the airlines were granted the a working capital of between N500m and N1bn, which represents 20 per cent of the previous year’s turnover of each airline.” Arguing that it was wrong to accuse the Federal Government of failing to assist the operators to ensure safety, Iyal said the government has continued to upgrade facilities at the airports, adding: “It is quite possible that other ex-

Total 1,348,500,000.00 805,000,000.00 271,700,000.00 86,692,200,000.00

traneous factors outside funding could be at the heart of the crisis in the sector as funding is just one aspect out of several other factors as far as safety in the aviation sector is concerned.” He identified the problems of airline operations as, among others, lack of cooperation from the agencies and supervising ministry; lack of transparency and accountability in funds management; dilapidated infrastructure and equipment; poor and inadequate facilities; and weak/compromising supervision by the supervising ministry.

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

THE NATION MONDAY, JUNE 25, 2012

NEWS Lawyer drops anti-Salami suit From Kamarudeen Ogundele, Abuja

•OPERA TION ST OP BREAST CANCER: President, Breast Cancer Association of Nigeria (BRECAN), Mrs. Betty Anyanwu-Akeredolu (fourth •OPERATION STOP right), Joy Akeredolu (left), Comfort Akintobi (second left), Ruth Aito (third left), Uzoma Ariosa (fourth left) and Nonye Okafor (third right), Dr. Teni Akeredolu (second right)and Lilian Adesokan (right) at an exhibition tagged Creativit held at the Oriental Hotel, Lagos...on Saturday.

Inept leadership has compromised Nigeria’s sovereignty, says ACN T HE Action Congress of Nigeria (ACN) has blamed the Federal Government for the designation of three leaders of Boko Haram as Specially Designated Global Terrorists. In a statement issued in Ilesa, Osun State, yesterday by its National Publicity Secretary, Alhaji Lai Mohammed, the party said the Jonathan presidency has virtually surrendered the nation’s sovereignty to the US, if the letter from the Nigerian Embassy in Washington begging the Americans not to kill innocent Nigerians, as reported by the media, is anything to go by. The party said: “In what must rank as the most shameful acceptance that it is indeed helpless and hopeless, the Nigerian government, through the nation’s Embassy in Washington, has agreed that in line with the

By Nneka Nwaneri declaration, the US government is free to attack the designated Boko Haram leaders even on its (Nigerian) soil. ‘’To rub salt into Nigeria’s wounds, the government went ahead to beg the US not kill innocent Nigerians in the process of such attacks against the Boko Haram leaders, as contained in the Embassy’s letter that reads inter alia: ‘The Embassy however wishes to appeal that whatever action is eventually taken against these individuals, their immediate neighbours who have felt most the impact, but are very much vehemently opposed to the activities

of Boko Haram, should not be affected.” The party added: “Because of its own incompetence, a government whose rason d’etre is the security and welfare of its citizens has now exposed the same citizens to what Americans call double whammy: attacks from Boko Haram and US drones. Because of its cluelessness, a government holding the nation’s sovereignty on behalf of the people has surrendered it to a foreign government. Because it fails to act when it should to end the Boko Haram crisis, the Jonathan presidency has railroaded Nigeria into the unenviable class of lawless and failed states like Somalia and

Afghanistan. This is a sad day indeed for the most populous black nation on earth.” The party called on the National Assembly to restore Nigeria’s sovereignty. It said as a starting point, the National Assembly should hold a public hearing to allow Nigerians to make their own contribution – and suggestions for a way forward - into what is clearly an unprecedented act in Nigeria’s history. “We appeal to the National Assembly to see and handle this as a non-partisan issue, an issue that touches the very core of Nigeria’s existence. It should also be taken as an opportunity for the legislature to take the initiative of ending the Boko Haram crisis from the failed executive. Time is running out!” ACN warned.

Why Nigeria must decentralise, by Fashola

AGOS State Governor Babatunde Fashola (SAN) has said decentralisation of power would help develop the country. The governor spoke on Friday while presenting the state government’s Position Paper on the proposed amendment to the 1999 Constitution by the National Assembly. Fashola, who spoke at the Lateef Jakande Auditorium of the Lagos State House of Assembly, Alausa, said without decentralisation of powers and functions it would be impossible to have a true and fiscal federal republic. He said: “Does the central government have the human, institutional and governmental capacity to provide basic needs such as primary education, water supply, sanitation and primary health care in a reliable manner in all the 774 Local Governments?

“As a corollary, we might also ask whether the Federal Government is able to maintain all the 9001 roads in Lagos State and make them pothole free all year round and whether it is able to do the same thing in the remaining 35 states.” He said there was an urgent need to move away from the current unitary order. The governor said: “This is the reason why the shackle of unitarism evident in policies like a quota system, central agriculture, central electricity, central VAT, central driving license, central judiciary, central Police, central railways and so many like them must be immediately removed, to enable the people of Nigeria take control of their own destiny through their States.” The Governor stated that the position paper is an aggregation of the harmonisation of the 2005 and

2009 Lagos reports and relevant parts of the various communiqués issued during the various State Executive/ Legislative parleys. He informed that his presentation covers the areas of devolution of powers, creation of states, geopolitical zones, traditional rulers, local government, land use Act, NYSC Act and Code of Conduct, fiscal federalism, Immunity clause, Mayoral status for Abuja and Nigerian Police as stipulated by the National Assembly. On the issue of fiscal federalism, the governor stated that revenue allocation is central to the existence and functioning of both the Federal Government and the federating units and proposed a new formula that gives the Federal Government 35percent, State Governments 42percent and Local Government Councils 23 percent. He added that in the case where

Local Government Councils are eventually expunged from the Constitution and the states having to fund the councils, a further amendment would be sought to give the Federal Government 25percent, State Governments 45percent, Derivation 25percent and Intervention/Support Fund makes up 5percent. The governor called for a reexamination of the concept of derivation in order to ensure equity and fairness. He said: “In addition, we take the view that derivation should not be limited to petroleum alone. It should be applicable to all resources and all revenues collected into the federal purse. Further, the right of all communities in the management and exploration of resources within their territories should be guaranteed by the Constitution.”

Otedola goofed on bribery allegation, says Olanipekun

SENIOR Advocate of Nigeria(SAN), Chief Wole Olanipekun , has faulted Zenon Oil’s boss Mr. Femi Otedola over the alleged $620,000 bribe he gave to a member of the House of Representatives, Farouk Lawan. Olanipekun said the manner of the allegation by Otedola made it seem unreal to “every discernible mind because the claim and position he canvassed in his narration of how the $620,000 was offered to Lawan was not in tandem with the process of entrapping.” He spoke in Ikere-Ekiti at the

From Sulaiman Salawudeen, AdoEkiti weekend at a luncheon he organised for members of the Ekiti State branch of the Nigerian Bar Association (NBA) to mark the inauguration of the Ikere chapter of the association. Olanipekun said Otedola’s claim “failed to appeal to commonsense by exposing the fraud whole 40 days after he had allegedly offered the bribe to Lawan to kill the House oil subsidy probe”. He added: “The matter was made easy for Otedola to handle because

he claimed that Lawan came to his house in Abuja to collect the bribe. If actually he put the security in the know of how he was being allegedly pressured to offer bribe against his conscience, Lawan should have been arrested at that point. “In security circles and anywhere in the world, the victim is arrested on the spot when entrapping is being applied. But this was not the case in this issue and that was where I thought all these allegations against Lawan are senseless, for now.

“Marked money is usually done by applying powder on the money and this cannot last more than 24 hours. So, this issue is beyond my comprehension for now.” Olanipekun said since Lawan was not arrested at the point where the bribe was offered, the relevance of “entrapping” was lost as it means in security and legal terms “immediate arrest or on the spot capturing of a person involving in corrupt practices,l. Olanipekun urged Nigerians to be cautious about the matter until investigations are concluded.

LAWYER, Wilfred Okoli, has applied to the Federal High Court, Abuja, to discontinue the suit seeking to stop President Goodluck Jonathan from reinstating the suspended President of the Court of Appeal, Justice Isa Ayo Salami. In the notice of discountinuance filed on Friday and signed by him, Okoli stated two grounds for seeking to “discomtinue the suit against all the Defendants”. The Defendants are the National Judicial Council (NJC), Salami, the Attorney General of the Federation and Jonathan. Okoli said: “I neither gave consent, nor authorised that the suit be instituted in the first instance. I did not brief anybody whatsoever to commence the suit on my behalf”. “I do not have any cause of action against any of the Defendants.” Last Tuesday , Okoli, Justice Abdul Kafarati that he was not aware of the suit filed in his name by Mr. Amobi Nzelu. Okoli is a lawyer working in the chambers of Nzelu. Nzelu, in the suit filed on behalf of Okoli, asked the court to stop Jonathan from acting on the recommendation. But Okoli told the court that he was not aware of the suit. Amazed by the development, Justice Kafarati asked the purported Plaintiff and his principal to go and sort out their differences. The court also asked Amobi to serve Justice Salami before the next sitting of September 25.

Group worried over plight of widows From Bukola Amusan, Abuja

A NON-Governmental Organisation, Helpline Foundation, has urged state and Federal Governments to improve the lot of widows. Speaking at a conference ato mark the 2012 International Widow’s Day, the president of the foundation, Mrs. Jumai Ahmadu, said prowidow policies should be pursued. She said: “Most widows are living below poverty line, suffer gender discrimination and neglect by government, civil society organisations and the communities they live in. “It is a situation still begging for comprehensive interventions at all levels. We all know that death is inevitable, but we can reduce the suffering that widows endure by raising their status and helping them in their hour of need. “This will contribute to promoting the full and equal participation of all women in society. And that will bring us closer to ending poverty and promoting peace around the world.”

FRSC is special brand, says Chidoka THE Corp Marshal and Chief executive of the Federal Road Safety Corps (FRSC), Mr Osita Chidoka, has said teh commission “is a brand that must be protected”. Chidoka spoke in Benin , Edo State. The FRSC boss, who was represented by the Deputy Corp Marshal in charge of Motor Vehicle Administration, Danjuma Garba , said: “Extortion of motorists by officers on patrol or bribe in any form any officer to the detriment of the image of this organisation will not be tolerated. “I want you to know that bribe money is blood money and that the FRSC has become a brand name that any erring officer will be dealt with in accordance with the existing law.’’ He urged the officers to remain dedicated to their work.

THE NATION MONDAY, JUNE 25, 2012

NEWS N273b pension cash splits Senate, Reps From Gbenga Omokhunu, Abuja

HE alleged discovery of N273.9billion idle cash in seven major pension offices has widened the gulf between the upper and lower chambers of the National Assembly over the fate of the Chairman of the Pension Task Team, Abulrasheed Maina. After its discovery last Wednesday, the Senate Committee on the Investigation of Pension Administration recommended Maina for arrest and prosecution. Besides, the Committee said other members of the team found culpable in the mismanagement of the pension funds should be tried. But the House of Representatives has defended Maina and sought security protection for him. In a letter to President Goodluck Jonathan, through the Head of Service of the Federation, Alhaji Isa Bello Sali, the lower chamber said the team should be strengthened in its effort to recover more stolen fund. The letter dated June 22 and signed by Chairman, House Committee on Pension, Hon. Ibrahim Bawa Kamba titled: “Re: need to design a humane pension policy (HR.14/2012) stated: • Direct the Presidential Task Team on Pension Reform to both overhaul / reform all MDAs and PARASTATALS pension administration”, as well as • Liaise with the Central Bank of Nigeria (CBN) to “search, expose and recover” all MDAs and PARASTATALS’ pension fund accounts that might be trapped, hidden, forgotten and / or lying dormant in all commercial banks in Nigeria.

Reps to remove service-wide vote in budget From Dele Anofi, Abuja

HE House of Representatives is set to remove the Service-wide vote in the budget documents of Federal Government Ministries, Agencies and Departments (MDAs). The vote is described as corruption-ridden by the House, it was learnt at the weekend. Service-wide vote, as an item in the MDAs budget proposal has no project attached to it but always appropriated for. The Chairman of the House Committee on Public Accounts, Solomon Adeola spoke with reporters at the weekend. It was at the end of a query session of some government agencies. According to him, the government, through the MDAs has not justified the existence and usage of the vote, saying: “There should be nothing like Service-wide vote. Our position is premised on the fact that it is an avenue for the government to spend money that was not duly appropriated for”. He said though the House passed a budget that gave room for the existence of the Service-wide vote, the purpose it tends to achieve has been defeated.

Pressure on Gusau to accept Defence job •Security problem beyond sack of Azazi, Bello, says Umar

HERE is pressure on former National Security Adviser (NSA), Gen. Aliyu Gusau to return to President Goodluck Jonathan’s cabinet, it emerged at the weekend. Also, it was learnt that the choice of Col. Sambo Dasuki, as the new security chief was informed by the need to woo Northern leaders to assist the government to curtail Boko Haram insurgency. Some Northern leaders have been persuading Gusau to see the appointment as a call to service and restore peace to the North. Gusau was said to have held series of meetings with some highly-placed persons trying to prevail on him to accept Defence Minister’s job. A source said: “Most Northern leaders have been mounting pressure on Gusau to accept the offer if he is eventually given. The consensus of these leaders is that Gusau can be a rallying point for addressing the insecurity in the region. “I can tell you that consultations are ongoing to see that Gusau secures the office. No one is happy that the North has lost its peace. “Another advantage of picking Gusau is the likelihood of earning the confidence and support of the political class to restore peace to the North.” Meanwhile, there were indications yesterday that Gusau might take up the appointment if the President finally concedes the post to him. Another source said: “I

Northern governors hail removal of Azazi, Bello

ORTHERN governors at the weekend described the removal of Defence Minister Haliru Bello and National Security Adviser (NSA), Lt Gen Owoye Azazi as timely. They said the move had shown that the president is concerned with the security challenges facing the country. The Chairman of the Forum, Dr. Mu’azu Babangida Aliyu spoke in Lapai, Niger State at the yearly Nupe Day festival and lecture series. According to him, the step would address

Jide Orintunsin, Minna

the security situation. Aliyu called on governments at all levels to take same proactive measure in tackling the ugly trend. He said the change will bring relief to Nigerians. The NSGF Chairman who is also the Niger State Governor urged Nigerians to support the president in this direction, stressing that everyone is part of the security and must therefore do everything to secure their environment, their town and their people.

From Yusuf Alli, Abuja and Leke Salaudeen

think he is likely going to accept the job in the larger interest of the country. “If Gusau had assisted many terror- ravaged countries to survive, why will he not make his service available to his country. “Even, some foreign countries have implicit confidence in Gusau that he can tackle the Boko Haram insurgency.” On the choice of Col. Halilu Akilu(rtd) as another candidate for the Defence slot, the source added: “The challenge with Akilu is that he has been out of government for a long time. “ He is good at military intelligence but a lot has happened, especially new technology on fighting terrorism and crimes, between the time he retired and now. “He is also apolitical. Yet the job requires a combination of military intelligence and political weight in the North.” On Col. Dasuki (rtd), the source said: “Apart from his

royal background, he is well-respected by the military elite( whether serving or retired) in the North. “With his wealth of experience, he can build bridges which will attract key Northern leaders to have faith in the new peace initiative for the North by the President.” Also yesterday, former Military Governor of Kaduna State, Col Abubakar Umar (retd) said the security situation in the land goes beyond the sack of the National Security Adviser and the Minister of Defence. Umar, who spoke with our correspondent claimed that if Gen Azazi failed as National Security Adviser, there is no guarantee that his successor will succeed. His words: “I don’t think Azazi failed. He cannot fail given his tremendous experience and rich military background. Nigeria must look elsewhere rather than hold Azazi responsible”. He said the fight against Boko Haram insurgency

cannot be accomplished overnight; it takes time, long term planning and strategy to succeed. “Though Mr President is looking for quick result, I don’t think change of leadership in the security operative is the solution”, Umar said. He said that if the United States (US), with its sophisticated security operatives and robust intelligence network is still grappling with the problems of insurgence in Iraq and Afghanistan, then Nigeria should realise that the problem of insecurity in the country cannot be blamed on individuals. Rather, he said insecurity cannot be isolated from the social ills such as corruption in high places, graduate unemployment, decline in economy and social injustice that have retarded the progress of the country and that have impacted negatively on the well-being of the citizens. Unless we address the social injustice, the yawning gap between the ruling class and the governed, the

•Gen Gusau

fight against insecurity would be a futile attempt, Umar said, urging the Federal Government to introduce welfare scheme for the unemployed. The Secretary- General of the National Supreme Council of Islamic Affairs (NSCIA), Dr Lateef Adegbite said social security scheme for the unemployed would enhance peace in the country. Adegbite urged the government to identify the moderate among the Boko Haram sect and dialogue with them and as well provide them with incentives. He added that the dreaded among them should be tracked down and be made to face the wrath of the law. He praised the US for putting the Boko Haram’s leaders on the terrorist list. He said the US decision would save Nigerians travelling abroad from embarrassment at every point of entry.

ABU worried over evacuation of Rivers, Jigawa students HE Ahmadu Bello University (ABU), Zaria, yesterday said about 80 of its Rivers and Jigawa states students have been unofficially evacuated. The Vice-Chancellor, Prof. Abdullahi Mustapha said the students were “whisked away” in a suspicious manner on Friday and Saturday. A statement by the media consultant to the Vice-Chancellor, Mallam Waziri Gwantu, said four buses belonging to the Jigawa State Government with armed mobile police escort allegedly forced their way into the Kongo campus of the university where the state’s students numbering 50 were taken away. He said the Rivers State Government on Saturday allegedly also evacuated students from their state in a 40 seater bus, escorted by armed mobile police men. “Neither of the governors of these states consulted their colleague, the Kaduna State governor, who is the Chief Security Officer of the state or the authorities of the University before evacuating the students,” the Vice-Chancellor said. The statement added: “The way and manner the students were evacuated actually created anxiety, panic and confusion not only among other students but among entire members of the University communities. “This is because the action

By Joseph Jibueze and Tony Akowe, Kaduna

gave room for mischief makers to start insinuating or spreading the rumours that the University had been shut down, an unfortunate situation that prompted some students to start fleeing the University.” The Vice-Chancellor urged the Federal Government to, as a matter of urgency and national security, investigate the motives behind the states’ action and to direct them to return the students immediately as the university is on full session. “Ahmadu Bello University is open, stable and peaceful and all our serious students are around reading and recreating pending relaxation or suspension of the 24-hour curfew by the Kaduna state government, when lectures and other academic activities will resume fully. “We only had to suspend lectures for a few days to secure the safety of our students living off campus,” The Muspha said. According to him, what the governors, as parents and leaders of the nation, ought to have done, if indeed they got wind of any security threat in the University, was to alert the Kaduna State Governor who would have informed the university authorities to take appropriate measures to ensure every-

one’s security, instead of evacuating only their children and wards. “What is more disturbing to us now is our lack of knowledge of the identities of the government officials that were sent to illegally evacuate the students and the identities of the students themselves. “The mobile police men attached to the vehicles refused to allow the university security men to take list of the students for our documentation and record purposes,” the university said. Meanwhile, the Vice-Chancellor has assured parents of the security of their children and wards, especially those living on the main campuses. For those living outside the campuses, he said the University’s security operatives have been detailed to move round the two University towns to ensure their security. Muspha denied a recent report that there was a bomb scare in the Kongo campus of the University. He described it as false and sensational “The report was baseless and was cooked-up by mischief makers who used their traditional ally in that very national daily to raise such false alarm to scare students, members of the university community and to misinform parents and the general public about a non-existent incident,” the Vice-Chancellor said. There were indications yesterday that more security operatives were rafted to Kaduna

to help in the restoration of peace in the state amidst rumoured security threats. Our correspondent saw about five luxury buses belonging to the Nigerian Army heading for Kaduna from Abuja at about 10.30am yesterday apparently to beef up the number of soldiers currently in the state. Sources in the University told The Nation that some states have sent buses to convey their children from the school, but the school authority have insisted that the school was safe. A senior lecturer said: “Some students have told me that they have seen some buses belonging to state governments coming to carry students from the campus. But I have not seen any of the buses myself.” Another source said: “Yes. Some states have come to pick their children from the school. But I can confirm to you that there is no problem on campus. There is even no problem in Zaria. What is happening in Kaduna has not affected us in Zaria.” A university spokesman, Bitrus Galmaka, told our correspondent on phone: “We have seen some buses coming to pick students. The Dean of Student Affairs was even on air to clear that issue. All our campuses have been peaceful as the school authority has taken adequate security measure. “If people are coming to evacuate their children, it will definitely affect the academic

calendar.” Special Adviser to Governor Yakowa on Religious Affairs, Rev. Joseph Hayab said states involved in such exercise are not helping the peace process in the state. His words: “Apart from the explosion in two churches in Zaria, no single incident has been reported there. The security agents and other stakeholders have worked together to ensure that there is peace. “We are also aware that the university has done enough to ensure that the students are safe. So, why would they want to evacuate the students? Even in the process of taking them away from the school, anything can happen. “I think that the action is uncalled for even though it is a reaction to the security threats in the state. But these threats are not limited to Kaduna alone. Instead of evacuating students, we should all join hands to ensure that there is peace. We also have students in those states.” A source in Jigawa confirmed the development. He said Governor Sule Lamido, who is out of the country, received a distress call from the students, following which he directed that they be evacuated. The source said the Commissioner for Education, Prof Haruna Wakili, would formerly address the press today on why the students were withdrawn.

THE NATION MONDAY, JUNE 25, 2012

NEWS Five killed in Lagos clash •Police declare gang leader wanted By Jude Isiguzo and Precius Igbonwelundu

IVE persons were killed in Bariga, Lagos, yesterday when factions of street urchins clashed over the control of a canoe park. But the police said only two people died. It was learnt that the factions were those of the Baale of Ilaje, Mr Kayode Aiyetiwa, and the son of the former Baale, Mr Segun Opere, popularly called Shaggy. The men in Aiyetiwa’s faction are called “Downtown Boys” and those of Opere “Shaggy Boys”. Sources said over 15 persons might have been killed in the clash, which lasted for over three hours. The hoodlums were said to have stormed the canoe park on Thursday to overthrow the toll collectors. Their action was resisted, leading to a free–for-all. It was learnt that the fracas continued on Friday, when two persons were reportedly killed. The fight continued on Saturday till Sunday morning, resulting in the death of three others. Residents said the fight started three days ago and that five persons have been killed. A resident, Segun Alao, told The Nation that the hoodlums have been terrorising the area for nearly a week, adding that policemen in the area know them but have failed to arrest them. Alao said: “Since Friday, about five people have been killed. We have not rested and have been living in fear. The most annoying thing is that policemen know these boys but have refused to arrest them. Whenever they come around, the policemen would go. We no longer understand what is going on.” Commercial and vehicular activities have been halted as the residents scampered for safety to avoid being hit by stray bullets from the guns of the warring hoodlums. The police later intervened. Sources said the clash, which started around 8am, disturbed worshippers during church service. Police spokeswoman, Ngozi Braide, confirmed the incident. She said only two persons were killed while two others were injured and are currently receiving treatment in a hospital. Braide said the clash followed a disagreement on which faction would collect the revenue from that particular canon park. She said no suspect has been arrested and that policemen were still keeping the peace. The Police Command has declared wanted one of the members of the factions, simply identified as Ibrahim, popularly called “Small Jaypron”. The police alleged that Ibrahim, with other members of the “Downtown Boys”, was responsible for a robbery operation in Ilaja, Bariga, in which three hoodlums were killed last Thursday. Some of the gang members, who reportedly escaped, have threatened to carry out reprisals on policemen attached to the Bariga Police Division. The Nation learnt that the slain robbers, identified as Austin, Idi and Tunde, were members of “Downtown Boys”. The police alleged that the gang was responsible for series of crimes in Somolu, Lagos. The police said the hoodlums, who were killed on Ilaje Street, Bariga, were led by “Small Jaypron”. A senior police officer at the Bariga Division, who spoke in confidence, alleged that Austin was earlier arrested by the Special Anti-Robbery Squad (SARS) and charged to court. But he was said to have been granted bail. The policeman said: “On June 6, he (Austin) and others at large stabbed Abiodun Azeez in the eye during a robbery operation on Abeokuta Street, Bariga, Lagos. We had been looking for him since then. But on Thursday, he ran out of luck when he engaged us in a fierce gun battle. He died during the shootout. But some of his gang members are still at large.” Braide said Ibrahim is wanted by the police. She said: “They (hoodlums) are all young people who are fighting for the leadership of the park because of the revenue they normally get from there. We received a distress call that there was fighting in the area on Sunday morning. On getting there, the police found two bodies and three injured persons. The bodies were taken to mortuary while the injured have been taken to hospital.”

Fayemi presents car gift to ex-Milad Ayeni

KITI State Governor Kayode Fayemi has said his administration would continue to assist needy indigenes in whatsoever situation they find themselves. The governor spoke in Lagos during the presentation of a brand new Toyota Avensis car to Navy Commodore Oladipupo Ayeni (rtd), the first Military Administrator (Milad) of Bayelsa State, who has been on wheel chair due to an illness after his appointment in 1996. Fayemi, who was represented by the Permanent Secretary Political and Economic Affairs Department of the Governor’s office, Mr. Olusola Dada, noted that the car would enable him to know that the state government and the people of Ekiti State have not forgotten him. The governor said though the retired Commodore was a Military Administrator, he needed to be assisted, supported and cared for as a leader. He added that this is not a departure from the culture, heritage and norms of the Yoruba to care for the needy. Fayemi said Ekiti people realised Ayeni’s contributions and achievements in Bayelsa State, adding that the car gift would show that the residents were also praying for him. The governor said his administration has begun programmes that would banish poverty from the society and also ensure that those who have served the people do not suffer in their later years. Ayeni was emotional in expressing his appreciation through his Personal Assistant; Mr. Oluwaranmi. He hailed Fayemi for the kind gesture. The retired Commodore also prayed for the success of the Fayemi administration.

From left: Minister of Trade and Investment, Dr. Olusegun Aganga; Kaduna State Governor Ibrahim Shema; and his Osun State counterpart, Rauf Aregbesola, during a special event at the Rio+20 conference in Brazil...at the weekend

We’ll produce world-class students, says Aregbesola O YO State Governor Rauf Aregbesola has said his administration would produce students who can compete effectively and perform excellently like their counterparts in any part of the world. The governor said he was ready to match and exceed the feat of the late Premier of the defunct Western Region, Chief Obafemi Awolowo. Aregbesola spoke at the weekend at the Obafemi Awolowo University (OAU), Ile-Ife, during this year’s celebration of Obafemi Awolowo Free Education Initiative organised by the Faculty of Education of the institution. He said his administration has reconnected with the path to sound education, economic development and social progress for Osun State. Represented by his deputy, Otunba Grace Titi LaoyeTomori, the governor said the Awolowo’s idea was to ensure an education policy that

From Adesoji Adeniyi, Osogbo

could empower Nigerian youths to be relevant in meeting major challenges. He said: “Chief Awolowo considered education as so important that it had to be made accessible to everybody. His ground-breaking initiative of free education worked effectively that the brains, bodies and minds of those who received this form of educational training were fully developed. “In formulating policies suitable for economic development, Awolowo came up with a viable wealth creation programme and built sustainable infrastructure. Anyone who carefully peruses his thoughts on education, religion, or economy, and diligently inquires about his deeds in those areas would certainly discover a man of solid charac-

ter and integrity, whose worldviews and actions had no gapping disconnect. “I feel very pained to observe that the education we give our young people today barely results in the full development of their body, brains and minds. This acute lack of round development has given to us a ragtag army of youths fettered by wounding ignorance, wicked prejudices and perturbing narrowness of mind.” Describing the vision, character, mental make-up, habit, challenges and travails as well as remarkable feats of the late Awolowo as trailblasing, Aregbesola said the focus of his administration is to resume the journey to greatness and even surpass the feat of the late sage. To those who are mindful of the happenings in the state, the

governor said he made a commitment in his inaugural speech to resume the journey of economic prosperity and exemplary democracy that were the hallmarks of the defunct Western Region under the late Awolowo. He added that his administration has hit the ground running with the vision. Aregbesola said since he assumed office, his administration has not digressed from formulating and implementing policies that develop the residents. According to him, the government policy of functional education squarely caters to the full development of the brain, mind and body of young people in line with the feat the late Awolowo achieved. The governor said apart from giving the education sector the lion’s share of the budget, “we are also providing free feeding that costs about N1.5 billion annually for our elementary pupils”.

