Tuesday 5th April 2016

Independent Marketers Accept Blame for Fuel Scarcity FG to end sharp and unfair practices in oil and gas Saudi Arabia moves to reduce Iran’s oil exports

Ejiofor Alike in Lagos and Chineme Okafor in Abuja with agency reports

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has exonerated the federal government of any blames

associated with the current lingering fuel shortages across the country, clarifying that Nigerians should rather blame the prolonged leadership crisis

that had rocked the association as the cause of the crises.

The association also said the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu,

should not be held responsible for petrol scarcity as their nearly two years of fighting over leadership positions in the association had contributed

maximally in the current petroleum product scarcity.

According to the Interim Management Secretary of IPMAN, Mr. Lawson Ngoa,

Panama Papers’ Leak Provoke Global Calls for Investigations... Page 8

the rivalry between two IPMAN national factions has crippled the importation and distribution of petroleum products in Nigeria especially by independent marketers who control about 80 per cent of Continued on page 6

Tuesday 5 April, 2016 Vol 21. No 7649. Price: N150

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Buhari Blames PDP for Nigeria’s Economic Woes We failed to save for the rainy day, says Ajimobi Tobi Soniyi in Abuja and Ademola Babalola in Ibadan President Muhammadu Buhari yesterday held the Peoples Democratic Party’s 16-year reign responsible for the nation’s prevailing economic woes and said the party failed to save for the rainy day.

“In the First Republic, more enduring infrastructure was

built with meagre resources.

But in the past 16 years, we made a lot of money without planning for the rainy day”, the President said at a reception for a delegation of the International Civil Aviation Organisation (ICAO), led by its President, Dr. Bernard Aliyu, at the Presidential Villa, Abuja.

Continued on page 8

Nationwide Darkness Worsens TCN explains power outages

Ejiofor Alike in Lagos and Chineme Okafor in Abuja The epileptic supply of electricity across the country has persisted and is not likely to go soon as vandalism of pipelines has prolonged the perennial shortage of gas to thermal power plants, THISDAY has learnt.

This is coming as the System and Market

Operation Departments of the Transmission Company of Nigeria (TCN) yesterday explained why Nigeria’s current electricity generation has remained quite low in recent weeks, blaming the situation on gas shortages to the generation plants in the southern part of the country.

Continued on page 6

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TUESDAY, APRIL 5, 2016 • T H I S D AY

PAGE SIX

PIB: Ijaw Youths Warn Against Removal of Oil-producing Communities’ Fund Emmanuel Addeh in Yenagoa As the National Assembly prepares to kick off debates on the controversial Petroleum Industry Bill (PIB), Ijaw youths yesterday cautioned against the removal of the oil-producing communities' fund clauses in the bill.

Speaking through their umbrella body, the Ijaw Youths

Congress (IYC), the body warned that removing the clause that is aimed at uplifting the oil-bearing communities from poverty, would be counterproductive as it could incite the people to return to bear arms.

Former President Goodluck Jonathan’s version of the bill, which could not be passed during the life of his administration, had provided for the fund in Section

116, which set aside the special fund for the people resident in oil-producing areas. It stated: “There is established a fund to be known as the Petroleum Host Communities' Fund.”

Stating the purpose of the fund, Section 117 of the bill said it “shall be utilised for the development of the economic and social infrastructure of the communities within the

petroleum producing area”.

The bill also created the Petroleum Host Communities' Fund and prescribed 10 per cent of the net profit of upstream oil companies to be paid into the fund for the development of the host communities.

But the Ijaw youths in a statement by the IYC spokesman, Eric Omare, said there was a plan to remove the special fund

clauses from the bill and warned that doing so would attract angry protests from the oil-bearing communities, particularly those in the Niger Delta.

"This plan is obviously an invitation to renewed hostilities and agitations in the Niger Delta region. The IYC enjoins Nigerians and men of conscience to reject this plan,” they said.

Explaining that the oil

communities’ development fund was a laudable initiative aimed at making oil-producing communities stakeholders in the oil resources produced in their area as well as address the challenge of sabotage and associated challenges. The youths said the planned removal of the fund would upset the relative peace currently prevalent in the Niger Delta region.

Mr. Anwar Jarmakani that the country was losing between $3 and $5 on every barrel of oil produced, or $1.5 billion yearly to non-existent laws, which conferred monopoly to an unnamed oil and gas logistics provider in the country.

The NCS boss, who visited Nigerdock Yard at Snake Island in Lagos on Monday, further stated that Buhari’s government stood for equity, justice and fairness, adding that the NCS had no choice than to work along the path of the administration.

“In the past, certain things were done but not in accordance with the laws. I can assure you that if we find anything contradictory to the laws, we will correct it. It is our responsibility to ensure that investors and every player succeeds in Nigeria as we look forward to a successful Nigeria.

President Muhammadu Buhari’s government is a government of equity, fairness and justice. If we see things that were not done in accordance with the laws, we will correct it,” Ali said.

The NCS boss, who said he was impressed with the huge investments in the Snake Island free zone, assured that the federal government would do everything possible to encourage more investments in the zone and create more job opportunities for Nigerians, in line with the administration’s commitment to create jobs.

In his speech, Jarmakani, who is also the Chairman of Jagal Group, owners of Nigerdock, said a dominant monopoly in Nigeria’s oil and gas, as well as supply services had existed for over 20 years, “sabotaging the national economy, conspiring and working against any potential competitors, particularly against

Snake Island Integrated Free Zone”.

He said the monopoly had consistently and aggressively used different government institutions to entrench its position with impunity.

“Regrettably, attempts have been made in the past to also use the Nigeria Customs Service.

We, therefore appreciate the fact that the present administration is aggressively doing away with such impunity,” he added.

Jarmakani added that this monopoly has damaged Nigeria’s international reputation, while oil and gas supply and logistics service in the country has become the most expensive in the world because of this monopoly.

According to him, this monopoly has over the last 20 years used a non-existent law to justify the assertion and false claim that “all oil and gas cargo must first be discharged at their ports of preference.”

He noted that the number of ports owned by this monopolist had increased from one to five.

On the global scene, as Iran’s decision to increase her crude oil exports to four million barrels per day before joining a global agreement on freezing production continues to threaten the global output freeze deal, Saudi Arabia has taken steps to slow Iran’s efforts at increasing exports by banning vessels that transport Iranian crude from entering their waters.

Production freeze is aimed at checking the inflow of oil into the market, a strategy designed by oil producers to shore up the tumbling price of the commodity that is the mainstay of the Nigerian economy.

With the low oil price adversely affecting the Nigerian

economy and rousing the country to pay more attention to other sources of income, the federal government said on Monday that it would end all sharp and unfair practices that had been fleecing the nation’s purse.

Iran had decided not to join the coalition for production freeze until its export target of four million barrels per day was achieved, a position that tallied with that of Russia, which also planned to export more crude oil to Europe in April than it had exported in any month since 2013, thus threatening a global agreement aimed at lifting the price of crude.

Financial Times reported that Iran already faces insurance, financing and legal obstacles despite the lifting of sanctions linked to its oil industry in January.

Under a nuclear deal with world powers, Iran was allowed to resume crude exports to Europe and other destinations.

But since the lifting of sanctions, Iran has managed to sell only small volumes of crude to Europe, including barrels to Spain’s Cepsa, Total of France and Russia’s Litasco.

By mid-April, only about eight tankers will have sailed from Iran’s Kharg Island for Europe, said shipbrokers, with only 12 million barrels booked to sail.

Iranian vessels carrying the country’s crude are restricted from entering ports in Saudi Arabia and Bahrain, according to a circular sent by a shipping insurance company to its members in February.

The notice said ships that have called to Iran as one of its last three ports of entry will also require approval from the Saudi and Bahraini authorities

before entering their waters.

Shipbrokers and traders have relayed the same messages since.

Iran is also yet to regain access to storage tanks at a key oil transit hub on Egypt’s Mediterranean coast, which is part-owned by Saudi Arabia Oil tanker association, Intertanko, and other industry participants say no formal notice has been given by Saudi Arabia but uncertainty is making some charterers less willing to lift Iranian crude.

Diplomatic tension between Saudi and Iran, which worsened during the bloody conflict in Syria, is seen influencing the commercial sphere with both countries battling for market share amid the collapse in oil prices.

OPEC and Non-OPEC members are set to discuss plans to freeze output on April 17 — the first concerted action to halt an oil price rout that has shredded producer countries budgets.

But last week, Deputy Crown Prince Mohammed bin Salman said Saudi Arabia would not hold output steady unless joined by Iran, which has said it plans to regain its post-sanctions output level before agreeing to any freeze.

Part of the slow increase in exports to Europe has been the lack of access for Iran to facilities operated by the Arab Petroleum Pipeline Company, known as SUMED. Before the imposition of sanctions Iran used to send crude from the Red Sea to the Mediterranean on the company’s lines.

The facility is 50 per cent owned by Egypt, with Gulf Arab allies Saudi Arabia, Kuwait and the UAE together owning 45 per cent.

be a problem until the country has super transmission grid.

Super transmission grid is a model transmission line that can take huge power. We need to construct super grid to reduce system collapse,” he added.

But a top official of the Nigeria Electricity System Operator told THISDAY that vandalism was responsible for the current drop in power supply.

“Gas pipelines have been vandalised and they are doing it continuously. Some plants went down last week because of lack of gas and it caused system collapse.

So, it is really not a transmission problem,” said the official.

Also a Chief Executive Officer of one of the oil and gas exploration and production (E &P) companies, who did not want to be quoted, told THISDAY that the current poor power situation was caused by vandalism of the Forcados pipeline.

According to him, the problem of E &P companies was not the drop in oil price but production deferment caused by vandalism of oil and gas pipelines.

“Last year, we suffered almost 100 days of production deferment out of 365 days in the year. We are just beginning this year and we have suffered almost 50 days.

All the companies using Forcados pipeline have not been producing since the past six weeks but they are doing all they can to evacuate condensate gas to keep delivering gas for power generation. If they have not been doing that, the current power situation would have been worse,” he explained.

The Trans-Forcados Pipeline, which is operated by Shell Petroleum Development Company of Nigeria Limited (SPDC), belongs to the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

Shell had on February 21, 2016 declared force majeure on Forcados liftings effective 1500hrs (Nigerian time), following the disruption in production caused by the spill on the Forcados Terminal subsea crude oil export pipeline.

According to Shell, diving teams, which inspected the

export pipeline reported extensive damage that was consistent with the application of external force, an indication that it was sabotage.

The closure of the oil pipeline, which also accounts for 40-50 per cent of the country’s gas production led to the current drop in power generation, THISDAY has learnt.

The pipeline is a crude oil facility, but the gas and liquid condensates produced from gas fields in the western Niger Delta are evacuated through the pipeline, hence its closure has also affected the supply of gas to the power stations.

However, the Minister of State for Petroleum, Dr. Ibe Kachikwu, said the repair of the pipeline could last up till May. TCN said yesterday that disruption of gas supply to power stations had resulted in the momentary total collapse of the electricity system last week when the country had zero megawatts of power for transmission and distribution.

The statement further noted that during that period, the

Osogbo/Ihovbor and Ihovbor/ Benin 330kV transmission lines were completely down.

"The Management of System Operation/Market Operation

INDEPENDENT MARKETERS ACCEPT BLAME FOR FUEL SCARCITY the fuel distribution network.

Ngoa explained in Abuja that Kachikwu had only intervened to end the crisis in his resolve to end the current fuel scarcity and could not be blamed for it.

He noted Kachikwu in trying to reconcile the factions and revive sanity in their operations, inaugurated IPMAN reconciliation and interim management committee to resolve the crisis and how it contributes to scarcity of petroleum products.

While shielding Kachikwu from the blame, Ngoa stated in a statement that the minister is completely innocent of the petroleum products scarcity as he inherited a crises ridden petroleum sector.

He further stated that IPMAN accepts all responsibility for the difficulties suffered by Nigerians while agreeing that IPMAN is now ready to commence distribution of products following the reconciliation brokered by Kachikwu.

"With the increase in percentage of product to IPMAN and other incentives made available by the federal government through the minister of petroleum, the fuel scarcity will end in weeks," said Ngoa.

He urged all Nigerians to support the federal government and the minister of petroleum to end the scarcity.

Also speaking on the fuel scarcity, the Chief Operating Officer (COO) Downstream of the Nigerian National Petroleum Corporation (NNPC), Mr. Henry Ikem Obih, has said that it would take the cooperation of all stakeholders in the country’s downstream petroleum sector to clear out the lingering queues for fuel at filling stations in the

country.

Obih, who said more cargoes of petroleum products had been pumped into the market, explained that until everyone in the value chain honestly play their roles in the supply and distribution of petrol in the country, the long queues of vehicles waiting to buy fuel would not vanish.

He said that the NNPC alone would not be able to end the scarcity because it does not have all that is necessary to do that under its control.

According to him, instances of products diversions and operators’ reported reluctance to discharge and sell fuel allocated to them on time were noticed at some of the stations he inspected.

He said that such cases should be taken up and investigated by the Department of Petroleum Resources (DPR) to discourage the practice of operators’ preference for black market sale of petrol across the country.

Meanwhile, the federal government is set to reverse any decision made in the oil and gas sector, which is contradictory to the laws of the country.

The government’s commitment against fleece came through the Comptroller-General of Nigeria Customs Service, Col. Hameed Ibrahim Ali, who upon hearing that the nation had been losing $1.5 billion annually due to illegal monopoly by an oil servicing company, said President Muhammadu Buhari’s administration would stamp out all unwholesome practices that are inimical to the economic interest of the country.

Ali’s remark is coming in the wake of a revelation by the Chairman of Snake Island Integrated Free Zone (SIIFZ),

NATIONWIDE DARKNESS WORSENS TCN also explained that each time the country's electricity generation falls below 3,500 megawatts (MW), there will be little power in the dedicated spinning reserve, hence the possibility of transmission system collapse.

THISDAY gathered that the country has witnessed persisted power outages in recent weeks after the much-celebrated all-time peak of 5,074 megawatts of electricity generation on February 2, 2016, following months of honeymoon enjoyed by the administration of President Muhammadu Buhari with respect to pipeline vandalism.

THISDAY checks revealed that recent attacks on crude oil and gas pipelines may have signalled the end of the honeymoon and ushered in a period of darkness witnessed in recent weeks, as vandalism of gas pipelines disrupted supply of feedstock to gas-fired power generating plants, which account for over 78 per cent of power supply in the country.

The situation had worsened

last Thursday when the whole country was plunged into darkness due to a nationwide system collapse.

The Chief Executive Officer of one of the electricity distribution companies (Discos) told THISDAY yesterday that during last Thursday’s system disturbance, the 11 distribution companies were only “on station supply” where they could not service their customers.

“When you are on station supply, there is no power to give to your customers. This is because some power plants went down due to non-supply of gas.

The only power you get from the national grid when you are on station supply is what you will use to run your base radio.

You can’t send it to customers,” the CEO, who opted not to be quoted, said.

He also blamed weak transmission network for the country’s current power woes, saying that only a super grid would solve the country’s transmission challenges.

“Transmission will continue to

Continued on page 8

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Panama Papers’ Leak Provokes Global Calls for Investigation Saraki : I've fully complied with the law Joseph Ushigiale in Lagos and Omololu Ogunmade in Abuja with agency reports The latest leak of secret transactions in documents now christened the ‘Panama Papers’ has provoked governments across the world to order investigations that could unravel possible financial wrongdoing by the rich and powerful, Reuters has reported.

Reuters yesterday reported a leak of four decades of documents from a Panamanian law firm that specialised in setting up offshore companies even though some of those named in the leaked report have denied any wrongdoing.

The "Panama papers" revealed financial arrangements of global politicians and public figures, including friends of Russian President Vladimir Putin, relatives of the prime ministers of Britain, Iceland and Pakistan, and the president of Ukraine.

The President of the Senate, Dr. Bukola Saraki’s family was also reportedly named in the leak, according to an online news medium, the Premium

Times, which claimed that the expose might worsen the Senate President’s battles at the Code of Conduct Tribunal where he is facing a 13-count charge of alleged concealment of assets.

But Saraki reacted swiftly last night and said he had fully complied with the provisions of the law on declaration of assets by public officers.

He said the claim contained in the Panama-based offshore provider, Mossack Fonseca, and shared by the International Consortium of Investigation Journalists (ICIJ) that he failed to declare assets belonging to his wife, Toyin, in secret offshore territories, was false.

Saraki said he had in his different asset declarations included properties owned individually by himself and his wife.

“The property in question forms part of Dr Saraki's wife's family asset. It is public knowledge that Mrs. Saraki comes from a family of independent means and wealth with numerous and varied assets acquired

of spouse's family assets."

While holding money in offshore companies is not illegal, journalists who received the leaked documents said they could provide evidence of funds hidden for tax evasion, money laundering, sanctions busting, drug deals or other crimes.

The law firm, Mossack Fonseca, which says it has set up more than 240,000 offshore companies for clients around the globe, denied any wrongdoing and called itself the victim of a campaign against privacy.

The Kremlin said the documents contained "nothing concrete and nothing new" while a spokesman for British Prime Minister David Cameron said his late father's reported links to an offshore company were a "private matter".

Iceland's Prime Minister Sigmundur Gunnlaugsson could not immediately be reached for comment on the naming of his wife in connection with a secretive company in an offshore haven, which brought opposition calls for him to resign.

Pakistan denied any wrongdoing by the family of Prime Minister Nawaz Sharif after his daughter and son were linked to offshore companies. Ukrainian President Petro Poroshenko did not comment on his reported offshore links.

Australia, Austria, France, Sweden and the Netherlands were among countries which said they had begun investigating the allegations, based on more than 11.5 million documents from Mossack Fonseca.

Banks came under the spotlight for allegedly helping clients hide their funds offshore.

The documents, covering a period from 1977 until last December, were leaked to more than 100 news organisations around the world, cooperating with the ICIJ, a Washington, D.C.-based network.

The head of Mossack Fonseca, Ramon Fonseca, has denied any wrongdoing but said his firm had suffered a successful but "limited" hack on its database.

He described the hack and leak as "an international campaign

against privacy".

"I think the leak will prove to be probably the biggest blow the offshore world has ever taken because of the extent of the documents," ICIJ director Gerard Ryle said.

The documents showed a network of unconfirmed secret offshore deals and loans worth $2 billion lend to associates of Putin, including concert cellist Sergei Roldugin, a childhood friend of the president, but Putin's spokesman dismissed the reports, saying they aimed to discredit him ahead of upcoming elections.

"This Putinophobia abroad has reached such a point that it is in fact taboo to say something good about Russia, or about any actions by Russia or any Russian achievements. But it's a must to say bad things, a lot of bad things, and when there's nothing to say, it must be concocted," he said.

The British government asked for a copy of the leaked data, which could be embarrassing for Prime Minister Cameron, who has spoken out against tax evasion and tax avoidance.

and air navigation, runways, control towers and terminal buildings.

In Ibadan, Governor Ajimobi took a cue from President Buhari and attributed the pervading economic woes besetting the country to past regimes' failure to save for the rainy day during the oil boom, which, he said, was worsened by the neglect of agriculture.

He said: “We did not save for the raining day when there was oil boom in the country. We relied heavily on income from oil. But we have all been jolted into reality now that a barrel sells for all-time low of $30.

“Nigeria has depended so much on oil which has now lost its value at the international market. So we have to look for alternative sources of revenue which is through aggressive investment in agriculture”.

The governor spoke yesterday during the state’s Agriculture Initiative Stakeholders’ Consultative Forum, held at the House of Chiefs, Parliament Building in Ibadan and said the forum was aimed at involving stakeholders in his administration’s resolve to diversify the economy of the state through the exploration of aggressive, all-inclusive and sustainable agricultural value

chain.

The forum was attended by royal fathers, including the Alaafin of Oyo, Oba Lamidi Adeyemi; Olubadan of Ibadanland, Oba Saliu Adetunji; Baales; local government transition committee chairmen and other stakeholders in the 33 local council areas of the state.

Ajimobi said the dwindling allocation from the Federation Account due to the fall in the price of petroleum in international market had called for massive investments in farming.

According to him, “The fall in crude oil price has done more good than harm as it has opened our eyes to the effectiveness of mechanized farming as our saving grace”.

The governor said Oyo has the largest expanse of arable land in the entire South of the country with 28,545 square kilometres, adding that it also has the largest concentration of agriculture research institutions in Nigeria.

Besides, he said, the state was strategically located to be the food basket of Nigeria, expressing regrets, however, that its potential had remained largely untapped over the years, short-changing the state of the huge revenue that could have accrued from agriculture.

Ajimobi, who said 28 out of the 33 local government areas in the state have been identified as agrarian, added that 100 hectares of land would be set aside in each of the council areas for cultivation.

He said the scheme would be all-inclusive, as it would involve students, civil servants, the state-owned College of Agriculture, Igboora as well as other agriculture research institutions based in the state.

While soliciting the support of the traditional rulers for the scheme, the governor said it would be driven by the monarchs whom he described as not only the custodians of the people’s culture and tradition, but also fathers of all.

He urged that the royal fathers should embark on the mobilisation of their subjects immediately on the need for them to see agriculture as the major bail out from the economic crisis currently confronting the country.

While speaking on his administration’s efforts at improving the state’s internallygenerated revenue, Ajimobi said an arrangement had been concluded to also shift attention to mining as a money spinner.

“The mining sector will be critically looked into as there are

federal and state laws that require miners to get government’s approval before embarking on mining activities,’’ he said.

The governor said henceforth, approval for mining activities by mining agents should be sought from the state government through traditional rulers in the affected communities. ``Government agencies will be visiting communities to enlighten royal fathers and community people on ways to go about this without undermining the necessary inputs of the government as it had always been,’’ he said.

The traditional rulers, who spoke at the occasion, lauded the government’s initiative which they described as a veritable means of providing sufficient food for the teeming populace and increasing government’s revenue. They pledged to mobilise the people in their respective domains to key into the new agriculture initiatives of the state government.

The traditional rulers who spoke at the consultative meeting included the Oba Adeyemi III; Oba Adetunji; the Onipetu of Ijeru, Oba Sunday Oyediran; the Akibio of Ilora, Oba Stephen Oyeniyi; and the representative of the Soun of Ogbomoso, Chief Samuel Sobaloju.

the lot of Nigerians.

Rising from its Central Working Committee (CWC) meeting presided over by Ajaero, with all National Administrative Council members and affiliates in attendance, the labour centre also urged the federal government to halt any further privatisation plan it might have to avert greater danger of poor performance by the electricity distribution companies (Discos).

"Electricity has become an essential commodity, public utilities have since gone to the dogs, staple food items' prices are completely out of reach of the ordinary people, petroleum products have grown wings and vanished, compounding in the process an already bad transport system for the poor, reducing Nigerians in all parts of the nation to compulsory trekkers," the Congress said.

The labour body bemoaned the current state of power generation which he said had plummeted to only about 2, 000MW, saying it showed the failure of

government's privatisation policy.

The NLC stated that going ahead with the privatisation of national assets such as Nigerian Railways and the NNPC, which government plans to unbundle, would portend greater socioeconomic danger for the nation.

It, therefore, called for the withdrawal of approved licences issued to individual miners who have failed to commence operations long after the licences were issued to them.

Labour faulted government's promise that it is going to deliver 10, 000 MW of electricity in four years, insisting that government lacks the capacity to do so since it must first build power stations to deliver on the promise.

"The average number of years to complete a power station is four years. We are not aware of any power station to be commissioned in the next four years. Even when you have 10, 000MW, you must have a transmission network that will convey the 10, 000MW," said the Congress.

On the persisting scarcity of petroleum products, organised labour said that the only way out is for government to take steps to ensure that more petroleum refineries are built across the federation to boost supply of the products.

According to the President, National Union of Petroleum and Natural Gas Workers (NUPENG), Comrade Achese Igwe, “It is sad that 15 years after government issued licences to private individuals to build refineries, only one or two persons, including Alhaji Aliko Dangote are currently building private refineries.”

He urged government to review all those to whom licences were issued but do not have the capacity and commitment to commence the projects.

Also intervening in the current hardships being faced

by Nigerians, a civil society organisation, Socio-Economic Rights and Accountability Project (SERAP), has urged President Buhari to exercise his authority

as the Minister of Petroleum Resources by prioritising the sector and coordinating government responses to the fuel scarcity across the country.

SERAP said the worsening fuel scarcity was exacerbating poverty and stripping millions of Nigerians of any real opportunity to exercise their human rights and take on responsibilities.

The Executive Director of SERAP, Adetokunbo Mumuni, in a statement yesterday said: “The longer this fuel scarcity continues, the greater the difficulties Nigerians will face.

President Buhari now has to take control of the Ministry of Petroleum to end the continuing suffering by ensuring that fuel is available and properly distributed across the country.”

He added: “Nigerians need a permanent solution to the fuel crisis. Given the country’s status among oil producing countries, this government must not fall for the quick fix that characterised the policies of successive governments.”

Saraki over decades in family estates and investments,” he said in a statement by his media office.

He explained: "Furthermore, the law only requires a public officer to declare both his own assets and those held by his spouse and his children under 18 years of age. The law does not require a public officer to declare assets held by the spouse's family.

"It is not expected by the law that a public officer should declare such assets held in the spouse's family estate. Indeed, the Code of Conduct form does not make provision for declaration

BUHARI BLAMES PDP FOR NIGERIA’S ECONOMIC WOES “We showed a lot of indiscipline in managing our economy, and that is why we are where we are today” President Buhari said firmly, promising, however, that his administration would do its best to turn things around.

The President’s views echoed in faraway Ibadan, the Oyo State capital, where Governor Abiola Ajimobi attributed the comatose state of the economy to the country’s failure to save for the rainy day during the oil boom.

President Buhari in his presentation to the ICAO delegation explained that the country witnessed a decline in the quality of infrastructure development in the last 16 years in spite of the boom in oil prices, adding that even the First Republic administration with its meagre resources achieved much more.

He regretted that the PDP governments failed to grow the economy with the all-time rise of crude oil sales that hovered around $100 per barrel. “We showed a lot of indiscipline in managing our economy, and that is why we are where we are today”.

President Buhari said Nigeria needed to grow beyond emphasising its potential and

assured Nigerians that his administration would do its best to develop the economy beyond rhetorics.

Said the President, “Nigeria needs to work on her potential, so that we don’t remain permanently at the level of potential. If Ethiopia is sustained largely by her airline industry, we have greater potential here. But we must move out, engage with the rest of the world, as we need to re-establish the integrity of this country. We need to rebuild this country again”.

Speaking earlier, Aliyu, the Nigerian-born ICAO president, commended President Buhari for his commitment to fight corruption and urged Nigerians to stand with their president in the on-going war against graft.

He asked Nigeria to pay more attention to the development of civil aviation.

“Civil aviation is a catalyst for economic development. The level of aviation development in any country mirrors the economic development of that country”, he said.

The ICAO president also pledged to support the development of the aviation industry in Nigeria, urging the country to improve on training and capacity development, aviation security, aerodromes

NATIONWIDE DARKNESS WORSENS (SO/MO) of the Transmission Company of Nigeria (TCN) informs that at 12:35Hrs on March 31st, 2016, the Nigerian electric power grid experienced a total system collapse.

"It was caused by the tripping of Osogbo/Ihovbor and Ihovbor/ Benin 330kV transmission lines, which resulted in loss of 201MW generation from Ihovbor power station," said the statement.

It further explained: "The generation/load imbalance that ensued, defined by sudden decline in system frequency, culminated in the collapse".

"Total grid generation at collapse inception was 3,196.0MW. The low generation at the time was due to shortage of gas supply to generators. The transmission grid is characteristically susceptible to system collapses when generation is below 3,500MW and the available spinning reserve capacity is low."

TCN said it was working assiduously to consolidate the gains it recorded in system stability, and which it said

resulted to substantial reduction of system collapses from 22 in 2013 to nine in 2014 followed by six in 2015.

"A substantial number of these collapses are attributable to low system generation due to gas supply issues which impacts stability.

"The improvement in system stability is also evidenced by the fact that TCN has been able to wheel maximum energy of 109,372MWH on 2nd of February, 2016 while the peak power transferred on the same day was 5,074 MW," the TCN said while stating its regrets for the collapse.

Meanwhile, the Nigerian Labour Congress (NLC) faction of Mr. Joe Ajaero yesterday in Lagos called on the government to address the socio-economic challenges facing the nation.

The Congress called on President Muhammadu Buhari to quickly fix the energy crisis, worsening unemployment situation, increasing suffering and deprivations that have become

TUESDAY APRIL 5, 2016 • T H I S D AY

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News Editor Davidson Iriekpen Email davidson.iriekpen@thisdaylive.com, 08111813081

FG, Devt Partners Complete North-east Pre-financing Assessment Needs $9bn for rehabilitation and reconstruction

Stories by Tobi Soniyi in Abuja The federal government has completed a pre-financing assessment of the developmental needs of terrorism ravaged Northeastern part of the country.

A statement issued in Abuja yesterday by the Senior Special Assistant to the Vice-President on Media and Publicity, Laolu Akande, said the assessment was jointly carried out by the federal and state governments alongside global partners: the United Nations, World Bank and the European Union.

Akande said the signing of the pre-financing assessment had raised the hope for the return of millions of internally displaced Nigerians to their homes and communities.

The Three-volume report of the Nigeria Recovery and Peace Building Assessment (RPBA) recommended a two-phase strategic plan of two years for stabilization and a recovery phase of two years to restore the North-east to progress and development. The two phases of stabilisation and recovery are fluid and will run concurrently, covering such areas as agriculture, housing, transportation and education over the period.

The Nigeria Recovery and Peace Building Assessment (RPBA) is the process that assesses the physical, social and economic impacts of the crisis in the North-east, resulting in a report to guide the process of stabilisation in the region through a variety of recovery strategies.

These strategies will help reduce suffering in the affected communities, restore a sense of normalcy and regain the trust of people in the region.

The RPBA findings estimated that about $9 billion dollars will be required for the rehabilitation and reconstruction of damaged infrastructures in the six North-east states of Adamawa, Bauchi, Borno, Gombe, Taraba and Yobe.

The findings also revealed that the six states would need $6.4 billion to undertake recovery efforts to cushion the devastation inflicted on the North-east region between 2011 and 2015.

The assessments were carried out under the three main components of Infrastructure and Social Services, Peace Building, Stability & Social Cohesion, and Economic Recovery with focus on cross-cutting issues such as

governance and accountability, citizen engagement, institutional capacity for implementation, gender, youth, human rights and de-mining.

The federal government had in January unveiled this assessment programme which is a joint, high-level collaboration between the government of Nigeria and three global development partners - the World Bank, EU and the UN aimed at supporting government in its short and medium term efforts towards peace building and sustainable recovery in the North-east region of the country.

Akande said the global partners who signed a tripartite agreement to facilitate the assessment were expected to support the federal government in the financing of the North-east reconstruction, including an offer by the World Bank to make available $800 million towards the rebuilding.

According to him, there are also clear indications from the global partners to do more in terms of putting in place an institutional framework to rebuild, arranging financing even from other development agencies and additional sources.

The statement said: “The assessment and validation exercises completed in Nigeria’s North-east region has revealed the quantum of damage and the requirements to address the post- conflict recovery.

For instance while the extent of damage was put at about $9b, the assessment revealed that over $6b would be needed for immediate and near term stabilization and recovery of the region.

“During the final aspects of the assessment late last week in Abuja, international development partners and donors reiterated their commitments towards ensuring that key findings of the assessments are implemented.

“This re-assurance was secured after the completion of the 2-day validation and consensus building workshop at the Transcorp Hilton Hotel in Abuja, convened by the federal government, World Bank, the European Union and the United Nations in conjunction with representatives of the six affected states to review findings and chart way forward.

“Specifically, the joint efforts of the federal and state governments with the global partners would now be directed to prioritizing the needed interventions and projects, arranging

FOR SAFETY IN THE SKY

President Muhammadu Buhari (middle), flanked by the President of the International Civil Aviation Organisation (ICAO), Dr. Bernard Aliu, (left); and a Representativeof theNigerianICAOCouncil,Mr.MartinsNwafor,atameetingwithICAOattheStateHouseinAbuja...yesterday GodwinOmoigui their sequence and coming up with an action plan.”

The statement said the Sector Manager, Urban Development and Disaster Risk Management at the World Bank Headquarters in Washington, Mr. Idrissa Dia, said the physical participation of the bank at the validation workshop last week in Abuja was an affirmation that the global financial institution was encouraged by the initial feedbacks on the findings of the recovery and assessment.

He then reaffirmed the bank’s commitments and support towards the overall success of the planned interventions.

Dia said the World Bank was set to mobilize other bodies in the World Bank Group and partners that might be interested beyond the existing donors on the project.

According to the World Bank representative at the event, “In line with the magnitude of the needs we are confronted with, we would like to also mobilize beyond the set of donors here,” adding that there were other big players that would be able to come into play in support of the forthcoming

interventions.

On his part, the European Union’s Acting Head of Cooperation, Mr Juan Casla, expressed satisfaction with the findings of the assessment, saying with the leadership displayed in the process by the federal government, the different states and the international donor agencies, the EU was ready to discuss the pledges it made and move forward with the implementation in collaboration with other partners and the government of Nigeria, both at the federal and state levels.

“These findings provide shared understanding between the Government of Nigeria and its humanitarian and development partners on a set of priotized, sequenced interventions and the EU as a member of the international partnership involved in this assessment is ever- committed towards ensuring the implementation of these findings,” Casla stated.

Casla said from his experience, he had seen that the team led by the Senior Special Assistant to the

President on IDPs, Dr. Marian Masha, had been able to put in place a thorough assessment in a complex and challenging situation in the North-east.

The UN representative at the event, Mrs. Jean Gough, said the United Nations was pleased with the successes of the assessment, harping on the readiness of the world body to provide technical and other humanitarian support towards achieving the goals of the post-assessment phase of the planning.

Masha had disclosed that Borno state was worse hit by the crisis with a loss of $6 billion.

According to her, the region suffered damages worth $3 billion in housing alone while it also suffered damages in terms of livestock which brought about the need to restore agriculture in the region.

According to her, “What this process brings home is that it helps to create a platform to harmonise resources, to coordinate better, support and planning at the federal and state levels, and support also from international

donors and partners.”

The RPBA findings also revealed that Yobe and Adamawa states were next in devastation, adding that the destruction in other parts of the region is enormous but with less gravity.

Dr. Masha added that no fewer than 20,000 lives were lost, while 1.8 million people were displaced by the Boko Haram insurgency and the planned interventions are to be implemented over time, in view of resources that are available for its implementation.

“Crisis recovery in the Northeast is a priority of the Nigerian government and this has been demonstrated by the ownership and leadership of the recovery assessment process, it has helped in securing the continued support of the partners, donors and other critical stakeholders. The plan and implementation strategy are critical to the success of the recovery efforts. It is not so much about the amount of financial resources that are available, but how we are able to utilise the resources and the capacity to put them to use,” Masha remarked.

the cases concerned as: FHC/L/ CS/1471/2015 Mr. Simon John Adonmene & three others vs EFCC filed on September 21, 2015 before Justice Yunusa of the Federal High Court, Lagos Judicial Division; Suit No. FHC/L/CS/487/14 - FRN v.

MichaelAdenuga; Suit No. FHC/L/ CS/1342/15 - Senator Stella Odua v. AG Federation, EFCC, ICPC and IGP; Suit No. FHC/L/CS/1285/15 - Jyde Adelakun and Anor v.

Chairman EFCC & Anor; Suit No. FHC/L/CS/1445/15 - Dr. Martins Oluwafemi Thomas v. EFCC; Suit No. FHC/L/

CS/1269/15 - Shamsudeen Abogu v. EFCC and Ors; Suit No. FHC/L/CS/1012/15 - Hon. Teeth Dauzia Loya v. EFCC. In its query, Justice Muhammed said: “I forward herewith a petition dated December 21, 2015, against you by Mr. Olanrewaju Suraju, Chairman, Civil Society Network Against Corruption, on the above subject matter. The petition speaks for itself. I shall be glad to have your comments within 14 days from the date of your receipt of this letter, please.” The response of Justice Yunusa is still being awaited.

NJC Queries Embattled JusticeYunusa A judge of the Federal High Court, Justice Yunusa, accused by the Economic and Financial Crimes Commission (EFCC) of an unwholesome judicial conduct with and receipt of financial transfers from a senior lawyer, Mr. Rickey Tarfa (SAN), has been queried by the National Judicial Council (NJC).

In a letter with reference number NJC/F.3/FHC.49/1/421, dated March 16, 2016, signed by the Chief Justice of Nigeria (CJN) and Chairman of the NJC, Justice Mahmud Mohammed, which was

sent through the Chief Judge of the Federal High Court, Justice Ibrahim N. Auta, Justice Yunusa was given a 14-day deadline to submit his response to allegations of judicial, abuse, compromise and misconduct leveled against him by the Civil Society Network Against Corruption (CSNAC).

CSNAC had in a petition dated December 15, 2015, accused the judge of consistent refusal to abide by judicial precedents, laid down by the apex courts, in granting orders and injunctions against the EFCC.

According to CSNAC, the actions of Justice Yinusa “will undoubtedly serve as a leeway for unscrupulous and corrupt individuals, who will stop at nothing to truncate their arrest, investigation and prosecution by the appropriate law enforcement agencies, to render our criminal law ineffective, as well as allowing corruption fester in the society.”

The organisation had submitted that: “The grant of the orders of mandatory and perpetual injunctions by Justice Yunusa against the EFCC is a grave

departure from the established principles in the mentioned cases, as laid down by the Supreme Court and Court of Appeal which are binding on the Federal High Court, being a lower court. Justice Yunusa, by the grant of these orders, has stripped the EFCC of its constitutional powers as a law enforcement agency, as well its powers under the enabling law, the EFCC (Establishment) Act, LFN 2004, a Federal Legislation.

It is also a gross abuse of his powers as a judicial officer.” The organisation further listed some of

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Terrorism: ICAO Moves to Avert Attacks in Nigeria, Cameroun, Egypt, Others Dele Ogbodo in Abuja The President in Council of the International Civil Aviation Organisation (ICAO), Mr. Bernard Olumuyiwa Aliyu, has said the body is strategising with the Ministers of Aviation of Nigeria, Cameroun, Niger, Somali, Egypt and countries within the continent to stem any terrorist attack on their

airports.

One of the strategies, Aliyu said, would be the adoption of biometric passport or the e-passport to monitor closely the movement of passengers within and outside the region.

He admitted that ICAO had been having very close relationship with the Ministers of Aviation on aviation security challenges in Mali,

No Subsidy on Petrol, Insists PPPRA Chineme Okafor in Abuja The Petroleum Products Pricing Regulatory Agency (PPPRA) last night said the federal government had not rescinded its decision to modulate the pump prices of petrol across filling stations in Nigeria, and that subsidy on petrol has also not been reintroduced.

It said in a statement that was signed by its acting Executive Secretary, Mrs. Iyoyo Sotonye, in Abuja that contrary to media reports, the government would continue with its price modulation policy which it currently uses to fix petrol prices.

Sotonye also said that accumulated funds from the government’s over recovery on prices within the first quarter import allocation would be used to make up any noticeable imbalances in April, and that no fund was provided for subsidising

petrol consumption in the 2016 budget.

“Contrary to reports by a section of the Nigerian media, the federal government has not reversed its decision to remove subsidy on petrol more so when there is no appropriation for subsidy in the 2016 budget,” said Sotonye.

She further stated: “The PPPRA wishes to state categorically that what still exists is price modulation policy, through which it considers and reviews pump price of PMS quarterly.”

According to her, “the funds from over recovery in the first quarter (Q1) shall be duly utilised for whatever noticeable imbalance in April 2016 in line with the price modulation principle.”

Sotonye then noted that the agency was committed to ensuring seamless supply and distribution of petroleum products in the country.

Somali, Egypt and Nigeria, adding that aviation security was a very sensitive issue which ICAO cannot put in public domain.

The ICAO boss, who is seeking re-election bid for a second term, made the disclosure at a get-together dinner organised Sunday night in Abuja for him by the Minister of State for Aviation, Mr. Hadi Sirika.

He stated that ICAO was working hard to make the airports safe across Africa, adding that “bombing at airports is one of the critical issues that we are discussing at the moment,” as he said ICAO and Nigeria would have to collaborate very closely on the matter.

He said: “Few months ago, I sent ICAO team to Nigeria and

the neighbouring countries of Chad, Niger and Cameroun to do an assessment, and arising from that, we will strategies on new measures that we are going to implement.

“As I leave Nigeria, I will be going for aviation security and facilitation on Africa where they will all gather together at a meeting with ICAO and the African Civil Aviation Commission (ACAC) to chart the way forward.

“We shall raise the level of aviation security on the continent as well as the issues of facilitation and biometrics passport which we call the e-passport in order to monitor closely the movement of people and passengers in the region.”

Aliyu alleged that corruption

had impacted on the national economy and retarded the growth of the civil aviation, adding however that there was light at the end of the tunnel because of the present posture of President Muhammadu Buhari and his current fight against corruption.

“I’m hopeful for our country because of the posture and the determination of Buhari regarding his fight against corruption. This is the bane of our society that has impacted all aspects of the national economy including the civil aviation.

“I’m very hopeful now with the determination of the minister and the support that he is receiving from government, when he visited me in Montreal, Canada, I told him that we cannot afford to miss

this opportunity.

“With me being at ICAO and he being the minister for aviation, we will put ICAO resources at the disposal of Nigeria in all its efforts to move the sector forward.”

In his remark, Sirika, said government is committed to making sure that Aliu is re-elected as president of the council before the end of the year based on his experience and achievements that he has recorded in his first term.

He said: “We began his campaign for a second term and it was huge success and welcomed by every country and nation so far. When I spoke to the delegates of the United States and Canada about the representation of Aliu they told me that you cannot do any better.”

Air Operations May be Grounded as Supply of Aviation Fuel Halted for Discharge of Petrol Chinedu Eze Domestic flight operations may be grounded with the stoppage in the supply of aviation fuel as marketers have been directed to give priority to the discharge of petrol at the ports due to the acute scarcity of the product.

The cancellation of flight services may paralyse the nation’s economy as air transport plays critical role in the movement of top government officials and business people who run the economy.

THISDAY learnt yesterday that tankers bringing aviation fuel to Nigeria, known as Jet A1 have been told to hold back so that the ones bringing petrol would be given priority and opportunity to discharge first due to chronic scarcity of the product.

Airline sources said this would further lead to flight cancellations and many airlines may not be able to operate domestic services at all and only international airlines that are able to source fuel outside the country would be able to airlift passengers to international destinations.

Since the Easter holiday there has been scarcity of aviation fuel which gave rise to delays and fight cancellations as passengers are stranded at various airports.

A source from one of the

major airlines told THISDAY that the marketers rarely disclose that the product was not readily available; rather, they would collect money and promise you but when it is the time to supply they would start extending time for the discharge of the product.

“Last time they delayed us by three hours and the three hours delay affected all our operations because it is like a network. Without fuel we cannot operate any of the aircraft; so after getting the fuel we decided which airports to service first. We went to the airports where there are no airfield lighting because we cannot fly to them in the night.

This caused severe delays to our flights. But the passengers do not understand what we go through. What they know is that we failed to take off as scheduled time,” the source said.

A senior official of Dana Air said the airline’s Jet A1 suppliers wrote to the management recently about the impending scarcity and expressed optimism that supply might pick up from April 8, but with the priority on the discharge of petrol, it is likely the scarcity would linger.

The official said although the supply of aviation fuel is deregulated but the product is

Cont’d on Pg 11

WE ARE PROUD OF YOU

Cross River State Governor, Professor Ben Ayade (left), with the Head of Service of the Federation, Mrs.Winifred Ekanem Oyo-Ita, durimg a courtesy call onthegovernorinCalabar...yesterday.

