Tuesday 12th April 2016

Oil Hits Four-month High on Commodities Rally World Bank lowers 2016 growth projections for Nigeria, others

Ejiofor Alike and Obinna Chima with agency report Brent crude prices rose to a four-month high yesterday as

a rally in wider commodities markets encouraged buying ahead of a meeting of oil producers in Doha, the capital of Qatar, next Sunday.

The meeting is aimed at freezing current output levels.

According to Reuters and the News Agency of Nigeria

(NAN), Brent crude futures, the global benchmark, were up 92 cents at $42.86 a barrel, having touched a session high of $43.06, the highest

level since December 7.

The gains build on last week’s rally, when crude rose 6 per cent in one session on the back of a

drop in the rig count of U.S. drillers to its lowest since November 2009.

Continued on page 9

Kaduna Govt: 347 Corpses Were Buried in a Mass Grave After Shiite, Army Clash… Page 10 Tuesday 12 April, 2016 Vol 21. No 7656. Price: N150

www.thisdaylive.com TR

UT H

& RE A S O

N

Calabar-Lagos Rail Project that Was Never Listed, Triggers A Spat Presidency: Buhari did not reject budget

Iyobosa Uwugiaren, Omololu Ogunmade, Damilola Oyedele in Abuja ACT 1, SCENE 1 On December 22, 2015, President Muhammadu Buhari laid the much awaited 2016 Appropriation Bill before a joint session of the National

Assembly. The record N6.07 trillion budget, the first by the Buhari administration, was highly anticipated with millions of Nigerians hoping that it would provide the elixir to the floundering economy.

Continued on page 6

Despite Pressure to Shelve Strike, NLC Insists on Protest To meet TUC to select date

Paul Obi in Abuja Despite the pressure mounted by the federal government to make the Nigerian Labour Congress (NLC) shelve its planned one-day nationwide strike, the NLC yesterday insisted that the strike would go ahead notwithstanding the plea by various interest groups calling for its suspension.

The effort to persuade the NLC to shelve the strike has been spearheaded by

the Minister of Labour and Employment, Senator Chris Ngige, among other top government functionaries.

But in a communiqué issued in Abuja and signed by the NLC President, Mr. Ayuba Wabba, and Secretary, Dr Peter Ozo-Eson, the labour union said that the prevailing circumstances in the country and the scorched-earth economic policies of the government

warrant the national strike.

Continued on page 9

Chairman of Zenith Bank Plc, Mr. Jim Ovia (left) and the French Ambassador to Nigeria, Mr. Denys Gauer, when the latter paid a courtesy visit to Ovia at his office in Victoria Island, Lagos… recently

2

TUESDAY APRIL 12, 2016 T H I S D AY

T H I S D AY TUESDAY APRIL 12, 2016

3

4

TUESDAY APRIL 12, 2016 T H I S D AY

T H I S D AY TUESDAY APRIL 12, 2016

5

6

TUESDAY, April 12, 2016 • T H I S D AY

PAGE SIX CALABAR-LAGOS RAIL PROJECT THAT WAS NEVER LISTED, TRIGGERS A SPAT Predicated on an oil benchmark of $38 per barrel, oil production of 2.2 million barrels of crude oil per day, and exchange rate of N197 to the dollar, the budget included revenue estimates of 3.86 trillion and a deficit of 2.22 trillion which the executive arm of government proposed would be funded by a combination of domestic and foreign borrowings of N1.84 trillion.

Hinging the budget on increased spending on critical infrastructure projects, the executive increased the capital expenditure portion of the budget from N557 billion in the 2015 budget to N1.8 trillion in the 2016 budget.

Effectively, for the first time in years, capital expenditure was to represent 30 per cent of the total budget.

But despite the emphasis on infrastructure, one project that was never included by the executive was the Calabar-Lagos railway project.

ACT 1, SCENE 2 Following Buhari’s presentation of the budget, the first red flag on the 2016 Appropriation Bill was raised a few weeks later by the Senate. It declared that the bill had disappeared into thin air.

About 48 hours after the alarm raised over the “disappearance” of the budget, Buhari was to write to the National Assembly admitting that the budget had been withdrawn and an amended version presented to the National Assembly for proper legislative work to start on the budget.

Again, the amended version did not have a line item for the Calabar-Lagos railway project.

ACT 2, SCENE 1 But work on the amended budget that was submitted by the executive was to run into another hitch. At this juncture it was discovered that the 2016 Appropriation Bill was riddled with embarrassing errors, omissions and padding of the kind never witnessed before in Nigeria.

Given the apparent errors and discrepancies in the budget estimates, the National Assembly gave itself more time to work with the executive arm of government to clean up the budget in order to pass one that could stand the test of time and was implementable.

ACT 2, SCENE 2 It was at this stage that the Minister of Transportation, Mr. Chibuike Amaechi decided to include the Calabar-Lagos rail project by presenting a supplementary budget from his ministry to the Senate Committee on Land Transport.

But in his “exuberance” to include this all-important project to the Senate committee, Amaechi, it was discovered, did so without the express approval of President Buhari.

ACT 2, SCENE 3 Acting in collusion with the Senate Committee of Land Transport led by Senator Gbenga Ashafa, and possibly its counterpart committee in the House of Representatives, N60 billion was set aside for the Calabar-Lagos rail project, and the proposal sent to the two Committees of Appropriation of the National Assembly.

But the two committees were not prepared to be parties to the inclusion of a supplementary budget that was never included in both the original and amended budgets presented by Buhari to the National Assembly.

Acting in accordance with the powers vested in the National Assembly by the 1999 Constitution on the power of appropriation, the two committees left out the Calabar-Lagos rail project from the 2016 budget, as was the intendment of the executive arm of government.

FINAL ACT It was with this knowledge that the Senate yesterday discarded all vestiges of civility, warning the presidency to put paid to its “hide and seek game” with respect to the Appropriation Bill and stop engaging in what it described

as “surreptitious campaigns of calumny against the Senate in order to cover up its shortcomings”.

But sensing that it may have worn thin the patience of the National Assembly, the presidency was quick to clarify that Buhari did not reject the budget, stating that reports in this regard were unfounded.

The Senate, in a statement by Senator Aliyu Sabi Abdullahi, Chairman, Senate Committee on Media and Public Affairs, said the executive lacked the moral high ground to sustain its persistent attacks against the National Assembly in view of the flaws which characterised the 2016 budget.

According to him, the National Assembly had to bend over backwards to produce a meaningful document out of the excessively flawed and chaotic versions of the budget proposals submitted to it by the president.

The Senate also accused the presidency of gross incompetence in the preparation of the budget, adding that the document was highly embarrassing and characterised by errors, omissions and inconsistencies, which it said the National Assembly helped it to clean up.

The parliament took exception to what it described as the unwarranted attitude of the presidency to set the public against the National Assembly, stressing that the power of appropriation rests with it.

The Senate also took a swipe at the Minister of Transportation, Mr. Chibuike Amaechi, whom it accused of orchestrating the latest allegations with respect to the alleged removal of the Calabar-Lagos rail project from the budget.

It described the minister’s antics as reckless, uncalled for and dangerously divisive and asked him to tender an unreserved apology for the allegations or resign.

The statement read: “While the executive is mandated to prepare and lay before the National Assembly a proposed budget detailing projects to be executed, it should be made clear that the responsibility and power of appropriation lies with the National Assembly.

“If the presidency expects us to return the budget proposal to them without any adjustments, then some people must be living in a different era and probably have not come to terms with democracy.

“We make bold to say, however, that the said Lagos-Calabar rail project was not included in the budget proposal presented to the National Assembly

by President Muhammadu Buhari and we challenge anyone who has any evidence to the contrary to present such to Nigerians.

“Since the beginning of the 2016 budget process, it is clear that the National Assembly has suffered all manners of falsehood, deliberate distortion of facts, and outright blackmail deliberately aimed at poisoning the minds of the people against the institution of the National Assembly.

“We have endured this with equanimity in the overall interest of Nigerians. Even when the original submission was surreptitiously swapped and we ended up having two versions of the budget, which was almost incomprehensible and heavily padded in a manner that betrays lack of coordination and gross incompetence, we refused to play to the gallery and instead helped the executive to manage the hugely embarrassing situation it had brought upon itself. But enough is enough.

“This latest antics of this particular Minister of Transportation, Rotimi Amaechi, is reckless, uncalled for and dangerously divisive. Apart from setting the people of the southern part of the country against their northern compatriots, it potentially sets the people against their lawmakers from the concerned constituencies and sets the lawmakers against themselves.

“This manner of reprehensible

mischief has no place in a democracy.

We hereby demand from Mr. Amaechi a publicly tendered apology if he is not able to show evidence that the Lagos-Calabar road project was included in the budget. Otherwise, he should resign forthwith.

“Finally, by the provisions of Section 81(4)(a) and (b) of the constitution, the president is allowed to sign the budget and kick-start the implementation of the other areas that constitute over 90 percent of the budget where there is agreement between both arms, even as we engage ourselves to resolve the contentious areas, if there were any.

“We therefore maintain that even these contrived discrepancy is not sufficient excuse not to sign the budget into law.

“We therefore urge President Buhari to sign the 2016 budget without any further delay. For every additional day that the president withholds his assent from the bill, the hardship in the land, which is already becoming intolerable for the masses of our people gets even more complicated.

“Certainly, as primary representatives of the people we shall not vacate our responsibility and watch the people continue to suffer unduly.”

But before the Senate came out swinging on all cylinders against the executive, it had earlier yesterday stoutly rejected allegations that it expunged the Calabar-Lagos rail project from the budget, insisting that the project was never included in the Appropriation Bill in the first instance.

Briefing the press, the House of Representatives insisted that the rail project in question was not included in the budget estimates presented to the National Assembly by Buhari.

The Chairman of the House Committee on Media and Public Affairs, Hon. Abdulrazak Namdas explained that the lawmakers could not have worked on any document brought before them for appropriation by any person other than the president.

He said this in allusion to reports that Amaechi presented the Calabar-Lagos rail project budget to the lawmakers during the budget defence process and asked that it be accommodated.

He however clarified that the president could send a list of items he wants in the budget, even without its assent, to the lawmakers.

“The principal officers would look at it,” Namdas said.

Flanked by the media aides to the Speaker of the House of Representatives, Mr. Turaki Hassan and Mr. Iliyasu Habila, Namdas, who also displayed copies of the budget of the Ministry of Transportation, said report that the project was removed and the funding allocated to the Calabar-Lagos rail project appropriated for the completion of the Lagos-Kano rail project was mischievous and intended to set the southern and northern parts of the country against each other.

“Let’s be clear, we do not receive budgets from ministers... it is on record that some people lost their jobs as a result the budget, the executive itself admitted some bureaucrats padded the budget,” he said.

“We are ready to work with the president, and so far there is nothing to suggest that Mr. President has refused to sign, but when it comes, we would take care of it.”

Also speaking to THISDAY on the issue, the Chairman of the Committee on Public Petitions, Hon. Nkem Abonta (Abia PDP) stressed that the National Assembly has the constitutional right to remove or add to budget estimates presented to it by the executive.

“The minister has said he brought it (Calabar-Lagos rail project) during the budget defence, meaning it was not part of the estimates submitted.

If we had included it, would it not amount to padding?” he asked.

Abonta advised the president to assent to the budget, and then send a supplementary budget for areas he

feels were not properly captured in the 2016 Appropriation Bill.

Abonta also wondered why the National Assembly was being fingered in the controversy surrounding the removal of the rail project.

“They said we removed it, the minister said he brought it, so are there two budgets?” Abonta asked, noting that the president’s first outing on budget had shown that he cannot rely on civil servants.

“We are a budget writing legislature, the moment you submit or lay the budget before the National Assembly, it becomes the document of the National Assembly and it has the right to rewrite, remove, adjust or add to the document according to the wishes and aspirations of the people,” Abonta said.

The Chairman of the House Committee on Appropriation, Hon. Jibrin Abdulmumim in a series of tweets on Sunday had also insisted that the project was not included in the 2016 budget laid before the legislature by the president.

Also yesterday, the Senate accused the executive of crying wolf where there was none, insisting that N80 billion allegedly allocated to Lagos-Calabar rail project was not contained in the 2016 budget.

Similarly, during his briefing, Senator Abdullahi said the document was there for everyone to verify, adding that the budget was passed in the overall interest of Nigeria.

He said: “At the end of the day, we came up with a project in the overall interest of Nigeria. If anything, I want to believe that the National Assembly has been magnanimous and we have been patriotic in the way we approached and handled the 2016 budget.

“You will recall like we said that I have not seen the reactions, we have not seen the details of whatever their comments are on the budget.

“Whatever it is, the Lagos-Calabar rail was not even included in the budget that was submitted to us. It was not there, so how come suddenly we were the ones being asked about the project. I think these are questions that we should ask and I think the Minister of Transportation should address them.

“The document (the budget) is a public document, as all of you have access to it. You can also verify this and like the Senate and House Committee Chairmen on Appropriation said, you should go and verify the document that was with us and bring it out and show us where it was included in the budget.

“I think to my mind, budget is an instrument that should be dear to all Nigerians and it was our duty to ensure that fairness is achieved; that is why the constitution makes it clear that in doing that, we must ensure we must show fairness to every segment of this country.”

However, more information was brought to light yesterday on what transpired with respect to the CalabarLagos rail project, when a senior official in the presidency disclosed that its omission from the budget was caused by the Budget Office.

This came as the Chairman on the Senate Committee on Land Transport, Senator Gbenga Ashafa confirmed yesterday in a press statement that Amaechi did inform the committee of the omission of the Lagos-Calabar rail project and sent a supplementary copy of the ministry’s budget to the committee, which contained the said project.

Speaking with THISDAY in Abuja on Monday, the presidency source, who pleaded anonymity, said when the error committed by the Budget Office was discovered, Ameachi quickly forwarded a memo to the Budget Office, drawing its attention to the error and it was quickly corrected.

The source added: “Minister Ameachi did not stop there, he followed it up with several meetings with Senator

Gbenga Ashafa and during the defence of the budget, Amaechi informed the committee of the omission of the LagosCalabar rail modernisation project and indeed sent a supplementary copy of the ministry’s budget to the committee, which contained the said project.

“I can tell you that it was the House of Representatives that removed it for obvious reasons. The ministry was harassed by the House members during the defence of the budget, demanding for one thing or the other. If Hon. Abdulmumim said the Lagos-Calabar Rail project was not in the original budget, let him also show you where N92 billion was provided for the Lagos-Kano rail project in the original budget that he is making reference to?

“On the rehabilitation of some airports, the Ministry of Transportation did make provision for them in the budget we submitted, and the National Assembly on its own appropriated N4 billion to this. They are just lying.

And we challenged them to produce the report the Senate Committee on Land Transport sent to the Ministry of Transportation.”

Senator Ashafa also confirmed that Amaechi did inform the committee of the omission of the Lagos-Calabar rail project and the omission was subsequently corrected.

According to the senator, “I have carefully followed the news making the rounds in relation to the budget presented to the National Assembly and what was defended by the Ministry of Transportation before the Senate Committee on Land Transport which I have the privilege of chairing.

“The focal point of controversy seems to be the Lagos-Calabar railway modernisation project and the completion of the Idu-Kaduna rail line.

“I confirm that the Lagos-Calabar rail line was not in the original document that was presented to the National Assembly by the executive.

“However, subsequently, during the budget defence session before the Senate Committee on Land Transport, the Minister for Transportation, Rotimi Amaechi, did inform the committee of the omission of the Lagos-Calabar rail project and indeed sent a supplementary copy of the ministry’s budget to the committee which contained the said project.”

The senator added that the minister had noted during the defence of the budget that the amount needed for the counterpart funding for both the Lagos to Kano and Lagos to Calabar rail modernisation projects was in the sum of N120 billion, being N60 billion per project.

Senator Ashafa said while the committee did not completely agree with all the changes made in the subsequent document, being fully aware of the critical importance of the rail sector to the development of the country, members of the Senate Committee on Land Transport keyed into the laudable (Lagos-Calabar rail modernisation) project and found ways of appropriating funds for the project without exceeding the envelope provided for the ministry.

“In so doing, the committee observed that the Lagos-Kano rail rehabilitation project had been allocated the sum of N52 billion as against the sum of N60 billion, which the minister requested as counterpart funding while no allocation whatsoever was made for the Lagos-Calabar rail line,” the Senator further stated.

“Hence, the sum of N54 billion that was discovered by the Senate Committee on Land Transport to be floating in the budget of the Ministry of Transportation as presented by the executive was injected into augmenting the funds needed for counterpart funding of both projects (Lagos-Kano and Lagos-Calabar Rail modernisation), as at the time the committee defended its report before the Senate Committee on Appropriation,” he said.

He stated that the Lagos-Calabar rail

modernisation project was therefore included in the Senate Committee on Land Transport’s recommendation to the Senate Committee on Appropriation.

On the Idu-Kaduna rail completion project, Senator Ashafa said his committee did not alter what was provided in the budget as sent by the executive, being approximately N18 billion, adding that he was equally surprised to read in newspapers that the amount allocated to the said project was reduced by N8 billion.

He said while he would have preferred to wait till next Tuesday, when the National Assembly reconvenes in order to have the benefit of viewing the details of the budget that was conveyed to the executive as passed, he was compelled to place the facts in a proper perspective as it relates to the activities of his committee.

“Without prejudice to the considerations and powers of the Senate Committee on Appropriation with regard to the appropriation process, the foregoing is the true reflection of what transpired at the committee level with respect to the Land Transport sector with the Ministry of Transport,” he further stated.

But as more light was thrown on the 2016 budget, the Senior Special Assistant to the President on National Assembly Matters (Senate), Senator Ita Enang, stated yesterday that Buhari did not reject the budget as erroneously reported.

Enang told newsmen in Abuja that media reports alleging that the budget had been rejected were untrue, explaining that what Buhari did before travelling to China was to send the budget to the ministries, departments and agencies (MDAs) of government in order to get feedback that would inform his assent.

“The president received the budget and convened an emergency Federal Executive Council meeting.

“He gave each of the ministers, departments and agencies the opportunity to look at the details as submitted by the National Assembly.

“This is to enable him get opinion on the state of the budget to enable him take a decision.

“The exercise was conducted on Friday and it is ongoing by the different ministers and agencies,” he clarified.

Enang said Buhari was not in violation of the constitutional timeframe within which he is required to assent to the budget, adding that it should not be assumed that the budget had been rejected.

“The constitutional timeframe for Mr. President’s receipt and consideration of the budget began on Friday last week. The question has not arisen as to returning it or otherwise.

“But I want to say the best way we as liaison officers are handling this matter is to speak less and work more, creating interactions.

“So we will have more interactions, consultations and engagements. There is nothing for the country to worry about, because we do not want to have a crisis between the executive and the legislature, and it would not arise; this is one government,” he said.

TOP GAINERS NGN NGN CAVERTON 0.07 1.51 AXAMANSARD 0.09 1.95 NASCON 0.35 7.65 ETRANZACT 0.16 3.55 UNITEDCAP 0.03 0.069 TOP LOSERS NGN NGN NGC 0.41 3.81 UNIONBANK 0.54 5.06 FIDSONHEALTHCARE 0.22 2.12 IKEJHOTELS 0.22 2.13 UBA 0.16 3.08 HPE Nestle Nig Plc ₦675.00 Volume: 225.286 million shares Value: N750 billion Deals: 3,058 As at yesterday 11/4/16 See details on Page 44

% 4.8 4.8 4.7 4.7 4.5 % 9.7 9.6 9.4 9.3 4.9

T H I S D AY TUESDAY APRIL 12, 2016

7

8

TUESDAY APRIL 12, 2016 T H I S D AY

9

T H I S D AY • TUESDAY, APRIL 12, 2016

PAGE NINE

Missing Chibok Schoolgirl Calls Her Father When Dauda Yama retrieved his mobile phone from a neighbour’s house in January this year, he noticed a missed call from his daughter Saratu who had been missing for almost two years.

The last time he spoke with Saratu was on April 14, 2014, when she rang to say men from the Islamist group Boko Haram had loaded her and her classmates from the Government Girls’ Secondary School in Chibok in Borno State onto trucks.

Attempts to reach her again failed and two years on, 219 girls abducted that night remain missing, despite a global campaign #bringbackourgirls involving celebrities and U.S. first lady Michelle Obama calling for them to be found.

The students are among an estimated 2,000 girls and boys abducted by the Boko Haram since the start of 2014, with many of those abducted used as sex slaves, fighters and even suicide bombers, according to an Amnesty International (AI) report.

But when Yama returned the missed call that evening, a man answered. Yama hung up and rushed to the home of Yakubu Nkeki, chairman of the Association of Parents of the

Abducted Girls from Chibok.

“He asked me what he should do,” Nkeki, 58, a schoolteacher, whose 17-year-old adopted daughter Maimuna Yakubu Usman is among those missing, told the Thomson Reuters Foundation.

Nkeki took the phone and redialled the number that was again answered by a man who said the phone belonged to his wife.

Reporting the matter to any of the armed personnel around Chibok was out of the question, so instead they informed a campaigner with the Bring Back Our Girls group, which advocates the return of the missing girls “now and alive”.

“We don’t know who to trust,” said Nkeki who has received physical threats for his efforts to keep the abduction of the Chibok girls in the headlines and the government’s sights with the abduction becoming a political issue for Nigerian leaders.

Providing counsel to parents of the missing Chibok girls is part of Nkeki’s role as chairman of the association. He also checks up on the parents to see if they need help at all.

“I check if they have food items or if someone is seriously sick,” he said. “If there is any

Abducted Chibok schoolgirls issue, I call the committee members.”

Some months ago, for example, the association received a donation of 128 bags of corn from a missionary group. The association decided to give three bags to one parent to sell and raise money for medicine for his son who was bitten by a snake.

Nkeki said he had not intended to become a leader for the parents but was catapulted into the role when he tried to rally families into action after the abduction.

Under his lead, and frustrated

by a lack of official action, the parents formed a team to search the Sambisa forest for the missing girls the day after the abduction, finding scarves and other items along a trail until heavy rain forced them back.

Nkeki then organised a meeting of parents in his village of Mbalala, calling for a peaceful demonstration and seeking media coverage to get the word out, with his initiatives prompting the parents to appoint him as their leader.

It was Nkeki’s efforts that ascertained exactly how many

girls were missing after the school said the Boko Haram had razed all records. He cycled from village to village for two weeks with pen and paper to build a register.

“I got the names of the girls, their pictures. I asked for proof. They showed me their daughters’ books so that I could get the exact name the girl used in the secondary school,” he said.

His census revealed the number of girls abducted was 276 but 57 were able to escape as the trucks took off and came home.

But the attempts to rally parents were not always welcome.

Nkeki said some parents refused to have anything to do with the parents association and he has been harassed and arrested by armed forces personnel, displeased with his media appearances and efforts to keep the missing Chibok girls in the news.

Former Nigerian President Goodluck Jonathan was criticised for his slow reaction to the Chibok kidnappings, which was seen by some as indicative of his response to Boko Haram, which at its strongest held large swathes of northeastern Nigeria.

President Muhammadu Buhari, who defeated Jonathan

in an election last year, ordered a new investigation into the abductions in January.

“My family is afraid for me.

Even my uncle’s wife whose daughter was abducted, the one I adopted, said to me that she does not want to lose her daughter and then also lose me,” said Nkeki.

But despite Nkeki’s efforts, his daughter and the other girls are still missing, with the parents desperate for any leads that could help locate their daughters.

Hopes were raised earlier this month when a suspected female suicide bomber who claimed to be one of the missing Chibok girls was arrested in northern Cameroun.

But official investigations revealed the 12-year-old girl was not from Chibok but abducted from Bama in northeastern Nigeria by Boko Haram a year ago.

Nkeki and Yama dialled Saratu’s number a few more times after the initial success but the line repeatedly went dead. However, Nkeki says it rang when Yama tried again in February.

“The man warned him never to call his wife’s number again.

He said if he is not careful, he will lose his life,” he said.

Pirates Abduct Six Turkish Crew off Nigeria Pirates off the coast of Nigeria have attacked a Turkish cargo ship, kidnapping six crew members in a region which has seen increasing piracy in recent years, a Turkish maritime news

agency reported yesterday.

The Deniz News Agency said pirates abducted the ship’s mechanical engineer, electrician, navigator and three captains. The ship is owned by Kaptanogul

Shipping, which told the news agency that both the kidnapped crew and those who remained on the ship, were “in good health”.

It was unclear how many crew members were aboard the

M/T Puli, which was carrying chemicals, when it was attacked.

Company officials said the pirates have not contacted them.

At the end of 2015 pirates kidnapped crew members from

Lithuania, Ukraine and Poland in the area which is increasingly a piracy hotspot.

Meanwhile incidents of piracy off the coast of Somalia in eastern Africa — once a global hub for

pirates — have significantly fallen in the past three years due in large part to patrols by international warships and armed guards aboard commercial vessels.

Executive Committee (NEC), who pleaded for anonymity, said it is after the conclusion of a meeting of NEC and consultation with the TUC that the actual date would be announced.

The source said some members of NLC were still uncertain of the strike, adding that persuading them to join the strike would be “the most critical aspect, as some states will not find it easy to join the

strike,” the source disclosed.

All efforts to speak with the TUC President, Bobboi Kaigama, were not fruitful as he was not available for comment.

NLC also bemoaned the rise of outsourcing in the country, stating that “the increasing adoption of the neo-liberal policy of outsourcing by many companies and even agencies of government remains high”.

“CWC calls on its affiliate unions to spare no effort at

unionising workers engaged by outsourcing agencies in order to ensure fair pay and good conditions of service.

“CWC also calls on the Federal Ministry of Labour and Employment which serves as the licensing agency of outsourcing firms to transparently develop criteria for licensing, monitoring and sanctioning the outsourcing firms in conjunction with the tripartite partners,” NLC submitted.

“Overall, growth is projected to pick up in 2017-2018 to 4.5 per cent,” the World Bank said in a statement.