Board appointments tears Oyo PDP

HE leadership crisis rocking the Oyo State chapter of the Peoples Democratic Party (PDP) deepened at the weekend. A faction in the party called for the head of the Southwest Zonal Chairman, Mr Segun Oni, over federal board appointments. One of the factional leaders, Elder Wole Oyelese, described Oni’s position as bias. In a statement in Ibadan, the state capital, Oyelese faulted Oni’s handing over of the list of allocated federal board positions to former Oyo State Governor Adebayo AlaoAkala. Oni has worsened the leadership crisis within the party, the former Minister of Steel said. He described Oni’s action as

From Oseheye Okwuofu, Ibadan

“robbing Paul to pay Peter”. According to him, the zonal leader has reneged on his promise that he would not be partisan or recognise one faction at the expense of the other. Oyelese said: “One may wish to ask Oni what has really changed in the situation in Oyo State PDP that influenced and encouraged his decision to hand over the list of allocated federal board positions to Otunba AlaoAkala and his self-appointed chairman.” He said it was highly disappointing that the optimism and confidence and the attendant goodwill generated by the bold statement of the Southwest zonal chairman of the PDP En-

gineer Segun Oni during his maiden visit to Oyo state condemning the kangaroo parallel state congresses held by two factions of the party could be so easily frittered away by him. Instead of carrying along all necessary stakeholders in the party in bringing the crisis to an end, Oyelese alleged that Oni went to do the exact opposite by giving surreptitious support to a faction of the party. “For those who knew of the level of corruption perpetrated by some individuals in the last administration and national executive as regards the Oyo state PDP crisis and used same for pecuniary benefits, an action that is responsible for the intractable nature of the crisis, Oni’s action is indeed a worrisome and sad development”. The chieftains of the party

noted that there was definitely no honourable excuse for the action as Oni had now allegedly made himself a tool in Akala’s hand. He stressed further that the zonal chairman was well aware and he had made statements to the effect that there had not been any credible congresses in Oyo state PDP and had actually stated that he would not recognise any executive in Oyo State as there was no legally constituted one that was fair to all. “The truth and stark reality is that any steps taken on Oyo state PDP crisis that does not address the issues right from the ward to the state level would be an exercise in futility and this portends great danger to the survival of a virile party”, Oyelese said.

Okotie announces separation from second wife

•Okotie

HE founder/senior pastor of Household of God Church, Oregun, Lagos, Pastor Chris Okotie, yesterday announced the collapse of his second marriage. Okotie married Stephanie four years ago in a controversial wedlock after divorcing his first wife of over 10 years. The announcement surprised members of the church. The presidential candidate of

By Sunday Oguntola

Fresh Democratic Party (FRESH) dropped the bombshell before the close of service. Okotie said: “Stephanie and I are no longer married. We have separated. You can see she’s not in church today. It’s due to irreconcilable differences and you should please respect our wishes at this time because there is no going back.”

The church members stood speechless. They stopped dancing, as the pronouncement came after the June birthday thanksgiving. Though Okotie gave no reasons for the separation, sources said it might not be unconnected with their inability to have a child. Stephanie had three children in her former marriage but none for Okotie.

THE NATION MONDAY, JUNE 25, 2012

NEWS Monarch, chairman urge end to Boko Haram violence By Emmanuel Oladesu, Deputy Political Editor

N Action Congress of Nigeria (ACN) chieftain, Abdulfatai Oyesanya, and Alaketu of Ketuland, Lagos, Oba Isiaka Oyero-Balogun, have urged Muslims and Christians to assist the Federal Government to halt the violence by the Boko Haram sect in the North. Oyesanya, who is the chairman of Ikosi-Isheri Local Council Development Area (LCDA), described the sect as anti-Islam because the religion stands for peace. Oba Balogun warned that crises and violence are inimical to peaceful co-existence, saying Christians, Muslims and traditional worshippers should live together in peace. The duo spoke at the weekend in Ikosi, a Lagos suburb, at the turbaning of Oyesanya as the Jagunmolu-Adinni by the Nuru Da’Awah Society of Nigeria (NUDWAN), led by Alhaji Musa Abolaji Al-Adabby. At the ceremony were eminent clerics, political leaders and traditional rulers. Oyesanya, who frowned at religious bigotry, noted that Islam is a religion of peace and tolerance. He advised Muslim parents to nurture their children by exposing them to both Koranic and Western education. He added: “What is happening in the North is un-Islamic. Boko Haram is un-Islamic. They are fighting for other things, and they understand it. Islam is about total submission to the will of God. Let parents send their children to Qur’anic schools and Western schools. Both should go together. Both knowledge will direct the steps of the faithful.”

Ondo ACN governorship aspirants warm up for primaries T HE Ondo State chapter of the Action Congress of Nigeria (ACN) will conclude its governorship primaries this week, it was learnt yesterday. Top contenders in the race are former President of the Nigerian Bar Association (NBA), Mr Rotimi Akeredolu (SAN); former Defence Minister Dr. Olu Agunloye; and popular politician Saka Lawal. Party sources said Akeredolu may clinch the ticket. It was learnt that the emergence of a flag bearer is generating tension because the ruling Labour Party (LP) and the Peoples Democratic Party (PDP) have planted a few aspirants to

•Akeredolu, Agunloye, Lawal lead contenders By Emmanuel Oladesu, Deputy Political Editor

destabilise the process. In the last few months, ACN leadership has wrestled with how best to deal with the story that some of the aspirants were planted and funded by Governor Olusegun Mimiko to destabilise the process. The source said: “The game plan is that once they fail to clinch the ACN ticket, they can simply return to the LP and get richly rewarded. All decisions

reached and the outcome of the discussions held at the ACN leadership level gets to Mimiko within minutes. This gives credence to the fact that some of the aspirants may have been planted by the governor.” But a member of the ACN National Executive Committee said the party leadership, rather than discriminate against any aspirant, has carried all of them along. According to the source, only loyal party members

and authentic candidates will remain in contention. The source added: “The recent collective attempt to reject one of the candidates by a purported resolution of all the other candidates is in line with the Mimiko script to create acrimony and confuse the electorate. A few of the candidates have confided that once they do not get the ticket, they will return to the LP. They are already holding negotiations to return to the LP.”

•Ekiti State Governor Kayode Fayemi (second left); Deputy Governor Mrs Funmi Olayinka (right); the governor’s wife, Bisi (left); newly ordained Bishop of the Diocese of Ekiti, Anglican Communion, Rev. Christopher Omotunde; his wife, Bisi; after the ordination ceremony at the Cathedral Church of Emmanuel, Ado-Ekiti...at the weekend.

I’ll uphold judicial independence, says Ajimobi

YO State Governor Abiola Ajimobi has said his administration would always uphold the principle of separation of powers among the three arms of government and ensure the independence of the Judiciary. The governor spoke at the weekend in Ibadan, the state capital, at the swearing in of members of the state Judicial Service Commission. He said he would put the Judiciary on a good pedestal for quick administration of justice. Ajimobi urged members of the commission to partner his administration to ensure that the Judiciary regains its lost glory. The governor advised them to rehabilitate the courts and judges’ chambers, computerise judicial process, introduce digital recording of court proceedings as well as appoint more judges and magistrates. According to him, members of the commission will review

and improve on the welfare of judicial workers as well as review and standardise the training for judicial personnel, at local and international levels. Ajimobi noted that judicial officers need to bring their experience to bear on the quick

and successful execution of justice. The governor advised them to live by justice and ensure equity and fairness in their activities. He said: “Let the judiciary remain the last hope of the common man, as it is supposed to

be.” Ajimobi added that they should embrace faithfulness, diligence, service above personal interest, shun discrimination and check corruption in the course of their duties. The commission is chaired by

Chief Judge, Justice Badejoko Adeniji while the AttorneyGeneral and Commissioner for Justice, Mr. Adebayo Ojo is the Vice-Chairman. Alhaji Lasun Sanusi (SAN), Paul Ayoola, Adeniji Ademola and Oseni Abdulganiyu are members.

I’m for Osun without flood, says governor

SUN State Governor Rauf Aregbesola has said his administration embarked on dredging some rivers because he wanted the residents to live without the fear of floods. The governor noted that Osun State residents have the constitutional right of life, adding that this is what he is working to guarantee among them. Aregbesola spoke in Rio De Janeiro, Brazil, during discussions with Nobel Laureate Prof Wole Soyinka in company of Osun State Speaker Najeem Salaam.

He said he is fighting environmental hazards for the residents to have peace of mind. According to him, he will not rest until his administration eliminates circumstances that can hamper the residents’ wellbeing. Aregbesola noted that it was his love for the residents that prompted him to seek a better alternative to checking flood, which has long wreaked havoc in the state. He said otherwise over 400 houses, which the ousted government had marked for demolition, would have made over

5,000 poor people homeless. The governor said he is tackling flood because many residents would not sleep each time it rained. Aregbesola said if showing “brick and water” was an achievement, the huge funds spent on saving lives would have gone to other physical projects. The governor said the bills on urban regeneration and town planning, which he has sent to the House of Assembly, would give legal teeth to the laws for restoring the aesthetics to major towns.

He said: “My administration is keen on giving our people a befitting environment and standard urbanisation that can make Osogbo, the state capital, as well as all cities, attractive to foreigners who may desire to visit Osun for tourism and investment. The laws would be made to back the current drive.” Expressing displeasure over mass poverty, which he said has compelled capable youths to turn to politics for survival, Aregbesola said it is obvious that the raging economic recession is hurting all economies of the world, including that of Nigeria.

Governor, ex-VC Omole for conference OSUN State Governor Rauf Aregbesola and former Vice-Chancellor of Obafemi Awolowo University (OAU), Prof Wale Omole, will next month speak at a conference of the Institute of Strategic Management of Nigeria (ISMN). The Registrar and Chief Executive Officer of the institute, Mr. Adeyemi Mapaderun, said the conference would reorientate Nigerians to get the country out of the woods. He noted that though the failure or inability of successive administrations to apply strategic management has immensely contributed to Nigeria’s underdevelopment, many Nigerians have a major role to play in turning things around. The conference’s theme is: Strategies for enhancing and sustaining positive values for national development. According to him, the institute hopes to attract local and international attention on the need to enhance positive values in human endeavours. Mapaderun said ISMN also hopes to eliminate vices that could stunt the country’s growth. Mrs Hannah Oyebanjo and the Vice-Chancellor of the Osun State University, Prof Sola Akinrinade, will speak at the conference.

Educationist dies at 92 AN educationist, Pa Joseph Dare Egodo, is dead. He was 92. Pa Egodo was trained at the University of Reading, England, as a teacher. He died on June 4 2012. The Bishop of Ekiti Catholic Diocese, Bishop Felix Ajakaiye, was among the first visitors to the Owalushi Quarters, IwaroOka, Akoko, Ondo State, home of the late teacher. A statement by the family said a Christian wake keep will hold on June 28 at the late Pa Egodo’s home. On June 29, his remains will be laid to rest, after a requiem mass at the Our Lady Good Counsel Church, Iwaro-Oka, at 11am. Reception follows immediately at the Local Authority School I in the town.

ODUACCIMA seeks Southwest governors’ support for regional economic summit

HE Odua Chambers of Commerce, Industry, Mines and Agriculture (ODUACCIMA) has called for a partnership with Southwest governors on the need for a regional economic summit. The group said the proposed summit would explore and harness the diverse natural and human endowments in the region, particularly agriculture, and leverage on it to revive the economy of the old Western Region.

From Ernest Nwokolo, Abeokuta

The Regional President of the body, Iyalode of Egbaland, Chief Alaba Lawson, spoke at the weekend at the Ogun State Ministry of Commerce and Industry, Abeokuta, when members of the group received a bus from Governor Ibikunle Amosun. Mrs Lawson noted that the economy of the old Western Region was built by the late

Chief Obafemi Awolowo, the Premier of the region, using agriculture. She urged the present generation to return to agriculture, not just for food supply but also as a catalyst for development and the growth of Small and Medium Enterprises (SMEs) to boost the economy of the region and the country. Mrs Lawson said: “We are saying that our team and your team should work together,

especially on the economic summit. We will bring the summit from Ogun, Osun, Ondo, Ekiti and Oyo. We’ll put it together and place it on the table. “The cash crops in our area are different from the ones in Ondo and the ones in Ondo are different from the ones in Ekiti. The economic summit will enable us to put things together and get investors, especially in agriculture...” The Commissioner for Com-

merce and Industry, Otunba Bimbo Ashiru, who represented the governor, said the government would partner the chambers - state and regional - to speed up industrialisation in the Gateway State. He said: “What we are doing to is to encourage them to thrive, and the only way to encourage them is through funding. That is what we are doing now. If you go to Onijoganjogan now, the

incubatees are taking off in the industrial park. That is why we are trying to make our industrial park into clusters.” “So, we appreciate and know the importance of SMEs’ contributions to the GDP. This is the reason we are trying to encourage them in Ogun State. This is why even in the area of agriculture… the value chain in the processing of agricultural produce is what will turn to industrialisation.”

THE NATION MONDAY, JUNE 25, 2012

NEWS Monarch, chairman urge end to Boko Haram violence By Emmanuel Oladesu, Deputy Political Editor

•Akeredolu, Agunloye, Lawal lead contenders By Emmanuel Oladesu, Deputy Political Editor

•Niger State Governor Babangida Aliyu (middle); his deputy, Ahmed Musa Ibeto; and the Etsu Nupe, Gen. Yahaya Abubakar (rtd) at the fourth Nupe Day lecture at the Ibrahim Badamasi Babangida University, Lapai, Niger State...at the weekend

I’ll uphold judicial independence, says Ajimobi

I’m for Osun without flood, says governor

ODUACCIMA seeks Southwest governors’ support for regional economic summit

From Ernest Nwokolo, Abeokuta

THE NATION MONDAY, JUNE 25, 2012

NEWS THE BATTLE FOR EDO

‘Leave Gowon, Anyaoku out of Edo politics’ T HE Action Congress of Nigeria (ACN) in Edo State yesterday chided the Peoples Democratic Party (PDP) for attacking former Head of State, Gen. Yakubu Gowon and exCommonwealth SecretaryGeneral Emeka Anyaoku for their remarks on Governor Adams Oshiomhole. The Publicity Secretary, Dam Owegie, said Gowon and Anyaoku eulogised the governor based on their personal conviction. He said it is wrong for PDP to abuse the elder statesmen for commenting on the progressive administration in

By Emmanuel Oladesu, Deputy Political Editor

the state. Owegie said while ACN is showing evidence of brilliant performance, PDP has no good legacy. He said the PDP’s recourse to propaganda and blackmail ahead of the July 14 election would fail. The publicity secretary said the people are ready to reelect Oshiomhole because he has lived up to expectation.

He added: “It is on record that, in just three and a half years, Oshiomhole has built 200 roads with street lights, pedestrian walkways and parking lots. Owegie also said the urban renewal programme of the administration has beautified the state and attracted people from the diaspora to return home. He said the governor has abolished fees in primary and secondary schools and given free medical services

to expectant mothers, children and the aged. Owegie added: “What is certain is that there is no vacancy in Denis Osadebey Avenue, Benin-City. “Abusing elderstatemen cannot change the situation because Edo people are comfortable with Oshiomhole’s pragmatic leadership. “PDP members should bury their heads in shame. Oshiomhole has made the state an interesting place for all and nobody would want a return to the hellish days of PDP government where nothing worked. That dark era is gone for good”.

Airhiavbere: I’ll reduce college fees •Group to support PDP candidate From Osagie Otabor, Benin

EOPLES Democratic Party (PDP) governorship candidate Charles Airhiavbere has pledged to reduce tuition fees from N30,000 to N10, 000 in the Colleges of Education at Ekiadolor and Igueben. Airhiavbere, who spoke yesterday at a campaign rally in Igueben Local Government, promised to equip the colleges with modern facilities. This, he noted, would enhance qualitative learning at the colleges and ensure accreditation of courses by the National Commission for Colleges of Education. Airhiavbere, who appealed to the people to vote for the PDP, said the state would change for good. The party’s state Chairman, Dan Orbih, urged the people to unseat Governor Adams Oshiomhole through the ballot box. A group under the auspices of the Igun/Eyanugie youths and spare parts dealers have expressed support for Airhiavbere. They spoke at a PDP campaign in Igun Market. Their spokesman, Peter Okoh, said they supported the PDP candidate because of the multiple tax regime of Governor Adams Oshiomhole. He said: “Traders are being milked by the government. We can no longer bear this hardship. We need a government with a human face. A government of the people by the people and for the people, not this tyrant civilian rule we see here. “We are ready to support the PDP candidate who we believe in earnest can alleviate the adversity of the day” Airhiavbere pomised that his administration would cut down what he termed the ‘punitive tax’ policy of the Action Congress of Nigeria (ACN)-led government. He said his administration would create an enabling environment where businesses will thrive for the economic development of the state.

‘We didn’t join PDP’

T •Edo State Governor Adams Oshiomhole playing with a boy during a campaign visit

Oshiomhole vows to resist rigging

DO State Governor Adams Oshiomhole has said the people would resist any attempt by the Peoples Democratic Party (PDP) to rig the July 14 election. Oshiomhole said rigging through improvised means would bring “colossal damage to the electoral process.” The governor, who spoke through Director of Media and Publicity of his campaign organisation, Kassim Afegbua, alleged that plans were on to replace the Commissioner of Police, Olayinka Balogun. Part of the plans, he said, were to arrest some ACN chieftains from Edo Central. Afegbua also accused the PDP candidate of spreading falsehood to gain political points According to him, “during his outing at the Edo Decides discourse on AIT television, he said the Central Hospital collapsed. This is a lie. “The fact that a pillar col-

US group backs governor A United States group, the Usen Development Foundation, is supporting the re-election bid of Governor Adams Oshiomhole. A statement by the group’s Secretary-General, Osaro John Igiede, said the decision is based on the governor’s developmental efforts. It said: “Your Excellency, this is a first in our years of existence. You have shown that you are fearless, you have presence, substance, confidence, authenticity and a mandate to take the state to a new level. We are here to support you all the way to victory. “The evidence has spoken for itself, the report card is out and the grade is outstanding. Your performances are beyond the scope of this open letter of approval and above all by being a real comrade in deed, you have succeeded in giving voice to the people. “We want you to know that we are doing our part to pave the way for your success by encouraging our Usen brothers and sisters, our friends and colleagues tovote for you on July 14.” From Osagie Otabor, Benin

lapsed as a result of human error does not mean that the building has come down. “He also said the governor is not doing anything in the area of education. We all know this is wicked false-

hood. What about the hundreds of buildings that are being renovated and rebuilt? “Telling lies deliberately to score cheap political points is not a hallmark of honest leadership.

“They know they have failed, that is why they are running from pillar to post to make an impression, but Edo people are wiser now. They know the PDP is a bad product.” He called on the DirectorGeneral of the National Youth Service Corps (NYSC) to keep watch over the Corps members, who would be deployed to the state. “They must be prepared to do the right thing to sustain the ethics of democracy. “Edo people will be very vigilant during this exercise, hence it will be counterproductive for anyone to subscribe to agents of rigging and manipulation. “As Corps members on specific assignments, we expect the best standards during and after the exercise. “It is hoped that this note of caution will serve the interest of all in the build-up to the election,” Afegbua said.

Muslim Brotherhood candidate wins Egypt election

HE candidate of Egypt’s Muslim Brotherhood, Mohammed Morsi, was yesterday declared the winner of the country’s presidential election run-off. Morsi clinched 51.73 per cent of the vote, beating former Prime Minister Ahmed Shafiq, according to the Higher Presidential Election Commission. The head of the panel of judges, Farouq Sultan, said it had upheld some of the

466 complaints by the candidates, but that the election result still stood. The announcement prompted scenes of jubilation in Cairo’s Tahrir Square, where Morsi’s supporters gathered, BBC reports. They have been maintaining a vigil there for days in protest at the series of decrees by the ruling Supreme Council of the Armed Forces which they say are

designed to reduce or constrain the power of the president, and entrench the power of the military. On June 13, the justice ministry gave soldiers the right to arrest civilians for trial in military courts until the ratification of a new constitution. Four days later, just as the polls were closing in the runoff, the generals issued an interim constitutional declaration that granted them all

legislative powers and reinforced their role in the drafting of a permanent constitution. The military was also exempted from civilian oversight. Then on Monday, the head of the SCAF, Field Marshal Mohammed Hussein Tantawi, announced the reestablishment of a National Defence Council, putting the generals in charge of Egypt’s national security policy.

HE Transition Committee Chairman of Igueben Local Council, Sylvanus Osalumense Igbogbo, has denied reports that members of the Action Congress of Nigeria (ACN) in the locality joined Peoples Democratic Party. Sylvanus said the alleged defection was a fallacy and that there was no faction in the ACN . According to him, does defection happen in secret? Who are they and what are their names? There is nothing like that, I have not seen one

From Osagie Otabor, Benin

and as you know Igueben is fully ACN. PDP members are very minor here.” He however insisted that the ACN will win in Igueben in the July 14 governorship election because “our people will not be ungrateful to someone who has affected their lives. “ThePDP candidate, a soldier has nothing to offer nor better our lives. We are not at war so we do not need his services. We are talking of development and someone that has the people’s interest at heart.”

Candidate promises 400,000 jobs From Osagie Otabor, Benin

ANDIDATE of the Social Democratic Mega Party Frank Ukonga has promised to create 400,000 jobs within 100 days, if elected as governor. Ukonga said he would achieve it through creation of cottage industries where 200 to 500 persons would be employed. The SDMP candidate, who spoke at a governorship debate, also promised to create additional 300,000 jobs through the establishment of a Youth Construction Brigade. He said two million jobs would be available in the state in his first year as a governor. Ukonga said he would invigorate a strong agricultural revolution policy which will include loans and grants to farmers and assist with the cultivation and harvesting of crops . “We shall encourage huge mechanised farming and shall invite big farmers from across the world to come and invest in agriculture.” The SDMP candidate said his administration would pursue Internally Generated Revenue (IGR) aggressively and promised to accelerate development in the urban and rural areas.

Commissioner advises youths

DO State Commissioner for Youths and Sports, Ms Anita Evbuomwan, has advised youths to stay off thuggery. The Commissioner, who spoke in a telephone interview, said plans to heat up the state would fail. She said the election would be a clean slate win for Oshiomhole as Edo people have spoken with one voice. “I want to appeal to our youths to resist attempts by some unscrupulous elements to heat up the polity,” she said. They know that the com-

By Precious Igbonwelundu

ing election will be a referendum for the governor, hence, they have devised to cause unrest and violence, but they won’t succeed because Edo people are better enlightened,” she said. On the preparations by the Action Congress of Nigeria (ACN), Evbuomwan said campaigns are intop gear. “We campaigning. We believe in practical, if the government has not performed, we would have buried our heads in shame or engage in throwing banters like the opposition.

THE NATION MONDAY, JUNE 25, 2012

CITYBEATS

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

Four dead in crash By Ayeni Olalekan

FOUR persons died and 10 others were injured yesterday in an accident involving a truck at the old toll gate on Ota road. The truck, loaded with granite, was coming from Ogun State and heading towards Lagos, when the accident occurred. The accident, according to the truck driver, was due to brake failure. The Unit Commander, Federal Road Safety Commission (FRSC), Ota Branch, Mr Kolawole Salami, said: “Four were dead and 10 others were seriously injured in the accident and they have been taken to hospitals.” Salami urged Governor Ibikunle’s Amosun’s administration to join the commission in dispersing hawkers from the express to ensure free flow of traffic. “Really, we all know that the roads are bad, but the traders, commercial vehicles and Okada riders had occupied the 85 per cent of the road, therefore, it is difficult for drivers to manoeuvre in case of any brake failure,” Salami said.

Seven-day rain in Lagos THE Nigerian Meteorological Agency (NIMET) at the weekend said Lagos would soon experience a Seven-day rainfall. Mr Abayomi Oyegoke of NIMET Central Forecast Unit, Oshodi, Lagos, made the disclosure in a chat. Oyegoke said that a total of 570 mm of rainfall had been recorded in Lagos State between January and June. He explained that the rains experienced were the beginning of a seven-day rainfall. “In the last one week, it appears we are experiencing a prelude to the normal seven days rainfall and immediately after the seven days rain, what should be the next, is the little dry season.

Woman inserts 66 wraps in private part

48-year-old woman, Mande Fatima Bala, has set new record in narcotics smuggling. She inserted 66 wraps of substances that tested positive to methamphetamine, weighing one kilogramme, in her private part when she attempted to board a Kenyan Airways flight to Nairobi, officials said at the weekend. According to the National Drug Law Enforcement Agency (NDLEA), no suspect has ever inserted such a large quantity of drugs in her private part since the agency’s establishment in 1989. The suspect, a graduate of accountancy, was apprehended a week ago at the Murtala Mohammed International Airport (MMIA) Ikeja, Lagos. The quantity of drugs, the agency said, was so much that it affected her gait, thus attracting attention of officials. Luck, it was said, ran out for her when a wrap fell on

•NDLEA is incredible By Kelvin Osa-Okunbor

the floor at the screening area as she bent down to pick up her belongings. Upon interrogation, she confessed to the crime, saying she was asked to swallow the drug but was scared of death. Mrs Bala lived in Australia for about two years before she was deported in 2010. The NDLEA Commander at the airport, Hamza Umar, described the case as shocking. “This is incredible. No suspect has ever inserted such a large quantity of drugs in the country. Usually, cases of insertion are not more than 300 grammes. It is amazing,” Hamza said. According to the suspect, who is a widow and mother of three, it was how to pay school fees that lured her into the criminal act.

She is quoted as saying: “I am a widow with three children. It was N45,000 school fees for my child and landlord who is threatening to eject me by July for not paying my rent that pushed me into drug business. I was instructed to swallow the drugs, but I was scared because I have never seen drugs in my life. I used to sell water and drinks after my husband” died in an auto accident in 2007. “Few years after, I lost everything and could not feed. I studied accountancy, but I have never practised,” the 1992 graduate of Accounting of Obafemi Awolowo University (OAU), Ile-Ife, Osun State, said. She added that she concealed the drugs herself. “I was given the drug in a hotel. I was afraid of death because I have heard of people dying because of drug ingestion. So, I decided to insert the wraps on my body. It was difficult because I

could not walk normally, but I had to try my best to avoid suspicion. I have nobody to take care of my children,” she said. NDLEA Chairman Ahmadu Giade said everything about the suspect is disturbing. “Apart from the quantity of drugs caught with her, her route is also a new development in drug trafficking. Drug barons now adopt a relay approach to drug trafficking. They wanted to use her to take the drug to another African country before using an indigene of that country to take the drug to other continents where the profit is higher,” Giade said. Bala hails from Lagos Island and lives at Ijoko in Ogun State. She began her education at Anglican Primary School, CMS, Lagos. She also attended Aunty Ayo Comprehensive High School, Obalende, Lagos before studying accounting at the OAU. She will soon be charged to court.

Man arraigned for human trafficking

MIDDLE aged man, Mr. Charity Obwunoguan, has been arraigned before a Federal High Court, Ikeja, for alleged procurement of a girl, Miss Blessing Emmanuel, for prostitution in Mali. Obwunoguan appeared before Justice Stephen Adah on a threecount charge of “organising foreign travels, which promote prostitution, procurement for prostitution and deceitful inducement of persons to Mali.” The offence, according to the prosecutor, Mr. Ganiyu Ilori, contravenes the provisions of Trafficking in Persons Prohibition Enforcement and Administration Act

By Adebisi Onanuga

2003 as amended. The accused pleaded not guilty. Led in evidence by the prosecutor, a witness, Mr. Ola Rotifa, an investigating officer with the National Agency for Prohibition of Traffic Persons (NAPTP), told the court that the accused allegedly deceived Miss Emmanuel, who he met sometime in 2009, that he would take her to Europe. Rotifa told the court that on June 11, last year, the accused allegedly handed Miss Emmanuel over to a contact, Dominic, who took her to Cotonou, Benin Republic, from where they proceeded to Mali.