Nigerian Military Rescues 275 Hostages, Clears More Boko Haram Enclaves Kills 15 terrorists, arrests six others in Borno Discovers IED tools in primary school Senator Iroegbu in Abuja Following its ongoing operations against Boko Haram in the Northeast, the Nigerian military has again rescued about 275 hostages and dislodged terrorists remnants from their enclaves in some parts of Borno State.

In the latest offensive, the troops also killed 15 terrorists, arrested six others and recovered several items and weapon making materials.

This was disclosed in a statement signed yesterday by the Director of Army Public Relations (DAPR), Col. Sani Usman, saying the military recorded many successes at different operational areas in Borno State.

Usman said troops from the 152 Task Force Battalion in conjunction with those from Sector 1 of the Multinational Joint Task Force

(MJTF) last Sunday carried out clearance operations in suspected terrorist hideouts around Madawaya general area, cleared an Improvised Explosive Device (IED) making factory, killed 15 terrorists and recovered some weapons.

The troops, he noted, cleared terrorists in Madawaya, Jere, Kardile, Koujili, Ngenere and Maksamari as well as Douse, Bembem, Zombulum and Taraji villages.

In addition, he said, they recovered several vehicles and motorcycles.

“They also discovered and destroyed the Boko Haram terrorists’ IED making factory at Bula Umara and killed 15 terrorists in the same area. In addition, the troops recovered an AK-47 rifle, four fully loaded magazines with 7.62mm ammunitions two power

generating sets, welding machines, assorted batteries and solar panels,” he stated.

Usman listed other items recovered by the troops to include drums of beans and other grains as well as bandolier.

“The gallant soldiers also rescued 275 persons held hostage by the Boko Haram terrorists. One interesting thing is that, one of the rescued persons gave birth to baby boy shortly after their liberation. Both mother and the child are doing fine.

“The troops have continued with their clearance operations to other suspected hideouts of the Boko Haram terrorists in their areas of operations,” he said.

In a related development, Usman said the troops of 22 Brigade Garrison, Army Headquarters Strike Group (AHQ SG) accompanied by some

Civilian JTF on fighting patrol to Boboshe, Garna, Kyare, Kadawu, Gineba and Ajiri arrested six Boko Haram terrorists and recovered IED making devices last Sunday.

“Although the fighting patrol team found Boboshe village virtually empty, they however recovered eight industrial gas cylinders and five regular gas cylinders at a primary school being used to make IED, and also recovered a pickup vehicle,” he said.

The army spokesman explained that the patrol team captured three Boko Haram terrorists at Kadawu and recovered four motorcycles, three bicycles; one solar panel and two liquid herbicides.

At Garna, he added, the troops also captured three and recovered seven locally made guns from them.

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Hostile Operating Conditions Ground 145 Textile Companies in 36 Years FG aims to cut smuggling by 15% James Emejo in Abuja The Minister of State for Industry, Trade and Investment, Mrs. Aisha Abubakar, yesterday lamented that the country had lost no fewer than 145 textile companies to unfavourable business climate between 1980 and 2016, leaving only about 30 textile firms in operation till date.

Speaking in Abuja during a meeting with the National Committee on the Implementation of Cotton, Textile and Garment (CTG) policy, she regretted that an industry which was the highest employer of labour after the government had suddenly become a shadow of its own, engaging only “very few people.”

The meeting was convened to review the progress so far made with the implementation of the CTG policy after the Federal Executive Council (FEC) approved the framework in December 2014.

Meanwhile, Abubakar said the federal government would take the implementation of the policy seriously as it would help to rejuvenate the growth and development of the industry.

She said: “Since our coming on board, I have taken time to understand the policies and programmes of the ministry. We have identified the CTG sector as an important sector for revival in view of the very high potential of job creation along its value chain.”

According to her: “The CTG

sector which used to be the highest employer of labour next to government, with over 175 mills at its peak in the 1980s is now a shadow of itself with barely 30 companies operating presently.

“This is no time for lamentation, we are determined to succeed.

The country is looking at us.”

She said: “This meeting is called to review the activities this far and to chart the way forward. I am sure the successful implementation of the CTG policy will indeed bring back the glory of this sector

through its multiplier effect.”

Chairperson of the committee, Mrs. Omotanwa Awobokun said there was need to address some of the challenges facing the sector.

She identified them to include funding constraints, smuggling, inadequate power supply, standardisation and the poor yield from cotton seed.

However, as part of measures to address the issue of smuggling, she said a presidential task force on textile had been set up with a clear mandate to reduce textile

smuggling by 15 per cent.

The task force would also carry out diplomatic initiatives to persuade neighbouring countries to support Nigerian anti-smuggling initiatives.

The CTG policy was launched on January 20,2015, alongside a National CTG Policy implementation committee to implement the policy.

The policy thrust of the framework was to reposition the sector as the second largest employer of labour and a revenue

earner for government, targeting a cumulative investment of N255 billion between 2015 and 2020.

It further sought to save about $2 billion in foreign exchange spent importing textiles and garments.

According to the document, the policy is expected to increase the level of direct employment in the sector from 50,000 persons in 2015 to 100,000 by 2017 with indirect employment expected to increase from 650,000 people to 1.3 million.

Dasuki’s Bid to Stop Trial Suffers Set-back The Federal High Court in Abuja has adjourned ruling indefinitely on the application filed by the former National Security Adviser (NSA), Col. Sambo Dasuki, to stop his trial.

Although the case was listed on the cause list of the court yesterday, the presiding judge, Justice Adeniyi Ademola, did not appear.

According to an online news portal, TheCable, the court clerk said the case had been adjourned and that a new date would be communicated to the parties.

At the hearing of the application on March 3, Dasuki had said investors’ confidence in the country was shaken because of the federal government’s refusal to obey court orders.

The former NSA who spoke through his counsel, Joseph Daudu (SAN), before Justice Ademola, had urged the court to halt his trial until the government complied with its order granting him bail.

“How will the government look like at the end of the day?

Will investors be confident in this country when court make orders, but they are not obeyed?,” he had said.

In November, 2015, Justice Ademola granted Dasuki bail, but he was rearrested immediately after his release from Kuje prison by the Department of State Services (DSS).

On February 16, Dipo Okpeseyi (SAN), counsel to the DSS, had announced to the court that the prosecution was ready for trial to commence.

But Daudu said that the defence counsel was not ready

to proceed with the trial because the federal government was still keeping the accused person in detention despite an order of the court granting him bail.

“We cannot be ready for trial until the defendant enjoys his constitutional rights,” he had said.

“We apply that we should be given time to prepare the defence.

The conduct of the prosecution has not enabled him to enjoy his constitutional rights.

“The worst is that for about seven weeks we do not know where he is.

“Any of us here who proceed to defend an accused person in this circumstance may lose his license of practice.”

However, Okpeseyi argued that the prosecution was not stopping Dasuki from enjoying his freedom.

He said that the accused person was not being held for the charges before the court, but on separate charges.

He therefore asked the court to reject the request for adjournment and to commence trial.

The court, however, fixed April 4, for ruling on the application.

Dasuki is facing a four-count charge of money laundering and illegal possession of firearms brought against him by the DSS. He is also facing multiple counts of laundering money at the Federal Capital Territory (FCT) High Court, Abuja.

Two judges of the FCT High Court had dismissed his application to stop his trial.

AIR OPERATIONS MAY BE GROUNDED AS SUPPLY OF AVIATION FUEL HALTED sold at very high rate and at the same time scarce most often, noting that the marketers recently complained of high exchange rate and that they alternate the import of aviation fuel with petrol.

This means that when they pay for importation of petrol they may not import aviation fuel at the same time.

On the effect of the scarcity on the economy, the official said that it would not only ground flight operations but it would affect the country’s Gross Domestic Product (GDP) as the scarcity of petrol has

also grounded most businesses in the country.

“The product could be sourced little from Lagos but it is scarce in Abuja and it has been getting worse so flight delays and cancellation are inevitable. Two years ago when we outstripped SouthAfrica as the biggest economy in the continent, we were elated about it but with what is happening now, South Africa will close the gap soon because what is now happening will adversely affect our GDP,” the official said.

HOW TO BOOST REVENUE

L R: Alaafin of Oyo, Oba, Lamidi Adeyemi; Oyo State Governor, Abiola Ajimobi; and Olubadan of Ibadanland, Oba Saliu Adetunji, at the state Agriculture Initiative Stakeholders’ Consultative meeting in Ibadan...yesterday Felix Ademola

Ekiti Politics: Fayose and Aluko Reconcile in Lagos Segun James and Olakiitan Victor in Ado Ekiti In a most dramatic move that left a lot of political pundits stupefied, fiery Governor of Ekiti State, Ayodele Fayose, and his estranged friend and former Secretary of the state chapter of the Peoples Democratic Party (PDP), Dr. Temitope Aluko, have reconciled.

This is coming as Fayose’s Special Assistant to the Governor on Public Communications, Lere Olayinka, described the embattled former secretary as a man of unstable character.

The two of them seem to have put the past behind them as both of them met Sunday night in Lagos behind closed door to resolve the lingering crisis between them since 2014.

The reconciliation, THISDAY gathered, was facilitated by the immediate past Speaker of the state House of Assembly, Hon. Dele Olugbemi, who was able to bring the two combatants together.

Speaking with journalists after the meeting, Fayose said: “I’m the father of all. For whatever that happened, I’m the father and I should accommodate everybody.”

Fayose admitted: “We are resolving the issue, we have made appreciable progress and we hope

and pray to God that there will be peace.

“In politics, we resolve issues like this and we have made considerable progress like Aluko had said. His coming back is to further strengthen the progress he is talking about and I am sure if this is not important, he won’t be here. He is here because there must be peace.”

In a brief remark, Aluko affirmed all is now well between him and the governor.

“There is peace. This is about peace,” he said.

When reminded that he betrayed the governor, Aluko replied: “Am I not standing with him (Fayose) now?”

Aluko said he had come down to see Fayose, who he described as his brother, declaring that the crisis that had led to misunderstanding between them was being resolved and that appreciable progress had been made towards achieving a lasting peace.

While blaming the crisis on undue interference from some quarters, Aluko said the processes leading to renewed peace between him and the governor was being achieved without any string or condition attached.

When asked if he had forgiven Aluko, Fayose reiterated, “You see, whether you are talking of

forgiveness, Aluko remains my boy, my son.”

Aluko made several damning allegations against the governor concerning how he allegedly took advantage of then federal might under the PDP to subvert the credibility of the state governorship election in 2014, describing the election that brought Fayose back in office as a “coup against the Ekiti people.”

But barely 12 hours after the truce, a Special Assistant to the Governor on Public Communications, Lere Olayinka, described Aluko as a man of unstable character.

Olayinka said in a statement that the Sundays meeting in Lagos between his boss and Aluko, who had been on each other’s throats over the conduct of the June 2014 governorship polls, had vindicated his position that “he (Aluko) can make a 360 degree turn around and return to the same Fayose he accused of rigging election, because he lacks integrity.

“Being the person that faced Aluko on television interviews where he told all the lies that he told against Fayose and the people of Ekiti State, I am constrained to make my position known on this new development.

“Even though Governor Fayose,

being someone with a large heart may not be too happy that I am making this statement, but as one of the major dramatis personae in the whole saga, my conscience won’t allow me to just keep silent after all the pains and confusion caused by Aluko.

“I did say on Channels Television that giving the right situation or after Aluko must have concluded his scamming of the APC and its gullible leaders, he will return to Governor Fayose and recant everything that he had said.

“Today, I have been vindicated because Aluko has done just that and I wonder how he will feel when he comes face to face with the people that he has destroyed.

I wonder how he will feel when he comes face to face with those fine military officers that he went to Kaduna to lie against and made them to lose their jobs.

“I wonder how those who funded him will be feeling now, having failed to listen when I was consistently saying that they were being duped. I wonder how the Department of State Services (DSS) men who took Aluko’s lies and acted on them by invading the State House of Assembly will feel now that they have integrity problem because of what he (Aluko) made them to do.”

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TUESDAY APRIL 5, 2016 T H I S D AY

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T H I S D AY TUESDAY APRIL 5, 2016

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T H I S D AY • TUESDAY, APRIL 5 2016

COMMENT

Editor, Editorial Page PETER ISHAKA Email peter.ishaka@thisdaylive.com

FUEL SHORTAGES MANAGEMENT AND LONG TERM PLANNING

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Babatunde Olubanjo argues it is the responsibility of the government, through the NNPC, to ensure availability of petroleum products

igerians have of recent been going through hard times occasioned by lack of almost everything including power, gas, water and the basic necessities of life.

The only things not in short supply are corruption, grand theft and fraud as revealed by the amounts involved in the probes of past government officials.

It is the vogue for people to be found stealing billions and trillions of naira and its equivalent in foreign currencies. Inflation is spiraling, exchange rates have gone through the roof, the economy is not worth writing about and there is palpable fear of the unknown tomorrow. To make matters worse, the utterances of some All Progressives Congress (APC) government officials are neither encouraging nor understood for what they were meant to be in the context under discussion. Of recent, the Minister of State for Petroleum Resources Dr Ibe Kachikwu was reported to have claimed he was not a magician as far as fuel shortages are concerned. While not trying to hold fort for him, I believe he was misunderstood and that he meant to say that the issue of fuel shortages and associated problems predate his ascendancy into office. He should have exhibited more empathy with the suffering masses while making people aware that the issues were being attended to in a timely manner.

On fuel shortages management, there are many variables and processes involved and each need has to be given adequate attention.

Stakeholders include the Nigerian National Petroleum Corporation (NNPC) and her subsidiary companies like Pipelines and Products Marketing Company (PPMC) and refineries, Department of Petroleum Resources (DPR) to ascertain quality and quantities, suppliers, government that is held responsible for adequacy or otherwise of supply, Central Bank of Nigeria and banks as applicable to accept and monitor payments, legislature to provide adequate laws for the operations of various concerned sections of the economy and the judiciary to interpret the laws as necessary. In effect, there are tonnes of parameters to monitor and record in addition to long term planning to ensure adequacy of supply under all conditions. By all conditions, I am referring to extraneous conditions that impact directly or indirectly on the availability and supply of petroleum products. There are dependencies and interrelationships between the conditions, variables and processes that must be synchronised for effective, efficient and reliable delivery of products at established prices in all parts of the federation. The average Nigerian is not interested in the price of oil in the international market, the exchange rate, the state of the refineries, the state of the economy and every other factor or condition that is mitigating against the necessity of delivering products to the people as at and when needed. It is the responsibility of the government of the day through NNPC to ensure adequacy and availability of supply. Similar situations are usually better handled using Enterprise Resource Planning (ERP) Systems which are configured to incorporate all parameters, conditions, constraints and variables while offering valuable outputs for decision making and audit. With such ERP systems, you use parameters like local consumption, output from local

IN MEETING THE CHALLENGE OF ELIMINATING FUEL SHORTAGES, THERE ARE CERTAIN CRITICAL CONDITIONS THAT NEED TO BE CONSIDERED. TAKE FOR INSTANCE THE ISSUE OF ABUSE OF THE IMPORTATION PROCESS WHERE COMPANIES WERE PAID FOR NO SUPPLY, OR PAYMENTS WERE MADE OVER AND ABOVE THE QUANTITIES SUPPLIED; THESE WERE INSTANCES OF CORRUPTION THAT NEED TO BE DETECTED AND PUNISHED ACCORDINGLY TO DISCOURAGE PEOPLE FROM SUCH ACTS

refineries, lead time for orders from abroad to arrive local ports and distribution times as inputs for planning and treat other conditions like minimum inventory and re-order quantities, low oil price level impacting available cash and so on as constraining conditions.

The Integrated Personnel Payroll and Information System (IPPIS) adopted by the federal government is a typical ERP system for payroll and personnel management. Since implementation, many benefits have been derived including savings in payroll bills on discovery of “ghost workers” by their thousands. It should be expanded to cover states, local governments and all ministries, departments and agencies (MDAs) of government. This is a typical example of using technology to solve operational problems and reduce waste and theft. In the supply chain ERP system that should be the driver for NNPC operations, there is need to document and catalogue risks and issues that may impact the schedules and deliveries and proactively analyse and quantify such risks and apply effective mitigating techniques to prevent derailment from set objectives.

I am aware that NNPC was trying to implement such a system some time ago but not certain if the system has been implemented and is operational as at today. If not operational, there is the need to urgently implement such a system for its obvious advantages and benefits. In meeting the challenge of eliminating fuel shortages, there are certain critical conditions that need to be considered. Take for instance the issue of abuse of the importation process where companies were paid for no supply, or payments were made over and above the quantities supplied; these were instances of corruption that need to be detected and punished accordingly to discourage people from such acts. In addition, there is need to set up mechanism to prevent such occurrences in future through the use of ERP systems for effective monitoring and control. A note of advice, no matter how good the plans and processes are, there are people who are busy designing ways to beat the system or make it ineffective for selfish reasons. These are the people against whom we have to be proactive in the design of the system to incorporate checks and balances to minimise the manipulation of the system to their advantage.

Critical factors working against the success of any plans in Nigeria are endemic corruption, grand theft and fraud. Corruption has been ascertained as the greatest detriment to Nigeria’s progress for now. The APC government was voted in based on the promise to tackle corruption head on and it should not renege on that promise.

There should be adequate punishment for all culprits irrespective of status, religion, family or political association. There should be justice for all and the situation whereby a few privileged people embezzle the common heritage is not acceptable. Nigerians look forward to the days when the papers and media will report that up to seven ex-governors of a state or three ex-presidents are serving jail terms at the same time on corruption charges as common in sane and developed societies. babatundeolubanjo@yahoo.com

UNHOLY SIEGE IN RIVERS STATE

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INEC should lighten its burden by releasing the results of the rerun elections, writes Dickson Okonta

he story of the March 19 re-run elections in Rivers State is that of perilous siege. It is the story of a state being held hostage by forces of darkness whose main intent is to unleash a reign of terror on the environment.

A major accomplice in this unholy siege is the Independent National Electoral Commission (INEC). Since the commission came under the headship of Professor Mahmud Yakubu, it has virtually become an object of unedifying banters.

The commission has hardly lived up to its billing.

It has never conducted any election that can, strictly, speaking, pass the test of substantial compliance with the provisions of the Electoral Act. In Kogi and Bayelsa States, for instance, the commission could not give a good account of itself. It gave us a travesty of an election. Both could not be concluded in one ballot. They were, as has become customary, declared inconclusive.

The Kogi scenario will, for a long time to come, pass for one of the sore points of our national struggle to join the league of democratic nations.

In Bayelsa State, the elections were almost marred by violent conducts. INEC could not handle the exercise satisfactorily because it displayed absolute lack of capacity.

But the Kogi and Bayelsa scenarios pale into insignificance when the case of Rivers State is introduced into the mix. In Rivers, the commission presented the image of a lame duck. It just could not handle the re-run elections satisfactorily.

Even when the commission declared to the world that it was ready for the exercise, everything ended up shoddily.

To demonstrate that it was not prepared for the exercise, the commission allowed security agents whose role was the protection of life and property to intrude into and hijack the electoral process.

The security agents abandoned the job they were sent to do and, instead, made themselves a part of INEC’s complements of staff. In the face of this dereliction on the part of INEC and the security personnel, the exercise ended in a fiasco in a number of places. That was why INEC cancelled the exercise in about 10 constituencies. The commission was responding to its own mess.

But what rankles the most is that weeks after the conduct of the elections, the commission is still holding on to the results of some of the constituencies. It has been releasing the results piecemeal. The way it is going, INEC is creating the impression that election is a mystical exercise.

You have to employ the expertise of diviners to decode the meaning of what you are into.

In the case of Rivers State, the commission has left no one in doubt that it is taking instructions from the Presidency. Aso Rock directs it on what result to release and which one to hold on to.

Otherwise, why is INEC so incapacitated in its own election? The trouble here is that the delay in releasing the results is causing anxiety and heightening tension in the state. The impression the delay causes is that people now believe, and rightly so, that the results of the elections are being manipulated to serve the interest of INEC’s masters.

Unfortunately for the commission and its backers, it has not been easy to thwart the will of the people in Rivers State. Regardless of the ongoing perfidy, the Peoples Democratic Party (

PDP ) remains the dominant party in the state.

Its winning streak appears unstoppable. INEC should recognise this and save the people from undue suspense. Election is no rocket science. It is an everyday exercise for everyday people.

By withholding the results, INEC is adding faggots to a blazing fire. The people of Rivers state have seen so much trouble principally owing to INEC’s incompetence. It should end the siege in the state by releasing the outstanding results forthwith. It should also conduct fresh elections in the constituencies where it cancelled the exercise the last time. It should not take the commission eternity to conclude a mere supplementary election in one state of the federation. There is, indeed cause for worry here. The question we cannot ignore is: if INEC cannot get it right in just one state, what happens when it is saddled with conducting general elections nationwide?

Your guess is as good as mine. God will save us from this den of incompetence which the Yakubu commission has thrown us into.

Apart from INEC’s perfidy, the siege situation is also playing out at another level. The Rivers State government under Nyesom Wike is being demonised for the violence that engulfed the state during the re-run elections. Most of the critics are silent on the role of the former governor of the state, Rotimi Amaechi, whose role in the election was most questionable. Amaechi’s sabre rattling was unspeakable. It was as if the state was going to war. All of this was to give the impression that the All Progressives Congress (APC) has a foothold in the state. But the way it has turned out, PDP has proved to be the dominant party in the state. The rival APC led by Amaechi should

accept this so that the state can move on. Tough talk and violence will solve nothing.

What is most reprehensible here is that enemies of the state are trying to get from the back door what they could not get through the ballots. Governor Wike and his party are being demonised to no end over the killings. But the man has challenged his traducers to ensure that the needful is done. He wants an autopsy carried out on the dead to ascertain who killed them. I think that the Wike challenge is worth it. Will his detractors give this challenge a thought?

Perhaps the most provocative of all the evil going on in Rivers State is the call in some quarters for a declaration of state of emergency in the state. Decent minds cannot fathom this. It is simply inconceivable. There is no justification for it. Violence in elections does not only take place in Rivers State. It happens everywhere in Nigeria. One is then at a loss as to why Rivers is being singled out as a special case. But we know that there is nothing different here. The call for emergency rule is only a ploy to sack Wike by every means imaginable. It is a most destructive plot which President Muhammadu Buhari must not contemplate. It is an ill wind which will blow no one any good.

What Buhari as the father of the nation should be interested in is how to begin the process of rebuilding the shattered provinces of Nigeria.

The north east is in bits and pieces. Buhari needs to face the war there. He does not need to open another flank for conflicts down south. Let Wike and his Rivers state be.

Okonta, a retired civil servant, wrote from Asaba, Delta State.

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T H I S D AY • TUESDAY, APRIL5, 2016

EDITORIAL STILL ON FUEL SHORTAGES

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To end what has become an enduring burden, investors should be encouraged to establish local refineries

lthough the off the cuff remarks by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu (that he was no magician who could conjure fuel availability), may have exacerbated the fuel crisis, the root of the current woes lies elsewhere. But what Kachikwu’s remark and subsequent explanations have done is to raise the question as to whether Nigerians would ever see an end to the perennial shortages that have come to define the management of the downstream sector of the petroleum industry. It is an issue that should worry the current administration, especially since there seems to be no coherent policy in place to deal with the issue in a holistic and lasting manner.

In virtually every town across the nation today, motorists are going through gruesome times to get petroleum products. In most instances, the desperate ones pay between N150 and N300 for a litre of petrol at the black market as the scarcity continues to impact negatively on socio-economic activities. To worsen matters, most WITH PROPER of the access roads STRUCTURES AND in major towns are INCENTIVES FOR THE blocked as a result PRIVATE SECTOR, LOCAL of long vehicular REFINING OF PETROLEUM queues. Besides, law PRODUCTS IS THE and order often break ONLY WAY OUT OF THIS down in many fuel PERENNIAL CRISIS stations as Nigerians struggle to fill their tanks, power generating sets and other fuel consuming machines.

As we stated in previous editorials on this issue, the sloppy handling of what is clearly a reform agenda, however well-intentioned, could put its implementation at serious risk and that perhaps explains the problem Nigerians are experiencing today.

That is why we advocated a genuine and transparent dialogue between the federal government and critical stakeholders, including organised labour, where all the issues would be put on the table and a lasting

Letters to the Editor

solution found. For now, the falling price of crude oil at the international market is the “saving grace”. But that is not even enough to prevent the perennial fuel scarcity.

Going forward, there are a number of things that would need to be done. We need to sell off the old refineries that have become huge drains on scarce resources. Despite initial claims of robust performance, the refineries in Port Harcourt, Warri and Kaduna have actually recorded average capacity utilisation of 10 per cent last year, according to the Nigerian National Petroleum Corporation (NNPC). The NNPC report indicates that between January and August 2015, the three refineries operated at a total loss of N31.682 billion, with the Kaduna refinery accounting for the highest loss of N26.183 billion while the Warri and Port Harcourt plants made losses of N8.496 billion and N8.057 billion respectively.

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APC AND THE PARABLE OF CHANGE

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uring a goodbye service, it was announced that everyone should go right for their portions. Before you could say Jack Robinson, many people had jumped to their feet. And before you knew it, quite a few people had gone to their right. Sometimes what you think is right is not right; your sweetheart or better half could be bittersweet, and your patience may count against you. A dysfunction could turn crude oil into a curse and good luck into bad luck.

The introduction of the card reader in 2015 general elections, a precursor to electronic voting come 2019, was “one small step” for INEC and “one giant leap” for Nigeria. When it became clear that with the card reader, it wasn’t going to be business as usual, Goodluck Jonathan’s Peoples Democratic Party laboured to frustrate its deployment. But the then opposition All Progressives Congress (APC) realising that the power of darkness is the absence of light, backed INEC to use the card reader as planned. And it came to pass the APC rose slowly above the horizon to Aso Rock. However, Nigeria may witness the eclipse of the ruling party if they cast a shadow on e-voting.

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t is doubtful if many Nigerians were surprised by the report. Over the years, the refineries have continued to fail in terms of satisfying the essence of their establishment, given that the importation of petroleum products has become a major and running routine in the economic management of the country.

The reason, as often adduced by industry experts, is that the refineries have either all broken down due to the poor maintenance culture or that installed capacity cannot meet the ever-growing local demand for petroleum products.

While it makes no sense that Nigeria continues to import finished petroleum products at huge cost to the economy, experience has also shown that the government is not adept in the efficient management of businesses. If anything, the tales of corruption, ineptitude, sabotage and other sharp practices in the oil and gas industry have continued to confirm this widely held opinion. That is why we believe that with proper structures and incentives for the private sector, local refining of petroleum products is the only way out of this perennial crisis. But for that to happen, the policy instruments in the sector would have to change.

Nigeria is ours, Nigeria we serve. But while we serve with dedication and selflessness under the sun and in the rain between the reign of terror and free rein of evil, politicians and their cronies have since been eating stolen yam. Now they plant their children in the central bank and wish the children of the poor to go and plant yam.

President Muhammadu Buhari is determined to fight corruption, corrupt people will fight back. They start by crying “witch hunt” in advance. For your information, the devils we know have the credentials to frustrate Buhari’s anti-corruption fight. The battle line is drawn and the enemies have taken positions to fight dirty.

All that is necessary for evil to succeed is for good men to do nothing. Let men and women of goodwill rally round the president, and let the Nigerian masses come together behind their president. Soon, very soon, the people deceiving people and all political crooks shall walk free scot free no more.

The fight against corruption requires the cooperation of the three arms of government. Left arm last term was diagnosed with clue deficiency syndrome but thumbs up with fingers crossed for one man army for executable body language.

John Adebisi, adebisijohn21@gmail.com

APC AND THE BROOM FOR CHANGE

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broom is a cleaning tool made from several dry palm fronds, laid horizontally beside each other, bound by a rubber band or plastic cord. A broom serves multiple purposes: it is popularly utilised for cleaning and sweeping but can also be used for removing cobwebs and pounding ewedu leaf.

Most Nigerians think of brooms differently today.

In 2015, the All Progressives Congress (APC) crafted a new significance for brooms in the minds of Nigerians at home and in the Diaspora.

The broom became a symbol of change; a new beginning, a new Nigeria where everyone who wields the broom is automatically part of the progressives; the fighters, the avant-garde, the people who risked their lives to rid Nigeria of its filth.

The early broomers promised to bring about change; change in the social economic status of Nigerians, corruption perpetrated by the elite, poverty amongst the masses, deteriorating health care system, high unemployment rate, huge infrastructural deficit, and so on.

The broom for change became a symbol of hope, light and a new Nigeria; a country free of impunity, insecurity, corruption, and elitism.

Nigerians enthusiastically swept out their tribal and religious sentiments and as a matter of fact, in some geopolitical zones, brooms were no longer used for its original purpose; some forbade their brooms to touch the ground, it was their holy sacrament. They hung it on the dashboard of their cars for all to see, especially those frustrated looking men and women standing under the rain with umbrellas that barely shielded them from the heavy rainfall.

The broom was wielded proudly and boisterously by politicians, students, traders, bus drivers, men and women of different calibre, religion, social and ethnic groups. In 2015, the broom for Change brought more reverence than money; furthermore an ailing grandmother gave up her lifetime earnings of N1 million in exchange for the broom of change.

May her soul rest in peace.

Fast-forward to this present day. The metaphoric exposition of the broom has been stripped from its neck and unbundled into 150 single pieces. While a faction of the All Progressives Congress picks up 40 broomsticks from the unbundled stack that lays bare on the ground, another faction grabs 20, 16,19, and so on.

Osasu Igbinedion, executive producer of The Osasu Show

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WEEKLY PULL-OUT PULL

ë THE NATIONAL NATIONAL NA ASSEMBLY HAS NO RIGHT T TO EXERCISE JUDICIAL FUNCTIONSí

05.04.

04 2016 04.

Dr. Adewale Olawoyin SAN

2/DASHBOARD

05.04.2016

A Shipowner Can Only Limit His Liability if He Can Prove that the Damage Caused was Not His Actual Fault PAGE 4

Nigeria’s War on Corruption is on Course PAGE 5

Women Lawyers Fault Senate on Rejection of Gender and Equal Opportunities Bill PAGE 5

Law Reform for Economic Development: Focus of 2016 NBA-SBL Business Law Conference in Abuja PAGE 5

‘The Legal Profession is a Noble One and Requires Decency’ PAGE 6

QUOTABLES

‘Very few of the courts are convenient and it is something that the Ministry of Justice must look at critically because the physical structure of the court itself is what gives the general public the first perspective as to the justice system’ – Chief Bolaji Ayorinde SAN

The Law and Operation of a ‘National Carrier’: Why Amaechi must Watch it PAGE 7

Enforcing the Right to Life of Victims of Extrajudicial Killings PAGE 14

COLUMNISTS SANDRA OKE Pearls of Law A pearl is revered for its purity, elegance and beauty. Similarly, Pearls of the law will address an assortment of legal issues ranging from trending matters to matters that will shape our future as lawyers. It will also consider the time-honoured principles and traditions of the law with a view to restoring the purity, elegance and beauty to the practice of law.

Sandra Oke is a graduate of the University of Lagos and obtained her LLM from Queen Mary University London and an MBA from Liverpool John Moores University. She is a Counsel at Norfolk Partners.

ADERINSOLA FAGBURE Aderinsola is a keen writer having written her first article which was published by the junior section of a national daily, at the age of five. She is a graduate of Igbinedion University Okada and has just completed a Master’s degree in Corporate Law at the University College London. She is a member of the Nigerian Bar Association. Her column, “In black and white” discusses the need for innovation in the Nigerian legal scene particularly in the fields of Mergers and Acquisitions, Corporate Finance, Corporate Governance and Energy Law.

MAY AGBAMUCHE-MBU EDITOR JUDE IGBANOI DEPUTY EDITOR TOBI SONIYI ASSISTANT EDITOR AKINWALE AKINTUDE REPORTER TUNDE BUSARI GROUP HEAD OCHI OGBUAKU II ART DIRECTOR

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Solid Minerals: Ready for Take-Off with Launch of Roadmap

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ast Thursday 31st March the Ministerial Committee on the Roadmap for the Development of the Solid Minerals Sector concluded its 4 week assignment in record time with the presentation of the Roadmap to the Minister of Solid Minerals Dr. Kayode Fayemi titled ‘On the Road to Shared Mining Prosperity. Roadmap for the Growth and Development of the Nigerian Mining Industry.’

Dr. Fayemi in his thank you speech was impressed by the quick turn around by the committee in concluding its assignment. He noted that ‘the roadmap will be subjected to review by other stakeholders so that we can ensure an airtight document that can withstand the test of time and at the end we want to ensure that this is a national document that is supported across board, and outlives any administration.

The journey for sustainability for the sector has to be a continuous one.’

He further added that he had been mandated by the National Economic Council to circulate the Roadmap to all governors and the governors have also been mandated to respond to the Roadmap within a particular timeframe so that the finalised document can come back to the Committee for fine-tuning and cleaning up. As soon as the stakeholder review process is concluded he said ‘we shall make this Roadmap available to the general public so that set directives are clear and everyone can track it as we proceed.’

Dr. Fayemi noted that the recommendations within the Roadmap will be considered to be in the best interest of the nation. He went further to highlight the need for strategic communication so that people are aware of what is being done within the sector. For example improvement of IT infrastructure in the Ministry is going to be one of the flagship projects in the 2016 budget. In conclusion he added ‘What will grow this sector is not government finance. It is the enabling environment that government creates for private sector investment to thrive’.

The Road Map Committee under the Chairmanship of Professors Ibrahim Garba and Siyan Malomo, and fourteen other eminent Nigerians was inaugurated on March 1, 2016 to formulate a course that will stimulate the rapid growth of the sector. I must add here that it was great to work with a team of brilliant and selfless Nigerians giving their all for a common good.

The reform process in the mining sector started in 1999 that decade saw key changes including the passage of a new Nigerian Minerals and Mining Act, 2007, a Nigerian Mineral and Metals Policy (2008), creation of a modern Mining Cadastral Office, refinement of the tax code and expansion in airborne mapping of the country to sharpen knowledge of the mineral endowments.

Credit must be duly given to past initiatives in this sector which the Committee accordingly acknowledged and in turn also leveraged on these previous developmental initiatives instituted by the federal government aimed at improving deficiencies encumbering the growth of the sector.

The Roadmap is based on the identification of the current status and hindrances to the development of the mineral resources of Nigeria and proposed solutions to overcome such barriers.

It also prioritised activities for implementation and provided the time frame for all activities, including creating scenarios and models for successful implementation and monitoring of activities, while also developing a consensus strategy for the buy-in of all stakeholders.

The sector faces several challenges with geosciences, industry participants, stakeholders, institutions, governance and other enablers of the sector. Geosciences: Nigeria, despite recent progress, has weak mechanisms for gathering, disseminating and archiving critical geological data required by investors and policy makers.

Industry participants: operators across the mining value chain face a range of challenges from insufficient infrastructure to policy uncertainty

that together constrain investment confidence.

Artisanal and Small Scale Mining (ASM) should be formally integrated into the sector by improving its productivity /social wellbeing through formalisation of associations into cooperatives, provision of extension services and training and addressing health and social concerns faced by the participants. This can be encouraged by wider participation in beneficiation (a cleansing process) and downstream refining and processing through incentivising forward integration by existing participants and by improving trading and the ease of transactions through the set-up and formalisation of metal exchanges and mineral certification authorities. Stakeholders: the decline in the mining industry reduced the focus and leverage of key stakeholders e.g. in resources, talent and partnerships. It will be necessary to improve the engagement of states within the minerals and mining sector, particularly around financial participation, revenue sharing, and the coordinating oversight by the federal ministry.

Another area requiring improvement is the engagement of communities through coordination of corporate social responsibilities, incentivised participation and education. Institutions and Governance: the Ministry’s own organisational design needs to be refined to ensure clear and strict enforcement of its own rules as well as separation of powers between States and Federal Government. The building of the organisational and functional capabilities of the Ministry of Solid Minerals Development and the improvement of enforcement of existing regulations is necessary. A stronger regulatory framework for the industry is required to resolve regulatory conflicts between the existing guiding regulations and industry participants. Policy consistency and direction is equally important in ensuring stronger economic and political coordination of minerals and mining policy in Nigeria. Key Enablers: ancillary requirements are needed for the proper functioning of the minerals and mining ecosystem such as talented labour, infrastructure such as railroads and rolling stock capacity, competitive financing systems, asset security, and mine and related support services. Nigeria should invest in these and a range of other enablers such as bulk handling terminals, technical and engineering capacity, regulatory reform and the expansion of access to financing to drive sector transformation.

Ensuring of social equity in the labour force is important and this can be achieved through addressing issues of exploitation of women and children.

A set of 8 critical levers for success that the government can put in place to improve the ecosystem for the minerals and mining sector were recommended. These are: i) Integrated Strategy, Proactively Communicated ii) Investor Friendly Regulatory Environment iii) Coordinated Infrastructure Investments iv) Community Partnership v) Investment Funding vi) Institutional Reform: vii) Geoscientific Value Add viii) Mining as Development Catalyst The Committee also reviewed how other countries such Guinea Democratic Republic of Congo (DRC) and Cameroon have used similar levers to improve the competitiveness of their mining sector.

On the issue of State Governments the Committee recommended that the Ministry needed to work with States using a variety of mechanisms to communicate that mining will remain the exclusive right and under the control of the federal government, yet this will not preclude the states from becoming legitimate equity investors in their own right by applying to the Mining Cadastre Office (MCO) for licenses alone, or in partnership with private companies. States do not have a right to block investor access to land or licenses, or interfere with the operations of legitimate miners.

Stability of the law, its uniform applicability to all parties, the clarity of the fiscal regime as well as the regulatory managers is critical to attracting long-term investors into Nigeria.

The Committee noted that in order to avoid

the re-run of the difficulties seen in the oil industry, it is critical that a mechanism for more engagement with communities throughout the life cycle of mines be undertaken. In addition, investors should be actively encouraged to co-invest with communities if possible, or set-up transparent trusts to help communities manage any profit sharing or similar economic returns received. Federal mining inspectors should ensure operator compliance with key provisions of the Act especially with respect to pollution and remediation.

Donors and international agencies were noted as important sources for the development of financing for early stage activities in mining e.g. via grants, aid flows, low cost loans, advisory services, research, capacity building and human capital development.

The Ministry, it was also observed needed to work closely with the National Universities Commission to expand the capacity of the existing academic programmes to admit students as well as upgrade the capacity of other providers to offer professional and executive courses.

On the enforcement of existing laws, the Ministry’s track record to date of enforcing minerals and mining laws and regulations has been haphazard. Two key institutions – the Mining Police and the Mines Inspectorate – have either not been active or have been under-utilised. As a result, there has been a proliferation of illegal miners, including Asian and African illegal immigrants at sites spanning from Osun to Zamfara State. The committee recommended the need to rebuild the Mining Police, which historically was an arm of the Nigeria Police Force (NPF) assigned to and trained by the Ministry. So also does the Mines Inspectorate need to develop a deeper and more forceful field presence to not only combat poor safety practices at mines but also to require that all operators hold the right license for the activities underway, as well as file regular data reports as required by the law. Interestingly enough Dr. Fayemi has already embarked upon collaborating with the Armed Forces as he was on television last Friday delivering a lecture at the National Defence College entitled ‘Solid Minerals and National Development in Nigeria: Implications for National Security.’

With regards to financing and the business climate, Nigeria’s banking and shadow finance system has some exposure to mining e.g. financing trading activities for lead-zinc and gold. Production financing continues to be limited due to the lack of bankable data for exploration. In addition, the sector does not have a systematic understanding of mining’s potential. Thus, few banks have dedicated minerals and mining desks and teams and as a result access to credit either from banks or capital markets has been low, meaning key capital equipment (such as rigs and draglines) are not financed. It is possible that Nigerian banks are also reacting to the absence of international capital or their own concerns about the quality of geosciences data available to investors. Consequently, many mining investors push into the ASM sector to keep their capital costs low as well as their risks manageable, which in turn serves to impoverish growth potential. Thus much of the mining that takes place today is disconnected from the formal financing system. A systematic relationship and knowledge building effort among banks will be required to start transforming the financing environment for mining in Nigeria.

Alignment with the African Mining Vision (AMV) is very important, it was observed that Nigeria has operated independently of any clearly identified and formulated plan for the Mining Industry across Africa and this is in spite of the many benefits of markets and expert proficiencies that exist across the continent. However following the African Union Assembly’s 2009 adoption of the Africa Mining Vision (AMV) as a key continental framework, the need to promote mineral resources-based

MAY AGBAMUCHE-MBU

LEGAL EAGLE may.mbu@thisdaylive.com

development and structural transformation on the continent has become clearer. The AMV – if adopted and domesticated – can be the framework tool for Nigeria to harmonise its mining sector with developments, knowledge and capabilities present across Africa.

The committee further recommended that the name of the ministry revert to its former name of ‘Ministry of Mines & Steel Development’ which reflects the appropriate nomenclature of the sector.

Having had four weeks of widely reviewing the mining sector and charting the roadmap I had the privilege of visiting the MCO which is one of the Ministry of Solid Minerals agencies, an autonomous institution and the sole agency whose responsibility is the administration of mineral titles. This institution is the first port of call for any investor with respect to the granting and processing of mineral titles and is responsible for the maintenance of a cadastral atlas and title registers. Engr. Mohammed Amate, the Director –General /CEO of the Nigerian Mining Cadastre Office was a member of the Committee and he therefore gave me the opportunity of having a personal guided tour of the Cadastre office conducted by Engr. Obadiah Nkom Director Concession. One could not but notice right away the professional manner in which the Cadastre was run, incorporating international best practices. The principle of ‘first-come-first-served’ is observed to the last letter and the non-discretionary granting of mineral titles rule is equally observed from the Priority Register all the way to the Evaluation room where lawyers, geologists, mining engineers and surveyor check each application before it is sent to the Director General who grants the titles. Section 100 of the Nigerian Minerals and Mining Act 2007 is strictly observed on ‘Notice to Owner Occupier’ which states that ‘when an application is made for a Mineral title in respect of an area which includes any private land or land occupied under a state lease or right of occupancy, the notice of the application shall be given in the prescribed manner to the owner or occupier of the land and consent obtained before the licence is granted, otherwise the licence may be granted with exclusion of'the private land in question.’

The village head I am told must go to court to swear an affidavit that consent has been given and it is irrevocable. The security checks cannot be tampered with as an orderly filing system exists depicting transparency all the way. The next stage I have been duly informed is the digitalisation of the application process.

Just as the Committee was presenting its Roadmap, so was the deadline expiring for defaulting companies to regularise their mining licenses or face revocation of same and it was no surprise that the MCO was a beehive of activity, raking in millions of Naira from license renewals.

With the concerted effort by government to take the reformation of the mining sector onto a higher plane it is hoped that this time around World Bank standards will be the norm right through the sector and that domestic usage of industrial minerals will increase, attracting the desired inflow of domestic and international investors and therefore kick-starting the diversified economic growth that the nation is so urgently in need of.

4/LAW REPORT

05.04.2016

A Shipowner Can Only Limit His Liability if He Can Prove that the Damage Caused was Not His Actual Fault

I

t is settled law that a shipowner seeking to limit his laibility for damage caused by his ship can only succeed if he can prove by preponderance of evidence that the collsion occurred without any actual fault or privity of his. In the instant appeal, the Court of Appeal held that the Appellants having failed to show by preponderance of evidence that the collison was not their actual fault, could not succeed at the appeal which lacked merit.

Facts It was the Respondent’s case at the trial court that on 6 June 2006, at Snake Island, Lagos the 1st Appellant (the vessel and one of the defendants at the trial court) under the control and management of the 3rd Appellant (Master of the vessel) negligently and recklessly executed a 180 degrees turn directly opposite the Respondent’s jetty and shoreline. This resulted in the development of severe propeller wash and under current which travelled under the Respondent’s jetty and overturned two moored vessels under the lease, control, possession and management of the Respondent.