According to Reuters, Nigeria and Angola are the continent’s top two crude oil exporters whose economies have suffered as a result of sharply lower crude prices, while South Africa was also hit by lower platinum, iron ore and coal prices.

“There were some bright spots where growth continued to be robust such as in Cote d’Ivoire, which saw a favourable policy environment and rising investment, as well as oil importers such as Kenya, Rwanda and Tanzania,” the World Bank said In addition, the multilateral institution said it expects its non-market rate lending to top $43 billion in the current fiscal year as developing countries face

economic headwinds, bringing its total for the past four years to more than $150 billion.

The multilateral lender said its International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) divisions were on pace to exceed the combined $42.4 billion reached in the fiscal year ended July 1, 2015.

IBRD lending in fiscal 2016 will exceed $25 billion, compared with $23.5 billion in fiscal 2015.

A decade ago, IBRD lent about $14 billion, but peaked at $44 billion in fiscal 2010 as the financial crisis stoked demand from middle-income countries.

“We are in a global economy where growth is expected to remain weak, so it is critically important that the World Bank plays its traditional role of helping developing countries accelerate

growth,” World Bank Group President Jim Yong Kim said.

In February, the World Bank signed a deal with Peru for $2.5 billion in credit lines to help the Andean copper and gold exporter cope with lower global commodity prices and budget pressures. The bank is also in talks with oil exporter Nigeria on loans tied to policy reforms.

Kim said World Bank lending was “highly complementary” to the International Monetary Fund’s role as the main international crisis lender.

“The use of these types of loans are important because the Bank is basically signalling to the financial markets that a country’s actions are technically solid, the country will follow through on these commitments and the reforms will help and not hurt the poor and vulnerable,” Kim said.

DESPITE PRESSURE TO SHELVE STRIKE, NLC INSISTS ON PROTEST The communiqué issued at the end of the meeting of the NLC’s Central Working Committee (CWC) highlighted the union’s grievances to include the electricity tariff hike, fuel scarcity, the privatisation programme, casualisation of workers, outsourcing, and the non-payment of salaries and pensions, among others.

NLC contended that government's dilly-dallying approach in addressing the

national problems had worsened the economic situation in the country, leaving it with no option than to embark on a oneday nationwide warning strike to press home its demands.

The union said: “CWC therefore resolved that the leadership should work with TUC to organise a one-day nationwide rally and protest, and another one-day for a national solidarity rally with Kaduna workers in Kaduna to

protest the high-handedness of the government.

“In furtherance of this, it was also resolved that a joint emergency NEC meeting of TUC and NLC be convened.”

But THISDAY checks revealed that a section of the organised labour might not be in total support of the strike, a move that might have slowed down the zeal to embark on the protest.

Speaking to THISDAY, a member of the National

OIL HITS FOUR-MONTH HIGH ON COMMODITIES RALLY U.S. WTI crude also rose yesterday, gaining 82 cents to $40.54 a barrel and touching an intra-day high of $40.75, near a three-week high.

“All commodities are going up. It could be (investors) buying into dips every now and then as people are looking for opportunities to get long,” Natixis commodity strategist Abhishek Deshpande said.

Gold prices also touched their highest level in almost three weeks, while silver and platinum were up more than 2 per cent.

A weaker U.S. dollar gave impetus to buyers as commodities priced in the currency became cheaper to purchase.

Oil traders continued to place hopes on the oil producers’ meeting to prop up crude prices that have been severely depressed by a global supply glut.

But analysts at Goldman Sachs, who expect oil to average $35 a barrel in the second quarter, cautioned that the outcome of the meeting in Qatar could prove bearish for the market.

Last week, many oil market speculators agreed with a more bearish outlook as data from the InterContinentalExchange (ICE) showed that net long positions on Brent had been cut to 355,225 contracts in the week to April 5.

However, analysts are forecasting firmer demand for oil over the longer term.

Researchers at Bernstein expect global oil demand to increase at a mean annual rate of 1.4 per cent between 2016 and 2020, compared with annual growth of 1.1 per cent over the past decade.

“We expect oil markets to rebalance by the end of 2016.

This will allow prices to recover

towards the marginal cost of $60 per barrel,” Bernstein said.

Bernstein added that it expects global demand to reach 101.1 million bpd by 2020, from the current 94.6 million bpd.

Meanwhile, the World Bank yesterday lowered its 2016 sub-Saharan African growth forecast to 3.3 per cent from a previous forecast of 4.4 per cent in October, citing plunging global commodity prices.

It however said a projected uptick in economic activities in the continent next year would be driven by economic powerhouses Nigeria, South Africa and Angola as commodity prices stabilise.

The Bank said the commodity price rout, particularly for oil which fell 67 per cent from June 2014 to December 2015, as well as weak global growth were behind the region’s lacklustre performance.

10

TUESDAY APRIL 12, 2016 • T H I S D AY

NEWS

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

Kaduna Govt: 347 Corpses Were Buried in a Mass Grave after Shiite, Army Clash

John Shiklam in Kaduna

Facts about the casualty figure during last December’s clash between the Nigerian Army and members of the Islamic Movement of Nigeria (also known as the Shiite sect) in Zaria have emerged, with the

disclosure that 347 corpses were buried in a mass grave.

Making the disclosure before the Judicial Commission of Inquiry set up by the Kaduna State Government to investigate the violent clash, the state Director General of Interfaith, Alhaji Namadi Musa, said a

Customs Loses N230bn Revenue to CBN’s Forex Ban on 41 Items Ndubuisi Francis in Abuja The Nigeria Customs Service (NCS) recorded a loss of N230 billion in the last quarter of 2015 due to the Central Bank of Nigeria’s (CBN) closure of the foreign exchange window to 41 imported items.

The Comptroller General of Customs, Col. Hameed Ibrahim Ali (rtd), who made the disclosure, said a request for the review of the policy had been tabled before Vice-President Yemi Osinbajo.

Ali had as part of his continuous engagement with various stakeholders, concluded a week-long working visit to Lagos and other operational areas in the South-west at the weekend.

During the visit, he met with members of the Manufacturers Association of Nigeria (MAN) where issues of mutual concerns were addressed.

On the front burner of the parley were concerns raised by the participants on the constraining impact of the CBN policy banning some items from accessing the official foreign exchange market.

In his response, Ali noted that the policy had created a revenue shortfall to the tune of N230 billion in the last quarter of 2015, adding that a request for a review had been tabled before the vice-president.

“At the end of the forum, the two sides acknowledged the growing cordial relationship existing between the Customs and the Manufacturers Association of Nigeria, and expressed commitment to sustaining the tempo.

“To formalise the relationship,

it was agreed that a joint Customs-MAN team would be set up to harmonise areas of conflict in a current draft Memorandum of Understanding.

“Continuous engagement, honest declaration, training of importers and regular advocacy were recommended to address the issue of value upliftment and queries.

“Customs was enjoined to monitor its new dispute resolution mechanism and review it for modification if there are gaps in implementation,” a statement issued by the NCS Public Relations Officer, Wale Adeniyi, said.

According to the statement, while showing understanding for the current economic downturn, which places pressure on the Customs Service to safeguard revenue on contentious declarations, the forum encouraged the NCS to balance this out by availing importers the opportunity to use the bond option to avoid heavy demurrage pending a final resolution of such disputes.

“The forum noted the growing violation of the intellectual property rights of Nigerian manufacturers resulting in the fake replication of their products by foreign companies,” it said.

The regular exchange of information, tracking of suspect cargo and strong collaboration were advocated to address these trade malpractices.

On complaints over the Export Expansion Grant (EEG), the forum noted that its suspension was due to incessant abuse by some beneficiaries who indulged in racketeering and other vices.

Nwodo: I’m Not in APC,Though PDP is Not Exciting Former National Chairman of the Peoples Democratic Party (PDP), Dr. Okwesilieze Nwodo, has denied reports that he has dumped the PDP for the ruling All Progressives Congress (APC).

Nwodo said while developments in PDP is embarrassing and unexciting, he was yet to dump the party.

Nwodo, a former Governor of the old Enugu State, said it was improper for people to conclude that since his wife was present at a meeting where he was conspicuously absent, he had joined the APC disregarding the fact that his wife as an adult, and has her own political life.

“As one of the founding

fathers of PDP who has held the highest office in the party, I know the statutory procedure of resigning and would willingly do that if necessary,” he said.

Nwodo said although a number of issues within PDP remains embarrassing to the founding fathers, the truth is that “ I am still a member of the PDP and has not joined the APC.” The former governor then urged his numerous supporters across the country particularly in Enugu State to disregard the purported story as his political direction would not be hidden if the need arises.

total of 347 corpses were given a mass burial in the Mando area on the outskirts of the metropolis.

Testifying yesterday before the commission headed by Justice Muhammad Lawal Garba, Musa said he personally conducted the mass burial, adding that he counted the bodies as they were being put in the mass grave.

He explained that the corpses comprise 191 from the Army Depot in Zaria and another 156 from the Ahmadu Bello University Teaching Hospital

(ABUTH), Shika, Zaria.

According to him, one Major Ogundare from the Nigerian Army Depot, Zaria led three military trucks loaded with corpses from the army depot while he (Musa) had five Mercedes Benz trucks loaded which with corpses and were taken to a mass grave in Mando area at the outskirts of Kaduna metropolis and buried in a mass grave.

He added that it was during the mass burial that he had the opportunity to meticulously count the corpses as they were

being dropped in the grave.

He disclosed further that it took five and a half hours - from 12:30a.m on December 14 to about 5:30a.m to bury all the corpses in one mass grave.

Also testifying before the commission, the Head of Surgery of ABUTH, Shika, Prof.

Adamu Ahmed, also narrated how the army, along with some police men in a convoy of trucks, invaded the hospital premises, headed for the mortuary and drove all the mortuary workers away on December 13, 2015, prevented access to the mortuary

and remained there until the following day when they finally left.

He said the hospital authorities had no idea what the army and the police came to do at the mortuary, adding that the authorities of the hospital did not see what the soldiers came with and what they left with, even though he said there was nothing unusual in the mortuary.

The army had earlier in their testimony said they had no idea about the casualty figure during the incident.

WELCOMETO CHINA

President Muhammadu Buhari (left), being welcomed by Assistant Minister of Foreign Affairs, Mr. Cheng, alongside other senior Chinese government officialsattheBeijingCapitalInternationalAirportwhenthepresidentarrivedthe People’sRepublicofChinaforastatevisit...yesterday

Dasuki Floors FG as ECOWAS Court Assumes Jurisdiction in His Case Tobi Soniyi inAbuja The former National Security Adviser (NSA), Col. Muhammed Sambo Dasuki (rtd), yesterday at the Economic Community for West African States (ECOWAS) Court won the first leg of his case challenging his alleged unlawful arrest and detention without trial since December last year by the federal government.

The court in Abuja ruled that it had jurisdiction to entertain the suit brought before it by Dasuki for the enforcement of his fundamental rights to liberty and to own properties as enshrined in the provisions of the Nigerian 1999 Constitution and African Charter on fundamental rights of persons.

In the ruling delivered by Justice Friday Chijoke Nwoke, the ECOWAS court dismissed completely the objection of the government against Dusuki’s suit on the grounds that it was misplaced, misconceived, frivolous and lacked merit.

Justice Nwoke in the unanimous ruling of the three-member panel of the court held that the claim of government that Dasuki’s case emanated from his trial on certain offences was inappropriate and being basis for its objection to the applicants case in this matter could not hold water since the reliefs

sought by Dasuki have nothing to do with the ongoing trial at the domestic courts of Nigeria.

The justices said in their own opinion, that the claim of government that Dasuki ought to have filed contempt charge against the Nigerian government for disobeying court orders that admitted him to bail but flouted by the government was not susitainable because his the case of applicant was not ambiguous, in that it was not based on any criminal trial in any court.

Justice Nwoke said at any rate, the case of the Nigerian government could not stand in the face of the law because there was no evidence that Dasuki had filed similar pending matter in any international court and that even if he had similar matter in any Nigerian court up to Supreme Court, such domestic courts could not have the status of international court as envisaged in the treaty in which Nigeria was a signatory.

“In our opinion, what Dasuki brought before us as a case is an issue for the enforcement of his fundamental rights to liberty and own property and against unlawful arrest, unlawful detention and unlawful seizure of properties without any court order or warrant of arrest.

“From the totality of the issues

brought before this court, it is clear and there is no ambiguity that the applicant is seeking enforcement of his right to freedom and not on the issue of his trial for any alleged offence before any Nigerian court.”

Justice Nwoke further said: “Therefore, the objection of the government and the request that the case of the applicant in this matter be struck out on the ground of emanating from some criminal matter has no basis, the claims and the request lack merit and are hereby dismissed and we declare that the application of Dasuki is admissible to this court.”

The ECOWAS court said it was not out to decide the issue of whether the applicant was guilty of the charges against him in the Nigerian courts or not but simply to ascertain whether his fundamental rights to liberty, having been granted bail in criminal matters rearrested since last year and kept in an unknown place constitute an abuse of his rights to freedom.

Dasuki through his lawyer, Mr. Robert Emukpoeruo and Wale Balogun had dragged the federal government before the ECOWAS court to complain that the invasion of his house in Abuja, Kaduna and Sokoto last year without any court order or warrant of

arrest and even seizure of his properties comprising vehicles, money and documents constituted the abuse of his rights to liberty as enshrined in section 36 and 34 of the 1999 Constitution and other international laws where Nigeria was a signatory.

Besides, he complained that the invasion of his house by operatives of government without lawful court order traumatised his 94-year-old father (Alhaji Ibrahim Dasuki) who suffered shock and up till now had not recovered from the sickness that followed.

Dasuki therefore asked the ECOWAS court to award N500million compensatory damages in his favour and against the government having been denied access to medical attention in abroad as ordered by a Nigerian court since November last year.

The government through its lawyer, Mr. Tijani Gazali, had objected to Dasuki’s case on the grounds that ECOWAS court has no jurisdiction to dabble into the trial of any Nigerian in the Nigerian court and asked the ECOWAS court to strike out the case because it constituted an abuse to the Nigerian courts.

Meanwhile, definite hearing in the matter has been fixed for May 17 and 18, 2016.

T H I S D AY TUESDAY APRIL 12, 2016

11

12

TUESDAY APRIL 12, 2016 • T H I S D AY

NEWS

BBOG Commences Week of Global Action to Commemorate Abduction of Chibok Girls Chiemelie Ezeobi To commemorate two years of the continued disappearance of 219 Chibok girls after their abduction from their school in Borno State, the BringBackOurGirls (BBOG) group has commenced a week of global actions.

The week with the theme: ‘#HopeEndures’, which began on April 8, 2016, will end on April 14, 2016, which was the exact day the girls were abducted from Government Secondary School, Chibok, Borno State.

The statement from the group, which has been the chief campaigner for the release of the girls, lamented that it would soon be exactly two years since the girls were abducted by Boko Haram terrorists.

The group also said the week was to mark the “unfortunate incidence and to refocus the world’s attention to the fact that 276 schoolgirls were abducted in their school, 57 escaped, 219 remain missing till date, with 17 of their parents losing their lives as a result of the trauma.

“We urge persons wherever they

may be to carry out activities to commemorate this event. There are activities already lined up in many cities of the world, we encourage everyone to participate and/or organise one, however simple.”

The week, which began on April 8, started with special prayers at Jumat service and ASR prayers at Unity Fountain, also had talks

by Islamic scholars.

On April 9, the group had a virtual meeting with an online engagement that was more of a ‘tweet meet’ and the next day, April 10, was the Christian prayers and talks.

Yesterday, April 11, the group hosted a workshop on ‘endangered education’ at the Shehu Musa Yar’Adua Centre, Abuja.

While the keynote Speaker was Hajiya Aisha Alhassan, the Minister of Women Affairs and Social Development, the opening address was read

by BBOG Co-convener, Dr. Oby Ezekwesili.

The workshop, which focused on the Nigerian girl-child, was a parley for high level discussion on issues affecting the Nigerian girl-child.

It also afforded them the

opportunity to remember and honour students and teachers killed by Boko Haram insurgents and launching of the ‘Initiative for Day of the Nigerian child’.

Today, April 12, the group will visit the United Nations and six embassies including the United States of America, France, United Kingdom, Canada, Australia and Israel.

On Wednesday, April 13, the group will have a walkathon, red ribbon day and evening of

arts, which is basically event to member the Chibok girls led by the Chibok Girls Ambassadors.

After the walk to the presidency at Presidential Villa, the group will have a world press conference, where they will highlight their struggles and the next line of action.

However, beyond the week of global action, a visit to the group’s website revealed their demands to the federal government as, “That the 219 Chibok schoolgirls abducted on April 14, 2014 be

rescued by the government.

“Improvement of government’s accountability to Nigerians on security issues, particularly in the North-east.

“How? Through improved communications on Nigerian security happenings with daily briefings on the rescue of the abducted girls.

“Creating communication channels that help inform the public on safety measures being taken to protect Nigerian citizens.

“Prosecution of rehabilitation services, such as counseling and healthcare, as well as witness protection, to all abducted girls who have escaped or been rescued.

“Taking measures to ensure the protection of children of school age to curb future abductions and sexual violence.

“Passage of the Violence Against Persons Prohibition Bill (VAPP Bill) that protects girls to ensure persecution of those responsible for sexual violence once captured.”

INEC Fixes FCT Rerun Elections for Tomorrow APGA protests commission’s inconclusive verdict Onyebuchi EzigboinAbuja The Independent National Electoral Commission (INEC) in the Federal Capital Territory (FCT) has said it will conduct rerun elections in 39 polling units in 20 registration areas of the capital city tomorrow.

The results from the affected polling units were cancelled for reasons ranging from violence, over voting and non-use of Smart Card Readers for accreditation of voters.

In a statement signed by the Resident Electural Commissioner (FCT), Prof. Jacob Jatau, the commission said accreditation and voting tomorrow, would begin simultaneously from 8a.m. to 2p.m.

The commission which had been criticised by some stakeholders over its frequent recourse to declaration of inconclusive elections, urged the political parties and their candidates to toe the path of peace to ensure the conclusion of the electrons The commission had declared elections in five of the six local council areas inconclusive due to alleged mass irregularities.

The affected council areas are: Abuja Municipal Area Council, Kuje, Gwagwalada and Abaji.

Meanwhile, the All Progressives GrandAlliance (APGA) has urged the INEC to officially declare its candidate for the Gwagwalada Area Council’s election conducted last Saturday, Hon Adamu Mustapha Danze, the winner of the poll.

The party said having scored the highest number of lawful votes cast after the collation of results from various polling booths with the figure 15,312.00 as againstAPC 14,546.00 and PDP 6,082.00, INEC has no genuine reason to deny him victory.

The commission had declared election in five of the six area councils inconclusive, attributing its decision

to widespread irregularities which affected substantial part of the areas involved in the election.

However, in a statement Issued yesterday in Abuja by APGA’s National Director of Publicity, Ifeanacho Oguejiofor, the party urged President Muhammadu Buhari and well-meaning Nigerians to prevail on INEC to avoid any action that would destroy the country’s emerging democracy.

The party alleged that information at its disposal indicated that there were strong pressure on INEC not to declare APGA winner, adding that APGA’s victory is being seen “as a big shame and unmitigated disgrace to the minister of the FCT and the presidency.

“The minister, according to information, was mounting strong pressure on the officials of the commission not to announce APGA as the winner of the election, rather, the Returning Officer in the election was made to cancel two polling units’ results and declare the election inconclusive, to allow APC rig the rerun election.

“However,APGAwishes to caution INEC to be mindful of its actions and not to collude with some unpatriotic politicians and antidemocratic forces to deny APGAits clearly won election and the people’s mandate in order not to incur the wrath of God and the people of Gwagwalada who had made their choice-which democracy is all about.

“Therefore, INEC should allow the votes of the people count without any manipulationfromanyquarter,especially from the electoral body. Also, maybe INEC needs to be reminded that he who sows whirlwind will definitely reapcataclysm,hencethecommissionis advised to better forestall that now than to ignite a wild fire in Gwagwalada Area Council for no just cause.”

STILL ON CHIBOK GIRLS

Coordinator of the BringBackOurGirls (BBOG) Group, Dr. Oby Ezekwesili (left), and Minister, Ministry of Woman Affairs and Social Development, Senator Aisha Jummai-Alhassan, at a workshop as part of the global activities to mark the commomeration of the abduction of the Chibok schoolgirls in Abuja...yesterday

UNIPORT Shut down, Final Year Student Feared Dead in Rampage Ernest Chinwo in Port Harcourt

The Senate of the University of Port Harcourt (UNIPORT) yesterday evening announced the closure of the institution following a violent students’ protest over a new school fees policy that prevented some students from writing examinations.

THISDAY gathered that a final year student of the Faculty of Management Sciences and President of the faculty students’ association, Peter Ofurum, was shot dead during the protest.

A text message from the Spokesman and Deputy Registrar (Information) of the university, Dr. Williams Wodi, said:, “Senate has shut down the university with immediate effect. All students directed to vacate their hostel accommodation before 6.00 p.m today (Monday). Students’ Union and all their affiliate bodies suspended with immediate effect.

The closure will last for one month.”

He however said the university was yet to confirm the death of any student.

Wodi said the institution was aware of the death of three persons in the last two days outside the campus, but said investigations were on to determine if any of the victims was a student.

“Yesterday, a mobile policeman

was shot outside the campus. Also yesterday, a person suspected to be a trader was shot at the same spot. Today, we heard that another person was shot at the same area.

We do not know yet if the person is a student or not. Mind you, that happened outside the university campus. We will need to go through the Students’ Affairs Directorate to identify if any of the victims is a student,” he said.

Students of the university had yesterday morning gone on rampage, destroying buildings and setting up barricades along the East-west Road and adjoining roads in protest against the increase in school fees by the authorities of the institution.

The protest, which started before 6 a.m, caused heavy gridlock on the East-west Road and disrupted activities at the motor parks around Choba Junction of the highway.

Economic activities around the adjoining communities were also put on hold as the students smashed windows and door glasses of buildings, forcing traders to scamper for safety.

The students carried placards with inscriptions: ‘Stop exploiting students’, Prof. Ndowa Lale (Vice Chancellor) must go; ‘N45,000 tuition fees: highest among federalowned universities’, among others.

The students, THISDAY gathered, later stormed the Abuja Campus of the university where they destroyed some buildings and other school property.

Scores of regular and anti-riot policemen however watched as the students carried out their protest.

The students said they were protesting against a directive of the university authorities that any student who had not paid the increased school fees of N45,000 as at April 4 would not be allowed to write the examinations and also stands dismissed.

THISDAY gathered that UNIPORT management in 2015 adopted a policy which made tuition fee a prerequisite for student’s participation in examination, a policy which compelled defaulting students to repeat a whole academic session.

The protesting students demanded the withdrawal of the policy, which they argued was unfair to poor students.

One of the protesting students, who did not wish to be named, said the students took to the streets to disrupt examinations slated to begin on April 11.

According to him, “The management placed a deadline for school fees payment and are now trying to enforce it before the examination.

“This action by UNIPORT to bar poor students who had defiled all odds to study and become responsible citizens to the society is draconian and wicked.

“We will resist this attempt by the university management to victimise students whose parents could not immediately afford UNIPORT’s exorbitant tuition fees.”

Another student, who gave his name simply as Biggy, vowed that students would remain on the road until the Vice Chancellor, Prof. Ndowa Lale, addressed them.

He alleged that at least six students had been injured by the police.

Reacting to the development, spokesman of the university, Wodi, expressed regret that the protest was being masterminded by only two per cent of the university students population who failed to meet the deadline for the payment of the fees.

“What’s going on is that less than two per cent of our students are protesting and are refusing to allow workers and other students to come into the campus to start their examinations or do their legitimate duties,” Wodi, a deputy registrar said.

He said the protesting students had destroyed his office and Faculty of Science Block.

T H I S D AY TUESDAY APRIL 12, 2016

13

14

T H I S D AY • TUESDAY, APRIL 12 2016

COMMENT

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

LIQUIDITY SQUEEZE AND PENSION FUNDS

G

Paddy Ezeala argues the contributory pension scheme has the potential to provide financial cushion to the economy

reat economies are usually those that, among other things, have relatively high Gross Domestic Product (GDP) and solid financial cushion or at least inhere the capacity to conjure one when the need arises. With yawning gaps and deficits, Nigeria cannot be said to be a great economy, the rebasing narrative that makes it the largest economy in Africa notwithstanding. The GDP growth rate has been at the lowest ebb in recent times. It remains a largely import-dependent mono-cultural economy that has scant regard for human capital and creativity and embodies a perverse reward system that in itself stifles productivity.

Nigeria is currently at a critical juncture. It is either the right decisions are taken and the right things done or we take an irretrievable plunge economically. There is no time for rhetoric or political statements. For decades, we have been hearing of the need to diversify the economy. It has almost become a cliché. But the truth of the matter is that economic diversification is not done by fiat and cannot be issued as a decree. There must be a well-laid-out plan to incentivise the development of non-oil sectors. In other words, investment in them must be made attractive and products therefrom internationally competitive.

This brings us to the challenges of infrastructure which is a major impediment to the diversification of the economy. The infrastructural deficiencies of the country are acknowledged and well-documented and the negative impact on productivity glaring. Our mineral resources would not have a competitive price tag if the cost of production remains prohibitive because of lack of basic infrastructure and necessary incentives. The same goes for agriculture whose produce rots away owing to inadequate storage facilities. We should see infrastructure beyond buildings, roads, electricity, running water, etc. It should also include the necessary policy framework to drive growth.

Following the drop or volatility of oil prices in recent times and the concomitant large-scale funding gap of the 2016 budget, the federal government is obviously at its wit’s end in search of alternative sources of funding to bridge the deficit. The global economic meltdown has adversely affected institutional investment in infrastructure as big corporations are hoarding cash and private sector participation in infrastructural development in Nigeria has often been mired in controversy. A state in Nigeria has had to practically construct toll gates and proceeded with the collection of tolls even before the associated road construction properly got underway amid protests by residents in the area and other stakeholders.