Another prosecution witness, Mr. London Aloba, a police officer, told the court that sometimes in July, last year, he was in his house when he received a call from Miss Emmanuel that she was somewhere in Mali. Led in evidence by the prosecutor, Aloba, said Miss Emmanuel told him that she was travelling abroad to Europe, but that her journey was diverted to Mali. The witness said Miss Emmanuel informed him that the trip was allegedly arranged by charity and that his daughter would assist him to locate where the accused is residing. “As at the time I got the infor-

mation, Charity was not known to me, but based on the information, I asked my daughter to go and locate where Charity lives off our street in Fagba. At 12 midnight, I led some Policemen to the place and he was arrested and brought to the station and the following day, he was transferred to Panti,” Aloba said. Under cross examination by counsel to the accused, Mr. O. Enyi, the witness, who said he got to know Miss Emmanuel during the feneral of his wife, said he was not aware of any relationship between the accused and the victim before the incident. Justice Adah adjourned trial to October 4.

Litigation delays Ago Palace Way road By Miriam Ndikanwu

THE ongoing rehabilitation of Ago Palace Way in Okota, a Lagos subob, is being delayed by litigation, the state government has said. In a statement, Biola Fagunwa, Assistant Director, Press and Public Relations of the Ministry of Works and Infrastructure said: “It has become necessary to state in the overall interest of all, that the efforts of the state government to provide a befitting road for the use of the people and residents alike is currently being hampered by litigation. “Arising from the various complaints, the Commissioner for Works and Infrastructure, Dr. Kadri Hamzat, in the company of the management and project staff, visited the road three times recently to ascertain the state of things and find immediate solutions.” According to her, the visit had been revealing and that formed the basis for putting up palliatives for the residents of the area. “As an existing road within a built up area, there is bound to be removal of some structures. However, when demolition occurs, government has made it a point of duty to consult widely and pay adequate compensation to all those with legally tenable claims. This was the case with this particular road and all other such roads. “Early in the life of the project designed to ensure a first class road and address the perennial logjam on the axis, there had been stakeholders meetings to discuss the modalities for the reconstruction work.

•Part of the congregation...yesterday. INSET: Pastor Kumuyi.

HE Founder and General Superintendent of the Deeper Christian Life Ministry, Pastor Williams Kumuyi, yesterday urged Nigerians not to lose hope in God. They should also not doubt that the country can survive its predicaments he said. He urged leaders to be proactive as this is a sure way of raising hope again, according to a statement signed by the Church Secretary, Pastor Jerry Asemota, and released to the press after the Celebration Service held at the Church’s International Bible Training Centre, Ayobo, Ipaja, a Lagos suburb. “We urge the leadership of the country to be more proactive,” the

PHOTO: NIYI ADENIRAN

There is hope for Nigeria, says Kumuyi By Segun Balogun

statement read in part. “We believe sincerely, that good and proactive governance can go a long way in addressing many of the problems we are currently experiencing.” In his sermon, Pastor Kumuyi urged Christians and Nigerians to be thankful always for what God has done to protect their joy. “This is the kind of joy that brings transformation and turns grasshoppers to giants,” he said, adding: “When you face the enemy and hear these testimonies,

you throw away your fears and despair because the hope of the power of God is rekindled in you.” The service, the first ever to be held by the church, was to celebrate God’s mercies on the church and its members. “Some people ask why we celebrate miracles in the face of security challenges, unemployment, poverty, disease, and infirmities in the country. While our hearts go out to the families of the victims of the recent unfortunate occurrences, notwithstanding, it is a settled fact that God is still good,” the statement said.

“As a church, we have many proofs of God’s favour and that gives us assurance that there is hope for this nation.” Members of the congregation gave testimonies, which sent the worshipers into shouts of joy and clapping. There was the testimony of a couple, Benedict Ogbonna and his wife, who had a baby after eight years of childlessness. Another man testified of how God miraculously delivered him from kidnappers who demanded N100m ransom. A woman testified of how God healed her of terminal diseases.

THE NATION MONDAY, JUNE 25, 2012

EDITORIAL/OPINION EDITORIAL FROM OTHER LAND

COMMENT

Sanctions Against Iran

Extra subsidy payment •This is coming up because government is not serious about sanitising the sector

E still have a long way to go on fuel subsidy, going by media reports. Last week, it was reported that the Federal Government may spend an extra N624 billion on fuel subsidy this year. If this happens, then we would have committed about N1.5 trillion to fuel subsidy this year alone. Already, we have N888 billion budgeted for the item for year 2012, and this includes N415 billion carried forward from last year. For sure, it would take strong will for the government to get to the root of the fuel subsidy matter, given the high-wire politics that is playing itself out and the personalities suspected to be involved in the rip-off. Nigerians may not know how much they spend on fuel subsidy per year, but what is known is that there is a huge racket woven around the issue, especially if empirical evidence of what we have been spending to subsidise fuel until last year is taken into consideration. For example, last year, N240 billion was voted for the item; interestingly, the government overshot that by more than N 1 trillion, and without appropriation by the National Assembly! This was the highest ever spending by a Nigerian government on fuel subsidy and it is most appalling when only one product (petrol) supposedly got the highest allocation. The questions to ask are what could have been responsible for this increased consumption of fuel that warranted such a humongous subsidy payment? Were Nigerians more prosperous in the year? Did we import more vehicles in the year and sold more because merely import-

ing more vehicles was not enough? If anything, available statistics show that more Nigerians were pushed below the poverty line last year. So, how come we paid that much on fuel subsidy? Apparently, those fiddling with the subsidy payments did not reckon with the possibility that a day would come when Nigerians would be asking questions on the matter, and that day might never have come if the Federal Government had not, in desperation, removed what it called fuel subsidy on January 1. This led to protests that later forced the government to reduce the pump price of petrol from N141 to the present N97 per litre. What was most surprising is that amidst the uncertainty of exactly how much Nigerians spend on fuel subsidy, the Federal Government set up what it called Board of the Subsidy Reinvestment and Empowerment Programme (SURE) to manage savings from the subsidy removal. One would have thought that a government that cares about accountability and transparency would have been in the vanguard of unravelling the subsidy fraud. But what we have seen so far is a government that has a preconceived agenda of increasing fuel prices at all cost, instead of getting those who stole through fuel subsidy prosecuted. This has led to speculations that the government is not interested in unmasking the subsidy racketeers because they might have provided part of the funds that was spent on last year’s election. Indeed, the way the government has been going about the subsidy issue has

made many Nigerians and even external governments like the United States to insist that the report of the House of Representatives probe into the subsidy fraud, should still be implemented despite the bribe saga involving the adhoc committee’s chairman (now suspended) Farouk Lawan and Chairman of Zenon Oil and Gas, Mr Femi Otedola. That has remained our position too. A more serious government would have queried the fuel importers as soon as it discovered they had overshot budgetary provisions when there were no justifications for the quantity of fuel they said they imported. If we are yet to know precisely how much we spend annually on fuel subsidy, it is because the government does not appear desirous of knowing this. And this is unfortunate.

‘A more serious government would have queried the fuel importers as soon as it discovered they had overshot budgetary provisions when there were no justifications for the quantity of fuel they said they imported. If we are yet to know precisely how much we spend annually on fuel subsidy, it is because the government does not appear desirous of knowing this. And this is unfortunate’

Beyond the fines •NCC must not relent until telecoms providers deliver quality services

IGERIANS have been complaining about the quality of service rendered by mobile telecoms operators in the country for some time. Indeed, quite a sizeable number of users of mobile phones are unhappy with the ham-fisted services of the telecommunication providers but could do nothing other than continue suffering in silence because the problem is common to all of them. An official acknowledgement of this fact came when the Nigerian Communications Commission (NCC) slammed a fine of N1.17 billion on the telecoms giants - MTN, Globacom, Airtel and Etisalat, for not meeting the standards set in the Key Performance Indicators (KPIs)

‘Beyond the issue of fines, the NCC will do well by ensuring that the huge penalties paid by the operators are ploughed back into developing infrastructure in the nation’s telecommunication sector. Other less endowed countries, even within the continent, enjoy effective and efficient telecommunication services. Why is Nigeria’s situation different?‘

set for measuring standards in the industry. They have all paid the fines. MTN and Etisalat were fined N360million each while Airtel and Globacom were fined N270million and N180million, respectively. At the time of awarding the penalty, the NCC gave the providers two weeks to pay up or get additional N2.5million per day contravention charges. But this order was defied as at the time the ultimatum expired on May 25. In outright contempt for the NCC, the penalty was paid more than 38 days after the NCC slammed the fine on them. To ensure discipline and sanity in the industry, we expect NCC as a regulator to ensure that the whole contravention fines for the total number of defaulting days are paid by the telecom providers. This will go a long way in ensuring that others in the sector will not treat orders from it as empty threats. There should be a way of ensuring compliance with policy decisions from NCC so that the commission would not be calling for countless, and most times, needless meetings with the operators that have little or no regard for it. We urge the restoration of sanity in the operations of the mobile service providers. At the moment, their services, in most instances, fall short of expectations. Yes, the commission acted within its mandate by awarding fines against the operators but it should be more than that. The fines might be a good starting point though, the

emphasis should henceforth be on quality service which is at present, a privilege and not a right to millions of telecommunications subscribers. What is happening with the payment of the fines by the operators could at best be described as an act of robbing Peter to pay Paul. While millions of customers pay for incomplete calls, inaudible calls due to jammed trunks and others, the operator make huge profits, from which they now paid the fines. Apart from the fines paid into the coffers of NCC, we demand that customers, as direct victims of the poor services dispensed by the operators, should be paid compensation too. This is necessary because they experienced firsthand, the epileptic service of the telecoms providers, not the NCC. Beyond the issue of fines, the NCC will do well by ensuring that the huge penalties paid by the operators are ploughed back into developing infrastructure in the nation’s telecommunication sector. Other less endowed countries, even within the continent, enjoy effective and efficient telecommunication services. Why is Nigeria’s situation different? This is a poser that the NCC and the operators must earnestly find answers to. We have come a long way on telecoms; what we are getting more than 10 years after is not the best. There is an urgent need to improve on it.

T is disappointing but not surprising that two days of negotiations this week failed to produce any real progress toward curbing Iran’s nuclear program. Iran, always playing the angles, is still trying to figure out how much economic pain it is willing to accept to maintain its nuclear ambitions and what, if anything, it is willing to give up. It is in the interest of the United States and its allies to keep talking, especially since a new round of sanctions are scheduled to go into effect. On June 28, the United States can start barring foreign banks doing oil-related business with the Central Bank of Iran from access to the American financial market. Starting on July 1, all members of the European Union will be prohibited from buying oil from Iran and insurance for ships that carry Iranian oil. The meetings in Moscow were the third in a series involving Iran and the United States, Russia, China, France, Britain and Germany. To avoid a collapse in talks, they agreed that lower-level experts will meet on July 3. The goal has to be to shut down all of the program that gives Iran the capability to build a bomb. The United Nations Security Council ordered that all enrichment should be ended six years ago, but the major powers were right to start the talks with a more short-term goal: to stop the most dangerous kind of enrichment. Negotiators offered fuel for a medical reactor and aircraft replacement parts if Iran agreed to stop enriching uranium to 20 percent purity — near bomb grade — send its stockpile out of the country for fabrication into fuel rods and shut the underground facility at Fordo where the 20 percent enrichment is taking place. Iran hinted in Moscow that it might limit enrichment to below that level but wanted more relief from sanctions and for the major powers to declare that it has a right to enrich uranium. The major powers say Iran will have that right if it proves it is not building a weapon. We don’t know if any mix of diplomacy and sanctions will persuade Iran to give up its ambitions. But there is no quick military fix. Even a sustained air campaign would likely set Iran’s nuclear program back only by a few years and would rally huge sympathy for Tehran both at home and abroad. The current international consensus for sanctions, and the punishments, would evaporate. That hasn’t stopped American politicians from both parties from posturing on the issue. Before the Moscow talks, 44 Republican and Democratic senators sent President Obama a letter demanding that he abandon negotiations if there were no Iranian concessions. The critics neglect to mention that Iran’s program grew significantly when George W. Bush was president and opportunities were lost to constrain it at a much lower level. No president has been as successful as Mr. Obama in rallying the major powers to impose sanctions with bite. These are the first serious nuclear talks in years, and there is still time to let them run. New York Times

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

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THE NATION MONDAY, JUNE 25, 2012

EDITORIAL/OPINION

IR: There is no doubt that The Nation is one of the most read and widely circulated newspapers in Nigeria. As an ardent reader and patron, I can boldly say that the publication is indeed Nigeria’s truly national newspaper. Aside the avalanche of columnists and scholars who contribute to the newspaper daily, its objective and incisive coverage of local and international news is a huge attraction for me and some other readers I have interacted with. But last week I was disappointed by this publication for the first time in a long while. While reading the newspaper I came across an article that did not go down well with me. It was the editorial titled ‘The way out’ published on Tuesday, June 19. After perusing the said article thrice, I concluded that there may be an un-

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That Dangote editorial derground agenda to smudge the image of Alhaji Aliko Dangote, one of the greatest businessmen Africa has ever known. The editorial threw decency, one of the fundamental principles of journalism to the wind by employing an uncouth language to drive home its point. It is unthinkable that an editorial would descend so low to the point of subtly describing somebody like Dangote as a ‘monster’.

The soaring price of cement is a national concern of which Dangote himself is also affected. As one would expect a good Nigerian to do, he is constantly making efforts to cut cost and increase production capacity which will ultimately lead to a reduction in the price of the commodity. As the editorial rightly noted, Dangote’s latest production line in Obajana, Kogi State takes the plant’s capacity to 10.25 million tonnes per

year. Even an illiterate understands the expansion of the plant will create more employment opportunities for people in that area of the country. Seeing that the editorial was quick to point out that Dangote accounts for about 70 percent share of the cement market makes it easy to conclude that he was on a mission to mudsling Dangote’s reputation as a philanthropist and astute businessman.

Jonathan: What manner of leader? IR: This is one whole year into President Goodluck Jonathan’s four year tenure. With the plethora of examples of monumental failure which stares us in the face since he assumed office last year, do we still have to look too far to ascertain if our once shoeless President has failed? Do you still remember the man who said “ I had no shoes”. The same President who said his electoral ambition is not worth the blood of anyone has the temerity to jet out to faraway Brazil at a time hundreds of innocent Nigerians were prematurely sent to graves last Sunday in Kaduna and Yobe states! What can be more callous than this? President Goodluck Jonathan’s ascension to power remained the most controversial, beleaguered, tumultuous, rancorous and controversial in the nation’s chequered political history. In the build up to the last presidential poll, things went absurd. Age-long values of truth, sincerity and morality gave way to politics of deceit, lies, name-calling, betrayal of trust and money politics. For Jonathan’s sake, Africa’s selfacclaimed largest party, the Peoples Democratic Party (PDP), tampered with the party’s constitution, a development which is still threatening the party’s soul. Though, the dust raised by the illegitimate and screaming manipulation of the party’s zoning arrangement is gradually settling, many analysts

are still of the believe that the development has set a bad precedence which will continue to remain a reference point for the wrong reason. Like the typical Nigerian politician who in his desperate quest to cling unto power will promise to turn deserts to forests and build bridges where there is no trace of water, President Jonathan reeled out a number of programmes he intended to implement if elected. He assured Nigerians of a country that would flow with milk and honey. A Nigeria where hospitals will be built across its 774 councils, where good roads will be constructed, where electricity supply will be steady, where quality education will be accessed by all; and Nigeria and where affordable housing will be enjoyed by all Nigerians, irrespective of social or economic status. A

Nigeria where public office holders will be transparent and accountable in their daily engagements, the rights of everyone will be guaranteed and a Nigeria where corruption will be seen as taboo. As planned, the election came and the anointed candidate, President Jonathan emerged winner. His disdain for the commoners became obvious when he, against public outcry and complete rejection, removed subsidy on petroleum; a development that shot up the price of a litre of the Premium Motor Spirit (PMS) popularly called petrol to N150. The action resulted in weeklong street protests which shut down the entire nation. Under President Jonathan’s watch insecurity has hit the roof top. Under his watch, corruption has permeated the entire system such that

lawmakers openly collect bribes in carrying out their oversight functions. Under his watch criminal elements under amorphous names have continued to visit terror on Nigerians every other day. Most of the promises made by the Jonathan administration are only being implemented on the pages of newspapers. Decay in various strata of the country is steadily on the rise. The gap between the rich and the poor keeps widening daily. Poverty now walks tall on the streets as millions go to bed daily on empty stomachs. We are at crossroad. We are all broken-hearted. As rhetorically sang by late legendary singer, Whitney Houston, Where Do Broken Hearts Go? • Abdullahi Yunusa, Minna, Niger State.

I agree that monopoly or ‘Oligopoly’ as the editorial puts it makes the producer or manufacturer the king instead of the consumer. But the soaring price of cement should not be blamed on Dangote. Like every other manufacturer in this country he is bedevilled by the challenges of epileptic power supply, bad roads, poor infrastructures and a dearth of other social amenities needed to make a business thrive. What is Dangote’s offence as a business man? Is it his fault that investors are afraid of coming to do business in Nigeria? The cement market is free and open to other investors to come in. If we had more manufacturers willing to take the risk of investing, the price of the commodity will be drastically reduced and more Nigerians will be able to own their own houses. We are talking about a man who through his business ventures has made it possible for thousands of Nigerians to earn a living and take care of their families. What The Nation and other media organisations in Nigeria should be doing is to celebrate him and encourage more investors to come into the country. Editorials should be used to commend and not condemn the efforts of the likes of Aliko Dangote who stick out their necks for the development of this country. The role of the press in the development of any society cannot be over emphasized. Knowing how important they are to the advancement of the society, journalists and other media practitioners must be extremely careful not destroy the society they are supposed to build. • Usman Bala Bida, Niger State.

Rename LASU after Jakande

IR: On page 37 of The Nation of June 21, you reported a university lecturer as saying, inter alia, that ‘our leaders are waiting for Bola Tinubu or Lateef Jakande to die so that they can name LASU after them’. Let me say that naming LASU after Jakande is a most befitting honour. Tinubu , being a worthy figure in several other respects, on his own, need not be in competition with Jakande on anything. But the authorities should not wait for Baba Jakande to die before nam-

ing LASU after him. They should do it now. Lagos people have a lot to celebrate in Jakande’s life. He gave us Lagos State University – LASU, now a world class institution when the notion was that Lagos State indigenes knew nothing more than owambe (merriment). He opened up the Lekki axis which was a backwater of the state to become a multibillion naira development area, the Mecca of local and foreign property developers. He laid the foundation for making Lagos State the most livable, peaceful, best governed and

most business friendly state in Nigeria, as a result of which millions of Nigerians, and foreigners ,would rather live and do business in Lagos than in any other part of Nigeria. These are just a few of the achievements of Jakande when he governed Lagos. What about his feat, in eradicating the shift system in Lagos public schools within 24hours of assuming authority! Baba therefore deserves all the honours that can be bestowed on him. In addition to naming LASU

after him, the entire length of the Victoria Island-Ajah-Epe express road should also be named after him in his lifetime. Finally, with universities named after Ambrose Alli, Adekunle Ajasin, Olabisi Onabanjo, who can deny Alhaji Jakande having LASU named after him? Besides, this renaming will show the whole world that Lagos people, being good people themselves appreciate those who contribute to the development and progress of their state. • Nojeem A. Aro, Ojodu Berger, Lagos

THE NATION MONDAY, JUNE 25, 2012

EDITORIAL/OPINION

This battle is not ours

HE signs of the end-time are becoming more discernible in Nigeria. The nation is already burning. Nothing seems to be working - except wicked intrigues that manifest in successive failures with one disaster after the other. As it were, the government in power appears to have no practical solution to stall the terrorist acts of the demonic Boko Haram beyond condemnation of the evil agents and sympathy to the innocent victims. But one thing I’m sure of is that whenever the Almighty God decides to divinely intervene in seemingly thorny and intricate challenge, it might be through the simplest solution. It does not matter when an uncomplicated key to a problem is considered imprudent by man; the end result is bound to be the victory of light over darkness. One bullet might not be needed to be fired, but the war will be won as long as the battle is of the Lord. Notwithstanding the efforts of the security agencies and the Joint Task Force, Boko Haram has established itself as a deadly tool in the hand of the enemy of the nation’s peace and stability. Several arrests have been made, even some of the actors have been killed; yet, the battle appears to be getting hotter. Continually, innocent souls are being wasted, yet there is no visible righteousness to dissuade the culprits. In all of the bombings and attacks on churches, no person has been brought to book. With this, the destructive culture of impunity is being further encouraged. We are being confronted with a big threat to our collective interest as Nigerians in the quest for a united nation capable of making progress for the good of all. The first slip-up that must be settled is the deliberate diversion to perceive the terror being heaped on the society as a religious battle. No religion sanctions the disturbance of the tranquility and harmony of any society. The scriptures preach peace; but man manipulates to gratify self interest. Hence, no true Muslim will back up the evil harassers called Boko Haram. Let it be understood that religion is being used as a camouflage to fight a political battle. The three publicized individuals - Abubakar Shekau, Abubakar Adam Kambar and Khalid al Barnawi are not the sponsors or brains behind Boko Haram; they are mere tools in the hands of some top political shots. The sponsors are using

HE Dana Air flight 9J-992 which crashed on Sunday June 3 will constantly resonate with sad and tearful memories of our cherished ones whose exuding and eventful lives were abruptly terminated by the negligence and insensitivity of an airline, which only value for the sanctity of life, is for as long as it can be exploited and plundered. I have battled in vain to ward off the nightmarish and painful memories of that black and unfortunate Sunday as my mind’s eye repeatedly recall the thick cloud of gloom and trepidation which got us crest fallen, as we wallowed in the uncertainty of who and who may have been involved. Prior to that calamitous tragedy, a galaxy of very distinguished personalities in Abia State had emptied into Nkporo, Ohafia Local Government Area to commemorate the rreception of Sir Ude Okochukwu, Speaker Abia State House of Assembly. Midway into the event, the call of duty prevailed on us to cut short our fun at the Ude Okochukwus as we hurriedly made for Abuja, en route Imo Airport. Scarcely had we settled down to be airlifted than the tragic and devastating news of Dana Air crash tore through our peaceful expectation, leaving us with heavy heart and misty eyes and life I must admit has never been the same hitherto. The weekly lamentations still linger, what a world! The ill-fated Dana Air crash came with other mishaps of un-precedent magnitude viz: the continuous and unfortunate onslaught of Boko-Haram. What could be more traumatizing to live with the glaring reality that in one fell swoop, a promising family of 10 was completely erased from the face of mother earth, largely due to the operational laxity and flair for short cuts of an airline? My heart is heavily weighed down, knowing that our own Nigerian gatekeepers mindlessly collaborate with these investment hunters to bend the rules and institute sub-standard measures no matter how sensitive a sector is structured to be. Granted that the buck stops at the table of the chief executive, like some of us have been rightly and wrongly criticized, but we are constantly oblivious of the truth that the chief executive cannot be omnipresent. Responsibilities must therefore be delegated. The operational transparency of Alaska Airlines and value for human life, principally shut out the air craft from American air space, but corner cutting and profit minded Dana, in liaison with our trusted gate keepers endorsed it fit for our air space. Building a virile society is the responsibility of every Nigerian and we will not make a head way if all hands are not on deck to attain that. Several analyses had critically schooled us on the age difference of most aircrafts flying in Nigeria. But I’m convinced our findings did not accommodate the authentic reality that besides the frightening age difference of these aircrafts, their operational peak periods consumed exhaustive 5-10 flights a day before they were eventually scrapped for some of these mass destructions.

jobless Moslems to fight and commit suicide, with themselves going behind the shield in bid to achieve self-centered political gains. If sincere and people-centered, the huge resources being used to buy arms and ammunition should have been used to feed and maintain their people. Last week, there were reports that the bloody murderers have plans to launch further devastating attacks on churches and government buildings in the coming days and weeks. The sect said it planned to make this season the bloodiest one yet in its violent and criminal operations against those it tag infidels. According to the report, they are planning a focused and bloody attack for which 300 suicide bombers have been recruited, sent to Mauritania and Somalia for training in handling weapons, bomb making and suicide bombing. It is said that they will start with Southern Kaduna and Plateau State, two areas in the north peopled with Christians, in a bid to avenge the death of those who were victims in the reprisal attacks of last week. With previous experiences, the nation can no longer take the threat for granted. For Governor Babangida Aliyu of Niger State, the Chairman of the Northern Governors Forum, the call on the Federal Government to help arrest the situation has been in vain. “It is almost a year now. We seem not to know what to do.” Since it is true that the government is demonstrating inability to protect the lives of innocent Nigerians, there is then urgent need to hand over the nation’s dilemma to the One who can do all things. The head of Methodist Church Nigeria, Dr. Sunday Ola Makinde warned that “if something serious, strategic and meaningful is not done, we may just be working our way towards another avoidable civil war. This is a warning that cannot be ruled out. It has become evident that the government lacks the political will needed to tackle this menace headlong. As long as the strong hands backing the acts of terrorism remain untouchable by man, and the perpetrators and sponsors are not being brought to book, we just must surrender the battle to the Mighty Man of War who is still on His throne awaiting our call in righteousness to arise and fight for us. The solution is not reprisal attack. Two wrongs can never make a right. The people attacked may not be the terrorists. Besides, it might be a way of playing into the hands of the wicked ones who want an all out religious war. There will be a ready excuse to carry on with the terrorism which is also what the politicians want to achieve. Playing into their evil plans will continue to destabilize the nation. If we do the right thing, Boko Haram will go the way it came. After all, we once experienced Maitatsine in the early 80s. Boko Haram emerged as an offshoot of Maitatsine. If that

body could fizzle out, there is nothing impossible with God. We need to pray with sincere heart so as to see the wonders of God. Let’s return to God and focus on Him. The end-time prophecies are already manifesting. To the unbeliever, it may not make sense; but God wants us to pray without ceasing if He must win the battle for us. If we do His will, God will soon arrest the real ring leaders of Boko Haram and use them to propagate His word all over the world just the same way He used Apostle Paul.

Feedback Dear Soji, I read your write-up in The Nation of June 18 on thieves vs. thieves and do so agree. But don’t you think the delay to swoop on Lawan established better than his culpability, since a quick arrest may have offered him the defence that he was planning to turn in the bribe giver? -23458030983553 Thanks so much for your piece of 18 June. In fact, you made my day. Unless we do what Jerry Rawlings did in Ghana, corruption will continue to fester in Nigeria. From Jim Nambeh, Makurdi At last, one of The Nation columnists is making a fair comment on OBJ. The majority of commentators on the Faroukgate saga had called for Otedola’s head for offering bribe. I found such comments unhelpful. If he is persecuted for going to the SSS to report a demand for gratification from such a high profile figure at the National assembly, has he done anything wrong? His action should in no way absolve Zenon from prosecution for participation in the subsidy scam. From Femi, Ibadan. Soji, as it is; I hope you will not stink too if given the opportunity of leading the people. Will you live to be a legend? -Victor Ameh, Makurdi, Benue State. Yours is the fact. Let those indicted by the report be put on trial and the attempted “diversion” be put on trial too. Shikenan! From Godfrey Dewan, Jos Soji, you missed a point where Femi Otedola said he was blackmailed to pay the bribe. No one has asked him who backed him and for what. Can a man who is clean be blackmailed? I believe there are neither audio nor video recordings. Let Femi Otedola and his SSS show it to us. - 2348132561806 Dear Soji, I always appreciate your write up. Do you blame OBJ for calling them armed robbers? The answer is capital NO. What do you expect from election riggers? How many of them in the House won primary elections, not to talk of general elections? How many of them are promise keepers? Both Zenon Oil boss and Lawan should be prosecuted immediately. Nigerians are anxious to know the sincerity of this government to campaign against corruption. From Omowunmi Sam.