The Respondent (Plaintiff at the trial court) instituted an action for negligence and damages at the Federal High Court, Lagos Judicial Division (“trial court”). The originating processes were served on the 2nd Appellant (owner of vessel) through the 3rd Appellant because he was not within jurisdiction.

During trial, the Appellants were represented by the same counsel.

The Appellants denied any liability for negligence and urged the court to limit their liability in line with the provision of Section 363 of the Merchant Shipping Act MII Laws of the Federation 2004 (“MSA 2004”). After careful examination of the evidence adduced by both parties and legal arguments canvassed by both counsel, the trial court gave judgment in favour of the Respondent and held that the Appellants could not limit their laibility as there was credible evidence of negligence on the part of the Appellants.

Being dissatisfied with the judgment, the Appellants filed a Notice of Appeal to the Court of Appeal, Lagos Judicial Divison (“the court”) on 16 July 2012. They thereafter amended their Notice of Appeal (“NOA”) and filed same on the 27th day of October 2014. The following issues for determination were raised by the Appellants; a. Whether the learned trial judge could exercise jurisdiction over the 2nd Defendant/Appellant? b. Whether the Appellants were negligent and reckless in maneuvering the 3rd Appellant in such a way as to cause damage to two moored vessels at the Respondent’s jetty? c. Whether the learned trial judge adequately evaluated the totality of the Appellants’ evidence? d. Whether the negligence or otherwise of the 2nd Appellant precludes their right to limit their liability in accordance with Section 363 of the Merchant Shipping Act Cap MII laws of the Federation 2004?

The Appeal came up for hearing on the 2nd of February, 2015, wherein the Appellants and Respondent adopted their respective briefs of arguments.

Arguments canvassed by Counsel On Issue one, the Appellants’ Counsel argued that the judgment of the trial court is null and void since the originating processes meant to be served on the 2nd Appellant were delivered to the 3rd Appellant. He was of the view that an originating process meant for service on one defendant cannot be served on another. He further argued that it was irrelevant that the 2nd Appellant eventually entered appearance through Counsel. He relied on the cases of MANAGEMENT ENTERPRISES LTD v OTUSANYA (1987) NSCC 577 and UNION BEVERAGES LTD v ADAMITE CO. LTD (1990) 7 NWLR (Pt. 162) 348.

In response, the Respondent’s Counsel argued that this issue of improper service was not raised at the trial court and that the receipt and acknowledgement of service by the 3rd Appellant on behalf of the 2nd Appellant was sufficient to show that the 2nd Appellant was aware of the suit and was not in any way prejudiced. He further submitted that the 2nd Appellant having entered appearance through counsel and having filed all relevant processes will be deemed in law to have submitted to the jurisdiction of the court and waived his right to be directly served. He relied on FIRST INLAND BANK v GILBERT FIDDI (2013 LPELER) (20832) CA. In reply, the Appellants’ counsel referred to the case of M.V.WATER STAR & ORS v BLIZARD SHIPPING CO. LTD (UNREPORTED) CA/L/368/2009 where the court had held that an irregularity in the service of an originating process could not be waived.

Issue two, was on whether the Appellants had been negligent.

The Appellants’ Counsel submitted that the following facts were clear from the Respondent’s testimony; (a) the 1st Appellant was being pulled by two Nigerian Airport tugs, (b) the 1st Appellant was in a compulsory pilotage area (c) a Nigerian Port Authority Pilot was on board the 1st Appellant (d) The 1st Appellant under the guidance and compulsory pilotage

In the Court of Appeal In the Lagos Judicial Division Holden at Lagos On Thursday, the 10th Day of March, 2015 Before Their Lordships Joseph Shagbaor Ikyegh Samuel Chukwudumebi Oseji Yargata Byenchit Nimpar Justices, Court of Appeal CA/L/616/2012 Between 1. The MV. Courageous Ace ...... Appellants 2. The Owners/Charterers Of Mv. Courageous Ace 3. The Master Of The Vessel Mv Courgageous Ace And 1Nigerdock Nigeria Plc ....... Respondent (Judgment Delivered by Samuel Chukwudumebi Oseji, JCA)

of NPA tugs and NPA pilot, was attempting to turn at a designated turning point (e) the sudden maneuver by the 1st Appellant that resulted in damages to two moored vessels was carried out in order to avoid hitting the Respondent’s jetty. He submitted that the aforementioned facts show that the Appellants were not negligent as they did not breach the duty of care owed to the Respondent. He contended that the act carried out by the Appellants was reasonable and not a breach of duty of care as it was done in order to avoid collision with the jetty which would have resulted in greater damage to the jetty and possible loss of lives.

In his response, the Respondent’s Counsel argued that the second ground of the NOA, from which Issue 2 flowed, did not form part of the judgment of the trial court and should thereby be discountenanced. He relied on MADUIKE v TETELIS (NIG) LTD (2015) LPELR (24288) CA. He further argued that the case of DARE v FAGBAMILA (2009) 14 NWLR (Pt. 1160) 117 relied on by the trial judge in holding that the Appellants were negligent was relevant. In his reply, The Appellants’ counsel submitted that ground 2 of the NOA flowed directly from the judgment of the trial court and was therefore competent to be heard.

Issue 3 was on the allegation that the trial court failed to adequately evaluate evidence. On this point, the Appellants’ Counsel submitted that the trial judge did not evaluate exhibits M-R, which were documentary evidence and were material to the Appellants’ defence. He argued that complete evaluation of evidence is a mandatory requirement for a valid judgment and relied on MOMOH v UMORU (2011) 15 NWLR (Pt. 1207) 217 AT 274. He further argued that where a trial court fails to properly evaluate the evidence of the parties, the Appellate court can reevaluate the evidence. He thereafter contended that the trial judge failed to consider exhibit 01-02 which showed that there was an NPA pilot controlling the vessel and they should not be held negligent where the vessel was under the direct control of the NPA Pilot in a compulsory pilotage area.

In response, Counsel for the Respondent argued that a court is only expected to give probative value to material and relevant exhibits or evidence and that Exhibits M1– R were not relevant to the determination of whether the Appellants were negligent or not. He thereafter submitted that the court can reevaluate the evidence and relied on ABIODUN v STATE (2013) 9 NWLR (Pt. 1358) 138.

Issue 4 addressed the Appellants’ proposition that they

were entitled to limit their liability, The Appellants’ Counsel argued that the trial judge failed to properly interpret the phrase “actual privity” stated in section 363 of the MSA 2004.

He contended that for a ship owner to be liable, the fault or privity must be that of somebody who is not merely a servant or agent but somebody who the company is liable for because his action is the very action of the company itself. He further submitted that the evidence before the trial court did not place actual fault or privity on the owner of the vessel. He thereafter argued that the trial judge wrongly applied section 363 of the MSA 2004 by interpreting it in line with MSA 2007 and contended that the 2007 Act changed the test for limitation of liability by removing the requirement of “actual fault or privity”. He then finally argued that the sum of liability was wrongly miscalculated and should be N853, 052.50 relying on the limitation figure per tone set by the Minister and by virtue of legal notice of No 94 of 1964.

In response, the Respondent’s Counsel argued that the Appellants could not limit their liability by relying on section 363 since there was credible evidence that attributed actual fault or privity to the 2nd Appellant. He relied on OWNER OF M.V. MAIDEN v NIGERIAN PORTS AUTHORITY (2011) All FWLR (Pt. 583) 1945 at 1962 where it was held that the issue of fault is a matter of evidence and is to be decided by the court. He thereafter referred to books suggested by the Appellant and contended that they cannot be applied because they were based on the English Merchant Shipping Act 1894 and English Maritime Insurance Act 1906 which are different from the MSA 2004.

The Appellants’ Counsel in reply argued that the English merchant Shipping Act 1894 and the Nigerian Merchant Shipping Act 2004 are in pari materia and relied on the decision in The Leliegracht Nigerian Shipping Cases Vol 3 1987-1990 page 372 at 378.

Court’s judgment and rationale In resolving Issue one, the court acknowledged that it is trite law that the issuance and service of an originating process on a defendant is a condition precedent to the jurisdiction of the court. The court however held that since the Appellants were represented by the same counsel in the trial court and appearance had been entered on behalf of the 2nd Appellant, it was out of place for the 2nd Appellant to complain of lack of proper service on appeal because such complaint will be deemed to have been brought late and the 2nd Appellant is deemed to have waived such right. The Court relied on EZOMO v OYAKHIRE (1985) 2 SC 260.

On issue two, the court held that ground 2 of the amended notice of appeal did not flow from the decision of the trial court and was thereby incompetent. The court relied on ADEGOROYE v AJAYI (2003) FWLR (Pt. 171) 591.

On Issue three, the court started by stating that Appellate courts are not expected to substitute their views on evaluation of evidence tendered except where the evidence was not acted on at the trial court. The court relied on AYUYA v YONRIN (2011) 4 SC (Pt 11) page 1. The court thereafter held that Exhibits M-R were not tied to any of the averments in the Appellants’ statement of defence and no oral evidence was led by the parties to explain their essence. The Court thereafter stated that the evidence of the Appellants’ sole witness was hearsay and as a result the trial court placed sole reliance on the Respondent’s witness to determine if negligence was proved. Furthermore, the Court held that the said exhibits had no bearing on the defence of negligence as they related to activities of the ship’s crew during movement which did not show lack of duty of care which is the hallmark of the tort of negligence and consequently served no useful or evidential purpose. Issue 3 was therefore resolved in the Respondent’s favour.

On Issue four, the Court found that the trial Court did not interpret section 363 MSA 2004 in line with Section 354 MSA 2007 but only stated that there was a similarity between both provisions. The Court further held that the English authorities and books referred to by the Appellants are distinguishable from the present case based on the fact that the 3rd Appellant is the master of the 1st Appellant and therefore he is not merely an agent but someone who will be liable because his action is assumed to be the action of the 2nd Appellant. The court was of the view that a shipmaster is the alter ego of a vessel on voyage on behalf of the ship owner.

In concluding, the Court held that section 363 of the MSA 2004 cannot avail the 2nd Appellant and more so the claim against the Appellants was jointly and severally, not specifically solely against the 2nd Appellant. The Court further held that the appeal lacks merit, dismissed it accordingly and awarded cost of N50, 000 against the Appellant.

APPERANCES For the Appellants; E.Ernedom (Miss) For the Respondents: Kayode Ogunjobi and Bolaji Ramos Reported by Ibukunoluwa Omotorera Owa, Aluko & Oyebode , Lagos

05.04.2016

NEWS/5

L-R: Professor Akin Oyebode, Dr. Dayo Ayoade, Mrs. Ayo Obe, Professor Itse Sagay SAN and Professor Oby Ezekwesili at the ‘Round Table on Winning the War Against Corruption’ organised by the Department of Jurisprudence and International Law of the University of Lagos held at Professor Ajomo Hall of the Nigerian Institute of Advanced Legal Studies

L-R: Mrs. Priscilla Ogwemoh, NBA-SBL Chairman, Mr. Asue Ighodalo, Dr. Babatunde Ajibade SAN and Mr. Mojibola Ojibara at a media parley to discuss the plans for the NBA-SBL Conference in Lagos

Nigeria’s War on Corruption is on Course

Jude Igbanoi

Despite the doubts expressed by some members of the public, Nigeria’s war against corruption is on course.

This assertion was made by the Chairman of the Presidential Advisory Committee on Corruption, Professor Itse Sagay SAN last Thursday at the University of Lagos.

The event chaired by Professor Sagay SAN was the ‘Round Table on Winning the War Against Corruption’ organised by the Department of Jurisprudence and International Law of the University of Lagos. It was held at Professor Ajomo Hall of the Nigerian Institute of Advanced Legal Studies.

The Keynote lecture delivered

by Mr. Wahab Shittu on behalf of Mr. Femi Falana SAN was titled ‘Rule of Law and the Treatment of Politically Exposed Person in Nigeria.’

Falana expressed dismay that so far Nigeria’s war against cor-

ruption has yielded little or no positive results, as not a single person has been successfully prosecuted and convicted for corruption.

He was disappointed that only two former governors had so far received light punishment by way of plea-bargaining.

He pointed out that Nigeria’s criminal justice system is being manipulated by corrupt politicians who are being granted bail on self-recognizance, and thereafter go to manipulate the justice system, using delay tactics and frustrating the process.

He cited the Joshua Dariye’s case, (the former governor of Plateau State). He stated that Dariye has so far managed to stall his case for the past eight years, having been charged for stealing N500b of the state’s ecological relief fund during his tenure as governor.

Falana stated that it is clear that the bad roads in the country resulting in countless deaths, armed robberies, kidnappings,

deaths in hospitals as a result of the nation’s poor healthcare system are all consequences of the looting of the nation’s wealth by politicians.

He recommended that bail should not be granted to political office holders who have been found to have stolen or been involved in money laundering, he suggested that they should be treated like other criminals.

Falana further recommended that Nigeria’s criminal justice system should as a matter of urgency be reorganised to deal ruthlessly with corrupt persons, including transnational corporations.

He accused the media and the Nigerian Bar Association of unjustly vilifying the Buhari administration for subverting the rule of law and alleging human rights violations without considering the monumental looting of the nation’s treasury in the past few years.

He also recommended that lawyers should be sanctioned for shielding politically exposed

persons from prosecution, and that the NBA should impose heavy sanctions on lawyers who frustrate the process of prosecuting corrupt persons.

He concluded that what Nigeria urgently needs is the establishment of a special anticorruption court by an Act of the National Assembly to be manned by competent judges with proven integrity.

Cases before the proposed anti-corruption courts should be heard and determined within 180 days and all appeals determined with three months.

Discussing Falana’s paper, former Minister of Education, Professor Oby Ezekwesili posited that corruption is like cancer and requires chemotherapy to be eliminated from the system.

Ezekwesili gave examples of other countries i.e. Singapore, Hong Kong and Australia where corruption has been successfully fought and eradicated.

She recommended that the National Assembly should be

transparent with the nation’s budget and that the system must evolve a way of punishing bad behavior and rewarding good behavior.

Another discussant, Professor Femi Aribisala expressed doubt about the current anti-corruption posture of the Buhari administration, he emphasised that ‘You can’t fight corruption with corruption.’

Aribisala pointed out that all the current anti-corruption agencies were established by the PDP administration, including the EFCC, ICPC, TSA, etc and that the present administration has not done much in concrete terms to exterminate corruption from the system.

He regretted the fact that despite the palpable allegations of corruption against some of Buhari’s Ministers nothing has been done to make them face the law.

Human Rights Lawyer and pioneer President of Civil Liberties Organisation, Mrs. Ayo Obe

expressed sadness about the fact that the perception of Nigeria worldwide is that the nation is corrupt.

She highlighted the situation in Brazil where there are calls for the impeachment of the president over allegations of corruption.

Obe recommended the use of technology in the fight against corruption. She also opined that the creation of special anti-corruption courts is unnecessary.

Former Vice Chancellor University of Ado Ekiti, Professor Akin Oyebode stated that only capital punishment would be strong enough to deter corruption in Nigeria.

The highlight of the programme was the unveiling and public presentation of the book ‘Legal Perspectives to Corruption, Money Laundering and Assets Recovery in Nigeria.’

The book consisting of 503 pages was co-authored by Dr. Dayo Ayoade and Dr. S.A. Igbinedion. It was reviewed by Professor Adigun Agbaje of the University of Ibadan.

Women Lawyers Fault Senate on Rejection Law Reform for Economic of Gender and Equal Opportunities Bill Development: Focus of 2016 NBA-SBL the second reading of the bill bill has been voted down on Business Law Conference in Abuja Tobi Soniyi in Abuja for Gender Equality and equal reasons that border on religion Women lawyers, under the auspices of the International Federation of Women Lawyers (FIDA) Nigeria have expressed disappointment over the decision of the Senate rejecting the Gender and Equal Opportunities Bill.

FIDA in a statement signed by Mrs. Inime Aguma, accused the Senate of having the penchant for treating every issue that affects women with levity.

The lawyers said: "The Nigerian Senate should consider treating issues that concern women with the seriousness it deserves.

"There would be no Senate without Women."

"We can no longer afford to have citizens who cannot participate effectively in Governance because of discriminatory practices."

FIDA Nigeria therefore called on all well-meaning Nigerians and Civil Society organisations to cooperate and support the sponsor of the bill with a view to represent the bill and ensure its passage.

The women noted that the Senate rejected the bill at a time when the Nigerian economy was deteriorating and the country needed the participation of all her citizenry to nurture it.

The statement reads: "On the 16th day of March 2016,

opportunities was on the Agenda at the Senate of the Federal Republic of Nigeria.

"Unfortunately this bill which addressed all discriminatory practices against women was thrown out.

"No.5 of the Sustainable Development Goals seeks to ‘achieve gender equality and empower all women and girls’.

"The United Nations in further recognition of the importance of women’s participation in the socio- economic and political activities of any Nation chose the following themes for the International Women’s day and the United Nations consultative forum on women (holding now in New York) to wit: ‘planet 50-50 by 2030: step it up for gender equality’ and ‘women empowerment and it’s link to sustainable development ‘.

"These themes are meant to draw global attention on the need for States parties, to step up gender equality and empower all women and girls.

"FIDA Nigeria has observed that the Nigerian Senate has decided to think differently from the world.

"First the theme for the International Women’s day was trivialised to mean ‘men taking more than one wife’.

"Now, the Equal Opportunities

and traditions underscoring the need to create a level playing field where women are gainfully engaged in Nation building and development.

"The issue raised by one of the Senators that the Constitution guarantees the Rights of all persons and therefore the Gender Equality bill is not required is an argument that defeats itself.

"The discrimination suffered by women is peculiar to women and so there is need for specific legislation to protect the girl child and woman from the monstrosity of our Patriarchal system, cultural and religious beliefs.

"The provisions of the Constitution on human rights are broad based and the Gender Equality bill sought to promote specific legislation that identifies and prohibits all forms of violations specifically, especially as they are not mentioned in the constitution.

"Women make up to half of the Nation’s population and a continuous violation of their rights affects the development of the Nation and projects Nigeria as one of the under-developed nations in the world."

"It is also time that Civil Society organisations act as a watch dog for Government’s inaction and non-implementation of treaties, making government accountable to the society."

Jude Igbanoi

The Vice President, Professor Yemi Osinbajo SAN is expected to speak at this year’s Business Law Conference of the Nigerian Bar Association’s Section on Business Law which will be held in Abuja on June 22-24 at the Transcorp Hilton Hotel.

At a media parley last week to discuss the plans for the conference in Lagos, the Conference Planning Committee explained that the theme, ‘Law Reform and Economic Development’, was carefully chosen to explore and highlight the role law reform can play in facilitating economic development, especially as Nigeria faces challenging times.

“We are looking at the state of the nation and we are looking at those things that we need to drive the nation forward.

We think we need to pay attention to a lot of our laws; many of them have been in our statute book for 50 years or over without any amendments.

And we need to start thinking about different

ways of approaching the reform of our economy and the best place to start is the foundation and base which is the law. That is why we have chosen this theme, and I think it is very important and apt for this time,” noted Asue Ighodalo, Chairman, NBA Section on Business Law. “We are looking forward to a great conference. We are expecting that our report from this conference will be something that we will present to government. We presented our last two reports to government. And we are hoping it will help both the legislature and the executive as they look at ways of diversifying the economy and setting a base for the diversification of the economy,” he added.

Babatunde Ajibade SAN, Chairman, Conference Planning Committee, stated that the SBL conference has become a very important date in the legal calendar in Nigeria, adding that his committee is striving to ensure a successful conference.

“This being the 10th of our annual conferences, we

are particularly proud to be hosting it and we are leaving no stone unturned to make sure that it will be a spectacular conference,” Ajibade emphasised.

On why the 2016 conference is moving to Abuja, he explained that besides the fact that it is the 10th edition, the organisers thought it wise to drive home the theme of the conference by taking it right to the seat of power where it matters most.

Ajibade also announced that Vice President Yemi Osinbajo had been confirmed to speak at the conference opening dinner scheduled for June 22.

The Vice President will speak on the topic ‘Africa Rising: Managing Africa’s Economies for the Benefit of Its Peoples’.

Other confirmed attendees include Kayode Fayemi, Minister of Solid Minerals; Babatunde Fashola, Minister of Power, Works and Housing; and Lanre Babalola, a former Minister of Power, efforts are under way to get other speakers and invited guests to confirm their attendance, Ajibade noted.

6/

05.04.2016

Prospectors and Developers Association of Canada (PDAC) and the Cross River Revolution

Joe Edet

O

n Thursday, February 4th, 2016, as a nominee of His Excellency, Senator (Prof) Ben Ayade, the Governor of Cross River State, I received a special invitation from the Executive Director of PDAC, Andrew Chestle, to attend the 84th Annual International Convention, Trade Show, and Investors Exchange of the Association. The Convention, which was held at the Metro Toronto Convention Centre, Toronto, Canada attracted the crème-de la crème of the Mining Industry.

PDAC, short for Prospectors and Developers’ Association of Canada represents the interests of the Canadian mineral exploration and development Industry. The Association was established in 1932 and has Toronto as its Headquarters.

It is a National Organisation with more than a thousand (1,000) Corporate Members made up of Mining Industry Companies and practitioners in the Mineral resources sub-sector and about seven thousand (7,000) individual members made up of prospectors, developers, geoscientists, geophysicists, geologists, consultants, mining executives, students, Legal Practitioners, financiers, artisanal miners, drillers, dredgers, frackers and the ‘Who is Who’ in the Mineral Mining World.

The PDAC generates its revenue from annual membership dues and corporate sponsorship.

It has Glenn Nolan as its President.

The Convention was indeed unique, it was the largest gathering of practitioners in the sector and also serves as a good barometer for measuring the state of affairs in the industry. Andrew

Chestle had hinted in his letter that, ‘PDAC 2016 Convention will have a large international attendance, reflecting continuing interest by explorers in other countries and attendance by foreign government delegations to present their opportunities'. In 2015, the Convention exceeded more than 23, 000 attendees from over 100 countries including official delegations of more than sixty governments. The 2016 conference lived up to and even surpassed expectations.

Tuesday, 8th of March was tagged the Africa Day and was dedicated to the African Miners that attended the PDAC event. It was the 17th Annual African Mining Breakfast and Seminar organised by the Canada-Southern Africa Chamber of Business at the Sheraton Centre Toronto Hotel.. The Nigerian Delegation was represented by the Director General of the Nigerian Geological Survey Agency, Staff of the Ministry of Solid Minerals Development and the Nigerian Investment Promotion Council.

Of all the states of the Federation, only Cross River State, represented by the Honourable Commissioner for Solid Minerals Development and The Special Adviser, Mineral Resources were in attendance. The Governor, Senator (Professor) Ben Ayade, a man with an eye for the future had facilitated this all by himself.

Reflecting on the lessons to be learnt from the activities at the Conference, it is noted that Nigeria is always represented at the Conference but seems to have learnt very little from it.

As Africa’s giant, we could as well play a leading role in this sector if we get our act together and prioritise rightly.

Typically, however, what obtains mostly is an unserious attitude and lack of attention to details, which in turn, leads to our not being taken seriously by industry players.

Our adulation to matters of the sector is

hypocritical and that is, of course, well noted by international players. Canadian Investment in the Mineral Resources subsector is everywhere in Africa but Nigeria.

Cameroon, South Africa, Kenya, Rwanda and other countries are huge beneficiaries.

Africa is reported to hold about 30% of the world’s reserves of extractive resources and indeed produces over sixty (60) different types of Mineral Resources. Mineral Deposits are spread across the entire continent and more than half of the countries in the continent regard mining as an important economic activity and in some cases, the mainstay of their economy. Little wonder then, that Africa was ably represented by Mining Giants such as South Africa, Sudan, Burkina Faso and Rwanda. According to the African Union Minerals Development Perspective, mineral rich Africa confronts its strongest ever headwind since adopting the African Mining Vision (AMV) in 2009. A prolonged fall in commodity prices presents a challenging environment for implementing the forward-looking continental framework to promote broad-based linkages from the minerals sector into the wider economy in ways that will diversify the economy.

Nigeria’s situation is somewhat peculiar in that out of the 400 available minerals in Nigeria, with about 40 of them found in commercial quantities, still, only 13 of these are currently mined, processed and sold.

The sector only contributes about 0.3% of Nigeria’s Gross Domestic Product, when it has the potential to generate far more than that. This status quo must be reformed.

Frankly speaking and compared to other African countries, Nigeria is an upstart in the industry. Our major challenge in times past has been the restrictive legal framework on Mineral

Resources. However, recent pronouncements by the Honourable Minister of Solid Minerals have been heart-warming. The creation of the Ministry is, in the first instance, a major boost and stimulus to the development of the sector.

The deregulation of the Mining Sector through the Nigerian Investment Promotion Council, which allows for a hundred percent foreign ownership of mining operations is the icing on the cake and should impress foreign partners.

This much was attested to by Ms Pat Okala, the Legal Adviser of the Council in her presentation at the Conference. That said, the foreign partners and International Investors should be willing and ready to cover exploration costs and risks with this huge incentive at their disposal.

It is notable, and it must be mentioned, that fortunately, the amended Mining and Minerals Act 2007 leans towards having the government as a regulator and supervisor, leaving the operation and implementation largely in the hands of industry players. As to the administration of titles, the Mining Cadastre Office is mandated to do such in a transparent, ‘first come, first served’ basis. It also assures of a more secure tenure for Mining Titles, and seeks to curb the menace of dormant titles by the application of the ‘use it or lose it’ principle Unfortunately, Nigeria is not yet regarded as a mining destination because we are still seen primarily as an oil and gas producing nation. The Minister attested to this fact recently when he hosted major stakeholders in the sector. Perhaps, we would have been taken more seriously in the industry if the President had made himself the Minister of Solid Minerals instead of Petroleum especially after the pronouncement that he was keen on diversifying the economy to the Solid Minerals

CONTINUED ON PAGE 7

Legal Personality of the Week Adaobi Nkiruka Egboka

‘The Legal Profession is a Noble One and Requires Decency’ My name is Adaobi Nkiruka Egboka. I am a graduate of Law from the University of Lagos and was called to the Nigerian Bar a decade ago. I have also been a fellow of The Global Network for Public Interest Law (PILnet) at Columbia University Law School. Starting from my National Youth Service, I have been privileged to work with great minds in the profession. I served as a Research assistant to Hon. Justice AdefopeOkojie of the Lagos State Judiciary. I have also been a peer educator on HIV/AIDS and had the privilege of educating secondary school students on issues of HIV/AIDS prevention, sex education and the rights of persons living with HIV/AIDS. At the end of my service year, my interest in human rights promotion, education, litigation, application, advocacy and enforcement made it possible for me to join Legal Defence and Assistance Project (LEDAP), a leading Non-Governmental Organisation in Nigeria, where I was hired as a Legal/ Programmes Officer and rose to the position of Executive Programmes Director. As an ardent believer in the rule of law and the protection and promotion of human rights, I have been involved in a series of activities, locally, regionally and globally, involving legislative advocacy, legal reform and protection of human rights, especially of women and other vulnerable groups. I have also concluded several civil and commercial transactions.

Have you had any challenges in your career as a lawyer and if so what were the main challenges?

One of my major challenges as a lawyer has been with the experience of delays in justice administration in Nigeria. This has

at the Bar, then the other party asked the court for a date to amend their pleadings.

Excited about my latest argument, I sent an update to my boss. On getting to the office, I was seriously reprimanded for letting out my entire arsenal at an early stage of the case. My “new” argument was to have been reserved for the final written address, which explained the reason for the strange look by the judge. This was a very embarrassing experience for me and one I will not forget very quickly.

Adaobi Nkiruka Egboka

seriously affected clients’confidence in the system. For example, there are so many domestic and sexual violence cases where survivors have very good cases but are adamant to continue due to the prolonged delays in the court or investigation by police.

What was your worst day as a lawyer?

I remember as a young lawyer, I sat beside a senior colleague in court and after a prolonged discussion, he convinced me to argue differently and not proceed with trial. I proceeded to present my position.

Her Ladyship gave me a strange look and asked how many years I had been

What was your most memorable experience?

The first time I secured the release of three inmates who had spent 13years on death row. They were in their fifties and had spent the better years of their lives in detention. Their appeal was handled by LEDAP and was allowed by the Court. The excitement in their eyes as they walked out of Kiri-Kiri prison was so fulfilling for me. It was one of my proudest and most humbling moments.

Who has been most influential in your life?

I have been influenced by a lot of great people both at the family and professional level. Having a father who could empower a girl to aspire and impact her world was a great advantage. He understood my dream of becoming a lawyer, motivated and supported me with all he had. I am married to an amazing man who is my friend, mentor and motivator, whose support has kept me aspiring for the highest in all things. Above all, God the Father, Son and Holy Spirit have been everything to me.

Why did you become a lawyer?

As a young girl, I witnessed an incident involving a young apprentice who was accused by his mentor of stealing from his electronics shop. He was tortured and denied legal representation while in detention. His family was not informed of his arrest. He died some years later following the consequences of mixing with strange gangs while in detention. This singular incident was a defining moment for me; I resolved to dedicate my career to defending the indigent and addressing human rights violations.

What would your advice be to anyone wanting a career in law?

My advice for any person who wants to become a lawyer is for the person to be very sure of his/her reason for becoming a lawyer and strive to achieve it. The legal profession is a noble one and requires decency both in diligence and character and the ability to study widely.

If you had not become a lawyer, what would you have chosen?

If I wasn’t a lawyer, I would have been a teacher. I love to impact lives and mentor young people. I get a lot of fulfillment aiding people to move from a position of ignorance to knowledge and I see teaching as an avenue to achieve that.

Where do you see yourself in ten years?

In ten years’ time, I want to be among the key figures at the regional and global levels developing and making key decisions to impact governance and vulnerable persons’ rights in Nigeria and beyond.

05.04.2016

/7

The Law and Operation of a ‘National Carrier’: Why Amaechi must Watch it Emeka Akabogu

story has not changed.

I suggest that in synergy with Dr. Ibe Kachikwu at the Petroleum Resources Ministry, Mr. Amaechi works on entrenching procedures that ensure that 50% government cargo in the petroleum industry is shipped on national carriers as already provided for in our laws.

NIMASA, which is under Mr. Amaechi’s control, can and should complement the effort by enforcing regulatory standards which ensure the national carrier seamlessly complies with IMO requirements and is therefore not in a position to be rejected by charterers. One can get giddy with excitement at the sheer thought of the industry impact this framework will deliver. In today’s environment where NNPC is importing 100% of Nigeria’s petroleum products, term deals with the swap partners should include carriage of swap crude and refined products by compliant national carriers, obviously under commercial terms. The industry will never be the same, neither will the Nigerian economy.

T

he Minister of Transportation Rotimi Amaechi was recently reported to have stated that government was in the process of establishing a new national carrier, to be financed by money from the Cabotage Vessel Financing Fund CVFF and private investors. He was further reported to have indicated that the ownership model for the national carrier will be sixty percent Nigerian and forty percent foreign, and while urging President Buhari to enforce cabotage.

The widely published reports have not been denied by the Honourable Minister, so I will proceed on the assumption that he indeed made those remarks. The idea of establishing a national carrier is great, but I am concerned about the process towards achieving it and the apparent non-existence of a strategically developed supporting framework. I will set out the key areas of my concern and the reasons thereof, which are based on legal and operational factors.

The Idea of ‘Establishing’ a National Carrier The concept of a national carrier is provided for under sections 35-38 of the NIMASA Act, and has been predated by similar provisions in the now repealed National Shipping Policy Act of 1987. Section 35 of the NIMASA Act provides that the Minister may grant national carrier status to a shipping company if it satisfies the conditions set out in the Act. The status confers on the national carrier ‘exclusive right to carriage of export and import cargo belonging to the Federal, State and local governments, including Federal and State owned companies and agencies’, by virtue of section 36(1).

The foregoing provisions obviously suggest that national carrier status could be routinely conferred on deserving vessel owning companies as a means of promoting national interest in shipping and developing a national fleet for the country. The first evident implication is that national carrier status is conferrable on any shipping company, and not necessarily for government ‘established’ organisations. I would go further to venture that government should be very circumspect with the idea of establishing a national carrier. Government failed woefully at running the now liquidated NNSL, and nothing in the administrative impulses of government has so changed as to rule out the same fate befalling a new government ‘establishment’.

However, if government must have an interest, I suggest it must only be on the condition that the carrier must be under the framework of an incorporated joint venture between government and predominantly Nigerian private sector partners, in which decision-making is legally removed from government and the shareholding structure ensures nominal majority stake in favour of the private sector partners. This model has worked excellently with the NLNG and could be easily replicated.

It is Illegal to Invest CVFF in National Carrier The Cabotage Vessel Financing Fund

Minister of Transportation, Rotimi Amaechi

which government is proposing to utilise in establishing the national carrier is meant to provide financial assistance to Nigerian operators in domestic coastal shipping. It has accrued over the last twelve years exclusively from the contributions of private Nigerian and non-Nigerian ship owning firms. Not a dollar from it is from government. Government’s proposal to use this money sounds like robbing Peter to pay Paul. It does not sound fair.

Crucially, deployment of the Cabotage Vessel Financing Fund towards the national carrier will be illegal and ultra vires the Coastal and Inland Shipping (Cabotage) Act. The CVFF is expressly meant to assist Nigerian operators in the domestic coastal trade, while the national carrier status is exclusively for companies operating on international routes, ‘not in Nigerian coastal or inland waterways.’

This position is borne out by a combined reading of section 42(2) of the Coastal and Inland Shipping (Cabotage) Act and section 35(b) of the Nigerian Maritime Administration and Safety Agency Act. Section 42(2) of the Cabotage Act states in respect of the CVFF as follows: (2) The purposes of the Fund shall be to promote the development of indigenous ship acquisition capacity by providing financial assistance to Nigerian operators in the domestic coastal shipping.

Section 35(b) of the NIMASA Act on its part states: 35. The Minister, on the recommendation of the Agency, may grant national carrier status to a shipping company if –

PROSPECTORS AND DEVELOPERS ASSOCIATION OF CANADA (PDAC) and Agriculture Sectors. Such a move would have been a more convincing one.

Fortunately, Cross River State, through the pragmatic and visionary leadership of the Governor is on the threshold of revolutionising the hitherto moribund sector with the creation of the three ministries of Oil, Gas, and Solid Minerals. These are the frontier ministries charged with the responsibility of revolutionising the sector. The incorporation of some special purpose vehicles is to drive the process and reposition the state as a competitive player in the industry. The Governor has demonstrated

huge capacity and political will to implement reforms through his actions and to create an enabling environment of expertise knowledge, transparency and accountability to successfully reform the sector and assure potential investors of our readiness to partner with them for them to excel. His arms are wide open to welcome investors.

In conclusion, the Federal Government should unburden itself and encourage States to play more active and supervisory roles in the sector by coordinating activities and collaborating with traditional and religious

(b) the vessel owned by the company operates on international route, the deep sea and not in Nigerian coastal or inland waterways.

Of course I think this provision of the NIMASA Act is unreasonable to the extent it limits promotion of fleet development to international routes to the detriment of coastal and inland operations. But it is the law. Any attempt by the Honourable Minister of Transport to deploy the CVFF to the establishment of a national carrier, however altruistic the intentions, will be illegal.

Maximising Value from the National Carrier Status A national carrier is only as useful and effective as the framework under which it operates allows. I think it will be very useful to enable this framework by ensuring the process guarantees cargo for national carriers under terms set out in the Act. It seems to me that it would be more impactful on the economy if government could simply ensure that the existing policy under the law is implemented in favour of deserving private shipping companies as opposed to pursuing direct investment as proposed.

Back in 2006 Mr. Femi Otedola, through his Seaforce Shipping Limited bought the Nigeria Unity Line (with no assets) for 20million USD for the sole purpose of utilising the company’s national carrier status. His money reportedly went up in smoke as the framework for translating that national carrier status was not existent. Today the

CONTINUED FROM PAGE 6 leaders in their domain to sensitise and create awareness of the dangers of illegal and artisanal mining. Nigeria stands a great chance of revamping the sector, creating so many jobs and increasing the revenue base of the nation. The PDAC is a platform which advocates for policies such as access to land, mining securities, environmental and safety standards. With these suggestions, a new era of success awaits the Minerals Sector.

Joe Edet is a Lawyer and Special Adviser to the Governor of Cross River on Mineral Resources.

‘Looking for Private Investors’?

I have earlier argued that existing shipping companies that meet national carrier status criteria should be conferred with same. Unfortunately, the government has not even set out guidelines or regulations for conferment of national carrier status as required under section 36(2) of the NIMASA Act. This is an immediate imperative and I advise the Honourable Minister not to put the cart before the horse. Mr. Amaechi indicated in his remarks that he has already empaneled a committee to look for private investors who will work with government in establishing the national carrier. This sounds more like private placement as opposed to a public offer with clearly set out criteria. It will be useful for government to clearly set out its required criteria for national carriers and confer same on companies that qualify. In the absence of such companies, it may then open a transparent process to facilitate investment in an incorporated joint venture if it insists the government must have a stake. The idea of looking for private investors under opaque circumstances for the national carrier is not advisable.

60-40 Ownership Structure Between Nigerians and Foreigners I hope and advise that the 40% foreign interest will be 40% of the private sector shareholding and not of the entire shareholding. An incorporated joint venture should see government with minority shareholding and private owners with majority. If government decides (albeit illegally) to use the CVFF to take up to 49% as in the NLNG model, the private sector will be left with 51%, of which Nigerians should control 60% and foreigners 40%. It is instructive that the decision-making for the IJV is going to be determined by the private sector shareholders so this should be considered.

President Buhari to Implement Cabotage?

I am minded to believe that the Honourable Minister was misquoted on this one. The Minister of Transport is the be all and say all as far as cabotage implementation is concerned under the Cabotage Act. He is all powerful and needs no further directives from the President. Indeed it is the Minister that is expected to propose initiatives to the President. There are so many outstanding things awaiting the Minister’s action for cabotage implementation. A starting point is issuing regulations or guidelines for the grant of Ministerial Waivers, in addition to those relating to national carrier as stated earlier and a raft of others under both the NIMASA Act and the Cabotage Act. Implementation simply requires effective monitoring and documentation of ships coming in and working within Nigerian waters, which NIMASA is charged with. Adequate intelligence options already exist under extant tools cheaply available in today’s maritime market. The Minister’s work is clearly cut out in cabotage implementation.

Amaechi’s call is simple - just do it.

Emeka Akabogu specialises in maritime law and is the Senior Partner at Akabogu & Associates.

8/COVER

05.04.2016

05.04.2016

COVER/9

‘The National Assembly Has No Right to Exercise Judicial Functions’ One of the most vibrant sectors of the Nigerian economy is unarguably that of telecommunications. Over the past fifteen years there have been massive investments and huge profits generated by the sector, it has witnessed exponential growth and this has had a positive impact on the economy, but the sector is not without its attendant challenges. One of such challenges is the ongoing imbroglio between MTN, the NCC and the Federal Government. The tussle over the propriety of the fine imposed on MTN for its infraction of NCC regulations has resulted in the intervention of the House of Representatives. In this interview with May Agbamuche-Mbu, Jude Igbanoi and Tobi Soniyi, Dr. Adewale Olawoyin SAN, a distinguished ‘scholar-practitioner’ examines the implications of this fine on the ease of doing business in Nigeria and the general regulatory environment.

I

n October 2015, the NCC fined MTN N1.04 trillion for failure to disconnect 5.1 million unregistered subscribers’ SIM cards from its network. Subsequently the fine was reduced to N780 million after several entreaties by MTN. What are your views on the fine imposed on MTN and its impact on the ease of doing business in Nigeria?

My views on this matter are very simple. To start with, what are the underlying facts we have been able to garner from the newspaper reports? First, NCC introduced Regulations imposing a fine for the failure of any telco to register any SIM card that is activated. Second, all the operators, including MTN, were fully aware of the quantum of the fine. It is my understanding that all the operators were either involved in or carried along in stipulating the quantum of the fine especially given the security implications of having unregistered activated SIMS in the system. Third, none of the operators complained about or challenged the stipulated quantum of fine per SIM, at the time it was imposed, as being excessive or unreasonable in the event of an infraction. Fourth, the fine imposed on MTN was in line with the quantum of the fine set out in the NCC Regulations.

With that background, I have no views on the fine imposed for as long as it is in accordance with the published NCC Regulations and not arbitrarily imposed as we see with some other Government agencies in the recent past. On the issue of the impact, if any, on the ease of doing business in Nigeria, I struggle to see that there is an issue here. One of the typical concerns of foreign investors is arbitrary rules and regulations. This is not the case here because the operators were fully aware of the quantum of the fine long before the particular infraction in this case. The fine has no implications for doing business in Nigeria as all the telcos continue to post massive profits from their Nigerian operations. The level of the fine was simply a manifestation of the importance the Federal Government of Nigeria attaches to the grave security implications of unregistered SIMS at a time of increased sophisticated acts of terrorism which have caused numerous innocent casualties with the aid of mobile phones.

It has been well reported that the House of

Representatives has been conducting enquiries into the negotiations the Federal Government is having with MTN over the fine of N1.04 Trillion levied on the Telecommunications company by the Nigerian Communications Commission (NCC). However the conduct of the House of Representatives Committee on Telecommunications comes into question as they are reported to have “walked out” a representative of MTN’s Chief Executive Officer at the last investigative session in anger. In light of the committee’s concerns, is this a legitimate enquiry into the matter, which is pending, or is the Committee becoming party to the debacle?

Your question is quite loaded in many respects.

I am not aware of what actually transpired on that day and the context of the so called walking out. Depending on the context, walking out may be a polite request to leave the proceedings or a rude and condescending dismissal of the person’s presence at the proceedings. However, there are two prongs to your question. First, the legitimacy or otherwise of the House Committee on Telecommunications conducting a hearing on the matter and second, the timing and what I would characterise as the attitudinal issues around hearings in the House of Representatives in particular. The constitutional power of the National Assembly to set up committees to conduct what is generally referred to as oversight functions is not in doubt. A combined reading of sections 62, 88 and 89 of the 1999 Constitution pretty much settles the point. The thorny issue from my experience, and which we see playing out in this case, centres around the misconceived perception of the scope of the oversight functions and the manner in which this function is conducted. One sees a prevalent tendency of these committees (especially in the House of Representatives but to a lesser extent in the Senate) constituting themselves into what we see as the annex of the judicial arm of government. We have seen in the past a committee of the House giving orders that the General Meeting of a Bank be stopped because the directors of the bank were being investigated in respect of a private complaint! Rulings and “judgments” are given as if they have judicial or quasi-judicial powers. If at all the limit of their quasi-judicial powers is clearly set out in section 89 of the 1999 Constitution which

"THE STEPS BEING TAKEN BY THE HOUSE OF REPRESENTATIVES IS IN MY HUMBLE VIEW PREMATURE AND COUNTER-PRODUCTIVE"

Dr. Adewale Olawoyin SAN PHOTOS: Sunday Adigun

is only exercisable in respect of investigating a matter for the purpose of enabling the National Assembly to either make laws or correct defect(s) in laws and to expose corruption, inefficiency and waste in respect of administration of funds appropriated by the National Assembly. It is certainly not within their remit to be finding persons guilty or directing that certain steps should be or not be taken. Unfortunately that is the mind-set we see from the committees, which inevitably result in incidents such as walking people out of proceedings and generally behaving in a condescending manner. The approach that is commonplace is the accusatorial approach rather that the more tempered but effective investigatory approach which enables the lawmakers learn about the application of the laws made by them and whether there is a need for change. It is rather unfortunate in my view that someone was being ignominiously walked out of hearings. Evidently, this is a wrong way of implementing a perceived constitutional imperative.