As hinted above, great economies include those with huge financial backbone. The contributory pension scheme (CPS) has the potential to provide the necessary financial cushion in our drive to build a solid economy beginning with addressing our infrastructural deficiencies. From a deficit of more than N2 trillion in the old defined benefit scheme before 2004, the CPS is closing in on N6 trillion in the amassment of pension funds even when a fraction of this is illiquid.

This is even with far less than 10% market penetration in the pension industry. In other words, less than 10% of Nigerian workers in the formal and informal sectors of the economy have enrolled in the CPS. This explains the great potential and immense possibilities of the industry. While savouring the excitement generated by the remarkable success of the CPS, it is important to note the marked difference between it and the old defined benefit scheme. This is because the word pension in Nigeria has acquired a pejorative connotation as a result of the runaway corruption that characterised the old scheme and still persists.

The various tiers of government have been eyeing the pension funds as a possible source of funding for infrastructure and other development projects. Interestingly, this includes some states that have yet to comply with the Pension Reform Act 2014, by putting the necessary structures in place and enlisting in the CPS. The federal government has yet to wield the big stick to bring every state and

WITH THE NECESSARY MEASURES PUT IN PLACE AND THE RIGHT STEPS TAKEN, PENSION FUNDS MIGHT WELL BE THE SOLID BACKBONE REQUIRED TO JUMPSTART OUR ECONOMY BEGINNING FROM MASSIVE INFRASTRUCTURAL DEVELOPMENT

every worker into the scheme.

There is no gainsaying the fact that there must be an airtight policy framework for investment to ensure that risks are reduced to the barest minimum. Pension funds are held sacrosanct in view of the fiduciary relationship that exists between the Retirement Savings Account (RSA) holders and the Pension Fund Administrators (PFAs).

It should be reiterated that pension funds are well-positioned to play a critical role in economic development in Nigeria. However, excitement must give way to reason to ensure proper application of the funds. It is gratifying that the investment portfolio in the pension industry has since 2010 been diversified to allow investments in infrastructure funds and bonds as well as other asset classes such as supranational bonds and private equity funds. Before then, the National Pension Commission (PenCom) regulation on the investment of pension assets only allowed investment in ordinary shares, money market, corporate bonds and open -and close-end funds. All these are core asset classes.

The question now remains: how funds in this subsector can be mobilised without the necessary prudential safeguards watered down or even compromised? The Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola recently at the Nigerian Pension Industry Strategy Implementation Road map Retreat organised

by PenCom advocated the use of pension funds to address the infrastructural deficiencies of the country. In fact, the minister stated that Nigeria should take the lead in Africa in using people’s funds to drive inclusive growth. Said he: “I see a future for Africa led by Nigeria, using the resources of the people to build a future that include the people.”

Such optimism has been palpable not only in Nigeria but in other countries in Africa including South Africa, Kenya, Uganda and Tanzania, where pension funds are witnessing tremendous growth.

But there are many issues for consideration and structures to be put in place before the desired results can be achieved.

First of all, transparency in the entire processes leading to the choice, funding and execution of projects must not be compromised.

Projects must be in sync with a development plan and/or vision with clear deliverables and milestones as well as mechanisms inbuilt or otherwise for monitoring and evaluation.

PenCom has been outstanding in the regulation of the CPS; ensuring strict compliance with the ground rules of the industry as laid out in the Pension Reform Act 2014. An unswerving oversight mechanism has to be established to ensure all-round compliance not only with the policy framework for investment but also the actual rendition of the project. This is to guarantee the retirement of whichever instrument has been used in the investment. Also, regulatory approaches must be consistent.

It is important to note that the investment of pension funds in infrastructure development requires some measure of capacity building to achieve the desired results. We have to shore up our expertise across the entire chain. We can achieve this through specialised training and collaborative efforts with countries that are way ahead of us in this regard. For instance, more than USD93 trillion is owned by institutional investors including pension funds in Europe alone.

The Organisation for Economic Co-operation and Development (OECD) is already sharing their policy framework on investment with 30 countries including seven countries in Sub-Saharan Africa while the Southern African Development Corporation (SADC) is working with OECD towards developing a regional investment policy framework.

With the necessary measures put in place and the right steps taken, pension funds might well be the solid backbone required to jumpstart our economy beginning from massive infrastructural development.

Ezeala wrote from Abuja

ALL THAT IS UNSEEN

Y

The EFCC should prove its allegation against former chief of defence staff, Alex Badeh, writes Umar Kaltinga

ou cannot shave a man’s head in his absence. This is a common saying which aptly applies to what the officials of the Economic and Financial Crimes Commission (EFCC) did during the detention and investigation of the immediate past Chief of Defence Staff, Alex Badeh, whose house was allegedly searched in his absence recently.

The officials of the commission, while Badeh was in their custody, went ahead to search his house and claimed to have recovered some items including $1million, which Badeh has since denied and termed a publicity stunt aimed at making his bail difficult.

Though the commission may have been armed with a search warrant, the interest of justice and fair play would have been served, if they had gone with the occupant of the house to the building during the execution of the search warrant.

The commission has come out to say that

the house was searched in the presence of Badeh’s neighbours. The money allegedly recovered from his house, according to the EFCC, was being kept as exhibit in their custody and would be brought to the court in the course of the trial to be tendered as exhibit. The members of the public, who are keenly interested in the matter, would wait for the anti-graft agency to bring the money as exhibit as promised. If the commission makes good its promise to tender the money as exhibit, it would be left for the two sides to prove to the court where the $1m came from.

The EFCC through its officials had said the money was recovered after detectives searched a mansion located at 6, Ogun River Street, Maitama, Abuja. And this is where the EFCC clearly shot itself in the foot. For a start, the address mentioned by the EFCC as housing a property belonging to Badeh and wherein the said sum of $1m was discovered does not belong to the former defence chief as records have shown. A detective at the

EFCC, who did not want his name in print, said, “We have seized several properties belonging to Badeh. A few days ago, we returned to the mansion located at 6, Ogun River Street, Maitama. In the presence of several witnesses, including neighbours, we searched the house and recovered $1m in cash. The money has been lodged as evidence.”

But the question begging for answer at this point is whether EFCC will be able to sustain the allegation against the former military chief who has served his fatherland diligently and retired as the number one military officer in the country. And this brings me to the ruse called N1m recovery and the intent of such publicity stunt. Just to attempt to make bail condition extremely difficult and paint Badeh in bad light, the EFCC, I dare say, sponsored the report.

As things stand today, the EFCC, till this moment, has not deemed it fit to include the missing $1m in its charge sheet for which it is prosecuting the former defence chief.

And the reason is simple. There was and there is no money recovered from Badeh’s house and hence nothing to tender. For whatever objectives the EFCC set out to achieve through that shameful report, truth remains that the anti- graft agency basically made nonsense of what a strong institution represents.

As the case has shifted to the courts, Nigerians are waiting to see the EFCC amend its charge sheet to include the said recovered $1m from Badeh’s house and restore its confidence. However, if at the end of it all, the commission does not tender any money, then clearly, members of the public will be in a position to read between the lines.

The war against graft must be fought with all sincerity, especially within the rule of law.

It must be seen to reflect the zeal needed to change the status quo in terms of fighting corruption. When the EFCC begins to adopt subterranean and slimy tactics, then we must all be concerned.

Kaltinga wrote from Gombe, Gombe State

15

T H I S D AY • TUESDAY, APRIL 12, 2016

EDITORIAL DEALING WITH THE VIGILANTE CHALLENGE

N

The government should define the role of vigilante groups in our community policing system

o fewer than seven people were recently killed and 19 others severely injured when members of two factions of ‘vigilante’ groups clashed in Adamawa State. The bloody fight occurred during the coronation of two officials of the Amalgamated Union of Nigerian Hunters in Gombi. To the extent that armed vigilante groups are involved in providing security in Adamawa, Borno, and Yobe States as they assist security officials in the battle against Boko Haram insurgents, it is in everyone’s interest that they resolve their differences.

However, there is also the need to look at the whole issue of vigilante groups and their role within the current security architecture of the country against the backdrop of rising cases of wanton killings by some of these groups. Even though such killings occasionally dominate headlines, not much seems to have been done to arrest the alarming trend.

It is obvious IF VIGILANTE GROUPS ARE that there is a clear TO BE INCORPORATED connection between INTO OUR INTERNAL the worsening SECURITY FRAMEWORK, security situation THEN THEIR ACTIVITIES in the country and MUST BE REGULATED the emergence and AND THEIR MEMBERS proliferation of PROPERLY DOCUMENTED vigilante groups. It should worry the authorities that all manner of groups now carry arms for which many are not trained. Besides, there is nothing to distinguish some of these groups from armed robbers and/or kidnappers.

While we believe that the primary responsibility of a state is the protection of lives and property - a responsibility that is discharged by institutions like the police, the military, paramilitary services and the intelligence community, it becomes worrisome when this sacred duty is outsourced to unregulated, ill-trained, poorly-equipped and uncoordinated

Letters to the Editor

groups as obtains today in most towns across the country. We believe that this could be a prelude to anarchy if not properly addressed and we thus call on the authorities to move in quickly to restore a measure of order.

We are not opposed to efforts by communities to protect themselves against violent hoodlums and night marauders, or for the existence of vigilante groups as part of efforts to tackle the challenging security situation in the country. However, we are of the view that if these groups could be incorporated into our internal security framework, then their activities must be regulated and their members properly documented. Also, their right to bear arms, even if such arms are locally made, must be critically reviewed with clear guidelines issued by the appropriate authorities. A situation where touts and confirmed drug addicts bear arms at night as members of vigilante groups should not be acceptable in any decent society. Not only is it a threat to law abiding citizens, it is also a serious danger to public peace.

T H I S DAY

EDITOR IJEOMA NWOGWUGWU DEPUTY EDITOR BOLAJI ADEBIYI MANAGING DIRECTOR ENIOLA BELLO DEPUTY MANAGING DIRECTOR KAYODE KOMOLAfE CHAIRMAN EDITORIAL BOARD OLUSEGUN ADENIYI EDITOR NATION’S CAPITAL IYOBOSA UWUGIAREN

T H I S DAY N E W S PA P E R S L I M I T E D

EDITOR-IN-CHIEF/CHAIRMAN NDUKA OBAIGBENA GROUP EXECUTIVE DIRECTORS ENIOLA BELLO, KAYODE KOMOLAfE, ISRAEL IWEGBU, EMMANUEL EfENI, IJEOMA NWOGWUGWU GROUP FINANCE DIRECTOR OLUfEMI ABOROWA DIVISIONAL DIRECTORS PETER IWEGBU, fIDELIS ELEMA, MBAYILAN ANDOAKA, ANTHONY OGEDENGBE DEPUTY DIVISIONAL DIRECTOR OJOGUN VICTOR DANBOYI SNR. ASSOCIATE DIRECTOR ERIC OJEH ASSOCIATE DIRECTORS HENRY NWACHOKOR, SAHEED ADEYEMO CONTROLLERS ABIMBOLA TAIWO, UCHENNA DIBIAGWU, NDUKA MOSERI GENERAL MANAGER PATRICK EIMIUHI GROUP HEAD fEMI TOLUfASHE ART DIRECTOR OCHI OGBUAKU II DIRECTOR, PRINTING PRODUCTION CHUKS ONWUDINJO TO SEND EMAIL: first name.surname@thisdaylive.com

TO OUR READERS Letters in response to specific publications in THISDAY should be brief (150-200 words) and straight to the point. Interested readers may send such letters along with their contact details to opinion@thisdaylive.com. We also welcome comments and opinions on topical local, national and international issues provided they are well-written and should also not be longer than (9501000 words). They should be sent to opinion@thisdaylive.com along with the email address and phone numbers of the writer.

STILL ON FUEL SHORTAGES

N

igeria is the Africa’s largest oil producer and the continent’s largest economy, but the country has been paralysed by fuel shortages for weeks. One is actually curious why an oil producing nation like Nigeria cannot run refineries at optimal levels.

It is quite disheartening that the four refineries in Port Harcourt, Warri and Kaduna are functioning at a sub-optimal capacity and the country continues to spend substantial foreign exchange to import fuels. The fact that the bulk of Nigeria’s crude oil is still refined abroad is a pointer to this fact.

Indeed, because domestic refining in Nigeria cannot meet up with domestic consumption, Nigeria resorted to the importation of refined crude for almost the whole of 2010. The four refineries with a combined capacity of 445,000 barrels per day could only refine a mere 80,757 metric tonnes of petroleum products. These are 19,967mt of Premium Motor Spirit (petrol) 53,223.4mt of Automotive Gas Oil, (diesel) and 7,567mt of Liquefied Petroleum Gas (cooking gas).

The rest 8.1million mt of petroleum that came into the downstream sector was imported. Not only does Nigeria import refined products, the process of importation is fraught with irregularities, high level of corruption and the inflation of figures

I

n checking this ugly trend, we could also borrow a leaf from other climes where the existence of neighbourhood watch is basically to serve as the third eye which gives information to the police on unusual activities and suspicious faces in their neighbourhood. In those societies, there is a close synergy between the neighbourhood watch and the security agencies, with the former helping to gather intelligence in areas where the latter lack the required manpower and resources. And on occasions when they assist in nabbing suspected criminals, such suspects are promptly handed over to the police for proper investigation and possible prosecution.

We therefore call on government to properly define the role of vigilante groups in our community policing system. That should include keeping proper documentation and conducting background checks on their members. We believe that these are the ways the spate of tragic killings by members of vigilante groups could be effectively checked.

of imported products (in order to make high subsidy claims) at huge cost to both the government and Nigerian citizenry.

It would be recalled that the Nigerian National Petroleum Corporation (NNPC) some years ago indicated interest in the building of three new green refineries with a total capacity of one million barrels each in three states of the federation. But it so far a mere dream. Multinational oil firms such as Shell Nigeria, Exxon Mobil, Total, Agip and Addax, have continued to shun investment in refinery projects in the country due to the absence of incentives.

But other OPEC member states including Saudi Arabia, Libya, Iran Kuwait, United Arab Emirate, Algeria, Qatar and Venezuela, are fast expanding their refineries both at home and abroad. Libya and Kuwait for instance own offshore refineries in Europe where crude oil is shipped to be refined and dispense to consumers from fuel stations in Europe.

However, in Nigeria, fuel scarcity has become a phenomenon; despite that it affects the nation’s economy adversely. Fuel in Nigeria is used not just to run cars and transport goods and services, but also used to power generator at homes and businesses, because of epileptic supply of electricity.

Temitayo Taylor, Abiola Way, Abeokuta

APC AND THE PARABLE OF CHANGE

D

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.

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. Long arm went into a coma after a protracted adjudicating miscarriage before marriage and is allergic to quick therapy. It’s a pity leprous arm with swollen legs won’t respond to treatment due to late cancer in its long throat.

John Adebisi, adebisijohn21@gmail.com

16

T H I S D AY • TUESDAY, APRIL 12, 2016

POLITICS

Group Politics Editor Olawale Olaleye Email wale.olaleye@thisdaylive.com 08116759819 SMS ONLY

EXECUTIVE BRIEFING

Nasarawa Assembly’s Descent to Violence Last week’s free-for-all in the Nasarawa State House of Assembly undermines the legislative institution, writes Adams Abonu

W

hile it is expected of legislatures at any level of government to show decorum in the conduct of their statutory responsibilities, the fracas at the floor of the Nasarawa State House of Assembly in Lafia last Monday afternoon ran contrary to this expectation with the tendency to make a huge joke of the legislative process.

Various sections of the civil society profiled by THISDAY in the state are of the consensus that the action of the State Assembly was dishonourable with many calling on all sides to demonstrate a sense of maturity in their line of duty.

Though it could be argued that Nasarawa State House of Assembly did not set the ugly precedence of turning the hallowed chambers to a boxing ring, several Houses of Assembly like Rivers, Taraba and Kogi have had their own share of bouts akin to the free-for-all that was the distasteful hallmark of the 5th and 6th House of Representatives in Nigeria’s present dispensation. But the circumstances that surrounded the recent resort to violence in Lafia make the issue more peculiar.

At the heart of the of the debacle is Nasarawa State Governor, Tanko Al-Makura’s appointment of 11 Sole Administrators to administer the 11 Local Government Councils, whose tenures expired Thursday, 31st March after two years in office. The state has 13 Local Government Areas (LGAs) with two councils’ tenures yet to elapse.

In a speech during the inauguration of the newly constituted local councils, Governor Al-Makura invoked a “Doctrine of Necessity” needed to avoid a vacuum” at the LGs. However, Al-Makura’s executive fiat did not go down well with a section of the State Assembly, which accused the governor of illegality and demanded that elections into local council positions be

Pandemonium broke out at the hallowed chambers of the Assembly when the Majority Leader, Mr. Tanko Tunga, moved a motion for the suspension of six members of the assembly for daring to challenge the action of the governor…But in a swift reaction, the six members expressed reservations over their colleague’s motion alleging that other members had been induced by the governor to support the “illegality.”

Nasarawa lawmakers in a free-for-all

conducted without “any deliberate delay.”

Pandemonium broke out at the hallowed chambers of the Assembly when the Majority Leader, Mr. Tanko Tunga, moved a motion for the suspension of six members of the assembly for daring to challenge the action of the governor.

But in a swift reaction, the six members expressed reservations over their colleague’s motion alleging that other members had been induced by the governor to support the “illegality.”

What ensued was a charged atmosphere, where the lawmakers threw caution to the wind with some members attempting to take custody of the maze while others engaged in physical combats with the use of furniture as shields or attack weapons.

Many of the lawmakers involved in the fracas had their clothing torn to shreds with a handful sustaining physical injuries.

THISDAY reported that the Deputy Speaker of the Assembly, Godiya Akwashiki, who presided over the plenary, and four members of the PDP abstained from the free-for-all.

It however took a motion by Mr. Daniel Ogazi, representing Kokona East State Constituency for the indefinite adjournment of the House to bring the ensuing commotion to an inglorious end.

At a press briefing late Monday addressed by the Chairman of the House Committee on Information, Mr. Makpa Malla, who incidentally is a member of the six dissidents, the assembly members alleged “executive recklessness” by Governor Al-Makura, saying the appointment of the 11 Sole Administrators ran afoul of democratic tenets as the governor did not even bother to consult with the Assembly before taking the action.

“As you can see, this is the executive room of the State Assembly, where we sit down every morning (of plenary) to discuss issues that will bring development to the state and the country at large. Categorically, I want to state here that the division which caused this chaos was as a

result of the appointment of sole administrators by the governor, and as a responsible House, where some of us are lawyers – we insisted that the right things must be done.

“The constitution of the federal Republic of Nigeria in Section 7 sub section 1, as amended, guarantees a democratically elected system of local governments and the constitution defined how the local government system, structure should be run. That is why we are kicking against the appointment of the sole administrators which only existed in military era and as respecter of the rule of law, we must ensure that the executives must also respect the rule of law.”

The lawmaker called on the people of the state to remain calm and be law abiding as he assured that the law will take its course on the matter.

While all the confusion ensued, Deputy Speaker Akwashiki, who is a member of the minority Peoples Democratic Party (PDP), stood with the lawmakers, who supported the governor’s action. He even announced the suspension of the six dissident members and made it clear that the governor had the prerogative to have so acted.

Akwashiki, who spoke to reporters on the issue on Wednesday in Lafia revealed that the crisis was beyond the governor appointing SAs for the LGs but also a fallout of the misconduct and disrespect to House Rules by the suspended six.

Akwashiki revealed that the suspended six were seeking to takeover leadership of the Assembly by trying to impeach the Speaker and himself. He denied that he was bribed by Governor Al-Makura.

Reactions have continued to generate from the fallout of the crisis from a cross-section of the state. The major opposition in the state led by former Minister of Information, Labaran Maku came out blazing in support of the suspended six lawmakers.

In a press statement signed by Emmnuel Yaro, State Secretary of APGA in Nasarawa, the party

decried the action of Governor Al-Makura and blamed him for being at the root of the crises.

“APGA as a true party of progressives condemns in its entirety, the unconstitutional behaviour of the Governor of Nasarawa State in respect to the appointment of Sole Administrators to the LGs. “In this regard, we stand with those members of the Nasarawa Assembly opposed to this illegality. Sole Administration of LGs is not only illegal and unconstitutional but also an aberration in a democracy.

“Tanko Al-Makura should therefore be held responsible for the fracas in the Assembly. It is a shame for the Governor to say that his decision was to avoid a vacuum is created by his APC administration for the fear of suffering from defeat if democratic elections are to be held.

“President Buhari, who is commonly referred to as a man of integrity should call Al-Makura’s maladministration to order to save our democracy,” the strongly-worded statement read in parts.

When THISDAY asked for a legal perspective to the show of shame, a Professor of Constitutional Law and Dean, Faculty of Law of the Nasarawa State University in Keffi, Abu Kana said the constitution was clear on the issue in Section 7 Sub section 1 which made provision for only a democratically elected leadership at the local government level.

The erudite scholar disclosed that an earlier precedence was set on the issue as in the case between Abimuku and the Nasarawa State Government in 2007, where a court of competent jurisdiction delivered judgment on the issue, which gives weight to the position of the aggrieved lawmakers.

The PDP leader in Nasarawa State, Alhaji Yusuf Agabi charged the lawmakers to put the interest of the state above all other considerations and work together for the good of the people.

He called on them to resolve their differences amicably and give peace a chance.

19 17

T H I S D AY • TUESDAY, APRIL 12, 2016 T H I S D AY • TUESDAY, april 12, 2016

PERSPECTIVE

Now That the Mob Has ‘Convicted’ Saraki Tope Ajayi reckons that the latest turn of events in the media trial of Senate President Bukola Saraki is a major diversion and a disservice to the nation’s justice system

L

ast week must have been the lowest point in Senator Bukola Saraki’s political career. Quite literally speaking, he was dragged to the market square, denuded, and sprayed with opprobrium so thick that his traducers would hope never washes off.

As the prosecution chief witness reeled out fantastic stories of serial cash lodgments and illegal salary earnings, everyone gasped in disbelief. Powered by the social media, the stories leapt across boundaries within seconds. As the stories were retold and re-circulated, they grew weirder and wilder. Cash lodgments totaling N70 million became N70 million paid into Saraki’s account 70 times in one day! Some said it was actually $70 million dollars paid into his account 50 times in a day.

People brought out their calculators to multiply 70 million by 50, still the sheer absurdity of the result did not clear their minds. As the stories grew wilder, public anger against Saraki grew in geometric proportion.

He was brutally savaged in the social media, ridiculed in the newspapers, cursed in the market places, abused in motor parks, and mocked by his political enemies. It was a timely diversion for a country brought to its knees by fuel scarcity. To an anguished people, who have to rely on the black markets to keep their lives going, this was a comic relief. The Saraki story became the new tales by moonlight!

If this was all that Saraki’s political opponents set out to achieve; they have done a good job so far. Never before has a number three citizen in the land been so publicly humiliated. In fact, it is difficult now not to think that the damaging testimony of the prosecution witness was an end by itself; calculated as it were, to achieve this very objective of eroding the Saraki brand.

Anyone familiar with court proceedings would clearly see that what happened at the tribunal last week was more evocative of an inquisition, programmed to pander to the mob, rather than a trial meant to serve the cause of justice.

What became clear also was that Saraki is on trial in two courts: the court of law and the court of the mob. Even as the trial at the court of law is still at a very early stage, he has already been found guilty and condemned in the court of public opinion.

As one commentator noted last week, the prejudicial value of the prosecution’s story overwhelms its probative value; but who cares! The prosecution counsel, Rotimi Jacobs is a very smart lawyer. He knows his case rests on a very weak foundation.

Therefore, if the only conviction he is able to get in the end were in the media and the motor parks, the mission would have been accomplished.

In his testimonies so far, what the prosecution witness has failed to show was how his stories relate to asset declaration offences for which Saraki was charged. At best, the link between his testimonies so far and the charges remains circumstantial.

Assuming it was true that 50 lodgments were made into an account in one day, this would appear suspicious on the face of it, but it does not prove anything. It is certainly not a crime for anyone to choose to make 100 payments into his account in one day, if he so decides. What is potentially criminal was how he acquired the money, not how it was paid into an account.

So far, the witness has only succeeded in instigating the public and exciting mob imagination with suggestive stories and conspiracy theories, without proving any case of wrongdoing. Perhaps, more significantly, we should ask what the issue of Saraki collecting salaries after leaving office has to do with assets declaration.

Was the prosecution trying to prove that

Saraki...looking unto Him?

the half a million naira or so that he was allegedly receiving as salaries after leaving office was used to acquire the assets under trial or in off-setting some of the loans he was said to have taken? This particular aspect of the testimony was nothing but sheer mischief, targeted at damaging him in his home state and nothing more.

Otherwise, one should ask, which of the

In fact, it is difficult now not to think that the damaging testimony of the prosecution witness was an end by itself; calculated as it were, to achieve this very objective of eroding the Saraki brand.

Anyone familiar with court proceedings would clearly see that what happened at the tribunal last week was more evocative of an inquisition, programmed to pander to the mob, rather than a trial meant to serve the cause of justice

13 charges against him does it apply to?

This case, therefore, is like dragging a man before a court for sleeping with another man’s wife, then proceed to argue that he stole money. Then when you were asked how the two were related, you say oh, you were just trying to prove that it was the stolen money that he used in enticing the woman. Anyone interested in justice should still ask for what offence exactly you were charging him.

Many have wondered why Saraki’s lawyers have failed to raise objections to some of the stories told by the prosecution witness, especially when they all seemed to have bordered on allegations of financial crime rather than assets declaration. Even though they noted that they reserved their objections to the time of cross-examination, my guess is that they had been caught unawares. They must have come to the tribunal ready to defend a case of asset declaration and not to prove that their client was not a money launderer.