A crash too many By T.A. Orji Let me corroborate the patriotic position of Mr. Lawal Ogienagbon who posited in The Nation of Thursday June 7 that “The Dana crash was a disaster waiting to happen because of the failure of the regulatory authorities to do their jobs. They cannot claim to be unaware of the bad state of aircrafts, not only in Dana’s fleet, but also in the fleet of all the airlines in the country today. If these airlines are audited, a lot will be revealed”. The age difference of aircrafts in Russia is 10 years and one wonders why our regulatory agency should not begin to think and act in that direction. The capital-intensive nature of the aviation business demands that investment in that regard should be exclusive. Half measures should not be tolerated in the light of its capacity to convey users in amazing mass capacity. This avoidable incident has aggravated the pains in our land and it is only natural that we vocally upbraid this total lack of restraint and recklessness. The pain is further deepened, hearing that my brother and colleague, Governor Godswill Akpabio intervened in a near fatal situation at Akwa-Ibom Airport by pleading with the management of Dana Air to see to it that same aircraft is repaired. It will be foolhardy convincing us to live with the laxity of ignoring a hydraulic leakage, which was also reported in the same aircraft, and the innocent picture of Dana Air management with that of a staff, who anonymously spoke with Channels Television on the true state of that aircraft and the shabby treatment they are subjected to. Contempt for operational and regulatory frame works have turned some foreign investors into gods and super humans who see desperate Nigerian job seekers as pawns they can joyfully toy with, and fleece to their home country the fortunes of our land. Let us recall that at the twilight of incessant plane crashes, including the EAS airline of 2002, the Bellview airline disaster of 2005, Sosoliso crash of October 2005 and ADC mishap of 2006, Dr. Harold Demuren, an aviation engineer of international clout was deployed to restore confidence in the sector. That gesture paid off, given the wealth of experience, which Dr. Demurem brought to bear on the sector. His transparency tailored reforms made a credible revelation that stunned stakeholders and the global community. In 2010, Nigeria got it right by attaining the American federal Aviation Administration International Aviation Safety Assessment (FAAIASA) for certification of the initial category. Consequently, flights originating from Nigeria can comfortably touch down at United States airports. Demuren’s professional input among others brought far-reaching regard and confidence to the aviation sector and for five years, peace

and sanity reigned in our air ways until the tragic jolting occasioned by the Dana Crash. Apparently, the operational network of Nigerian Civil Aviation Authority (NCAA) must have suffered a relapse somewhere. As earlier on highlighted, every act of omission and commission, terminates on the table of the chief executive else Dr. Demuren will not be in the eye of the storm. I’m in the fraternity of those who still have implicit confidence in his pedigree but let us prayerfully hope that governments’ well intended and up-coming measures will catch up with those who are drawing back the hand of the clock. The generality of my grieving friends and associates, believe that the ill-fated Dana Aircraft may have been flying with only one engine; our submission may be lacking in professional content but our lay understanding seem to agree with the fact that a plane which reported engine failure five nautical miles to touch down, shouldn’t have crashed before the control tower could barely articulate the situation, if not that the spare engine was in its self faulty. Bottled illegalities and flagrant disregard for operational ethics will one day erupt with massive casualties but if we do things right, we will prayerfully believe God to shield us from the anger of weather, nature and pilot error. Our hearts go out to our cherished Abians and other families whose dear ones were victims of the ill-fated Dana Air crash. Our greatest tribute to victims of the Dana crash will be to permanently institute transparency in the aviation sector. • Orji is Governor of Abia State

‘This avoidable incident has aggravated the pains in our land and it is only natural that we vocally upbraid this total lack of restraint and recklessness. The pain is further deepened, hearing that my brother and colleague, Governor Godswill Akpabio intervened in a near fatal situation at Akwa-Ibom Airport by pleading with the management of Dana Air to see to it that same aircraft is repaired’

THE NATION MONDAY, JUNE 25, 2012

EDITORIAL/OPINION

F anyone is still in doubt of the mortal danger recurring suicide bomb attacks on churches pose to the corporate existence of this country, last week’s events in Kaduna state should be sufficient cause for concern. Suicide bombers in their characteristic fashion hit three churches- two in Zaria and one in Kaduna leaving in their wake smashed limbs, broken heads and torn human flesh. Families that had gone to church to communicate with their creator were in one fell swoop, wiped out of the face of the earth for no just cause. Enraged by these unending provocative and senseless killings, Christian youths, in self defense, took to the streets in what has been described as reprisal attacks. Expectedly, such mob actions would take their toll on the lives and property of people, some of them innocent ones who have nothing to do with the suicide bombings. That spontaneous response was a reflection of how bitter the people felt of the killings, desecration and destruction of their places of worship. The development has no doubt, injected a new and very dangerous dimension to the selective suicide bomb attacks on churches which started on Christmas day in Abuja last year. Reactions have come from the Kaduna state government, religious and political leaders urging caution. Most of the reactions have expressed deep worry at the dangerous turn the attacks were assuming especially given the prospects of reprisals precipitating a religious crisis in the country. For Senate President, David Mark, “resorting to vengeance will demean your faith as the Lord has said vengeance is His”. Mark believes that those attacking the churches want to ignite a religious war and threaten the nation’s unity. Speaker of the House of Representatives, Aminu Tambuwal, said attacking innocent people who know nothing about the blasts, in the name of reprisals, will worsen an already complicated situation. What the Kaduna incident has shown is that the patience of those who bear the brunt of these killings and attendant provocation is fast thinning down. And the country may be heading to the abyss if nothing concrete and urgent is done to arrest the dangerous slide. Christians are increasingly getting disenchanted and disappointed with the tardiness, helplessness or hopelessness of the government in protecting their lives and places of worship. And since the first law of

Emeka OMEIHE 08121971199 email: EmekaOmeihe@yahoo.com

Church attacks and reprisals nature is self preservation, they are saying it is suicidal for them to fold their hands while a group of blood-thirsty and wicked people continuously execute a systematic agenda of eliminating them because of their religion. They are saying, enough of this madness and their lives and religion cannot be compromised because of the vaulting ambition of a group of Muslim fanatics or politicians executing a dubious and selfserving agenda. They have come to terms with the reality that Boko Haram is fast becoming a subterfuge for the islamization of the country. Boko Haram has either lost focus of its purported agenda of fighting government or has displaced it with a curious obsession to confront Christians. There have been suggestions that sponsors of these acts of terrorism may have other motivations than religion. Politics is fingered as the real cause. Whatever it is, it has been at the expense of Christians, their lives and places of worship. Feelings of insecurity, frustration and despondency may have combined to unleash the precipitate and spontaneous action that was the reprisal attacks in Kaduna. Mob action no matter the quarters it is coming from must be deprecated. It is flawed by the very fact that in most cases, it is still the innocent ones that bear the brunt. Those who died in the churches on account of the suicide bombs and the victims of the reprisal attacks are people who have nothing to do either with the grievances of Boko Haram or the anger of the mob that went on revenge. So the fears of those lamenting the suicide

OVERNANCE is certainly not a tea party. The case of Bayelsa State is even more challenging considering the rot the administration met on ground. It was a terrible case of gross debasement, wanton abuse and sharp decline in political morality and integrity in public office as personified by the immediate past regime. The direct result was the erosion of public trust and complete destruction of the faith of common people in the political leadership of the state. Upon assumption of office, the Governor Seriake Dickson left no one in doubt that he was ready to match words with action. His message of accountability and transparency in the conduct of government business resonated all across the state. The message further gained momentum with the signing into law the bill on Bayelsa State Income and Expenditure Transparency Bill 2012. Unknown to Governor Dickson, based on this act alone, he warmed his way into the hearts of most Bayelsans; he has by extension succeeded in expanding the frontiers of political leadership in Nigeria. Kudos must therefore be given to the governor for elevating and exhibiting an uncommon reasoning and approach to governance. Even more remarkable is the fact that he had the courage to do what he did. While assenting to the law, the Contriman Governor had this to say: “On transparency, we believe that it is the right of the people of the state to know what funds accrue to the coffers of the state and the various local governments and how they are utilized. This is the only way to secure the trust and confidence of the people in whom sovereignty lies. I have therefore directed all local government chairmen to comply with this paradigm shift on the issue of transparency, probity and accountability, to reflect the new Bayelsa we are building”. Every successive month, Governor Dickson has kept faith with his promise to engage the people of Bayelsa State on the income and expenditure of government in line with the law which makes it obligatory for all tiers of government to publicly declare all revenues that accrue to them as well as a summary of expenditures. In actualizing the restoration agenda, there are two phases to consider. One is ensuring that the ingredients of good governance are firmly in place - formidable institutions, transparency, accountability, popular participation and consensusbuilding. Governor Dickson spent the better part of his first 100 days in office doing just that. Over the course of the first 100 days, we saw and took note of the brilliant reordering of the critical structures of government by the Contriman Governor and how they are expected to function to deliver on the government’s Restoration Agenda. Indeed, the redesigning of the architecture of governance

attacks and the reprisals can be understood. But there is something untidy in the way focus is seemingly being concentrated on this singular reprisal attack rather than its cause. It is a common parlance in medical practice that the most efficacious therapy to an ailment is to attack its cause. Once the cause of an ailment has been identified doctors tell you that the cure is in sight. We are not in any iota of doubt about the cause of the insecurity in the country. That malignant tumor is Boko Haram insurgency. Its rebellion is the greatest threat to our collective existence. It is the cause of the avoidable deaths either from suicide bomb attacks on churches on Sundays or the reprisals it precipitates. Those who spoke are worried at the prospects of the reprisal attacks degenerating into a religious war. They would rather want Christians being killed to refrain from reprisals so that the situation will not slip. This could as well be. But these exhortations could have been easier to accommodate if the government is seen to have demonstrated the capacity to tame the monster. Ironically, that has not happened, thus emboldening the bombers in their regular attacks on Sunday worshippers. The ACF wants the suicide bombers to take advantage of the dialogue proposed by the government. Fine! But on whose behalf will the government be negotiating since the real enemy of the sect is now Christians? What kind of negotiations and agreement will the government enter on behalf of Christians that will stem the attacks on their churches and give vent to the secularity of the country? This is the key puzzle that has

nailed all the insincere talks on engaging the sect constructively. Before now, we have been treated to all manner of excuses for the violence in that part of the country. Poverty was fingered as well as illiteracy. But from the account Boko Haram has given of itself, these are no longer the issues. It is curious how suicide onslaughts on churches could bring about a reduction in the poverty and illiteracy matrix of the north or the role churches played to bring about that pass. In the absence of any correlation between the motivation of the Boko Haram sect; the claims of northern leaders and the unprovoked attacks on churches, we are left with the inevitable conclusion that Boko Haram has lost focus. It is a failed strategy unworthy of any constructive engagement. And since it also had the other agenda of imposing an Islamic state in this country, we can now see where they are coming from. We can now see why they must be resisted. After all, they had threatened Christians and southerners to leave the north even when millions of northerners are Christians with no other place to go. Christian youths who staged the reprisal attacks are northerners. We are inexorably left with two options: fight Boko Haram and subdue it or face a religious war. From the concerns of people, a religious war will be more complex and more devastating to contend with. So we are left with the Boko Haram revolution. It must be decisively confronted to stave off the more dreaded religious war it is bent on levying on this country. That is rational choice; rational calculation.

‘But from the account Boko Haram has given of itself, these are no longer the issues. It is curious how suicide onslaughts on churches could bring about a reduction in the poverty and illiteracy matrix of the north or the role churches played to bring about that pass’

The making of a new Bayelsa By Daniel Iworiso-Markson did prepare the ground for the second phase. In a matter of days, Bayelsa will become a huge construction yard. It is on record that major construction firms such as Julius Berger, Setraco and Chinese Civil Engineering and Construction Company have all received payment advice to the tune of N6.3billion to mobilize to site. The State Executive Council just last week awarded over 62 contracts for major infrastructural projects. The Commissioner for Works and Infrastructure, Barr. Lawrence Erudjakpor, during a post- Executive Council press briefing in Government House Yenagoa, disclosed that most of the contracts awarded are road projects. Central to delivery of the road infrastructure in Bayelsa State is the completion of the three senatorial roads started by President Goodluck Jonathan while he was governor. Erudjakpor also listed the dualisation of some major roads in the state capital, which is meant to open up the state. This is actually a fulfillment of the promise made by the Governor during his campaign in Yenagoa. While campaigning as PDP governorship candidate then, he had said: “In the new Bayelsa we all sought to build, we will build new roads, create new investments and infrastructure and other critical infrastructure and create the enabling environment for improved investments. We must create a new Yenagoa worthy to be called the capital of the state. We will also focus on education and human capacity development”. The focus on education and the development of the human capacity is a major component in the making of the new Bayelsa. Aside from declaring a state of emergency in the educational sub-sector and the declaration of free education from primary up to secondary school level, the Contriman Governor has scored another first by setting aside N1billion Post Graduate Scholarship Fund. This fund is to be made available to all eligible youths of Bayelsa State seeking to pursue post-graduate degrees in any reputable tertiary institutions of their choice anywhere in the world. The fund is available and can be accessed by anyone with proof of having obtained a letter of admission from the university of choice at home and abroad. Given his passion for education, Governor Dickson, times without number, had promised to deliver world-class education for all children of Bayelsa State origin. He believes that it is the right thing to do and that is why just last week the Executive Council approved the building of ultra-modern

model secondary schools in each of the eight local government areas of the state with additional two at Otuoke and Toru-Orua. The model secondary schools, which will be an all-boarding facility, is also said to be free and compulsory. Needless to say, the state needs plenty of money to deliver on its promise but it is also reassuring to note that Governor Dickson came well prepared for the task ahead since this was one of the reasons which informed his decision to launch a stringent regime of fiscal policy as well as the need to institutionalize a savings culture. This ultimately led to the opening of two separate strategic bank accounts. The first is the Bayelsa State Strategic Development Account, which today has a balance of N24.5billion. This account is dedicated to funding strategic investments in infrastructural development, agriculture, tourism, education, health and security. Having built up the reserves of this account to this level, the state is now in a position to award contracts as it has already done in compliance with the Fiscal Responsibility Act, which requires that contractual commitments by government should have adequate funding provided. The second account is the Bayelsa State Strategic Reserve and Savings Account. It is an interest-yielding account dedicated to providing savings for the rainy day. This account will serve as a form of stabilization for the state’s economy in the event of unforeseen shock. Already, there is a law in place, recently passed by the State House of Assembly making it mandatory for the state to make savings in this account and it cannot be accessed by anybody, except for specific purposes and only 2/3rd approval of the State House of Assembly. Governor Dickson holds the view, very strongly too, that with a proper management of the state’s resources, there is no reason why Bayelsa should not emerge as one of the top three states in the federation within the next five to 10 years. It is difficult to fault the ContrimanGovernor. Those who know him closely will tell you he is a man of strong convictions. It goes without saying that most Bayelsans, even the die-hard critics of the Dickson-led administration, will readily admit that he has started well and there is no denying the fact that he is set to drive and deliver to its logical conclusion his vision of a better Bayelsa, one that is fully restored to its lost glory. • Iworiso-Marksonis Senior Special Assistant (Media & Public Affairs) to Bayelsa State Governor.

THE NATION MONDAY, JUNE 25, 2012

Dede back on her feet after

INJURY SCARE

THE NATION MONDAY, JUNE 25, 2012

BUSINESS THE NATION

E-mail:- bussiness@thenationonlineng.net

ISSUES DANA plane crash: The unanswered questions News Briefing

Customs for oil lifting THE Federal Government is set to involve Customs in crude oil lifting by oil majors to get.

- Page 26

Cargo terminals coming THE Federal Government is to unveil a new concept in airport infrastructure provision, called aero-tropolis. It is expected to improve the revenue for the government

- Page 26

.5m e-readers for vehicle insurance

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

- Mrs Omobola Johnson, Minister of Communication Technology

THE CEO ‘Nigerians have not caught the - P. 32 insurance bug’

- P. 27

CAC, investors’ apathy impede banks’ sale of subsidiaries D •CBN extends deadline ELAY in the processing and approval of incentives and concessions for divesting and restructuring have constrained some banks’ ability to meet this month’s deadline set by the Central Bank of Nigeria (CBN). The apex bank had set the deadline for lenders, which chose to concentrate on core banking. Most banks are also still struggling to find investors for their subsidiaries, citing the downturn in the capital market. A top CBN official at the weekend confirmed to The Nation that banks have been granted extension following delays they encountered and

By Taofik Salako

the sluggish market situation. He said amenable tax package for the divesting and restructuring banks was released to banks by the Federal Inland Revenue Service (FIRS) only two weeks ago , while the necessary concessions from the Corporate Affairs Commission (CAC) is still being awaited. He said the banks granted extension of between three and six months are those with real estate subsidiaries

– regarded as “complicated.” Sources close to the divestment processes, however, said most of the banks would not have completed the sale of their subsidiaries within the next two months, especially given the number of subsidiaries involved. The sources said banks have stepped up the search for local and international investors but several talks were still inconclusive. Nevertheless, the sources said economic crisis in several advanced and emerging

economies and the slowdown in the capital market were hampering the sales bids. Under the new banking regulatory regime introduced by the apex bank as part of the ongoing banking reform, banks are required to concentrate on core banking. The new model requires banks to either sell their non-core banking businesses or form a holding company to hold such for them. Five banks including First City Monument Bank (FCMB) Plc, First Bank of Ni-

THE Nigerian Insurers Association (NIA) has begun the deployment of 500,000 ecard readers to security agencies to verify genuine vehicle insurance licences, its Chairman Olusola Ladipo-Ajayi, has said. - Page 39

THE Plateau State government has introduced a dress code for civil servants to guard against “improper and immodest” dressing at work places.

- Page 40 DATA STREAM COMMODITY PRICES Oil -$107/barrel Cocoa -$2,686.35/metric ton Coffee - ¢132.70/pound Cotton - ¢95.17pound Gold -$1,800/troy ounce Rubber -¢159.21pound

NSE JSE NYSE LSE

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

Govt, electricity workers disagree on severance package By Emeka Ugwuanyi

Dress code for Plateau workers

MARKET CAPITALISATIONS

geria (FBN) Plc, Stanbic IBTC Bank Plc, United Bank for Africa (UBA) Plc and Union Bank of Nigeria (UBN) Plc have opted to keep their subsidiaries while others including Access Bank Plc, Diamond Bank Plc, Fidelity Bank Plc, Guaranty Trust Bank (GTB) Plc, Skye Bank Plc, Zenith Bank and Wema Bank, among others are pursuing divestments from nonbanking subsidiaries. Only few banks have been able to complete sales of few subsidiaries. Banks that opted for holding company status are also yet to complete their restructuring.

From left: CEO Africa, GE, Jay W. Ireland; Chairman, Honeywell Group Mr Oba Otudeko and Vice-Chairman, GE, John G Rice, when the GE team paid a visit to Honeywell Group's Lagos office.

Apex bank issues securities lending guidelines

HE Central Bank of Nigeria (CBN) has released guidelines on foreign participation in securities lending in the financial market. The capital market authorities plan to introduce securities lending as part of efforts to deepen the market and provide alternative instruments to investors. The apex bank’s circular addressed to all authorised dealers, custodians, stockbrokers and general public, detailed the processes for issuance of Certificate of Importation (CCI) for securities lending transactions. The apex bank directed all authorised dealers to ensure strict compliance with the provisions of the cir-

By Collins Nweze

cular. According to the circular signed by Director, Trade and Exchange Department, Mr N. T Igba, Certificates of Capital Importation (CCI) would continue to be used in respect of foreign exchange inflow for loans, investments and or capital, subject to existing guidelines as specified in the foreign exchange manual. For securities lending purposes, CCI processes shall be considered under a foreign investor to foreign lender or other specified conditions to abide by approved conditions. According to the guidelines, a local investor can lend to a foreign investor but that requires that the lender shall use

CCI upon importation of capital to purchase securities to be lent. “The foreign borrower shall be issued a CCI upon importation of capital for the purchase of collateral securities. The foreign borrower reserves the discretion to keep the cash collateral in Nigeria in foreign currency. In this situation, no CCI shall be issued for the collateral,” the apex bank stated. Also, at the lending stage, appropriate notes shall be made on the back of the foreign lender or split, should the investment value on the CCI exceed the collateral value. Besides, the foreign borrower shall utilise the foreign lender’s CCI to repatriate proceeds from of sale of the bor-

rowed securities and the foreign lenders CCI shall be marked down accordingly. Equally at maturity, the foreign borrower shall import capital to buyback borrowed securities but no CCI shall be issued. On repayment, the foreign lender’s CCI is expected to be marked up accordingly while the foreign borrower’s CCI earlier transferred to the foreign lender will be returned to him. According to the circular, if the foreign borrower defaults, his collateral shall be disposed of or repossessed by the foreign lender and the foreign borrower’s CCI earlier transferred to foreign lenders shall be utilised to repatriate sale of the collateral.

HE completion of payment of the terminal benefits of workers of the unbundled Power Holding Company of Nigeria (PHCN) slated to end this year may have run into hitch. An official of the electricity workers said the Federal Government reneged on its agreement with the workers, a move which he described as unfortunate. The official said the government wants, for example, a top official of the rested PHCN, who had put in about 20 years in service, to get only N2 million as benefit, an amount which he said is peanut. The official said electricity workers would resist the government’s plan. The Director-General of Bureau of Public Enterprises (BPE) Ms Bolanle Onagoruwa had last year said the Federal Government earmarked N200 billion to settle labour-related issues and disengagement benefits. This was heralded with joy but from what was gathered from the workers, it is like the government has scaled down this budget. When contacted on phone, the Special Assistant to the Minister of Power on Labour and Politics, Nick Agbo, said it was unfair for any staff member of the PHCN to say that the government is reneging on the agreement on severance package. He said the negotiation was still ongoing when The Nation called him. He noted that the two groups only adjourned to condole with the family of Comrade Pascal Bafyau, a former President of Nigeria Labour Congress (NLC) who was interred last Wednesday, after which the meeting continued.

THE NATION MONDAY, JUNE 25, 2012

BUSINESS NEWS Flight Schedule

Interbank rates up on cash shortage

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

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

LAGOS – BENIN Arik 07.30 Associated 08.30 Aero 10.50 Arik 11.45 Associated 13.00 Aero 14.25 Arik 15.30 Associated 16.00

1. 2. 3. 4.

Arik Aero Arik Aero

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

LAGOS – CALABAR 07.30 11.20 12.50 16.00 LAGOS – JOS 10.55 11.15

LAGOS – KADUNA Aero 08.00 Chanchangi 10.00 Arik 10.00 Arik 15.10

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

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

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

08.40 08.40 14.55 15.10 17.40

1. 2. 3. 4.

Arik Aero Arik Aero

LAGOS – WARRI 08.15 11.50 11.55 14.55

09.1 12.50 12.55 15.55

1. 2. 3. 4. 5.

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

08.50 09.45 14.00 15.45 19.55

LAGOS – OWERRI 07.20 14.00 16.30

08.30 15.10 17.40

1. Arik 2. Arik 3. Arik

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

08.00 18.00

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

•From left: General Manager, Retail Banking, Skye Bank, Mrs Arinola Kola-Daisi; Executive Director, Southsouth, Mrs Ibiye Ekong, and Head, Small Business Group, Mr Wole Aderinkomi at a forum for awardees of the YouWin Scheme in Lagos.

Fed Govt to involve Customs in oil lifting T HE Federal Government is set to involve Customs in crude oil lifting by oil majors to get accurate data. Sources at the Ministry of Finance said last week, said the failure of the past administrations to involve Customs in the oil lifting business has resulted in oil majors cheating the country of revenue accruable to the federal purse and the bribery saga rocking the House of Representatives. Senior government officials, sources said, have decried the exclusion of Customs officers from crude oil export terminals and want the government to change the process. The Federal Government, the of-

By Oluwakemi Dauda

ficial said, would soon set up a staff training college for Nigerian Customs, where they can be trained to handle calibration exercise revenues lost through the oil sector. But when contacted the spokesman of the Customs, Mr Wale Adeniyi, said he was not aware of such development and that the service is yet to receive any directive on the matter. Chairman, Solar and Oil Energy, Mr Yinka Oguntulu, urged the Federal Government to put measures in place to uncover and expose those

behind the stealing of Nigerian oil and duping the country. Apart from involving the Customs in oil lifting business, Oguntulu said officers and men of the NCS need to be equipped adequately to enable them carry out their duties efficiently. He stressed the need for the government to provide Customs with helicopters and patrol vehicles. Oguntolu said: “The Nigerian Customs Service(NCS) has just witnessed a major re-organisation. The next issue that should be on the agenda of the of the government is that Service should be handling calibration for the oil companies, importing and clearance process under destination inspection.

Electricity Tariff: OPS seeks concession for members

HE Organised Private Sector has urged the Federal Government to give concession to the real sector under the new electricity tariff regime. In a statement, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, said this was necessary to encourage job creation. He lamented that the real sector contributes less than 10 per cent to the nation’s Gross Domestic Product (GDP), stressing that the cost of energy was one of the major problems stunting the growth of the sector. Commending the government for the concession given to the poor under the new tariff, Muda said the increase of a monthly fixed charge of N500 to over N1,000 is worrisome. “There is no justification for this under the new tariff since the tariff

•

NASSI to launch loans scheme

By Toba Agboola

is now cost reflective. Imposition of fixed charge irrespective of whether there is power supply or not, is exploitative and would encourage inefficiency and should, therefore, be reviewed,” it added. The Chairman, Manufacturers’ Association of Nigeria (MAN), Apapa brach, Mr John Aluya, who supports concession for his colleagues, said there is need for the government to consider manufacturers. He said increasing tariff was wrong because manufacturers have suffered a lot. Meanwhile, the Nigerian Association of Small Scale Industrialists (NASSI) is set to launch a Guarantee scheme of its member firms. Its President,Mr Chuku Wachuku, said the programme is

aimed at filling gaps for members who lack collateral to support their credit proposals to banks. He said the scheme will enable its members to obtain loans from financial institutions without collaterals. He said since it has become difficult for many members of NASSI, who do not have collaterals to obtain loans, the association would assist some of them. He said the support would come after the beneficiary met the requirements set by the Central Bank of Nigeria (CBN). Wachukwu explained that following a meeting of the Southwest Zone, NASSI set up a six-man committee comprising three men from NASSI and the others from the NEXIM Bank to work out ways of actualising the objectives.

Cargo terminals coming

HE Federal Government is to unveil a new concept in airport infrastructure provision, called aero-tropolis. It is expected to improve the revenue for the government. Under the scheme, new cargo terminals would be constructed at the Murtala Muhammed International Airport, Ikeja, Lagos, the Nnamdi Azikiwe International Airport, Abuja and Mallam Aminu Kano International Airport, Kano. The terminal would be funded through private sector investments and a revised concession model expected to enhance efficiency and revenue for the government. The new concept, the Minister of Aviation, Princess Stella Oduah, said is expected to increase passenger traf-

By Kelvin Osa-Okunbor

fic to over 34 million passengers in the next few years, as opposed to the 14.6 million passengers in 2011. Princess Oduah said the model is an airport city with well-planned laid out infrastructure, outlaying corridors and clusters of aviation-linked businesses, with commercial and residential infrastructure. She explained that the model encompasses airports and a range of commercial facilities supporting both aviation-linked businesses and travellers passing through the airports. The minister explained that the concept, which is already in place in the United States and Singapore, if properly harnessed, would catapult the aviation sector as a major foreign exchange earner in Nigeria, adding that the it would provide a new experi-

ence for business clusters in the areas marked out for the airport, which shall include : Free Trade Zone (FTZ), business parks, terminals, cargo village, fixed based operators facilities, technical services and social services. Princess Oduah said each of these clusters will have a chain of several commercial offerings and activities, which would present huge economic and business opportunities through Joint Venture business model. She said the model will lead to the construction of cargo airports, that would assist in addressing the challenges which she listed to include : Lack of adequate storage facilities , processing, transportation and evacuation of perishable farm produce to local and international markets in the agricultural value chain.