Specifically considering the Federal Government’s immediate and unresolved involvement in the negotiations, and that the matter is in fact one of national significance, should the Committee on Telecommunications be attempting to conduct open enquiries and summoning the CEO of a private company to disclose details of ongoing negotiations without first conducting closed-door enquiries with the representatives of the Federal Government who are in negotiation with MTN? You see governance requires a lot of maturity and tact which unfortunately is sometimes lacking in the House of Representatives. As I said earlier, whilst the constitutional right of the National Assembly to take certain steps is not in doubt, a true constitutional democrat knows when to deploy those constitutional powers for the good of the larger polity. The steps being taken by the House of Representatives is in my humble view premature and counter-productive.

The Chief Executive Officer of the NCC Professor Umar Garba Dambatta had previously given evidence before the Committee on Telecommunications that he is not aware of how the reduction in the fine levied by his Commission on MTN came to be. Isn’t this odd especially considering the fine was

levied by the NCC who now seem absent from the negotiations?

This question also raises issues of governance and due process. To be candid, the mantra of due process and rule of law that is freely bandied around is not fully understood by most people. This is what we see unravelling in the MTN saga. Let me try and break it down by making a distinction between executive control of government agencies and the statutory autonomy of government agencies. Most agencies of the Federal Government of Nigeria such as the NCC are also creatures of statute and to that extent, their actions as a matter of governance are primarily dictated by the enabling statute.

However, despite the perceived autonomy in quotation marks, the executive arm of the Federal Government of Nigeria has ownership and directional control, if you like, of these agencies of government. That is why you will typically see in the enabling statutes that the appointment of the Director General and Governing Councils is made by the President with or without the approval of the National Assembly as the case may be. Now to your specific question - I also read some newspaper reports about the Presidency and Ministry of Communications being involved in the discussions with MTN. That is understandable given the high stakes involved and the international ramifications surrounding the issue. There is nothing inherently wrong or illegal if the Presidency decides to play either a leading or supportive role in the negotiations. After all NCC is an agency of the Federal Government. What I find astonishing though, if true, is that fact that the relevant government agency was not involved in the discussions. This is where my initial comment about due process is relevant. As the Regulator who imposed the fines, NCC ought to have

"MY ASSESSMENT OF THE NATIONAL ASSEMBLY’S OVERSIGHT FUNCTIONS IS VERY POOR. I HAVEN’T HEARD OF A NEW LAW OR AN EXISTING LAW REPEALED OR AMENDED AS A RESULT OF FINDINGS FROM OVERSIGHT FUNCTIONS"

been present in the negotiations with clear directives and support from the Presidency. In my view, such an approach would have shown that the Federal Government fully understands and respects the full gamut of rule of law and due process. For example, we understand that a deposit was paid. To whom? To which account? Surely, the only entity that the deposit should be paid to is the NCC and not some other account designated by the Minister of Communications or the Presidency. How NCC remits the deposit to the Federal Government is a different matter entirely. That said there is nothing illegal in the Federal Government taking control of the negotiations. It is just the approach, as we see from a distance without full details that leaves a bit to be desired.

The commission is empowered to resolve disputes between persons who are subject to the Act, regarding any matter under the Act or its subsidiary legislation including disputes between customers and telecommunications companies. To achieve this aim the NCC is allowed to use any Alternative Dispute Resolution Mechanism. Notwithstanding this fact there are hardly any reported cases of the commission directing the use of ADR. How can the NCC encourage telecommunication companies to resolve their disputes through ADR? ADR in my view is still in a fledgling state despite the substantially increased awareness of the attributes and benefits of ADR. It is also a welcome development that the executive arm of Government and the Government agencies are championing the cause of ADR by embedding ADR provisions in the respective enabling statutes. It should also not be surprising that any form of ADR under the auspices of the NCC Act or any other statute is unreported. You have to appreciate that ADR is a private and confidential process unlike litigation in courts which is constitutionally required to be done in public. I suspect that the ADR process is certainly being more utilised that we can readily see. Indeed the negotiations between MTN and the Government could only have been done under the ADR regime in the NCC Act. Telecommunication companies (telecos) often complain about several operational challenges including multiple taxes and excessive right of way charges. Could you

suggest possible ways the NCC can assist telecos surmount these challenges?

This is a difficult question given the structure of tax administration in Nigeria. The constitutional architecture and the taxing powers and/or collecting powers are so diffuse that I think it would be difficult to see how NCC (assuming they even deem it fit to take up that role) can assist telcos in this regard. The fact of the matter is that all Nigerians suffer from the phenomenon of multiple taxes and levies and I don’t see any reason why telcos should be singled out for preferential treatment.

Reviewing the Constitutional roles of the three tiers of government and the National Assembly in particular, how would you assess the National Assembly’s oversight functions as it has been played out since the return to democracy?

This question is a related question to the earlier one about walking out the representative of the MTN Chief executive Officer from the hearing before the House Committee on Telecommunications. My assessment of the National Assembly’s oversight function is very poor. I have not heard of a new law or an existing law repealed or amended as a result of findings from oversight functions. What is commonplace are kangaroo proceedings under the guise of oversight functions. They simply play to the gallery most of the time. Quite frankly, it is quite unfortunate that we do not have any definitive judicial pronouncement on the true scope of the oversight function and the precise way and manner such functions should be conducted. Lets take the MTN issue as an example. Was a resolution to investigate published in the National Assembly’s journal or in the official gazette before the hearings commenced?

More importantly, the MTN issue is not one involving monies appropriated by the National Assembly so that there is no issue about trying to expose waste, corruption and inefficiency.

However, to the extent that an agency of the Federal Government has exercised a discretion to reduce the quantum of a fine stipulated in subsidiary legislation, it would be a perfectly legitimate step for the National Assembly as part of its oversight function to investigate the matter with a view to amending the NCC Act. For example, the National Assembly may in their own wisdom decide to amend the NCC Act to include a provision that in respect of infraction of the NCC Regulations on certain issues such as unregistered SIM cards, The NCC shall not exercise any administrative discretion on the quantum of any fine imposed in accordance with the Regulations. What they cannot do in my humble opinion is to question the decision that the NCC and/or Presidency has already made in this matter or give directives that NCC must insist on the exact fine. Administrative law experts will tell you that there is a concept of administrative discretion in public administration. Essentially this allows public bodies to use professional judgment and expertise in performing their official duties and this includes adopting a strict or liberal adherence to applicable Regulations as opposed to primary legislation for example.

Of course the exercise of discretion in this sense is a double- edged sword in the sense that it may be beneficial or tyrannical. Such discretion will be abused if there is a failure to exercise reasonable judgment. I do not see that the exercise of discretion to reduce the quantum of the fine in the MTN case is unreasonable given the astronomical amount that is still entering the coffers of the Federal Government. But if the National Assembly believe that the reduction was unreasonable they will be justified in invoking the provisions of section 88 of the 1999 Constitution to investigate the matter for the purpose of amending the NCC Act and no more. I repeat the oversight functions of the National Assembly does not give it the right to question what has been done or sit in

judgment as if it were a court of law.

Given the industrious nature of Nigerian business and the Nigerian economy it is astonishing to note that until now there has never existed any Competition law for the express purpose of directing and regulating the open business market towards creating an environment that enjoys the benefits that economic competition brings.

Even now the Competition Bill introduced to the Senate as far back as 2006 is on its ninth introduction in its 2012 version but is no closer to being passed than the first bill. How has the lack of a progressive competition law and policy affected the Nigerian economy?

Interesting question. I have always been of the view that as a people, we must always be careful about adopting laws from developed countries lock, stock and barrel simply because it is a fashionable thing to do. Yes it is true that in most developed countries there are competition and anti-trust laws geared towards preventing monopolistic tendencies in the economic environment. Indeed because of economic integration of European countries, Competition law became massive and a whole body of jurisprudence has evolved over the years. However, is a Federal Act on competition so important in the context of Nigeria’s economic development? To be candid, I think not. What would ultimately happen is that another quango will be created that would add another valueless layer of regulation and increased transaction costs especially in the Mergers & Acquisitions area without any attendant benefit to the stakeholders in the industry. We have enough agencies that can and are empowered to play the role of any competitions commission. Lets take for example a merger between two telcos. The Securities and Exchange Commission (SEC) in approving the merger will consider the antitrust implications of the merger. In granting it approval NCC will also amongst other things consider the anti-trust implication within that industry subsector. If we then have a Federal Competitions Commission as being proposed, the parties will also have to seek the approval of another commission whose primary function is also anti-trust. I have not seen any strong or superior argument for a Competitions law in Nigeria at the present time.

The National Assembly held its maiden Business Environment Roundtable on March 21st and among the pertinent considerations of that Roundtable were the archaic nature of laws that should help Nigeria be more attractive as an investment destination and the 50 bills pending before the National Assembly that pertain to the improvement of business in Nigeria. Why do you think Bills concerning the business environment

in Nigeria meet with so little success at the National Assembly?

The nexus between law and economics is not something that we take seriously in Nigeria. In developed countries the interrelationship between macro-economic policy and the support of laws in achieving those goals is a whole body of jurisprudence. Until the National Assembly realises that laws are enablers of economic development we will continue to have several critical bills pending while focus is being made on oversight functions! I find it outrageous that the Arbitration and Conciliation Bill to amend the Arbitration and Conciliation Act has also been pending since 2006. This was an executive Bill drafted during the tenure of Chief Bayo Ojo SAN as Attorney General of the Federation.

The Corporate Affairs Commission (CAC) is the first experience many foreign investors have with working in the Nigerian business environment and as much as the CAC has been modernised and some notable attempts to improve efficiencies have been made, even lawyers here in Nigeria still find the CAC a complex working place. Proof of this exists in the fact that it still takes an average of 23 days to incorporate a company as opposed to 24 hours in countries like the UK and hours in Singapore. How can we ensure improvements in the CAC that allow us to achieve such efficiencies?

Let me start without mincing words. The Corporate Affairs Commission (CAC) is a national disgrace!!! We all know how Foreign Direct Investment is critical to any country’s economic development. We also have a provision in CAMA that mandates foreigners to set up a Nigerian company if they intend to carry on business in Nigeria. You can immediately see that CAC is at Nigeria’s gateway in the quest for much desired FDI. When foreign investors send initial questionnaires regarding their intentions to invest in Nigeria, one of the first questions is how long does it take to incorporate a company in Nigeria and what is the process? You then tell the foreigner it would take 3 weeks but with an immediate caveat that 3 weeks only after you have submitted the completed documentation.

To get to the point of completed documentation, you tell the foreigner to give you a set of names and it will take 72 hours to confirm availability of name. They are already wondering 3 days for just a name. As a Nigerian lawyer you are just praying to God that CAC does not have network issues or their system is down. How do you explain that to a foreigner who is itching to bring millions of dollars into our economy.

It is even worse in the M&A field, especially during the due diligence stage where time is of the essence and files of the target company cannot be found in the archives. I was involved in a major transaction in January this year where certain documents were filed, certified true copies obtained by the selling party and we could not do any independent verification because the documents had not been deposited into the file.

We then had to explain to foreign counsel that those documents would eventually get there and our independent verification should not stop the closing of the transaction. These kinds of stories are extremely embarrassing for us Nigerian counsel when we engage with counsel from developed countries. You can hear them sigh at the other end of the phone. But with the amount of filing fees that CAC receives, it should not be difficult for all the documents to be scanned and uploaded to some database that can be accessed electronically for a fee that is also paid online. This is what happens in the UK. It would also be beneficial in terms of enterprise risk and disaster recovery. God forbid what happens if there is a fire at CAC? One just shudders to think what would happen to millions of corporate documents.

Maritime law experts have observed in various forums that the Nigerian Carriage of Goods by Sea Act 1926 does not reflect international standards. Could you enlighten us on the aspects of the Act that needs to be reformed?

The Carriage of Goods by Sea Act 1926 does not need reform. It simply needs to be repealed.

Let me explain. The COGSA 1926 was an Act that was passed to incorporate the Hague Rules of 1924 into the corpus of Nigerian law by our then British colonial fathers. Hague Rules is one

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10/COVER

05.04.2016

‘THE NATIONAL ASSEMBLY HAS NO RIGHT TO EXERCISE JUDICIAL FUNCTIONS’ CONTINUED FROM PAGE 9 of the several international Conventions relating to bills of lading. Significantly this law was made applicable to only outward shipments from Nigeria. It therefore meant that the governing law of bills of lading covering goods shipped into Nigeria was determined by the choice of law clause in the bill of lading typically known as the clause paramount. The clause paramount usually incorporated the Hague Rules or Hague/ Visby Rules anyway so it was not a practical problem. In 2005, the National Assembly passed the United Nations Convention on Carriage of Goods by Sea (Ratification and Enforcement) Act which domesticated the Hamburg Rules of 1978 into the corpus of Nigerian law. Generally the provisions of the Hamburg Rules are seen as more cargo owner friendly compared to the Hague Rules. So it was a welcome development that Nigeria not only acceded to the Convention but also the Rules were domesticated into our laws. Unlike COGSA 1926, the 2005 Act applied by force of law to both inward and outward shipments. Unfortunately, COGSA 1926 was not expressly repealed by the 2005 Act and there seems to be a duality of regimes in theory even though as a matter of practice as I said earlier it might not be a significant problem. I know that the Nigerian Maritime Law Association is looking into this matter following an excellent paper by Miss Tsumba of Foundation Chambers (I might add she was my former student in Unilag) at the last General Meeting of the Association where she analysed all the technical issues that have arisen or may arise from the extant state of affairs.

Regarding the issue of admiralty jurisdiction, exclusive jurisdiction is conferred on the Federal High Court by virtue of section 251 (g) of the 1999 Constitution. Considering the fact that the Federal High Court has jurisdiction over a number of other matters, is it expedient for the Federal High Court to continue to exercise exclusive jurisdiction in Admiralty matters?

You know historically the jurisdiction of the Federal High Court was limited only to Federal Government revenue matters and admiralty matters. At some point before I think Decree 107 as it was known at the time, the Supreme Court had held in the case of Savannah Bank Limited v Pan Atlantic Shipping Agency that the Federal High Court and the State High Court had concurrent jurisdiction in admiralty matters. We have long moved away from that position under the 1999 Constitution to the current position of exclusive jurisdiction being conferred on the Federal High Court. I believe that over the years the Judges and support staff in the Federal High Court have been well trained and drilled in admiralty matters that I do not see any reason why that Court should not continue to exercise such exclusive jurisdiction.

I think the status quo should remain.

The Cabotage Act 2003 was enacted to encourage the participation of indigenous ship companies in the shipping industry, increase capacity and provide employment for Nigerian seafarers. However the waivers in the Act for foreign vessel owners almost renders the act ineffective. In your opinion what should be the essential features of an effective local content policy for the maritime sector?

Coastal trading is essentially a protectionist policy to encourage and entrench participation of indigenous shipping companies in maritime business around the coastal areas of a country.

Such policy is not uncommon globally and was first implemented in the United States in the late 19th century in what is commonly know as the Jones Act. There are different variants to this policy. The most common is that all companies engaged in coastal trading must be owned by indigenous persons; all vessels engaged in the same trade must be wholly owned by Nigerians and built in Nigeria and lastly, all the vessels must be manned by Nigerian indigenous seafarers. The Nigerian Cabotage Act adopts this approach. As you can imagine Nigeria is not a ship building nation and the seafarers’ academy in Oron has not churned out enough experienced seafarers of Nigerian origin. This explains why the waiver system has made the Cabotage Act a law observed more in breach than in obeisance. That is the challenge the cabotage regime faces in Nigeria.

Perhaps the law should have started with wholly owned ownership of companies and manning requirement while the element of Nigerian built vessels could have been introduced at a later stage. However, the truth be told, the Act has created a very strong platform for indigenous participation in a lucrative area that was hitherto

the exclusive preserve of foreign companies.

The doctrine of piercing the corporate veil varies from country to country and scholars regard it as one of the more complex concepts in company law. What impact do you think this concept has on monitoring the actions, policies and decisions of corporations in Nigeria?

The doctrine of lifting the veil in corporate law is essentially driven by the need to ensure that one of the foundational principles of company law – that is corporate personality is not used as an instrument of fraud. There is now a rich body of case law from our courts on this principle and I must say from my experience that Nigerian courts are a lot more flexible in lifting the veil of incorporation in comparison to English Courts. I was personally involved in a case where during the course of winding up of a company, the creditor brought an application to impose personal liability on a non-executive director of the company who was not engaged in the day to day running of the business but a signatory to accounts and the court granted the order and it was affirmed by the Court of Appeal. In the current fight against corruption we also see that quite a number of companies are charged with the alleged accused persons. I would imagine that we are going to see a lot of arguments about lifting the veil of incorporation.

The delays in the Civil Justice delivery system are well known. Litigation is expensive and takes many years to conclude; yet not many see Alternative Dispute Resolution as a viable alternative. What can be done to make ADR more attractive and accessible?

As I have said earlier, ADR has come to stay in the Nigerian legal milieu. We have made great strides in ensuring that the right legal framework is in place to entrench ADR especially arbitration. I am using ADR as a generic alternative to litigation and would not get into the debate whether arbitration is a part of ADR or a separate legal order of its own. The recent Arbitration law of Lagos state is a most welcome development. We need to continue to nurture ADR and a crucial point in all of these is training. I believe that an important segment of lawyers that need critical training are in-house counsel of companies. We need to sensitise our colleagues and those of us external counsel that draft agreements on the crucial importance of drafting ADR clauses properly. This may appear simple enough but a simple mistake such as referring to the appointing authority as the President of the Chartered Institute of Arbitrators (Nigeria Branch) instead of Chairman of the Chartered Institute of Arbitrators (Nigeria Branch) proved costly in a recently decided case in the Court of Appeal. In my view, we have a sufficiently robust legal framework and all that is left is training, training and more training and creating more awareness.

Stakeholders in legal education decry its falling standards and often trace this to the curriculum among other challenges.

What teaching methods should be adopted in the Universities and at the law school to reflect global best practices?

"THE FINE HAS NO IMPLICATIONS FOR DOING BUSINESS IN NIGERIA AS ALL THE TELCOS CONTINUE TO POST MASSIVE PROFITS FROM THEIR NIGERIA OPERATIONS" I am aware that Professor Ernest Ojukwu SAN is in the forefront of driving the concept of clinical legal education. I believe he was also directly involved in the change to the teaching methodology in the Nigerian Law School circa 2008 or thereabout. The whole point of clinical legal education is that as lecturers we are encouraged to have a more interactive approach to our teaching rather that the classical methodology where the lecturer speaks the whole time without getting a sense of how the students are assimilating what is being taught. We are also being encouraged to optimise the availability of information technology as a valuable teaching aid and focus more on case study approach which will encourage more discussions in the lecture room. The Nigerian Law School is far ahead of the Universities but we will hopefully catch up in a short space of time. In UNILAG for example all our lecture rooms have projectors and all the necessary paraphernalia for information technology.

There are allegations that the government is not observing the rule of law in the fight against corruption. What is your assessment of the present government's fight against corruption?

The scourge of corruption is like a cancerous growth that has permeated the entire fabric of the Nigerian polity. We seem to focus a lot on corruption in the public sector space but corruption in the private sector space is as damaging to the nation as a whole. There is a limit to which Government can fight corruption in the private sector space, if at all. A simple example is a corrupt accountant of an SME enterprise whose fraud caused the liquidation of the company. The ripple effect is that the 20 staff of the company are rendered jobless which by extension would have a severe impact on the dependants of the 20 staff. Some of them will have health issues that will put additional pressures on the health system. Some kids would become high school drop outs and may turn to armed robbery putting additional pressure on the Police Force. It could just go on and on just because of a corrupt accountant in a small company.

The jury is still out on the Government’s fight against corruption. But one thing is clear, the Government has started the fight, the train has left the station and let us see where the train will stop. Regrettably though, rather than focus on the pernicious and malignant effects of corruption, I hear some people complain that the present Government’s fight against corruption is selective and perhaps political.

I find this most annoying and is one of the reasons why as a country and a people we still have a long walk down the road in our quest for moral cleansing and redemption. If we keep making such puerile suggestions we will never move forward as a nation. The fight against corruption must start somewhere and the pertinent question must always be this – is the alleged corruption case in question one of persecution or prosecution? Put differently, is there a prima facie case against the person being prosecuted irrespective of the political or religious affiliations of the person? What I do know is that corruption is going to fight back and by the first quarter of 2017 which is about a year from now, we should have a better sense of where the fight against corruption is headed.

You were awarded the rank of SAN in 2014. Could you share your perspective of the esteemed rank of SAN, having the unique privilege of being an Academic alongside legal practice?

Being elevated to the rank of Senior Advocate of Nigeria is all by the special Grace of God as there are so many people worthy of the rank who are still looking for God’s favour.

At the International Law Association Annual Conference last year at the Lagos Court of Arbitration, Professor Fidelis Oditah QC, SAN when introducing myself and Professor Fabian Ajogwu SAN as the debaters referred to us as “scholar practitioners” I consider it a rare privilege indeed to have achieved the distinction of Senior Advocate and also teach law. I have been teaching law since 1996 and I believe that my students are the ones that have benefited the most from my position as a scholar practitioner. And why do I say that?

The theory of the law and the practice of law are two different propositions that are conflated into one with a scholar practitioner. With the background, a scholar practitioner brings a different dimension to teaching in the classroom because he or she brings live factual situations to bear on the theory of law that he also teaches.

More importantly, is the mentoring aspect as well. In My short 19 years of teaching, I have seen my former students obtain Ph.D.s, become partners in foremost legal law firms in Nigeria, lecturers in renowned Universities in Nigeria and abroad, distinguished public officers (One of them is a retired Inspector General of Police and one was an INEC Resident Commissioner) and indeed one I am very proud to say is also a Senior Advocate of Nigeria. I hope and pray that I continue to serve as a role model and/or mentor to the younger generation particularly on the need for hard work and patience for God’s blessings.

There is an on-going debate about the engagement of law lecturers in active legal practice. Could you share your views on this debate?

Very thought provoking question. I say that because I see a typical Nigerian superficial knee jerk approach to issues rearing its head here.

Let me tell you what my position is. I have earlier alluded to the advantages of a scholar practitioner. As far as I am concerned our students are better for it. However, please do not get me wrong. I am not for a minute saying or suggesting that lecturers that do not practice are not good or fantastic lecturers. Professor Adedokun Adeyemi, for example, is one of the greatest legal minds this country has ever produced and I have never seen him in his wig and gown arguing a criminal matter. All I am saying is that there is just something slightly different about a scholar practitioner. I will share a personal experience. I did my LLM at the London School of Economics & Political Science (LSE) and one of the courses I took was Carriage of Goods by Sea which was taught

by Professors Audrey Diamond and Martin Dockray. At the University College London (UCL), the same course was taught by Professor Francis Reynolds and Mr Bernard Eder QC (Now Hon. Justice Eder of the High Court of Justice in England). Out of curiosity I attended the UCL lecture on a day Bernard Eder QC was teaching and I was enthralled because he was given factual instances of cases he was involved in when explaining the various principles. This was so different from the way the distinguished professors taught the same subject. Suffice it to say that I attended Bernard Eder QC’s entire lecture till the end of the semester. If there are perceived issues with the proper allocation of time between lecturing and practice, I think these issues can be discussed to get the right balance between the town and gown mix. The narrative should not be one of banning but of getting the balance right.

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T H I S D AY TUESDAY APRIL 5, 2016

RIVERS SOUTH EAST ELECTORATE DEFENDERS OPEN LETTER TO CHAIRMAN OF INDEPENDENT NATIONAL ELECTORAL COMMISSION.ABUJA

RIVERS RE-RUN : ALLEGED PLOT BY INEC OFFICIALS, AMINA ZAKARI AND MR. EMMANUEL EBORTI, ELOCTORAL OFFICER FOR TAI L.G.A TO ANNOUNCE RESULTS IN TAI L.G.A WHERE ELECTION WAS SUSPENDED IN RIVERS STATE. CONCERNING VIOLENCE AND IT IS NO LONGER SAFE TO HOLD THE ELECTIONS IN TAI L.G.A BECAUSE I CAN NOT RISK THE LIVES OF MY STAFF. AND SO WE HAVE NO OPTION THAT TO RECOMMEND THE CANCELLATION OF THE ELECTIONS.'' Sequel to this position, the ElecThis group is aware that on the 19th of March, 2016, a re-run toral Officer right before the Press, put a phone call to the State election was scheduled by INEC to hold in Rivers State which Resident Electoral Commissioner, Mr. Aniedi Ikoiwak who in a Press statement dated March 20,2016, announced thus: include the national and state legislative seats.

The Rivers South East Electorate Defenders is a group whose objective is to promote, protect and defend the rights of in the pursuit of credible, free and fair elections in the Rivers South East Senatorial District in Rivers state.

That on the said March 19, 2016, about10:45am, voting materials for TAI L.G.A was sorted out and loaded into vehicles from the RAC centre to be distributed to the various ten(10) wards and the various Units that make up the Local government Area. That as soon as they set to commence distribution, some Hillux Vans fully loaded with water-tight Armed Soldiers arrived in commando style and forcefully ordered the drivers carrying the Electoral Materials and INEC adhoc staff to drive after them.

FURTHER TO OUR EARIER PRONOUNCEMENT ON THE SUSPENSION OF THE RE-RUN ELECTIONS IN THE 6(SIX) LOCAL GOVERNMENT AREAS OF KHANA, BONNY, GOKANA, ANDONI, TAI AND ELEME L.G.Asfollowing disturbances and violence that impeded the electoral process in those parts of the state, IT HAS ALSO BECOME NECESSARY TO SUSPEND THE ELECTIONS IN ETCHE AND ASARITORU LOCAL GOVERNMENT AREAS, FOR THE SAME REASONS''.

Contrary to expectation that the soldiers had come to escort It is important to state that there were no elections in Tai neiElectoral Materials to the various Wards and Units of Tai, the ther was any result collated. materials were allegedly taken to the home of one Barry Mpigi.

Our prayer is that INEC should stand by its earlier announceReports have it that on their way, the soldiers were besieged ment which still subsists and conduct a new and fresh re-run by protesting eligible voters in Ward 2 and six other wards in Tai in the interest of justice and fairness. INEC must not be which led to sporadic shootings by the soldiers resulting in the seen to be partisan but impartial before the voting public as alleged death of one. Lady. Baby Nzughah and Mr. Tambari any such move to alter the status quo, will not be acceptable as Ntooto while many others sustained various degree of injury. it will prove INEC to be an interested party in the Rivers Rerrun, particularly in Tai Local Government Area of Rivers State Following the reports of the ugly incidents which impeded the holding of election in the L.G.A, the Electoral Officer, Mr. Em- Thanks manuel was reached to intervene. at about 12;45pm, he ad- Yours faithfully, dressed the Press including Rivers state Television and AIT For. Rivers South East Electorate Defenders.

News and it was on the news with the video clips available to JAJA COOKEY us wherein he, the Electoral Officer for Tai L.G.A declared thus Opobo/Nkoro LGA "'I HAVE GOT REPORTS FROM MY PEOPLE IN THE FIELD ETEH JUSTIN

Andoni_LGA

EKEKE CHUKUMA NBETE SASA OBARIJIMA OSARO CHU..

LOIUS KIIDAM GODWILL B.KABARI

Oyigbo TAI LGA ELEME LGA KHANA LGA GOKANA LGA

DISTRIBUTION FOR ACTIONS .

1 2.

3.

4.

5.

6.

7.

8.

9.

10.

President Mohammadu Buhari,President of Nigeria .

Inspector General of police.Abuja Director General state services.Abuja All Acredited Observers for the Rivers Re_Rerun March 19,2016 elections.

The President of the Senate Federal Republic of Nigeria.

The Speaker federal house of representatives.Abuja.

The American Embassy Abuja The British Ambassy Abuja.

Amnesty International.

President of Nigeria Bar Association.

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05.04.2016

IN BLACK AND WHITE ADERINSOLA FAGBURE

afagbure@yahoo.com

Family Businesses and Corporate Governance

T

here is no universally accepted definition for the term “family business”.

Some authors define a family business as any company in which majority ownership and consequently control is carried out by a single family and in which two or more blood relations are or at some time were directly involved in the business. Another thinking ascribes this term to companies where family members own at least 50 percent of the business.

Nevertheless, family businesses are key players in the global economy, but are often underestimated. Many fail to identify with the fact that the largest organisations in the world including Ford, Toyota, Unilever, Dangote etc, started out as family concerns.

Over the years, these entities have come to realise the importance of efficient board structures, effective regulation cum policy implementation as well as succession planning. The corporate world is beginning to see more family companies interested in corporate governance today, than was the case a decade ago.

The writer’s decision to focus on family businesses is premised on the fact that these types of corporations differ from non-family businesses because they are led or owned by family members whose aim is to continue the activities of their companies across several generations. According to statistics presented by Anderson and Reeb in 2003, family firms represent one third of all companies included in the Standard & Poor 500 index. The figures may have reduced as a result of difficult global financial conditions which have called for ingenuity in terms of corporate financing. Having said this, some societies, particularly in Asia, Latin America and Africa, are collectivist in nature and family businesses represent a prevalent form of entrepreneurship. Research shows that there is some degree of uncertainty as to whether “family effect”, the result of family involvement has a positive or negative impact on the way a business is run.In spite of this confusion, family businesses are expected to outperform non-family businesses, but in reality, their performance decreases across generations.

Corporate governance concerns the relationships among the management, Board of Directors, controlling shareholders, minority shareholders and other stakeholders. Accountability in this regard helps companies operate more efficiently, improves access to capital, mitigates risk and safeguards against mismanagement. Adherence to International Best Practice standards is even more important as regards family businesses because of the conflicts arising from the seeming informal relationship existing between blood relations. It is a given that family members take each other for granted in business dealings. Investors often look with distrust on family-owned companies, because of the risk that the controlling family may abuse the rights of other shareholders and would therefore scrutinise such companies carefully before putting in their money.

Typically, family businesses in the first generation and sometimes in the second generation are managed by the founders and other relations. These businesses often face the challenge of attracting core professionals to assume management positions.

Retaining highflying professionals in such an environment is even more challenging.

It is for this reason that the relationship between family-managers and non-family professionals must be carefully structured such that a reasonable balance is maintained.

For such firms to outlive generations, priority must be paid to quality in the appointment of directors, as well as board succession planning because an effective management team is needed. Where family members are appointed as directors, efforts should be made to ensure that square pegs are not put in round holes.

For example, the investment company, ROI Group, which now spans four generations of the Owens, encourages family members to work outside the business first to gain relevant experience before seeking management positions within the organisation.

The promoters need to understand that the business model must be sustained and institutionalised. Financial accountability should be taken seriously such that laid down accounting principles and guidelines are adhered to. The shareholding structure must also be clearly defined and records of ownership and directorship should be up to date at the Companies Registry. Family governance structures and institutions require a certain degree of formalisation if they are to function well. For efficiency, the Holding Company approach may be adopted. For example, the Odutolas’ have used this method to keep a chain of businesses, such that the subsidiaries then have more non-family executives and non-controlling shareholders. The Ibru family also has a holding Company, Ibru Organisation, established as far back

as 1956. The conglomerate has expanded over the years and has subsidiaries with interests in hotel management, aviation, banking, publishing and logistics. The Dangote Group, the largest conglomerate in West Africa also has subsidiary companies, which serves to whittle down family influences on management. For concerns that have remained at the level of SMEs, the Ladipo family of Lisabi Mills fame has done very well with 100% control.

As far as Nigerian professional practices go, the Rotimi Williams’ Chambers has endured for quite a while.

Family firms evolve over time and initial attempts at written policies come in the form of sketchy documents stating a general family vision and mission. Subsequently, the need to develop a family employment policy may arise. This becomes more apparent when the company reaches the sibling partnership stage. The policy should set clear rules on terms and conditions of family employment within the firm, including conditions of entry, retention and exit from the business as well as the treatment of family member employees vis-a-vis non-family ones. Corporate governance codes, board policy manuals, a well- drafted memorandum and articles of association and professional minutes are needed as the business expands.

It is true that introducing governance measures will not resolve every investor concern about family-controlled firms. A balance must be struck between maintaining peace within the company and a drive for profit. Efforts should be made to ensure full disclosure to reduce instances

of mistrust within the establishment. The problem of conflicts among the siblings who run the business is sometimes known to spill over to the company’s domain thereby creating problems for non-family stakeholders. It is therefore necessary to carefully manage dealings between relations who work for the family business and those who are only owners and rely on dividend income from the success of the company: These two groups often have diverging interests and varying degrees of access to company information, hence the need for total disclosure. The importance of seamless communication cannot be over-emphasised in this unique form of business.

I would like to round up this article by paying kudos to all the family-owned firms that have outlived generations.

It would be interesting to understudy their governance models with a view to finding out their success strategies. I would conclude by referring to Ede and Ravenscroft, the robing outfit which has over 300 years' experience of specialist legal wear tailoring. The outfit was started by a respected tailoring family, the Shudalls and has survived several wars, economic downturns and also had the honour of creating the robes for twelve coronation ceremonies. Up till today, the firm continues to service royalty, the judiciary, civic authorities, academia and business.

My colleagues may be familiar with this robing outfit and would agree with me that some thought should be paid to taking corporate governance lessons from successful managers such as these.

05.04.2016

THE LIGHTER SIDE/13

LEGAL HUMOUR

We Hold Your Brief JUDE IGBANOI jude.igbanoi@thisdaylive.com

Dear Counsel, I would appreciate it if you could provide adequate information on what the official government position is on education. For the past three years, I have tried to understand the various educational policies of governments at all levels.

I have been finding it increasingly difficult to cope with keeping my children in various public schools. I am inundated with all sorts of payments and fees which keep escalating every year. The most recent one which necessitated my writing this letter, resulted in my son being prevented from taking his end of semester exams at the Federal University of Technology.

When I discussed this problem with members of my cooperative where I had gone to borrow money, some of them told me about their own situation. Those who have children in state owned tertiary institutions told me they pay fees much higher than the amount I was complaining about. In my case I do not know how my son will finish his programme as I am a widow and I have very little income. I also have two other children in the secondary school which is another financial burden. I do not have the means to put my children in private schools as paying fees is difficult for struggling people like me.

Someone suggested that we challenge the government through a class action, but we are also cautious of our children. We do not want them to be victimised in any way. What do you think we can do?

Mrs. Olaleye Lokoja, Kogi State Dear Mrs. Olaleye, Your message is reflective of a more general societal issue and it is a burden which almost everyone in the

society is faced with. The issue of rising fees in our educational institutions is one that has defied all solutions.

The emergence of private schools at all levels attests to this fact and has further compounded the problem.

However Chapter II of the Constitution of the Federal Republic of Nigeria 1999 enunciates the Fundamental Objectives and Directive Principles of State Policy. Section 18 especially provides at that ‘(1) Government shall direct its policy towards ensuring that there are equal and adequate educational opportunities at all levels. (2) Government shall promote science and technology. (3) Government shall strive to eradicate illiteracy; and to this end Government shall as and when practicable provide (a) free, compulsory and universal primary education; (b) free secondary education; (c) free university education; and (d) free adult literacy programme.’

Unfortunately, these provisions are not justiciable. It means you cannot sue the government on the basis of these provisions. So, the provisions are often observed in breach. Although there have been heightened advocacy by some civil society organisations pressing for a review in the Constitution that would make it possible for citizens to sue the government. It is still a far cry from reality. This is in spite of the fact that Section 22 provides that ‘The press, radio, television and other agencies of the mass media shall at all times be free to uphold the fundamental objectives contained in this Chapter and uphold the responsibility and accountability of the Government to the people.’

This is the irony of the Nigerian situation. Therefore, your best option lies not in a class action, but in assessing various scholarship granting bodies to see your child through school.

Lie Detector It had been a long day in traffic court, and the judge was listening to the final case on the docket.

The police officer stated that he had observed the defendant travelling significantly above the posted speed limit. In response, the defendant went on and on about the road conditions, the amount of traffic and his innocence.

Then, certain he had won his case, he melodramatically proclaimed, "Why, your Honor, I'll even take a lie detector test."

"Son," the judge wearily replied, "I am the lie detector."

The Young Graduate "Got my first job," announced the young college grad. "I'm helping out a lawyer."

"Great. What does he pay you?"

"A thousand a week."

"Isn't that an awful lot for a beginner?"

"Not exactly. I only get a hundred in cash and the rest in legal advice."

UNN Law Students at the United Nations The University of Nigeria Nsukka represented Nigeria as Country Delegate at the National Model United Nations Conference which was held at the United Nations headquarters and Sheraton Hotels Manhattan New York from 20th to 26th, March 2016. This event saw over two thousand youths from all over the world converging in New York to present a unified voice and take a stance for global peace and prosperity. The delegate seminar topics included Media: ‘A Key International Stakeholder’, ‘The Humanitarian Effect of Conflict: Refugees, Mobility, and Migration’, ‘Is Extremism Defining the International Agenda?’, ‘An Insider’s Guide to the UN’, ‘Climate Change and the SDGs, Social Entrepreneurship: Innovation for Society’.

Students of the faculty of law UNN made Nigeria proud at this global conference as they made sterling contributions to deliberations geared towards the betterment of mankind and received commendations in that regard.

The Secretary-General of the UN Ban Ki-Moon, in his message at the conference observed that the event is occurring at a time of “challenge and opportunity for the human family”. He stated specifically that “The United Nations marked its 70th anniversary in 2015 by taking landmark steps to advance sustainable development and combat climate change. In December, governments came together to sign the Paris Agreement on Climate Change.

Three months earlier, all 193 Member States of the United Nations agreed on the 2030 Agenda for Sustainable Development to end poverty and build a life of dignity for all on a healthy planet. The 17 Sustainable Development Goals are transformative and universal, and they will demand action from all partners, including young people. I am also pleased that the Security Council recently passed a landmark

L-R: Mr. Chiemerie Nnamani, Mr. Otegbulu Michael and Mr.Nwokolo Geoffrey Netochukwu

resolution on Youth, Peace and Security. That means young peacebuilders have the full support of the United Nations.

Young people have the greatest stake in the future so you must have a voice in building it. These agreements open

up promising new horizons for our common progress.” He added that “By taking part in this Model United Nations, you are demonstrating your commitment to peace, justice, human rights and human dignity.”

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TUESDAY APRIL 5, 2016 T H I S D AY

05.04.2016

/15

PEARLS OF LAW SANDRA OKE

sandra.oke@norfolk-partners.com

Art and Intellectual Property Law

L

ily James, a budding landscape artist, enjoys depicting breath-taking landscapes in a variety of locations. She is known for combining landscape art with digital photograph which makes her work very unique. Her latest project involves her painting Kairaku-en in Mito, one of Japan’s well-known gardens. To do this effectively, she uses a post-card by a well-known Japanese Artist. The painting begins to make waves in international art circles. Suddenly, she is contacted by the lawyers of the Japanese artist who designed the original post card for copyright infringement. On the other-hand John Lawrence is world famous for his realistic portraits, his paintings include the famous and the ordinary people in society. Although, he is exhibited in some galleries in Lagos. He has not really been able to break into the Art market. While he was watching TV the other day, he stumbled across a reality series in which one of his painting was briefly shown for fifteen minutes. He is upset because the producers of the programme did not seek his permission before showing his painting. Immediately, he contacted his lawyers and instituted an action against the producers for infringing his copyright. Several intellectual property law issues arise when using a third party’s art work these will be discussed below.

What is Art? Art has been described as an expression or application of human skill and imagination in a visual form. Over centuries art has been appreciated for being a form of documentation of history and culture.

Emperors and kings travelled vast distances to obtain priceless pieces of treasured art work. On the downside some groups have taken pride in destroying and stealing art from various countries.

Unlike other artists who jealously guard their intellectual property rights, visual artists do not seem to pay any attention to theirs.

Only last year popular musician Paul Play Dairo sued a major Telecommunications company for using his song in a popular television singing competition for two consecutive years without paying him. Also a Nigerian Actor Rotimi Popoola threatened to sue another telecommunications company for using images from his work for an outdoor advertisement and a SIM pack. What visual artists do not realise is that they create IP assets during the creative process. Some designs can even be protected as patents.

The benefits of protecting Intellectual property rights include i) it allows the artist exercise exclusive ownership of the artistic work ii) the artist gains great economic benefits from exploiting intellectual property rights through sale and licensing agreements iii) the artist might also enjoy resale rights Legal Protection for Artistic Works From the scenarios narrated above it is clear that visual artists need to protect their intellectual property rights under the Copyright Act, Sec 1 of the Copyrights Act protects Artistic Works. Sec 2 goes on further to state that for an artistic work to be granted protection under the Act sufficient effort must have been expended on making the work to give it an original character and the work has to be fixed in any definite medium of expression now known or later to be developed, from which it can be perceived, reproduced or otherwise communicated either directly or with the aid of any machine or device. Section 5 of the Act grants the copyright owner the exclusive right to do or authorise the doing of any of the following acts, that is(i) reproduce the work in any material

form, (ii) publish the work. (iii) include the work in any cinematograph film, (iv) make an adaptation of the work, Approaches to dealing with Intellectual Property Law Issues Regarding, Lily James’ copy of the Japanese post card. It is important to decide whether her actions fall under the category of fair use.

Fair use has been described as the copying of copyrighted material for a limited or transformative purpose including to comment on, criticise or parody. Commenting on an artist’s work for educational purposes or for the benefit of the public is generally allowed under copyright law. A parody on the other-hand involves imitating a well-known work in a comic way. Clearly Lily James’ actions do not fall under the category of fair use.

We must then consider under what

circumstances one artist may copy the work of another artist. The most important question is whether the Japanese post card is protected by copyright law? If it is then Lily James is guilty of copyright infringement. However, works over 70 years old are not copyrighted and are in the public domain. Going forward when using another person’s artistic work as a reference it is necessary to obtain their consent and acknowledge them.

Regarding the second scenario involving the use of a painting in a movie, generally if the artwork is shown very briefly, used for news or criticism, or very old it might not be necessary to obtain permission for using it. To elucidate, if the artwork is shown for six seconds this constitutes insubstantial use, for example in the 1995 movie Seven ten copyrighted photographs were shown without the owner’s permission. They were described as appearing out of focus and displayed only for a short time. The court dismissed the photographer’s copyright

infringement claim, the court held that the use of the photographs was too minor to merit an action. In the court’s ruling it was stated that “Because the photographs appear fleetingly and are obscured, severely out of focus, and virtually unidentifiable, we find the use of those photographs to be de minimis.” However if the artwork is focused on during the movie or it forms an essential part of the story then the artist will have to be paid for its use even if the painting was bought, the owner’s permission will be required to use it in a movie.

Conclusion Visual artists need to develop a viable strategy to protect their Intellectual property rights. First of all they should determine what form of protection is available for their works and apply for the appropriate protection under the Act. It goes without saying that the services of a lawyer will be required for this very important process.

16/IMAGES

05.04.2016

The Ministerial Committee on the Roadmap for the Development of the Solid Minerals Sector on Thursday March 31st 2016 formally presented the Roadmap to the Minister of Solid Minerals Dr. Kayode Fayemi. Here are members of the Committee at the presentation. photos: Julius Atoi

L≠ R: Chairman of the Committee, Professor Ibrahim Garba, Minister of Solid Minerals, Dr. Kayode Fayemi and Co≠ Chairman, Professor Siyan Malomo

L≠ R: Mr. M.F Istifanus, Mrs. May Agbamuche≠ Mbu, Minister of Solid Minerals, Dr. Kayode Fayemi, Professor Ibrahim Garba and Engr. Mohammed K. Amate

Professor Ayo Teriba (left) and Mr. Dauda Awojobi

Professor Okey Onyejekwe (left) and Mr. Alex Nwegbu

Professor Olugbenga Okunlola (left) and Engr. Mohammed K. Amate

Mrs. May Agbamuche≠ Mbu and Mr. Utsu Linus Adie

Mrs. Olayinka Mubarak

Mr. Habeeb Jaiyeola (left) and Mr. Cyril Azobu

Mr. Gbenga Ojo and Ms Nere Emiko

Mr. Adekunle Adeyemo

Alhaji Sani Shehu (left) and Mr. Abdullahi Also

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TUESDAY APRIL 5, 2016 T H I S D AY

T H I S D AY TUESDAY APRIL 5, 2016

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T H I S D AY • TUESDAY, APRIL 5, 2016

ONTHEWATCH

Osun LCDAs and Matters Arising The creation of additional council administrative areas in Osun State is well thought out, writes Abiodun Komolafe

I

t’s no longer news that some 31 Local Council Development Areas (LCDAs), 3 Area Councils and two Administrative Offices were recently created in Osun State by the Rauf Aregbesola-led administration. As Commissioner for Works and Infrastructure in the Bola Tinubu-led administration, when Lagos State had its LCDA experience, one can safely state that Aregbesola had garnered experience sufficient enough to help him drive the newly-created lower-tier administrative units in Osun State.