They must have come to the Code of Conduct Tribunal to hear how the Code of Conduct Bureau conducted its investigations into Saraki’s assets and how they came to the conclusion that he had not fully declared his assets, only to be confronted by EFCC agent reeling out investigations allegedly conducted by the EFCC. They must also have wondered whether the case was an EFCC case or a Code of Conduct Bureau case; and why, if it was a case of financial crime, they were not at a high court where cases of financial malpractices should ordinarily be tried, instead of a Tribunal. Saraki has been shouting that his case was political, but his lawyers must have assured him they could get him justice in the courts; now they should know better.

Jonathan Swift, said truth limps, while falsehood flies. Truth would eventually catch up, but by the time it does, falsehood would have done its damage and truth’s

victory would at best be puerile. Could be that by the time Saraki’s lawyers begin cross examination, they would be able to destroy the stories of the prosecution witness, and quite improbably under this political circumstance, even get their clients off the hooks; but the damage to Saraki would have been done.

This is the mortal danger of trial by the mob; it runs counter to the natural cause of justice: the guilt of the accused, rather than his innocence is presumed. All Saraki’s political opponents that are gloating at his travails should however realise that what is being set before our eyes, is a very dangerous precedence. This is not Saraki on trial, but the entire political elite.

Mr. Danladi Umar said he made a mistake in dismissing the case against Bola Ahmed Tinubu in 2011, and therefore could not apply the same standard of justice in the case of Saraki; all well and good. What is certain is that a Pharaoh would mount the throne someday soon, who would not know any Joseph; and all chickens would come home to roost!

Perhaps, what is also unprecedented about Saraki’s trial is the overwhelming support he had received from his colleagues in the Senate. Under president Obasanjo alone, we had five Senate Presidents: Evan Enwerem, Chuba Okadigbo, Anyim Pius Anyim, Adolphus Wabara and Ken Nnamani. Some were removed with ignominy for no apparent infraction other than refusal to do the bidding of the Executive.

The current class of Senators must have been familiar with recent history of leadership instability in the Senate and how the highest lawmaking body in the land could easily be turned into an appendage of the executive. I do not think that any of them who are standing with Saraki are doing so because they think he is a saint. What has been clear to them from the beginning, however, was that this particular trial is not about corruption.

In fact, it is not even essentially about Saraki. What is on trial is the very independence of the Senate and its right to freely choose its own leadership.

Those who want to get Saraki out must have calculated that all they needed to do was to tarnish him as much as they could so that the Senators would not even want to touch him. They have been gravely mistaken.

They have failed to take into account that this is the most educated set of Senators we have had in a long time, if not ever. They could easily see though the subterfuge; and that is why even as he was being roundly vilified by the public last week, Senators were still insisting that he remains their only choice as Senate president. However, by so declaring, the Senators were not demonstrating their loyalty to Saraki, but to the principle that is necessary for the preservation of our democracy.

I could see that some have started circulating text messages that Saraki should resign. They said a certain Prime Minister of a certain country had resigned after he was mentioned in the Panama papers. What they failed to add, however, was that the said Prime Minister resigned because he admitted to a wrongdoing.

Pray, what wrongdoing has Saraki admitted to? What wrongdoing has he been convicted for? So, why should he resign?

Still, the argument remains that we must not allow politicians to achieve through the courts, what they failed to achieve on the political field. In the end, it is our hard-earned democracy that is on trial. No one, therefore, should weep for Saraki; for the bell tolls for us all.

-Ajayi wrote from Abuja

18

T H I S D AY • TUESDAY, APRIL 12, 2016

UPDATE&TRENDING

Bayelsa APC’s Internal Crisis Deepens

The crisis within the leadership of the All Progressives Congress in Bayelsa State is not one to go away any time soon, writes Segun James

T

o say that things aren’t going on well with the All Progressives Congress (APC) in Bayelsa State would be stating the obvious. The crisis now rocking the party has been simmering on the background for some time and every effort made by party leaders in the state to contain it has been to no avail as it burst open last week.

The state chairman of the party, Chief Tiwei Orunimighe in an outburst had alleged that a former governor and the party’s candidate in last year’s governorship election, Chief Timipre Sylva was collecting money from non-party members in the state to nominate them for federal appointments.

Tiwei in company with the state secretary of the party, Daniel Marlin went further to place four members of the state working committee on suspension for their loyalty to the former governor. However, incensed by the action of the party chairman, 18 of the party’s state executive committee, who were angry that the chairman took such a weighty decision as suspending four of them without consultation came out to denounce the purported suspension.

In a statement by the state publicity secretary, Panebi Fortune, the 18 stated that, “At an emergency State Executive Committee meeting held today, 1st of April, 2016, the following decisions were reached: That cases of Gross Misconduct, Financial Embezzlement, and Antiparty Activities have been brought against the State Chairman of the party, Chief Tiwei Orunimieghe, the Deputy State Chairman, Mr. Eddi Julius and the State Secretary of the party, Mr. Daniel Marlin.

“The Bayelsa State Chapter of the party, this day, therefore places the aforementioned individual on an indefinite suspension pending the conclusion of the investigations. In the interim, the Senatorial Vice Chairman, Mr. Joseph Fafi and Mr Alabo Martins are to act as Acting State Chairman and Acting Secretary respectively.”

But the chairman in a statement dismissed his suspension, saying as a member of the national executive committee of the party, his suspension is beyond the state party. In a surprise move, Tiwei instead suspended Sylva from the party.

He went further to give reasons for the crisis the party.

Tiwei accused Sylva of selling nominations for federal appointments to non-party members to the chagrin of the party and its members.

He said Sylva had promised that the days of “monkey dey work, baboon dey chop” are over, but they were surprised that he had gone contrary to his promises, leaving the members angry and bitter.

The Sylva group dismissed the allegation, saying Tiwei and “his gang” were indeed being sponsored by Governor Seriake Dickson in a bid to frustrate Sylva’s case against him at the election tribunal. Sylva, in a statement by his media adviser, Doifie Buoboriko cautioned Dickson to desist from his efforts to destabilise APC in the state through the circulation of falsehood and the sponsorship of disaffection in the party.

Sylva accused Dickson of using some “discredited and suspended” officials of APC in the state as moles to try to cause internal disaffection and blackmail the party and its leaders.

He warned that Dickson’s devilish conspiracy against APC will always be exposed and demolished, saying it is an effort in futility, as he will eternally fail in his attempts to dissuade key members of the party.

“Of late, Dickson and his party, Peoples Democratic Party, have re-enacted their pastime of spreading falsehood about APC and its leaders in Bayelsa State and trying to create dissension where none exists. They had tried that before and during the last governorship election in the state. When they failed miserably, they turned to forces external to Bayelsa, but inside the election management body and armed militia community, which they used to steal the people’s votes.

“After he was awarded victory, one would have thought that a man, who ‘won’ election would concentrate on governance. But Dickson

Sylva and Dickson...the rivalry continues

would not. Living under the shadow of fear of losing the stolen mandate, since APC filed a petition at the election tribunal, Dickson has applied every available mischief to try to destabilise the party and blackmail its leaders.

“They have now procured the services of some discredited officials of APC, who were suspended recently. These renegades are being used by Dickson and PDP to spread wild, unsubstantiated allegations against Sylva and the Minister of State for Agriculture, Senator Heineken Lokpobiri.

“Fabricating stories about Sylva and APC has proved to be more than just a passing fad for Dickson. It has become policy – the only ostensible policy of the administration since his swearing-in.”

He cried that an “email from Dickson’s media aide, Daniel Markson (dmb2co@yahoo. com) to some reporters on Sunday, April 3 at 16:24 hours, clearly showed how the Dickson government throws caution to the wind in its haste to blackmail APC. “Dickson, who has since been awarded victory at the governorship election manifested understandable nervousness on the governorship seat. But there should be a limit to anxiety. He

To say that things aren’t going on well with the All Progressives Congress (APC) in Bayelsa State would be stating the obvious. The crisis now rocking the party has been simmering on the background for some time and every effort made by party leaders in the state to contain it has been to no avail as it burst open last week

should stop his mission in futility and await the outcome of the electoral courts. Neither his nervousness nor his current mischievous publications can stop the wind of justice that is about to blow him out of his usurped seat.”

An APC chieftain, who pleaded anonymity, said it was the unbridled ambition of Tiwei to be made the deputy governorship candidate of the party that was responsible for the present face-off. According to him, Tiwei has been bitter since he was denied that position by Sylva.

He said that has been the real issues since the nation was “inundated with the dance of shame by some disgruntled party executives of the Bayelsa State APC’s greed and inordinate ambitions”.

“While many have expressed shock over the wild allegations these avaricious self-seekers have made concerning His Excellency, Chief Timipre Sylva, some of us close observers are not the least surprised.

“The telltale signs have always been there, but for the love of the party and with a bigger picture in mind, the excesses of these ignoble actors were overlooked. Not without some chastisement though, like a leopard whose spots can never change, the unbridled cupidity inherent in these fellows has become evident for all to see.

“Let me state it expressly here, in this business, loyalty is key. As a matter of fact, in the school of leadership, loyalty is a major course to be passed, if there must be an upward progression.

You can never be promoted if you fail this major course. You may even get axed from a system, if you are discovered to have failed this all important course.

“We are aware of the nocturnal meetings between the gang leader, Tiwei Orunimighe and the Bayelsa State Governor, Henry Seriake Dickson and that Tiwei wasn’t working alone.

Who would handsomely reward such unstable characters, who hobnob with your adversaries?

“Double dealing is a clog in the wheel of progress. You can never get far with it as it is bound to boomerang somewhere along the way. Mind you, loyalty in this context must be absolute, not partial or half-hearted loyalty, and oftentimes, your loyalty is tested, thus, you need a persevering spirit to excel in this course.

“Now, let’s critically examine the case brought before the court of public opinion, the very case these protagonists want President Muhammadu Buhari to look into. The allegation leveled is double barreled, and I implore all to join me in analyzing these issues, so as to help us unravel the truth. We were told that His Excellency,

Chief Timipre Sylva has merchandised the appointive slots reserved for Bayelsa State. Such lie makes the heavenly ordained principal of lie to quiver in hell.

“The Minister of Agriculture and Rural Development’s appointment as at when it was given was a masterstroke that created pandemonium in the opposing party. Senator Heineken Lokpobri’s choice was purely borne out of political consideration given his pedigree.

“We were also lied to, that Sylva is getting appointment for non-party members. This is perfidy in an unadulterated form. Now, on the list of five persons that have made some people become overnight sufferers of insomnia, let’s quickly take a peep at them and also weigh their financial muscle to ascertain if there’s any validity in the claim of Sylva’s accusers. We shall also see if those on the list are unworthy of being on the said list.

“Who in his right senses would say Sir Tonye Okio is not a member of the APC? He is the state organising secretary of the party. This is a man, who has stuck with his boss through thick and thin and even suffered incarceration, when he was arrested and imprisoned on the order of Dickson for his unflinching loyalty.

What is wrong with rewarding his steadfastness?

Secondly, it is ludicrous to even imagine that Sylva would require some financial inducement from a man who is more or less like a son to him. What has Tonye Okio got to offer Sylva financially?

“Another name on the said list that gladdens my heart is that of Doifie Buokoribo. This man is a rare breed, when you talk about loyalty.

He stood with Sylva when it wasn’t convenient to. Weathered the storm with Sylva even at a time when Sylva was ostracised by those he least expected. Doifie was Sylva’s Chief Press Secretary, and went ahead to be his media adviser after Sylva left office. A thorough professional journalist, what does he have to offer Sylva monetary wise? And what is wrong with giving Doifie an appointment?

“The name Julie Okah may not ring a bell with the Bayelsa State APC family, but she has been there with Sylva all along – served as his executive assistant when he was governor, and has remained with him through his trying period.

She went back to her law practice after Sylva left Creek Haven, but she has never faltered in her loyalty. She toured the state with him during the campaigns. She is a bonafide member of the APC. READ FULL TEXT ONLINE

T H I S D AY TUESDAY APRIL 12, 2016

19

ADVERTORIAL

20

TUESDAY, APRIL 12, 2016 • T H I S D AY

FEATURES

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

Changing the Fortunes of Women Farmers In Nigeria, women farmers work hard to till and cultivate farmlands. They seldom own the lands they work on but make up the largest percentage of workers on them. But Synergos, a non-profit organisation, is working to change the narrative as part of efforts to minimise rural poverty and feed the Nigerian populace. Chineme Okafor writes

Women farmers

“

We are not telling them what to do, we are listening to them and trying to find out what we can do together.

Most states don’t have policies on agriculture and this is the first time most of them are thinking about setting up policies on agriculture because of the current revenue crunch.

“We are investing in the role of women in agriculture. 70 per cent of agriculture workers are women, yet they are poor. If women make money, it goes to the family, if men make money, maybe it goes to the family, maybe another wife,” said Adewale Ajadi.

Ajadi is the country Director of Synergos Nigeria, a non-profit organisation that recently got support from the Bill and Melinda Gates Foundation to work with rural subsistence farmers in Kaduna, Kogi and Benue States to develop solutions to confront the difficulties they come across when they cultivate their grounds.

He explained to THISDAY when Synergos organised a hands-on workshop in Abuja to kick start the pilot scheme and where select female and male smallholding farmers from the states met to brainstorm on some of the best solutions available to help them overcome the challenges they put up with in their farms, that this time, greater thoughts were devoted to widening the space for rural women farmers to play big in the ancient but dynamic sector.

He admitted however that the subtle introduction of gender slant on its approach was to accommodate and improve on the efforts women bring to the mix. According to him, the choice was deliberate and would also be implemented tactfully without raising unnecessary prejudicial dusts.

His reasons just like that which Italy-based World Farmers Organisation (WFO) had proffered in the past were simple – women do not have access and control over the lands they till and cultivate even when they provide

the largest percentage of the workforce available for the agricultural sector, in that way, there are deep cultural practices that must be appreciated in trying to improve their productivity and profitability in agriculture.

“Our work is to work on all of these dimensions and not to be blinded by what is politically correct and what is difficult or

The farmers’ organisation said that women farmers who constitute 43 per cent of the world’s agricultural labour force have through their efficient efforts in farming fields across the world, provided countries the backbone on which their agricultural sectors have thrived and survived over the years notwithstanding the extant limitations that are often before them

what dimension one government wants,” explained Ajadi.

He further said: “We are working with the farmers to make sure that for the first time in a generation, we are moving away from people being rewarded by virtue of who they know to a new system of people being rewarded for what they produce.”

“We have to do it with them because these are cultural practices that span generations.

If we come and dictate to them saying they must treat women this way, they will shut us down and it will not work.

“If we can find things that can put women in a position where they are earning from their hard work, then we are not working through the husband but through them,” he added.

According to Ajadi, “there are products from cassava that if we can get the pastoralists to use for their cows, sheep and goats, it will reduce conflict that we see today. So, we have these products, people who produce cassava, who does the scrapings of cassava peels that are the foundation for this, it is the women, and these are new products.”

The WFO, an international organisation of agricultural producers that aims to strengthen farmers’ positions within the agriculture value chains, and with a particular focus on smallholding farmers, had recently credited women farmers for helping to sustain growth recorded in rural economies and food security.

The farmers’ organisation said that women farmers, who constitute 43 per cent of the world’s agricultural labour force have, through their efficient efforts in farming fields across the world, provided countries the backbone on which their agricultural sectors have thrived and survived over the years notwithstanding the extant limitations that are often before them.

Buttressing WFO’s assertions, Ajadi said that what Synergos intends to do with its new scheme – the State Partnership for

Agriculture (SPA), was to raise the bar for the subsistence farming often engaged in by women and others to become profit yielding ventures across the three select states first.

He said: “What we are working on in a country where agriculture is about to be the critical factor, is that we are being funded by the Bill and Melinda Gates Foundation to work with states to make sure that their agricultural system produces and is more effective.”

“Now if you look at it from the point of view where we are coming from, the states are really the ones that have landnfor agriculture and they are also the ones that have the farmers. Our goal is to listen to the states and engage them to produce the solutions that work, so we are trying to create solutions in clusters across states.

“We are looking at making the agricultural systems in Nigeria to be effective and deliver starting from these partners from Kogi, Kaduna and Benue states. We can work on the system, see its challenges and also see where we want to be in the future.

“We are working on that and also nutrition because being hungry is not actually the problem of nutrition. In actual fact, in Nigeria, the more rich you are, the less nutritionally rich you will be and so there is an invisible hunger and micro nutrients are not going to where they should go,” explained Ajadi.

He noted that Synergos was committing to reduce global poverty through its plans.

These plans he explained would push for stable partnerships with state governments in ensuring that agricultural practices especially amongst women are more efficient, effective and transformed from subsistence farming to business.

He said the plan is to utilise a systemschange approach in reorienting and improving the capability of these key actors to practice agricultural systems that would rather become transformational.

21

• T H I S D AY TUESDAY, APRIL 12, 2016

FEATURES

Another set of Women farmers

At the centre of this transformational agricultural system, Ajadi said was the focus on gender inclusion and nutrition-sensitive approaches to food production, particularly cassava and rice.

“With the projection of a doubling of the population of Nigeria by 2050 and the perennial challenges facing production and processing of agricultural commodities, there was need to change the face of agriculture in Nigeria,” maintained Ajadi.

Through the SPA, he disclosed that the Bill and Melinda Gates Foundation funded programme would provide farmers in Kaduna, Kogi and Benue with new farming techniques available in other developed countries of the world.

“Our approach to Nigeria’s agriculture is to ensure that federal and state agricultural leaders themselves drive agricultural transformation while Synergos will provide the craft necessary for the systemic change across the complex issues of poverty,” Ajadi stated.

We intend to change people’s mindset, shifting thinking from agriculture as an isolated underdeveloped sector, to agriculture as a transformational growth opportunity which can impact gender equality and improve nutrition

L-R: Chairman of Phillips Consulting, Folusho Phillips, Minister of Agriculture, Chief Audu Ogbeh and other participants at an event in Abuja...recently

He also clarified the reasons why Synergos set up the Abuja workshop, saying, “this would ensure working top-down and bottom-up to take a holistic approach to agriculture which includes linking federal and state level solutions to create a cohesive and coherent approach.”

“We intend to change people’s mindset, shifting thinking from agriculture as an isolated underdeveloped sector, to agriculture as a transformational growth opportunity

which can impact gender equality and improve nutrition,” he added when he spoke more on the need to help women realise the inherent economic potential in what they do at their farms.

According to him, Synergos would work with the leadership of the agricultural ministries in the country to advance progress on a small number of high-priority interventions which he hopes would demonstrate tangible results and build the momentum with which

the adopted model and approach could be introduced to other parts of the country.

“We need to begin to see agricultural practices differently from what it is now. Our choice of gender inclusion is not necessarily to say that our men don’t do agriculture but to say that this sector has more women in its labour force, how then do we begin to translate their efforts into tangibles. We also need to find a way to let our youths get back to agriculture,” Ajadi said.

22

IMAGES

L-R: Anambra State Commissioner for Health, Dr. Josphat Akabuike; Senior Special Assistant on Special Duties to the Wife of Anambra State Governor, Ms. Amaka Ezike; Government and Community Relations Officer, MTN Nigeria, Mr. Henry Okechuku and the Chief Medical Director, Chukwuemeka Odumegwu Ojukwu Teaching Hospital, Awka, Dr. Lawrence Ikeakor, during an assessment exercise of the MTNfoundation hearing Aid support projects, in Anambra …recently

L-R: Manager, Etisalat Experience Centre Abeokuta, Taofeek Raheem; Manager, Teen Segment, Ifeoluwa Oyeyipo; HND 1 student, Moshood Abiola Polythecnic and winner of Cliqfest star prize of Hyundai Car, Ogundeyi Ayobami; Director, Student Affairs, Seyi Sobande and the Manager, Consumer Market, Etisalat Nigeria, Debo Agun, during the presentation of a car key to the winner of Etisalat cliqfest campus activation, at Moshood Abiola Polytechnic, Ojere Abeokuta, Ogun State…..recently

L-R: President, Eko Foundation, Prof. Imram Oluwole Smith; Chairman, Association of Lagos State Indigenes, Chief Layi Ajayi-Bembe and Member, Dr. Muiz Banire (SAN), during an Inaugural meeting and press conference by the foundation on alleged marginalise of Lagos indigenes in various appointment by the present administration, at Eko Club, Surulere Lagos....recently KOLA OLASUPO

L-R: Permanent Secretary, Lagos State Ministry of Home Affairs, Mrs. Ebunola Oladimej; Commissioner for Home Affairs, Dr. AbdulLateef AbdulHakeem; Chairman, Christian Pilgrims Welfare Board, Bishop Olusola Ore and the Board Secretary, Mrs. Olayinka Oye-Bamgbose, during the presentation of year 2015 Christians pilgrimage report to the State government at Alausa, Ikeja Lagos…..recently

T H I S D AY • TUESDAY, APRIL 12, 2016

Photo Editor Abiodun Ajala Email abiodun.ajala@thisdaylive.com

L-R: District Secretary/Chairman, Anniversary Committee, Evang. Lanre Koleoso; District Superintendent/ Host Pastor, Pastor. Anu Ojo; General Overseer, Mountain of Fire and Miracle Ministries, Dr. Daniel Olukoya and the wife of Minister of Works, Power and Housing, Dame Abimbola Fashola, during the 20th anniversary celebration thanksgiving of Christ Apostolic Church (C.A.C) Vineyard of Mercy, Sabo,Yaba, Lagos....recently DAN UKANA.

Former Governor of Ogun State, Otunba Gbenga Daniel; flanked by his wife Olufunke and former Minister of Miles, Alhaji Sarafa Tunji Ishola, after an interdenominational service to celebrate the 60th Birthday Anniversary of otunba Daniel, in Sagamu….recently

L-R: Minister of Communications Technology, Mr. Adebayo Shittu; President, Association of Telecommunications Companies of Nigeria (ATCON), Mr. Lanre Ajayi; Managing Director/CEO, Airtel Nigeria, Mr. Segun Ogunsanya and the Corporate Services Executive, MTN Nigeria, Ms. Amina Oyagbola, during a special reception in honour of the Minister of Communications Technology, in Lagos…

L-R: Director General, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Dr. Dikko Umar; Ag Managing Director, Bank of Industry (BOI), Mr. Waheed Olagunju and the Divisional Head, North, Omar Shekarau, during a collaborative meeting between SMEDAN and BOI, in Abuja….recently

23

T H I S D AY • TUESDAY, APRIL 12, 2016

BUSINESSWORLD NIBOR OVERNIGHT 1-MONTH

R A T E S 4.4583 9.1071

A S

NITTY 1 MONTH 2 MONTH 3 MONTH

A T

Group Business Editor ChikaAmanze-Nwachuku Email: chika.amanzenwachukwu@thisdaylive.com 08033294157

A P R I L 6.9949 7.2368 8.0819

6 MONTH 9 MONTH

8 , 9.2061 9.5872 10.5042

2 0 1 6

EXCHANGE RATE N197 / 1 US DOLLAR* *AS AT LAST FRIDAY

Quick Takes Egypt to Cut Fuel Subsidies

ECONOMY ON THEIR MINDS

L-R: Lagos State Governor, Akinwunmi Ambode; Vice President, Prof. Yemi Osinbajo; and Ogun State Commissioner for Commerce and Industry, Otunba Bimbo Ashiru, during the Nation Economic Summit, in Lagos...recently

Global Oilfield Services Market May Drop by 48% in 2016 Ejiofor Alike The latest edition of DouglasWestwood’s World Oilfield Services Market Forecast has reported that with the slump in crude oil prices, the global oilfield services (OFS) sector would continue to face trials and tribulations as the capital expenditure (Capex) in the sector fell by 38 per cent in 2015.

According to the report, adjustments to spending plans by operators are expected to continue well into 2016, compounding 2015’s decline by a further 10 per cent, representing a total of 48 per cent drop in the market this year.

Douglas-Westwood (DW), which has provided 25 years of commercial insight into the global energy industry said in the latest report that Africa had

ENERGY been the most robust region for OFS spend, with 2015 witnessing the highest number of deepwater wells drilled in the region since 2009.

This, the report said resulted in a one per cent increase in total offshore spend.

“Rig and crew expenditure is the sole driver of the increase with all other service lines seeing contraction in expenditure due to pricing reductions. Offshore rig and crew has been an exception to this trend due to drilling contracts still in place from before the market downturn.

However, upon contract expiry, these rigs are likely to command significantly lower day rates due to oversupply and declining

offshore drilling activity,” said the report.

Consequently, the report said it expected offshore Africa expenditure to decline seven per cent year-on-year over 2016-2020.

The report further acknowledged that the predominant driver of the current market downturn is the Organisation of Petroleum Exporting Countries (OPEC’s) oil production position – led by Saudi Arabia’s desire to maintain market share.

“DW estimate the number of development wells in the Middle East increased incrementally in 2015, however, OFS expenditure in the region fell by 18 per cent. This is due to a raft of cost cutting initiatives and contract re-negotiations undertaken by operators, including Saudi Aramco reducing service

pricing by some 20 per cent. The removal of Iranian sanctions is expected to bolster OFS expenditure growth in 2016, both onshore and offshore. Total expenditure growth for 2016 is likely to amount to three per cent, with an average growth rate of five per cent over 20162020,” the report added.

According to DW, the North American onshore market has undoubtedly taken the brunt of the industry downturn, with OFS expenditure falling 58 per cent in 2015 alongside a 62 per cent decline in onshore rig count and a 47 per cent fall in onshore wells drilled.

The report cited recent analysis

by Haynes and Boone, which indicate a total of 46 North American oilfield services Continued on page 24

FG Seeks JV Partners to Revamp, Manage 22 Depots Chineme Okafor in Abuja The Minister of State for Petroleum, Dr. Ibe Kachikwu has disclosed that the federal government was seeking joint venture (JV) partners that would refurbish and effectively manage the 22 depots that belong to the Nigerian National Petroleum Corporation (NNPC).