NTERBANK lending rates inched higher last week to an average of N15.83 per cent, from 15.66 per cent penultimate week, after a large cash withdrawal by the Nigeria National Petroleum Corporation (NNPC) and a tax remittance by telecoms company MTN drained liquidity from the system, traders said on Friday. NNPC, a major dollar supplier to the interbank market, according to Reuters, sold about $400 million to some lenders last week and recalled its naira proceeds to its account with the Central Bank of Nigeria (CBN), while telecoms giant MTN remitted part of its corporate tax to the government, draining liquidity from the system. “The market was very short this week (last week) because of the large cash outflows from the system and this resulted in the rates spike,” one dealer said. Traders said liquidity was initially boosted by treasury bill repayments on Wednesday, but the market opened short last Friday with a cash deficit of about N76 billion ($468 million) due to the large outflows. The Federal Government also sold N100.62 billion worth in three and six months treasury bills, $750 million at the bi-weekly foreign exchange auction and an unspecified amount of dollars directly to some lenders, sucking cash from the system. The secured Open Buy Back (OBB) was unchanged at 15 per cent, 300 basis points above the central bank’s 12 per cent benchmark rate, and 5 percentage points above the Standing Deposit Facility (SDF) rate. Overnight placement closed at 16.50 per cent, compared with 16 per cent penultimate week, while call money closed at 16 per cent, the same level as last week. “We are expecting the disbursement of May budgetary allocations to government agencies by Tuesday, which will boost the liquidity level and help ease the cost of borrowing in the market,” another dealer said. Traders said rates would not ease significantly next week in spite of the expected budgetary cash inflow because of demand for naira to use at bond, treasury bill and forex auctions.

Dangote Cement widens sales network

HE management of Dangote Cement Plc has increased its sales point network nation-

wide. The company had embarked on an expansion drive, which saw it adding more lines to its cement plants in the federation with the expectation that it would lead to a reduction in the price of the commodity. In a statement, Dangote Cement said it was reviewing its distribution network to ensure the availability of the product by creating wider access for its customers. This, it believes, will also ensure not only the stability of price, but also guarantee availability at the most reasonable price. Group Managing Director, Dangote Cement, Devakumar Edwin, said in Lagos at the weekend that company at the height of skyrocketing price of cement, had acquired 5,000 trucks to boost its logistics and pave the way for even distribution of the product. According to him, having solved the problem of logistics, the next phase is to ensure a wider distribution depot, register more dealers and bring the product closer to the customers.

THE NATION MONDAY, JUNE 25, 2012

ISSUES

•A runway

DANA plane crash: The unanswered questions The June 3 DANA plane crash has reopened the debate on the health of the aviation industry. Do the airlines have what it takes to be in business? Are their planes airworthy? These posers and more are begging for answers, writes KELVIN OSA-OKUNB0R. •STORY ON PAGE 28

THE NATION MONDAY, JUNE 25, 2012

ISSUES

DANA plane crash: The unanswered questions

‘That is a very serious thing because today you have more efficient airplanes that are fully computerised that would give you the optimum level of operation so that you burn the minimum amount of fuel and it has a flight management system that will get you from level A to level B in the most efficient way. These airplanes are there’

HE June 3 DANA plane crash has again brought to the fore several issues surrounding air transportation. Such issues range from airworthiness, age, maintenance costs, adherence to safety rules and regulatory compliance, among others needed to guarantee safety. While investigation into the air crash is ongoing, stakeholders are calling for a holistic overhaul of the industry. Since the crash in which all 153 on board died, airline operators, the public and the government have agreed that everything must be done to avoid a repeat and put the industry on a keel akin to what obtains in developed nations. The Federal Government grounded the operations of DANA Air, citing the ages of the planes in its fleet as part of the reasons for the action. The controversy over ages of aircraft in operation in Nigeria did not start today. It is age-long. Although there are divergent views on the issue, it is generally agreed that aircraft flying the nation’s airspace are far too old and too distant from the safety net, as most of them, according to statistics, are between 20 and 22 years. However, the argument that safety and age of aircraft are interlinked is hotly contested. To the Chairman, Airline Operators of Nigeria (AON), Dr Steve Manhonwu, the banning of DANA Air’s operations because of the age of its aircraft was hasty. He argued that the action could threaten the over N200 billion investment by domestic operators in an industry where the government has allegedly displayed gross insensitivity to the plight of operators. In his view, there is no link between the age of an aircraft and its efficiency so long as the airline sticks religiously to the maintenance schedule, as prescribed in the aircraft manufacturer’s manual. Mahounwu said grounding an airline’s fleet is capable of creating psychological problems for intending air travellers. He insisted that if an airline regularly goes for all the mandatory checks, such as the “C” and “D” checks during which the whole aircraft is overhauled, “it will come back like a new one.” Secretary-General of AON Captain Mohammed Joji said age has nothing to do with the safety of an aircraft. A new aircraft that is not regularly maintained is far more dangerous than an old aircraft that is well maintained, he said. He corroborated Mahounwu, saying the fact that an aircraft is still relatively new is not a factor in determining its airworthiness, “but how regularly all the checks are done.” Director of Flight Operations, DANA Air Captain Oscar Wason, said: “The aircraft involved in the accident, a Boeing MD83 (Registration Number 5N-RAM), was maintained correctly and fully in accordance with the manufacturer’s schedule and directives from the Nigerian Civil Aviation Authority (NCAA). Managing Director of DANA Air Jacky Hathiramani, in a statement, said the airline had its last 400-hourly check (A-Check) on May 30. The statutory annual maintenance (C-Check) was not due until September. The Certificate of Airworthiness issued by the NCCA after its last C-Check was completely valid as at the time of the crash. “We adhere strictly to the maintenance schedule of all our aircraft as prescribed by the manufacturers and the NCAA. Dana Air has a maintenance agreement with MyTechnic, an international, world-class aviation maintenance organisation (MRO), which is located at our Lagos base. It performs and supervises all local maintenance tasks, including the daily servicing and release of our aircraft for operations. Our heavy scheduled maintenance checks (i.e. C-checks) are done by leading MRO companies overseas,” he said. While faulting the grounding of DANA Air following the crash, Joji said there is no correlation between safety and the age of an aircraft, as the decision to retire aircraft is basically economic. “A well-maintained old aircraft is better than a poorly maintained new aircraft. New aircraft are often purchased to add capacity to the existing fleet and not necessarily to immediately replace existing fleet. Imposing a 22- year ban on aircraft is not consistent with the International Civil Aviation Organisation (ICAO) standard and recommended practices. It is one of those draconian policy decisions taken without recourse to the actual industry practice.” Wason said the MD 83 that crashed was 22 years old. This development raises serious questions over the theory of the age of aircraft versus maintenance schedule. While some experts insist that it is cheaper and safer to fly new airplanes, other have stuck to their guns that what is key is adherence to the maintenance schedule of the airline for the aircraft in its fleet. In the last few years, NCAA has encouraged Nigerian carriers to take advantage of the domestication of the Cape Town Convention to use their aircraft as collateral to acquire new airplanes in their fleet renewal strategy. But only a few carriers have new aircraft in their fleet, as others still make use of aircraft that have either been banned in other parts of the world, or phased out by other operators due to high cost of maintenance. The MD-80 and its variant are among the last extant reminders that there once was another American manufacturer,

•Minister of Aviation Mrs Oduah

•Joji

McDonnell Douglas, to compete with Boeing and Airbus for jet orders from airlines. Measured by accident data alone, the MD-80 is considered to be one of the safest planes in the sky. According to Boeing Commercial Airplanes, the plane has a fatal hull loss rate — meaning a crash involving fatalities — of 0.34 per one million departures, and an overall hull-loss, or crash, rate of 0.52 per cent per million departures. By comparison, the average record for all commercial jets is 0.89 fatal hull losses per million departures, and an overall rate of 1.64 hull losses per million departures, Boeing said. It has been a workhorse for a wide variety of airlines, from SwissAir to Austrian Airlines. Nearly 1,200 were built in various configurations between 1980 and 1999, the year when Boeing, which merged with McDonnell-Douglas two years earlier, decided to discontinue its production to focus instead on its own short-range jet, the Boeing 737. During its lifetime, the MD-80 family had some high-profile problems. In 1987, an MD-82 crashed just outside the airport in Detroit Michigan, US, killing 156 people, including two on the ground. The only survivor was a four-year-old girl, who was found strapped onto her seat in the crash debris. The National Transportation Stabilisation Board concluded that the pilot of the plane had incorrectly deployed the plane’s wing flaps, meaning the jet was not in the proper position to fly. A faulty warning system failed to alert the pilot of the problem. In 2003, former Aviation Minister Dr Kema Chikwe set the 22 years age limit for aircraft operating in Nigeria, affirming that age has a lot to do with the performance of any aircraft, irrespective of the sound maintenance structure adopted by the operator. Aside that, she said it was akin to business suicide for airlines to fill its fleet with aged airplanes as the maintenance cost quite high, a development that is made worse by the dwindling economy. Mrs Chikwe argued that old and perfectly maintained airplanes will have to be retired someday and younger ones injected into any airline’s operational fleet. She also argued that the reflexes and general performance of an aged airplane is incomparable to a younger one with modern state-of-the-art facilities. She concluded by saying that what these old airplanes do is limp from

point A to B, thus risking the lives of the flying public. But aviation experts and aircraft engineers tried to convince her to reverse her position to no avail, arguing that an aircraft cannot be said to be old for as long as the operator abides by the maintenance schedule of the manufacturer. They also said operating a young fleet is not a guarantee to safe operation as other parameters must be in place. But Mrs Chikwe did not budge. Her sentiments were understandable. Operating an old aircraft, according to experts, is an expensive venture such that a great percentage of the revenue generated by the airplane is literally ploughed back into maintenance, leaving the operator financially incapacitated. “The maintenance is more regular and as the operator is recovering from one, it is almost due for another and he begins to lament,” a source said. To survive, operators, as alleged in some quarters, look for short cuts. An aeronautical engineer alleged that some of the airlines are still flouting the age ceiling and some maintenance rules, all in a bid to remain in business. At low seasons, airlines fly their aircraft virtually empty and the operator would have spent money on the fuel-guzzling airplane. This submission is also corroborated by the Chairman of IRS Airlines, Alhaji Ishyaku Rabiu. Rabiu said: “The airplane type for the right route is another thing that a lot of airlines are having problems with. The airplane type you deploy to certain routes must match. There are some that are designed for short hauls and there are those for medium hauls and there are those for long hauls. “So, if you take an airplane that is designed to do three or four hours and you are doing 40, 50 minutes, it is not efficient. You burn fuel excessively, you burn time, you burn brakes, you acquire hours and cycles on your airplane, on your engine, on your landing gears and before you know it, you will not have enough revenue to sustain a safe operation and you will have a big problem. Another issue is the age of the airplane being operated in Nigeria. “That is a very serious thing because today you have more efficient airplanes that are fully computerised that would give you the optimum level of operation so that you burn the minimum amount of fuel and it has a flight management system that will get you from level A to level B in the most efficient way. These airplanes are there,” he said Rabiu said such aircraft are expensive and “I think some of us are working hard to continue getting those airplanes and some of us have already gotten them. But I think this is what we need in the aviation environment so that we can save money, and save cost and save time and make our people more efficient in doing the things they do,” he said during a recent briefing. The Chief Executive Officer, Overland Airways, Capt Edward Boyo, in an interview, said airline operators should understand the economics of the business before coming into it. “The right airplane should go to the right route. You can begin small on new routes and as you grow the route, you can introduce bigger aircraft. That is what route management seeks to achieve; which is maximising yield and minimising cost,” he said. The other challenge to operators is the fact that revenue is generated in local currency (naira), but spare parts purchase and maintenance are in foreign currency, and with the weak exchange rate of the naira, the operators appear to be working primarily for the overseas maintenance companies as they cough out so much to do routine maintenance. Regrettably, Nigeria cannot boast of a standard aircraft maintenance facility that can offer cheaper repairs and save the operators the foreign exchange nightmare. Worse still, since old generation aircraft are gradually being phased out, their parts have become scarce and expensive. Domestic and international airlines have come to terms with the fact that offering world-class services at competitive costs, whilst remaining profitable means operating airplanes that will reduce operational costs. More so, with the new discoveries in technology, it costs quite a fortune to install the latest onboard navigational and flight management system equipment found in the next generation airplanes on the cockpit of the classics aircraft. It leaves any carrier with the option of gunning for a new airplane outright. Interestingly, the urgent need to acquire new airplanes has been supported by the recent ratification of the Aircraft Protocol to the Cape Town Convention (or formally the Convention on International Interests in Mobile Equipment). Also, an international Internet-based registry has been established for the filing of interests in aircraft and aircraft engines. Since becoming open for signature in November 2001, the Cape Town Convention has been signed by 32 countries, including Canada, the United States, France, Germany and the United Kingdom. The Convention’s Aircraft Protocol required ratification by eight countries to come into force. It was ratified on March 1, 2006. If you are selling, purchasing, leasing, financing or otherwise acquiring an interest in an aircraft or turbine engine, you need to be aware of the Cape Town Convention. The Cape Town Convention is an international treaty that applies to many twin-engine and most jet aircraft.

THE NATION MONDAY, JUNE 25, 2012

Taxation

Self-Assessment Practice in Nigeria The Constitution of the Federal Republic of Nigeria has provided a leeway for implementation of self tax assessment, in section 24 (f), it was stated as follows:“that it shall be the duty of every citizen to declare his income honestly to appropriate and lawful agencies and pay his tax promptly”

a. Man-hours spent on issuance of assessment notices and associated human activities which culminated in misplacement of files, challenges of whether assessment notices were issued or not , delays in service of notices of assessment have reduced;

The self-assessment tax system was introduced in the Nigerian tax laws in 1991 with operational effect in 1992 and initially restricted to a threshold of taxpayers and extended to the rest in 1998. However it was not until 2011 that its implementation became effective, through a Project based system. The Nigerian self assessment system requires that:-

b. Disputes arising from issuance of inappropriate notices and its associated cost of litigation have reduced;

c. Taxpayers now see themselves as key stakeholders in the determination of their tax liabilities;

The taxpayer accurately calculate his/her tax liability, pay the tax due at designated banks to collect e-ticket and file self-assessment return on or before the statutory(due) date for filing such tax return;

Tax returns are accepted, by the tax authority, as filed, subject to on-the-spot simple checks to ensure that tax return forms are correctly completed. The returns are later subjected to further administrative processing including risk assessment of all tax returns and audit, where necessary, determined by risk-based case selection;

Where the taxpayer fails to meet his obligations, late returns penalty and interest are imposed, as the case may be. The tax authority exercises its right under the law by issuing administrative assessments on taxpayers who fail to file tax returns on due date. Information for such assessments are obtained by an on the spot audit of the taxpayer’s records and from third-party sources. It is noted that ahead of due dates for filing tax returns, taxpayers are reminded about their obligation to file and pay taxes due.

The Tax Authority relies heavily on post-filing controls such as risk-based audits, collection enforcement measures, et cetera to elicit compliance.

The filing and payment requirements of the different tax types are discussed as follows;Taxpayers filing petroleum profits tax returns are expected to do so not later than five months after accounting year-end; In the case of companies income tax, returns are due within six months of accounting year-end; Tax returns for value added tax are due for filing within twenty-one days following the month in which the transaction was made; and

d. Imposition of frivolous best-of-judgment assessments without recourse to taxpayer’s books has reduced tax arrears; e. Tax authority now focuses more on tax returns that will yield optimum revenue.

• ALHAJI KABIR MOHAMMED MASHI, AG. EXECUTIVE CHAIRMAN, FIRS

“The various tax laws which the Tax Authorities operate for various tax types being administered all contained provisions for the Self Assessment Tax System. Hence, all taxpayer segments file their tax returns in line with self-assessment system requirements.” Taxpayer segmentation guide the taxpayers to identify the relevant offices to file their respective tax returns and for the Tax Authority to tailor taxpayer education according to the needs of the specific taxpayer groups. The various tax laws which the Tax Authorities operate for various tax types being administered all contained provisions for the Self Assessment Tax System. Hence, all taxpayer segments file their tax returns in line with self-assessment system requirements. A summary of the legislation guiding the implementation of the self assessment system in Nigeria are summarised as follows:

Tax Administration (Self Assessment) Regulations, 2011

The Federal Inland Revenue Service in its efforts to simplify compliance convenient for them and ease of administration for tax payers, has integrated its tax offices from 2005 and segmented them to date as follows:

Personal Income Tax Act 2011(Sections 41 and 44);

Large taxpayer offices, oil/gas and non-oil); for companies with one billion turnover and above;

The Laws listed above are contained in the Laws of Federation Nigeria (LFN) Revised Edition (Laws of the Federation of Nigeria) Act 2004 Updated to 31 st Day of December 2010.

and Individual and enterprise offices. For; Residents of FCT Armed Forces Nigeria Police Foreign residents

rejection of tax returns and recourse to administrative assessment and imposition of additional tax. The additional tax is imposed on the basis of information derived from taxpayer’s records and third parties;

ii.

Fine or imprisonment or both fine and imprisonment;

iii.

Interest shall be charged for the amount of tax under-declared with effect from the date when the liability became due; and

iv.

Principal Officers of the company stand the risk of being imprisoned as individuals for failure to ensure compliance.

Self assessment implementation has greatly increased collection due to the fact that returns are filed with evidence of payment, while filing of returns has also greatly increased because of enablement given to taxpayers by the tax authority.

Conclussion: Federal Inland Revenue Service (establishment) Act 2007

Company Income Tax Act 2007 (Sections 52 (2)and 53);

Micro and small taxpayers offices; for companies with less than 200 million turnover;

Constitution of the Federal Republic of Nigeria 2011,

Individuals filing personal income tax returns do so on the 31st of March each year.

Medium taxpayer offices; for companies with 200 million to 999million turnover;

There are adequate provisions for sanctions in the extant tax laws to address any form of breach of laws or non compliance with the provisions of the law; particularly false declarations or deliberate attempts to reduce liability to tax under the Self-Assessment System. The sanctions include:

Petroleum Profit Tax Act 2007(Section 30); Value Added Tax Act 2007 (Sections 15 and 16).

The implementation of self-assessment tax system as re-invigorated since 2011 has brought about changes that resulted from a re-designed workflow processes, which gave the taxpayer his full right to assess himself/herself, eliminated the 100per cent examination of tax returns that was hither-to in practice now replaced by risk based case selection for audit. The self assessment Regulations gazetted on December, 2011 has strengthened and clarified existing provision in the tax laws. These efforts have positively impacted on tax administration in the following ways:

The self-assessment system guarantees payment of taxes due on due date in concurrence with filing of tax returns thus ending the era of bogus ‘’best of judgment assessments’’, reduced the accumulation of uncollectable arrears and builds mutual trust/ effective partnership of taxpayers and tax officers.

The use of spot audit and third party information which must be exposed to taxpayer to form basis of administrative assessment reduces disputes and objections to the assessment and increases income generation at reduced cost.

The self-assessment system re-defined processes and introduced new methods like the risk profiling technique for all cases and therefore necessitated the building of new capacities and realignment of personnel to areas of their optimum capability and competence.

The system introduced the risk assessment and risk profiling of all cases and thereby eliminating subjective selection of cases for audit and replaced it with risk based audit case selection, as audit are to be done in line with audit time reporting system in use by the Service.

THE NATION MONDAY, JUNE 25, 2012

MONEY LINK

Cash-less: CBN, service providers in talks on Cloud Wi-fi By Adline Atili

HE Central Bank of Nigeria (CBN) is discussing with service providers to create cloud Wi-Fi hotspot services to facilitate seamless electronic payment (e-payment) services in the country. The initiative, which would be driven by banks, according to the CBN’s Head of Shared Services, Mr Chidi Umeano, would enable customers access e-payment services in areas where the over 60,000 activated Point of Sale (PoS) terminals are clustered. Bringing more cash into the formal financial system of the economy, through electronic payment platforms such as PoS terminals, would be useful in the overall economic planning and

development of the nation, Umeano said. Specifically, by creating a Wi-Fi hotspot in areas of concentration of PoS terminals, he said customers within range of the hotspot get automatic connectivity to the Internet for e-payment transactions. “This means e-payments costs for customers are slashed by at least 30 per cent,” he said. “This is ideal and less expensive because wireless Internet access is more practical and flexible than each user getting separate connectivity in areas such as markets where there are clusters of PoS terminals. “Reduction of payment charges and

Fi cloud idea. He noted that the newly-created CBN consumer protection department will ensure issues relating to transaction failure and customer complaints are promptly resolved. The cash-less policy was introduced, among other things, to meet the Vision 20:2020 requirements, modernise the nation’s payment system, reduce cost of banking services and drive financial inclusion of the un-banked. The objective is to reduce the amount of physical cash in the economy and encourage more electronic-based transactions. Umeano said after extensive implementation of the policy in the country, CBN would review the policy every six months to iron out thorny issues.

seamless integration of the un-banked into mainstream financial services through easy accessibility, affordability and reliability of transactions would drive financial inclusion in the country. “Additionally, as all transactions would pass through the Nigeria InterBank Settlement System (NIBSS) for settlement, transparency would be ensured,” he added. While the telecommunications companies are investing in adequate infrastructure to boost connectivity services and have pledged to make the cash-less policy successful, Umeano disclosed that CBN was preparing a Proof of Concept to demonstrate the soundness of the Wi-

Mainstreet Bank adopts market-driven growth plan

HE Board and Management of Mainstreet Bank Limited have adopted a positional strategy that will place the bank in good stead to meet the needs of its growing customers. The development stemmed from a three-day strategy retreat in Lagos. The Board and Management of the bank in a statement said its vision is “to be the financial institution of choice for value creation and be among the top four banks in Nigeria”. In order to achieve this, the bank said it will start by “creating enduring value for our stakeholders by delivering exceptional financial services”. The lender also defined its stakeholders as its numerous customers, shareholders, staff, the regulatory authorities and the government. The Group Managing Director/ Chief Executive Officer, Faith TuedorMatthews explained that the bank was careful in its statement of intent as its vision looks simple and realistic. According to her, Mainstreet Bank has also mapped out a clear and uncluttered set of core values that would guide its en-

Stories by Collins Nweze

gagement with its diverse stakeholders and facilitate a speedy realisation of the bank’s vision. The Mainstreet Bank boss pointed out that Operational Excellence, Customer Orientation, Integrity, Teamwork and Empathy, which jointly forms the acronym ExCITE, are cardinal principles that will guide the interface between the bank and its stakeholders. ExCITE is as much a guiding principle as it is a business strategy urging its staff to excite its customers and at the same time declaring to the customers that

Fitch upgrades Access Bank’s rating

Mainstreet has come to excite the market.” the statement added. The strategy session also led to the realignment of the bank’s organisation structure to ensure a level of nimbleness and effectiveness that are critical for success in the increasingly competitive financial markets. The business area hitherto known as the Abuja Bank has been expanded to include Niger, Kogi, Kwara, Plateau, Benue and Nasarawa states and subsequently renamed as FCT/North Central Bank comprising Abuja PSG, Abuja 1, Abuja 2, Niger, Kogi/Kwara and Benue Plateau.

ITCH Ratings has upgraded Access Bank Plc’s Long-term Issuer Default Rating (IDR) to ‘B’ from ‘B-’. The ratings upgrade follows the upgrade of Access’s Support Rating to ‘4’ from ‘5’ and the revision of the bank’s Support Rating Floor to ‘B’ from ‘NF’. According to Reuters, the bank’s National Long-term rating was upgraded to ‘A-(nga)’ from ‘BBB(nga)’ and its National Short-term

Liquidity surges to spur demand for debt

BOND auction this week is expected to be well-received due to an expected liquidity boost as the government disburses funds to government agencies. The expected monthly disbursal of funds to government agencies could spur interest in debt at an auction , but yields are seen flat on Treasury

budget allocation is due this week. Traders said investors are already taking positions ahead of next week’s auction because of the expected inflows. They said they expected the yield on the 7-year bond to be in line with what similar tenors are offering on the secondary market.

bills. Nigeria plans to sell N83.91 billion ($515.04 million) worth of 5year, 7-year and 10-year sovereign bonds and 134.57 billion naira in short-dated treasury bills next week. The country disburses funds from oil revenue on a monthly basis, which provides liquidity for banks to finance their operations. May’s

FGN BONDS Amount N

Rate %

M/Date

3-Year 5-Year 5-Year

35m 35m 35m

11.039 12.23 13.19

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

WHOLESALE DUTCH AUCTION SYSTEM Amount Amount Offered ($) Demanded ($) 150m 150m 138m 138m 113m 113m

MANAGED FUNDS

NIDF NESF

Price Loss 2754.67 447.80

7.9-10% 10-11%

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

Amount 30m 46.7m 50m

Rate % 10.96 9.62 12.34

Date 28-04-2011 “ 14-04-2011

GAINERS AS AT 22-6-12 SYMBOL

GTASSURE ETERNA IBTC MANDRID GLAXOSMITH CUTIX CONTINSURE IKEJAHOTEL JAPAULOIL CAPHOTEL

O/PRICE

1.40 3.02 6.05 5.66 21.50 1.32 0.71 1.11 0.68 6.71

C/PRICE

1.47 3.17 6.35 5.94 22.50 1.38 0.74 1.15 0.60 6.94

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

Current Before

C u r r e n t CUV Start After %

147.6000 239.4810 212.4997

149.7100 244.0123 207.9023

150.7100 245.6422 209.2910

-2.11 -2.57 -1.51

149.7450

154.0000

154.3000

-3.04

152.0000

153.0000

155.5000

-2.30

153.0000

154.0000

156.0000

-1.96

C/PRICE 3.80 0.95 24.70 8.98 3.10 7.39 38.31 1.90 1.69 1.52

CHANGE 0.20 0.05 1.30 0.47 0.16 0.38 1.95 0.09 0.08 0.07

DISCOUNT WINDOW Feb. ’11

July ’11

Dec ’11

MPR

6.50%

12%

Standing Lending Rate ,, Deposit Rate ,, Liquidity Ratio Cash Return Rate Inflation Rate

8.50% 4.50% 25.00% 1.00% 12.10%

8.50% 4.50% 25.00% 2.00% 12.10%

9.50% 5.50% 30.00% 2.00% 12.6%

NIBOR Tenor 7 Days 30 Days 60 Days 150 Days

NSE CAP Index

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

Date 29-2-12 27-2-12 22-2-12

Rate (Previous) 4 Mar, 2012 9.0417 9.6667 11.2917 12.1250

Rate (Currency) 6, Mar, 2012 10.17% 11.46% 11.96% 12.54%

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

% Change -1.44% -1.44%

MEMORANDUM QUOTATIONS Name

LOSERS AS AT 22-6-12

SYMBOL O/PRICE UBN 4.00 LIVESTOCK 1.00 ARBICO 26.00 BERGER 9.45 AVONCROWN 3.26 MORISON 7.77 7UP 40.26 BAGCO 1.99 JOSEBREW 1.77 PAINTCOM 1.59

Exchange Rate (N) 155.8 155.8 155.7

CAPITAL MARKET INDEX Year Start Offer

CHANGE

0.07 0.15 0.30 0.28 1.00 0.06 0.03 0.04 0.02 0.23

Amount Sold ($) 150m 138m 113m

EXHANGE RATE 6-03-12 Currency

INTERBANK RATES OBB Rate Call Rate

rating to ‘F2(nga)’ from ‘F3(nga)’. The ratings upgrades reflect Fitch’s view of an increased likelihood of support for Access from the Nigerian authorities if needed. This is driven by the bank’s perceived increased systemic importance and enhanced franchise following its absorption of the acquired rescued bank, Intercontinental Bank Plc. The combined entity, which was consolidated at end-2011, controls about 8.5 per cent of system assets. Access was established in 1989 and provides banking services through a network of 310 branches and 1,600 Automated Teller Machies (ATMs) nationwide. The bank has a commercial banking licence with international authorisation. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

DATA BANK

Tenor

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

•CBN Governor, Sanusi Lamido

Offer Price

Bid Price

ARM AGGRESSIVE 9.17 KAKAWA GUARANTEED 1.00 STANBIC IBTC GUARANTE 124.76 AFRINVEST W.A. EQUITY FUND 101.42 THE LOTUS CAPITAL HALAL 0.74 BGL SAPPHIRE FUND 1.09 BGL NUBIAN FUND 0.95 NIGERIA INTERNATIONAL DEB. 1,731.88 PARAMOUNT EQUITY FUND 8.95 CONTINENTAL UNIT TRUST 1.39 CENTRE-POINT UNIT TRUST 1.87 STANBIC IBTC NIG EQUITY 7,462.44 THE DISCOVERY FUND 193.00 FIDELITY NIGFUND 1.67 • ARM AGGRESSIVE • KAKAWA GUARANTEED • STANBIC IBTC GUARANTE • AFRINVEST W.A. EQUITY FUND

9.08 1.00 124.65 100.57 0.72 1.09 0.93 1,722.27 8.51 1.33 1.80 7,265.15 191.08 1.62

Movement

OPEN BUY BACK

Bank P/Court

Previous 04 July, 2011

Current 07, Aug, 2011

8.5000 8.0833

Movement

THE NATION MONDAY, JUNE 25, 2012

MONEY MARKET REPORT

Naira weakens on oil imports, reserve depletion T HE naira is heading for alltime low. This is dictated by two factors: increasing oil imports at a time of low prices and depletion of foreign reserves as the Central Bank of Nigeria (CBN) tries to defend the local currency. On June 20, the reserve, which stood at $37.1 billion, lost $52 million, the previous day, and is projected to further reduce to $29 billion by December. The volatility in the foreign exchange market is likely to persist this week with the naira coming under further pressure as fresh dollar shortage hits the market. Analysts predict that in the coming months, the naira may fall to N170 against the dollar in the parallel market. Traders said the naira fell on Thursday to N162.70 against the dollar on the interbank market weaker than the previous day’s close of N162.40. The Nigeria National Petroleum Corporation (NNPC) sold about $400 million to some lenders on Tuesday. That provided support for the naira and boosted its value to about 160 to the dollar intraday before it closed at the 161 level. Dealers said strong demand for the greenback was unmatched by the NNPC dollars, which has since been purchased up by importers and banks. “We should expect further depreciation of the naira in the days ahead if we don’t see substantial dollar inflow, unless the apex bank resumes its intervention in the market,” one dealer said. The Managing Financial Derivatives Company (FDC) Limited, Bismark Rewane, had explained that the naira in May, depreciated against the dollar by 3.15 per cent. Analysts said the naira could decline to fresh lows against the dollar this week on unmet demand for the greenback by local oil importers unless the CBN intervenes significantly, traders said. The naira has fallen in recent weeks, despite central bank interventions to prop it up, driven initially by dollar demand from fuel importers. Dealers say consistent central bank intervention in the interbank market was necessary to keep the naira in check from crossing the 164 naira to the dollar mark.