At a period of global financial failure like this, fears on the part of the people cannot be said to be misplaced. It is therefore comforting to know that the governor has assured Osunians that the new councils were created primarily to bring “development to the people”, manage “the markets”, and generate “more revenues, amongst others.”

Good also that he has allayed the fears of human and material resources with which to power the third tier of the administrative structure, taking into consideration the socio-economic and geo-political realities on ground in the country. With these additional administrative council areas in place, one expects that local government administration will be brought nearer to the people.

Again, while not conceding its comparative edge in administrative purposes over the building of a pattern of dominance, it will also go a long way in removing some of the inconsistencies and confusions associated with local government administration. And, since the system is participatory in nature, opportunities for broadening the potential for societal capacity building, accountability, transparency and openness cannot be overlooked.

Above all, the glorious roles of our traditional rulers as the embodiment and custodians of their community’s customs and traditions, which successive constitutions have tragically failed to appropriately clarify, will by this laudable step become enhanced.

However, beyond the politics and emotions usually associated with great ideas like this, the question before careful political observers is: has the governor breached any law of the land by creating these lower administrative centres?

In my unlearned estimation, the ‘inchoate’ judicial pronouncement of the Supreme Court in the case of Attorney General of Lagos State v Attorney General of the Federation (2004) 20 NSCQLR 90 on the operation of Local Council Development Areas (LCDAs) in Lagos State and, by extension, Nigeria has settled that!

This is even as Nigerians are of the view that the refusal by the National Assembly to do the needful as required by law tends more towards the political than the altruistic.

I have commented in one of my previous interventions that being a governor and a paymaster is a matter of choice. Without doubt, each has its rewards.

But it depends on how one wishes to live and be remembered! Harvey Firestone put it beautifully when he wrote: “The growth and development of people is the highest calling of leadership.”

Needless to repeat that Aregbesola has opted for the noble path of serving his people with all of his might and has so far discharged his responsibilities creditably.

Essentially, while the benefits derivable from the governor’s action should not be lost on Nigerians, kudos must be given to the government that has, in spite of all odds, been struggling to meet the demands of its people, especially at a time when what comes into the state’s

Aregbesola...trudging on

coffers from the Federation Account is not even enough to pay for 20% of the state’s workforce.

Progressive-centric propensity notwithstanding, sentiments and emotions are essential ingredients of politics. So, how

Essentially, while the benefits derivable from the governor’s action should not be lost on Nigerians, kudos must be given to the government that has, in spite of all odds, been struggling to meet the demands of its people, especially at a time when what comes into the state’s coffers from the Federation Account is not even enough to pay for 20% of the state’s workforce

long is an ‘inchoate’ journey of Local Government creation and who do we blame for the fate of Lagos State? Why are we our own enemies and where are those powers that are using the good things of life to deny the South its pride of place in Nigeria?

Even, if our fathers have eaten sour grapes, for how long shall the faults and evil propensities of the parents, not only transferred to the children, but also punished in them? Where are the popular superstitionists and perennial deal-fixers that are using the good things of life to curse us in the South?

In like manner, where are the professional pacifists, who see and take Osun State as a gorgeous hall and concert room where sorrows are carelessly danced away? As a matter of fact, who would ever have thought that the road linking Ijebu-Jesa with Ijeda-Ijesa which had become impassable to motorists since the early 1980s would take more than two decades to fix?

Olusegun Obasanjo spent eight years as Nigeria’s president but ended up as the worst enemy of the South. Goodluck Jonathan, another victim of good luck, spent six years without caring a hoot about righting the wrongs of his lord and master.

Ernest Shonekan who, from all indications, was only anointed for snail and tortoise assault on our psyche did not even stay long in office to fulfill his pseudo-democracy destiny.

Come to think of it, close to threescore years after independence, Nigeria remains a strange nomenclature mendaciously concocted by her colonial manipulators.

Like a barber’s chair, motioning perpetually without any monumental movement,

dear country is fast becoming a disintegrating enclave, a culture of discordant policies and a hutment of prosperity in a quicksand of adversity; nothing but a game of dubious smartness, or smart dubiousness.

Little wonder every shed and hamlet in the North is shredded as Local Government Areas while towns, even cities in the South are falsely lumped together as one Local Government. For instance, I observed during my national youth assignment in 1997 that what constituted Talata Mafara and Bakura Local Government Areas in Zamfara State hardly extended beyond Talata Mafara and Bakura townships and I doubt if the situation has changed.

A country without values has no future. What more? Democracy allows for openness and inclusiveness. In other words, while it may be difficult to have a proper grasp of the nature, structure and texture of political patterns and trends without understanding her colonial legacies, it is only when the vestiges of inherited colonial structures and legacies are exorcised that an independent Nigeria can become truly redirected along the principles of justice, efficiency, equal opportunity and freedom in socio-political relationships.

Stated in clear terms therefore, if creation of LCDAs is at a time like this in the history of Nigeria capable of meeting the governance and development needs of the people, what stops Aregbesola from acting in the interest of his people? May powers, assigned to waste the efforts of our founding fathers in Osun State, backfire!

-Komolafe wrote in from Ijebu-Jesa, Osun State

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T H I S D AY • TUESDAY, APRIL 5, 2016

PERSPECTIVE

Justice Abang, Metuh and Matters Arising Despite the fact that the PDP spokesperson, Chief Olisa Metuh is facing corruption charges, Idris Mustapha Ahmed argues that the process of his trial should be credible

T

he trial of the National Publicity Secretary of the Peoples Democratic Party (PDP) Chief Olisa Metuh on charges of receiving the sum of N400 million from the previous government for campaign activities of the PDP is fast assuming an interesting dimension with the trial Judge, Justice Okon Abang now on ‘trial’ over allegations of bias, infractions of rules of the court and integrity issues.

Metuh had pleaded not guilty to the charges brought against him by the EFCC that the N400 million was proceed from “the illegal activities” of the former National Security Adviser, Col. Sambo Dasuki (rtd), though Dasuki himself has not been convicted by any court for any illegal activity.

Issues took a dramatic twist when Chief Metuh, in the course of the case petitioned the Chief Judge of the Federal High Court, Justice Auta, who requested that his case be transferred to any other over 70 judges of the Federal High, on the ground that Justice Abang was exhibiting manifest bias and violating the rules of court process against him.

Currently, the embattled judge is trying to wriggle out of the web, resulting in open altercations with the defendants and their counsel as well as joining issues and putting up defence in the media, a situation which has now spurred concerns in the legal circles and calls to question his ability to deliver justice in the matter.

Already there are calls from judicial watchers that Justice Abang should toe the path of honour and excuse himself having allowed this high profile corruption case to become an issue of media controversy, with him the judge unfortunately in the middle of the storm.

The big questions now are: has Justice Abang shown any bias against Chief Metuh? Has he committed any infractions or his integrity found wanting in the course of the trial? Will his ruling in the case, one way or the other, still be fair, objective and without sentiments now he has engaged in altercations and joined issues in the media with the defendants?

The bad blood between the judge and the defendants was externalised from the court, when Justice Abang on March 18th 2016 announced in the open court that the defendant had written to the Chief Judge requesting that the case be transferred to another judge. Justice Okon averred that the defendants raised only three issues; that he was classmates with Chief Metuh; that his rulings were against the defendants and that he overruled the defendants No-Case Submission.

The Judge denied he was Metuh’s classmates and insisted that he would continue with the case until otherwise directed by the Chief Judge. Expectedly, the media went agog with Metuh’s transfer letter, with a few of them interestingly stumbling upon documents showing the Judge was Metuh’s classmate and that Metuh actually raised 16 issues bordering bias and infraction of rules in his request for transfer.

On the next adjourned date, March 24th, 2016, the Judge announced in the open court that Metuh had filed a motion seeking him to disqualify himself. He thereupon announced that he had also responded to enquiry by the CJ regarding Metuh’s request for case transfer and that the documents, all pending before the CJ have become “public documents” He went ahead to engage in altercations with counsel to Metuh, Emeka Etiaba, SAN, on issues of procedures and insisted that he would sit in judgment over the motion for disqualification motion and to continue with the trial on the adjourned date of

Metuh appears in court in handcuffs

April 8, 2016.

The next day, the media was again agog with Justice Abang’s response to the CJ prompting concerns regarding the externalisation of the processes of the court, prompting a national daily to post an

Pundits tend to believe that despite the fact that Metuh is facing corruption charges, the process of his trial should be credible and devoid of issues of infraction and biases.

It is held strongly that the accusation against Justice Abang are too weighty to be ignored, and the fact that he has already engaged the defendants in open altercation also raises questions regarding his ability to deliver justice to the same accused he now quarrels with

editorial on the case. Apparently worried about the development, the Office of the National Publicity Secretary of PDP filed a rejoinder to the reports, arguing they wanted to put the records straight.

The office stated that the issue of Chief Metuh and the Judge being classmates in the Law School and their past encounters was not the exclusive reasons his lawyers requested for transfer of his case, but that the letter raised 16 points, topmost being the Judge’s refusal to release the record of proceedings of the court to Chief Metuh timeously, thereby denying Metuh his constitutionally guaranteed right to appeal interlocutory decisions taken by the court.

They pointed out that Metuh applied for the records on the 8th of February 2016 but that the Judge refused to release the document until March 15th 2016, by which time his rights to appeal (within 2 weeks) had been denied him. Their argument is that this is a serious infraction, which betrays the determination to frustrate Metuh’s defence and possible appeal.

Another salient point raised by Metuh is that Justice Abang, in ruling on his No-Case Submission on March 9, 2016, surprisingly descended into the arena and imported other issues that were not in the original charges brought against the defendant by the EFCC. Metuh complained that Justice Abang, even after warning himself of the need not to go into the substance of the case, went on in the open Court to state with respect to Counts 5 and 6 (which deal with transaction with regard to the sum of USD2m (Two Million Dollars) with a non-financial institution), that though the origin or source of the money was not

part of the Charge, the Defendants must prove same as that forms the basis of money laundering offence.

The Defence posited strongly that by this, the trial Judge had taken sides and got himself assisting the prosecution to explore new opportunity. They complained that such infractions had occurred severally in the course of the trial prompting the amendment of charges by the prosecution, a development they argued called to question the detachment of the judge?

Another important point raised by the defence counsel in the letter of transfer is that Justice Abang on several occasions stated in the open court that he had no discretion to exercise one way or the other where the prosecutor opposed the defendant’s applications. Metuh is contending that it is wrong for a trial judge in a criminal case to tie his discretion to the Prosecution’s disposition as such cannot guarantee justice.

Pundits tend to believe that despite the fact that Metuh is facing corruption charges, the process of his trial should be credible and devoid of issues of infraction and biases. It is held strongly that the accusation against Justice Abang are too weighty to be ignored, and the fact that he has already engaged the defendants in open altercation also raises questions regarding his ability to deliver justice to the same accused he now quarrels with.

Perhaps, Justice Abang should simply take a bow, like other judges who have been accused in a similar manner, unless he is on a forced dance to the drumming of powerful but unseen hands.

- Ahmed, a legal analyst, wrote from Katsina

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TUESDAY, APRIL 5, 2016 • T H I S D AY

FEATURES

Acting Features Editor Charles Ajunwa Email charles.ajunwa@thisdaylive.com

Transforming Lives through Reading Peace Obi writes that prison inmates are being transformed through reading books donated by the Zaccheus Onumba Dibiaezue Memorial Library to prisons in Lagos

Ogundele (L), Esirim (R) and officers of Nigerian Prisons Service, during the commissioning of the library at Kirikiri Maximum Security Prison in Lagos‌recently

T

he mention of prison to anyone will always pop up such notions like being a place of incarceration, a place where valuable time is lost by inmates, and where if it ever exists, the scope of inmates' dreams and visions are either narrowed and loss of focus easily is possibly experienced. However, with the recent inauguration of three libraries in one single event by Zaccheus Onumba Dibiaezue Memorial Libraries, a non-governmental organization, the true meaning of prison being a reformation centre was reiterated.

The testimonies of some prison inmates who use the library facility at Ikoyi Prisons, where the NGO had in 2013 commissioned a similar project for the use of the prison inmates as well as the staffers say it all.

And more fascinating, was the reactions from some of the inmates during the inauguration of the three libraries for the Lagos Prisons - Kirikiri Maximum Security Prison, Medium Security and Badagry Prisons.

Their response to the NGO's gesture to improve their intellectual capacity, gives one a picture of some prisoners who, though in incarceration, have a clear understanding of their vision in life. And for those ones, neither is their present circumstance enough to make them derail in their pursuit nor their place of abode or status big enough to becloud their mind towards achieving same.

In their reactions, one finds some common feature like tenacity, resilience of prisoners who will unconsciously read their minds out the bondage of thought, expanding their horizon, thus working out the freedom for their soul and mind while in incarceration.

To them, though opportunity presents itself in different ways - their being in prison is simply an opportunity. And that the

We opened our first prison library at Ikoyi Correctional Centre in March 2013 and we are greatly encouraged by the impact it immediately had on its inmates. We went on to establish the three libraries we are inaugurating today and our hope is that they will provide access to positive and constructive activities and support the inmates through their rehabilitation and on the road to a better future

provision and equipment of a library by ZODML at the Kirikiri Maximum Security Prison, presents to them an opportunity that must be grabbed with both hands.

In a speech delivered by the Chief Executive Officer, ZODML, Mrs. Ifeoma Esirim, during the recent inauguration of the libraries at the Kirikiri Maximum Prison, Lagos, she stressed the irreplaceable role of education in the lives of prison inmates. Esirim who noted that statistics have shown that for former prison inmates to be fully reintegrated into society, educational intervention plays a key role, said that the NGO's Prison Libraries are meant to complement Nigerian Prisons Service's effort at reforming the lives of the inmates.

Speaking on some of the important roles education play in the lives of prison inmates, Esirim said, "education helps to increase employability, reduce recidivism, and ensures a better quality of life. Our prison libraries are a space for reading and personal development. They provide prison inmates studying for external exams and on Open University courses with learning tools and resources from textbooks to make reference to. For those not studying, it has magazines and non-academic books to keep their minds active."

Disclosing that the NGO was further inspired by the recorded impact of usage and testimonies by users, Esirim hinted, "we opened our first Prison Library at Ikoyi Correctional Centre in March 2013 and we are greatly encouraged by the impact it immediately had on its inmates. We went on to establish the three libraries we are commissioning today and our hope is that they will provide access to positive and

constructive activities and support the inmates through their rehabilitation and on the road to a better future."

Speaking further, Esirim noted that several reports had confirmed that half of the prison inmates were Awaiting Trial Inmates (ATI) who could spend more than four years before either being acquitted or otherwise.

According to her, this period of time is enough for interested inmates to acquire some educational qualifications like West African Senior Certificate Examination or even a degree.

"When we visited this prison in the March 3, 2013, we noted that out of a total prison inmates of 1,250, that 777 were awaiting trial inmates. For those among them that may be acquitted, library will help them a lot so that their sojourn would not be a complete waste of time. For those convicted, a library provides an opportunity and resources to occupy their minds positively which will aid rehabilitation."

Reading out some of the reactions from its Ikoyi library project along with the Kirikiri Medium Security Prison inmates, Esirim noted that the Ikoyi library has recorded a steady growth in interest and usage.

Citing 2015 as an example, Esirim said, "the average number of library visits by inmates per month was 20 per cent and 312 materials including magazines, bestsellers, subject books were borrowed with a 10 per cent increase per month."

Sieving through the recorded impact of the libraries on the inmates, presents what seemed like a meeting point between the NGO's slogan 'Turning the pages and changing lives' with the Nigerian Prisons Service Motto: 'Protect Society, Reform the

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• T H I S D AY TUESDAY, APRIL 5, 2016

FEATURES

The ZODML first prison library at the Ikoyi Correctional Centre

Prisoner", as Esirim read to the hearing of some inmates seated at the occasion.

Reading the testimonies, the Esirim said, "May I request your indulgence to recount some testimonies from users. "From Joseph Akpan, Kirikiri Medium Security, "Thanks for putting a smile on the faces of inmates in Kirikiri Medium Security Prison by bringing in this wonderful library. I have always wanted to meet Nelson Mandela and though I could not, but reading about him from a book I got from the library has really inspired me.

"I hope to write here in prison and publish in the nearest future, books that will someday 'minister' to people around the world who haven't met me before just like Mandela."

Emmanuel Adekunle's testimony reads, "The library is stocked with great inspirational books which have so much affected me positively within two weeks of registration. I have benefited from the books and magazines that I have read, such as 'Reposition Yourself' by T.D Jakes. I also learnt the principles of life which I believe would help me more when I am out, so also the book titled, "How Laziness Saved My Life" by Ofili Okechukwu.

Following the routine of appreciating the gesture, Emmanuel Adedoyin's testimony reads, "I want to use this medium to appreciate the originator and those who have donated to the prison libraries, most especially the library in Kirikiri Medium Security Prison where I am. The books are so good that they made me to have a rethink about life and how to live upright to meet the standard of society.

"The books have opened my eyes to things I didn't know or that I never believed I would know. It revealed some discoveries that were known to me. In fact, the library has been very helpful to me and many others."

Inmates have passed the WASCE and NECO exams while in prison, they have also attended the Prison Centre of the Open University of Nigeria and excelled with good grades.

The provision of these libraries will therefore go a long way in enhancing inmates' academic pursuits

For Adewale Adeyemi, he said "Wow, it is amazing, right in this awful situation, I finally got a chance to talk less and occupy my mind with more books.

"The introduction of the library to me is wonderful, I feel so great that I have no other destination than the library now.

The library has really impacted me with wisdom, and now I know more than I had known before. Check out ‘Ile Ife in the Hierarchy of Yoruba Race’, I never knew this much about my state of origin, until I read this book and I even at my leisure times read the books like "All alone in the world", "A Little Bit Dead" and "Paralysed".

The bestsellers are amazing, each time I go through the shelves of books, I really wish I could take more than one. And at the moment, this book "Billion Dollar Bargain" is still keeping me busy and I am coming for more knowledge. Thanks for the library."

Appreciating the library donations by the ZODML, the Controller General of Prisons, Dr. Peter Ezenwa Ekpendu, who was represented by the Deputy Controller General of Prisons, Mr. Emmanuel Ogundele in his welcome address noted that a library is the heart and lifeline of any citadel of acquiring knowledge. Stressing that the NPS engages inmates in educational and vocational trainings as part of its reformation processes, noting that the inmates have often excelled with good grades.

According to the Controller General, "It is on record that inmates through the various programmes of the service have availed themselves this great opportunity to develop.

Inmates have passed the WASCE and NECO exams while in prison, they have also attended the Prison Centre of the Open University of Nigeria and excelled with good grades. The provision of these libraries will therefore go a long way in enhancing inmates' academic pursuits."

Encouraging the NPS officers, men and inmates to make maximum use of the provision, he said, "You will be able to broaden your knowledge as knowledge gained through self-discovery tends to endure longer. I therefore implore you officers, men and inmates of the affected prisons to make maximum use of these libraries since there is no limit to education.

Ekpendu who commended the ZODML's sustained effort in keeping the memory of Zaacheus Onumba Dibiaezue alive, said, "I want to commend the CEO and the Board of Trustee of ZODML for keeping Zaacheus Onumba Dibiaezue alive and for giving hope to the hopeless.

"Your choice of prisons as part of your projects is a demonstration of your commitment to the betterment of the less privileged. It is on record that similar project was commissioned in Ikoyi prison as far back as 2013. The Digital Learning Centre (DLC) established by you which focuses on raising awareness on the seminal role Information and Communication Technology (ICT) plays in our daily lives is also highly commendable. "May you continue to wax stronger in your service to humanity. The Nigerian Prisons Service will forever remain grateful, while we will look forward to more interventions from you and other NGOs, Ekpendu prayed.

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IMAGES

L-R: Alhaja Abbah Folawiyo; Celebrant, Asiwaju Bola Ahmed Tinubu; Alhaja Bintu Tinubu and the former Chairman, Amuwo Odofin Local Government, Comrade Ayodele Adewale, during a prayer to mark the 64th birthday of Asiwaju Tinubu, at his residence in Ikoyi….recently

L-R: Trade Marketing Consultant, MTN Nigeria, Mr. Fidelis Idenyi; Project Nominator, Mr. Sadiq Oche; Vice Chairman, Old Kuntunkun Compensation Layout Resident Association (OKCLRA), Mr. Audu Sheidu; Secretary, Mr. Mathias Sunday, and the Chairman, Chief Emmanuel Abbey, at the commissioning ceremony of the 500KVA transformer donated by MTN Foundation to the OKCLRA community, in Gwagwalada, Abuja….recently JULIUS

L-R: Actor, Mr. Richard Mofe Damijo; Regional Manager, M-net, West Africa Mrs. Wangi Mba-Uzoukwu and Mr. Rotimi Adelegan, during the pre-view of Hush Premier, a new channels on DStv, in Lagos….recently KOLA OLASUPO

L-R: Trade Marketing Consultant, MTN Nigeria, Mr. Fidelis Idenyi; Project Nominator, Mr. Sadiq Oche; Vice Chairman, Old Kuntunkun Compensation Layout Resident Association (OKCLRA), Mr. Audu Sheidu; Secretary, Mr. Mathias Sunday, and the Chairman, Chief Emmanuel Abbey, at the commissioning ceremony of the 500KVA transformer donated by MTN Foundation to the OKCLRA community, in Gwagwalada, Abuja….recently JULIUS

T H I S D AY • TUESDAY, APRIL 5, 2016

Photo Editor Abiodun Ajala Email abiodun.ajala@thisdaylive.com

L-R: Area Manager, MTN, Mr. Umar Gwandu; ANPC Chairman, Alhaji Abibu Sara; Alhaji Ado Taura and Mohamed Kasarau, during the handing over of a borehole donated by MTN Foundation to Bakkwato Community in Jigawa State as part of its What Can We Do Together Initiative, in Jigawa State….recently

L-R: Manager, CSR, Etisalat Nigeria, Oyetola Oduyemi; some children of Pacelli School for the Blind and Partially Sighted Children, Lagos, Principal, Sister Jane Onyeneri; Etisalat Nigeria’s Specialist, CSR, Chukuweta Uraih and the Manager, Legal Service, Seun Timi-Koleolu, during the donation of some welfare items to the Pacelli School for the Blinds, by Etisalat Nigeria, in Lagos……recently

L-R: Senator Oluremi Tinubu; Alhaji Mutiu Lawal-Are; Lagos State Deputy Governor, Dr. Oluranti Adebule; Alhaji Bashir Lawal-Are and the Lagos State Commissioner for Works Mr. Ganiyu Johnson, during the 8th day fidau prayers for the Late Yunusa Olatunde Lawal-Are, at the Blue Roof, Lagos Television, Ikeja… recently

Facilitator, Lagos West Town Hall Meeting, Senator Solomon Olamilekan (left), receiving an Award of Best Youths Empowerment Senator of the year from the Secretary, Lagos Governor Office Correspondents (LAGOCO), Mr. Immanuel Odeyemi, during his Lagos west Town hall meeting and presentation of Empowerment Items, in Lagos…..recently KOLA OLASUPO

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T H I S D AY • TUESDAY, APRIL 5, 2016

BUSINESSWORLD OVERDRAFT PRIME NORMAL LENDING

R A T E S 17.9773% 20.3040%

LOAN PRIME LOAN

A S

18.0478% 20.7143%

A T

DEPOSIT/LENDING SAVINGS ACCOUNT STRICT CALL 7 DAYS

Group Business Editor ChikaAmanze-Nwachuku Email: chika.amanzenwachukwu@thisdaylive.com 08033294157

A P R I L 2.3119% 2.8642% 3.2102%

60 DAYS 90 DAYS 180 DAYS

1 , 6.4400% 7.2438% 7.2417%

2 0 1 6

EXCHANGE RATE N155.70 US DOLLAR* *AS AT LAST FRIDAY

Quick Takes Ghana Holds Roadshow on Eurobond

WOOING INVESTORS

L-R: Attorney General and Commissioner for Justice, Lagos State, Adeniji Kazeem; founder, Centre for Values in Leadership, Prof.

Pat Utomi; Special Adviser to the Governor on Overseas Affairs and Investment, Prof. Ademola Abass; and the Secretary to State Government (SSG), Mr. Tunji Bello at the launching of Office of Overseas Affairs and Investment in Lagos…recently

Operators Proffer Solutions to Challenges in Power, Gas Sectors Stories by Ejiofor Alike Experts in Nigeria’s power and gas sectors have proposed solutions to the problems of the sectors, saying that ongoing projects should be pursued vigorously to completion, while the new electricity tariffs should be implemented.

Immediate past Group Executive Director (GED) in charge of Gas and Power at the Nigerian National Petroleum Corporation (NNPC), Dr. David Ige told THISDAY at the weekend that the two most critical challenges in the short term were project delivery and vandalism.

Ige said there were many gas supply projects that had been in very advanced stages of maturation for the last one or two years, but yet to be completed.

ENERGY “The delay has become worrisome, because if these projects had been completed, the current gas challenge will not be there.

Some of the projects include the Utorogu Non-Associated Gas (NAG 2) Plant, Pan Ocean’s Oil Prospecting Lease (OPL) 267 Project, Nigerian Petroleum Development Company (NPDC) Odidi, Bonga Divert, and Total NOPL pipeline. Some of the problems with project delivery are as follows; funding inconsistency, which results in payment delays and cost overruns; administrative issues in the past – such as Bureau of Public Procurement (BPP) approvals, and internal board approvals; community interruptions; contractor performance;

and inadequate mechanisms for responding to real time scope changes. No amount of incentives will mitigate against poor project delivery. It is essential that these bottlenecks are addressed,” Ige explained.

Ige, who is the Chief Executive Officer of GasInvest Limited, added that vandalism was the next challenge, which needed to be addressed, stressing that gas pipeline vandalism was usually a manifestation of grievance with the community and militants.

According to him, crude oil vandalism could also be a consequence of grievance or outright criminal motive, adding that bespoke solutions must be developed for each.

Ige said despite the frustrations about gas, gas supply capacity had actually grown

at the fastest rate in the last three years or so, from about 400 million cubic feet per day (mmcf/d) to now close to 2,000mmcf/d. “However m uch of this growth is not visible due to the vandalism mentioned above or due to other challenges in the power sector such as transmission, leading to cases of stranded gas, most notably in the East.

An interesting observation with the growth in supply is that it has come largely from NPDC, SEPLAT, Frontier Oil/Seven Energy, Pan Ocean. These are mostly independents. The IOCs have made very insignificant contribution to the growth in supply and are less likely to do so going forward,” Ige explained.

Continued on page 24

Integrated Oil to Conclude EIA on Modular Refinery Soon The Group Managing Director of Integrated Oil and Gas Limited, Mr. Anthony Iheanacho has said that the company would conclude the Environmental Impact Assessment (EIA) studies for its 20,000 barrels per day modular refinery in the next few weeks.

The refinery is the first of its kind to be undertaken by any private marketer of petroleum products in Nigeria.

He said as soon as the EIA was completed and all the requisite approvals obtained, the company would embark on the construction of the refinery, which would initially produce

ENERGY diesel, export quality Naphtha, kerosene, fuel oil and aviation fuel.

Iheanacho, who conducted journalists around the project site in Tomaro Island part of Lagos at the weekend, explained that work had not started because all the approvals had not been obtained and the EIA not concluded.

He however, stated that the company had drawn up the front end engineering design (FEED) and submitted to the Department of Petroleum Resources (DPR).

“We are waiting for Approval to Construct (ATC). We will organise stakeholders workshop on Tuesday (today) in Lagos where federal, State and local government’s agencies will rub minds together with the communities. It is a workshop where the federal government will be convinced that the communities are happy with the project and not opposed to it. After the workshop, the next stage is a public hearing.

That is where journalists will also be invited. The outcome of the stakeholders’ workshop will form part of the presentations at the public hearing. I was talking

with our consultant today and he said that the EIA process will be through in about 10 weeks,” Iheanacho explained.

He refuted earlier reports that work was ongoing at the refinery, stressing that the company must comply with all extant regulations before embarking on the construction of the plant.

Iheanacho said the report that the company was engaged in construction and that buildings in the area were cracking was mischievous and intended to malign the reputation of the Continued on page 24

Finance officials from Ghana will meet investors in London and New York next week ahead of the likely launch of a new Eurobond, Finance Minister Seth Terkper said on Friday.

Terkper said the government plans to use the meetings to showcase the turnaround of the economy and its medium-term potential. The meetings will also be used to assess market conditions ahead of a bond launch, he told Reuters.

Ghana, which exports cocoa, gold and oil, is currently under a three-year deal with the International Monetary Fund (IMF) to repair the economy, dogged by a high budget deficit, public debt and inflation consistently above government targets.

The central bank’s governor recently resigned after struggling to manage the West African economy, once considered a star in the region.

But Terkper said he expected more favourable market conditions this year based on improvements in the Ghanaian economy, especially the potentials of the energy sector.

“I am hoping to get a good yield, based on facts and based on what I am presenting to the markets,” he told Reuters, adding that the size of the bond has yet to be decided.

The country issued a 15-year $1 billion Eurobond in October with a yield of 10.75 percent after having first targeted a $1.5 billion bond at 9.5 percent. It was the fourth sale since its 2007 debut.

Russian Oil Output Highest in 30yrs

Russia’s oil production rose 0.3 per cent to 10.91 million barrels per day in March, its highestlevel in nearly 30 years, raising questions over Moscow’s commitment to freeze output ahead of a producers’ meeting in Doha later in April.

Energy Ministry data on Saturday showed that in tonnes, oil output reached 46.149 million in March versus 43.064 million, or 10.88 million bpd, in February.

Leading oil producers, including Russia, are due to meet in Doha on April 17 for talks on how to freeze oil output at the average levels reached in January to support the global market. But the increase in Russian output to levels not seen since 1987, when it reached a record high of 11.47 million bpd, suggests it may prove difficult for Moscow to stick to oil output freeze commitments.

Russian Energy Minister Alexander Novak said the March production would not be an obstacle to the expected agreement on a production freeze, local news agencies reported.

Some oil industry observers said that it would be hard for Russia to stick to an output freeze since the domestic industry is dominated by several big oil companies, such as Rosneft Gazprom and Lukoil, each with their own agenda.

US Drillers Cut Rigs

The number of rigs drilling for oil and natural gas in the United States fell for the 15th straight week to the lowest level since at least 1940, data showed on Friday, as the energy price rout takes its toll on shale producers’ financing and their ability to drill new wells.

Drillers cut 14 oil and gas rigs in the week to April 1, bringing the total rig count down to 450, oil services company, Baker Hughes Inc said in its closely followed report.

That compares with 1,028 oil and gas rigs operating in the same week a year ago. In 2015, drillers cut on average 22 oil and gas rigs per week for a total of 1,142 for the year, the biggest annual decline since at least 1988.

Oil rigs alone RIG-OL-USA-BHI fell 10 to 362, the lowest level since November 2009, while gas rigs RIG-GS-USA-BHI declined by four to 88, the least since at least 1987, according to the data going back that far.

Energy firms have sharply reduced oil and gas drilling since the selloff in crude markets began in mid-2014, forcing more than 50 US producers to file for bankruptcy protection since the start of 2015.

“The ineffective change management strategies of the Discos have precluded them from effectively taking electricity above 4,500MW” Former Chairman of NERC, Dr. Sam Amadi

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T H I S D AY • TUESDAY, APRIL 5, 2016

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BUSINESSWORLD OPERATORS PROFFER SOLUTIONS TO CHALLENGES IN POWER, GAS SECTORS

Ige charged President Muhammadu Buhari’s administration to focus its incentives on this category of developers and identified their key challenge as access to acreage.

According to him, the International Oil Companies (IOCs) sit on most of the country’s gas reserves, yet have not made meaningful contribution to the domestic capacity, whilst the Independents with less than 10 per cent of the available reserves are making the most contribution.

“I suggest the incentives should include a more visible reward for those that contribute to the domestic market, that is, make more acreages available to the Independents, review the fiscal terms for gas for this category and adjust as appropriate to reflect the lack of robustness of their portfolios,” he added.

INTEGRATED OIL TO CONCLUDE EIA ON MODULAR REFINERY SOON

company.

“If you look very well, the only thing you can see is the fence we did to prevent encroachment; it is a demarcation fence and nothing else has been done expect the fence. We are still in the process of EIA. We have concluded the dry season data collection. After the wet season data collection, we will start work. EIA is the basic thing you must do in a project of this nature before you start work,” Iheanacho added.

He also refuted insinuations that the host communities were aggrieved and pointed out that the communities had apologised to the company over the false report authored by a resident of one of the communities purporting to be acting on behalf of the people of the area.

“You read the strange story from one funny fellow that we had commenced work. You have seen for yourself that we have not started any work.

Nothing is going on here.

Group Business Editor

Chika Amanze-Nwachuku Maritime Editor

John Iwori

AgriBusiness/Industry Editor

Crusoe Osagie

Comms/e-Business Editor

Emma Okonji

Capital Market Editor

Goddy Egene

Senior Correspondent

Raheem Akingbolu (Advertising) Correspondents

Chinedu Eze (Aviation) Linda Eroke (Labour) Eromosele Abiodun (Cap Mkt) Ejiofor Alike (Energy) James Emejo (Nation’s Capital) Obinna Chima (Money Mkt) Reporters

Nume Ekeghe (Money Market) Nosa Alekhuogie (AgriBusiness)

NEWS

Companies Risk Prosecution over Non-Implementation of Compensation Scheme Paul Obi in Abuja Following the increasing number of companies yet to implement the Employees Compensation Scheme (ECS), the federal government is to commence prosecution of companies yet to enroll their workers in the scheme.

This was part of the resolution at a parley between officials of Ministry of Labour and Employment and the Nigerian Social Insurance Trust Fund (NSITF). The Minister of Labour and Employment, Sen. Chris Ngige, who visited the NSITF Lagos Regional Office, observed that the registration of only 9,400 employers by the Lagos regional office is abysmally low, arguing that, the office has the capacity to achieve its target of 100,000 before the end of 2016.

Ngige expressed concern about the level of noncompliance in Lagos regional area, stressing that employers must get compliance notice in the next couple of weeks before they are dragged to court for prosecution.

The minister stated that the government would soon raise a surveillance team that would be entrusted with the responsibility of monitoring the performances of the Lagos regional office.

He said: “I understand that some allowances have not been paid to the staff. I want those allowances to be paid in two installments. The first should be paid before the end of June while the second should be paid in September so that people can pay their children school fees.”

The acting Managing Director of the Fund, Ismail Agaka said: “Whoever is defaulting is liable and would be prosecuted

in the law courts. The law is very clear about the punishment for defaulting.

“It is our responsibility to prosecute those who are not willing to comply without any genuine cause. There are other ways of dealing with those who are unable to comply genuinely.

We will go after those who feel that they can go about their businesses without complying.

“But before we prosecute, defaulters would be given another opportunity by reminding them of their obligations and penalties that are prescribed for non-compliance and that they would be prosecuted if they do not comply after the expiration of the extended period.”

Agaka maintained that the

ministerial directive to increase the number of employers to 50,000 by the government would be pursued within an enabling framework and the prevailing economic realities in the country.

“The mandate to increase the number of employers on the scheme to 50,000 before the end of the year will be taken in tandem with the reigning economic realities prevailing in our country today.

“We have given marching orders to our staff to go after companies and employers who ought to have registered but have failed to do so. In carrying out the prosecution of the defaulting companies, we have to do that within

the economic outlook of the country,” he said.

He explained that in order to increase the number of employers and companies on the scheme, NSITF would be collaborating with the Nigeria Employers Consultative Association (NECA), NACCIMA, Lagos Chamber of Commerce and other organised private sector in order to put in place a workable plan towards reaching employers.

Agaka further stated that “as umbrella bodies these organisations know how to tap into their constituencies.

I will be paying a visit to these organisations very soon to sketch out a working alliance with them on how to widen

participation by employers of labour in the Employees Compensation Scheme (ECS).”

The NSITF acting MD identified low awareness of the scheme among critical stakeholders as the greatest challenge facing the implementation of ECS. He said: “One of our major problems is that awareness is low amongst Nigerians on the existence of the scheme.

That is why we are engaging relevant trade associations and guilds to also help enlighten their members on existence of the scheme as well as the obligations of all employers. We also have recalcitrant employers that feel they the scheme is not for them.”

FOR MSME DEVELOPMENT

L-R: Head, MSME Banking, Proposition & Products, Omolara Akinfolarin; Executive Director, Finance & Strategy, Abubakar Suleiman, both of Sterling Bank Plc and Programme Manager, LEAP Africa, Ndifreke Okwuegbunam at the launching of the 2016 edition of the nationwide MSME academy organised by the bank… recently

CT Cosmos to Set up $150m Solar Power Dangote Group, an Emerging Global Player from Africa, Says Project in Plateau Seriki Adinoyi in Jos Panyam community of Mangu Local Government Area of Plateau State came up alive at the weekend as they came out en masse to receive CT Cosmos Nigeria Limited, a subsidiary of Communication Towers Ltd, which has indicated interest in establishing a massive Solar plant power project of over $150 million in the community.

The Chief Operating Officer of CT Cosmos, Mr. Henry Opara, who led a delegation of the company to meet with the community at the Monarch’s palace, noted that the over 70 megawatts that would be generated by the solar plant will be sufficient to sustain Plateau and neighbouring states when completed.

Opara said: “Presently, we’ve gotten the National Electricity Regulatory Commission (NERC) licence, and we’ve been shortlisted for Power Purchase Agreement (PPA) with Bulk Energy Purchase Company of Nigeria; the working tools we’ve been

awaiting for final take-off to the site. Once the PPA gets to our hands we would then put a timeline on how to progress with the work, stage by stage.

“Because of the high cost of the project, foreign investors are involved; and what they are just waiting for is just the paper from government, and thereafter I believe before the end of this year the project should have taken off. Total period for the completion and kick should not be longer than 18 months.”

He noted that though the federal government is involved in the project, “it is not funding it; it is a private company initiative. At the end of the day the power will be directed to the National grid and will be sold to the federal government.

Opara said CT Cosmos has chosen Siemens, a technical partner in a leading supplier of system as partner for power generation and transmission, and global giant in electrification, automation and digitalisation for the execution of the solar photovoltaic (PV) project

due to the company’s proven expertise in delivering high quality solutions, technical support and services.

He said the solar farm, which is expected to be completed in about 18 months, will cover a land space of about 103 hectares, where the solar radiation is excellent, and will add-up to Nigeria’s efforts to generate needed power to its citizenry.

Enumerating its many benefits to the Panyam community, Opara said the over $150 million project will bring the community to the world map, provide employment opportunities to the youths that have the capacity, and will take off hazardous CO2from the air in the community, providing healthy air for the people.

The Traditional Ruler of the community, Mishkaham Panyam, Engineer Aminu Derwam, who was obviously delighted over the intention of the investor, took time to enlighten his subjects of the many benefits accrued to them as host community for the multi-billion naira project.

ECCIMA

Benjamin Nworie in Abakaliki The Enugu Chamber of Commerce, Industry, Mines and Power (ECCIMA), has commended Dangote Group for African industrialisation.

Dangote Group’s giant strides in establishing cement plants across Africa has attracted commendation of the ECCIMA), which described the conglomerate as an emerging global player from Africa.

The president of ECCIMA, Ugochukwu Chime speaking at the weekend, during Dangote Group’s special day at the 27th Enugu International Trade Fair also lauded the group for operating in almost every sector of the economy while adding a lot of value to the growth of the Nigerian economy.

He said more of Dangotes was all Nigeria needed to be an industrial giant in the committee of the nation, adding that the present challenges facing the country presents opportunity to investors to

do business in Nigeria.

According to him, “Dangote Group has gone beyond being a Nigerian conglomerate to an African conglomerate operating in many countries across the continent. It has demystified the production process, perfected backward integration and in years to come will become a global player, deepening the creation of wealth and employment generation.”

Chime added: “Dangote business and entrepreneurship indulgence has spread to many parts of African continent, employing thousands of people across the world of which not less than 85 percent are Nigerians.”

The Regional Sales Director, South East, Dangote Cement, Tunde Mabogunje, who led the Dangote Group team said that the Group has grown from a trading company to an integrated manufacturing conglomerate and has succeeded in making Nigeria self-sufficient in goods that hitherto, were being imported.

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BUSINESSWORLD

ENERGY

As Buhari Targets 10,000MW of Electricity After successive Peoples Democratic Party-led administrations failed to realise their power generation targets, Ejiofor Alike writes that President Muhammadu Buhari’s target of 10,000MW by 2019 can only be realised if his administration develops strategies to increase available generating capacity by addressing the challenges of gas supply, transmission and vandalism

W

ith the solid foundation laid by former President Olusegun Obasanjo’s administration in the power sector to reform the sector and improve generation, transmission and distribution, the administration had set a generation target of 10,000 megawatts by 2007.

But he handed over only generation that was slightly below 3,000 megawatts when his tenure of office ended on May 29, 2007, out of the 10,000mw he had promised. On assumption of office, the late President Umaru Musa Yar’Adua made power generation one of the pillars of his administration’s Seven-Point Agenda.

He revised downward the 10,000MW target set by Obasanjo for 2007 to what he thought was a more realistic target of 6,000MW for 2009.

Yar’Adua had during his campaign, promised to declare an emergency in the power sector but this promise was not fulfilled before he suffered health challenges that eventually took his life.

But by the end of 2009, the then Minister of Power, Dr. Lanre Babalola, admitted that only about 3,500 MW of electricity was actually being generated from both Power Holding Company of Nigeria (PHCN) and Independent Power Plants (IPP) operated entities, and blamed gas supply inadequacy, sabotage, the Niger delta crises, among others for the failure of the administration to attain the target.

On assumption of office as acting President, Dr. Goodluck Jonathan had set a target of 5,000MW

by December 2011, through his Presidential Task Force on Power, headed by Prof. Bart Nnaji, who later became Minister of Power.

However, the target was not met and Nnaji’s successor, Prof. Chinedu Nebo shifted the 5,000MW target to December 2014 and later January 2015 but it was still unrealisable.

But by the time 2015 ended, Nigeria’s generation was around 4,000MW of electricity.

After the previous administrations of Obasanjo, Yar’Adua and Jonathan failed to achieve generation targets, President Muhammadu Buhari has set 10,000MW for 2019.

It has been argued that setting frivolous targets to score cheap political points has been the bane of Nigeria’s power sector.

According to experts, setting targets without finding permanent solutions to funding challenges, gas pipeline vandalism, weak transmission infrastructure and perennial shortages of gas will not take any administration anywhere, as far as the power sector is concerned.

Under the capital spending plan for 2016 fiscal year, the Ministry of Power, Works and Housing got the lion share of N422.9billion in the budget. It is believed that this funding is adequate given the fact that with the recent privatisation, only the Transmission Company of Nigeria enjoys federal government’s direct funding. But the tackling vandalism and gas shortages should be a priority of this administration if the 10,000MW target set for 2019 will be realistic.

There is no doubt that Buhari’s target will be more realistic than the previous targets given the foundations laid by Obasanjo by way of enabling legislations and the power projects executed by Jonathan, which are well-positioned to boost generation to an all-time high if the perennial challenges are permanently tackled.