Kachikwu in a recent web podcast message to workers of the NNPC in Abuja stated that the government was looking at a new policy, which would see it advertise and invite JV partners to invest in the refurbishment of the depots.

The country’s products depots are: the Port Harcourt Depot, Aba Depot, Enugu

ENERGY Depot, Markudi Depot, Calabar Depot, Warri Depot, Benin Depot, Mosimi Depot, Atlas Cove Jetty and Depot, Satellite (Ejigbo Lagos) Depot, and Ibadan Depot.

Others are the Ore Depot, Ilorin Depot, Kaduna Depot, Minna Depot, Suleja Depot, Kano Depot, Gusau Depot, and Jos Depot.

The Gombe Depot, Yola Depot, as well as Maiduguri Depot are also part of the depots that the government looks to invite JV partners to refurbish through a competitive bidding exercise. “We are at the stage right now of looking at policies geared towards advertising our

depots and our pipelines for purposes of contracting joint ventures that will put in money, refurbish depots that have been abandoned for upwards of a decade, so that we can have the distributional network that we need to be able to solve this (fuel scarcity),” said Kachikwu in the web podcast.

The minister explained that it was not enough to just bring in products cargoes without having a functional pipeline network and depots to distribute them to other parts of the country.

According to him: “But if you bring the cargoes and they arrive in Lagos, if you have to send 3,000 trucks round the whole country, it takes an average of four to seven days to

do that, and the very next day, you’re back to the same place, so the sheer logistical nightmare is not what NNPC was set up to do, so we need to be able to get those pipelines back, get the depots functioning, push a lot of the responsibility to the major oil companies who are basically leaving us to do all the work and picking up the profit at the end of the tunnel.”

He noted that the long term solution to the country’s challenges of providing petroleum products to its citizens would be to, “throw private initiatives to the downstream.”

“We’ve got to have a situation where we create enough Continued on page 24

Egypt will reduce spending on fuel subsidies by nearly 43 percent in the 2016-2017 budget due mainly to lower global energy costs, officials said on Saturday.

Finance Minister Amr al-Garhy told a news conference state energy subsidies would fall to 35 billion Egyptian pounds ($3.94 billion) from about 61 billion pounds in the 2015/16 budget.

Consumers reacted angrily when the government cut spending on energy subsidies in mid-2014, a measure that caused domestic prices of natural gas, diesel and other fuels to rise by as much as 78 percent. They were reduced again in the current budget.

However, the deputy finance minister for fiscal policy said a decline in international oil prices would account for the bulk of the reduced subsidy spending in the next fiscal year.

“Most of the savings in petroleum product subsidies will be a result of lower global oil prices,” the deputy minister, Ahmed Kojak, told Reuters.

“There is also a saving of about 8-10 billion (Egyptian) pounds that will come as a result of new reforms that the Petroleum Ministry will outline in agreement with us,” he added.

Egypt is struggling to revive its economy since a popular uprising in 2011 shook investor confidence and drove tourists and foreign investors away. Its foreign currency reserves stood at $16.56 billion in March, down from about $36 billion in 2011.

The government has been trying to cut subsidies, which eat up a big chunk of the budget.

Israel Eyes $8bn Economic Boost

Israel’s cabinet on Sunday unanimously approved a plan for reducing greenhouse gases and increasing energy efficiency to benefit the economy.

Government officials expect the cumulative benefit to Israel’s economy would reach more than 30 billion shekels ($8 billion), the finance, energy, environment and economy ministries said in a statement.

“We intend to continue to invest in resources as needed to further reduce air pollution and greenhouse gas emissions,” Finance Minister Moshe Kahlon said.

Under the plan, which follows last year’s international climate accord in Paris, Israel will grant 500 million shekels in guarantees for loans to boost energy efficiency and 300 million shekels in grants for projects that will lead to efficiency in industry, the business sector and municipalities.

Israel has committed to cut per capita greenhouse gas emissions to 7.7 tCO2e (tonnes of carbon dioxide equivalent) by 2030.

This represents a reduction of 26 percent over emissions in 2005.

Militants Threaten Libyan Oilfields

Oil workers have been evacuated from three oil fields in eastern Libya because of fears of attacks by Islamic State militants, but production has not been affected because the fields are shut, oil and security officials said on Sunday.

Islamic State militants have launched frequent attacks on Libyan oil fields and terminals in recent months, damaging facilities but not taking control of them.

Unlike in Syria and Iraq, Islamist militants have never controlled oil fields in Libya, but officials worry this could happen in the future, along with existing material and human damage.

Mohamed al-Manfi, an oil official based in eastern Libya, said the Wafa field had been completely evacuated and the Tibesti and Bayda fields were partially evacuated after security forces warned of possible planned attacks.

A security source said told Reuters that fighters loyal to Islamic State had been mobilising in Nawfiliyah, a town between the extremist group’s Libyan stronghold of Sirte and the oil ports of Es Sider and Ras Lanuf.

“Gas pipeline vandalism is usually a manifestation of grievance with the community or militants”

Chief Executive Officer, GasInvest Limited, Dr. David Ige

24

T H I S D AY • TUESDAY, APRIL 12, 2016

BUSINESSWORLD GLOBAL OILFIELD SERVICES MARKET MAY DROP BY 48% IN 2016

companies have filed for bankruptcy since the start of 2015 – a number which DW expects to grow over the next 6-12 months.

“Offshore North American spend has also been hit hard by the industry downturn – with a 66 per cent decrease in shallow water wells drilled.

However, expenditure in the region has been supported by deepwater drilling, which has seen high day rate rigs remain on contract, resulting in an offshore OFS expenditure decline of only 19 per cent.

Post-2016 spend will decline consistently through to 2020 as these rigs come off contract, significantly reducing the average day rate of rigs drilling,” the report explained.

The report further noted that coiled tubing (CT) services would remain a bright spot within the OFS sector outlook, due to increasing utilisation at well sites across the globe.

“There is a clear industry trend towards longer and increasingly deviated drilling trajectories – supporting growth in the use of CT. Services with brownfield applications such as surface well testing, production testing, fishing and stimulation are also expected to see relatively strong growth through to 2020.

FG SEEKS JV PARTNERS TO REVAMP, MANAGE 22 DEPOTS

policy direction, such that people can get in there and actually do the business.

“We can take care of our own filling stations, NNPC stations and perhaps some of the affiliates that are going to be with us but that is a job we’ve done and done well but we can do it better.

“But ultimately, the business must go back to where it belongs, which is the private sector, not the public sector and until we do that, deal with the issue of pricing, which our price modulation has helped us manage, but not quite completely, we’re not going to solve the problem,” Kachikwu added.

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

Mobil Commences Payment of Oil Spill Palliative to Eket Communities Okon Bassey in Uyo After series of protests and agitations, Mobil Producing Nigeria (MPN), Unlimited, a subsidiary of American Oil giant, ExxonMobil has finally initiated payment of N1.12 billion oil spill palliative to Eket Communities in Akwa Ibom State.

The Manager Public and Government Affairs, Qua Iboe Terminal, Mrs Regina Udobong made this known at the projects execution kick off meeting and safety training in Eket Local Government Area of the state.

She revealed that the oil major has released 25 per cent of the total sum of money for the execution of projects in communities, adding that the money would be paid in four installments.

She said the next payment would be 15 per cent of the balance, indicating that nine per cent of the total sum would be for the project manager.

According to her, the amount is just for the projects in the communities, “I am not including the money we are paying for the supervision of the projects by the project manager which is nine per cent of the total cost”.

“We expect the Projects Manager to start with the disbursement of funds to the local contractors. We are talking of N1.12 billion for projects in Eket Communities”, she said.

Udobong stressed that materials to be supplied should be done by local contractors, adding that everything has to be done by members of the communities for empowerment.

She said the Projects Implementation Committee was set up for the execution

of Special Projects 11 for eight communities in the state as a result of oil spill.

On the major oil spill occurred from ExxonMobil facility offshore in Nov. 9, 2012 in the state, she said ExxonMobil has set aside allocation to carry out Special Project 11 in eight local government areas of the state.

She explained that “the communities from the eight local government areas set

aside different projects in the communities to be executed by the community themselves.

“We have 30 per cent of the amount for Ibeno, 26 per cent for Eket, 24 per cent went to Esit Eket and 20 per cent for Onna local government areas respectively”.

She posited that the communities in the affected local government areas were given a free hand to select specific

projects of their choice for execution.

Udobong said that the project Manager had a support agreement with ExxonMobil, saying any local contractors that abandon their projects would be held responsible.

Reacting, the Paramount Ruler of Eket, His Majesty Etim Abia expressed displeasure over the delay in the execution of the special projects for Eket

BRAINSTORMING ON THE ECONOMY

L-R: Dr. Doyin Salami of the Lagos Business School; Minister of Finance, Mrs. Kemi Adeosun; Dean, Lagos Business School, Dr. Enase Okonedo and renowned economist, Bismark Rewane at the breakfast meeting organised by Lagos Business School in Lagos …recently

Oil Price Slump: Snake Island Ibadan Disco Completes Free Zone, Nigerdock Target 30% Distribution Facilities Cost Reduction The Ibadan Electricity Dis- week has been completed.

Stories by Ejiofor Alike

The Chairman of the Snake Island Integrated Free Zone (SIIFZ), Mr. Anwar Jarmakani has said that the free zone and Nigerdock were determined to bring down the operational costs of oil and gas logistics and supply services by 30 per cent in the face of the slump in crude oil prices and in line with the zone’s commitment to promote foreign and domestic investment and improve Nigeria’s global competitiveness.

Speaking during a recent visit of the Comptroller-General of Nigeria Customs Service (NCS), Mr. Hameed Ibrahim Ali to the free zone in Lagos, Jarmakani said with globalisation, professionally and transparently managed free zones were a critical instrument to promoting foreign direct investment.

According to him, the Snake Island Integrated Free Zone is the first privately-owned, funded and operated free zone in Nigeria.

He noted that it is a

while other local governments have almost completed theirs.

He, however, called on the people of Eket to corporate with the contractors for a peaceful execution of projects.

Also speaking, the Contractor, Mr Joseph Inwang, of Union Consultant said that six per cent of the total sum would be deducted as VAT and Tax by the Federal and State Governments.

wholly-Nigerian owned free zone, occupying 252 hectares of land and offering a safe and secure environment for investors.

“We have made additional investments in excess of $500 million of private funds over the last few years in developing a unique, fully integrated oil and gas one-stop-shop on Snake Island,” he said.

He listed some of the achievements of Snake Island Free Zone to include, creation of over 6,000 direct jobs within the zone; supporting over 100,000 families through indirect jobs; delivering many landmark national projects for the oil and gas industry operators; delivering first fabrication for Total and Samsung on the Egina Floating Production Storage Offloading (FPSO) vessel project, and delivering over 27,000 training programmes.

Jarmakani noted that the zone which is currently training personnel of the Total and Samsung Egina FPSO project, had also trained over 6,000 people for the industry at the Training Centre in Snake Island.

tribution Company (IBEDC) has announced the completion of the massive upgrade of its distrubtion facilities and the replacement of obsolete equipment in some of the areas under its operational network.

The Deputy Managing Director of the company, Mr. John Ayodele said in a statement at the weekend that the company spent several millions of naira in the renovation and replacement of the facilities.

According to him, the areas included, the State House, Secretariat, Bashorun, Iwo Road and Oje Feeders, which cover customers in the State House, Agodi GRA, Ikolaba, Secretariat, Old and some parts of New Bodija, Immigration Office area, Bashorun Market area, Iwo road, American quarters, Geraldo areas, Old Tribune, Adeoyo Hospital area, Yemetu and their environs.

He added that the renovation work that commenced on the company’s Agodi Gate 2 x 15MVA, 33/11KV injection substation control room last

Ayodele, who further stated that the infrastructural upgrade had earlier impacted a five-day power outage on all of the aforementioned areas, said the renovation was carried on to replace all the obsolete and decrepit 11KV panels with new and modern ones to ensure that IBEDC provide optimum and efficient services to its valued customers Ayodele assured the general public and the company’s valued customers that IBEDC, as a responsive and responsible corporate citizen, was poised to meeting its service level agreement to revamp the electricity business under its purview.

Furthermore, he pleaded with members of the affected communities to be on guard against possible menace of vandalism against the company’s equipment and materials.

Ayodele also called on all security agencies to join in the fight against vandals within the neighbourhoods and communities.

“The protection of our fa-

Upgrade

of

cilities is key to our providing quality services,” he added.

He also appealed for customers’ understanding and cooperation in this time of low power allocation, adding tht “the situation will get better as assiduous efforts are on-going to bring succour to the electricity industry.”

Ayodele also solicited continuous prompt and adequate bill payments, vigilante watch over IBEDC facilities and support for the new tariff structure to help the company serve its numerous valued customers better, stressing that the company’s mission statement is to distribute effectively the available power supply to positively change the lives of its valued customers across the franchise.

The Chief Technical Officer, Mr. Ade Ayileka also confirmed that the renovation work was one of the several planned interventions across the company’s franchise area to improved supply and meet the yearnings and aspirations of the numerous valued customers.

A

WEEKLY PULL-OUT

‘THE DEVELOPMENT OF THE GAS SECTOR SHOULD BE MADE A NATIONAL PRIORITY’

12.04.2016

Executive Director and General Counsel, ExxonMobil Companies in Nigeria, Alhaji Sadiq Adamu

2/DASHBOARD

12.04.2016

A Trial Court is Not Obliged to Accept the Terms of an Agreed Sentence in a Plea Bargaining/ Sentencing Agreement PAGE 3

Sterling Partnership Mentors Nigerian Law School Students PAGE 4

Legal Issues Arising from Regulating the E-Commerce Sub-Sector in Nigeria PAGE 5

‘Keep Your Professional Network Active and Valuable’ PAGE 5

Ambassador Jaiyeola Aduke Alakija OFR -A Toast and Tribute PAGE 6

QUOTABLES

NBA Elections 2016: the Contenders PAGE 11 A ‘ democracy thrives and endures when the laws guiding the conduct of elections are well known and the citizenry are well informed on it. Taking from the gains of the 2015 general elections, it will be important for us as a country to entrench a culture of democratic values that will strengthen our nation.’

– Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami SAN

The “Panama Papers” and Robust Potential for the Nigerian Trust Service Industry PAGE 12

Maximising Internally Generated Revenue Under the Taxes and Levies Act 2004 PAGE 14

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

LAW REPORT/3

A Trial Court is Not Obliged to Accept the Terms of an Agreed Sentence in a Plea Bargaining/ Sentencing Agreement

A

Plea bargaining or sentencing agreement is a relatively new concept/practice in the Nigerian criminal justice system. It has been comprehensively provided for in both the Administration of Criminal Justice Law of Lagos State 2011 and the Administration of Criminal Justice Act 2015. By virtue of its provision in these laws, following a plea bargain and sentence agreement reached by the prosecution and the defendant, a trial court may, in convicting the defendant, decide that the agreed sentence is inadequate and may impose a heavier sentence only after informing the defendant of its decision to impose same. In the instant appeal, the Court of Appeal allowed the appeal on the ground that the failure of the trial court to inform the defendant of its decision to impose a heavier sentence than what was agreed, occasioned a breach of the defendant’s right to fair hearing.

Facts The Appellant together with two other accused persons, were arraigned before the High Court of Lagos State (the “trial court”) on a 16-counts information dated the 15th day of November, 2013, to which the Appellant pleaded not guilty to all counts. Prior to the commencement of trial, the Appellant together with the two other accused persons, entered into a plea bargain and sentence agreement with the Respondent, wherein it was agreed as follows: (i) that the charges against the Defendants should be reduced to a single count information; (ii) that the Defendants shall plead guilty to the said count; (iii) that each Defendant shall be sentenced to a term of imprisonment not exceeding 6 months and a fine in the sum of N50,000.00 only; and (iv) that the above terms shall be entered as the judgment of the trial court.

In accordance with the plea bargain and sentence agreement, on 31 October 2014, the Respondent filed an amended information containing one count of conspiracy to present false documents for visa application contrary to Section 26 (1)(c) of the Corrupt Practices and Other Related Offences Act, 2000. Likewise, on their part, the Appellant and the two other accused persons pleaded guilty to the amended information.

The trial court subsequently delivered its judgment, in which it convicted the Appellant and the two other accused persons and sentenced them to one year imprisonment without the option of fine, contrary to the plea bargain and sentence agreement and also without informing them of its decision to impose a heavier sentence on them.

Dissatisfied with the decision of the trial court, the Appellant appealed to the Court of Appeal, Lagos and raised a sole issue for determination, to wit; ‘whether the heavier sentence of one year term of imprisonment imposed on the Appellant by the trial judge can stand or is not vitiated by the non-compliance by the learned judge with the provision of sections 76 (8)(c) and 76 (9)(b) of the Administration of Criminal Justice Law of Lagos 2011 (“ACJL”)’. No brief of argument was filed on behalf of the Respondent, despite the fact that the Appellant’s brief was duly served on them and hearing notices were issued. As a result, the appeal was heard on the Appellant’s brief alone.

In arguing the sole issue, the Appellant contended that by virtue of the provisions of section 76 (8)(c) of the ACJL, the trial court ought to have

Additionally, the Appellant relied on the principle of law to the effect that where a statue prescribes a procedure to be followed before an action is effected, such procedure should be complied with. On this premise, the Appellant submitted that the failure of the trial court to follow the steps provided for in section 76 (8) (c) of the ACJL renders the sentence passed by it on the Appellant void. She relied on the cases of ACHU v CIVIL SERVICE COMMISSION OF CROSS RIVERS STATE (2009) 3 NWLR (Pt. 1129) 475 and NSPA v AAGO (2001) 15 NWLR (Pt. 737) 627 and urged the Court of Appeal to quash the trial court’s sentence and to discharge and acquit her.

In resolving the sole issue in the appeal, the Court of Appeal held that a plea bargain reached by the prosecution and the defence is a contract per se, which ultimately has a binding effect on all parties to it. The Court of Appeal, thereafter, recognised the power of the Attorney General donated to it pursuant to section 75 of the ACJL, to consider and accept a plea bargain from a person charged with an offence. The Court of Appeal, additionally, recognised the discretion of a trial court pursuant to provisions of section 76 (8) of the ACJL, following a plea bargain and sentence agreement, to consider the sentence agreed and impose the sentence on a defendant if U.I Ndukwe-Anyanwu, JCA it considers same appropriate, or impose a lesser sentence than the one agreed or impose a heavier sentence, it considers to be appropriate, after having informed the defendant of such heavier sentence. The Court of Appeal noted further that In the Court of Appeal by virtue of the provisions of section 76 (9) of the ACJL, a defendant that has been informed of such In the Lagos Judicial Division heavier sentence may then either abide by his Holden at Lagos plea of guilty as agreed in the sentence agreement On Thursday, the 25th Day of February, 2016 or withdraw from his plea agreement, in which case the trial shall proceed de novo before a new Before Their Lordships judge/magistrate.

Furthermore, the Court of Appeal considered the Uzo I. Ndukwe-Anyanwu terms of the plea bargain agreement and held that Tijani Abubakar the terms are explicit and unambiguous and must Jamilu Yammama Tukur be given their ordinary meaning. The Court of Justices, Court of Appeal Appeal relied on the case of DALEK NIG. LTD. v CA/L/595C/2015 OMPADEC (2007) 7 NWLR pt. 1033 p. 402.

On the premise of the foregoing observations, the Court of Appeal, whilst declining to fault the Between discretion of the trial court in imposing a heavier Ataine Helen Bando ...... Appellant sentence on the Appellant than what was agreed, held that the procedure stipulated in section 76 And (8) (c) of the ACJL is mandatory and therefore, the failure of the trial court to inform the Appellant of Federal Republic of Nigeria ....... Respondent the heavier sentence before imposing same on her, denied the Appellant the opportunity to exercise (Judgment Delivered by Uzo I. Ndukwe - Anyanwu, JCA) her right of election under section 76 (9) (a) & (b), breached the terms of the plea bargain and sentence agreement and infringed the Appellant’s fundamental right to fair hearing.

The Court of Appeal resolved the sole issue in informed her of the heavier sentence it considered favour of the Appellant and allowed the appeal. appropriate, and which was more than what was In addition, the Court of Appeal, pursuant to the agreed upon, before imposing same on her. She powers conferred on it under section 15 of the relied on the case of ADAMS v UMAR (2009) Court of Appeal Act, sentenced the Appellant to 5 NWLR (Pt. 1133) 41. She submitted that the one month imprisonment and a fine of N50,000.00. failure of the trial court in this regard, deprived her of the right to opt out of the plea bargain and Representation sentence agreement as provided for in sections 76 (9) and 76 (10) of the ACJL and thereby infringed For the Appellant: A. Olumofin with B. Kushanu upon her right to fair hearing. She relied on section 36 of the Constitution and the cases of AG For the Respondent: Nil BENDEL STATE v AG FEDERATION (1982) 3 NCLR 1 and PDP & ANOR v INEC (1999) 11 Reported by Tochukwu J. Anaenugwu, Aluko NWLR (Pt.626) 200 @ 241. & Oyebode, Lagos.

4/NEWS

12.04.2016

R-L: Mrs. Hadiza Sa’eed, Senior Special Assistant to the CJN, Mr. Endurance Uhumuavbi, Mr. Seni Adio, Secretary SBL, Ms. Inna Ali, Dr. Babatunde Ajibade, SAN, Chairman of the 10th SBL Annual Business Law Conference Planning Committee, Hon. Justice Mahmud Mohammed, GCON, Chief Justice of Nigeria, Mr. Olumide Akpata, Vice Chairman, SBL (who represented the SBL Chairman), Mrs. May Agbamuche-Mbu, Mrs. Ifueko Alufohai, Mr. Agada Elachi, Mr. Isaiah Bozimo and Mrs. Funke Agbor during the Courtesy visit to the CJN by the SBL Council and members of the Planning Committee for the 10th Annual International Business Law Conference of the Nigerian Bar Association Section on Business Law (SBL)

L-R: Hon. Justice Adeyemi Candide-Johnson, Deputy Director General of the Nigerian Law School, Mrs. Toun Adebiyi, Mrs. Mia Essien SAN, Professor Oyelowo Oyewo and former President, Commonwealth Lawyers Association, Mrs. Boma Ozobia

Sterling Partnership Mentors Nigerian Law School Students Jude Igbanoi

Students of the Nigerian Law School, Lagos Campus had the rare privilege of career guidance from senior members of the legal profession and the Bench.

The mentors included Mrs. Mia Essien SAN, Hon Justice Candide-Johnson of the Lagos State High Court, Professor Oyelowo Oyewo, a former Dean of the Faculty of Law University of Lagos, Ifeoma Obasi, Julian Idornigie and other members of the Legal and Compliance Department of General Electric, Nigeria.

The annual mentoring event is a corporate social responsibility initiative of Sterling Partnership by the former President of Commonwealth Lawyers

Association, Mrs. Boma Ozobia and Mr. Israel Aye which has for over six years continuously given the Nigerian Law School students an opportunity to interact with judges and senior legal practitioners from various fields of practice.

In her career talk to the students Mrs. Mia Essien SAN encouraged them to be confident, polite and assertive.

Mrs. Essien advised female students to ensure that as they come into practice, they learn to strike a balance between family responsibilities and work.

She stated that skills acquisition is now an absolute necessity for any lawyer who desires to make it far in practice, encouraging them to consider gaining a thorough understanding of

Alternative Dispute Resolution as that would come handy in their practice.

Essien emphasised that any lawyer without a good command of spoken and written English practically has no place in legal practice, and in addition to this, she stated that a lawyer must have an analytical mind as that is what the lawyer requires to be successful.

Most importantly she advised students to take care of their appearance, according to her ‘You are an ambassador of your law firm, so your appearance matters a lot.’

Hon Justice Candide Johnson while speaking on ‘A Day in the Life of a Judge’ mentioned that the students would have the opportunity of going to the

Bench if they stay focused in their chosen area of practice and safeguard their integrity.

Justice Candide Johnson who is the first ADR judge in Nigeria got to the Bench as a judge in 2001, after a glowing career at the Bar for many years and became the first ADR judge when Lagos State initiated the compulsory court-connected ADR process in 2004.

He stated that a typical day in the life of a judge, contrary to what many think is not easy and straight forward and that outside of core judicial work, judges do a lot of other administrative work.

Speaking from the perspective of In-House Counsel, Ifeoma Obasi of General Electric narrated her career path from

The Capital Market Committee of the NBA Section on Business Law Holds 2nd Edition of Knowledge Impact Series The Capital Market Committee of the Nigerian Bar Association Section on Business Law (“the Committee”) held the 2nd edition of its Knowledge Impact Series at The Nigerian Law School, Victoria Island, Lagos on Thursday, 7th April 2016. The event was held pursuant to an invitation from Mrs. Toun Adebiyi, The Deputy Director-General of The Nigerian Law School, Lagos with a view to giving students a practical perspective of the Nigerian capital market.

The Knowledge Impact Series is an initiative of the Committee, which is in line with its core objective of formulating ways of enhancing the Nigerian capital market by engaging key stakeholders as well as aspiring legal practitioners.

The students had the rare privilege of listening to seasoned legal practitioners in the sector led by the Chairman of the Committee, Ms. Olubunmi Fayokun (a Partner at the law firm of Aluko & Oyebode).

Other members of the Committee who participated in the event are: • Mrs. Ayo Owoigbe, a Partner at the law firm of Banwo & Ighodalo, who provided an Overview of the Nigerian Capital Market;

L-R: Mrs. Folashade Oluyadi, Senior Associate, Olaniwun Ajayi LP, Mr. Kalu Abosi, Partner, SPA Ajibade & Co., Mrs. Jennifer Martins-Okundia, Senior Associate, Aluko & Oyebode, Mrs. Yewande Senbore, Partner, Olaniwun Ajayi LP, Ms. Olubunmi Fayokun, Chairman, NBA SBL Capital Market Committee, Mrs. Toun Adebiyi, Deputy-Director-General, Nigerian Law School, Lagos, Mrs. Ayo Owoigbe, Partner Banwo & Ighodalo, Ms. Feyisayo Oluyadi, Olaniwun Ajayi LP, Ms. Dolapo Bolu, Associate, SPA Ajibade & Co. and Mr. Yusuf Adewuyi, Counsel, Ayodele Olugbenga & Co.