Treasury Bills Nigeria plans to raise N841.56 billion ($5.20 billion) worth in treasury bills ranging from three months to one year in the third quarter of the year, the CBN has said. The bank said it would auction N235.19 billion worth in 91-, 182- and 364-day paper in the last two weeks of June; N250.44 billion worth in July, and N212.70 billion in August and another N142.97 billion worth of the same tenor in first week of September.

Inflation Consumer inflation eased slightly to 12.7 per cent year-on-year in May, from 12.9 per cent in April, the National Bureau of Statistics (NBS) said. Food inflation rose sharply to 12.9 per cent year-on-year in May, from 11.2 per cent the previous month, according to the statistics body. Core inflation, which excludes volatile agricultural produce, rose to 14.9 per cent in May, from 14.7 per cent in April.

CBN Autonomy The CBN said its role of formulating and implementing monetary policy decisions can only be handled by those with technical know-how. Speaking at the a conference on CBN autonomy in Lagos, former Director of Research and Statistics, Dr. Joseph Nnanna said entrusting these critical roles into the hands of politicians or people not experienced in

•Naira notes By Collins Nweze

maintaining and sustaining price stability will constitute a setback for the economy.

Trade

Nigeria and Singapore’s bilateral trade rose by 25 per cent to $481.5 million, with exports from Nigeria accounting for 83 per cent of the total trade value. Primary exports include refined petroleum products, heating and cooling equipment, and ship and boat parts, with Singapore’s main imports being base metal ores, followed by oil seeds and telecommunications equipment. Standard Chartered Bank, which gave the statistics in a statement, said it will be hosting representatives from 15 Singapore companies in Nigeria.

•Official reserves ($ billion)

Customer Complaints The Chartered Institute of Bankers of Nigeria (CIBN) last week said it was addressing various issues, which pitch banks against their customers. The institute said in a statement that it is organising workshops on Complaints Management in three major cities of the country. The event tagged “Complaints management in the Nigerian banking industry” has been organised in Ibadan and Owerri and is also scheduled for Abuja.

Taxation The Federal Inland Revenue Service (FIRS) is discussing with the West African Union of Tax Institutes (WAUTI) on how to ensure that taxation is given a prime position in Africa. Both bodies had during a visit by WAUTI to FIRS agreed to work together to enhance improved tax education and awareness in the continent. WAUTI has also enlisted the support of critical stakeholders and programmes to ensuring taxation is given a principal place in the region of West Africa.

Economy Analyst at Standard Chartered has said that size of Nigerian banks is not necessarily important in resolving the country’s economic challenges. Regional Head of Research, Standard Chartered Bank, Razia Khan, who disclosed this in an Economic Report on African Economies, said what is needed to boost

•FGN domestic debt by holder, Dec 2011 (% share) Sources: Debt Management Office (DMO), FBN Capital Research

the economy is well structured banks that have areas of focus and finance projects in such sectors. She said there are still possibilities for more banking consolidation to take place, but it is naïve to replace bigger banks with better, but the key thing is for Nigeria to recognise these key players in the economy and grant them credit.

Offshore expansion The CBN policy stopping banks from deploying capital from Nigeria to recapitalise offshore subsidiaries, will affect banks expansion drive, Renaissance Capital (RenCap), an investment and research firm has said. The apex bank had in May said will not permit any further capital to be deployed from parent banks to strengthen or

recapitalise their foreign subsidiaries. The directive also bars Nigerian banks from guaranteeing the deposits of their foreign subsidiaries. Besides, it requires banks with foreign subsidiaries to submit plans to ensure that their subsidiaries are fully capitalised in line with Basel II and III accords.

Bank to bank report FirstBank of Nigeria Plc and Nigerian Association of Small Scale Industrialists (NASSI) signed a Memorandum of Understanding (MoU) that would enable the bank give loans to Small and Medium Scale Enterprises (SMEs) at single digit rate. Managing Director, FirstBank Plc, Bisi Onasanya said the MoU was in

furtherance of the bank’s support for SMEs and was meant to promote the growth and development of the sector in the country. Skye Bank of Nigeria said it assisted awardees of the Youth Enterprise With Innovation in Nigeria (YouWin) scheme in organising a customer engagement and enlightenment forum for them. A statement from the bank said the exercise would help develop the entrepreneurial and managerial skills of the beneficiaries. Mainstreet Bank Limited has drawn a blueprint detailing its plans to control a larger pie of businesses in the Nigerian banking sector. The board of directors of the bank said it was committed to becoming a market leader, validating shareholders’ confidence and retaining customers’ loyalty in the country.

THE NATION MONDAY, JUNE 25, 2012

THE CEO

‘Nigerians have not caught the insurance bug’

• Mrs Ifaturoti

Of Nigeria’s over 168 million population, less than two million have life insurance policies. This is a source of worry for insurers. Former President, Chartered Insurance Institute of Nigeria (CIIN) and Managing Director, CrystaLife Assurance Plc, Mrs Oluseyi Ifaturoti, in this interview with CHUKS UDO OKONTA, speaks on operators’ efforts to reverse the trend. HAT is the percentage of Nigerians with life insurance cover? The percentage is still not encouraging. Though the pension scheme for workers has helped increase the number, it is still far below expectation. I think the penetration is about one per cent. The level of penetration is still very low. If you take the civil servants

with individual life, the percentage should be less than two million. I think there are yet more untapped opportunities for life operators. With continuous education and improvement in the economy, more people would embrace insurance which remains the best way to mitigate risks. What other investment channels are life operators investing in?

One aspect of our business is investment of funds we need to invest our funds, so that at the time of claims we will have money to pay. Of course, we have been faced with issues of the capital market which has been bearish in the last five years. A lot of organisations have lost money and everybody is wary of going in there. So, the area of interest these days are bonds,

government treasury bills, corporate bonds, money market and real estate. Investment in real estate is good because land is a fixed sector, which does not depreciate. How has the last recapitalisation impacted on the industry’s operations? • Continued on page 33

THE NATION MONDAY, JUNE 25, 2012

THE CEO •Continued from page 32

The 2007 recapitalisation has enhanced the industry’s capital inflow and made it bigger. Today, we have capital in excess of N3 billion as an underwriting firm and that has put us in a position to attract value adding shareholders, who have added a lot of value to us through their experiences. Many of them have financial sector background and experience in investment, which has helped us a great deal. The enhanced capital base has also put us in a position to compete with others for large risks in the oil and gas sector where if you do not have a minimum capital network of N3 billion, you would not be considered. So, that has helped us to vie for business in the oil and gas sector. It has also helped us to underwrite government risks. The exercise has has given the industry visibility and it has expanded in terms of branch network, staff strength, technology and human capital development. It has offered our human capital a lot of exposure. With inadequate capital, it would have been difficult for us to achieve these feats. The enhanced capital has greatly put us in a position to deliver our promises, research more into the needs of the insuring public to be able to meet their taste in terms of life insurance. What are operators doing to improve their premium income in line with the industry’s N1 trillion target? As an operator, we have continued to innovate with the aim of attaining at least one million lives in the individual portfolio, and we have come up with various products, which we keep refining to ensure that we get it right with the public. Nigeria as a country is yet to cultivate insurance culture, so we have been using every avenue to create awareness; to educate the public that life assurance is needed more in the time of adversity. This is because the time of adversity is when the issue of brothers’ keeper cannot even hold. At the time of adversity insurance comes handy, helping the insured to recover his or her losses. Through our agency department, which is targeted at individual business and the retail unit which focuses on ways of getting people from different fields of endeavours, we have been working hard to ensure that people mitigate risks through insurance. What are operators doing to enhance insurance penetration? Operators are on their toes to create awareness and develop products. We have a basket of products ranging from education, health, pilgrimage policy, mortgage policies, credit life and more. They are designed to improve lives and enhance our operations. We believe that addressing the needs of people would enable us to draw them to embrace our business. We have been trying to talk to people and engage in pool marketing, which we believe that sooner than later, we should be able to attain the desired level of penetration. It is our key objective to deepen the penetration of individual life business. We have given ourselves targets on how to achieve our set objectives. It is my belief that life insurance would be appreciated just as the telecommunications, which many people in the past did not believe would be embraced by the number we have today. We would continue to educate the public on the need for insurance. As soon as people begin to embrace it, it would have multiplier effects. What is your take on terrorism risks? We are looking at it really. But terrorism is a standard exclusion from most insurance policies. Usually, it becomes selective when an environment is prone to it. It is just like somebody has been diagnosed of cancer, he then goes and takes life insurance. It would have been better if he had taken the life insurance and if the cancer comes up then he would have a cover, which his insurers would help him cater for by paying his entitlement. I believe Nigerians should have cultivated the habit for life insurance before the advent of terrorism. We are looking at terrorism and thinking of what can be done about it as regard product developments. Are life operators keying into the cash-less policy? I think the policy is very good. It will reduce the carrying of cash. We have toed that line before now; we do not transact our business with much physical cash. We have always advised our policy holders to pay cheques into our account as much as possible. In line with the policy we are also thinking of using Point of Sales (PoS). We have ensured that most of our claims payments are made through cheques. What was Crystalife’s claims pay out last

‘Nigerians have not caught the insurance bug’

• Mrs Ifaturoti

‘Nothing can give rest of mind than that you are sure you will never suffer hunger or lack medical attention till you die. We are not saying that there may not be support from children or family members, but we are emphasising that it is better you do not rely on anyone for your survival because it can be very frustrating’

• Mrs Ifaturoti

year? We paid about N1 billion claims. The claims experience has been huge, particularly with the big scheme of the government. In the first quarter of this year, we have paid

close to N400 million. What is the company’s position on International Financial Reporting Standard (IFRS)? We have finalised our conversion from the

old reporting standard to the international financial reporting standard. We have also concluded our accounts in local gap and are about to send it to the National Insurance Commission (NAICOM) What are operators doing about outstanding premium? What happens is that at the end of the year companies always state their outstanding premiums. But some of those outstanding are paid in the first quarter of the next year. At Crystalife, we have a debt management department that goes all out to collect the outstanding. There is NAICOM guideline on how to treat outstanding and we do treat ours accordingly. If the money comes in, we take it back, for we have to provide for unpaid money in line with the guidelines. What are operators doing about annuity business? The annuity market is yet to be tapped, and we are making frantic efforts to penetrate into it. We have been looking for opportunities to meet with prospective clients in that area. Nothing can give rest of mind than if you are sure you will never suffer hunger or lack medical attention till you die. We are not saying that there may not be support from children or family members, but we are emphasising that it is better you do not rely on anyone for your survival because it can be very frustrating. How innovative are your products? We have an array of products. Secured investment policy is an investment-linked policy designed after careful research into the insurance and financial needs of an average Nigerian. Contribution payable on the policy accrues with guaranteed interest rate (much higher than that obtainable on the regular savings account to build up to the capital sum at maturity. There is additional N100,000 sum assured payable to the beneficiary if the investor dies as a result of accident. A guaranteed minimum life assurance cover of the total contributions is provided throughout the duration of the policy and because of its investment nature. It is ideal for individuals both for short and long-term investment planning of an individual. Experience has shown that a lot of parents/ guardians, rather than being happy when their children/wards are returning to school at the end of each holiday, usually develop cold shoulders. They get irritable at the slightest opportunity because the time has come to part with a lot of money as school fees. Our research from the insuring public reveals that parents/guardians wish they had some form of insurance scheme in place to cushion the burden of school fees payment. CrystaLife Educateasy is dedicated towards giving quality education, which is the principal desire of all parents. The product is targeted at easing financial pressure of sponsorship of children’s/ wards’ education on parent and ensuring continuity of children’s/wards’ education, in case there is an occurrence of the unexpected. Expectant Father’s Delight is a life assurance protection policy designed to cover the duration of the pregnancy and the three months after delivery, laced with some medical benefits, which may arise from unexpected complications/emergencies following from the pregnancy or child delivery. Across the world, insurers have been skeptical about insuring women if they are pregnant at the inception of the policy. They are usually deferred for the period of the pregnancy or decline out-rightly at a time they need the protection more. Thus, it will be a delight to the husband who had only made provision for normal delivery and has not anticipated additional cost that can be up to N100,000 due to the unexpected complication, to know such a policy is available. As a life operator, what are your challenges? The challenges are not different from that faced by other underwriters. We have the issue of acceptability of life insurance. Yes, we do a lot in the area of corporate and group business, but the individual business line penetration is still very low. The retail area of the business is a challenge, but we are not resting on our oars. We are putting everything in place and coming up with various innovations, which we believe that soon, the reward would come. We are attaching our products to tangible things that would be meaningful to people. We have realised that Nigerians identify more with education policies and secure investment schemes and our products are designed to meet their needs.

THE NATION MONDAY, JUNE 25, 2012

EQUITIES NIGERIAN STOCK EXCHANGE DAILY SUMMARY AS AT 22-6-12

Inflation outlook dampens equities’ return

ORRIES that double-digit inflation rate might turn modest positive return at the equity market into negative return might tempt investors to lock more funds into securities with better prospects for positive real return. Market analysts at the weekend said in spite of marginal decline in inflation rate from 12.9 per cent in April to 12.7 per cent in May, concerns that doubledigit inflation rate may persist through the year have been moderating investors’ appetite for equities. Average year-to-date return at the Nigerian equity market opens today at 3.20 per cent, representing 9.5 percentage points below the current inflation rate of 12.7 per cent. Average inflation rate for the first five months of 2012 stands at 12.44per cent, with a low and high range of 11.9 per cent and 12.9 per cent. Analysts at FSDH Securities said they expected inflation rate in 2012 to remain

By Taofik Salako and Tonia Osundolire

in double digit, principally on account of base effect. “In the short term, the outlook for inflation rate will be influenced by the increase in import duty on rice and the hike in electricity tariff,” FSDH stated in a weekend note to investors. Capital market analysts said inflation rate would narrow real return on investments and could worsen the flight from equities, which have wriggled mostly under an unyielding downtrend. Analysts said investors might be tempted to hold short-term securities that hold better prospects for above-inflation yield. Analysts said they expected the inflation to move beyond its current high, with all indices pointing at the unreliability of the singledigit inflation target. Meanwhile, the Nigerian

stock market last week recorded average gain of 0.99 per cent as highly capitalised stocks rallied against the streak of losses that had coloured the market in recent weeks. The benchmark index at the Nigerian Stock Exchange, the All Share Index (ASI) closed the week at 21,394.77 points as against its opening index of 21,184.54 points. Aggregate market capitalisation of equities also trended upward from N6.76 trillion to N6.83 trillion, benefitting partly from a new listing during the week. With 33 advancers to 37 decliners, highly capitalised stocks were major drivers of the market outlook. Nigerian Breweries Plc led on the gainers’ table with addition of N4 per share while PZ Cussons Nigeria Plc placed second with a gain of N2.38 per share. Guinness Nigeria Plc topped the losers’ list with a loss of N7.08 per share. Seven-UP Bottling Company Plc followed with a loss of N3.69 per share. Total turnover stood at 930.68 million shares worth N6.33 billion in 17,744 deals with banking sub-sector accounting for 493.17 million shares worth N3.64 billion in 9,880 deals.

NIGERIAN STOCK EXCHANGE DAILY SUMMARY AS AT 22-6-12

THE NATION MONDAY, JUNE 25, 2012

EQUITIES WATCH

Email: taofad2000@yahoo.co.uk

With a year-to-date return of about 79 per cent, Presco Plc ranks within the top bracket of the best-return stocks this year. As the agricultural stock triples profitability, share price continues to respond positively, putting Presco at its all-time-best pricing range. TAOFIK SALAKO underlines the variables driving the agricultural stock

What reconsideration for Presco? I

NVESTORS in Presco Plc have earned about N7 billion in capital gains so far this year, indicating a whopping 78.8 per cent year-to-date for the agricultural stock. With overall market’s year-to-date return of 3.20 per cent, equities’ return generally still trails returns by several fixed-income instruments, which could weigh in on equities’ pricing after the earnings’ season rally. Inflation rate currently stands at 12.7 per cent while monetary policy rate (MPR) and monthly average lending rate stand at 12 per cent and 16.9 per cent respectively, implying negative returns for several stocks milling around average market return. But for investors in Presco, adjusted real return on investment still stands around 50 per cent. Besides, while the Nigerian stock market posted a negative return of 16.31 per cent in 2011, implying a loss of about N1.4 trillion, Presco posted a positive return of about 27 per cent. Aggregate market capitalisation of all quoted equities had slumped to N6.533 trillion at the end of last trading session for 2011 as against the year’s opening value of N7.914 trillion. The benchmark index, the All Share Index (ASI), which serves as the common gauge for all quoted companies as well as country index for Nigeria, fell to 20,730.63 points from its 2011’s value-on-board of 24,770.52 points. However, Presco Plc sustained a rally that saw its share price closing at its highest level in 2011 with a capital gain of N1.82 billion for shareholders of the company. So far this year, Presco has consistently outperformed the overall market and currently carries one of the highest returns in the market. Presco has nearly tripled its 2011’s full-year return within the first half of this year. Presco opens today at N15.50 per share as against its year’s opening price of N8.67 per share. Pricing the fundamentals Audited and interim reports of Presco have showed significant increases in sales and profit. Presco’s secondary market pricing appears to be directly linked to the company’s fundamentals. First quarter report for the period ended March 31, 2012 showed total turnover of N2.21 billion in 2012 as against N1.50 billion in comparable quarter of 2011. Profit before tax jumped by 207 per cent from N731.2 million to N2.24 billion.

•MD Presco Plc, Mr Uday Pilani

Profit after tax also rose by 187 per cent to N1.63 billion compared with N567.54 million. With this, earnings per share within the first three months stood at N1.63 as against about 57 kobo in corresponding period of 2011. The first quarter performance already placed Presco in good stead to surpass its much-applauded cash dividend for the 2011 business year. The 2012 first quarter performance replayed the 2011 full year performance. The board of Presco had recommended distribution of N1 billion, representing a dividend per share of N1, as cash dividends to shareholders for the 2011 business year. This translated 100 per cent increase on 50 kobo per share paid for the 2010 business year. The increase in cash payouts reflected significant improvement in the profitabil-

ity of the company, which witnessed about 94 per cent increase in pre-tax profit in 2011. Presco’s turnover and net earnings rose by 58.5 per cent and 54.8 per cent respectively. Audited report and accounts of Presco for the year ended December 31, 2011 showed to a turnover of N8.54 billion as against N5.39 billion in 2010. Profit before tax rose from N1.33 billion to N2.58 billion. Profit after tax also increased from N1.1 billion to N1.7 billion. With these, net earnings per share increased from N1.10 in 2010 to N1.69. Shareholders’ funds increased from N3.52 billion to N4.69 billion in 2011. In 2010, the company had also witnessed impressive growths in key fundamentals. With 35 per cent growth in sales and 357 per cent increase in profit after tax for the 2010 business year, Presco had

‘Most investment pundits believe Presco, and other well-positioned agricultural stocks, could leverage on government’s focus on agriculture and domestic capacity building to improve returns. Already, incentives aimed at encouraging farmers included low-interest intervention funds and reduced tax and tariffs’

increased cash payouts in 2011 by 150 per cent. Key underlining fundamentals of the agricultural company showed a robust outlook. Profit before tax margin increased from 8.4 per cent in 2009 to about 25 per cent in 2010. Return on equity rose from 9.1 per cent to 31 per cent while return on total assets increased from 4.5 per cent to 18 per cent. Total sales leapt from N4 billion to N5.4 billion. Profit before tax jumped by 295 per cent from N338 million in 2009 to N1.33 billion for the 2010 business year while profit after tax grew by 357 per cent from N239 million to about N1.1 billion. With net earnings per share rising from 24 kobo to N1.10, the company increased gross dividend from N200 million to N500 million, indicating a dividend per share of 50 kobo for 2010 as against 20 kobo for 2009. Even with the 150 per cent increase in dividend, returns were better at 2.2 times in 2010 as against 1.2 times in 2009. Net assets per share also improved from N2.62 to N3.52. Most investment pundits believe Presco, and other well-positioned agricultural stocks, could leverage on government’s focus on agriculture and domestic capacity building to improve returns. Already, incentives aimed at encouraging farmers included low-interest intervention funds and reduced tax and tariffs. These incentives fit into Presco’s longterm growth plan, a synchronisation that encourages investors’ optimism about future returns.

THE NATION MONDAY, JUNE 25, 2012

DUE DILIGENCE

GSK Nigeria: Improved earnings G

LAXOSmithKline Consumer Nigeria (GSK) Plc improved sales and profit last year, putting the company in a steady position to sustain threedigit cash payouts to shareholders while building up reserves. Audited report and accounts of GlaxoSmithKline Consumer Nigeria for the year ended December 31, 2011 indicated that turnover grew by about 28 per cent while profits before and after tax rose by 19 per cent and 16 per cent respectively. With 34 kobo increase in earnings per share, the decision to retain a dividend payout per share of N1.20 improved the future dividend substantially of the company as dividend cover improved from 1.73 times to 2.01 times. GSK Nigeria’s debt-free balance sheet and relatively better working capital supported the largely steady performance of the profit and loss accounts. However, rising costs-indicated by 33 per cent increase in cost of sales and 21 per cent increase in operating expenses, coloured the underlying performance of the healthcare company, reducing margins relative returns on resources.

Financing structure GSK Nigeria’s shareholders’ funds improved by 14.7 per cent to N9.0 billion in 2011 compared with N7.85 billion in 2010. Paid up share capital meanwhile, remained unchanged at N478 million, consisting of 956 million ordinary shares of 50 kobo each. Total assets rose by about 26 per cent from N14.25 billion to N17.94 billion. Current assets grew by 45 per cent to N10.68 billion in 2011 compared with N7.37 billion in 2010. Meanwhile, total liabilities increased by 39.5 per cent from N6.42 billion to N8.93 billion. Current liabilities rose by 46.3 per cent from N5.14 billion to N7.52 billion. The underlying financing structure of the company remained steady with a zero gearing ratio. However, the proportion of eq-

By Taofik Salako

uity funds to total assets dropped marginally from 55 per cent to 50 per cent. Current liabilities amounted to 41.9 per cent of total balance sheet size in 2011 as against 8.9 per cent in 2010. Longterm liabilities/total assets ratio stood at 7.9 per cent in 2011 as against 8.9 per cent in 2010.

Efficiency The company witnessed marginal decline in productivity and cost efficiency as rising costs shaved off points from the margins. With increase in costs outpacing turnover growth, total costs of business inched up to 84 per cent of total sales as against 83 per cent in 2010.

Profitability GSK Nigeria’s turnover rose by 28 per cent to N21.53 billion in 2011 as against N16.86 billion in 2010. Cost of sales however, jumped by 33 per cent to N12.54 billion compared with N9.42 billion. Consequently, gross profit stood at N8.99 billion in contrast with N7.44 billion in 2010, representing an increase of 21 per cent. Operating expenses also grew by 21 per cent from N4.54 billion to N5.51 billion. Non-core business incomes dropped by 33 per cent from N30 million to N20 million while interest charges leapt from N0.7 million to N1.79 million. With these, profit before tax ended with an increase of 19 per cent to N3.50 billion as against N2.94 billion in 2010. After taxes, net earnings stood at N2.30 billion as against N1.98 billion, indicating an increase of 16 per cent. On share by share basis, net earnings per share improved from N2.07 to N2.41. The company decided to pay out about 50 per cent of net earnings totaling N1.15 billion as cash dividends to shareholders. The same gross amount, which was paid for previous year, amounted to 58.1 per cent of net earnings in 2010. With a dividend

Fiscal Year Ended December 31 Nmillion Profit and Loss Statement Main Business Segment Total turnover Cost of sales Gross profit Operating expenses Interest and other incomes Finance expenses Pre-tax profit(loss) Post-tax profit (loss) Basic earnings per share(kobo) Gross dividend Cash dividend per share (kobo) Net Assets per share (kobo) Balance Sheet Assets: Fixed assets Total long term assets Trade debtors Current assets Total assets Liabilities: Trade creditors Bank loans Current liabilities Long-term liabilities Total liabilities Equity Funds Share capital Total Equity Funds

per share of N1.20 per share for the past two years, sustainable dividend outlook improved in 2011 with a dividend cover of 2.01 times as against 1.73 times in 2010. Net assets per share improved by 15 per cent to N9.41 in 2011 compared with N8.20 in 2010. However, underlying profitability indices were generally negative with gross profit margin dropping from 44 per cent to 42 per cent. Pre-tax profit margin slipped from 17.4 per cent to 16.3 per cent. Return on total assets slipped from 20.6 per cent in 2010 to 19.5 per cent in 2011. On a positive note, return on equity inched up slightly to 25.6 per cent in 2011 compared with 25.2 per cent in 2010.

Liquidity

Nigeria is Nigeria’s healthcare company.

largest

Analyst’s opinion The performance of GSK Nigeria showed a mixed but reassuring outlook. Recent investments in capacity expansion and new innovative products and aggressive marketing boosted the top-line. However, GSK Nigeria needs to rein in costs and further speed up sales growth to restore its declining intrinsic profitability before this become evident in profit and loss figures. First quarter performance for the period ended March 31, 2011 showed a similar trend, growing sales but lower net earnings. Turnover stood at N6.39 billion in 2012 as against N4.96 billion in 2011. Profit after tax however slipped from N610.08 million to N539.08

The liquidity position of the company declined marginally, although the indices showed a generally stable financing position. Current ratio, which relates current assets to relative liabilities, slipped from 1.43 times to 1.42 times. Debtors/creditors ratio dropped from 89.7 per cent in 2010 to 59.6 per cent in 2011. However, the proportion of working capital to sales improved from 13.2 per cent to 14.6 per cent.

•Chief Olusegun Osunkeye

million. Notwithstanding, there is reasonable basis to assume a positive outlook for the company.