The country’s peak generation ever attained was 5,074.7MW, while national peak demand forecast is 17,720MW. The country currently has an installed capacity: 11,165.40MW but only an available capacity of 7,139.60MW. The former Chairman of NERC, Dr. Sam Amadi and a former Group Executive Director (GED) in charge of Gas and Power at the NNPC, Dr. David Ige told THISDAY in separate interviews at the weekend that President Buhari’s 10,000MW by 2019 was realistic and achievable.

To Ige, the target is realistic and adequate in

(MEGAWATTS)

10,000 GENERATION TARGET GENERATION ATTAINED

9,000 8,000 7,000 6,000 5,000 4,800 4,500 4,000 3,500 3,000

2007

2009

2011

Electricity generation targets for successive years the sense that a significant portion of that target was almost already in place from a generation point of view, while a lot is being done on both transmission and gas supply, that can bridge the gap by 2019. Ige said the federal government should incentivise the gas producers, which are mainly Nigerian independents, stressing that the key challenge they have is access to acreage.

According to him, the international oil companies (IOCs) sit on most of the country’s gas reserves, yet have not made meaningful contribution to the domestic capacity, whilst the Independents with less than 10 per cent of the available reserves are making the most contribution. “ I suggest the incentives should include a more visible reward for those that contribute to the domestic market e.g. make more acreages available to the Independents, review the fiscal terms for gas for this category and adjust as appropriate to reflect the lack of robustness of their portfolios. Federal government must deploy more stringent criteria before renewing acreages for underperforming companies,” he added.

On the clamour for higher gas price as incentive, Ige, who is the Chief Executive Officer of GasInvest Limited, said the domestic gas price was adequate.

“It may interest you to note that on aggregate, the domestic gas price is higher than the transfer price to export. More importantly, the pricing of gas, beyond gas in the domestic obligation is done on a ‘willing buyer, willing seller’ basis, that is, market determined. What we need to address is the unsustainable and avoidably high cost of production (by the NNPC/IOC JVs’) of gas and oil. Efficiencies must be introduced so as to make Nigeria competitive. Price cannot be used as a mitigant for unchecked high costs,” Ige explained. On his part, Amadi said the problem of generation was two-fold: access

to adequate gas supply to generators and bankable contracts. According to him, NERC had solved the main regulatory problem of gas supply, particularly pricing. “What remains is to move quickly to contract-based trading; Let every generator have bankable contracts with gas suppliers and with bulk trader. Let Bulk Trader have bankable contracts with discos.

Anyone who fails in the value chain bears the cost. Simple! With consumers now paying the cost reflective tariff there is no room for excuse anymore why we can’t march straight to the contract-based market. The excuse of revenue shortfall is better managed inside a contract market rather than outside. If we do these things very well and restore NERC to its statutory form and powers, then 10,000mw target is readily achievable,” Amadi explained.

“Clearly the target of 10,000MW is very achievable by 2019. That is not a tall target considering where the sector is now, but it is a reasonable one, as it is better to over perform.

What is required to achieve that target is better project management. I have argued that the real challenge of the electricity sector reform now is project management and not necessarily change of model. We have a project management problem not a modeling problem,” Amadi added.

The former NERC boss noted that what the agency did in NERC in the last five years had guaranteed a stable electricity model even in the face of very acute problems of poor quantity and quality of electricity.

Tackling militancy/vandalism Militancy and vandalism are twin evils that have crippled Nigeria’s power sector by disrupting gas supply to the power plants.

A Chief Executive Officer of an Exploration and Production (E &P) company, who did not want to be quoted, told THISDAY at the weekend

2014

2015

2019

YEAR that the problem of E &P companies was not the drop in oil price but production deferment.

“Last year, we suffered almost 100 days of production deferment out of 365 days in the year. We are just beginning this year and we have suffered almost 50 days. All the companies using Forcados pipeline have not been producing since the past six weeks but they are doing all they can to evacuate condensate gas to keep delivering gas to for power generation. If they have not been doing that, the current power situation would have been worse,” he explained.

Many analysts believe President Buhari’s administration is mishandling the Niger Delta crisis. This administration’s first six months were devoid of vandalism of oil and gas assets but the honeymoon is over as destructive attacks on gas facilities have brought power generation to drop to an all-time low.

While some have aligned with government’s decision to go after agitators who vandalise gas infrastructure, others have suggested that the administration should opt for negotiations as the late President Yar’Adua’s administration did, which resulted in the acceptance of the Amnesty Programme by repentant militants.

Speaking on the issue of vandalism, Ige suggested that social engagement that will encompass inclusion and empowerment is inevitable in the Niger Delta.

According to him, force goes only so far, given the terrain and the capacity of the military.

He said global and local enforcement of the anti-corruption principle would gradually make it more difficult for those engaging in vandalism to corruptly enrich themselves via use of bank verification number and tracking of accounts.

Ige suggested technology deployment for surveillance of infrastructure and rapid response Continued on page 27

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BUSINESSWORLD

ENERGY

African Producers Mull Survival Options Amid Low Oil Prices The 18 member countries of African Petroleum Producers Association are considering strategies that will keep them afloat in the wake of the challenging crude oil price environment, writes Chineme Okafor

Usan FPSO

S

ince the prices of crude oil in the international market took an uncertain path, the economies of some key African oil producing countries have received some significant battering, especially those that rely heavily on crude oil export to meet their respective economic and social responsibilities.

Over the periods that oil prices have slipped and revenues from sales by producers dipped, the budgets of a number of Africa’s top oil pro¬ducers like Nigeria have either impaired significantly with challenging revenue benchmarks or looked quite unconvincing since more than 70 per cent of their revenues come from oil production.

While Nigeria with its low oil revenue though has increased its budgetary expenditure for 2016 by 20 per cent, analysts have however observed that most of these countries have either dropped their expenditure profiles because they would not have sufficient fiscal buffers to cope with the slump in oil prices.

On the other hand, some oil companies operating in the countries in Africa have also not escaped the impacts of the price uncertainty.

They have either trimmed their workforce or cut down on planned projects and their costs just to stay up until the situation becomes quite favourable to continue.

The impacts of the low oil prices have also been felt in host communities where inflated hopes and expectations from both the government and operating companies are either dashed, calmed or renegotiated.

Reports indicate that unrealistic expectations by local stakeholders which are often said to be a key road block to progressing projects have now either given way for realistic negotiations or nothing at all because everyone that matters in the oil production cycle appear to be feeling the hurtful pinch that the low prices has brought on the industry.

Notwithstanding, 18 African oil producing countries under the aegis the African Petroleum Producers Association (APPA) have from their meeting at the last African Petroleum Congress and Exhibition (CAPE-VI) in Abuja, agreed to follow through 25 strategic goals they consider good enough to keep them up while the uncertainty in oil prices lasts.

They made these decisions from the 11 sessions of the meeting. The choices they adopted were all extracted from deliberations that assessed the impact of the price volatility vis-à-vis future price predictions; processes needed to enhance attractiveness, good governance and transparency in operating within Africa; partnerships in Africa’s oil and gas sector; funding sources for oil and gas operations and projects; expansion of the business focuses of indigenous African operators, as well as value addition in production through local content laws, amongst others.

APPA’s survival strategies According to the communique which contained the 25 goals that these countries have agreed to pursue, APPA members have indicated that in trying to make its

hydrocarbon resources work for its people and economy, they would now be focusing their efforts on value addition rather than production volumes as it is often the case.

They also said that in seeking to achieve this, they would task their respective governments to work harder for more investments to flow into the continent’s oil and gas industry especially with the current competitive conditions in the global oil industry, by deliberately setting up conducive climates for investments.

Apart from opening up more favourable conditions for investments, APPA members would also build credible partnerships across board which they said would enable them focus on flexibility rather than contractual commitments in the industry. They equally want their regulatory frameworks to be fit for purpose, while extant controls and limit to ineffective bureaucratic procedures including permits and consents should be pursued to increase the sanity quotient of the industry in Africa.

Also, implementing anti-corruption initiatives to ensure transparency of businesses in the industry, implementing better management of production cost elements, co-integrating upstream and downstream activities, and establishing necessary linkages between the oil industry and other aspects of the continent’s economy to make it more resilient to shocks such as the current one are parts of the choices APPA members have considered.

Furthermore, African oil producers have

also indicated their desire to build shared collaboration with infrastructure developers perhaps to help upgrade the upstream, midstream and downstream infrastructure base of the industry in their member countries; promote private sector investment incentives; work towards a more balanced economy rather than the prevalent emphasis on export of crude oil; as well as entrench sincerity of purpose and projects’ consistency to attract and retain participation of partners.

With regards to knowledge sharing and capacity upgrade, APPA members also said that they will establish a robust information databank on challenges and opportunities for existing and potential investors in the continent’s oil industry; invest in human capital development to foster security of operations by members; promote local content management and pursue community development as a share responsibility between stakeholders.

APPA members have also turned their attention to the enormous gas resources of the continent and what they can achieve with it, they said in the communique that they will implement gas monitisation and flare out programmes, which will also protect the environment and mitigate climate change President Muhammadu Buhari had while opening the CAPE VI, asked APPA members to adopt a realistic timeline to end gas flare from gas fields in the continent, saying that Nigeria was on the path to ending the practice in 2030.

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ENERGY

DPR: Kachikwu’s Directive on Errant Petrol Stations Still in Force Stories Chineme Okafor in Abuja The Department of Petroleum Resources (DPR) has reminded petroleum marketers that the directive by the Minister of State for Petroleum, Dr. Ibe Kachikwu that retail outlets hoarding petrol should be sealed and their product given out for free to the public, was still in place.

The regulatory agency has therefore warned that such errant stations that are in breach of the government’s regulation on downstream sector would be sanctioned.

The department also said that it had intensified its efforts at monitoring of petrol stations across the country to ensure that the lingering fuel scarcity ends sooner as planned by the minister.

The DPR’s Director, Mr. Mordecai Ladan stated during a recent tour of petrol stations in Abuja that already cargoes of petrol had started arriving in the country’s ports and lifting already begun.

Ladan said the federal government had ordered a large quantity of the product that would exceed the demand of Nigerians and called on people

to stop panic purchase of petrol to enable filling stations manage the crowd.

“We are appealing to the public not to panic; these products are already arriving. The liftings are going on from the coastal depot into the hinterland. Very soon the situation would normalise. There are more than enough that the government has ordered, both

by NNPC and the independent and major marketers,” Ladan said.

He noted that the attention of the DPR had severally been drawn to cases of hoarding and manipulation by some petrol stations, noting that it had stepped up effort to apprehend culprits and also ensure that the appropriate sanctions are meted out against them.

He then warned that the order on dispensing fuel free of charge to motorists whenever any station is caught hoarding the product was still in force and defaulters would be made to face the wrath of the law.

“Those allegations of hoarding and dispensing at night has come to the DPR and the DPR in conjunction with security operatives had also gone out in the night to monitor and penalise some of these stations,”

Geometric May Sell Excess Power to Enugu Disco As part of the terms of settlement by Geometrics Power and the Enugu Electricity Distribution Company to end their lingering dispute over ownership of the Aba and Ariaria business units, Geometric may enter into a commercial contract to sell the excess power from its 141 megawatts (MW) plant to the Enugu Disco, THISDAY has learnt.

A statement from the Ministry of Power, Works and Housing, quoted the minister, Mr. Babatunde Fashola to have said that both parties – Geometric, which own the Geometric Aba Integrated Power Plant and Interstates Electric Limited, which operates the Enugu Disco would also withdraw existing court cases they had instituted against each other.

Providing details of the agreement that was signed by former Minister of Power, Prof Barth Nnaji for Geometrics and a former Attorney General

of the Federation and Minister of Justice, Prince Adetokunbo Kayode, the statement said that the parties agreed to a commercial arrangement to settle the dispute.

The statement listed the agreed terms to include: “EEDC, a joint venture of FGN and IEL, will cede the distribution/retail franchise in Aba and Ariaria to FGN and APL while retaining the distribution/retail franchise for the rest of the Abia, Enugu and Ebonyi States.”

“GP will supply power to FGN/APL distribution franchise for Aba and Ariaria.

GP and EEDC may also come to a commercial agreement whereby GP will supply power to EEDC to improve services to all EEDC’s customers or targeted ones.

“The parties will withdraw all cases from courts and concentrate on running their businesses and improving services to their customers,” it added.

he added.

He condemned the unruliness recorded in most petrol stations and called on motorist to maintain orderliness while they wait to purchase the product.

“That is why we are going round the petrol stations to ensure that there is sanity and order in the process of sale of the product to the public.

We are calling on the station

dealers to also form a sort of cooperation with the security operatives to help in putting order in their stations.

“We have officers that are going round to ensure that

there is order and we hope that the public would keep calm, because as I said, government is on top of the situation; very soon, this experience is going to be over,” said Ladan.

EXCELLENT RECOGNITION

L-R: Chief Technology Officer, Signal Alliance, Yinka Ntia; Chief Executive Officer, Signal Alliance, Adanma Onuegbu and Olugbenga Babatunde of Union Bank, at the presentation of award to Union Bank, during Customer Week organised by Signal Alliance in Lagos... recently

Group Seeks Collaborative Efforts to Tackle Fuel Scarcity Stories by Ejiofor Alike Ahead of April 7 deadline given by the Minister of State for Petroleum, Dr. Ibe Kachikwu for the current fuel scarcity to begin to ease, the Niger Delta Indigenous Movement for Radical Change (NDIMRC) has called for collaborative efforts among all stakeholders to tackle the lingering product shortages.

It has also hailed the intervention of Kachikwu on the crisis within the Independent Petroleum Marketers Association of Nigeria (IPMAN), saying the resolution of the dispute would contribute immensely in addressing the current product supply challenges. The oil monitoring group also urged marketers and other stakeholders not to sabotage the efforts to ease the current scarcity just as it lauded the minister for his courage to tender an apology to Nigerians over the fuel crisis in the country at a recent meeting with Senate Committee

on Petroleum Downstream.

In a press statement signed by its President, Nelly Emma, Secretary, John Sailor and Public Relations Officer (PRO), Stanley Mukoro, the group appealed to Nigerians to support efforts being made by the minister to end the fuel crisis in April.

The group said it was impressed with the presentation of the minister during the meeting with Senate Committee on Petroleum Downstream and pleaded with major and independent marketers to give the minister the needed support to end the fuel scarcity.

While alleging that the fuel scarcity was aggravated by acts of sabotage by cabals, who are against the reforms being carried out at the Nigerian National Petroleum Corporation (NNPC), the group said: “It is very clear to all now that the oil cabals are out to frustrate the petroleum resources minister, but they will not succeed.”

$3.8bn Egina Project: Firm Begins Committal Proceedings against Promoters Barely one year after Samsung Heavy Industries (SHI) Nigeria Limited, and Lagos Deep Offshore Logistics (LADOL) settled out- of- court, the legal dispute over the $3.8 billion Egina Floating Production Storage Offshore (FPSO) project, a legal firm of Enitan and Associates has stated that it had commenced committal proceedings against some of the promoters of the Egina project, THISDAY has learnt.

Located 130 kilometres offshore in Oil Mining Lease (OML) 130 in deep offshore Nigeria, the Egina field development is a project to build FPSO for Total Upstream Nigeria Limited and the Nigerian National Petroleum Corporation (NNPC). LADOL had dragged Samsung, Total and the Nigerian Content Development and Monitoring Board (NCDMB) to a Federal High Court over alleged plot to exclude the firm from the execution of

the local component of the Egina FPSO vessel. Though LADOL and Samsung have since settled out-of-court, THISDAY gathered that committal proceedings had commenced against Samsung, Total, Deux Nigeria Limited and others for alleged disobedience of court orders.

Citing the orders of the Federal High Court sitting in Lagos in Suit No. FHC/L/ CS/1768/2014 in a statement made available to THISDAY, Enitan and Associates urged that “the general public, particularly the financial institutions funding the above-named project are hereby warned that the orders of the Honourable Court are still subsisting and all persons are legally obligated to comply with same.”

“Any person (corporate of individual) that acts contrary to the orders of court will be in contempt and be proceeded against accordingly,” the statement added.

AS BUHARI TARGETS 10,000MW OF ELECTRICITY using drones, monitoring and classification of contractors for effective policing of contractors that may be colluding and rapid response repair system. “Whilst much can be done to reduce vandalism, it may not be possible to eliminate it completely in the short term. Nigerian Gas Company and the IOCs in charge of infrastructure ought to have in place a rapid response and repair mechanism that minimises downtime from pipeline attack,” he added.

“Overall, I believe the target is realisable.

If we did all that was possible to bring the many gas projects that are over 80 per cent complete to 100 per cent complete, you will be amazed how rapidly the story of power will change in Nigeria. Encourage and incentivise the Independents, engage the militants, outlaw community interruption of contractors working

on government projects, address the payment challenge in the sector and clear all outstanding debts to gas suppliers. These are all very doable and the results will amaze Nigeria,” Ige added.

capability is only 5,500.00MW, according to data obtained from the Transmission Company of Nigeria (TCN).

According to Amadi, “If we start implementing the tariff as proposed with its incentives for distribution efficiency, then we can be sure that Discos will be able to receive even 15,000MW by 2019. “Then you go to transmission. Part of

the tariff review is the change in transmission charges so that more investment can be made in transmission. If you marry better revenue with more efficient and less political management of the TCN you will be sure that TCN Transmission constraints will wheel out over 10,000MW by 2019. But Though the country’s current transmission if we continue with business as usual you capability is 7,000MW, actual network operational can’t guarantee this. But NERC’s regulatory framework guarantees this level of efficiency National Peak Demand Forecast 17, 720MW if enforcement is vigorous,” he added.

Installed Capacity 11,165.40MW Amadi however, added that without apAvailable Capacity 7, 139.60MW pointment of commissioners, NERC would Current Transmission Capability 7,000MW remain comatose, in spite of the hard work Network Operational Capability 5, 500.00MW and best intentions of the management staff.

Peak Generation Ever Attained 5, 074.7MW He called for massive investment on network Maximum Energy Ever Attained 109, 372.01MWH to expand the capacity and also ensure quick

response to line and fault clearing so that there are no downtimes in distribution of electricity.

Source: Nigerian System Operator Source: TCN/NCC

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T H I S D AY • TUESDAY, APRIL 5, 2016

BUSINESSWORLD

INDUSTRY

Nigeria’s Energy Crisis Threatens Economy Crusoe Osagie highlights the endless challenges the severe shortage of petrol and electricity pose to the Nigerian economy To say the Nigerian economy is in dire straits is putting it mildly. The largest economy in Africa is literarily shutting down.

Individuals, families and businesses are feeling the pinch in a nation whose economy is severely threatened by supply crisis in both the electricity and petrol sectors.

The markedly elevated cost of movement of people, distribution of products as well as the cost of power generation is taking its toll on the country already in peril from the sharp decline in crude oil earning, its main source of revenue.

Analysts believe that the nation is losing over N5.8 billion per day in terms of impaired productivity over the fuel crisis which has become clearly intractable.

The challenge of fuel shortage is made worse by the simultaneous shortage of power supply, making efficient business operation extremely difficult.

Vice President of the Nigerian Association of Chambers of Commerce and Industry Mines and Agriculture (NACCIMA), Mr. Dele Oye, told THISDAY that: “The endless petrol challenge is impacting negatively on the efficiency of the economy, resulting in over N5.8 billion in losses every 24 hours.

For the micro businesses which make up over 80 per cent of businesses in the country, the situation is extremely as they have to depend on the very scarce petrol to power their offices due to the lack of municipal power supply.

He noted that unless urgent long-term steps are taken by government to end the crisis, and quick emergency interventions made the country may be sliding into an economic abyss.

“We are not experiencing the best of times in the Nigerian private sector. Government needs to take urgent steps. Petrol must be made regularly available in order to prevent an imminent shut down of many micro and small businesses in the country,” he said.

Power Unavailable Power statistics from the System Operator indicated that at a point late last week, Ikeja Disco, Ibadan, Abuja, Port Harcourt, Benin, Jos, Kaduna,Yola, Eko and Enugu all got zero allocation from the generation companies.

Most parts of the country were consequently in darkness as many who could even afford to power their small and medium sized generators were unable to lay their hands on petrol due to the severe scarcity of the product.

Commenting on the issue, the General Secretary of National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTW N), Issa Aremu, said the situation would further worsen Nigeria’s industrial situation as it would make Nigeria’s products less competitive. “The situation had always been bad, but, this time around, it would further impoverish Nigerian workers whose income would be worsened further. There is no doubt our government needs to put an end to all these crises,” he said.

MSME Losses put at N30bn The President of the Abuja Chambers of Commerce and Industry Mines and Agriculture (ABUCCIMA), Tony Ejinkeonye, last week stated that Micro Small and Medium Enterprises (MSMEs), have recorded losses of up to N30 billion in the last one month owing to the lingering fuel scarcity.

He noted that the continuous fuel scarcity was gradually bringing the nation’s business activities to a standstill.

According to him, “Businesses, especially MSMEs have lost over N30 billion as a result of inadequate supply of petroleum products.

Productivity is low as employ¬ees have stayed off work since the hike of fares by providers and when they come, they are always late.

Businesses and the economy are being battered from all sides- forex, energy supply, infrastructure and security concerns. The list is endless.”

Long queues of vehicles at a fiiling station Questioning the ban on sale of petrol in kegs, Ejinkeonye likened it to ‘treating symptoms instead of addressing the real issue’.

“The issue of unavailability of petroleum products and its importation portray our country in bad light. It portrays us as incompetent managers of our resources. The NNPC from the comments of its officials may have given up. We may seriously need to privatise our refineries,” Ejinkeonye said.

LCCI noted that the weak compliance with the regulated price of Premium Motor Spirit (PMS) in parts of the country is largely a symptom of much deeper problems and distortions in the petroleum products supply chain, saying that the Department of Petroleum Resources (DPR) has been spending valuable time and energy fighting the symptoms of a problem, rather than addressing the fundamentals

LCCI Proffers Solution Expressing concerns over the current fuel scarcity, which has crippled business activities in the country, the Lagos Cham ber of Commerce and Industry (LCCI), has listed steps to put an end to the scourge.

According to the LCCI, the government needs to urgently liberalise the downstream petroleum sector for unfettered private sector participation and investment, subject of course to an appropriate regulatory framework, adding that there should be a level playing field for all operators, including the Nigerian National Petroleum Corporation (NNPC).

The Organised Private Sector (OPS) said if this was done, it would put an end to the perennial problem of fuel scarcity in the country and the hardships suffered by citizens to fuel scarcity.

“This would also attract more investment, generate more jobs and reduce the pressure on the country’s foreign reserves,” LCCI said.

LCCI advised that the role of the NNPC needs to be clearly defined, saying that NNPC should not be an operator and still have regulatory powers while calling for a model that would allow for a level playing field for all operators including the NNPC to be adopted.

The chamber however called for the urgent need to review the current policy framework for the petroleum downstream segment of the oil and gas industry, adding that the consequences of the current policy regime will lead to recurring and protracted fuel scarcity , considerable loss of man-hours as a result of long fuel queues and associated traffic issues on the highways and financial commitment to subsidy payment, even at a time of dwindling government revenue .

LCCI expressed concerns over lack of clarity on the deregulation and liberalisation of the sector, pointing out that the policy lacuna has put many investments in the sector at risk; while many other investment decisions have been put on hold.

The statement added that the concentration of petroleum products supply in the NNPC remains a major cause for concern, stating

that the arrangement is an inherent entrenchment of the dominance of the NNPC to the detriment of private investors in the sector.

“The downstream petroleum sector currently suffers from over regulation which has profound negative consequences for growth, investment and job creation in the sector. Evidently, the current model of managing the downstream petroleum sector is not sustainable. It is at variance with the present administration’s vision to diversify the economy and create jobs,” LCCI said.

The chamber stated that the situation perpetuates the phenomenal of rent economy and detrimental to economic competition, stressing that it is important to stress that the citizens are the ultimate beneficiaries of a competitive market environment.

LCCI noted that the weak compliance with the regulated price of Premium Motor Spirit (PMS) in parts of the country is largely a symptom of much deeper problems and distortions in the petroleum products supply chain, saying that the Department of Petroleum Resources (DPR) has been spending valuable time and energy fighting the symptoms of a problem, rather than addressing the fundamentals.

“The roles of the DPR and the PPPRA need to be better defined. There are currently several instances of overlapping and duplication of activities and responsibilities.

This poses a problem for investors in the sector,” LCCI said.

The private sector body said refineries should be operated as commercial business entities while the NLNG model which allows for private sector management should be adopted for the refineries, saying that this would improve efficiency and reduce the burden of the refineries on the nations’ treasury.

“The pipelines should the concessioned for a more efficient management and reduction of road haulage for fuel and the Central Bank of Nigeria (CBN) needs to ensure a more transparent process in the allocation of foreign exchange to petroleum products marketers. It should also ensure the payment of matured letters of credit (LCs) to their offshore fuel suppliers,” LCCI said.

31

T H I S D AY TUESDAY APRIL 5, 2016

ADDITIONAL MEMBERS OF SPECIAL PDP COMMITTEES The underlisted are invited as additional members of the four Special PDP Committees to be inaugurated by the National Chairman, Sen. (Dr.) Ali Modu-Sheriff, today, April 5, 2016 at the PDP National Secretariat (Wadata Plaza) at 2:00pm prompt.

CONVENTION COMMITTEE 1. Sen. Theodore Orji 2. Sen. Matthew Urhoghide 3. Sen. Joe Ogba 4. Goodluck Opia 5. Sen. Bright Nwanne 6. Hon. Godfrey Dikeocha 7. Sen. Ben Obi 8. Rt. Hon. Mulikat Akande-Adeola ZONING COMMITTEE 1. Sen. Samuel Anyanwu FINANCE COMMITTEE 1. Gboyega Nasir Isiaka 2. Sen. Hayatu Gwarzo 3. Hon. Abiola Adewogun 4. Alh. Karamudeen Lere Oyewumi 5. General Samuel Abok (rtd) 6. Hon. Muhammadu Rabiu Bako 7. Rt. Hon. Joyce Ramnap 8. Nasir Dalhatu Bafarawa 9. Alh. Ali Bagudo 10. Hajia Mariya Waziri 11. Rt. Hon. Onofiok Luke 12. Barr. Anthony Ehilebo 13. Comrade Jude Imagwe 14. Aliyu D. Aliyu

RECONCILIATION COMMITTEE 1. Senator Sahabi Ya’u 2. Rt. Hon. Ahmed Hassan Jumaru 3. Hon (Barr) Effiok Cobham 4. Hon. Legor Idagbor 5. Hon. Ubi Ham Eta 6. Hon. Ezenwa Onyewuchi 7. Mr. Chimdi Ejiogu 8. Sen. Ladan Shuni 9. Kate Henshaw 10. Churchill Umoren 11. Becky Igwe 12. Amb. Fidelia Njeze 13. Chief Emma Ojinere 14. Hon Matthias Ekweremadu 15. Hon. Frank Anioma 16. Sen. Atan Achonu

Signed: Alhaji Abubakar Mustapha, mni.

National Organising Secretary

32

T H I S D AY • TUESDAY, APRIL 5, 2016

PROPERTY & ENVIRONMENT Group Proposes Lighting Requirements in High-rise Buildings As the number of skyscrapers in the country increases, it is important for the Standards Organisation of Nigeria (SON) and Nigerian investors in this type of real estate to join the global community to set lighting requirements for high-rise buildings, writes Bennett Oghifo

A

proposal that would set lighting requirements for high-rise dwellings in the energy standard published by ASHRAE and the Illuminating Engineering Society (IES) is open for industry comment and closes on the 24th of this month.

ASHRAE, founded in 1894, is a global society that advances human well-being through sustainable technology for the built environment. It has a branch in Nigeria. The Society and its members focus on building systems, energy efficiency, indoor air quality and sustainability within the industry. Through research, standards writing, publishing and continuing education, ASHRAE shapes tomorrow’s built environment today.

ASHRAE’s areas of expertise include: energy efficiency; high performance buildings; indoor air quality; green building design; building codes and standards; data center air conditioning and ventilation; health concerns such as Legionnaire’s disease and mold growth; guidance for a safe environment during extraordinary events.

The proposal…

Fourteen addenda to ANSI/ASHRAE/IES Standard 90.1-2013, Energy Standard for Buildings Except Low-Rise Residential Buildings, opened for public comment from March 25 and would close on April 24, 2016.

Among them is addendum ‘do’. Currently, lighting in dwelling units in high-rise buildings is exempt in both Standard 90.1 and ANSI/ ASHRAE/IES Standard 90.2, which is Energy Standard for Low-Rise Residential Buildings.

“In general, lighting within someone’s personal dwelling unit (home) has been exempt because it was not considered commercial, which is the focus of 90.1,” Eric Richman, chair of the standard’s lighting subcommittee, said.

“The International Energy Conservation Code with its residential component and other similar state codes developed some basic requirements for dwelling unit lighting several years ago that addressed product efficacy. At the time, it was difficult to develop requirements that would ensure savings and still be practical for personal spaces. Over time, the lack of dwelling unit requirements in 90.1 presented a potential gap in energy savings. These new requirements would set efficacy minimums and/or controls for the lighting in dwelling unit spaces covered in the standard’s scope, which includes multi-family structures of four storeys or above.”

The proposed requirements are similar to those in the U.S. Environmental Protection Agency’s ENERGY STAR programme for high efficacy lighting. They are simplified to apply to dwelling units in commercial buildings and to support compliance, as well as being conservative to allow design flexibility.

Richman said the proposed efficacy requirements would effectively eliminate the use of incandescent/halogen sources as well as less efficacious products in the compact fluorescent (CFL) and light emitting diodes (LED) categories.

Also among the addenda open for public comment is addendum ‘ei’, which tightens requirements to ensure that non-historic elements or areas of buildings meet the applicable requirements. Currently, the historic building exemption can allow for exempting the entire building, including parts that may be new additions or not part of the historic element, according to Richman.

Other addenda open for public comment until April 24, 2016, are: addendum ‘bd’ that requires monitoring chiller plant’s efficiency in

Civic Centre Towers, one of the green buildings in Nigeria

large electric motor driven chilled water plants for plants with a peak chilled water output based upon equipment type and climate zone.

“The change is designed to help commissioning and ongoing operations of the aforementioned chilled water plants,” he said.

Others are: Addendum ‘dw’ that adds efficiencies for hydraulic elevator motors. The efficiency for the motors used in hydraulic elevators is substantially different from the motor efficiencies used for traction elevators.

In addition, the hydraulic elevator motors are usually not a type covered by the standard.

Advantages of lighting…

Lighting research is aimed at improving the energy efficiency of lighting systems in buildings and homes. The goal is to reduce lighting energy consumption by 50 per cent over twenty years by improving the efficiency of light sources, and controlling and delivering illumination so that it is available, where and when needed, and at the required intensity.

Experts say the research falls into four main areas: sources and ballasts; light distribution systems; controls and communications, and human factors.

According to experts, getting the right type of lighting solution in and around a building is crucial to productivity. For instance, officials of IL Bagno, a company in Nigeria that helps to provide lighting solutions to discerning investors insists that lighting should be part of the conceptual phase of any building, particularly that of high-rise facilities.

The company has partnerships with producers of lifestyle lighting technologies and, according to these manufacturers, lighting architecture should form part of the engineering and architectural drawings.

It is always disheartening to see uncoordinated

lighting in buildings constructed with billions of naira, some experts have said. They advised property owners to get the right lighting design for their buildings, because such design is a crucial component of any building.

According to one of IL Bagno’s partners, a manufacturer of lighting systems, Luca Poletto, who is the Managing Director of Gessi SpA, an Italian company, lights are a critical component of any building and should be included in the design at the conceptual stage.

Another Italian lighting manufacturer, Artemide sent its Africa’s representative, Mr. Imad D. Dib to IL Bagno’s office to train the company’s staff.

Artemide is wholly an Italian company that has eight production houses, with the main ones in Milan, Florence, and France. They also have production houses in Czech Republic, among others.

The Artemide brand are in four categories; Design or decorative, Architectural/Technical; Outdoor range and Artemide neon light, which specialises in LED lights.

The company started business in 1960 with lighting and furniture and from 1970 onwards they focused on lighting. “Up till now, Artemide is number one in decorative lighting in the world,” said Dib. “We have 52 subsidiaries around the world and 50 showcases with presence in different countries. In Nigeria, we have IL Bagno that has our products displayed in their showroom.

He said Artemide manufactures very highend products that cannot be compared with low-level commercial lighting systems. “It is the Ferrari of the cars as compared to Kia or Hyundai. It can be compared to only high-end lighting. It is hundred per cent manufactured in Italy; even the person assembling it is Italian.

So, there is no single screw that comes from

outside the country.”

For clients, who desire custom made lights, there is a department to actualise that order.

“The department evaluates the lights ordered, assess the feasibility, the cost and give the detailed information to the client,” he said.

Decorative lights are all suspended lights; chandeliers, floor and table lights, use in the decoration of the interior; architecture lights are those used in the architecture, whether recessed in the ceiling, on the wall, that are part of the building’s architecture. The outdoor is place in the landscape; the building façade, like the LED technology.

Dib, who covers the whole of Africa, said they have distributors that represent them and that they are represented in Nigeria.

Artemide, he said was testing the Nigerian market, stating that, “Even if it is a rich country, most of the projects here are done with commercial and cheap products. So, it is not easy to really familiarize people with very high-end products that is going to cost way-more than what they are used to. That is why at some point, there are very good quality high-end product but there is a limit for the pricing as well. We cannot go down below a certain level.

We do not target very low-end projects, we target big-high-end projects such as hotels; commercial centres; airports big residential and office buildings and end-users, who want high quality products.”

He said African market has great potentials for Artemide but that the market needed to be trained to accept their kind of high-end products.

These lighting systems are produced to the standard being sought by ASHRAE, which is the reason investors in the country must be part of the process of achieving lighting requirements for high-rise buildings.

33

T H I S D AY • TUESDAY, APRIL 5, 2016

PROPERTY & ENVIRONMENT

Mimiko: We Built Roads More than any Administration in Ondo Bennett Oghifo Ondo state Governor, Dr. Olusegun Mimiko has declared that no government has built as many roads as his government in the history of the state.

The governor stated this during the commissioning of the 27.5 kilometre Ajagba-Iyansan road in Irele local government area of the Southern Senatorial District of the state, recently.

While speaking at the commissioning, Mimiko said the completed road project was in fulfillment of his electioneering promise to the people of the area, adding that the road used to be a footpath, accessed only by bicycles, motorbikes and timber trucks, adding that the road was passable only in the dry season. The commencement of the raining season, he said means people can only access Iyansan, Akotogbo, Ijuoshun and other communities in the area by water.

Mimiko stressed that the

project was a milestone not only in the lives of the communities but also in the annals of the achievements of his administration.

He listed other roads his administration had completed in the Southern senatorial district of the state to include, among others, asphalt overlay in southern Senatorial axis -Okitipupa/Obonde 7.545km; asphalt overlay in Southern Senatorial Axis II Omotosho/ Ilutitun 21.40km,rehabilitation /Asphalt overlay of Irele township road 5.2km, dualisation of Igbokoda township main road 2.5km; rehabilitation of Okitipupa-Erinje-Obonde road 12.75km; rehabilitation of Ore township road 6.46km, asphalt overlay of surface dressed road in Ile-Oluji axis 3.85km; construction of IgbisinOloto - Igbo Egunrin Mahintedo junction, rehabilitation/asphalt overlay of Igbokoda Aiyetoro road phase 1,33km,construction of concrete waterway in Bologwe, 1.7km;

asphalt overlay of OjualaIpoke road 5.8km; asphalt overlay of Inikorogha – Oboro road 3.5km,construction of Okitipupa – Ayeka - Araromi road 9.7km and construction of Igbokoda Aiyetoro road phase 3 –Igbonla Eruna road.

The Governor said he had to mention the roads in question to debunk claims that government concentrates more road work on some areas.

He mentioned roads done in the central district also to include the rehabilitated Ilesha road- Fiwasaye 9.3kilometer road in Akure, Oda- Davog 3.4km road, Installation of light on Ilesha road- Fiwashaye-Owo 9.3km; installation of light on

Ademulegun Idi -Ishin 9.7km road in Ondo; asphalt overlay in Ondo axis 9.9km road; rehabilitation of Ibule 1.4km road, federal highway Ogbese 0.2km road; Ondo township 14.2km, Alade owena-idanre township 20km; Akure township asphalt overlay 20km,FUTA -Aule 5.2km, dualisation of Ilesha road-Fiwashaye 3.1km, NEPA- Arakale 2.3km, Oba Adesida-Isikan 4.1km, and rehabilitation of 1,4km Ibule roads, among others.

In the Northern Senatorial District, Mimiko listed some of the roads project done by his government to include; Owo township 10.2km road,construction of

Adekunle Ajasin University asphalt overlay 9.1km; rehabilitation of Ikare-Ugbe -Ise-Akoko 22.3km road, Akungba- IkareArigidi-Ugbe 10km road; Supare township 4.2km, rehabilitation of Oka town, Epinmi, Ipe, Isua akoko 25km roads, construction of Imeri bridge over Ose river; Rufus Giwa polytechnic 5.2km road; Akungba Supare 16.38km road.

Also included are the phase 1 asphalt overlay of Akoko 17.8km road, Owo -Ose 10.8km asphalt overlay and 18.9km road phase 11 Asphalt overlay of surface dressing on existing Akoko roads.

Affirming his government’s achievement in the area of road

construction, Mimiko implored critics to join hands with his government to move the state forward even as he urged them to” pay more visit home and connect to projects of this nature so that they would be cured of their disconnect with the present realities.”

He added that projects like the Ajagba Iyansan road represent the value of democracy, where voters can hold politicians accountable for the promises they made to them.

The Governor appealed to the people to consider the roads as personal and collective heritage which they have individual duty to protect and preserve.

‘Occupants Should Identify Real, Superficial Comfort in a Building’ Charles Maduka ‘Space and light and order.

Those are the things that men need just as much as they need bread or a place to sleep’- Le orbusier.

Architecture is however defined as the art and the science of designing and erecting a building and other structures Shelter is one of the basic necessities of life and its main objective is to protect man from inclement weather conditions.

Comfort is defined by Arcus Dictionary as ‘A state of being relaxed and feeling no pain’.

Conversely, pain is actually a feeling of discomfort. The role of shelter can be appreciated with the feeling that comes with a sudden change of our immediate environment from indoor to outdoor. The psychometric chart, developed

by Willis Carrier, the inventor of the modern air conditioning is fundamental to building science. According to the studies, temperature and humidity are the most important factors of comfort. Temperature is the degree of hotness or coldness of a body or environment while humidity is the wetness in the atmosphere or simply the quantity of moisture in the air. The room that makes one to put on sweater could be the other way for another.

Moreover, building is defined

by Encarta Dictionaries as a structure with walls and a roof.

A building protects man from the vagaries of weather and also provides an indoor climate for the body metabolism that keeps man alive, healthy and comfortable. One of the patriarchs of architecture, Louis Sullivan had a dictum, ‘Form follows function’. The literal meaning of the dictum is that the form /shape of a building should emerge from the interplay of activities in that building and the site forces (Prevailing

wind direction, topography, vegetation, sun position, soil characteristics among others).

In the same vein, the nature of the building envelope and the indoor climate also determine the degree of comfort in a building. David Hoffman of Energy Vanguard Blog stated in his write-up titled the four factors of comfort in a building that other factors that determine the level of comfort in a building other than temperature and humidity, are air movements (The air moving across your skin), mean radiant temperature (How hot or cold are the surfaces around you) and the quality of the air. Comfort is a nebulous concept. Everyone has a slightly different temperature considered to be the comfortable temperature.

Furthermore, our interface to the world is through our senses: touch, sight, hearing, smell and taste.

Nevertheless, there are six factors that influence how a person will feel when he goes outside the building.

These factors are sunlight, wind evaporative cooling, temperature, humidity and clothing. The import of this piece is to delve into the demand for comfort in a building as it relates to the basic function of protecting man from adverse weather conditions. The comfort that is associated with a functionally effective building can be referred as the real comfort. A building whose initial designed functions had been altered due to change of use had lost some of its real comfort and can only be sustained by its intrinsic or superficial comfort.

(Please read my write-up on how not to abuse your house). Superficial comfort in a building is not dependent on its function.

Maduka is an architect in Lagos

L-R: Publicity Secretary, Pest Control Association of Nigeria (PECAN), Mr. Tunde Shittu; General Secretary, Mr. Oluyemi Taiwo; President, Mr. Ayo Ogunyadeka; Treasurer, Mrs. Kofo Adegboye and Chairman, Technical Committee, Mr. Kayode Odubogun, during a media parley on rodent control as a measure for combating the Lassa Fever, in Lagos…recently

Haven Homes Delivers Model 2016 Homes Lifestyle living specialist, Haven Homes has completed and delivered its 2016 Design much to the expectations of its teeming subscribers.

This is contained in a statement released recently by the company’s Assistant General Manager, Ms. Ufuoma Ukueku.

The 2016 design is a further improvement on the exterior and interior of the sensational 2015 design and the latest model is already being handed over to subscribers among the firm’s current efforts at Richmond Gate Estate in Lekki.

More celebrities have continued to embrace the Haven Homes’ flagship project at Richmond Gate Estate. MTN brand ambassadors recently gathered in Richmond Gate Estate for a video shoot after the video director, Mr Sesan Ogunro came to Haven Homes and was pleased to discover an alternative serene location that is comparable to the exotic scenes in South Africa hitherto patronized for such video shoots. A scene on the shoot had ace artiste, Sound Sultan driving a truck within the premises of Richmond Gate Estate. He was working alongside a host of other superstars on music videos which are set to debut soon.

According to Ukueku, there are several notable features in the

latest model, and she avers that it differs from the 2015 design in that a special element known as ‘‘curve architecture’’ has been taken to a much higher level by the creation of a unique roof design that curves from the first deck to the upper roof. A curve spanning over 2 floors!

This civil engineering feat is unique on the residential landscape in Nigeria and is the first of such known.

Haven Homes added that their structural engineers, Abisoye & Co. faced a huge challenge as the massive curve could have placed undue stress over the first deck cantilever but with careful weight balancing, structural strength was achieved through the use of carefully designed clay pots to keep the structure standing.

One major advantage with this design is that it’s difficult to copy by design pirates, a habit that Haven Homes has often decried over the past few years.

The internal fittings of the 2016 design also enjoyed some enhancements. The new designs are fitted with wall switches that emit pilot LED light in the dark so that their locations can be seen even in the dark, eliminating groping for switch locations, in addition to having the walls being kept clean.

‘Paris Agreement on Climate ChangePlacesAfricaattheFulcrum of Renewable Energy Deployment’ Fadekemi Ajakaiye The Paris Agreement on climate change of December 2015 has placed Africa at the fulcrum of renewable energy deployment, but African countries have to take the responsibility for taking stock for a long-term development strategy, international climate and energy, experts said at a recent meeting in Addis Ababa.

The March 17-18 meeting on climate change and enhanced renewable energy deployment in East and Southern Africa was jointly convened by the African Development Bank (AfDB), the International Renewable Energy Agency (IRENA), the United Nations Economic Commission for Africa (ECA), and the United Nations Framework Convention on Climate Change (UNFCCC) Regional Collaboration Centres in Kampala. A statement by AfDB said, the Addis Ababa meeting, the second of two such regional meetings that started in Dakar, Senegal, three weeks ago, brought together experts from energy and environment ministries in the region as well as experts from UN and intergovernmental agencies.