• Mr. Kalu Abosi, a Partner at the law firm of SPA Ajibade & Co., who spoke about the Role of Solicitors in Capital Market Transactions; • Mrs. Yewande Senbore, a Partner at the law firm of Olaniwun Ajayi LP, who spoke about Preparing a Company for a Listing on The Nigerian Stock Exchange; and • Mrs. Jennifer MartinsOkundia, a Senior Associate

at the law firm of Aluko & Oyebode, who provided an Overview of the Nigerian Debt Capital Market.

The session was engaging and interactive as the students were given the opportunity to ask a diverse range of questions including how a young lawyer can become a capital market solicitor to the process to be adopted for securitisation transactions.

The NBA Section on Business

Law (“SBL”) is one of the specialist sections of the Nigerian Bar Association that was set up primarily to promote the professional development of Nigerian commercial lawyers and thereby raise the level of business law practice in Nigeria. The SBL has, at its apex, a Council of which Mr. Asue Ighodalo is the Chairman, and is comprised of 17 members drawn from diverse legal backgrounds.

active legal practice at Serenity law firm to the corporate world.

She admonished the soonto-be lawyers to ensure they stay focused and that as they come into practice, they should not think of their gender, but think of themselves strictly as lawyers.

According to Obasi, the best career path to being a good in-house counsel is to first gain some experience in active legal practice before migrating to the corporate world as in-house counsel.

According to her, discipline should be the watchword of an in-house counsel.

Professor Oyelowo Oyewo of the University of Lagos Law Faculty stated that he did not

choose a career in academics, but academics chose him.

He added that law teachers who are in legal practice are better placed to impact practical legal knowledge on their students.

However, he warned that it is unethical for law teachers to go about flaunting their credentials as legal practitioners on campus.

Professor Oyewo is the President of African Network of Constitutional Lawyers a consultant to the House of Representatives on Constitutional Amendment.

Senior Partner at Sterling Partnership, Mrs. Boma Ozobia charged the aspiring lawyers to ensure that they guard their integrity and character jealously as that is what would aid their career advancement.

Right of Reply Re: Solid Minerals: Ready for Take-Off with Launch of Roadmap Dear Mrs. Agbamuche-Mbu, Please permit me to express my profound gratitude for your series on the solid minerals roadmap in the past few weeks.

It has kept people like me updated on the activities of the ministry under the new Minister for Solid Minerals as he tries to make the country walk the talk this time in the monetisation of the country's "vast" solid mineral resources.

I am however under no illusions given our usual penchant to provide solutions to highly complex challenges only in seminar halls and talkshops without realising any real changes that reflect on the economy and lives of our people, that the challenges are easily surmountable. However, as identified by the Minister, a credible and realistic roadmap adequately resourced is a precondition to realising the objective of a viable and vibrant solid minerals economic sector.

I have noted in your write up today that your committee has successfully finished its work and submitted the roadmap to the Minister which is quite commendable. The approach of holding the document secret until so called stakeholders, the state governors make

their input is not the best in my humble opinion. The worldwide best practice is to put the report in the public space as a draft for all to read and make suggestions simultaneously so that precious time is not wasted in a serial review as currently conceived.

It is my humble view, given the primal stage of the solid minerals sector , the absence of enabling infrastructure for cost effective exploitation in the short term, the dearth of bankable certified reserves for most minerals except for limestone and one or two others, a roadmap that will enjoy widespread review prior to final adoption should be the preferred product.

Once again, let me say thanks for keeping us in the loop through your regular column.

I will crave your permission to inform you that Nigerian Society of Chemical Engineers as part of our contribution towards realising the objectives of the current government in the sector has chosen a theme for 2016 Annual Conference on solid minerals. It will be our pleasure to maintain exchange of thoughts on the subject as we elaborate our plans for a successful Conference.

Best regards, Onochie Anyaoku.

12.04.2016

/5

Legal Issues Arising from Regulating the E-Commerce Sub-Sector in Nigeria Akinpelu, Ayokunle Oluwatobi

T

he advancement of internet technology in the twenty-first century has transformed the world from a global village to a global spot.

Internet technology has changed the mode of communication, transformed traditional modes of business transactions and radically reshaped the commerce of nations around the globe. This immense transformation has raised new challenges of regulations and legislation. Particularly interesting is the integration between technology, commerce and law.

The prescription of law is essential for the guidance of the society; this can be achieved by either promulgating laws to curb conduct or promulgating laws for social engineering. Laws promulgated to curb conduct, lay emphasis on sanctions and penalties; while laws promulgated for social engineering, lay emphasis on building of institutions with little emphasis on restrictions. Unfortunately, while law lives in the relics of time, commerce is severely affected by technological

turbulence. The technological turbulence in the e-commerce subsector places immense pressure on law to respond by either curbing conduct or engineering societal changes.

Nigeria has certainly benefitted from this new global order of e-commerce transactions and has witnessed the exponential development of certain industries through the adaptation of technology.

However, the regulation of the ecommerce subsector has practically been left to the architecture of the internet and the ingenuity of the investors and technopreneurs, without any precise focal law to govern transactions and business behaviour on the internet. The regulation of the e-commerce subsector of the Nigeria’s commerce is fundamental to the national and economic development of the country. Regulation of this subsector ensures that key players are properly guided as to the required ethics; consumers are assured of a regulated service, while government generates the needed revenue to invest in the economy.

It is obvious that the regulation of the e-commerce subsector by the traditional laws of the offline community is fundamentally inadequate to deal with issues that are on the rise in the e-commerce subsector.

Protection of consumers from

exploitation and an unregulated electronic banking system; and legal status of companies providing traditional services by technology are issues that must be addressed by a proper regulatory framework.

The principal legal framework for consumer protection in Nigeria is over two decades old, the Nigerian Consumer Protection Council Act, 1992 Cap C25 Laws of the Federation 2004. The thrust of this legal framework is the provision of a council to act as a mediator,

negotiator and a conciliator between consumers and service providers.

Despite, the merits of the Act, it is undisputedly clear that the Act cannot meet the challenges of ecommerce transactions. Regulation of the e-commerce subsector especially as to the protection of consumers cannot be effectively achieved by placing supervisory duties on a council. Consumer protection in the e-commerce subsector should place a CONTINUED ON PAGE 13

Legal Personality of the Week Ozim Ifeoma Obasi

‘Keep Your Professional Network Active and Valuable’

My name is Miss Ozim Ifeoma Obasi. I work with GE International Operations Nigeria Limited as Senior Counsel, primarily responsible for GE Oil & Gas Business with a footprint in about 23 countries in Sub-Saharan Africa.

In my role, I support commercial operations and growth opportunities in the region, especially Business Development and Joint-Venture/Localisation Initiatives, in addition to any other legal and compliance support other GE businesses may require.

I joined GE in November 2010, having worked in private legal practice with the firms of Serenity Legal Union & Partners Port Harcourt and also Aelex Legal Practitioners Lagos.

I also worked as the Legal Advisor/Company Secretary for Oildata Wireline Services Port Harcourt, a subsidiary of Oildata Logging Services Houston.

My main area of focus besides legal advisory services was supporting the company’s business development team to expand its operations by venturing into Marginal Field Opportunities, JointVenture collaborations with both International and Indigenous companies, leading to the company’s successful outing in the first open bid-round in Nigeria in 2005.

I was called to the Nigerian Bar in 2000, and obtained an LLM in Energy Law & Policy/MBA in International Business Transactions from the Centre for Energy, Mineral Law and Policy, University of Dundee, Scotland. I am also admitted as a Solicitor of England & Wales.

As a lawyer, I am excited about making deals happen, and supporting my internal stakeholders get to a ‘yes’ with our customers.

I am a member of the International Bar Association, Nigerian Bar Association, and the International Federation of Women Lawyers. And have been given the opportunity to speak both locally and internationally.

Besides work, which is fun, I am also involved in my company’s Women’s Network, and enjoy mentoring younger colleagues within and outside the organisation.

In addition, I enjoy theatre performances and nature.

seniors in court that day were also very helpful.

Let us just say that I survived!

What was your most memorable experience?

I have quite a number of memorable experiences. The first was my call to Bar day. Growing up with a dad who was a Pharmacist, ruled by the world of science, it was tough negotiating my way out of sciences to law. Finally getting there was elating.

Successfully negotiating various multijurisdictional transactions have not only been enriching, but also fulfilling.

The number of public speaking platforms, including any opportunity to show case the beauty of my country leave me with very fond memories.

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

Yes I have, and it varies. At some point, it was the challenge of the area of specialisation to focus on. I wanted to do so many things, and had difficulty narrowing my choices. However, with the help of senior friends and mentors, I was able to navigate my career and focus on Oil & Gas, which I am enjoying tremendously at the moment.

Who has been most influential in your life?

My mum has been the most influential person in my life. God bless her soul. She graduated from University of Ibadan in 1964, at a time when it was not popular for women to go to school or have any form of personal aspirations, and devoted her life teaching others. Living in this era, I have no reason to let anything stop me.

She taught me values, resilience, optimism, and self-dignity. I learnt to keep an open mind, explore things, and remain true to self and God. The crowd may not always be right, so I learnt not to be afraid of being different or distinguishing oneself from the pack.

What was your worst day as a lawyer?

I would rather say, the day fear almost prevented me from talking. That was my first court appearance. I thought I had rehearsed what I was going to say well , and I comported myself, until it was my turn to speak. The words left my mouth, and I started stuttering.

The judge was actually very patient with me, as he realised that I was a new wig, and the

Why did you become a lawyer?

I grew up in the military era, and that irked my soul. I saw a country without justice, not quite emerged into nationhood, and a people in need of reorientation.

Law to me was a platform for social change and nation building. I loved it and still do. I did not imagine the commercial side of what I am doing today. Advocacy was my lure. I

Ozim Ifeoma Obasi

could not wait to wear the wig and gown.

The versatility of the law and the options that it brings make the journey as a lawyer much more interesting!

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

Of course I am a lawyer, and I will gladly advise any interested person to choose law. This is because; law opens your mind to a world of possibilities.

Besides private practice, there is so much a lawyer can do, ranging from corporate practice, teaching, government relations and policy. Law broadens your mind, and gives you the right perspective on things.

Lawyers are great influencers and change agents.

Do you want something positive to happen?

Convince a lawyer about it, and wait for the result.

My advice to aspiring lawyers would be to stay true to your dream. Find senior lawyers whom you respect and want to become like, and let them mentor you. Keep your eyes on the ball, and avoid pessimism. Your career is what you make out of it, so prioritise it. And most importantly, keep your professional network active and valuable.

The soft skills you need to succeed in life are usually not taught in the classroom.

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

I probably would have been a teacher or writer. I still write, and hope to be disciplined enough to get my works published someday.

However, somewhere deep within, I miss teaching.

I genuinely love to inspire people, and my parents were teachers. And for me, learning is the best gift to give another.

Where do you see yourself in ten years?

I see myself in the next ten years, continuing to add value to my generation, hoping to build a better Nigeria for posterity. I am proudly Nigerian and love to see it finally evolve into a nation that we all are proud to call our own.

6/TRIBUTE

12.04.2016

Ambassador Jaiyeola Aduke Alakija OFR -A Toast and Tribute

Hairat Ade≠ Balogun

T

o the last of the Mohegans Jaiyeola Aduke Alakija (hereinafter referred to as “Aduke”) 29th March 1921 - 27th March 2016.

She was born with a silver spoon in her mouth but changed it to a brilliant platinum spoon which will forever shine.

Born in Lagos to Adeyemo Alakija (Late Sir Adeyemo Alakija KBE) a brilliant and reputable lawyer.

Aduke was sent to England at barely the age of 9 years.

Qualified at the London School of Economics (University of London) with a Diploma in Social Science, and decided to follow her father’s steps into the Legal Profession, she qualified as a Barrister at Law of the Honourable Society of Middle Temple, London in 1952.

On return to Lagos she worked as a Welfare Officer in the Juvenile Court of the Lagos State Judiciary and later practised in the Chambers of Late J.I.C Taylor. She moved to Commercial Law, practice but soon after returned to Social Service work without losing her connection with the Legal Profession and Service to the community.

She held the following posts:First Woman Social Welfare Officer in Nigeria.

First Woman Executive Secretary Chamber of Commerce and Industry.

First Woman Honorary Secretary, Association of Chambers of Commerce, Industry & Mines of Nigeria.

First Nigerian Assistant to the General Manager, Mobil Oil Nigeria Ltd in charge of Legal and Public Relations Department.

Aduke Alakija with Mrs. Gandhi and Dr. Awoliyi to her left in the 50s

1961.

Delegate to the International Conference Vassar College USA, 1961.

Nigerian Delegate to the United Nations 1961, 1963, 1964 and 1965.

Nigerian Delegate, Speaker and Chair of Sessions of International Federation of Women Lawyers (FIDA) Conferences from 1966 to 1992.

Nigerian Ambassador to Sweden with concurrent accreditation to Norway, Finland and Denmark from 1984 to 1988.

Director in Mobil Oil Nigeria Ltd, Mobil Exploration Inc., Allen & Elliot, E. Osborne (Nigeria) Ltd and Unity Life & Fire Insurance Co. Ltd. Professional and Social Activities One of the Founders and Secretary of New Era College for Girls, Lagos.

Trustee, and Life President of Federal Society for the Blind.

Trustee and Council Member Corona School Trusts Council for over 50 years till 2011.

Member and Trustee of Soroptimist International which she introduced to Nigerian Women.

Trustee and Council Member of Nigerian Conservation Foundation (NCF).

Life Member, (President – 1975 – 1977) of International Federation of Women Lawyers (FIDA) which she introduced

Aduke Alakija ≠ The Young Barrister

Ambassador Alakija at the 17th THISDAY Lifetime Achievement Award, 2012

to Nigeria. Hon Life President of F.I.D.A International.

Founder Member and Trustee of International Women’s Society (IWS) and Legal Adviser of National Council of Women Societies (NCWS) for five years.

Trustee and Member of Continuing Legal Education Association of Nigeria (CLEAN).

Member of Public Awareness Committee of Musical Society of Nigeria (MUSON) until 2011.

Honours and Awards Degree of Doctor of Laws (PhD) Honoris Causa, Columbia University, USA, 1964.

Nigerian National Honour of OFR (Officer of the Federal Republic, 2005).

THISDAY Woman of Distinction Award, 2015 Ambassador Aduke Alakija was a woman of strong character who grew old gracefully and wisely. Her trademark was to correct bad behavior, rudeness and unjustified ignorance on the spot.

She was very strict but humane and generous.

She has directly and indirectly mentored many prominent Nigerian professionals and businessmen, who today call her “Auntie Aduke”.

She was an inspiration to many lawyers (male and female).

Artists - sponsored Bruce Onabrakpaya solo exhibitions in 1964.

- Encouraged David Dale.

Writers, Authors and poets in the world of Professor J.P. Clark.

Conservationist - Her last public outing was at the Annual Dinner/Dance of NCF in November 2015.

Above all she loved Music and Dancing, Good Food and Wine.

CHEERS, TO OUR ABSENT FRIEND Hairat Ade–Balogun, OON is a Legal Practitioner.

Celebrating the rst Nigerian Woman Lawyer Mrs. Stella Marke, the tallest lady in the middle is Aduke Alakija, to her right Late Mrs. Yetunde Alusi, late Miss Taiwo Kuye, Hairat Balogun, Kafayat Agusto, late Tawa Adeniji, late Mrs. Funke Johnson ≠ To Adukeí s Left Mrs Abimbola Okoro, 1st Woman Lawyer in Nigeria Mrs. Stella Marke (nee Thomas), Rose Taylor (Ghanaian Lawyer), Mrs. Farinde, Mrs. Layo Akinrele, late Mrs. Bisi Braithwaite, late Mrs. Julie Magregor

Other Contributions in the service of the Nation Employer Delegate to African Regional Conference of Incorporation Labour Organisation (I.L.O) and Chairman of Employer Group 1960.

Chairman of Employer Delegate to the Geneva Incorporation Labour Organisation (I.L.O) General Meeting

Kenya on December 16, was admitted as the 113th Member of the United Nations. Nigeria was one of its main sponsors for admission. Hon. Jaja Wachukwu, Minister of External Affairs, proposed the admission to the General Assembly. After the admission, the Kenyan Delegation held a reception for other delegations to the UN. This photograph shows members of the Nigerian delegation to the UN chatting with members of the Kenyan Delegation. At the centre of the photograph can be seen the Hon. Jaja Wachukwu, the Hon. Oginga Odinga and Mrs. Moore

In Santiago, Chile, FIDA Conference ñ 1971 R≠ L: Aduke Alakija, Modupe Akintola, a Chilean Delegate, Ibitola Sotuminu (CJ, Lagos) and Hairat A. Balogun

12.04.2016

/7

A Communique Issued by Participants at the 2nd National Energy Workshop organised by the IIPELP in collaboration with the National Judicial Institute

W

Preamble:

hereas the National Judicial Institute (the Institute) is the statutory body established by the National Judicial Institute Act, Cap N55 Laws of the Federation of Nigeria, 2004 with a mandate of facilitating continuing education for Judicial Officers and their support staff.

Whereas the International Institute for Petroleum, Energy Law and Policy (IIPELP) proffers solutions to the current gap that exists in knowledge, institutional development, governance, legal and regulatory framework for the energy industry in Nigeria and Africa.

Whereas the Board of Governors of the Institute under the Chairmanship of Hon. Justice Mahmud Mohammed, GCON, FNJI, the Chief Justice of Nigeria, approved that the Workshop be organised for Judicial Officers in Nigeria.

Whereas the IIPELP in collaboration with the National Judicial Institute (NJI) organised and held the Workshop for the said Judicial Officers for two days in Abuja with the theme: “Emerging Legal & Policy Reforms in the Petroleum & Power Sectors of Nigeria”.

And Whereas a total of 76 Justices/Judges attended the Workshop made up of: • 5 Supreme Court Justices, • 13 Court of Appeal Justices, • 5 Heads of Courts, • 29 Federal High Court Judges, • Judges from the FCT High Court, • National Industrial Court, • State High Courts i.e Abia, Akwa-Ibom, Anambra, Bayelsa, Cross-River, Delta, Imo, Ondo, Osun, Oyo and Rivers State) and • 42 Lawyers and Industry (Power and Petroleum) Stakeholders attended the Workshop where a total of twelve (12) papers were presented.

Appreciation The Organising Committee of the Workshop wishes to show appreciation to the Chief Justice of Nigeria and Chairman Board of Governors of the National Judicial Institute, Hon. Justice Mahmud Mohammed, GCON, FNJI, Hon. Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, Justices of the Supreme Court, Justices of the Court of Appeal, all Heads of Courts, other Justices and Judges in attendance, the Administrator of the National Judicial Institute, the Founder and President of IIPELP, Professor Niyi Ayoola-Daniels, Dr. Timothy Okon, CEO of IIPELP Group, Dele Oye Esq, Workshop Coordinator and members of IIPELP Advisory Board and dignitaries who participated and contributed to the success of the Workshop.

Now Therefore, Participants having listened to the presentations and actively participated resolved as follows: 1. That due to the dynamism in the Petroleum

Minister of Power, Works and Housing, Babatunde Fashola SAN, Chief Judge of the Federal High Court, Hon. Justice Ibrahim Auta, Mr. Dele Oye and Mr. Adetokunbo Kayode SAN

and Power Sectors, there is need for Judges to specialise in this area of the law to effectively empower them to handle cases emanating from these Sectors.

2. That there is the need for continuous capacity building for Judicial Officers in order to acquaint them with current trends and reforms in the Petroleum and Power Sectors.

3. That Judicial Officers are encouraged to explore the use of Alternative Dispute Resolution (ADR) mechanisms in resolving dispute emanating from Petroleum and Power transactions.

4. That there is need for the creation of a credible source of information in the Petroleum and Power Sectors.

5.That there is need for the review of enabling Acts setting up the regulatory bodies in the Petroleum and Power sectors, in order to reflect current best practices obtainable in the industry.

6. That there is need for regular sensitisation of the public on their rights of complaint at the National Electricity Regulation Commission (NERC) as a means of resolving any dispute before proceeding to Court.

7. That there is need for the Nigerian Government at all levels to respect and honour commitments voluntarily entered

Hon. Justice RPI Bozimo, Administrator NJI and Mr. Niyi Ayoola-Daniels, President IIPHELP

Cross section of Delegates

into as this will further encourage investments in the Petroleum and Power sector, thereby galvanising the economy towards productivity.

8. That the roles of the Judiciary and capacity building Institutions such as IIPELP are key to the realisation of the objectives of the Petroleum and Power Sector reforms.

Gratitude Participants thanked the Administrator of the National Judicial Institute, Hon. Justice R.P.I Bozimo, OFR, the IIPELP, Chairmen of Sessions, Resource Persons, Management and Staff of the NJI for a successful Workshop.

Dele Oye, Esq. Chairman, Planning Committee

Mr. George Etomi (left) and Hon. Justice Bode Rhodes-Vivour

8/COVER

12.04.2016

Alhaji Sadiq Adamu PHOTOS: Sunday Adigun

‘The Development of the Gas Sector Should be made a National Priority’ Nigeria is ranked seventh among gas nations in the world and number one in Africa. Oil and gas experts believe that Nigeria could even earn more from full utilisation of gas resources with a sound investment policy. ExxonMobil one of Nigeria’s biggest oil and gas companies recently appointed Alhaji Sadiq Adamu as Executive Director and General Counsel. In this interview with May Agbamuche-Mbu and Tobi Soniyi, the lawyer, author, poet and playwright expounded on a wide range of issues including Nigeria’s untapped gas potential, renewable energy resources, why the PIB is not the panacea to Nigeria’s oil and gas problems and ExxonMobil’s Corporate Social Responsibility Initiatives and local content policy.

C

ongratulations on your appointment as Executive Director and General Counsel of ExxonMobil. How do you intend to combine these roles effectively?

Accept my gratitude for your kind wishes.

Up North in Wukari Taraba State my hometown, the people are celebrating the appointment. The combined roles of General Counsel and of Executive Director not just in one, but three different companies would, on the face of it, look daunting. The responsibilities will require me to play the lawyer-entrepreneur roles at the highest levels of corporate governance. I have been nurtured in the ExxonMobil culture of self-reliance, self-improvement and calculated

risk-taking for more than twenty years; enough time for the process to reconstruct me for the job. The companies say I am ready and I have rolled my sleeves ready to evolve. I am a true seeker of knowledge, my seniors on the Boards are consummate teachers and the environment is conducive.

After the global recession new corporate governance codes emerged placing more emphasis on stricter compliance with reporting standards, this has led to the general counsel playing a more central role in compliance and risk-management in many companies. In your opinion how can the General Counsel meet with these high expectations?

This is already a norm in ExxonMobil. We are glad that global corporate governance culture has evolved to align with the ExxonMobil legal compliance traditional demands. Our

hope is that the compelling need for what the company has preached for so long will become more and more manifest and gladly embraced as to be normative in all business environments. The GC is traditionally the company’s chief compliance officer. Whoever holds that

"SPEAKING PERSONALLY, THE OFTEN TOUTED IDEA THAT THE PIB IS SOME KIND OF MAGIC WAND, THE PANACEA OF ALL OF THE INDUSTRY’S CHALLENGES APPEARS OVERRATED"

responsibility ought to be primed to rise to the occasion, if for nothing, to justify the significant investment in his training both formal and on the job. There are no two ways about it. Daily work life in ExxonMobil is an experience in consistent continuous improvement.

Usually tensions exist between General Counsel and External Counsel due to a difference of objectives and organisational orientation. How would you advise General Counsel to overcome this challenge?

I believe it should be second nature for a GC to communicate effectively. That should be his/her first tool of trade. He/she has to be a good listener, one who listens more than he/she speaks. When you listen, you encourage defences to be lowered, and when you communicate clear appreciation of the other’s viewpoint, you affirm the relevance of the other’s contributions and both help

12.04.2016 "IS THE PROBLEM REALLY WITH THE PIB? I THINK IT IS TIME FOR NIGERIANS TO ASK ONE FUNDAMENTAL QUESTION – WHAT IS WRONG WITH THE EXISTING LAWS THAT THE PIB IS INTENDED TO REPLACE? I DO NOT THINK ANYTHING IS FUNDAMENTALLY WRONG WITH THE CURRENT LEGAL REGIME" to engender productive engagement. Communicating expectations in an atmosphere protected by attorney-client privilege should be relatively simple. Effective communication has done wonders for us. Ask the law firms that work for ExxonMobil. That’s what makes us different and it should work for everyone.

The non-passage of the Petroleum Industry Bill (PIB), is a major cause of concern for stakeholders in the oil and gas industry. The Minister of State for Petroleum Resources and Group Managing Director, NNPC Dr. Ibe Kachikwu, recently stated that the country was losing over $15bn annually as a result of the non-passage of the PIB. In your opinion what other consequences does the Nigerian Economy face as a result of the non-passage of the PIB? Is the problem really with the PIB? I think it is time for Nigerians to ask one fundamental question – what is wrong with the existing laws that the PIB is intending to replace? I do not think anything is fundamentally wrong with the current legal regime. But let’s take a look at what investors require in order to invest in any country and these are things we take for granted in this country. Investors need stability in policies and laws to evaluate opportunities and make investment decisions. They also require respect for contract sanctity. Investors require security of lives and property. Many factors are taken into account before making any investment decision and if you change the rules midway, this will cause problems to the investor and his perception of the country as a hospitable investment destination. If an investor comes into the country and partners with any person, be it a private company or a government corporation, the expectation is that the partner will be able to respect commitments made, pay its own share of the cost of doing business. If this does not happen, you create an unnecessary burden on the other party.