Governance & structures

GSK Nigeria is a subsidiary of the United Kingdom-based global healthcare companyGlaxoSmithKline Plc, which holds majority equity stake of 46.4 per cent through two wholly- owned subsidiaries. GSK Nigeria’s board and management compositions intertwined with other African operations of the multinational and many global executives provide direction for the Nigerian business. There were no major changes on the board and management during the period under review. Chief Olusegun Osunkeye, still chairs the board of directors while Mr. Chidi Okoro, leads the executive management team. The company subscribed to the international ethical and anti-corruption codes of the GSK in addition to compliance with code of corpo2011 2010 rate governance and listing rules is12 months % change 12 months sued by Nigerian regulatory au21,525 27.6 16,864 thorities. With a m a r k e t 21,525 27.6 16,864 capitalisation of 12,537 33.1 9,420 N21.5 billion, GSK

8,988 5,505 20 1.79 3,501 2,302 241 1,148 120 941

7,262 7,262 936 10,675 17,937

20.8 21.3 -32.7 156.8 19.3 16.4 16.4 0.0 0.0 14.8

5.5 5.5 -12.2 44.8 25.9

7,443 4,537 30 0.696 2,935 1,977 207 1,148 120 820

6,881 6,881 1,066 7,370 14,251

1,570 0 7,524 1,410 8,934

32.0 0.0 46.3 11.6 39.5

1,189 0 5,143 1,264 6,406

478 9,003

0.0 14.7

478 7,846

Fiscal Year Ended December 31

2011 %

2010 %

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

50.2 7.9 41.9 0.0

55.1 8.9 36.1 0.0

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

41.8 16.3 19.5 25.6 2.01

44.1 17.4 20.6 25.2 1.73

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

NA NA 83.8

7.0 3.44 82.8

Liquidity Current ratio Working capital/Turnover Debtors/Creditors

1.42 14.6 59.6

1.43 13.2 89.7

THE N

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THE NATION MONDAY, JUNE 25, 2012

• A USAID-assisted farm in Lagos State

The Lagos State government has developed a plan to create jobs for youths through agriculture. The arrangement is aimed at growing the economy. DANIEL ESSIET reports.

Can you farm? Come to Lagos I

N Lagos State, no sector of the economy has shown more potential to employ people as agriculture. It is the second most-productive, coming, perhaps behind what remains of the oncedominant manufacturing sector. The Commissioner for Agriculture and Co-operatives, Prince Gbolahan Lawal, told reporters that agriculture is the mainstay of the economy. Continued growth in the sector, he noted, is critical to boosting the economy and creating jobs. The government in-

tends to create 500,000 jobs through agriculture to boost domestic food production and food security in the next three years. More people will have jobs in agriculture, as farmers are growing their farms and creating additional jobs. To achieve this, Lawal said the ministry developed the Strategic Programme for Accelerated Agricultural Growth (SPAAG) to improve agricultural output and productivity. The programme, he explained, covers the agriculture value chain – pre-production; production; harvesting; processing and pack-

aging; storage; distribution and supporting technology, among others. All these aspects, according to him, have enormous job creation potentials. SPAAG, the commissioner said, addresses knowledge gaps and manpower by training farmers on the latest techniques and encouraging young people to consider agriculture as a career. Lawal said work has begun on this transformation agenda. There are agricultural projects, which will create jobs in the long term. The most remarkable is the 20,000 metric tonnes rice processing and milling

plant in Imota in Ikorodu Local Government Area. The project will reduce dependence on imported rice and create jobs. At optimal capacity, the mill will provide jobs for about 100 individuals. An additional 70,000 jobs will be created during planting, weeding and harvesting. Lawal said the ministry is setting up a 1,000-metric tonne high quality cassava processing factory, in the same place. When operational, the factory will employ about 500 workers. • Continued on page 38

THE NATION MONDAY, JUNE 25, 2012

JOBS

Can you farm? Come to Lagos • Continued from page 37

Rice for jobs programme The programme, was launched in 2008 to create jobs for youths, strengthen local capacity, achieve a production target of 1,600 tonnes of paddy rice per annum and facilitate access to rice processing equipment. The programme is located on a 200-hectare of land at Itoikin, Epe and Ikoga, in Badagry. It has a rice processing and milling centre. Apart from creating jobs for many youths, the programme has impacted on 180 farmers in the last three years, who produce about 180 tonnes of rice, a figure that is far from the consumption target of 540,000 tonnes per annum for Lagos. Besides, he said the state is developing industrial fisheries, artisanal fisheries and aquaculture facilities in the state to address the shortfall of about 200,000 tonnes of fish, a problem which led the nation to import $700 million fish and fish products in 2009 alone. The most remarkable success is the Ikorodu fish farm estate sited on a 34-hectare land in Odogunyan, which produces 10,000 tonnes of fish yearly. The facility is fully subscribed. He said the ministry has started a training programme on outboard engines for fishers in the fishing communities to build their capacity and productivity. He said, the government has two pig farm estates – the one at Oke-Aro pig farm estate and the Gberigbe one spread across 80 hectares of land. The government wants to empower 1,200 pig farmers to nurture a total pig population of over 88,000. There are 35 pig farmers and about 3,000 pigs in the estate. Additional investments will be made to establish more pig pens, provide an abattoir, drainage, roads, waste management and electricity. There are also plans to replace the old stock of pigs by the setting up an international pig breeding centre. To create more opportunities, the government is planning Ketu-Ereyun Fish Farm Estate on a 60-hectare land on the ItoikinEpe Road. This followed the success of the Ikorodu Fish Farm Estate.

Like the Ikorodu Fish Farm, the Ketu-Ereyun Fish Farm has capacity for 10,000 tonnes, but with additional supporting facilities such as hatcheries, processing and marketing centres. He said the state is building the knowledge, technology, and the means to end hunger and food insecurity, adding that the government is set to recruit more youths for its Agriculturebased Youth Empowerment Scheme (AGRIC-YES). The scheme is structured in three phases, beginning with basic agricultural modules before the second phase where interns are exposed to international best practice and modern agricultural management techniques in commercial farms. During the final phase, successful trainees are settled in farm estates with take-off grants from the Lagos Microfinance Institution (LASMI). To consolidate on the success of AGRIC-YES, he said the government is launching an executive training programme for professionals and matured candidates, who have the resources to embark on agric projects in poultry farming, aquaculture and vegetable farming. In addition, Lawal said the government has started greenhouse production of tomatoes, raising hopes that it will become available all year round at affordable prices. He said the project is being assisted through Agric-YES to help increase the incomes of farmers and equip the youth in agric business skills. If the concept is widely embraced, Nigeria could start enjoying supply of tomatoes which faces the challenge of storage and wastage. Lawal said farmers can boast of

• Lawal

• Bashorun

higher quality tomatoes, which can be sold at higher prices. To create jobs for youths, the state’s government signed a Memorandum of Understanding (MoU) with Songhai Regional Centre, a Benin Republic based agro development initiative established in 1989. The deal will see the firm extend technical assistance and other support to a similar centre to be established in Badagry. He said the Badagry project would be a replica of the Songhai Centre in Port Novo in Benin Republic when it is developed. It would train young farmers in agriculture, while waste generated in the farms would be recycled for other uses, including bio-gas and electricity. Apart from using modern technology to drive agriculture, the centre also emphasises zero waste, such that every waste generated from animals, crops and all other activities in the centre is recycled, repackaged and re-used, so that nothing is lost.

Though not all the infrastructure challenges have been addressed, he’s impressed that Lagos is emerging as a leader in farm programmes adding that public officials are going to help tackle the challenges. The Permanent Secretary, Dr Yakubu Olajide Bashorun, said the government anchored its agriculture development programme on information technology for improved farming method–planting, harvesting and processing as well as marketing. He said the government has set up a Farm Service Centre where farmers will be trained to improve their knowledge and skills; table their challenges and constraints and in return, get improved seedlings and other agricultural inputs at reasonable prices. The training facility at the Farm Service Centre is, designed to complement the Agriculture Youth Empowerment Programme (Agric-YES), at Arage, Epe, he

‘The scheme is structured in three phases, beginning with basic agricultural modules before the second phase where interns are exposed to international best practice and modern agricultural management techniques in commercial farms. During the final phase, successful trainees are settled in farm estates with takeoff grants from the Lagos Microfinance Institution’

added. There, young graduates and school leavers are being trained to become farmers, who can handle commercial farming. He said the government wants all agricultural projects spread across the state. Bashorun said the government is working on investments in infrastructure, prioritising projects, adding that the ministry is collaborating with the councils to assist farmers. He said the Eko Farmers’ Mart was conceived to stock and sell fresh farm produce, to link up agricultural production to the markets to ensure that farmers receive fair rewards and encourage to increase production, adding that the marts would sell fresh farm produce from different locations in the state at the most affordable prices under a franchise arrangement. The first mart was opened at the Alausa Secretariat in October last year. Other locations in Surulere and Ajah would open shortly, the Permanent Secretary, stated. He said subsequent marts will be franchised to experienced and competent private parties. He said the government is creating jobs through local markets, improving processing and distribution infrastructure, expanding access to healthy food for consumers, including underserved communities and providing research, training and information that farm entrepreneurs need to be successful.

CAREER MANAGEMENT

Networking options for job hunting “T

HE major difference between successful and unsuccessful job hunters is not some factor out there….. But the way they go about their job hunt”. That Dick Boles, author of “What colour is upon parachute”. You are seriously looking for a job. I know. But are you looking for it in the right places? Are you asking / talking is the right people? Are you putting in the right amount of time and other resources? Are you deploying these resources in the right direction? These are important questions. Knowing whether you are doing the right thing can be the key to your unending job search. Job search requires a grand strategy, some semi-strategies and operational tactics. Whatever your strategies, are the key lesson for success in today’s job market is that you have to be pro-active. Most job seekers utilise the passive approach; they submit application/Curriculum Vitae when the opportunity comes their way, and wait.

By Olu Oyeniran

When they don’t hear anything, they repeat the process. It is not wrong for you to apply the conventional means. But you will be out of the job queue faster if you employ creative and unconventional strategies. Afterall, you have nothing to lose, except may be your joblessness! Jobs, jobs, jobs everywhere! This, I admit, will be difficult for an individual who has been looking for a job for over three years to believe. But, in most instances, these are more job openings than the job seeker knows about. That is easy to believe. And that the more you get to know about job opportunities, the better your chance of actualising the dream of a better job. Thus every effort must be made to create opportunities of knowing about openings. This sounds elementary. But how have you been doing it? The principle above is that you need to

generate job leads. (It is only then that you can pursue it). And that the higher the quantity of job leads, the better. We however need to balance this with the quality of job leads. A higher quality job lead is the one that has a higher chance of your been employed. Looking in the newspaper can give you five, 10 leads on a day. But a huge number of people looking for job will also have read the ads. You will, therefore, be operating in a crowded market. Imagine being given an introduction to a certain manager in a certain company, with a job opening. And the job may not be advertised. It may take days to see the person, but that is a high quality job lead. So, you have to keep in mind the two variables (quality and quantity) and do some balancing. Today, and in the next few Sundays, we shall be looking at techniques, processes and strategies for generating and pursuing job leads. We hope to cover areas such as

networking, job ads, recruitment agencies, direct employer contacts, letter campaigns, internet/online searches, etc. Most employers as I said earlier do not advertise. In fact, it is estimated that 80 per cent job are not advertised. Or when was the last time FirstBank, MTN, and Glaxowelcom advertised? They would rather consider someone referred to them by a friend, trusted employees, colleagues, etc. It is like looking for a doctor or mechanic: we all prefer those ones introduced to us. We will pursue this further next week. It bears repetition that nobody owes you a job. You have to go after it. Olu Oyeniran is the Lead Consultant, EkiniConsult & Associates. Website: www.jobsearchhow.com E-mail: oluoyeniran@yahoo.com Tel 08083843230 (SMS Only).

THE NATION MONDAY, JUNE 25, 2012

INSURANCE

NIA deploys .5m e-readers for vehicle insurance

HE Nigerian Insurers Association (NIA) has be gun the deployment of 500,000 e-card readers to security agencies to verify genuine vehicle insurance licences, its Chairman Olusola LadipoAjayi, has said. The NIA boss, who disclosed this in Lagos, said the Nigerian Insurance Industry Database (NIID) project will help stem fake policies carried by motorists. He noted that the electronic gadgets will help security agencies – Nigerian Police and Federal Road Safety Commission (FRSC) ascertain genuine vehicle licences. He said the commencement of use of the device was delayed by some challenges, adding that these are being addressed and that efforts are afoot to make the initiative a successs. He said the device has been aligned with that of the FRSC to forestall harassment of policyholders by security officers, adding that it will help block the linkages in the system. He said: “Our data is linked to the FRSC data base so that they can verify the authenticity of insurance certificate that will be presented to them by motorists. We are deploying the electronic card readers to the security agencies to enable them know vehicles that are properly insured. “The most important thing is for us to get it right. It is not

Stories by Chuks Udo Okonta

how soon, but how well, because every existing data must be captured tested and be error proof. This is because we do not want any body to be denied passage by the police and other security agents when he or she has a genuine vehicle insurance cover. “What this means is that all policies that are still running now will be captured into the system, so that when a policy holder is accosted, he or she will not be accused of carrying a fake or counterfeit document, whereas the individual is carrying a genuine document. This we are doing. “We got the data ready, but we are checking and double checking in every part of the country no matter how remote the places are, to make sure the system work perfectly. “I can assure you that it will be done in the first quarter of this year. My tenure would end in the second quarter. I should be able to accomplish that before I live.” Ladipo-Ajayi said the data would provide mechanism for verification of insurance certificate issued or presented as evidence of insurance, an enabling environment for submission of statutory returns online. It will also provide access to all relevant policy underwritten and claims information.

“It will eradicate fake insurance and minimise instances of fraudulent claims, provide real time information that would address issues raised by all stakeholders: insuring public, market players, law enforcement agents and regulators. It will also serve as source of historical data for analysis and benchmarking, thereby providing qualitative analysis of industry performance,” he said. He noted also that the initiative will enhance transparency and accountability in the industry. Director-General NIA Sunday Thomas, said the scheme has progressed smoothly as some challenges encountered at the earlier stage have been rectified.

“When the exercise came up, we seem to have underestimated what is actually required to commence implementation, but as we got deep into the processes and procedures that we need to follow to make it a sustainable project, we observed some things we did not envisaged. “What we have done so far is to run through the procedures that are required and we have observed that deeper documentations have to be made. “We have been discussing with the stakeholders and we have more or less got the concurrence from almost all the stakeholders. It is not a project that we can afford to start and not continue. So, sustainability is our major concern and we are

•Ladipo-Ajayi

trying to do all that is necessary to make sure we reduce human error in the process. I can tell you that we are closer to the flag-of of the initiative,” he said.

AIICO Pension restructures

IICO Pension Managers Lim-ited is re-evaluating its struc-ture and internal brand alignment for improved performance, its Managing Director Eguarekhide Longe, has said. Longe, who spoke at a briefing in Lagos, said the firm operates a diverse operation and services network through representative offices in 32 states. He noted that in response to competitive market dynamics, the firm is carrying out a brand repositioning. He added the effort would be driven by three levers, which are organisational transformation, internal alignment, market position and financial performance He said: “On one hand, there is an effort to re-evaluate organisational structure and internal brand alignment by undergoing acculturation programmes that will enable the company’s staff to endear and reflect the company’s ideology. On another hand, the company is optimising organisational processes to come to speed with industry trends and technological updates.

“Very important is the need to create a more responsive and proactive brand that fosters and showcases clearly stated values that are consistently delivered across the organisation. The result will be a clear and deliberate management of how the brand is to be perceived. “The company is a highly responsible and responsive company that understands the place of efficiency and diligence in delivering customer satisfaction and is etching a culture company –wide where these tenets are regarded with the utmost seriousness.” He said this stands as a value conservatory, creating and preserving value, and ensuring that value created today is made available for customers after retirement. He noted that with the company’s organising principles of trust, partnership and growth serving as a rallying point. It aspires to stay ahead of the game by developing expertise across relevant platforms and redefining the service delivery concept offering uncommon courtesies to customers.

Ondo partners NCRIB on risks

HE Ondo State government has promised to partner with the Nigerian Council of Registered Insurance Brokers (NCRIB) in risk mitigation and management. The state Governor, Dr Olusegun Mimiko stated this while declaring open the Chief Executive Officers Retreat of the association in Akure. He said the government considers it expedient to patronise insurance professionals in managing and minimising risks as part of its transformation initiatives in the state. He said Ondo, being the bastion of knowledge and education, should recognise the role of profes-

sional bodies and collaborate with them for the mutual development of the two parties. Mimiko urged the forum on the need to extend their frontiers of public enlightenment to every part of the country. He commended the Council for choosing the state for the retreat. President, NCRIB Laide Osijo praised the progress recorded by the state, adding that the Council was ready to collaborate with the government in taking it higher. Osijo said the retreat was a yearly event where chief executives of member companies discuss the problems and prospects of the industry.

• From left: Chairman, Niger Insurance Plc, Bala Zakkariya’u; Commissioner for Insurance Fola Daniel and Executive Secretary, African Insurance Organisation (AIO) Ms. Prisca Soares at the 39th AIO Conference and General Assembly in Khartoum.

Expert advocates investment in IT

HAIRMAN, Sovereign Trust (STI) Plc Dr Ephraim Faloughi, has called for more investment in information technology to boost insurance operations. He disclosed this at the company’s Annual General Meeting (AGM) in Lagos. He said information technology is essential to any organisation desirous of industry leadership. He noted that company’s efforts at running a seamless and flexible business may be a mirage in the absence of best information and technology platform. He urged operators to continue to channel appropriate investment in such platform to boost their performance.

Managing Director Wale Onaolapo called on insurance practitioners to toe the path of professionalism and integrity, adding that attitude of the operators is responsible for the poor growth of the industry. He said the industry has a lot to do in terms of gaining the confidence of the public and generating high patronage level. He said the growth and advancement of the industry depends on the way practitioners conduct themselves. He said: “The bedrock of our success lies within our powers. We have the wherewithal of turning the vast opportunities around us to goldmine but we must be prepared to uphold professionalism and make integrity our watchword. “One of the recurring deci-

mal as to why the insurance industry has not grown beyond what it is in Nigeria despite the various opportunities has been alluded to unprofessional conduct and unethical practices by some practitioners which invariably has resulted to a heightened apathy from the insuring public - thereby depleting the revenue that ought to have been generated by the industry. “One would have expected that with the large population of the country and the huge commercial opportunities that are replete across the country, insurance should have become one of the money-spinning financial sectors in the country but the reverse is the case,” he said.

‘CSR to boost industry’s image’

HE President, Lagos Area Committee, Nigerian Council of Registered Insurance Brokers (NCRIB) Mr Tunde Oguntade has said insurers, engagement in Corporate Social Responsibility (CSR) and prompt settlement of claims will help raise public confidence on insurance patronage. He said it is worrisome that people hardly hear of corporate social responsibilities in the insurance industry, as obtainable in the banking sector. He noted that banks patronage is

high because bankers associate with the people through social responsibilities. He said the repositioning of the insurance sector should be tied to activities that identify with the need of the environment where insurers operate. He canvassed ethical practices and prompt claims settlement. He said: “I think the first thing is engaging on corporate social responsibilities. The operators should be seen and heard through such

scheme. They should be involved in the lives of the ordinary people on the streets. Just as the banks go to the market places giving gifts to woo customers, we should also go round. We should also give scholarships to let people know that insurers have come to town. “Aside that claims should be settled promptly and there should be better cohesion and collaboration among the operators, we should give a better face to insurance practice.”

THE NATION MONDAY, JUNE 25, 2012

LABOUR

Plateau introduces dress code for civil servants T

HE Plateau State government has introduced a dress code for civil servants to guard against “improper and immodest” dressing at work places. The government also threatened to sanction workers who fail to comply with the code. In a statement issued in Jos by the Head of Civil Service, Mr Moses Gwom, the government said a specific dress code had been prescribed for workers to ensure decency. “Improper dressing or immodest dressing as official outfits are not allowed and this is captured in the Public Service Rules number 030313. “It states clearly that to be in the office, the formal dressing will be either you are in complete traditional dress either “baban riga” with a cap to match or a “kaftan” with a cap to match, that is for the men. “For the women - wrapper. If you want to wear a skirt, it should be below the knee. If you want to wear corporate trousers to the office, it shouldn’t be the ‘pencil’ type; it should be loose enough, decent enough. “Like the Chancellor of Germany; she is always in trousers; the ones the female bankers

By Dupe Olaoye-Osinkolu

wear; they are decent, loose; they are not the type to show your physique and to distract the attention of the workers.” Gwom warned that erring workers would be sanctioned henceforth and appealed to the workforce to comply in their own interest so as not to fall on the wrong side of the law. “If a civil servant is immodestly dressed, we will call on the management of such MDAs to send them back home to dress properly. ”If the staff officers enforce this public service rule, we will expect decency at the workplace.” He also warned visitors to government offices against appearing immodest in their dressing to avoid being embarrassed. “Visitors that are coming to visit us at work should appear decent with their dressing. ”Ladies shouldn’t wear blouses that we call ‘spaghetti’ - that’s not a wear to the office, it’s a casual wear at your private time at home. But to come to the office and be very formal, it’s either you are in traditional dress or you wear

complete suit with a tie. ”If you are not wearing a tie, you should wear a jacket on top of the shirt. If you just want to wear a shirt, then it should be a shirt, a tie and a trouser - that is decent. ”This is considered appropriate, corporate. But jeans is not allowed for both male and female.” He, however, said that there were some exceptions to some categories of workers who might be on special assignment like going to project sites, which demanded some special wears. “If you are an engineer in the ministry of works and you are going to inspect projects, we will understand that you can wear your jeans, you can wear your face cap because you are going to the site. “But if you are coming to the office to sit and do your work in the office, then you should either wear the complete suit or a shirt and a tie to match or you are in a traditional dress. “This is what is allowed for everyone. We must endeavour to wear things that do not distract others and they lose concentration at work.”

2012 ILO Confab: Workers insist on rights

ORKERS around the globe have accused their employers of blocking the yearly discussions on labour abuses at the on-going International Labour Conference holding in Geneva, Switzerland. Addressing delegates at the inauguration of a gigantic union that covers workers from 140 countries (Nigeria inclusive), they said employers’ action was a new ploy to roll back the right to strike. The General Secretary of the new global union named IndustriALL Global Union, Comrade Jyrki Raina, said “Employers are becoming more militant as they see their profits threatened, as they watch the unraveling of dreams to dominate global markets because of a global crisis. But not one worker, not one member of any of our unions, anywhere, is responsible for this crisis. But our members, workers everywhere, are being asked to pay for the crisis. “We saw evidence of the new employer militancy just this month at the International Labour Organisation – the oldest United Nations agency. Since 1926 the ILO conference has regularly discussed the worst cases of labour abuse across the globe.But this year, for the first time, the employer representatives blocked discussions of labour abuses. “This year the employer representatives at the ILO conference have decided, as part of a strategy to roll back the rights of workers, roll back the right to strike, they don’t want to allow the UN agency to put the spotlight onto labour abuses, to spotlight workers rights. Wherever you look we are witnessing these attacks on workers.”

NEMA drills workers in Enugu on disaster management

•Workers at a public hearing at the National Assembly

Fed Govt pledges support for civil servants to own houses A

S parts of its effort to reposition the federal civil service towards achieving world class efficiency, the Federal Government is set to assist civil servants in owning their own homes. President Goodluck Jonathan at a recent event to mark the civil service week in Abuja pledged that it would ensure that civil servants secure a decent house of his or her own to enhance their productivity. Jonathan, represented by Vice-President Namadi Sambo, made the pledge at the Stakeholders’ Workshop on the Civil Service with the theme: Repositioning the Nigerian Civil Service for effective implementation of the Transformation Agenda. The workshop was part of the activities

held to mark the 2012 Civil Service Week. Jonathan said: “This administration will support you; will support the civil service as you are the engine room for the achievement of our noble objective in transforming Nigeria into one of the 20 most developed countries by the year 2020. “Only yesterday (Last Wednesday), we approved the new Housing Policy in the Federal Executive Council(FEC) and we shall ensure every civil servant can own a home and other welfare necessary for delivery of good service.” Jonathan stated that his administration

placed premiums on the professionalisation of the federal workforce and staff welfare. According to him, his vision for the civil service is that of a professional, highly skilled, merit-driven and integrity-based institution that can effectively contribute to national development and thereby meet the yearnings and aspiration of the people. He praised the civil service and its leadership for its contributions and commitment to national development over the years. The president, however, charged the civil Service to ensure strict observance of the rule of law, transparency, accountability, effectiveness and efficiency, in service delivery and elimination of waste in governance.

UK doctors take first industrial action in 37 years

OCTORS in Britain’s state health service took industrial action for the first time in 37 years on Thursday in a dispute in their pensions, and cancelled non-urgent appointments and operations. The medics according to a Reuter’s report, are the latest group of public sector workers to take industrial action in recent months over government cuts to taxpayer-funded pension schemes. Doctors only treat urgent and emergency cases in a 24-hour, and protested against government’s plans to make them pay more in their pensions and retire at a later age, the British Medical Association (BMA) said. One in 10 patients had their treatment, operation or appointment cancelled, and three-

quarters of family doctor carried out surgeries operating a normal or near-normal service, the government said. Not all doctors took part and others were providing the level of care typically available at weekends and on public holidays. “It is not a strike in the normal sense,” BMA Chairman Hamish Meldrum said. “All doctors are at their places of work, they will be seeing anybody who is urgent or who needs to be seen,” he said. Doctors said government had reneged on a pension deal agreed in 2008 and would require them to pay higher contributions than equivalent staff elsewhere in the civil service. Government said it could not maintain public sector pension schemes on their current

terms because of the rising cost of providing benefits to retirees living longer following improvements in public healthcare. It said the doctors were among the best paid state employees, and their action risked angering Britons at a time when many face wage freezes and an uncertain job future as the government cuts spending to tackle its budget deficit. Health Secretary Andrew Lansley said the doctors’ action was “pointless”, saying the government would implement the pension changes which were “fair and sustainable.” Medics last took industrial action in 1975, when senior hospital doctors and junior doctors refused to work extra hours in separate disputes over contract terms.

HE National Emergency Management Agency (NEMA) has begun drilling of federal civil servants in Enugu State on measures to avert disasters. The exercise, held last week at the Federal Secretariat, Enugu, was organised in collaboration with the Enugu State Emergency Management Agency. In his lecture tagged Emergency Evacuation at Home and Workplace, the South east Co-ordinator of NEMA, Dr Bandele Onimode, said the exercise was aimed at testing the level of preparedness of the participants toward handling disasters. “What we have done is emergency evacuation exercise which combines lectures and evacuation drill. What called for it is the state of insecurity and to test the level of preparedness of responders. “In addition, we want to test the knowledge base of our civil servants for them to have firsthand information of what these insecurity issues are and how to deal with it when they do occur. “One, we must develop capacity so that we reduce our vulnerability to disasters and the watch word is we must preserve our environment. For us to have a sustainable development, we must keep our environment safe and reduce disaster to its barest minimum. ’’ Onimode called on civil servants to be conscious of their environment and be proactive of the risks around them.

IGI pays N200m pension arrears to NIPOST

ATIONAL President of the National Union of Postal and Telecommunications Employees, Comrade Sunday Alhassan, has said Industrial and General Insurance (IGI) remitted N200 million to NIPOST Pension Board’s account. Following agitation by the workers over unpaid pension, the Senate had on May 22, given IGI a seven-day ultimatum to pay N220 million into the accounts of the Pension Board of Trustees of NIPOST. Alhassan said the money was to cover arrears of pensions from January to April. “I am reliably informed as a member of the pension board of trustees that IGI has remitted N200 million to the NIPOST pension board account.’’ He added that Lasaco Assurance PLC, one of the insurance companies covering NIPOST, was yet to remit any money to the NIPOST Pension Board. “LASACO has not remitted any money to the pension board account and their reason is that the government has not released the money to them.’’ He appealed to the government to hasten the payment of the arrears of 2011 and also urged it to release the money as and when due.