It created the much-needed

space for countries of East and Southern Africa to promote dialogue and coherence between policy-makers, the private sector and civil society on unleashing the potential of renewables in Nationally Determined Contributions (NDCs) to climate action under the framework of the Paris Agreement, and to showcase strategies underway, including opportunities for regional collaboration as countries prepare to move into a postParis implementation phase of climate actions. Representatives of partner institutions and agencies as well participants from seven countries of the region emphasized the high potential and opportunities for enhanced renewable energy deployment in Africa and its contribution to climate change mitigation, as well as the various co-benefits of renewables for social and economic development.

Abdalla Hamdok, Chief Economist and Deputy Executive Secretary of the ECA, recalled that low-carbon energy systems are an integral part of the development paradigm for Africa because it chimes with Africa’s long-term development vision as defined by Agenda 2063.

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T H I S D AY TUESDAY APRIL 5, 2016

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T H I S D AY • TUESDAY, april 5, 2016

SPECIAL REPORT

Banks Hit by Weakening Macroeconomic Environment With profit warnings issued by FirstBank, FCMB, Ecobank, Diamond Bank and Skye Bank, it has become evident that the economic headwinds are hitting banks’ bottom lines. Goddy Egene, Obinna Chima and Eromosele Abiodun review the impact of CBN and government policies on financial services in the country and the wider implications for the Nigerian economy

CEO, FirstBank Nigeria Limited, Adesola Adeduntan

CEO, FCMB Limited, Ladi Balogun

CEO, ETI, Ade Adeyemi

he deteriorating macroeconomic environment as well as some earnings-constraining policies from both the monetary and fiscal authorities have seen some commercial banks in the country gasping for breath.

At the moment, five banks – Skye Bank Plc, Ecobank Transnational Incorporated (ETI), Diamond Bank Plc, First City Monument Bank and FBN Holdings – recently issued profit warnings in view of the anticipated huge impairment charges in their full year 2015 results. The lower profit warnings have been attributed to higher impairment charges on the banks’ non-performing loans (NPLs), as low oil prices and weak macroeconomic conditions continue to exert pressure on the financial positions of Nigerian banks.

In addition, the persistent scarcity of forex in the economy as the Central Bank of Nigeria (CBN) continues to ration dollar supply through its demand management strategy, have increased the risk that banks’ asset quality could deteriorate further. Also, this might cause a lot of the financial institutions to default on their international obligations to correspondent banks and maturing forex obligations in view of the challenges currently facing banks and businesses in the country.

In 2015, the Nigerian economy grew by 2.82 per cent, compared to 6.23 per cent in 2014, signifying a major decline in economic activities across board. The issues surrounding the currency curbs introduced by the CBN and declining disposable income brought on by unpaid wages were responsible for the sluggish growth recorded in 2015. Current forecasts show that the country’s growth rate could slide to around one per cent for the first quarter of 2016.

As economic growth slowed down, the Consumer Price Index (CPI), which measures inflation in Nigeria, rose sharply to 11.4 per cent in February, compared to 9.6 per cent the previous month, according to the National Bureau of Statistics (NBS). The latest figure saw inflation breach the CBN’s target band of between 6 and 9 per cent. The last time inflation

hit double-digit in the country was in December 2012 at 12 per cent.

These emerged just as one of the biggest global rating agencies, Standards & Poor’s (S&P), revised the country’s sovereign credit outlook to negative from stable, just as the country’s total merchandise trade fell to N3.65 trillion in the fourth quarter of last year compared to N4.02 trillion in the previous quarter. In a note, S&P stated that Nigeria’s foreign exchange policy was creating dislocations in product and financial markets, adding that the negative outlook it assigned to Nigeria reflected the possibility of a downgrade in the coming 12 months, “if there is deterioration of Nigeria’s fiscal or external accounts”.

Currency Controls Hurting Banks and Businesses

T

Clearly, Nigeria is dependent on imports, which Nigerian banks facilitate via the opening of letters of credit (LC). The customer typically repays these after imports are sold; the customer therefore earns naira, then approaches the banks to source forex from the CBN (or goes to the black market), with which the correspondent bank is repaid. Therefore, as importers continue to struggle to access forex, banks have used their forex liquidity to settle with the correspondent banks (given that LCs are guarantees), in anticipation of the CBN providing liquidity. But findings showed that the CBN has been unable to meet forex demands, with the backlog CONTINUED ON NEXT PAGE

38

T H I S D AY • TUESDAY, april 5, 2016

SPECIAL REPORT BANKS HIT BY WEAKENING MACROECONOMIC ENVIRONMENT Clearly, Nigeria is dependent on imports, which Nigerian banks facilitate via the opening of letters of credit (LC). The customer typically repays these after imports are sold; the customer therefore earns naira, then approaches the banks to source forex from the CBN (or goes to the black market), with which the correspondent bank is repaid.

Therefore, as importers continue to struggle to access forex, banks have used their forex liquidity to settle with the correspondent banks (given that LCs are guarantees), in anticipation of the CBN providing liquidity. But findings showed that the CBN has been unable to meet forex demands, with the backlog of forex demands running into several billions of dollars

of forex demands running into several billions of dollars.

The banks have therefore significantly slowed the issuance of new LCs, further hurting businesses and the manufacturing sectors. Also, the tough environment has seen a lot of businesses struggling to remain afloat, as a lot of businesses that were granted loans by commercial banks were either unable to repay, or have continued to falter on their repayment plans, thereby necessitating a lot of loan restructuring in the industry.

CEO, Diamond Bank, Uzoma Dozie

CEO, Skye Bank, Timothy Oguntayo

defaulting obligors reported in our Q3 audited results. The full year’s performance was also adversely affected by a 44 per cent drop in foreign exchange income and a 12 per cent drop in net interest income, largely caused by the foreign exchange policy and impact of the cash reserve requirement ratios till Q4.”

Similarly, FBN Holdings, following the review of its management accounts for the 2015, said it expected earnings to fall materially below that of the previous year. “The reduction in earnings is as a result of the recognition of impairment charges on some specific accounts resulting from a reassessment of the

loan portfolio within our commercial banking business. This reassessment was driven by the challenging macro environment coupled with fiscal and monetary headwinds, which have resulted in a marked reduction in domestic output.

This is a prudent measure being taken while the bank has commenced active remedial action on the specific impaired accounts,” the bank said. However, FBN Holdings assured stakeholders that its merchant banking, asset management as well as insurance businesses remained strong and resilient.

Over-exposure to Energy Sector

Similarly, as a lot of Nigerian oil and gas firms grapple with mounting debts on account of the slump in the price of crude oil and rising vandalism of oil and gas infrastructure, they are also finding it difficult to meet the repayment terms of their multi-billion dollar exposure to the banks which is also hurting the financial health of the banking system. The situation is no better in the electricity sector, where banks are also over-exposed to investors who bought over the underperforming power assets in 2013. Despite attempts over the years by commercial banks to downplay the likely impact of their exposure to the oil and gas and power sectors on their results, the profit warnings have served as a signpost of the effect of the sustained decline in crude oil prices as well as the low level of revenue recorded by electricity firms on the banks.

Brent crude price, the international benchmark has fallen to a six-year low of around $40 per barrel since last month, and there are strong projections that crude prices might remain soft in the medium term. This has seen a lot of banks restructuring these debts into longer repayment tenures.

The Unpleasant Numbers

FCMB Group started the gale of profit warnings that hit the capital market last month. It was followed by four others, Diamond Bank Plc, FBN Holdings, Ecobank Transnational Incorporated (ETI) and Skye Bank Plc. FCMB said that earnings and profitability for the third quarter, which ended September 30, 2015 would be lower than the figures of same period in corresponding period of 2014. While other banks had announced their 2015 nine months results, FCMB, last October, said it would delay in releasing its results.

“FCMB Group Plc would like to inform the investment community of the commencement of the interim audit of First City Monument Bank Limited as at 30th September 2015 by KPMG, the bank’s auditors. For this reason, the 3Q15 results will be delayed. The audited results will be released on the Nigerian Stock Exchange and to the investment community upon conclusion of KPMG’s audit,” the bank had said.

The Managing Director of FCMB Group Plc, Mr. Peter Obaseki, explained that the lower earnings would result from the spike in impairments particularly in the energy sector and the significant reduction in trade finance-related revenues due to foreign exchange illiquidity.

Given the warnings, it came as no surprise that when the bank released its audited results for the full year ended December 2015, profit after tax (PAT) fell by 78 per cent from N22.1 billion in 2014 to N4.8 billion in 2015.

Commenting on its performance, the Group Managing Director/CEO, First City Monument Bank Limited, a key subsidiary of FCMB Group Plc, Mr. Ladi Balogun, said: “The commercial and retail banking arm of the group saw a significant drop in profitability for the full year to N6.5 billion PBT, following the impairments from two significant

CONTINUED ON NEXT PAGE

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T H I S D AY • TUESDAY, APRIL 5, 2016

SPECIAL REPORT BANKS HIT BY WEAKENING MACROECONOMIC ENVIRONMENT

“We reiterate our 2016 focus on restoring shareholder value by driving improvements in underlying asset quality, cost efficiency, enhancing revenue generation, and extracting synergies across the group, as well as growth through innovation,” FBN Holdings stated.

In the case of Diamond Bank, it said the continuing deterioration in Nigeria’s macro-economic conditions resulted in the bank recognising higher than expected impairment charges on loans made to the energy and commercial business sectors.

“In light of these deteriorating conditions, and subsequent review of Diamond Bank Plc’s management accounts for the financial year ended December 31, 2015, preliminary indications are that earnings will be lower than in 2014.

Diamond Bank wishes to reiterate that in recent years, it has deployed considerable resources in building a dependable risk management framework, and the quality of its loan portfolio in general, remains high,” it said.

However, the bank said it remained determined to deliver on its stated strategy of creating Nigeria’s leading technologyled retail bank. “Already, in 2016 the business has made significant changes to its operating structure that will result in reductions in operating costs. Further investment has been made to improve customer relationships and revenue in our core business segments. These actions aim to deliver improved earnings and lower operating costs from 2016 onward. Overall, despite the headwinds and the fact that 2016 presents a tough operating environment for the industry, we remain optimistic on the fundamentals underpinning our long term retail-led business strategy,” the bank said.

ETI noted that macroeconomic challenges faced by most African economies, lower crude oil prices, depreciating currencies, monetary and fiscal bottlenecks, due to global developments, negatively impacted expected revenue growth. “Thus, revenue growth for 2015 will be below our target guidance. Higher

impairment losses on loans were recognised in the last quarter of 2015 across its loan portfolio. Key actions have been implemented to strengthen our credit risk management processes.

As a result, our revised growth targets communicated during our third quarter 2015 investor conference call for deposits and loans will not be achieved. We also expect our efficiency and asset quality metrics to be worse than targets. Based on the aforementioned, we expect our full year 2015 profit in US dollar terms to be lower than the nine-months to 2015 reported profit,” ETI said.

The lull in the oil industry and real estate sectors of the nation’s economy also impacted negatively on the operations of Skye Bank. Consequently, the bank is expected to report a decline in profit for the financial year ended December 31, 2015. In a profit warning notification to the capital market community, Skye Bank attributed the expected decline in performance to the recognition of increased impairment on loans to sectors severely affected by the prevailing economic headwinds which are yet to abate, especially the lull in oil and gas and real estate sectors.

“While this cautious approach has been adopted, we have designed and commenced appropriate remedial processes to salvage the affected assets as soon as possible. Full details of the group’s financial performance will be disclosed after regulatory approvals of the financial statements. We remain committed to our focus on supporting the growth of the retail and small and medium scale enterprise (SME) sectors amongst others,” the bank said.

Skye Bank, however, added that in 2015 it made substantial improvements to its risk management framework with a view to ensuring that its risk assets portfolio remained solid and of good quality. “Our cost containment, internal efficiency and process improvement measures remain on track,” the bank added.

Instructively, the decline in banks’ earnings due to higher impairment charges and the significant reduction in trade financerelated revenues caused by foreign exchange illiquidity, will be felt by government in particular and the wider economy in general, as lower profits will impact on the Company Income Tax (CIT) that will accrue to the treasury. A bigger problem is that as banks reduce their loans and advances to customers due to the challenging macro environment, productivity will continue to head south, while job losses are bound to rise.

There’s No Hiding from the Truth, the Nigerian Economy is in Recession!

Obinna Chima To the Chief Executive Officer of Maxifund Securities Limited, Mr. Okechukwu Unegbu, the Nigerian macro environment is reflective of an economy that is in recession.

“I did say that the economy is already in recession and some persons did not believe me. But that is what it is at the moment. What it portends is that we shall continue to see these things until around the second quarter of the year,” Unegbu, a former bank CEO said.

He argued that the N350 billion that the federal government plans to inject into the economy in its bid to stimulate economic activities would not have any impact on the economy.

Unegbu, who is also a former President of the Chartered Institute of Bankers of Nigeria explained: “They (the federal government) said that the funds would be used to pay contractors that borrowed money from banks. How would they do that? Being a former bank CEO, I know that what they (the contractors) are going to do is to use that money to pay back their bank loans. They borrowed these money from banks long ago, and these banks would definitely hold back these funds once they (the contractors) are paid.

“So the assumption is very wrong, because these contractors would definitely pay interest on their loans and pay back the amortised loans. The funds would only help the banks to recover some of the debts that had gone bad.

So the best thing for the federal government is to channel those funds to productive sectors that can generate jobs. That is the situation; we are really not managing our economy properly. We are not making efforts to come

Rewane

Unegbu

out of the woods.

“The situation we find this economy was forecast a long time ago, but some people were living in denial. The level of production in the country has dropped significantly and that is why I am angry with those who said we should not devalue the currency, because if we do that, we shall kill the economy finally.”

In his contribution, the Chief Executive Officer of Financial Derivatives Company Limited, Mr. Bismarck Rewane, pointed out that the banking sector can only be as healthy as the economy itself.

According to Rewane, if the economy is going through turbulence, the banking sector would also feel the impact of the turbulence. “Some banks have reported some very good numbers. But if you distill those

numbers, you will find a lot of extraordinary items. So if you take out the extraordinary items, you will find out that the industry is becoming less attractive and more cannibalistic. Therefore, in the near future, we expect some further turbulence, weaker performance, head count rationalisation and restructuring to take place.

“Again, like I said, you cannot be older than your father. If the economy is in trouble, the banking system would also be in trouble.

But the truth is that because the banks are adequately capitalised, they have enough buffers to withstand the shocks.

“What is happening is that the level of economic activities in Nigeria have shrunk, GDP has reduced, unemployment has gone up and that is cyclical. We don’t need to sit

down and blame anybody, but to continue to seek ways to come out of this situation,” Rewane said.

Sub-Saharan Africa banking analyst and Head of Nigeria Research at Renaissance Capital, Mr. Adesoji Solanke, also aligned with Unegbu and Rewane, saying the situation the banks have found themselves was largely driven by the weak macroeconomic environment.

He listed other sectors in the economy also facing challenges as a result of the drop in economic activities to include the oil and gas, real estate and the power sectors.

“If you try and differentiate between the banks that have released their results so far, I think those results were probably as good as what you are going to get from Nigerian banks for 2015. All the results that are yet to be released are unlikely to be impressive,” he said.

Commenting on the effect of forex scarcity on the operations of commercial banks, Solanke said: “What has happened now is that with forex becoming so scarce, the banks have to a large extent stopped issuing new LCs, which has also affected GDP growth.

“Businesses basically cannot source forex to pay down their obligations and banks have refused to open new ones because there is no guarantee that after their product cycle, they would be able to source forex to pay them back. So from a bank angle, that is income out of the window because they are not able to charge LC-related fees and that is negative for non-interest income for the banks. Some of those businesses that are not able to access forex have shut down and that ends up as an NPL on the books of banks,” he noted.

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TUESDAY APRIL 5, 2016 T H I S D AY

TUESDAY APERIL 5, 2016 • T H I S D AY

INTERNATIONAL

email:foreigndesk@thisdaylive.com

ANC in Crisis Talks over Zuma’s Scandal South Africa’s ruling African National Congress (ANC) party held crisis talks yesterday to discuss the fallout from a court ruling last week that President Jacob Zuma flouted the Constitution, triggering calls for him to resign.

The ANC backed Zuma, 73, after the Constitutional Court rebuked him for ignoring Public Protector Thuli Madonsela’s order that he pay back some of the $16 million spent on upgrading his private Nkandla home.

But the scandal, one of several which have dogged Zuma over the past decade, could strain relations between the ANC and its allies the South African Communist Party (SACP) and labor federation COSATU, which have helped it to retain power since the fall of apartheid in 1994.

ANC officials declined to give details of yesterday’s meeting by the party’s national working committee, which follows that of the ANC’s top six leaders on Friday. The ANC could issue a statement later on Monday, a spokeswoman said.

Analysts say the Constitutional Court ruling is a blow to Zuma’s credibility and could harm the ANC ahead of municipal elections due between May and August.

National Assembly Speaker Baleka Mbete, who is also the

ruling party’s chairperson, said on Sunday parliament would on Tuesday debate a motion by the opposition to impeach Zuma.

The motion is, however, likely to fail in the house where the ANC, in power since Nelson Mandela became the first black president at the end of white minority rule, still enjoys a comfortable majority, with 62 percent of the 400-seat assembly.

“Zuma remains in control of his

party (even if slightly weakened) and with a significant degree of electoral popularity, especially in rural areas and KwaZulu-Natal,” BNP Paribus Securities South Africa political analyst Nic Borain said.

In a televised address to the nation on Friday evening, Zuma apologized and said he would pay back some of the money spent on the upgrades at Nkandla, but denied acting dishonestly.

Hillary Clinton, Lobby Latinos with Cabinet Positions Presidential hopefuls, Hillary Clinton and Bernie Sanders have vowed to nominate Latinos into key cabinet posts in their administrations if elected, according to their answers to a questionnaire organized by the nation’s largest Latino coalition.

The 20-question survey was submitted by the National Hispanic Leadership Agenda to all U.S. presidential candidates on Feb. 25, but received responses only from the two Democratic contenders and none from the Republicans, according to the results r “From special assistants to cabinet members, Latinos will play a key role in helping to

shape my policy priorities and be effectively represented in our agencies,” former U.S. Secretary of State Clinton wrote.

U.S. Senator from Vermont Sanders promised to make his administration“reflect the diverse make-up of the country... I can think of no place more vital for such diversity than in the cabinet and the Senior Executive Service of the President of the United States of America.”

Both have already promised comprehensive immigration reform, appealing to Hispanic voters ahead of presidential nominating contests in minorityheavy states.

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T H I S D AY • TUESDAY, APRIL 5, 2016

BUSINESS/MONEYGUIDE

Fidelity Bank Places N22.4bn Oando Loan on Watchlist Nume Ekeghe with agency report Fidelity Bank Plc disclosed yesterday that it had put a N22.4 billion ($113 million) loan to Oando Plc on a watchlist and has taken a special provision of five per cent.

Reuters quoted the mid-tier commercial lender to have said on an analysts’ conference call that the Oando loan accounted for 3.7 per cent of its total loan book and 15.2 per cent of its energy loan book.

The bank’s Head of Strategy, Gbolahan Joshua said the loan to Oando has not been classified as non-performing but that the central bank had advised commercial lenders including Fidelity Bank exposed to the energy firm to make a special provision of five per cent.Fidelity said it lent N14.9 billion to Oando Marketing and N7.5 billion to Oando Energy services Limited.

“The central bank is taking a prudent view. It has given a deadline for Oando and the banks to come back with a structure ... including disposal of assets,” the bank’s Chief Executive Officer,

Nnamdi Okonkwo said on the call. Shares in Oando were down 1.75 per cent after Fidelity said it had put the loan on its watchlist.

Oando has agreed to sell its downstream business to oil trading group Vitol and said it would sell its power and gas subsidiaries and raise up to 80 billion naira through a rights issue after reporting a record loss of $1.10 billion for 2014. Oando is still due to post results for 2015, having reported a $246 million loss in the nine months to September.

Oando paid $1.5 billion to acquire ConocoPhillips’ Nigerian assets in 2013, when oil prices were at a peak. But high financing costs coupled with the plunge in oil prices have hit profits, despite an increase in production volumes.

Fidelity said it had taken the Oando charge against profits, making a provision of N1.1 billion.

Fidelity’s 2015 pre-tax profit fell 9.6 per cent to N14.02 billion.

“Once the whole Oando scenario is resolved it becomes a positive for us,” the bank said.

Okonkwo said assuming Oando’s loans were to be clas-

sified its non-performing loan ratio would hit 8.1 per cent, from 4.4 per cent.

Fidelity missed its loan growth target for 2015, which it had originally put at 10 percent, with the actual rise last year 6.7 per cent, down from a 27.1 per cent growth rate in 2014, Okonkwo said.

It aims to expand lending by between 5 to 7.5 per cent this year.

According to the audited results of the bank, gross earnings grew from N136.9 billion to in 2014 to N146.9 billion in 2015. Profit before Tax (PBT) declined by 9.6 percent to N14.0 billion from N15.5 billion in 2014, while PAT settled at N13.9 billion compared with N13.8 billion the previous year. Hence, the directors recommended a dividend of N4.6 billion, thus maintaining a tradition of consistent dividend pay-out for the past six years.

Commenting on the performance, Okonkwo had said it reflected the disciplined execution of the management’s medium term strategy and the resilience of evolving business models despite the extremely challenging business environment in 2015.

Access Bank to Raise N100bn in Debt Sale Access Bank Plc plans to seek shareholder approval this month to raise up to N100 billion ($505 million) in debt capital via a public offering or a private placement, the bank said on Monday.

The shareholder meeting on the proposed debt sale has been fixed for April 27.

Access Bank raised N41.7 billion last year through a rights issue to fund expansion of its branch network and lending. The amount raised was less than the N52.6 billion

targeted, with analysts citing difficult market conditions.

Access Bank results for the year ended December 31, 2015 had shown that its gross earnings rose by 38 per cent from N337 billion to N245.4 billion in 2014.

Interest income and non-interest income contributed 62 per cent and 38 per cent, respectively to the gross earnings.

Non-interest income stood at jumped by 89 per cent to N129.450 billion from N68.429 billion. Profit Before Tax (PBT) grew by 44 per cent from N52

billion in 2014 to N75 in 2015.

Profit After Tax (PAT) was up 53 per cent from N43.1 billion to N65.9 billion.

Commenting on the results, Group Managing Director / Chief Executive Officer, Access Bank, Mr. Herbert Wigwe said: “Guided by a robust risk management framework, our diversified business model yielded positive results as we grew the business cautiously and recorded sound prudential ratios.”

MasterCard Launches Fraud Prevention Solution Reinforcing its commitment towards a secure cashless environment, MasterCard has launched the IQ Series at its Global Risk Leadership Conference held in Dubai on Monday. Designed to harness real-time insights and intelligence, MasterCard IQ Series’ suite of solutions empower card issuers and merchants to authorise transactions with increased accuracy and limit fraudulent activity.

The solution is now available to financial institutions, businesses and merchants across the Middle East and Africa.

“In today’s digital world, consumers are increasingly more aware about safety and convenience, therefore balancing the growing desire for greater

security while maintaining the ease of making payments is important,” the president of Middle East and Africa, MasterCard, Raghu Malhotra was quoted to have said in a statement.

“Our IQ series leverages advanced technology and insights to help deliver consumers a convenient, uninterrupted checkout experience.”

The initial two products developed under the series – Authorisation IQ and Assurance IQ – are aimed at optimising the payment authentication process, leading to fewer declines in legitimate transactions and creating more stable revenues for issuers and merchants.

In addition to hampering quality experience, false fraud assessments prove to be a financial burden, as is evidenced by a research that estimates the value of false transaction declines in the United States of America to be $118 billion per year – thirteen times more than total amount lost annually to actual card fraud ($9 billion), according to Javelin Strategy & Research.

Authorisation IQ provides card issuers with relative behavioural insights on spending, such as total spending on an account compared to others in the country, spending in a particular segment, and frequency of card usage compared over an extended period of time.

StanbicIBTCHighlightsBenefitsofFinancialLiteracy Stanbic IBTC Bank has stressed the importance of financial literacy among youths.

The Chief Executive, Stanbic IBTC Bank, Mr. Yinka Sanni, represented by the Head, Public Sector Group, Stanbic IBTC Bank, Mr. Yusufu Modibbo, emphasised that having a solid foundation in financial knowledge prepares students and young adults for financial independence.

Making a presentation at

Government Girls Secondary School, Maimuna Gwarzo, Tudun Wada, Kaduna State, as part of activities to mark the 2016 Financial Literacy Day recently, Sanni said financial literacy had gone beyond opening and maintaining a savings account at a local bank.

The growing sophistication of society and the attendant need for customised products, services, and solutions means

that customers must be sufficiently informed to enable them make appropriate choices and manage their personal finances successfully, he said.

In addition, as technological improvements have prompted significant changes in the way the financial services market operates, consumers generally must become familiar with the changing roles in the conduct of financial transactions.

Okonkwo

MARKET INDICATORS MONEY AND CREDIT STATISTICS

(MILLION NAIRA)

DECEMBER 2015 Broad Money (M2)

20,029,831.12

-- Narrow Money (M1)

8,571,701.30

---- Currency Outside Banks

1,456,096.85

---- Demand Deposits

7,115,604.46

-- Quasi Money

11,458,129.82

Net Foreign Assets (NFA)

5,653,320.37

Net Domestic Assets(NDA)

14,376,510.75

-- Net Domestic Credit (NDC)

21,612,452.09

---- Credit to Government (Net)

2,893,189.06

---- Memo: Credit to Govt. (Net) less FMA

4,475,224.83

---- Memo: Fed. and Mirror Accounts (FMA)

-1,582,035.78

---- Credit to Private Sector (CPS)

18,719,263.04

--Other Assets Net

-7,235,941.34

Reserve Money (Base Money)

5,812,744.35

--Currency in Circulation

1,857,941.79

--Banks Reserves

3,954,802.55 • Source - CBN

MANAGED FUNDS Initial Price (N) Stanbic Balanced Fund

Buying Price(N)

Selling Price

1,660.29

1,685.29

Stanbic IBTC NEF

1,000.00

11,002.32

11,326.67.11

Stanbic SIBond

20

120.47

120.47

Stanbic IBTC Ethical

1

1.10

1.13

Stanbic IBTC GIF

142.90

143.38

UBA Balanced Fund

1.2563

1.2493

UBA Bond Fund

1.3443

1.3443

UBA Equity Fund

0.8205

0.8074

UBA Money Market Fund

1.1510

1.1510

ARM Aggressive Growth Fund

N13.0544

N13.4480

ARM Discovery Fund

N288.2515

N296.9425

ARM Ethical Fund

N22.5268

N23.2060

ARM Money Market Fund

13.1030 (Yield % ) • Monetary Policy Rate - 13%

OPEC DAILY BASKET PRICE AS AT FRIDAY, 1 APRIL 2016 The price of OPEC basket of thirteen crudes stood at $34.47 a barrel on Friday, compared with $34.33 the previous day, according to OPEC Secretariat calculations. The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

SOURCE: OPEC headquarters, Vienna

43

T H I S D AY • TUESDAY, APRIL 5, 2016

Nigeria’s top 50 stocks based on market fundamentals

30-Mar-16 29-Mar-16

01 Lafarge Africa Plc.

% Change

Capitalisation

EPS

P/E

P/S

Div. Yld

Price/ Book Value

79.00

77.00

2.60%

359,837,242,990.00

5.93

13.33

1.35

3.80%

2.04

1.87

1.87

0.00%

19,635,000,000.00

0.16

11.81

1.18

2.67%

1.00

156.00

156.00

0.00%

56,252,860,872.00

13.51

11.54

0.88

3.85%

3.66

7.08

6.60

7.27%

18,758,023,716.24

0.79

8.91

1.16

7.77%

2.65

700.00

700.00

0.00%

554,859,376,400.00

29.95

23.38

3.67

4.14%

14.60

4.00

4.00

0.00%

6,496,875,000.00

0.34

11.79

0.76

5.00%

1.07

107.00

111.83

-4.32%

848,413,795,016.00

5.37

19.93

3.07

3.36%

4.98

3.99

3.98

0.25%

48,018,129,387.06

0.50

7.98

0.08

18.80%

0.30

09 Okomu Oil Palm Plc.

31.42

31.42

0.00%

29,971,852,200.00

2.25

13.99

3.38

3.18%

1.22

10 P Z Cussons Nigeria Plc.

22.71

23.90

-4.98%

90,169,533,691.95

1.10

20.70

1.25

5.72%

2.14

11 Presco Plc

34.60

34.60

0.00%

34,600,000,000.00

3.28

10.55

3.05

0.29%

1.54

0.50

0.50

0.00%

5,664,866,202.00

4.68

0.11

0.02

0.00%

1.89

310.00

300.00

3.33%

171,526,197,030.00

23.48

13.20

1.52

2.57%

0.61

0.92

0.92

0.00%

12,769,877,297.20

0.85

1.08

0.09

32.61%

0.09

15.00

15.00

0.00%

150,000,000,000.00

2.04

7.37

1.27

0.67%

1.34

1.55

1.63

-4.91%

44,625,148,095.30

0.36

4.34

0.40

5.81%

0.47

146.50

146.50

0.00%

49,739,949,120.50

12.41

11.80

0.21

6.14%

4.03

1.11

1.16

-4.31%

42,980,307,141.75

0.04

29.76

1.05

4.50%

0.49

20.00

20.48

-2.34%

38,417,287,740.00

3.62

5.52

0.48

8.75%

0.55

4.61

4.61

0.00%

7,923,437,476.95

1.81

2.55

0.71

15.18%

0.24

29.25

29.50

-0.85%

110,661,415,312.50

0.32

92.81

1.87

4.27%

13.83

22 United Bank for Africa Plc

3.23

3.96

-18.43%

117,182,870,020.06

1.64

1.96

0.37

18.58%

0.35

23 Unity Bank Plc

0.67

0.70

-4.29%

7,831,856,421.14

0.54

1.23

0.12

0.00%

0.09

24 Wapic Insurance Plc

0.50

0.50

0.00%

6,691,369,124.00

0.10

5.16

0.94

6.00%

0.45

25 Wema Bank Plc.

0.79

0.76

3.95%

31,195,814,838.27

0.06

13.40

0.68

0.00%

0.69

02 Mansard Insurance Plc 03 Mobil Oil Nig Plc. 04 National Salt Co. Nig. Plc 05 Nestle Nigeria Plc. 06 Nigerian Aviation Handling Company Plc 07 Nigerian Brew. Plc. 08 Oando Plc

12 Resort Savings & Loans Plc 13 Seplat Petroleum Dev. Co. Ltd. 14 Skye Bank Plc 15 Stanbic IBTC Holdings Plc 16 Sterling Bank Plc. 17 Total Nigeria Plc. 18 Transnational Corporation Of Nigeria Plc 19 U A C N Plc. 20 UACN Property Development Co. Limited 21 Unilever Nigeria Plc.

26 Zenith Bank Plc

10.96

11.31

-3.09%

344,105,571,894.56

3.37

3.26

0.80

16.42%

0.58

27 Mobil Oil Nig Plc.

159.95

159.95

0.00%

57,677,212,156.90

11.22

12.52

0.62

4.27%

3.42

7.35

7.02

4.70%

19,473,372,078.30

0.97

7.23

1.73

12.86%

3.31

715.00

715.00

0.00%

566,749,220,180.00

24.20

29.04

4.10

3.91%

11.94

4.10

4.00

2.50%

6,659,296,875.00

0.45

8.10

0.72

8.24%

0.97

98.00

98.20

-0.20%

777,051,887,024.00

5.37

17.72

2.73

4.73%

4.42

3.49

3.49

0.00%

42,000,819,940.06

0.50

7.80

0.08

19.23%

0.30

33 Okomu Oil Palm Plc.

30.00

30.00

0.00%

28,617,300,000.00

2.25

13.58

3.28

3.28%

1.18

34 P Z Cussons Nigeria Plc.

24.10

24.10

0.00%

95,688,496,784.50

1.10

19.09

1.15

6.21%

1.98

35 Presco Plc

34.25

34.25

0.00%

34,250,000,000.00

3.28

10.37

2.99

0.29%

1.52

0.50

0.50

0.00%

5,664,866,202.00

4.68

0.11

0.02

0.00%

1.89

350.00

349.52

0.14%

193,658,609,550.00

94.70

2.49

0.96

6.78%

0.63

0.98

1.00

-2.00%

13,602,695,381.80

0.90

1.22

0.11

27.27%

0.11

14.15

14.15

0.00%

141,500,000,000.00

2.65

5.29

1.18

0.71%

1.25

1.63

1.70

-4.12%

46,928,381,545.38

0.26

6.80

0.52

14.04%

0.07

137.75

137.75

0.00%

46,769,133,046.75

12.41

11.48

0.21

6.32%

3.92

1.13

1.13

0.00%

43,754,727,090.25

0.02

51.43

1.18

4.07%

0.51

20.10

20.10

0.00%

38,609,374,178.70

3.62

5.25

0.46

9.21%

0.52

5.10

5.10

0.00%

8,765,624,974.50

1.81

2.96

0.82

13.08%

0.28

27.50

27.50

0.00%

104,040,646,875.00

0.93

32.52

1.93

4.12%

15.86

46 United Bank for Africa Plc

3.11

3.18

-2.20%

112,829,326,861.42

1.44

1.94

0.37

17.86%

0.31

47 Unity Bank Plc

0.63

0.63

0.00%

7,364,282,903.46

0.54

1.22

0.12

0.00%

0.09

48 Wapic Insurance Plc

0.50

0.50

0.00%

6,691,369,124.00

0.03

17.47

1.78

0.00%

0.45

49 Wema Bank Plc.

0.87

0.88

-1.14%

34,354,884,695.31

0.00

24.86

0.63

0.00%

0.85

50 Zenith Bank Plc

12.17

11.94

1.93%

382,095,329,375.62

3.34

3.88

1.12

13.47%

0.71

28 National Salt Co. Nig. Plc 29 Nestle Nigeria Plc. 30 Nigerian Aviation Handling Company Plc 31 Nigerian Brew. Plc. 32 Oando Plc

36 Resort Savings & Loans Plc 37 Seplat Petroleum Dev. Co. Ltd. 38 Skye Bank Plc 39 Stanbic IBTC Holdings Plc 40 Sterling Bank Plc. 41 Total Nigeria Plc. 42 Transnational Corporation Of Nigeria Plc 43 U A C N Plc. 44 UACN Property Development Co. Limited 45 Unilever Nigeria Plc.

TOTAL

8,023,551,903,821.00

TOTAL MARKET CAP

8,649,508,663,299.79

% OF MARKET CAP Annotation - MA* = Simple Moving Average

92.76%

Table 1 Market Statistics Mkt Indicators NSE All Share Index NSE Market Cap (N'Trillion) Thisday BGL 50 Index Thisday BGL 50 Market Cap (N'Trillion)

Open 29-Mar-16

Close 30-Mar-16

Change %

25,277.29 8.69

25,145.28 8.65

-0.52% -0.52%

103.60 8.07

103.05 8.02

-0.54% -0.54%

Table 3 Top 5 Gainers Stock

Open Close Change % 29-Mar-16 30-Mar-16

National Salt Co. Nig. Plc Flour Mills Nig. Plc. Wema Bank Plc. FCMB Group Plc. Seplat Petroleum Dev. Co. Ltd.

6.60 18.54 0.76 0.80 300.00

7.08 19.40 0.79 0.83 310.00

7.27% 4.64% 3.95% 3.75% 3.33%

Table 4 Top 5 Losers Stock

Open Close Change % 29-Mar-16 30-Mar-16

United Bank for Africa Plc FBN Holdings Plc P Z Cussons Nigeria Plc. Sterling Bank Plc. Continental Reinsurance Plc

3.96 3.17 23.90 1.63 0.91

3.23 -18.43% 3.00 -5.36% 22.71 -4.98% 1.55 -4.91% 0.87 -4.40%

Market Index sheds 0.52% due to high sell pressure Market pulse on the Nigerian Stock Exchange (NSE) today - Wednesday, March 30th, 2016, was negative as the market closed red due to profit taking opportunity provided by the 2015 full year earnings announcement by company’s coupled with dividend declaration to the delight of some investors. This was further highlighted by negative performance from the NSE Sub sectors; Banking, Insurance, and Consumer Goods (Save Oil & Gas).

Trading activities increased in volume as 504.21 million shares worth N2.139 billion in 3,374 deals exchanged hands today. This is an increase from the 282.7 million shares worth N2.647 billion in 3,225 deals carried out on Tuesday. Topping in volume terms was Livestock Feeds Plc, Sterling Bank Plc and United Capital Plc, while Guaranty Trust Bank Plc and Nigerian Breweries Plc ended trading as the most active stocks in value terms.

The All Share Index (NSEASI) closed negative with a 0.52% (-132.01) decrease to 25,145.28 from 25,277.29 the previous trading day.

Market Capitalization depreciated in tandem to N8.65 trillion from N8.69 trillion of prior trading day. The Thisday BGL 50 Index followed suit with 0.54% decrease to close at 103.05 from 103.60 the previous trading day, while its market capitalization stood at 8.02 trillion from N8.07 trillion of the previous trading day.

A total number of 15 stocks gained on the bourse today while 23 stocks declined, leaving 139 stocks unchanged. National Salt Co. Nig. Plc emerged the toast of investors as it topped the Thisday BGL 50 Index gainers’ list with a gain of 7.27% to close at N7.08 per share. It was followed Flour Mills Nig. Plc with a gain of 4.64% to close at N19.40 per share. Others on the gainers list include: Wema Bank Plc, FCMB Group Plc and Seplat Petroleum Dev. Co. Ltd, while on the decliners’ list; United Bank for Africa Plc led with a loss of 18.43% to close at N3.23 per share. It was followed by FBN Holdings Plc with a loss of 5.36% to close at N3.00 per share. Others on the losers list include; P Z Cussons Nigeria Plc, Sterling Bank Plc and Continental Reinsurance Plc. REQUIRED DISCLOSURE This report has been prepared by BGL Plc. BGL Plc does and seeks to do business with companies covered in its research reports. As a result, the firm may have a conflict of interest that could affect the objectivity of this report. Investors should use this report as one of many other factors in making their investment decisions.

For more details go to www.thisdaylive.com

44

T H I S D AY • TUESDAY, APRIL 5, 2016

MARKET NEWS

Fidson Healthcare Records N744m Profit, to Pay N75m Dividend Goddy Egene Fidson Healthcare Plc has recorded a profit after tax (PAT) of N744.4 million for the year ended December 31, 2015, showing an increase of 18 per cent above the N631.8 million posted in the 2014. The company had ended the year with lower turnover of N8.2 billion, 16 per cent down from N9.719 billion

in 2014.

The company said the decline in turnover was caused by the challenges faced in sale and distribution of products in the first half of 2015 largely due to the general elections. The upturn in sales witnessed in the second half of the year, it explained, was curtailed by the paucity of foreign exchange for the importation of products and essential

T H E MAIN BOARD

DEALS

MARKET PRICE

raw materials, which severely affected product availability.

Despite the reduced turnover, the company recorded an increase of six per cent in operating profit from N1.45 billion in 2014 to N1.52 billion in 2015.

According to management, the increase is largely as a result of the company’s cost optimisation strategy and a reduction in selling and distribution

N I G E R I A N QUANTITY TRADED

STO C K

VALUE TRADED ( N )

Daily Summary as of 15/03/2016 Printed 15/03/2016 14:36:17.017 Daily Summary (Bonds) No Debt Trading Activity Daily Summary (Equities) Activity Summary on Board EQTY AGRICULTURE Crop Production OKOMU OIL PALM PLC. PRESCO PLC Crop Production Totals Livestock/Animal Specialties LIVESTOCK FEEDS PLC. Livestock/Animal Specialties Totals AGRICULTURE Totals CONGLOMERATES Diversified Industries A.G. LEVENTIS NIGERIA PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC U A C N PLC. Diversified Industries Totals CONGLOMERATES Totals CONSTRUCTION/REAL ESTATE Building Structure/Completion/Other COSTAIN (W A) PLC. Building Structure/Completion/Other Totals Infrastructure/Heavy Construction JULIUS BERGER NIG. PLC. Infrastructure/Heavy Construction Totals Real Estate Development UACN PROPERTY DEVELOPMENT CO. LIMITED Real Estate Development Totals Real Estate Investment Trusts (REITs) UPDC REAL ESTATE INVESTMENT TRUST Real Estate Investment Trusts (REITs) Totals CONSTRUCTION/REAL ESTATE Totals CONSUMER GOODS Beverages--Brewers/Distillers CHAMPION BREW. PLC. GUINNESS NIG PLC INTERNATIONAL BREWERIES PLC. NIGERIAN BREW. PLC. Beverages--Brewers/Distillers Totals Beverages--Non-Alcoholic 7-UP BOTTLING COMP. PLC. Beverages--Non-Alcoholic Totals Food Products DANGOTE SUGAR REFINERY PLC FLOUR MILLS NIG. PLC. HONEYWELL FLOUR MILL PLC NASCON ALLIED INDUSTRIES PLC TIGER BRANDED CONSUMER GOODS PLC UNION DICON SALT PLC. Food Products Totals Food Products--Diversified CADBURY NIGERIA PLC. NESTLE NIGERIA PLC. Food Products--Diversified Totals Household Durables VITAFOAM NIG PLC. Household Durables Totals Personal/Household Products P Z CUSSONS NIGERIA PLC. UNILEVER NIGERIA PLC. Personal/Household Products Totals CONSUMER GOODS Totals FINANCIAL SERVICES Banking ACCESS BANK PLC. DIAMOND BANK PLC ECOBANK TRANSNATIONAL INCORPORATED FIDELITY BANK PLC GUARANTY TRUST BANK PLC. SKYE BANK PLC STERLING BANK PLC. UNITED BANK FOR AFRICA PLC UNION BANK NIG.PLC. UNITY BANK PLC WEMA BANK PLC. Banking Totals Insurance Carriers, Brokers and Services AIICO INSURANCE PLC. CONTINENTAL REINSURANCE PLC CORNERSTONE INSURANCE COMPANY PLC. INTERNATIONAL ENERGY INSURANCE COMPANY PLC LASACO ASSURANCE PLC. AXAMANSARD INSURANCE PLC N.E.M INSURANCE CO (NIG) PLC. SOVEREIGN TRUST INSURANCE PLC STANDARD ALLIANCE INSURANCE PLC. WAPIC INSURANCE PLC Insurance Carriers, Brokers and Services Totals Micro-Finance Banks NPF MICROFINANCE BANK PLC Micro-Finance Banks Totals Mortgage Carriers, Brokers and Services ABBEY MORTGAGE BANK PLC Mortgage Carriers, Brokers and Services Totals Other Financial Institutions AFRICA PRUDENTIAL REGISTRARS PLC CUSTODIAN AND ALLIED PLC FCMB GROUP PLC. ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC Other Financial Institutions Totals FINANCIAL SERVICES Totals HEALTHCARE

expenses. The company’s cost improvement trend, which it embarked on a couple of years ago, is in line with its strategy to drive efficiency in the face of a challenging business environment.