The perennial JV funding gap means that a significant number of viable projects cannot go ahead. The consistent JV funding gap is constraining the growth of our industry. These are issues we need to address and this can be done without necessarily having to pass a new law. Speaking personally, the often touted idea that the PIB is some kind of magic wand, the panacea of all of the industry’s challenges appears overrated.

The dwindling oil prices indicate that Nigeria has to develop a strategy to attract foreign investment into the Nigerian economy. What can the government do to

COVER/9 encourage foreign investors?

It is about what I talked about earlier. We need to devote energy to creating an enabling business environment in this country. We must be conscious of the fact that investment funds are scarce and there are many destinations competing for investment. So we must offer an investment proposition that is attractive to the investor. The starting point is by asking ourselves the question why should an investor come to invest in the country instead of going elsewhere? This question, should, in my opinion, be of topmost priority. We should then put in place sweeteners that will attract investors to come to Nigeria instead of going to other competing countries. The common traits shared by jurisdictions that successfully attract foreign investment are stability of fiscal regime and the strong observance of the rule of law. Long term investments require long term planning and these require clear and stable fiscal regime, laws that are enforced and a business culture that defends sanctity of contracts. We must learn to do the things that others like Singapore, South Korea and Brazil have done. There are no two ways about it. This is more so in the face of evolving global economic trends; low crude oil prices, the bourgeoning cost of deep-water operations (Nigeria’s prime opportunities at the moment), the emergence and the appeal of alternative energy sources and so on and so forth. We must put forward investment policies that will attract new investors while encouraging those that are already here to stay.

Nigeria has a clearly defined Renewable Energy Program, under the direction of the Federal Ministry of Environment, however these energy sources are far from being proliferated on a commercial level by any means to near becoming alternatives to the use of Petroleum Energy sources. At what point do Oil producing countries like Nigeria, Venezuela and Angola need to begin to focus on renewable energy sources? What is the future beyond oil for Nigeria?

The global dependence on oil is quite broad and general; it traverses every facet of known economic activity. The alternatives are increasingly gaining traction. Nigeria has huge potential for renewables. It will interest you to know that Nigeria is essentially a gas domain; our crude oil potential is relatively minuscule when compared to our natural gas resources.

The government’s investment in natural gas is so paltry. Countries like Qatar are significant global players. Everyone else in OPEC has integrated its hydrocarbon industry reaping considerable earnings from the economies of scale and the abundant multiplier economic effects like ample employment opportunities and industrialisation. Natural gas development is a low hanging fruit for Nigeria. With the kind of international oil companies presence in Nigeria all that is needed is very attractive gas development terms and the country will open up. All the big players are already here.

Specifically, a large part of the advantage Nigeria obtains from working with International Oil Companies such as Exxon Mobil is the knowledge and expertise that they bring to host nations. The transfer of knowledge and capability to Nigerian workers and the Nigerian labour force serving these IOCs is an imperative for the future growth and development of the industry, so what specific programs do

IOCs operate to enable such transfer of knowledge and capabilities in support of the Oil and Gas industry?

The company has a global program for this initiative and it is very helpful to Nigeria and other countries. Currently, most of the workforce in Nigeria are Nigerians trained

by ExxonMobil. The expatriates are paired with Nigerian understudies as required by Nigerian law. These are candidates to replace the expatriates when they are sufficiently trained for the required skills set. And we have been hugely successful in doing this. About 96% of our work force here are Nigerians who are trained by a small percentage of expatriates that have been brought in for that purpose.

There are also many Nigerians posted to various ExxonMobil affiliates throughout the world either on development or work assignments to broaden their experience. I was a beneficiary of this initiative having worked with the company in the US, Qatar, Saudi Arabia, United Arab Emirates and Kuwait before returning to Nigeria in 2000. I and other Nigerians were also part of the Global Leadership Development Program, a program for a select few employees from affiliates all over the world handpicked for global leadership positions. Any person working for ExxonMobil in Nigeria is trained for capacity to work anywhere within the ExxonMobil world. That is a practical reality that many of us are privileged to be part of.

In spite of efforts by past governments to address the restiveness in the NigerDelta, the crisis remains unresolved. How would you advice government to handle this issue?

The Federal Government of Nigeria and the relevant state governments are doing what they can to address the issues of the Niger Delta region. These are complex issues and there are no easy solutions. Initiatives such as the amnesty program is intended to assist in addressing the problem. But like all things, there is room for improvement. As a servant of the law, I am inclined to prescribe adherence to the law on occasions where responsibility and entitlement jostle for prominence. But I also remain mindful of the political dimension of conflicts such as this. In societies where adherence to the rule of law is normative, the law would compel governments to address the excuses that led to the insurgency. Ours is a fledgling democracy and like all fledgling democracies we need time to grow our feathers.

Conflict in the Niger Delta, incessant attacks on Oil pipelines, and whole regions contaminated by oil spills or destroyed by fires from Gas Flaring are all symptoms of failed collaboration between IOCs, the Government and local communities affected by the exploitation of Petroleum Crude.

It goes without saying that the successful operation of IOCs’ activities in these affected areas requires the support and cooperation of local communities and so how should IOCs approach the delicate balance involved in the exploitation of crude oil and its harmful environmental effects on host communities?

I think we need to debunk the widely held misconception in this country that oil production is synonymous with environmental despoliation. That is far from the truth. Oil companies do not set out to damage the environment.

Indeed, oil development is carried out in line with applicable environmental laws and standards and international best practice with close monitoring of the regulatory agencies.

Now to be honest, we do have some challenges in the process. There can be facilities upset or other challenges that may happen in the process of oil production. Our company is set up with processes and capabilities to manage those upsets and challenges in such a

"NIGERIA HAS HUGE POTENTIAL FOR RENEWABLES. IT WILL INTEREST YOU TO KNOW THAT NIGERIA IS ESSENTIALLY A GAS DOMAIN; OUR CRUDE OIL POTENTIAL IS RELATIVELY MINUSCULE WHEN COMPARED TO OUR NATURAL GAS RESOURCES"

way that will limit impact on the environment.

For us in ExxonMobil, commitment to environmental protection is of topmost priority irrespective of where we operate in the world.

We consider this as a licence to operate issue.

We will rather not carry out an operation if it cannot be done safely. We comply with Nigerian laws and international best practice in our operations. Every employee knows the importance attached to the environment and safety and the reminders are so common place and frequent it is imbibed and has become second nature. So it is not correct to assume that oil development is tantamount to environmental damage. That point must be made clearly. To the other question, I must say that we recognise communities as important stakeholders in our operations. NGOs and other stakeholders are advocating corporate social responsibility and operators are listening. Significant resources are deployed to host communities’ development with appreciable results. The improvement in derivation funds, the creation of the Niger Delta Development Corporation and the Ministry of the Niger Delta are positive government initiatives to enhance government’s presence in the region. Hitherto, the only government the communities saw were the IOCs and their contractors in their midst. We need a collaborative approach in addressing community issues. Both the government and the IOCs need to engage more with the communities for dialogue and grassroots buy-in to programs.

Such engagements will create an opportunity for host communities to better understand our operations and present a feedback opportunity to assist in planning and coordinating future programs. As they say, “Jaw-jaw will always help avoid war-war." Concerning operational safety and environment, the regulatory agencies need to focus more on enforcing compliance with standards of the law particularly in those areas where those standards are flouted.

Good Corporate Social Responsibility initiatives are necessary to boost, the relations between oil companies and the community in which they operate. What are your company’s corporate social responsibility initiatives?

ExxonMobil is a pioneer in corporate social responsibility in Nigeria. In fact we are very proud of our record of achievements in corporate social responsibility. I will just mention a few; Since 2005, we have spent N2.5Bln Naira on Nigerian women in initiatives such as Global Women in Management and Women in Management Business and Public Service; We have spent over N19Billion in the fight against malaria which has benefitted over 105 Million Nigerians, including 30,000 pregnant women. The company has been actively supporting host community development from the inception of its operations in Nigeria. It is one of the company’s key policy objectives. Over the years, the company has built primary and secondary schools, sponsored thousands in Nigeria and overseas through tertiary education scholarships, and has youths’ apprenticeship programs for technical skills acquisition. These are in addition to building infrastructure such as roads, drainages, hospitals, community centres, sporting and recreational facilities, and providing access to portable water in many rural and urban communities. Corporate social responsibility is an annual budget item for ExxonMobil in Nigeria. Just visit any of our host communities you will see physical evidence dotting the landscapes. As you will know, our effort in this respect has been widely recognised in the country. Just last year, ExxonMobil affiliates in Nigeria were voted the 2015 Best Company of the Year in CSR by the Social Enterprise Report and Awards (SERAs). The Company also received the awards for Best Company in Poverty Reduction and Best Company in Infrastructure Development. We are the first Oil and Gas company to have achieved this feat in Nigeria!

Nigeria is estimated to have about 188 trillion standard cubic feet (SCF), of gas reserves, making Nigeria the nation with the seventh largest gas reserves in the world and number one in Africa. What reforms should be introduced to the gas regulatory framework to enable us effectively harness our natural gas potential?

Like I said before, Nigeria is essentially a gas country. The government needs to incentivise natural gas development to attract the required investment. Similar to crude oil development, natural gas monetisation is capital intensive.

You need to attract the guys with the big

CONTINUED ON PAGE 10

10/COVER

12.04.2016

'THE DEVELOPMENT OF THE GAS SECTOR SHOULD BE MADE A NATIONAL PRIORITY' CONTINUED FROM PAGE 9 pockets. To do that you need to create the right investment climate. For example, the Joint Ventures have gas development terms. That may be why we have huge revenue earning ventures like the Mobil NGL project in Bonny Island and the like. These are developing associated gas produced with crude oil that would have been flared. Actual gas fields onshore, in shallow waters and giant fields deep offshore are all ready for development.

The government needs to create development terms and the time for it is now. As you may be aware, natural gas is the energy source of the future. In fuelling electricity alone, it is a product with universal demand. Just imagine the existing global demand for electricity and its exponential growth daily. The demand is there and it is huge. Natural gas has other uses not commonly known like fertilizers manufacturing, polyethylene for the manufacture of plastics, insecticides and other pesticides, pharmaceuticals as well as additives in the manufacture of many things like cell-phone parts, automobile parts, aeronautics, cosmetics, electrical appliances and so on and so forth.

To crown it all, the big players in the global industry are already here. Just roll out the drums and the dance will begin. So what we need here are some catalysts to kick start a revolution in the sector. Also, we need gas terms for PSCs. Billions of cubic feet of gas are locked in there simply because there are no gas terms to monetise them.

The Nigerian Content Act was passed to increase the participation of indigenous oil companies in the oil and gas industry.

Despite this development indigenous oil companies still struggle to navigate the challenges that exist in the oil and gas industry. How do we ensure that indigenous companies are given the opportunity to grow?

To my mind, the Nigerian Content Act creates the best opportunity for Nigerians to participate in the oil and gas industry more than any other legislation in recent times. It provides local companies an opportunity to participate in the sector and helps them develop the necessary skills to service the industry.

The intent of the law is laudable, but may require tweaks here and there. One critical issue is access to capital by smaller companies.

In our particular case, we are committed to the promotion of local content development. In the last couple of years, we awarded contracts worth over N230Bln with Nigerian content value exceeding N120Bln and provided local contractors access to over N1.4Trn. We remain committed to pioneering feats in local content development and this feat was recognised by the award to ExxonMobil as the Best Company in Local Content in Nigeria from Businessday Newspaper last year. In my view, the opportunities are there, low hanging fruits to be plucked. Nigerians can also look to other jurisdictions with similar legislation like Saudi Arabia to borrow a leaf on how to maximise the opportunity. There must be significant focus on building capacity in terms of support infrastructure and skilled manpower.

Both cannot be wished away if success is the ultimate objective. Nigerians must hunker down and build capacity. They must attract foreign partners with proven performance records and surround them with Nigerian understudies, approach things with the humility of the true seeker of skills, the mechanic apprentice and allow for a significant gestation period for the skill sets to mature. I mean both the skills in enterprise management and the technical knowledge. We have no option but to sweat it out like others in the developed world did.

That penchant for instant gratification must be thrown out the window. This is a multibillion dollar industry with globally established safety and performance standards.

Analysts predicted that oil prices would drop to as low as $20 per barrel. Could this mean we have not seen the worst in terms of dwindling oil prices?

This is anybody’s guess. But I know that oil is a fungible commodity, an international product whose price is influenced by geopolitics, economics, weather, war, shipping and simply by periods of contango and backwardation.

In my view, looking at the last thirty years of prices of oil, the current price phenomenon may be cyclical. It appears to happen every ten years or so. The prices may recover but not even a seer can tell you precisely when this would happen.

Stakeholders in the oil and Gas Industry have stated that the decline in oil price

provides Government with a unique opportunity to diversify its revenue base and reduce dependency on oil. What other viable sources of Public revenue do you believe are as yet untapped?

There are many. I can reel out the numbers; natural gas development, hydroelectricity, solid minerals, agriculture, the education industry.

Take the last one for analysis. If the government grows the courage to make primary and secondary education free and compulsory, domicile a portion of government export receipts in Nigerian banks to support University study loans for all eligible Nigerians, all the major Universities in the world will have campuses in Nigeria. A huge percentage of the population will be educated. Everything in the country will change; our politics, respect for the rule of law, universal economic empowerment, even the way we appreciate each other. The opportunities are varied and attractive. Again, to make this happen, one cannot emphasise enough the importance of adopting appropriate investment policies and laws that will make the economy investor-friendly and open all of these to very active participation by both foreign and local investors and entrepreneurs.

The President Muhammadu Buhari stated at the 6th African Petroleum Congress and Exhibition that it was unacceptable for Nigeria to be responsible for 23 billion cubic meters of the 40 billion cubic meters of gas flared annually in Africa, and promised to partner with the legislature to ensure the signing of the United Nations Agreement of “Zero Routine Flaring by 2030”. What steps should government and stakeholders take to achieve this goal?

The government must invest in natural gas monetisation the way it has invested in crude oil development. Indeed the development of the gas sector should be made a national priority. There are salient issues that must be addressed here. Nigeria must set attractive gas development terms for both the backbone infrastructure that support gas, resolve the lingering JV funding issue, provide efficient and effective regulatory framework for timely, transparent and efficient approval of projects, ensure contract sanctity as well as independent and fair dispute resolution mechanisms. Right now, the price of gas is being regulated. There will be need to deregulate the sector. These will help energise the sector for investments.

The resources are there. So are the big players and the thirsty markets. Flared gas will turn to cash gas literally tomorrow. The only missing puzzle is the appropriate enabling environment. It may interest you to note that the ExxonMobil companies in Nigeria have achieved a less than 10% flare out rate within the past 10 years.

The Federal Government has repeatedly stated that it plans to remove fuel subsidy.

What is your view on the removal of fuel subsidy?

I fundamentally believe that prices are determined by market forces. Having said that, I also recognise that there are more

"THE COMMON TRAITS SHARED BY JURISDICTIONS THAT SUCCESSFULLY ATTRACT FOREIGN INVESTMENT ARE STABILITY OF FISCAL REGIME AND THE STRONG OBSERVANCE OF THE RULE OF LAW"

complex issues at play in this instance, and that the government will, ultimately, make the right decision.

Corruption is often blamed for our inability to use revenue generated from the oil industry to develop the country.

This is referred to as the “Resource curse”.

How can we introduce accountability and transparency in the use of national revenue to overcome this curse?

To me, we need to deal with the issue of integrity in this country from a very basic level. We need to preach the importance of integrity from the family level to our schools and to every strata of our society. Any society or institution without integrity and ethics is doomed. If we want to get out of our present quagmire, we have to go back to our roots, the values of integrity, ethics and hard work.

These are fulcrums which the founders of our nation held dear. This will percolate down to every strata, be it in the management of our national resources or any other thing.

There is no other way. Also, we must show that those who go against these values are punished to serve as a deterrent to others.

International Arbitration is favoured by stakeholders in the oil and gas industry because of its speed and the confidentiality of proceedings. However parties including Nigerians choose London and Paris as seats for arbitration. Being a Director at the Lagos Court of Arbitration, what steps can be taken to make Nigeria an attractive seat for arbitration?

For starters, we all need to encourage enhanced respect for the rule of law. That is a general statement that dovetails into the issues of insecurity, judicial interference with arbitral awards and processes, greater respect for sanctity of agreements, easy enforcement of awards, just and fair consideration of arbitral disputes and so on and so forth. On the specifics, ADR is a global phenomenon that is gradually but surely outstripping litigation in the settlement of commercial disputes. Nigeria needs specific focus on ADR through concerted investments in support infrastructure, training for arbitrators and support staff and above all a cultural shift that encourages ready acceptance of the finality of arbitration awards. Lagos Court of Arbitration is a bold statement in that direction. The facility is state of the art,

affiliation is widespread in Lagos, Abuja, Kano and Port Harcourt. Recently, judges from Ghana and South Africa came snooping around for membership. Very soon the quality of services will further advertise the facility globally and that will attract the kind of attention London and Paris have coveted for so long. We will get there. I am certain of that. LCA is a starter; an excellent foundation for ADR in Nigeria and sub-Saharan Africa as a whole.

You were the President of the Contemporary Literature Society of Nigeria and Writers’ Drama club and also authored many books including “The Man Alone”, “The Way of the Mustard Seed” and a play “Were I to Surrender”. You are also a distinguished poet and your sonnet “Muffle the Nightingale” was published in the contemporary edition of the English Pageant of Longer Poems and your other poem “Walking between Raindrops” was well-received. Being a successful lawyer, what inspired you to venture into the arts?

What is your opinion on the relationship between law and literature?

Law and literature are conjoined twins.

Literary artists and lawyers sculpture arts on the canvass of words. Relying on the power of superior argument, an advocate creates and defines reality in a perspective that did not exist before. He creates a lurid picture, sells it to an audience and persuades acceptance. That is his trade. A literary artist uses creative imagination to fashion a reality that his audience appreciate profoundly. He uses the power of words to evoke an imaginary reality that captures perception and persuades acceptance as real. Both are artistic users of words to persuade. Let me use one example each from Lord Denning, MR a beacon of the Law and William Shakespeare the doyen of the arts. Denning said this about literature, “Of all the things in which the wise excel, nature’s CHIEF MASTERPIECE is writing well”. Permit me to paraphrase Shakespeare playing the lawyer in the words of Portia (Merchant of Venice) – ‘mercy drops like gentle rain from heaven upon the place beneath it.

It has double blessings. It blesses him that gives and him that receives it. It is a finer ornament of a King than his crown for it is the quality of God Himself. Earthly power comes nearest to God’s when mercy is mixed with justice. As we pray for mercy, that same prayer should teach us show mercy’. Therefore, where the artist is meshed in a lawyer, you have convergence. Both the lawyer and the literary artist are in the trade of NATURE’S MASTERPIECE. You are also actively involved in the activities of various associations and clubs such as the Harvard Club of New York, the Harvard Alumni Association of Nigeria and the International Bar Association and the Nigerian Bar Association (NBA).

What can the NBA do to encourage the participation of its members at all levels?

The Military did their things and passed Decrees the whole nation was compelled to abide by, with no contribution from anybody.

We have a democracy now and the Constitution allows citizens’ contribution to legislation. The NBA should take that opportunity to develop Legislative Advocacy as a practice field.

There is no reason why the NBA should not contribute position papers on every legislation before all legislative houses in Nigeria. Social media presents a veritable tool for promoting social change. The NBA should harness its potential maximally, joining issues with other stakeholders on issues such as ethics, good governance practices, promotion of arts and culture and general awareness on the workings of the Constitution. We need to actively participate in our democracy, sponsoring bills and representing interest groups in advocating legislation over things that matter to the common man. The NBA also needs to spearhead the development of indigenous commercial agreement precedents as guides to legal drafting. Lawyers must also learn to give back to the society; social responsibility - endowments in support of education; support for girl-child education, sponsoring chairs in law faculties. We need to be more visible promoting national integration, patriotism, and encouraging debates on topical issues that emphasise a common faith in the Nigerian enterprise. We have played backbenchers for too long, encouraging persons at the bottom of our social pyramid into positions of leadership and then we sit back and complain how bad things are in Nigeria.

12.04.2016

/11

NBA Elections 2016: the Contenders The Nigerian Bar Association is unarguably the largest professional body in Nigeria and the umbrella body of all Nigerian lawyers, it conducts elections to fill its national offices every two years. The election that brought in the Augustine Alegeh led administration whose tenure comes to an end in August this year was held in June 2014. This year the NBA will elect national officers in June and the election this year will be unique in many ways. Jude Igbanoi analyses the candidates and issues arising from the forth-coming election.

T

he Nigerian Bar Association is unarguably the largest professional body in Nigeria and the umbrella body of all Nigerian lawyers, it conducts elections to fill its national offices every two years.

The election that brought in the Augustine Alegeh led administration whose tenure comes to an end in August this year was held in June 2014. This year the NBA will elect national officers in June and the election this year will be unique in many ways. Jude Igbanoi analyses the candidates and issues arising from the forth-coming election.

For the past six months, candidates for the various offices in the NBA have engaged in nationwide consultations with colleagues and friends with the aspiration to serve the association at the national level.

The main contenders in this year’s elections are Mr. A.B. Mahmoud SAN and Chief J-K Gadzama SAN who are both vying for the presidency of the association.

Both lawyers are eminently qualified to lead the Bar and they are the only candidates for the presidency of the association for this year. This is because the association by an unwritten agreement had since year 2000 zoned the presidency to the three recognisable zones, essentially along ethnic lines. Thus, the office of president has since rotated between the North, East and West.

This year, it is the turn of the North to produce the president and this explains why only Mr. Mahmoud SAN and Chief Gadzama SAN are contesting for the exalted office.

However, what makes this year’s election unique is that for the first time in the history of the association, lawyers will cast their votes electronically from the comfort of their homes or offices. This is one of the campaign promises of the incumbent president Augustine Alegeh SAN and he is delivering on it. Also, Alegeh promised to give every Nigerian lawyer an opportunity to vote. Therefore, every Nigerian lawyer who has paid his current practising fees is entitled to vote from anywhere in the world.

All that is required is for such a lawyer to log into the NBA election portal and enter his details and he will be able to select and vote for the candidate of his choice. Perhaps, the entire nation is awaiting the outcome of this crucial election as Nigerian politicians would certainly have a lot to learn from this by way of perfecting the nation’s phlegmatic electoral system.

Abubakar Balarabe Mahmoud SAN

The Alegeh administration has also taken the bold step of outlawing campaign posters and adverts with a view to minimise campaign costs for candidates and possibly eliminate monetisation of NBA elections.

Many expect that such strict electoral guidelines and the adoption of universal suffrage using electronic voting would result in rancour free campaigns, without the hitherto attendant acrimony.

It is therefore hoped that the campaigns by Mr. Mahmoud SAN and Chief Gadzama SAN will not be acrimonious.

But the stage is set for what would be a landmark election in NBA’s history. One that has the potential of determining the direction the profession would head in the next few years.

The candidates are still crisscrossing the length and breadth of the 114 branches of the association and a lot of other crucial issues are yet to be settled. For instance, the Arewa Lawyers Forum to which both candidates belong has been at a crossroad as to who to adopt as

Chief J-K Gadzama SAN

the forum’s candidate.

Last week, a group of some branch chairmen and secretaries for the North East, Gadzama’s base released a signed communiqué purportedly adopting Gadzama as their presidential candidate. But the Mahmoud camp immediately after published a rejoinder to the effect that the body does not exist.

A bar-activist who spoke on condition of anonymity opined that ‘the lines have since been drawn and the swords crossed. Where that leaves both candidates would be seen in June, because with the way things are going, adoption or no adoption, both are not ready to step down for the other.’

THE PRESIDENTIAL CANDIDATES PROFILES Abubakar Balarabe Mahmoud SAN A.B. Mahmoud SAN was born in Kano on June 16, 1957 and was called to the Bar in 1980.

Mahmoud is also a Fellow of the Chartered Institute of Arbitrators.

He holds a Master of Laws from

Ahmadu Bello University Zaria.

From 1992-1993 Mahmoud was Attorney General and Commissioner for Justice, Kano State where he had earlier been Solicitor General and Permanent Secretary, Director of Public Prosecutions and Director of Civil Litigation Kano State Ministry of Justice Kano. He is currently the Pro-Chancellor, Kano State University of Science and Technology, Wudil.

Chief J-K Gadzama SAN J-K Gadzama SAN was born on November 28, 1961 at Mubi in Adamawa State, although originally from Uba in Borno State.

He attended the Teachers’ College, Song where he graduated with a Teachers’ Grade II Certificate in 1980.

He later went onto study law at the University of Maiduguri and was called to the Bar in 1986.

Gadzama is a Fellow of the Chartered Institute of Arbitrators and admitted into the Lincoln’s Inn in England in 2008. He is a Life Bencher and member, General Council of the Bar. He was the pioneer Chairman NBA’s Section of Public Interest and Development Law.

12/

12.04.2016

The “Panama Papers”and Robust Potential for the Nigerian Trust Service Industry Temitayo Tijani

T

he 'Panama Papers' leak is likely to remain the biggest leak of corporate confidential information in human history for some time to come. Spanning a media investigation into a trove of 11.5 million documents, leaked from a Panama-based law firm with offices in 35 countries exposing a series of offshore financial dealings by the elite class, including some from Nigeria, the leak not only exposes the sheer magnitude of offshore financial transactions but also presses home the devastating reality of how the Nigerian financial services community is missing out on one of the most lucrative segments of financial services industry.