THE NATION MONDAY, JUNE 25, 2012

NEWS

Ebonyi suspends principal, 26 teachers for incompetence, absenteeism

OR sundry allegations ranging from incompetence to absenteeism, a school principal and 26 teachers have been suspended in Ebonyi State. Commissioner for Education Prince Chibueze Agbo named the principal as Mr. Celestine Ogbuzuru of the Community Secondary School, Nkalagu, in Ishielu Local Government Area. Agbo said the teachers were suspended for what he described as gross incompetence and acts capable of undermining the government’s determination to offer qualitative education. He alleged that the 26 teaching and and non-teaching members of staff were being punished for absenteeism, gross misconduct and incompetence. The commissioner, who was on an unscheduled visit to the school, regretted that of the 37 employees on the payroll, only 19 signed the attendance register. Four of the 19

• Closes two ‘illegal’ private schools From Obinna Ogbonnaya, Abakaliki

were present as at 1.30pm when Agbo led officials of his ministry on a tour of the school. The remaining 15 workers were not on duty. The commissioner said besides the 15 who absconded after signing the attendance register, 18 were absent without permission from neither the principal nor the management of the school. The commissioner said: “The state government will not continue to tolerate any act of incompetence, gross misconduct, absenteeism and act capable of undermining its determination to give to the students a qualitative education.

Anyim, governors for Anyaoku’s lecture From Odogwu Emeka Odogwu, Nnewi

ECRETARY to the Government of the Federation (SGF) Senator Anyim Pius Anyim and the governors of the Southeast states are among dignitaries billed to grace the second Chief Emeka Anyaoku lecture series on Good Governance. The lecture is scheduled for Thursday at the Women Development Centre, Awka, the Anambra State capital. A statement by the Country President, Youth Affairs International Foundation, Mr. Johnson Ogbonna, named the Ohanneze Ndigbo, Ambassador Ralph Uwechue, as chair of the event. Obi Alfred Nnaemeka Achebe of Onitsha and Igwe Chidubem Iweka of Obosi will be fathers of the day. Keynote speakers are: Prof Dora Akunyili a former Minister of Information and

•Anyaoku

Communications, Alhaji Mohammed Saad, a youth advocate and Dr Ausbeth Ajagu , a Lagos businessman. The theme of the lecture is: “The role of youth in governance’’. Governor Peter Obi will be the host. According to the statement, the lecture series in honour of the former Secretary-General of the Commonwealth will place the youths against the needs of the present generation.

Women protest lawmaker’s suspension • Give Ebonyi Assembly 24-hour ultimatum to reverse self From Ogbonnaya obinna, Abakaliki

HOUSANDS of women from Ivo Local Government Area of Ebonyi State yesterday staged a peaceful protest in Abakaliki, the Ebonyi State capital, following the suspension of their constituency’s representatives in the House of Assembly, Mrs. Lillian Igwe. The women, who took their protest to major streets, asked the House leadership to recall Mrs. Igwe within 24 hours or they will take their case to the Aso Roak Villa. Aged between 40 and 80 years, the protesters chanted solidarity songs and carried placards with inscriptions, such as: “Recall our representative now”; “You cannot tarnish the good name of our illustrious daughter”; “EBHA, concentrate and make laws and stop witch-hunting people”; “We are giving you 24 hours to recall her or face the wrath of Ivo women” and “Our Dear Governor, please call the House leadership to order”, among others. Their spokesperson, Mrs. Obiageli Doris, described the suspension of Mrs. Igwe as unconstitutional, uncalled for and a plot by some politicians in the state to undermine and tarnish the image of the woman for her refusal to endorse the impeachment of the former Speaker Mr. Ikechukwu Nwankwo. Mrs. Obiageli said her group had waited patiently for a committee set up to investigate the allegation to invite the suspended lawmaker to defend herself. She said they decided to stage the protest, having observed that the House was not ready to either invite Mrs Igwe or recall her. Her words: “We decided to stage this peaceful protest to make our feelings known to Governor Martin Elechi, the House leadership and the entire lawmakers. We are here to protest the unnecessary victimisation, embarrassment and battered image of our representative by the Assembly.”

“The ministry as part of its function would continue to undertake unscheduled visit to government schools to monitor the attendance and quality of education the pupils receive. “It is most regrettable and unfortunate that, at Community Secondary School Nkalagu, out of the 37 tutorial and non-tutorial staff, only 19 signed the attendance register today. “More worrisome is the fact that out of the 19 that signed the attendance register, only four were in the school as at 1.30pm when we visited. Unfortunately, the principal who is supposed to ensure attendance of teachers to school could not give good explanation on the

whereabouts of his teachers. We are left with no other option than to suspend the principal and the 26 teachers.” Agbo, who demanded for the teachers’ lesson note, observed that the pupils had not had more than two lectures per day in the last one month. He warned that the ministry would not hesitate to recommend any erring principal and teacher for sack. Noting that the suspension would deter others who engage in such acts, Agbo added that the ministry would make adequate arrangement to fill the gap created by the development. Similarly, Agbo ordered the immediate closure of two private

schools located at Amaike-Abba Community in Ebonyi Local Government Area for operating without approval and not meeting up to the stipulated standard for private schools. The shut schools are: Dennis Academy Nursery and Primary School and Net of Life International School all in Amaike-Abba Ebonyi Local Government Area. The commissioner alleged that the proprietor of Dennis Academy Nursery and Primary School, instead of limiting the school to a nursery school with the facilities, made it a nursery and primary school. He said the Net of Life International School was closed when the ministry observed that pupils were receiving lessons at the car garage of the proprietor. He urged parents and guardians to find alternative schools for their children and wards.

THE NATION MONDAY, JUNE 25, 2012

NEWS Kwara to export cassava chips to China KWARA State Government’s emphasis on value chain management in agriculture has paid off. Ireti Farms, under the auspices of Shonga Farms Holdings, in partnership with Austravia of Australia, is to begin the export of cassava chips to China, with the first batch of 6,000 tonnes ready in the next two weeks. Shonga Farms, in which the Kwara State Government has a 25 per cent stake, is also to coordinate the sourcing of additional cassava from outgrowers in the state. Governor AbdulFatah Ahmed was speaking with a delegation of Austravia, exporters of dried cassava chips, led by its Chief Financial Officer, Mr. Sam Popilko, Chief James Awoniyi, the representative of the Minister of Agriculture and the Chairman of Shonga Farms Holdings, Mr. Tope Daramola, at the Government House, Ilorin.

Boko Haram: Plateau churches hold hurried services

OLLOWING an alleged threat by the Boko Haram sect to attack Jos, the Plateau State capital, yesterday, many churches closed early as services were conducted in a hurry. There was tight security, especially at churches. Security personnel were patrolling the streets. Members of the Special Task Force (STF) conducted a stop and search on vehicles . Most residents worshipped in nearby churches, while others stayed indoors. A pastor in one of the parishes of The Redeemed Christian Church of God, Emmanuel Anoke, urged the congregation not to be afraid to worship God. He said: “God has not given us the spirit of fear despite the intimidation from the pit of hell.” Commissioner of Police Emmanuel Ayeni enjoined the residents to be security conscious and vigilant, especially during worship. Security was also fortified in churches yesterday in Kano by the operatives of the Joint Task Force (JTF) to forestall

•Security tightened in Kano •Kaduna Christians pray for peace From Yusufu Aminu Idegu and Marie-therese Nanlong, Jos, Kolade Adeyemi, Kano

attack by members of the Boko Haram sect. From 6am, security agents mounted checkpoints on routes to churches, particularly in Sabon Gari. Governor Rabiu Musa Kwankwaso held emergency security meeting with service

chiefs to tighten security. Christians in Kaduna State yesterday offered special prayers in churches for the restoration of peace and normalcy in the state. The News Agency of Nigeria (NAN) reports that the prayers followed last Sunday’s attacks on three churches in Kaduna and Zaria. NAN reports that the churches offered special

prayers for peace, stability and unity in the country and urged the faithful to cooperate with security agents to restore law and order. NAN, however, observed that most churches recorded a low turnout. Pastor Edward Isah of the Covenant Church admonished Christians to “watch, pray and not to take the law into their hands.” Isah urged members to continue to pray for peace in the state and for God to prevail over the attacks on churches. Bishop Idowu Fearon of the

Kaduna Anglican Diocese urged Christians and Muslims to give peace a chance and live in harmony as ordained by God. He told NAN that God created Muslims and Christians in the state to live together as a people with different faith. “We, therefore, appreciate God and live with one another irrespective of our religious differences,” he said. NAN reports that yesterday’s service was conducted in churches across the state under tight security.

Civil servants urged to check medical status

HE Ondo State Commissioner for Health, Dr. Dayo Adeyanju, at the weekend urged citizens, particularly civil servants, to check their medical status to prevent untimely death. The commissioner noted that the major cause of sudden death is stress, noting that it is caused by mental pressure. Delivering a lecture at the annual Feast of Baracuda organ-

•As Seadogs hold Feast of Baracuda From Damisi Ojo, Akure

ised by the National Association of Seadogs (NAS) in Akure, Ondo State with the theme: “Your Health Our Concern”, Adeyanju said people expose themselves to stress in one way or the other. The commissioner, who was represented by a doctor

in the Ministry of Health, Dr. Bolaji Afolayan, said checking one’s medical status is the only way to tackle the disease. According to him, “if you experience stress over a long period, you may develop depression, anxiety, insomnia, hypertension and stomach ulcer. If these are not well treated, they may cause untimely death.

“While there is little you can do to prevent stress, there are many things you can do to manage it such as learning how to relax, taking regular exercise and adopting good time management techniques. “Relaxation, such as deep breathing, can help to relieve your stress symptoms. It can help you calm down and take a step back from a stressful situation. If you are experiencing stress, try to soften those feelings by relaxing your muscles and taking deep breath. Start by breathing in for three seconds before breathing out for a little longer. “You should continue the deep breathing exercise until you feel calmer and ready to continue what you are doing. It might be better to do something else rather than continue with the stressful task.” Speaking at the event, the Capo of the Confraternity Group, Chucks Ejinafor, an engineer, urged the government to attach medical personnel to all ministries so that workers’ medical status would be checked. He said the aim of the group was to make everybody have equal access to the opportunity for the realisation of each person’s potentials. His words: “Many people have criticised this decision as having given birth to the fierce struggle for pre-eminence among the pseudo-fraternities accompanied by extreme hooliganism and other forms of anti-social tendencies.” The Executive Director of the National Orientation Agency (NOA) Ojo Ororo, who is also a member of the group, said the association was not a secret cult, adding that the aim of the founding fathers such as Wole Soyinka, Ralph Okpara, among others, was to bridge the gap between the rich and the poor.

Man caught trying to vandalise MTN mast From Austine Tsenzughul, Bauchi

30-year-old man was last Saturday caught while trying to vandalise a Mobile Telecommunications Network (MTN) mast at Bayara, a suburb of Bauchi. A source said the suspect identified as Babangida (aka Bangis) was caught climbing the mast in an attempt to steal its components. The source said the discovery attracted the attention of the residents, motorists and passers-by who gathered at the base of the mast located a few metres from the BauchiDass Road.

THE NATION MONDAY, JUNE 25, 2012

NEWS

JTF kills six suspects in Bayelsa O PERATIVES of the Joint Military Task Force (JTF) said they killed six suspected pirates at the weekend. According to a statement by JTF’s Media Coordinator, Lt. Col. Onyema Nwachukwu, the suspects were killed in a shoot-out in the creeks at Ekeremo Local Government Area of Bayelsa State. Nwachukwu said six of them were killed in the ensuing gun battle while one escaped. He said his soldiers recovered a speed boat, two single barrel guns, seven phones, two saws and three hard saw blades. Others were four wraps of substances suspected to be Indian Hemp, seven sticks of

men blocked her vehicle and forced her into their car. Agwemuria and his nine-yearold cousin, Eloho, were sent on an errand when they were kidnapped. The gunmen reportedly asked From Isaac Ombe, Yenagoa and Polycarp Orosevwotu, Mrs. Agwemuria to pay N20 million. Warri cigarettes and two torchThe kidnappers assaulted lights. Harrison and fled. The victim In a related development, was bleeding in the head three kidnapped persons when he was rescued. were at the weekend rescued Addressing reporters at the by a vigilance team in Ekak- hospital, the head of the vigpamre, Ughelli South Local ilance team, Monday OwheGovernment Area of Delta siri, said: “We worked State. throughout the night before The victims were the son of we were able to rescue the the council’s Supervisory victims.” Councillor for Finance, HarHarrison’s father, Luke, rison Agwemuria, Mrs. Edore said: “It was my wife they and Eloho Tom. called that the children were A source said Mrs. Edore with them and that they want was driving when the gun- N20million.”

•Three rescued

ACN urges Amaechi to pay pensioners

HE Action Congress of Nigeria (ACN)in Rivers State has urged Governor Rotimi Amaechi to pay pensioners their outstanding entitlements. Its Publicity Secretary, Jerry Needam, yesterday in Port Harcourt, the state capital, condemned the alleged refusal of the government to pay the pensioners. The retirees, mostly elderly persons, had earlier protested round the city of Port Harcourt. They were later at the Government House, where they were received by the Chief of Staff, Tony Okocha,

•House: we’re not corrupt From Bisi Olaniyi and Clarice Azuatalum, Port Harcourt

The party said: “Those who actually laboured for the state all through their lives are left in penury on account of neglect and abandonment by the government they meritoriously served. “The Rivers State Government which receives the highest allocation in Nigeria still owes pensioners’ entitlements. No responsible government treats pensioners with disdain.”

ACN also admonished the governor to be more responsive to the people. In the same vein, the House of Assembly has denied allegations of corruption levelled against it by the ACN, saying the accusation was done in bad faith. Leader of the Assembly Chidi Lloyd spoke in Port Harcourt at the weekend. Needam accused the lawmakers of being “a mere rubber stamp for the executive arm of government and have only succeeded in institutionalizing corruption in the state”

•Bishop of Lagos West Anglican Communion, Rt. Revd. Dr. Peter Awelewa Adebiyi with Deacon Daramola Adewunmi Ebenezer (left) and Deacon Adebiyi Oluwafeyisayo and his wife, Margaret, at the 2012 Trinity Ordination held at the Archbishop Vining Memorial Church Cathedral in Lagos...yesterday.

PTI students, staff clash with tax collectors over N3.59b debt

QUICK intervention by riot policemen averted a bloody confrontation between students and security officials of the Petroleum Training Institute, Effurun, Delta State, and members of the State Board of Internal Revenue (DBIR). It was gathered that the institution’s Chief Security Officer allegedly mobilised students to resist the arrest of the school accountant over a N3.59billion debt owed by PTI management. An eyewitness said the arrest was ordered after the accountant allegedly failed to

From Shola O’Neil

honour an invitation by the Commissioner of Police. Sources said trouble started when the Chief Security Officer ordered guards to shut the main entrance to prevent the accountant from being taken away. Tension escalated when students were reportedly mobilised. The Nation gathered that a Toyota Corolla belonging to the DBIR was damaged by the rampaging students and staff. It took the police team and the intervention of the mobile policemen on guard at

the institute to secure the release of DBIR staff and their cars. Confirming the report, Clark Ekpebe, who led the DBIR team, described the incident as unfortunate. He said: “The act is condemnable and demeaning of an institution. “I think we may have to take a legal action in court for obstructing the enforcement of justice after consulting with the Board.” But PTI’s Legal Consultant O.J Oghenejakpo faulted the ‘rash’ action of the board, saying the case is in court.

Patents Registrar urged to withdraw firms’ certificate

HE Registrar of Patents, Federal Ministry of Commerce and Industry, Abuja, has been urged to withdraw the certificates of registration of patents rights alleged to have been erroneously issued to three companies for the production of transparent ballot boxes. Counsel to Bedding Holdings Limited Karina Tunyan (SAN) made the request, following a judgment of an Abuja High Court which adjudged the company as the bona fide and exclusive owner of the patents and design rights in and over the Transparent Ballot Boxes (TBB) and Electronic Collapsible Transparent Ballot Boxes (ECTBB). Justice Adamu Bello ordered the registrar to withdraw and strike out the patents and designs rights erroneously granted the three companies from the register of Patents and Industrial Design Rights as they have been nullified by the judgment of the court. The three companies who

By Adebisi Onanuga

are the second, third and fourth defendants are Emchai Limited, Tambco United Nigeria Limited and Anowat Project and Resources Limited. The court ordered the registrar to withdraw and strike out the registration and patent rights number RP 16571 and registration of industrial design rights number Rd 1361 granted the second defendant on August 31, 2006 and renamed Envopak Ballot Boxes, and registration of industrial designs rights numbers, NG/RD/2010/702 and NG/RD/2010/708 granted the third and fourth defendants on October 14, 2010 and renamed Tambco Ballot Box and Collapsible Transparent Ballot Box. Bedding Holdings Limited had, in an originating summons dated January 25, 2011 and filed by its counsel asserted its legal rights over its valid and subsist-

PUBLIC NOTICE CARING PEOPLE’S CHURCH The above named church has applied to the Corporate Affairs Commission, Abuja for registration in accordance with the provisions of the Companies and Allied matters Act, 1990. THE TRUSTEES ARE: 1) REV. LUCKY NWIKUE AROH CHAIRMAN 2) PASTOR (MRS) ELIZABETH AROH 3) PASTOR ABEL FELIX 4) PASTOR IFEANYI CHUKWU AMADI 5) ELDER LEYIRA KINANEE

MEMBER SECRETARY MEMBER MEMBER

AIMS AND OBJECTIVES 1) To Preach the gospel of Jesus Christ. 2) To develop educational works necessary for the proper growth and efficiency of the church. 3) To establish school(s) or Institution(s) for Learning. Any Objection to the registration of the above church should be forwarded to the Registrar -General, Corporate Affairs Commission Plot 420 Tigris Crescent, Maitama, Abuja within 28 days of this Publication. Signed: O. AZUBUIKE AMADI-OPARAELI ESQ S.O. NWOGU & Co, No 12 AZIKIWE STREET, DIOBU, P.H.

ing certificate of registration of industrial design rights number RD 5946 issued on January 12, 1998 by the registrar over its invention named Transparent Ballot Box (TBB) together with the certificate of registration of patent rights number RP 16642 and certificate of Copyrights design number RD 13841 over Electronic Collapsible transparent Ballot Box (ECTBB). Justice Adamu Bello, had upheld the submissions of the counsel to the claimant and granted his prayers accordingly.

Akwa Ibom to host Jonathan From Kazeem Ibrahym, Uyo

RESIDENT Goodluck Jonathan will arrive in Akwa Ibom State today for a one-day official visi. Jonathan, who is to declare open the retreat of senators in Uyo, is also expected to inaugurate the ultra-modern Ibom e-library as well as the six–lane Aka/Nung Udoe Road project. Commissioner for Information Aniekan Umanah said the e-library and the Aka–Nung Udoe Road are ready. The e-library is the first of its kind in Africa, with both an e-component facility with over 16,000,000 e-books and journals and more than 30,000 books and other facilities.

THE NATION MONDAY, JUNE 25, 2012

www.thenationonlineng.net

MONDAY, JUNE 25 , 2012 TRUTH IN DEFENCE OF FREEDOM

TODAY IN THE NATION ‘If we do the right thing, Boko Haram will go the way it came. After all, we once experienced Maitatsine in the early 80s. Boko Haram emerged as an offshoot of Maitatsine. If that body could fizzle out, there is nothing impossible with God’ SOJI OMOTUNDE

VOL 7 NO 2,167

C OMMENT & D EB ATE EBA

WONDER how it happened that President Goodluck Jonathan vacated the shores of this country and Nigerians did not miss him. This was in spite of the fact that absence, as a writer wrote into a quote of legends, makes the heart grow fonder. But Jonathan’s absence provoked a contrary sensation. Northern Nigeria was in the grips of ethnic and sectarian rage and scores melted in the inferno. But the President had enunciated his habitual refrain: he was “sad”. Rather than stay home, the consoler in chief hopped on the plane the next day into the bouffant clouds to Brazil. Away he flew, away from the perturbations of Boko Haram, away from the malignant malice of subsidy critics, from the fatal fumes of Dana Air crash, from the moral follies and counterpunches of Lawan and Otedola. More importantly, away from the fratricidal torments of Kaduna, Zaria, Damaturu and their conflagrations of flesh, blood and thunder. While some northern radicals rolled out drums of war, our president succumbed to the samba beats of Rio. While his earth burned at home, he played guest in an earth summit in Brazil’s sultry city of Rio de Janeiro. But those who criticised him realised they did not have many points anyway. When the man was here, behind the cosy redoubt of Aso villa, he never made a difference in our bloody descent into murder and chaos, in this sovereignty of fear and season of despair. So, for Jonathan, absent is present, and present is absent. Whether he sat on his presidential chair or soared away in a royal flight, it was the same story. He is always away. Now you see him, always you see him, but you don’t. It was therefore darkly comical when his spokespersons said he could govern from anywhere. E-governance? Technology, for all its gifts, cannot replace human presence or the tactile triumphs of present leadership. They probably meant he could misgovern from anywhere. He probably wanted to equate himself with a leader like Charles de Gaulle, the leader of the Free French during the Second World War. The soldier with an apparent royal carriage, furnace-hot rhetoric and crafty alliances led the French when his country was under occupation by the rampaging Nazi. De Gaulle was in an imposed exile. Jonathan’s was different. His absence was what Shakespeare defined as “self from self – a deadly banishment.” He is alienated from the nation’s fount of being. Who would be inspired by an absentee leader? “Faith comes in moments, vice is habitual,” wrote American essayist Ralph

..Please don’t bring God’s name into Nigeria’s CORRUPTION POLITICS

HARDBALL

•Hardball is not the opinion of the columnist featured above

Beyond Azazi’s sacking

sideration. Indeed, Jonathan in picking a Northerner may just have confirmed Azazi’s thesis that the rise of the insurgency is rooted in regional political calculations. Dasuki, because of his background, is an interesting pick. The president must be hoping he would get better cooperation up North, and crack the seemingly impenetrable barrier that has shielded the key elements of Boko Haram up till now. It will be interesting to see whether Jonathan will pick another Northerner as Defence Minister. If he goes for one then the trust of his new strategy would be confirmed. That said, we must not forget that Bello Haliru, who just lost his job, was also a well-connected North-Westerner. In the end we must be clear that the designation of Azazi and his successor remains “Adviser.” They can come up with the most inspired and bold initiatives but the buck stops at Jonathan’s table. He must be ready to make the necessary tough calls to rein in the rampaging terrorists who have turned the North into one large killing field. Until he’s ready to do that, all the dramatic sackings would only create a sense of motion with no discernible forward movement.

SAM OMATSEYE

IN TOUCH

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

Absent in chief

• Jonathan Waldo Emerson. In the course of a leadership, one or two or three actions fire the people’s love like Lincoln’s Gettysburg Speech, Napoleon’s European campaigns, Mandela’s first-term resolve, Roosevelt’s Pearl Harbour moment. Jonathan has bungled his moments. The best in the past century was probably Churchill’s during the Second World War when his country burned under German pounding: “In war, resolution; in victory, magnanimity; in defeat, defiance,” he sang. Our president has not yet inspired faith. His trip to Brazil happened at the same time the Brazilian national team disavowed any intention to visit Nigeria for a match with our national team. In a curious way,

RIPPLES BRIBERY SCANDAL: God will vindicate me–Lawan

both President Jonathan and the Brazilian team voted against Nigeria with their feet or, shall we say, with their flights. Ironically, some countries with less pressing matters did not attend. They included President Barack Obama of the United States and Prime Minister David Cameron of Britain. They did not experience, at home, scores of people dying from machetes and bombs. They did not witness the fall of men and women from ethnic bile. For less important matters, US Presidents call off their vacations. During Hurricane Katrina that swept New Orleans, President George W. Bush flew through the disaster area and asked the Air Force One pilot to fly low while he watched the waves savage his people. It was executive cynicism. Americans flayed and flailed at the President for abandoning his post for a fund raiser in Arizona. He had even praised the man in charge of national disaster for doing a good job. Of course, the man did not last. He had to quit. But Bush did not leave his country as Jonathan did. He did not take the largest contingent of about 142 people to a conference in which he gained little and contributed little. If he were required to give a keynote address about his experience in sustainable development, one would have flattered his vanity and weighed the matter differently. Even at that, he could have sent somebody. But Nigeria had no special story to tell the world about how it handles its environment, especially for a president who hails from the roiling Niger Delta where the oil titans like Shell, Chevron, Elf have devastated our soil and waterways, where poverty is the metaphor of the subaltern souls. Even though he spoke, he never stoked any great emotions because his story was banal.

In an ambience of oil subsidy wastes amidst poverty, Nigeria has no cheery tale to tell about sustainable development. Leaders of those countries where we plan to invest our sovereign funds did not even attend the summit. Astronomer Carl Sagan once asserted that the absence of evidence is not the evidence of absence. In Jonathan’s case, the absence of evidence is evidence of absence. Sagan would have appreciated the Jonathan exception. He came back and fired Owoye Azazi and Haliru Mohammed, national security adviser and defence minister. In a drama-perweek presidency, was it a panic measure? I am not sure he fired Azazi because he had a new strategy for security. He just wanted a sense of change. Azazi reportedly reacted to his firing by describing his former boss as a weakling. He has denied it. He may well not have said it. A former chief of army staff and defence served under a weakling for about two years? Who is the weakling? Azazi himself showed an act of “courage” about two months ago when he put the blame of Boko Haram at the doorstep of zoning, the flouting of which made Jonathan president. If Azazi was discontented why did he not have the courage to quit? He waited to be fired. The tougher guy may be Jonathan for firing him, or shall we say tougher weakling. The choice of Colonel Sambo Dasuki is curious. I hope it is not a royal sup and cynical acquiescence to the blueblood of the North. That is to be seen. But Jonathan’s return reminds me of a play I read and saw years ago in the US and it was titled Day of Absence by playwright Douglas Turner Ward. The play has been a reference point in African Americans’ million man marches. It is a play based on a fictional town in the Deep South. The whites woke up to find that all the blacks had left town. They were shocked to the bone and the mayor started appealing to the governors and president to call all their blacks back home. The mayor noted that the whites missed all the cleaners, drivers and other low-end workers in town. Eventually, all the blacks returned. But the whites knew their moral foundation had been shaken And they had to now rethink their regime of racism. The absence upbraided the society’s pecking order. Other than firing Azazi and Mohammed, do Jonathan’s days of absence promise any change? To convince us, he must weave comprehensive strategies that go beyond the faded glories of token arrests, reactive soldiers, states of emergency and rhetoric of regrets.

IVEN the intensity of the Boko Haram insurgency in recent times, and the ineffectiveness of government strategy for containing it, you didn’t need to be clairvoyant to predict that the tenure of erstwhile National Security Adviser (NSA), General Andrew Azazi, would be short-lived. He didn’t make life easier for himself by succumbing to a sudden need to be candid. In Nigeria, people in his position don’t speak inconvenient truths – at least not in public fora. But that was exactly what the former NSA chose to do when he showed up at the Southsouth investment summit in Asaba in April. He pointedly blamed internal Peoples Democratic Party (PDP) intrigues for the rise in insecurity across the North. He famously said: “How come the extent of violence did not increase in Nigeria until the public declaration of the people that were going to contest election by the PDP? And I would also like to say this, though the PDP people will not agree with me, they would like to attack me, but I hope they do it in private: PDP got it wrong from the beginning by saying Mr A can go and Mr B cannot go, and these decisions were made without looking at the constitution. “Is it possible that somebody was think-

ing that only Mr. A could win and that if he could not win, there would be problems in this society? “Let’s examine all those issues to see whether the level of violence in the Northeast just escalated because Boko Haram suddenly became better trained, better equipped and better funded or something else was responsible.” His comments were so embarrassing that President Goodluck Jonathan was forced to come out publicly to fault his utterances. When your principal begins to have open disagreements with you, your days are numbered. Since the sackings were announced on Friday one or two snippets have appeared in the media shedding light on the nature of the working relationship between president and adviser, and also showing the peculiar difficulties Azazi faced in his role. In picking Colonel Sambo Dasuki (rtd), Jonathan has not gone for a like-for-like replacement from the same geo-political zone. This confirms that in making appointments like those for the office of the NSA, professional competence is not the overriding con-

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