However, there was a 29 per cent increase in finance cost, mainly due to the N2 billion fixed-rate Bond issued in November 2014, from N554

19 5 24

33.07 34.25

116,531 10,700 127,231

3,841,928.14 384,772.00 4,226,700.14

12 12 36

1.22

851,138 851,138 978,369

1,044,028.36 1,044,028.36 5,270,728.50

1 184 28 213 213

0.76 1.14 20.95

240 24,090,695 82,460 24,173,395 24,173,395

180.00 27,641,625.48 1,699,248.06 29,341,053.54 29,341,053.54

1 1

0.50

50,000 50,000

25,000.00 25,000.00

14 14

41.50

92,917 92,917

4,113,798.00 4,113,798.00

9 9

5.10

41,627 41,627

216,923.46 216,923.46

1 1 25

10.00

15 15 184,559

150.00 150.00 4,355,871.46

9 47 10 109 175

3.00 112.79 18.50 93.00

186,330 56,810 38,825 910,268 1,192,233

546,898.50 6,260,194.48 687,308.64 86,403,248.71 93,897,650.33

34 34

154.00

175,349 175,349

26,907,869.08 26,907,869.08

31 35 30 20 189 1 306

6.01 19.29 1.64 8.00 3.04 11.25

226,918 201,814 905,530 151,351 15,627,864 1,282 17,114,759

1,336,423.28 3,895,080.32 1,492,087.65 1,185,227.30 47,491,930.79 13,704.58 55,414,453.92

15 49 64

17.20 690.00

15,705 22,562 38,267

262,529.44 15,371,795.58 15,634,325.02

4 4

4.30

3,949 3,949

16,151.41 16,151.41

22 24 46 629

25.00 28.05

130,500 107,357 237,857 18,762,414

3,100,335.48 3,067,966.81 6,168,302.29 198,038,752.05

230 30 26 135 460 57 366 553 37 17 34 1,945

4.58 1.35 16.26 1.20 16.20 0.99 1.65 3.74 5.71 0.64 0.83

13,454,556 3,849,052 319,603 12,616,743 16,476,426 3,971,581 2,583,895 71,981,533 632,510 615,732 1,508,719 128,010,350

63,541,837.77 5,228,335.10 5,359,956.99 15,258,417.75 273,236,491.23 3,932,566.39 4,263,864.13 269,169,272.92 3,619,529.94 394,068.48 1,256,638.76 645,260,979.46

12 16 1

0.81 0.91 0.50

166,176 7,966,000 450,000

131,718.23 7,260,650.00 225,000.00

1

0.50

598,888

299,444.00

4 5 9 2 1 14 65

0.50 2.14 0.75 0.50 0.50 0.50

1,500,000 63,000 418,199 250,000 1,000 3,383,010 14,796,273

750,000.00 139,386.17 317,306.24 125,000.00 500.00 1,691,505.00 10,940,509.64

7 7

1.07

162,085 162,085

172,360.10 172,360.10

1 1

1.25

250 250

297.50 297.50

160 4 132 1 16 159 472 2,490

3.20 3.81 0.86 0.50 15.30 1.75

7,068,868 177,095 11,539,007 10,000 297,321 15,166,381 34,258,672 177,227,630

23,028,383.26 669,657.55 10,000,439.45 5,000.00 4,489,324.44 26,376,256.46 64,569,061.16 720,943,207.86

million to N715 million.

This impacted the company’s profit before tax, which declined marginally from N870 million to N838 million.

But a reduction in tax, from N238 million to N93 million enhanced the PAT from N631.8 million to N744.4 million in 2015.

The directors have recommended a dividend of N75 million, which is five kobo per share.

Fidson Healthcare said it would continue to focus on extensive brand building as part of its long-term strategy and will be introducing a number of new products into the Nigerian market. “This is a direct result of the move to the company’s new World Health Organisation Good Manufacturing Practice (WHO-GMP), where local production is being ramped up.

E XC H A N G E

MAIN BOARD

DEALS

Pharmaceuticals FIDSON HEALTHCARE PLC 5 GLAXO SMITHKLINE CONSUMER NIG. PLC. 9 MAY & BAKER NIGERIA PLC. 13 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1 Pharmaceuticals Totals 28 HEALTHCARE Totals 28 ICT Processing Systems E-TRANZACT INTERNATIONAL PLC 1 Processing Systems Totals 1 ICT Totals 1 INDUSTRIAL GOODS Building Materials ASHAKA CEM PLC 11 BERGER PAINTS PLC 4 CAP PLC 8 CEMENT CO. OF NORTH.NIG. PLC 12 DN MEYER PLC. 1 LAFARGE AFRICA PLC. 86 Building Materials Totals 122 Electronic and Electrical Products CUTIX PLC. 8 Electronic and Electrical Products Totals 8 Packaging/Containers BETA GLASS CO PLC. 3 Packaging/Containers Totals 3 INDUSTRIAL GOODS Totals 133 NATURAL RESOURCES Chemicals B.O.C. GASES PLC. 1 Chemicals Totals 1 NATURAL RESOURCES Totals 1 OIL AND GAS Integrated Oil and Gas Services OANDO PLC 112 Integrated Oil and Gas Services Totals 112 Petroleum and Petroleum Products Distributors CONOIL PLC 54 ETERNA PLC. 5 FORTE OIL PLC. 11 MOBIL OIL NIG PLC. 3 MRS OIL NIGERIA PLC. 1 TOTAL NIGERIA PLC. 8 Petroleum and Petroleum Products Distributors Totals 82 Exploration and Production SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD 24 Exploration and Production Totals 24 OIL AND GAS Totals 218 SERVICES Apparel Retailers LENNARDS (NIG) PLC. 1 Apparel Retailers Totals 1 Automobile/Auto Part Retailers R T BRISCOE PLC. 1 Automobile/Auto Part Retailers Totals 1 Courier/Freight/Delivery RED STAR EXPRESS PLC 2 TRANS-NATIONWIDE EXPRESS PLC. 3 Courier/Freight/Delivery Totals 5 Hotels/Lodging IKEJA HOTEL PLC 3 TRANSCORP HOTELS PLC 1 Hotels/Lodging Totals 4 Media/Entertainment DAAR COMMUNICATIONS PLC 4 Media/Entertainment Totals 4 Printing/Publishing ACADEMY PRESS PLC. 4 LEARN AFRICA PLC 5 Printing/Publishing Totals 9 Road Transportation ASSOCIATED BUS COMPANY PLC 1 Road Transportation Totals 1 Transport-Related Services AIRLINE SERVICES AND LOGISTICS PLC 1 NIGERIAN AVIATION HANDLING COMPANY PLC 10 Transport-Related Services Totals 11 Support and Logistics C & I LEASING PLC. 1 Support and Logistics Totals 1 SERVICES Totals 37 EQTY Board Totals 3,811 Daily Summary (Equities) Activity Summary on Board PREMIUM FINANCIAL SERVICES Banking ZENITH INTERNATIONAL BANK PLC 425 Banking Totals 425 Other Financial Institutions FBN HOLDINGS PLC 265 Other Financial Institutions Totals 265 FINANCIAL SERVICES Totals 690 INDUSTRIAL GOODS Building Materials No. of Deals DANGOTE CEMENT PLC 60 Building Materials Totals 60 INDUSTRIAL GOODS Totals 60 PREMIUM Board Totals 750 Equity Activity Totals 4,561

MARKET PRICE

QUANTITY TRADED

VALUE TRADED ( N)

2.70 24.98 0.91 0.72

120,557 18,477 507,725 9,000 655,759 655,759

309,846.49 442,241.10 465,638.71 6,750.00 1,224,476.30 1,224,476.30

3.00

60,000 60,000 60,000

180,000.00 180,000.00 180,000.00

24.00 9.42 38.50 8.60 0.70 84.00

30,185 2,394 60,465 3,541,915 1,000 12,060,208 15,696,167

727,173.05 22,264.20 2,243,736.00 30,462,346.00 670.00 1,002,849,990.28 1,036,306,179.53

1.58

72,500 72,500

115,310.00 115,310.00

45.50

17,169 17,169 15,785,836

742,387.56 742,387.56 1,037,163,877.09

3.95

66 66 66

248.16 248.16 248.16

4.82

1,757,769 1,757,769

8,473,384.08 8,473,384.08

20.10 1.80 293.23 171.00 47.18 150.00

342,445 90,000 5,223 357 150 9,000 447,175

6,767,782.21 162,315.00 1,454,971.11 57,994.65 6,724.50 1,338,064.00 9,787,851.47

350.00

202,644 202,644 2,407,588

70,931,581.10 70,931,581.10 89,192,816.65

3.00

15,000 15,000

42,750.00 42,750.00

0.50

10,000 10,000

5,000.00 5,000.00

4.00 1.18

154,695 2,562 157,257

618,780.00 3,151.26 621,931.26

2.47 5.51

97,060 500 97,560

239,747.20 2,620.00 242,367.20

0.50

111,000 111,000

55,500.00 55,500.00

0.57 0.86

65,000 68,575 133,575

37,000.00 58,439.50 95,439.50

0.50

10,000 10,000

5,000.00 5,000.00

2.20 3.91

3,000 211,963 214,963

6,930.00 828,703.07 835,633.07

0.50

11,111 11,111 760,466 240,996,082

5,555.50 5,555.50 1,909,176.53 2,087,620,208.14

12.83

31,187,922 31,187,922

403,549,637.99 403,549,637.99

3.73

14,091,156 14,091,156 45,279,078

53,063,627.44 53,063,627.44 456,613,265.43

Current Price 164.00

Quantity Traded 762,374 762,374 762,374 46,041,452 287,037,534

Value Traded 124,340,537.50 124,340,537.50 124,340,537.50 580,953,802.93 2,668,574,011.07

8.47 2.44 5.92 11.59 20.01

269,790 5 980 5 2,080 272,860 272,860 272,860

2,277,329.70 12.20 5,801.60 57.95 41,620.80 2,324,822.25 2,324,822.25 2,324,822.25

Daily Summary (ETP) Exchange Traded Fund Name LOTUS HALAL EQUITY ETF VETIVA BANKING ETF VETIVA CONSUMER GOODS ETF VETIVA GRIFFIN 30 ETF VETIVA INDUSTRIAL ETF Exchange Traded Fund Totals ETF Board Totals ETP Activity Totals

6 1 1 1 1 10 10 10

TUESDAY APRIL 5, 2016 • T H I S D AY

45

NEWSEXTRA

Resident Doctors Give Govt 21-day Ultimatum over Salaries, Undue Sack of Members Tackle minister over no work, no pay policy Paul Obi inAbuja The National Association of Resident Doctors of Nigeria (NARD) yesterday gave the federal

government a 21-day ultimatum to address the non-payment of salaries to its members, indiscriminate sack of members and poor health care infrastructure or face an industrial

Kaduna Crisis: IG Orders AIG Zone 7 to Relocate Yemi Akinsuyi inAbuja Concerned by the general crime situation in Kaduna State, the Inspector-General of Police (IG), Solomon Arase, has directed the Assistant Inspector General of Police (AIG) in charge Zone 7, Ballah Nasarawa, to relocate to the state for effective supervision of security situation in the state.

While urging the AIG to evolve new intelligence gathering and crime-fighting techniques and methodologies to suit the local challenges, the IG, in a statement signed by the Force spokesperson, Olabisi Kolawole, also directed that police officers who have served in Kaduna State Command for a period of six years and above be transferred out of the command with corresponding replacement.

He also charged the AIG to

devise means of halting the incessant kidnapping as well as other forms of crimes, especially in Jere, Kagarko Local Government Area of the state.

In a related development, the IG has equally directed the Commissioners of Police in Kogi State Command and Federal Capital Territory (FCT) to improve on the surveillance network and high police visibility in their respective commands, especially along Abuja-Lokoja-Okene and Kabba-Owo axis, to check the incessant criminal activities in these areas.

The police boss assured Nigerians of the commitment of the Nigeria Police Force of their safety, noting that the Police in cooperation with other security agencies will continually ensure strategic responses towards eliminating any threat to internal security of the nation.

inaction.

Speaking with journalists at the end of the extraordinary National Executive Council (NEC) meeting in Abuja, NARD President, Dr. Muhammad Askira, said the body would fight the current injustice with all its energy.

The association explained that increasing cases of non-payment of salaries, poor infrastructure and administrative corruption remained the biggest challenge in the health sector.

Askira said: “NARD notes the poor infrastructure in our hospitals which has affected the delivery of adequate health care to our teeming populace. We observe that residency training programme is still not funded and without guiding policies.

“We also note the undue sack of our members from some of the training institutions. Additionally, the delay in effecting the pension deductions of our members was regrettably noted.”

NARD President further observed

that: “Whereas a labourer deserves his wages, we note that some of our members in stated -owned tertiary hospitals have not been paid salaries ranging from three to eight months.”

He listed such states as Osun, Imo, Abia, Ekiti among others, adding that: “We noted with dismay the inappropriate placement and remuneration of our members in states and federal tertiary hospitals across the nation. As such, most hospitals are paying our members only fractions of their salaries notably FETHA Abakiliki; FMC Umuahia; ABUTH Zaria; UNTH Enugu among others, while in UCH Ibadan; UBTH Benin City, LUTH Lagos, FMC Owerri, ISTH Irrua and NOH Dala, November/December 2015 salaries are yet to be paid.

“In line with the above realities, NARD has declared a 21-day ultimatum with effect from yesterday, April 4, 2016, to press home our demands following which industrial harmony in our various hospitals may not be

guaranteed if the existing realities are not resolved.”

The body also called for the reversal of the recent sack carried out by government, including realising and implementing “residency training guidelines with appropriate budgetary backing.”

On the threat by the Minister of Health, Prof. Isaac Adewole, where he gave a warning order that the federal government would henceforth adhere and implement strictly the policy of ‘no work, no pay’, NARD declared that “there is no justification for such a draconic policy, given that government is yet to play its role.

“The minister should tell us the penalty of no work and no pay. If funds have been released, who are those holding it? If they have not been released, are there justification for bringing in the law?

“Monumental malpractice, corruption and discrimination in the polity must stop.

“Anybody who stops us from getting our entitlement is an enemy

of this country. Enough is enough.”

Askira lampooned the idea of withholding doctors’ salaries, arguing that government should also met out punitive measures to itself for failing to pay doctors who already have fulfilled their obligation by working without salaries.

NARD also raised the alarm over the incessant cases of administrative corruption in the health sector, stressing that there was the need to “free it, (ministry of health) from administrative corruption, it has eaten it up.”

The association also called on President Muhammadu Buhari to intervene in the matter, as the negative effect of the crisis would not be a good omen for his government.

Askira stated that many Nigerians voted for Buhari with the hope to salvage challenges such as the one in the health sector, adding that the president must act to save the situation.

Suspension of Silva Stands, Says Bayelsa APC Onyebuchi Ezigbo in Abuja The leadership of the All Progressives Congress (APC), Bayelsa State chapter has dismissed reports of the revocation of the suspension imposed on a former governor, Chief Timipre Silva, for anti party activities.

In a statement issued on yesterday and signed by the state chairman, Chief Timipa Orunimighe and Secretary, Mr. Daniel Marlin, the party said there has been no such pronouncement or declaration, as the NWC has not sat on the matter to take any decision.

“Our attention has been drawn to a story making the rounds that the National Working Committee (NWC) of our party, the APC ,has declared the suspension of Chief Timipre Sylva and 4 others as illegal, null and void.

“To set the records straight, there has been no such pronouncement or declaration, as the NWC has not sat on the matter to take any decision.The suspension of Chief

Sylva therefore stands, pending the outcome of investigations.

“The public is hereby advised to disregard the said fabricated story and look forward to the outcome of investigations on the matter,” he said.

Meanwhile the Minister of State for Agriculture, Senator Heineken Lokpobiri never got his appointment on the platter of financial negotiations as was being insinuated by some leaders of the party in Bayelsa State.

In a statement by his Special Assistant (Media), Donald Ojogo, the minister saidthatlikeotherappointees of Mr President, Senator Lokpobiri was duly considered worthy to be so appointed to his position.

“Itisaclearcaseofmisrepresentation of facts to insinuate that former governor of Bayelsa who is the leader of the APC in Bayelsa State, Chief Timipre Sylva, collected money from the Hon minister before his appointment as minister.

This is an outright fabrication,” he said.

Osiberu for Burial on April 8 Chief Juliana Mogbonjubade Osiberu will be buried at Sagamu on April 8, 2016, after a funeral service at the St. John’s Anglican Church, Ijoku, Sagamu. Mrs. Osiberu the mother of the Elepe of Epe, Sagamu in Ogun State, Oba Adewale Osiberu and his siblings Mrs. Folasade Ogunbiyi (the Iyalode-designate of Remoland) and Mr. and Mrs. Oluremi and Bayo Osiberu.

Osiberu, who died on January 22, 2016 at the age of 96, was married to the late Prince Emmanuel Osiberu of the Olasibo Ruling House of Epe, Sagamu, who had died in 2003, after 56 years of blissful marriage.

She had worked as Midwife

at the Bida General Hospital in 1943 and at the General Hospital Zaria between 1946 and 1948 and between 1968 and 1976, she was a senior medical aide at the University College Hospital (UCH) Ibadan.

Mogbonjubade

HEALTH FOR ALL

Brand Manager Oral B Nigeria,Ms. Aliza Leferink; Representative of the Minister of Health and Chief Dental Officer, Federal Ministry of Health, Dr. Adebimpe Adebiyi; and Consultant Orthodontist, Abuja Teaching Hospital, Dr. Abdulhakim Olatunji, during the commemoration of World Oral Health Day in Abuja...recently

JTF Rescues Kidnapped Soldier in Bayelsa Emmanuel Addeh in Yenagoa

Troops attached to Sector 2, Operation Pulo Shield have rescued a soldier kidnapped by suspected pirates during a search and rescue operation in the creeks around Otakeme Community, Ogbia Local Government Area, Bayelsa State.

The rescued soldier, it was gathered, was kidnapped by suspected criminals along Nembe Creek on March 4, 2016.

A statement by spokesman of the JTF in the Niger Delta, Col. Isa Ado, yesterday evening noted that the soldier had been taken to a medical facility for treatment while effort was ongoing to apprehend the fleeing criminals.

Amedical worker who specialises in treating wounded militants and sea pirates who sustain gun injuries during shootouts with security

operatives in the region, the JTF noted, had also been apprehended.

The troops alleged that the medical worker had been in the business for a long time and was responsible for the treatment of wounded sea pirates and their leader who recently engaged troops of the Joint Force in a shootout along Nembe water ways in Bayelsa State.

“During the encounter, four of the sea pirates were killed while others sustained injuries. Among them is the leader of the gang popularly known as Idiagbon who was taken to the medical facility belonging to the arrested medical worker at Okiama village in Southern Ijaw Local Government Area of Bayelsa State where treatment was administered.

“However, luck ran out on them as troops on getting the information cordoned off the area and arrested

the medical worker while the wounded pirates escaped before the arrival of troops. The arrested suspects are currently undergoing preliminary investigation,” the JTF said.

Also, the troops were said to have carried out an anti-illegal oil bunkering activities around Igbematoru, Ogu-Bolo and Bille axis of Bayelsa and Rivers State where some oil thieves operating with seven wooden boats, two Cotonou boats, four surface tank loaded with suspected stolen products, seven storage tanks each loaded with 30,000 litres were arrested.

“Other items discovered at the sites include pumping machines and underground tank filled with illegally refined AGO. One suspect was arrested during the operation.

Ado added that troops of Sector 1 Operation Pulo Shield deployed

at Afiesere Flow Station in Ughelli North local Government Area of Delta State have also foiled an attempt by some elements to vandalise and cart away valves from the Nigeria Petroleum Development Company (NPDC) wellhead 18/37 at Afiesere in Ughelli North.

“Troops on getting information responded swiftly and recovered two valves supposedly abandoned by fleeing suspects.

The recovered exhibits are in custody of the Joint Force while efforts are in top gear to apprehend the perpetrators,” the taskforce said.

46

TUESDAY APRIL 5, 2016 • T H I S D AY

CRIME&PUNISHMENT

Fulani Herdsmen Kill Five in Benue George Okoh in Makurdi The residents of Tarka Local Government Area of Benue State yesterday woke up to the news that five persons in Tse Tia in Wannune were murdered by Fulani herdsmen grazing in the area.

Due to the incident, heavy pandemonium broke out as youths

blocked the busy Makurdi-Gboko federal highway to protest the murder by suspected Fulani herdsmen.

According to a source, the villagers were murdered in their farms by the marauding herdsmen.

However, a government official attributed the incident to a disagreement resulting from a motor accident.

Addressing the youths, the Secretary to the State Government.

Takema Targema, appealed to them to open up the road.

His appeal was turned down as the youths frowned at his

comments and demanded the recovery of the corpses which are still being held by the herdsmen.

The protesters urged the governor to tender an apology for misleading the public in attributing

the incident to accident.

Confirming the incident, the state Police Public Relations Officer (PPRO), Moses Yamu, said herdsmen in the area alleged that two of their members and five

cows were killed.

“The Fulanis went on a reprisal attack during which a youth leader was killed. The road was cleared at about 1p.m. and normalcy has returned to the area,” Yamu said.

Police Arraign Lawyer, Mechanic over Alleged Theft, Fraud Akinwale Akintunde A 52-year-old legal practitioner, Francis Azuh, has been dragged before an Igbosere Magistrate’s Court for an alleged N10 million fraud.

Azuh was arraigned before Magistrate O. M. Ajayi on a two-count charge of obtaining money by false pretence and stealing preferred against him by the Nigeria Police.

The Police Prosecutor, Corporal Cyriacus Osuji, told the court that the defendant committed the alleged offences between August 2014 and January 2015 at Union Bank, Marina at about 12 noon.

Osuji alleged that Azuh fraudulently obtained the sum of N10 million from one Ken Egbunike on false pretence of helping him to process and secure a title document at the Lagos State Ministry of Land.

The prosecutor further alleged that the defendant stole the said sum from the complainant.

According to the prosecutor, the offences committed are punishable under 285 (5) and 348 of the Criminal Law of Lagos State 2011.

The defendant however pleaded not guilty to the charges and he was immediately granted bail in the sum of N500,000, with two sureties.

Magistrate Ajayi said the

sureties must be gainfully employed and the defendant must tender his call to bar certificate and addresses to be verified by the court.

The case was therefore adjourned till April 28, for mention.

Similarly, the police also arraigned a 45-year-old mechanic, Gbenga Daramola, before another Magistrate’s Court for an alleged N1 million fraud.

The defendant, whose address was not given, was arraigned before Magistrate O. Kusanu on a threecount charge of fraud, obtaining, convertion and stealing.

The prosecutor, Osuji, told the court that the defendant fraudulently obtained the sum of N1 million from one Dr. Leke Pitan on the pretence of repairing his Mercedes Benz S600 with registration number EPE 800 DU. Daramola was also accused of converting the said money to his personal use, and that the defendant intentionally damaged the brain box of the car and the side mirrors valued at N200,000.

According to the prosecutor, the offences committed is punishable under sections 312 (2), 285 and 337 (7) of the criminal law of Lagos State 2011.

The defendant however, pleaded not guilty to the charge against him and was admitted to bail in the sum of N100,000, with two sureties each in like sum.

... Parade 13 Suspected Cultists in Kwara Hammed Shittu in Ilorin

told you the last time, we will always be on top of the situation; No fewer than 13 suspected cultists we have effected the arrest of 13 were yesterday paraded by the of these notorious cultists. We Kwara State police command for shall go all out to arrest more allegedly involving in various cult of these suspects so that we can clashes in Ilorin, the state capital. have peace in the state.”

He said: “The ones arrested Rival cult clashes at the weekend allegedly claimed the have made useful statement and lives of four persons in the Ilorin are undergoing interrogation. We will definitely proceed against metropolis.

The clashes were said to have them.

“They keep on devising means been sparked by a supremacy of attacking their victims. Of recent battle between the two gangs.

Items recovered from the they have been making use of suspects included one cut-to-size motorcycles otherwise known as gun; one locally made pistol and ‘Okada’; they also telephone some of these victims luring them to five cartridges.

Parading the suspect before obscure corners and areas where journalists in Ilorin yesterday, state they attack them. But we have police commissioner, Mr. Sam this information at our disposals.”

Okuala added: “Consequently, Okaula, however said that three persons actually lost their lives we have directed District Police during the street brawls that Officers (DPOs) and Area happened between the two cult Commanders to be on top of gangs at the weekend in Ilorin the situation.

“We are going to carry Okaula said the state police command had earlier declared two out effective checks of these of the arrested suspects wanted. motorcycles; as most of them are According to him: “There being used to commit crime. We were rival cult clashes between are also going to hit them hard; Saturday and Sunday and some we are going to ensure that we people lost their lives. But like I check their activities.”

WHERE IS THE CHANGE

A completely failed portion of the Apapa-Ijora Road in Lagos

Etop Ukutt

Court Remands Seven Alleged Cult Members for Murder Yekini Jimoh in Lokoja Seven members of two rival cult groups in Lokoja, Kogi State have been remanded in Federal Prisons, Koton-Karfe by a Lokoja Chief Magistrate Court over the alleged murder of three persons in a reprisal cult attack.

The Chief Magistrate, Levi Animoku, gave the order in his ruling yesterday in Lokoja following the arraignment of the accused persons for the murder of Omale Usman, Musa Muhammed a.k.a Tipper and Segun Folorunsho a.k.a. Abi. They were charged with criminal conspiracy, membership of unlawful society, attempted culpable homicide and culpable homicide contrary to sections 97(1), 97(b), 229 and 221 of the Penal Code Law. The police First Information Report (FIR) read by the

prosecuting police officer Mr. Tuesday Ganagana, said the accused, who were members of the ‘Arrow Baga’ and ‘Aye confraternity’ committed, the alleged offences at about 11:30 p.m. on March 22.

According to him, the group criminally conspired and armed themselves with deadly weapons including knives, axes and cutlasses and violently stabbed to death one Omale Usman, an alleged member of the ‘Arrow Baga’ over cult rivalry.

They were also alleged to have inflicted machete cuts on one Lekan alias Okoli and Maikudi Isah who were immediately rushed to Federal Medical Centre in Lokoja and admitted for treatment.

The FIR further revealed that members of the offended cult group led by one Nasara Abubakar loaded themselves in

a Mercedes Benz car marked AV 994 MKD and other vehicles and launched a reprisal on members of the other group.

The attack, according to the FIR, led to a free-for-all among the two cult groups which resulted in the death of Musa Muhammed and Segun Folorunsho.

The FIR further revealed that the alleged ‘Aye’ cult group leader, Nasara Abubakar, and his members took the corpses of the slain rival group members away in the car and dumped them in the River Niger.

The Ganagana told the court that investigation into the matter was on-going and asked for adjournment but objected to granting of bail, saying the offence of culpable homicide under Section 341 of CPC was not bailable offence.

But B.T. Alagani and Mu’azu Abass leading three other lawyers

for the accused, applied for their bail, invoking Section 36(5) of the constitution which infers presumption of innocence of an accused until proved otherwise.

According to them, no matter how the FIR is couched, it cannot take the place of evidence and he therefore urged the court to use its discretion to grant the accused persons bail.

Animoku, in his ruling, said: “The offence of culpable homicide is the highest crime known to our laws. It carries death penalty. In as much as the court has discretion to admit persons alleged of crimes to bail, it must be done with caution.

“However, one thing stands out in the FIR that three persons lost their lives while some people are still receiving treatment. The presumption of innocence is not absolute. So, I decline to delve into granting bail to the accused persons.

Ritual: Police Arrest FGGC Cooks James Sowole in Akure

For being caught picking the used sanitary pads of students from waste bins allegedly for ritual purpose, men of the Ondo State Police Command have arrested three cooks, who are employees of the Federal Government Girls’ College, Akure, Ondo State.

The suspects, whose names were not released, were alleged to have taken the used pads of the girls residing in the school to unknown places outside the school premises.

THISDAY gathered that some students, who caught two of the cooks perpetrating the act, reported the matter to their teachers, who in turn alerted

the principal, Mrs. Florence Ejikeme.

A source said the principal on hearing the matter, ordered the immediate suspension of the duo and began investigation on the matter.

Not pleased with the handling of the matter by the school authority, the students attempted to stage a protest but were stopped due to intervention of the chairman of the Parents Teachers Association (PTA) Mr. Akin Ashimolowo.

However, the students were said to have reported the matter to their parents during their visiting day last Saturday.

A parent, who spoke on condition of anonymity said the suspects had confessed to

the crime at the police station .

She alleged that one of the suspects is a wife of a prominent politician in the state and might want to use their ‘connections’ to sweep the matter under the carpets, adding that her child told her that it was not the first time such a thing would be happening in the school and nothing was being done.

The Police Public Relations Officer (PPRO) for the Ondo State Command, Mr. Femi Joseph, who confirmed the incident, said only two of the women were in the police custody while the command had commenced investigation on the matter.

The PPRO, who refused to mention the names of the suspects, however noted that the command had not been able to establish whether or not the suspects used the sanitary pads for ritual purposes as alleged.

Joseph appealed to the students to be calm that the police would get into the root of the matter.

“The matter is still at the realm of allegation, so as I’m speaking with you we, are still investigating,” Joseph said.

However, efforts to reach the Principal of the school, was unsuccessful, as she was said to have travelled out of the town while some of the staff met in the school refused to comment on the matter.

47

T H I S D AY • TUESDAY APRIL 5, 2016

TUESDAYSPORTS

Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com

RIO 2016

Siasia Proposes Colombia, Honduras Friendly Matches Olawale Ajimotokan in Abuja Nigerian U-23 Coach, Samson Siasia, has submitted his programme for the Rio 2016 Olympic football event after his adventure with the Super Eagles failed to qualify Nigeria for next year’s Africa Cup of Nations in Gabon.

The coach, whose fate will be tabled before the expanded meeting of the board of Nigeria Football Federation (NFF) and Sports Minister Solomon Dalung that meet today, told reporters that his Olympic blueprint incorporated proposal for friendly matches to be played with Columbia

and Honduras.

If ratified by NFF, the matches will he played in Brazil, where Nigeria will camp for one month after an extensive training in Europe.

Siasia said he planned to open a training camp in Nigeria with a legion of home-based players as soon as the federation approves his programme.

“We will go into camp with some home-based players the moment we get the green light from the federation. The exercise will allow us assess the boys to determine if some of them can be included in the final 23-man squad for the

Olympic Games. We hope to camp in Europe and spend one month in Brazil, where we will play friendly matches

with Honduras and Colombia,” Siasia stressed.

While he was away as the caretaker coach of the

Eagles, Fatai Amoo was put in charge of the U-23 team which stunned Brazil 1-0 in a friendly match, organised

by the Brazilian Football Confederation (CBF) at the Estadio Kieber Andrade in Caciacica Vittoria.

C H A M P I O N S L E AG U E

Wounded Barca Ready for Rojiblancos Barcelona and Atletico Madrid head into their UEFA Champions League quarter-final first leg game tonight on the back of contrasting fortunes in La Liga’s title race last weekend.

Defending Champions Barca lost 1-2 to bitter rivals Real Madrid in Saturday’s El Clasico, meaning their lead at the summit was cut to six points as a result of second-placed Atletico’s 5-1 win over Real Betis.

Atletico remains title outsiders but will be buoyed by the memory of overcoming Barcelona at the same stage in the Champions League two seasons ago before going on to claim Liga glory.

“For me, this game (Clasico) no longer exists,” said Luis Enrique, whose Barcelona side saw a phenomenal 39-match unbeaten run come to an end against 10-man Madrid.

“There is no pain or anything you can think about it we had many games without defeat, but

defeat also teaches you things.

Opposite number, Diego Simeone, was able to make less taxing substitutions as Betis was put to the sword, and he confirmed Fernando Torres would start against Barca having opened the scoring on Saturday.

Junior Ajayi (left) who fired a brace in Dream Team’s 3-2 defeat of Mali during the Under-23 African Championship in Senegal “Every game we’ve played is one of the top players expected in Brazil against them has been different,” said Simeone, who will assess Saul Niguez after the midfielder was substituted with a knock to his ankle on Saturday.

Conte, who won the Serie A to an end on December 17 after midfielder who made more than “We’re preparing ourselves as English Premiership club, well as we can so the game goes Chelsea, has confirmed the title in each of his three years as a miserable start to the season 400 appearances for Juventus, the way we want it to.” appointment of Italy boss, Juventus boss, is the fifth Italian and what Chelsea Technical winning five league titles and Atletico was unbeaten in six Antonio Conte, as its new to manage Chelsea, following Director, Michael Emenalo, a Champions League.

He won 20 caps for his matches against Barcelona during first-team head coach, starting Gianluca Vialli, Claudio Ranieri, described as “palpable discord” Carlo Ancelotti and Roberto di between the Portuguese and his country and was part of the their glorious 2013-14 campaign from this summer. squad beaten by France in the players. but has lost on its previous three The 46-year-old former Matteo.

Hiddink restored stability final of Euro 2000.

“We are very pleased to have visits to Camp Nou. Juventus boss will begin a After spells coaching Arezzo, three-year contract after his recruited one of the most highly in his second interim spell as Bari, Atalanta and Siena, Conte boss the Blues are 10th with regarded managers in world country takes part in Euro 2016.

TODAY “I am proud to be the coach football,” said club director seven games to go - but Chelsea returned to Juve in 2011, guiding Barca vs Atletico will fail to win a trophy and are them to the Serie A title at the of the national team of my Marina Granovskaia.

Bayern vs Benfica “We are equally pleased to set to miss out on Champions first attempt. country and only a role as However, he was then charged attractive as manager of Chelsea do so before the end of the League football next season.

Former Juventus player with failing to report attempted current season. This aids our could follow that,” he said.

Andrea Pirlo wrote this in his match-fixing during his time as Guus Hiddink, who replaced future planning.”

Conte has the task of autobiography:“Even when we’re coach of Siena. the sacked Jose Mourinho, will Conte pleaded his innocence remain in charge of the Blues rebuilding a side that won the winning, Conte comes in and until the end of the season. The Premier League title last season hurls against the wall (and thus but was banned for 10 months - a sentence that was reduced my little corner). complete the authentic application final of Euro 2016 takes begins before imploding this term.

“Anything he can lay his to a four-month touchline Mourinho’s second spell came forms with duly certified medical on July 10. hands on... almost always full suspension. report before confirmation can Juventus retained their title bottles of water. Fizzy water. be given,”he further said, adding despite Conte’s absence and Very fizzy water.” that all relevant rules governing When Conte speaks “his won their third in succession the organisation of the race will words assault you”, says Pirlo, the following season before be obeyed to the letter. adding: “They crash through his exit in 2014 to take over “The race has already set an the doors of your mind, often as Italy boss. indelible mark as the first to be Despite serving that quite violently, and settle deep labeled by the IAAF in Nigeria touchline ban, the issue remains within you.” with the bronze label certification Conte may have “some an ongoing concern for the we got last year and which has problems” adjusting to English soon-to-be Chelsea manager. been renewed for this year.

Conte faces criminal football but his appointment will “We are however very ambitious prove to be a “good decision”, proceedings after being as we want to go a step higher to says former Manchester City accused of “sporting fraud”, the silver label category. This desire with a trial due to start in manager Roberto Mancini. informed our decision to hire a “It is difficult when a manager Italy this week. world-renowned international road Conte, who has always changes championships,” race organiser in the person of Mancini, now in charge at Inter de n i e d w ro n g d o i n g , i s Walter Abmayr to help with the among 104 defendants.

Milan, told BBC Sport. technical organisation of the race He is likely to be fined “It is important that he knows as well as the management of the the league very well and very if found guilty, according international elite field,”said Esan quickly. Probably he could have to his lawyer Leonardo who added that the organisers some problems at the start of Cammarata, who added have met with all the conditions Conte’s reputation would his job.” for a silver-label grading next Conte is a former Italy b e “seriously damaged”. year,” Esan concluded.

Antonio Conte..confirmed Chelsea new coach

Okpekpe Race Organisers Set Registration Deadline Organisers of the IAAF bronze label Okpekpe International 10km Road Race have set Sunday May 1 and Wednesday May 4,2016 as deadlines for submission of completed registration forms for the fourth edition of the event scheduled to hold on Saturday May 7, 2016 in Okpekpe, Edo State.

Spokesman for the race, Dare Esan, said in a statement at the weekend that international athletes wishing to participate in the race have until May 1 to submit their forms while local athletes must submit their entry papers three days later.

“Entry form and other documents must be received by the deadline dates and entries mailed after the dates will not be accepted,” he said.

Esan also revealed that screening and accreditation of athletes will begin from Thursday, May 5.

“We insist that athletes must

Chelsea Confirms Conte as New Coach

Tuesday April 5, 2016

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MISSILE Fayose to Proponents of Sheriff/Fayose Ticket in 2019

“I will not support him now and I will never support him in 2019” – Governor Ayo Fayose of Ekiti State dismissing suggestions pairing him with Peoples’ Democratic Party (PDP) acting chairman, Modu Sheriff for a joint presidential ticket in 2019.

FEMIFALANA GUEST COLUMNIST

The Legality of Card Reader I n December last year, the Supreme Court upheld all the disputed governorship elections conducted by the Independent National Electoral Commission (INEC) on April 11, 2015 and undertook to adduce reasons for arriving at each of the judgments at a later date. Last month, the court announced the reasons for the decisions. Essentially, the highest court in the land vehemently disagreed with the judgments of the Court of Appeal which had set aside election results which emanated from manual accreditation instead of the card reader machines prescribed by the INEC. For not validating the use of card reader for voter accreditation, some commentators, including lawyers, have criticised the verdicts of the Supreme Court. The criticisms which have greeted the judgments are not unexpected given the controversy which trailed the use of card reader for the elections.

Before subjecting the position of the Supreme Court on voters’ accreditation by the reader machine to a critical analysis, it is germane to review the introduction of the electronic device into the electoral process. Following a successful and comprehensive compilation of biometric registration of Nigerians of voting age in 2011, the INEC decided to improve on voters’ accreditation for all elections. The device was designed to deal with the manipulation of election results through the declaration of bogus votes that have no correlation with the number of registered voters. Thus, with the use of the card reader machines, the number of total votes cast in an election cannot exceed the number of accredited voters. The strident opposition to the use of card reader for voter accreditation by seasoned riggers of elections was borne out of the realisation that it could substantially eliminate the manipulation of election results.

Although the National Assembly had approved funds for the purchase of the card reader machines in the Appropriation Act of 2014, the then ruling party wanted to use its control of the federal legislature to discredit the electronic device.

Hence, the immediate past chairman of the INEC, Professor Attahiru Jega was summoned to the Senate to justify the introduction of the card reader for voters’ accreditation. In taking up the challenge, Professor Jega demonstrated the use of card readers and its capacity to eliminate electoral fraud perpetrated at the accreditation stage of an election. At the end of the exercise, the Senate was compelled to endorse the use of card reader for the 2015 general election.

Thereafter, the Electoral (Amendment) Bill 2015, which sought to legitimise the use of card reader was unanimously passed by both chambers of the National Assembly. The Bill was signed into law by former President Goodluck Jonathan on March 20, 2015.

Prior to the amendment, section 52 of the Electoral Act had prohibited the INEC from the use of any form of electronic voting. But following the amendment of the provision, the INEC has been conferred with the power to determine the procedure to use for any election.

Specifically, Section 52 states that “voting at an election shall be in accordance with the procedure determined by the Independent National Electoral Commission.” With the amendment of the law the INEC was on terra firma when it determined to use the card reader machine for the accreditation of voters for the 2015 general election.

In spite of the initial hiccups encountered by voters with respect to the use of the card reader machines, it is generally agreed on all hands that the technological device enhanced the credibility of the 2015 general election.

Indeed, a number of the election petitions filed by aggrieved candidates were anchored on the gap between the number of voters accredited with the card reader machines and the fake election results declared by some returning officers. At the election petition tribunals, the INEC, through its lawyers, canvassed rather curiously, that the directive on accreditation of voters with the aid of card reader machines was not backed by any law. And that failure to comply with the directive could not vitiate any election conducted by the INEC. Some members of the Election Petition Tribunals and the Justices of the Court of Appeal upheld the submissions of the INEC lawyers.

In their judgments, they ignored the figures of accredited voters obtained via the card reader machines. Others were however convinced that the directive on the use of card reader was backed by the letter and spirit of the Electoral Act. In the case of APC v Kolawole Agbaje Ogbuinya JCA traced the genesis of the card reader when he said “The evolution of the concept of smart card readers is a familiar one. It came to being during the last general election held in March and April, 2015 in Nigeria. On this core, it is a nascent procedure injected into our infant and fledging electoral system to ensure credible and transparent election. Specifically, it is aimed to concretise our fragile process of accreditation – the keystone of any suffrage. The concept, owing to its recent invention by INEC, a non-legislative body, traces its paternity to the manual for election officials, 2015.”

The above view of Ogbuinya J.C.A was adopted in toto by Ejembi Eko J.C.A. in the case of Umana v Emmanuel ... when he stated that “I do not believe that with the fast pace of development globally and the whole world embracing the latest IT technologies, that resistance should be placed to emerging technologies geared towards transparency in elections, by backward thinking interpretations that can only be deleterious to the system. Holding otherwise would be to truncate the great efforts of the 3rd respondent (INEC) in its bid to ensure a credible election and in so doing attempt to plug all loopholes that can be exploited by unscrupulous persons.”

Regrettably, the Supreme Court did not share the progressive view of both Ogbuiya and Eko JJ.C.A on the legal validity of the technological device. Thus, in the case of Edward Okereke v Dave Umahi, the apex court held that the appellant failed woefully to prove the allegation of over voting as he did not tender the voters’ registers along with the card reader reports.

Justice Cletus Nweze who read the leading judgment of the court held that “Indeed, since the Guidelines and Manual, which authorised the use and deployment of the electronic Card Reader Machine, were made in exercise of the powers conferred by the Electoral Act, the said Card Reader cannot, logically, depose or dethrone the Voters’ Register whose judicial roots are, firmly, embedded or entrenched in the selfsame Electoral Act from which it (the Voters’ Register) directly, derives its sustenance and currency....since the National Assembly has not deleted the provision of Section 49 of the Electoral Act (2010), which allows manual accreditation, it would be wrong for any Petitioner to seek to rely

solely on the report of the Card Reader (which is intended as a supplementary measure to the already provided means of accreditation) to prove over-voting.”

From the foregoing, it is undoubtedly clear that the Supreme Court did not declare the card reader illegal. However, it is the view of the apex institution of the judicial system that the card reader is a supplementary measure to manual accreditation. With respect, the appellants did not pray the court to ignore the voters register which were tendered and admitted in evidence at the various election petition tribunals. What was in dispute was the validity of the power of the INEC to replace manual accreditation with voters’ accreditation with the aid of card reader machine. Since manual accreditation was susceptible to manipulation, it was replaced with electronic accreditation by the INEC in exercise of the powers conferred on it by the Electoral Act. In Shinkafi v Yari (unreported suit no 907/2015 of 8th January, 2016) John Okoro J.S.C. rightly noted that “... the function of the card reader machine is to authenticate the owner of a voter’s card and prevent multiple voting by a voter.” Since the INEC has replaced manual accreditation with electronic accreditation, the law does not require a petitioner to tender evidence of manual accreditation along with the report obtained from the card reader machine.

However, in spite of the clear position of the

INEC on the mandatory use of card readers for the governorship and state legislative elections, it did not adduce any argument in favour of the use of electronic device at the various election petition tribunals and the appellate courts. It is particularly intriguing that the INEC did not defend the card reader by relying on section 52 of the Electoral (Amendment) Act 2015. If the attention of the Justices of the Supreme Court had been drawn to the 2015 amendment of the Electoral Act, they could not have held that accreditation by the card reader machine was supplementary to manual accreditation.

In other words, the judgments of the Supreme Court would have legitimised the use of card reader for voter accreditation. No doubt, the legitimation of the card reader would have had dire consequences on the results of the disputed governorship elections.

Finally, in view of the clear provisions of the Electoral (Amendment) Act 2015, it is indubitably clear that the INEC acted within the ambit of the law when it issued the directive for the use of card reader machine for voters’ accreditation during the last general election.

To that extent, the suggestion that the law be further amended to legalise the use of card reader is totally uncalled for.

•Mr Falana, SAN, is a member of THISDAY Editorial Board

THE OLD SHERIFF IS BACK IN TOWN The Guardian, Wednesday, 18 April, 1984

IN THAT 1984 GUARDIAN CARTOON, THIEVING SECOND REPUBLIC POLITICIANS DIDN’T RECKON ON THE MILITARY COMING BACK IN THE SHAPE OF BUHARI!

YEAH, JUST AS THEIR THIEVING SUCCESSORS IN THE FOURTH REPUBLIC DIDN’T IN THEIR WILDEST DREAMS EXPECT THE SAME BUHARI TO COME BACK AGAIN! 04-04-16

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