Whilst Offshore financial dealings, using the instruments of trust, are not illegal in themselves except when abused to hide assets from tax authorities, launder the proceeds of criminal activities or conceal misappropriated or politically inconvenient wealth, the fact that the Nigerian custodial and trust services industry lack cross border exposure and competence readily ensures that it continues to lag behind the remote countries of Luxembourg, Seychelles and Panama as a recognised international financial services hub.

Presently, the Nigerian financial services industry, despite its limitations, is ranked the second most developed in Africa. It also continues to exhibit strong year-on-year growth as evidenced by an average annual increase in total market capitalisation over a five-year period through December 2014.

A sub-set of the financial services industry, the Custodian and Trusteeship industry play a key role within the financial markets given its function as the neutral conscience and enforcer of the fair interplay between the ever aggressive and widely varied interests in financial services transactions. The simplicity, logic and social inclusiveness of custody and

trust instruments have proven irresistible and have attained a heightened significance in the social economic life of Nigerians especially with the gradual disintegration of the concept of real estate as the principal form of wealth.

While the growing relevance of these segments of the financial services industry continues to be acclaimed, the future role of the Industry however remains unclear especially in the context of an aspiration to service international clients.

No doubt, the role of Custodians and Corporate Trustees in international financial transactions is crucial. At the same time, the internationalisation of the Nigerian trusteeship market is pivotal to the growth of the sector and overall national economic development. Yet, the shortcomings of the current regime of custodian and corporate trusteeship pose key challenges to the success and integrity of such international financial transactions. One of these shortcomings is the non-applicability of the Hague Convention on the Law Applicable to Trusts and on their recognition in Nigeria. This Convention sets out a comprehensive regulation of trusteeship in a manner responsive to the increasing globalisation of businesses. Unfortunately, Nigeria is not a state party to the convention.

Clearly, the non-application of this Convention or other forms of international trusteeship law or regulation to Nigeria hampers the internationalisation of its trusteeship market.

Another factor that has considerably militated against the cross border actualisation of trust services in Nigeria is the dearth of technical competence that pervades the industry. The Nigerian Trusteeship industry as presently constituted lacks the infrastructure and operational excellence needed to competitively support a self-sufficient, robust and independent International financial services market with its heavy reliance on premium technology and upscale human capital. Compared to preeminent global financial centres like Hong Kong, London and Singapore, the industry in Nigeria, without prejudice to the managerial skills and acumen of industry

forerunners, still lacks a critical mass of talent whose knowledge in administration, legal and compliance, and client management areas of the custodian and trustee business are a prerequisite to being competitive within an increasingly globalised system.

The industry is also unable to access the requisite technological infrastructure to cope with the increasingly diverse and complex nature of assets and the accompanying regulatory regimes.

In order to set the Nigerian custodian and trusteeship Industry towards the path of aiding national economic development through increased capacity and globalisation of its reach, transformational changes are required.

Such business transformation requires greater coordination on the part of industry stakeholders and necessarily includes prioritising excellence in client experience whilst overcoming operational challenges relating to technology and infrastructure.

Businesses operating within the industry need to develop highly focused business models geared towards achieving economically sustainable business performance whilst bearing in mind that the global custodial

and trustee business is a specialised but cost intensive business that calls for regular update to keep pace with changing regulations and sophisticated products coming to the market. They will also have to develop seasoned management solutions for the effective management of alternative non traditional assets like commodities and derivatives in other to make their service offerings more appealing to a broader spectrum of international investors.

Admittedly, the Nigerian custodial and trust services industry is still small and the task of attaining the prescribed globalisation costly, operators within the sector must however realise that attaining scale in an effective manner can only be achieved if they move away from existing methodologies, and adopt operational models suitable to present day realities. Certainly, with a commitment to excellence and continued professionalisation on the part of Industry experts, the Nigerian quest for recognition as an International financial and trust centre is attainable.

Mr. Tijani is a lawyer and corporate trust service practitioner in Boston, Massachusetts.

The Panama Papers, Data Protection and the Nigerian Legal Industry Ikechukwu Uwanna

E

dward Snowden made the news in 2013 when he copied and leaked sensitive and classified information from the U.S. National Security Agency without prior authorisation. According to Wikipedia, Snowden was estimated to have about 1.7 million files!

Today, the trending news worldwide is the release of 11.5 million files from a law firm in Panama, namely, Mossack Fonseca (“the Firm”). The information in the files which largely deal with off-shore tax havens, it has been revealed, dates back to 1977, when the Firm was established, and extends to December, of 2015. This situation is generally referred to as the “Panama Papers Incident” and the firm has now released a statement asserting that it has been hacked, thus the situation is not “a leak” On a preliminary note, it must be stated that the use of a favorable offshore jurisdiction for wealth and tax planning has been a legitimate practice for decades. However, this commentary is intended to briefly consider the legal implications of the

hacking, collecting and disseminating of Clients confidential information in the Nigerian Legal Industry.

Section 192 of the Nigerian Evidence Act 2011 places a legal obligation on a legal practitioner in Nigeria not to disclose any communication made to him or the content or condition of any document with which he has become acquainted in the course and for the purpose of his professional employment by a client. Also, Rule 19 (2) (a) of the Nigerian Rules of Professional Conduct for Legal Practitioners 2007 also restrains a Legal Practitioner in Nigeria from revealing the confidences or secrets of his Clients.

These statutory provisions are aimed at providing Clients with the necessary confidence that their private information will not become public and encouraging them to divulge as much as would assist their lawyers to provide relevant legal solutions to their problems. Needless to say, this right is protected by Section 37 of the 1999 Constitution of the Federal Republic of Nigeria which provides that “The privacy of citizens, their homes, correspondences, telephone conversations and telegraphic communications is hereby guaranteed and protected”.

Most law firms in Nigeria have modern information technology tools which are used for imputing; storing and disseminating very confidential client data These tools, we have just learnt from the Panama Papers incident can be illegally accessed by unauthorised persons and be employed to embarrass and harm Clients. The implication of this is frightening when considered in the light of the fact that legitimate but confidential data of law abiding clients can be circulated worldwide. This definitely portends a danger for the legal industry. The belief by a client that information he is providing his lawyer will not be accessed by a meddlesome interloper is now endangered or eroded.

In addition, following Snowden’s case and the on-going Panama Incident, it has become obvious that in today’s world, persons who illegally obtain and disseminate the private information of individuals are celebrated as heroes in some quarters and there are little or inadequate penalties provided to check this.

For instance, in Nigeria, although Section 12 (1) of the newly passed Cybercrimes (prohibition, prevention, etc.)Act, 2015 prohibits and in fact criminalises the accessing of computer

generated data in Nigeria by unauthorised persons, it would appear that the penalty is insufficient to make up for the abuse of a person’s private data. That section provides that “Any person, who intentionally and without authorisation, intercepts by technical means, non-public transmissions of computer data, content, or traffic data, including electromagnetic emissions or signals from a computer, computer system or network carrying or emitting signals, to or from a computer, computer system or connected system or network; commits an offence and shall be liable on conviction to imprisonment for a term of not more than 2 years or to a fine of not more than N5,000,000.00 or to both such fine and imprisonment.”

Therefore, this is a call for the relevant interest groups, particularly the law firms and the Nigerian Bar Association to make a case for more stringent penalties for persons who illegally access confidential data. After all, data protection is at the core of legal practice and efforts should be made by all to ensure that the rights to privacy and data protection are not abused.

Ikechukwu Uwanna practices with Tsedaqah Attorneys in Lagos.

12.04.2016

THE LIGHTER SIDE/13

LEGAL HUMOUR

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

Dear Counsel, Your kind assistance would be most appreciated on this. I have been separated from my husband for over seven years, after a turbulent five years of marriage. But our two children have been staying with me since our separation.

Because he was so anxious to get married again, he filed for divorce and the court granted me custody of the children. When the upkeep of the children was getting too difficult for me, the court ordered that he pay monthly child-support and maintenance to enable me cater for the children.

Knowing his fairly high income, I considered the N28,000 maintenance highly inadequate. At first he managed to pay for eleven (11) months and he used to visit the children at least once in a month. However for three years now, he has not sent any money as he agreed to do before the court. He conveniently visits the children in school and buys them snacks, which when I had a job didn’t really worry me.

Now, I have lost my job and I have put my last kobo into a small business I am trying to nurture. I went looking for him and discovered that he is now fully settled with another woman and has completely forgotten about the need to support me with the upkeep of the children.

I approached his brother and another member of his family. They promised to talk to him, but it has been over five months since I spoke to them now and nothing

has happened. What should I do as I have continued to bear the financial burden of taking care of these children, including their education and medicals needs?

Lady K, Abuja.

Dear Lady K., One can only imagine how many women go through the same situation you are experiencing now. This happens because most people are quite ignorant of their rights.

Although you did not state whether the divorce proceedings are still ongoing or whether you retained the services of a lawyer in the case, I am sure a lawyer would have taken the necessary steps to deal with this problem accordingly.

However, I need to point out here that since the court has made an order for payment of maintenance or costs in respect of the children, you can effectively enforce this against your ex-husband.

Section 88(1) of the Matrimonial Causes Act, Cap 17, Laws of the Federation of Nigeria adequately provides for this. It states “Subject to rules of court, a court having jurisdiction under this Act may enforce by attachment or other process, an order made by it under this Act for payment of maintenance or costs or in respect of the custody of, or access to, children.” Notwithstanding, in my view you will need the services of a lawyer to go about this.

Settling a Dispute Two men had been fighting in the back of the local poolroom. Someone called the police, who arrested the men and took them before the judge.

"You two fellows should be ashamed of yourselves," the judge said. "You're grown men, not school kids.

You should be able to settle your dispute without being brought to court." "That's what we were trying to do," one of the men said, "when somebody called the police and they came and interfered."

Spit it Out A lawyer was defending a man accused of biting off another man's ear in a brawl. The lawyer asked a witness for the prosecution whether he'd seen his clients bite off the ear.

The witness said "No," but the lawyer wasn't smart enough to rest his case.

He went on questioning: "If you didn't see my client bite off this man's ear, then how do you know it was my client who did it?"

The witness told him: "Because I saw him spit it out."

LEGAL ISSUES ARISING FROM REGULATING THE E-COMMERCE SUB-SECTOR IN NIGERIA CONTINUED FROM PAGE 5 duty on the service provider to provide services in accordance with the provisions of the law.

In Europe, the Electronic Commerce Directive 2000/31/EC and the Consumer Rights’ Directive 2011/83/ EU which are the principal legislations on electronic commerce, places duties on the service provider that specifies the intended level of protection. In providing protection for consumers, the law must make concrete rules to govern commercial communication, formation of online contracts, liabilities of internet intermediaries and distance and/or off- premises contracts.

In providing concrete regulations for these matters, emphasis should be upon the service providers to provide their services in line with the requirement of the law. Thus, consumers are better assured of their rights in cases of breach, the Consumer Protection Council can then act as an arbitrary tribunal for persons who opt for the alternative dispute resolution option and also as law enforcers. In ensuring that the rules are clear, consumers who hitherto have been jittery of the service delivery of e-commerce providers would be more open to transacting with the e-commerce service providers, as their rights are now easily ascertainable and no more determined by the whims and caprices of the service providers or the architecture of the internet.

The core of e-commerce transactions are carried out with the involvement of the various financial institutions. By the nature of e-commerce transactions, these financial institutions have taken up roles as intermediaries, who now provide services beyond traditional financial services.

These financial institutions should become liable

for the losses recorded by a consumer arising from the improper functioning of their technology. Contracts drawn up by financial institutions to exempt obligations for the malfunctioning of technological induced losses should be strongly regulated by the law. These financial institutions should be liable not just because they generate income from such transactions but because they also have the wherewithal to prevent losses to the consumers. Intermediary liability is becoming a universal concept around the globe as technology has created new intermediaries who can help protect consumers through their business models, L’ORÉAL SA AND OTHERS v EBAY INTERNATIONAL AG AND OTHERS C-324/09.

In regulating the e-commerce subsector care must be taken to ensure that the emphasis is not only on contracts concluded on the internet but all contracts concluded by the use of electronic devices. The validity of a contract within the ecommerce subsector must be clearly defined and the conditions must be ascertainable. As a guide, it would be advisable that the confirmation of contractual terms be required to be sent to the offeree before the consummation of the contract.

Hence, the basic requirement of offer and acceptance as applicable in offline contractual transaction becomes offer, acceptance and confirmation in e-commerce contracts. A consequence of the failure to conform to the requirement of confirmation could be the unenforceability of the contract in the court.

While progress has been achieved by the Evidence Act 2011 Cap E14 Laws of the Federation of Nigeria 2004 with regards to admissibility of

electronic generated evidence, this in itself cannot guarantee the intended drive for a regulated e-commerce economy. Therefore, the Electronic Commerce (Provision of Legal Recognition) Bill 2011 must be passed into the law. The passage of the bill would give validity and lend stronger credence to e-commerce contracts while also ensuring that contracts are better governed by the instrumentality of the law and not by the architectural form of the internet. It is advisable that before the passage of the “Electronic Commerce (Provision of Legal Recognition) Bill 2011” a position is taken as regards liabilities arising from the hacking of any certificate authority who verifies electronic signatures. This would ensure adequate protection is provided for the consumers.

Finally, the courts must be adequately equipped and ensure that this budding subsector is adequately protected by proactively applying the inadequate laws of offline contractual transactions.

The courts must read the spirit of the law in interpreting the various applicable laws which governs offline transactions but are being transposed into the e-commerce subsector as the law would never be ahead of technology. The court is saddled with the responsibility of bringing the law up to date with e-commerce transactions. The tripod of government must therefore work together with the sole aim of regulating the e-commerce sub-sector in order to achieve economic development and ensure a minimal level of certainty for e-commerce contractual transactions and also the protection of the consumers.

Akinpelu Ayokunle Oluwatobi is a Nigerian Lawyer based in the Netherlands.

14/

12.04.2016

Maximising Internally Generated Revenue Under the Taxes and Levies Act 2004 Olumide K. Obayemi

I

n this Paper, using the 10 Local Government Councils in Osun East as case studies, we examine the practical and legal theories upon which the Local Government unit, under the Nigerian federal structure may internally generate sufficient revenue, especially within the context of the Taxes and Levies (Approved List for Collection) Act, Cap T2, Laws of the Federation of Nigeria, 2004 (“Taxes & Levies Act”).

With the dwindling earnings resulting from Nigeria’s main export—Petroleum Products, Nigeria is currently not enjoying the best of times, due to the adverse effects of the dwindling revenue from the crude oil and gas sector, which accounts for about 95% of its revenue. The fallen price of crude at the world market has orchestrated the devaluation of the Naira and also increased inflation. The manufacturing and other productive sectors are worst hit because, as the country is highly import dependent, they find it extremely difficult to bring in raw materials, especially now that the Central Bank of Nigeria has closed its auction market window.

Under the Nigerian 3-tier federal structure—comprising of the Federal, State and Local Governments (Counties), the Local Government is the closest tier of government to the people in Nigeria, however, as is the case with most local governments in Nigeria, the resident population therein are mostly denied the benefits of this important arm of government, and this is evident from the environmental state, deteriorating public school buildings, poor market facilities and lack of health centres. To commentators, the failure of the local governments in the area of service delivery has led to loss of trust in government as an institution.

Collection of taxes and levies is another area of concern, thus, among the Ife/Ijesa communities, most local government council officials are perceived to be toll/levies collectors regarding multiple and overlapping taxes. Citizens now clamour for change in the local government system as presently constituted in order not only to bring it in conformity with present day realities but also to make it live up to the expectations of the people who have been yearning for grass root development.

While the primary source of local government sustenance is from Federal Allocations, like Olubukunola Olusola, this author proposes that Internally Generated Revenue (IGR), i.e., the revenue that the local government generates within the area of its jurisdiction must be resuscitated, and that the capacity of local government to generate revenue internally which was one very crucial consideration for the creation of a local council, must be sustained.

Further, the imposition or assessment of a tax is the means by which the government acquires the revenue required for its activities, usually, by way of a monetary charge imposed by the government on persons, companies, transactions or property to yield revenue.

It is the judicious interplay between the raising of IGR and imposition of taxes and levies that is the subject of this short piece.

Section 4(3) of the 1999 Nigerian

Federal Constitution vests, on the National Assembly, the power to make laws for the Federation in respect of matters included in the exclusive legislative list to the exclusion of the Houses of Assembly of the States. In fact, a community reading of the provisions of Paragraphs 7, 8, 9 and 10 of Part II of the Second Schedule, and Paragraphs 1 and 2 of the Fourth Schedule to the 1999 Constitution, the Federal, State and Local Governments have the responsibility to collect taxes, levies and other revenues. Further, on May 26, 2015, the erstwhile President, Goodluck Jonathan, acting through the former Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, amended the Taxes and Levies Act. Thus, with the retention of the Taxes & Levies Act by virtue of Section 315 of the Constitution and the 2015 Amendment Order, the following taxes and levies may be collected by the Local Government: Shops and, kiosks rates; Tenement rates; On and off liquor license fees; Slaughter slab fees; Marriage, birth and death registration fees; Naming of street registration fee, excluding any street in the State Capital; Right of Occupancy fee on lands in rural areas, excluding those collectable by the Federal and State Governments; Market taxes and levies excluding any market where State Finance is involved; Motor Park levies; Domestic animal license fees; Bicycle, truck, canoe, wheelbarrow and cart fees, other than a mechanically propelled truck; Cattle tax payable by cattle farmers only; Merriment and road closure levy; Radio and television license fees (other than radio and television transmitter); Vehicle radio license fee (to be imposed by the local government of the State in which the car is registered; Wrong parking charges; Public convenience, sewage and refuse disposal fees; Customary burial ground permit fees; Religious places establishment permit fees; Signboard and advertisement permit fees; and Wharf Landing Charge, where applicable.

Factors Responsible for Tax Evasion A review of various tax scholars has revealed that a number of factors are responsible for tax evasion in Nigeria: 1. The high level of corruption by government officials at all levels and lack of fiscal transparency. This affects the willingness of tax payers to pay tax in the sense that they believe a chunk of this will go to top government officials’ private pockets 2. Corrupt practices of some tax officials who sometimes collude with tax defaulters encourage tax evasion .

3. Complexity of tax laws and bye-laws in Nigeria contribute to tax evasion. There have been instances of multiple tax by two tiers at the same time. This gives room for tax evasion.

4. Absence of strong deterrent punishments and willingness to prosecute tax offenders whether rich or poor contribute to rampant tax evasion.

5. Nature of administration by many Inland Revenue services offices hamper the task of assessment, investigation and administration of taxes. There is a poor data base and inadequate information system for effective tax planning.

6. Deteriorating standards of living with reduction in level of income contributes largely to tax evasion.

Executive Chairman, Federal Inland Revenue Service, Dr Babatunde Fowler

7. Lack of adequate information and improper education of the citizens on their obligations to the state about taxes affect the willingness to pay taxes.

8. Low level of patriotism among the citizen affects the attitude to taxes and willingness to pay taxes.

Suggestions for Reform Empirical studies carried out by the author among the Ife/Ijesa communities showed that IGR can be raised and sustained if the following points are adhered to: Blocking of Porous Sources: There are several porous means of tax evasion within the communities.

For instance, along the Ife/Ilesa/ Akure Expressway, there are a lot of semi-developed lands with owners living in faraway cites such as Lagos, Ibadan who pay no Right of Occupancy fee on those lands.

Further, there are various nomadic cattle-rearers who migrate continuously across the state lines without paying necessary cattle fees.

Lack of Accountability: Like every facet of Nigerian life there is a serious lack of reporting requirements imposed on either the taxpayers or the collectors. In this computerised age, each local government council must take an inventory of the corporations, trusts, partnerships, sole proprietorships, and artisans operating within their domains. The tax collectors must be licensed. Cashless means of tax collection must be employed. Sanctions must be quick, stiff and just for erring offenders.

Optimum Debt Recovery: With several businesses being in the habit of owing withheld taxes, such must be adequately investigated and be made to pay withheld taxes and remit to government coffers.

Use of Tax Private Agents/ Consultants: Empirical evidence has shown that private firms are more efficient and effective in ensur-

ing compliance with the statutory guidelines. Therefore, whether in facts/data gathering or collection of taxes and levies, private tax consultants have proven to be able to achieve more over and above public servants.

Non-Remittance of Income: The use of electronic transfer of funds must be employed to make remittance of taxes and levies collected very quick and efficient. A sanction regime for embezzlement and misappropriation must be maintained to curtail pilfering.

Training of Manpower: The employees of the Local Governments must be adequately trained to deliver the best results. Correlating to this is that remuneration to attract the best staff must be established.

Tax Education: Each local government area must educate its citizens as to the need to maintain tax compliance. Tax education must be embarked upon right from the early stage of education and be built into academic curriculum in schools.

Further, Religious teaching should inculcate responsibility to pay tax accurately.

Standard Master Register of Taxpayers/Better Taxpayer Records Update: Each local government must aim at the best practice of Standard Master Register of Taxpayers.

It is without doubt that the Taxes & Levies Act has adequately allocated sufficient basis for taxes and levies to be administered and collected by the Local Government Councils which can serve as sources of IGR rather than the unhealthy reliance on federal allocations. An effective exploitation of these tax bases will help sustain the local government councils during these dire times.

Olumide K. Obayemi, an attorney admitted both in California and Nigeria, is from Ijebu-Jesa, in Osun East Senatorial District.

12.04.2016

/15

“Conjoined Twins”: Consolidation in the Oil and Gas Industry through Mergers and Acquisitions Ola Alokolaro

T

he oil price recently fell below $40 per barrel having hovered around $40-$50 for the past year.

The current price slump is putting a tremendous strain on the cash flow of all exploration and production companies irrespective of size and raises some serious questions including but not limited to: a) The length of time before oil prices rebound from their current slump. b) The required actions to adapt to this new low price environment. c) Probable waves of mergers and acquisitions to capture growth positions at the current low prices or more on the high margin lower risk assets to strengthen cash flow.

The International Oil Companies (“IOCs”) operating in Nigeria and Nigerian independents are not immune from the vagaries of the global oil market. Their fortunes are worsened by a number of factors including the non-passage of the Petroleum Industry Bill (PIB) and the inability of the Nigeria National Petroleum Corporation (NNPC) to meet its cash call obligation under its various joint ventures.

It is perhaps in anticipation of these present circumstances that IOCs such as Shell and Chevron, commenced as far back as 2010 divesting assets they may have deemed as higher cost assets with unsuspecting Nigerian independents snapping them up in the hope of having a firmer foothold in upstream activities.

The seemingly good opportunity for Nigerian independents up until last year may now be turning out to be a nightmare for some of these companies. The low oil price is beginning to affect their balance sheets with some struggling to meet their debt obligations. With debt pressures mounting on the recent purchasers of the IOCs divested assets and as a means of survival it seems inevitable mergers and acquisitions consolidation may be the only succour for some of these companies.

The international scene has not fared better with global oil and gas debts tripling from $1.1 to $3trillion between 2006-2014.

We have already begun to see major merger transactions such as the proposed Royal Dutch Shell $5 billion takeover of BG. In light of the foregoing and the possible flurry of consolidation activities in the sector, it is important that stakeholders understand the legal framework for mergers and acquisitions in Nigeria.

The Regulatory Framework The principal legislations and regulations governing Mergers, Acquisitions and Takeovers (“M&As”) in Nigeria are the Investment and Securities Act, 2007 (“ISA”); the Companies and Allied Matters Act (“CAMA”) and the Securities and Exchange Commission Rules and Regulations, 2013 (“SEC Rules”). In addition to these, there are sector specific Legislations and Regulations relating to M&As such as the Petroleum Act; Central Bank of Nigeria Act, 2007 and the Banks and Other Financial Institutions Act, regulating M&As in the banking and financial sectors; the Electricity Power Sector Reform Act 2005 regulating the nascent electricity sector in Nigeria; The Insurance Act, 2003; the Companies Income Tax Act 2011 and the Nigerian Communications Act for M&As in the telecommunications sector.

The Securities and Exchange Commission (“SEC”), by virtue of the ISA,

exercises regulatory oversight over all forms of business combinations between or among all private companies, all public companies, partnerships and transactions consummated under the authority of any Federal or State Government Agencies.

Merger Procedures The ISA and the SEC Rules classify Mergers into three broad categories: Small, Large and Intermediate. The extant SEC Rules provides that, to qualify as a small merger, either the combined assets or turnover of the merging companies must be below N1,000,000,000.00 (One Billion Naira). The threshold for an intermediate merger is between N1, 000,000,000.00 (One Billion Naira) and N5, 000,000,000.00 (Five Billion Naira) whilst the threshold for a large merger is any value above N5, 000,000,000.00 (Five Billion Naira).

The parties to a small merger do not require the approval of SEC before the commencement of the merger procedure.

The parties are however required, upon successful completion to notify SEC of the completion. The parties to an intermediate or large merger are obligated before commencement to notify SEC of the proposed merger and obtain prior approval, with or without conditions.

The merger notice to SEC is typically accompanied with the following documents: (a) Completed Merger Notification Form (b) A joint letter of intent from the merging entities (c) Extract of Board Resolutions of the merging entities in support of the merger duly certified by a Director and the Company Secretary. (d) A copy of the letter appointing the financial adviser(s), (e) Certificate of Incorporation certified by the Company Secretary, certified true copies of Form CAC 7, and Memorandum and Articles of Association of the merging entities. (f) A letter of No objection from the Companies Regulator(s) (where applicable) (g) The Audited Accounts of the merging entities for the preceding five (5) years or the number of years the Companies have been in operation, if less than five (5) years. (h) Evidence of payment of the prescribed filing fee, (i) Information Memorandum and (j) Scheme Document.

The Scheme Document is the principal document in a merger transaction which contains corporate and other information about the merging entities. The scheme document would, amongst other things, typically provide the following information: 1. Separate letters from the Chairmen

of the merging companies addressed to their respective shareholders.

2. Explanatory statement to the shareholders by the joint financial advisers, addressing the following: a) The proposal. b) Conditions precedent. c) Reasons for the proposal. d) Approved status. e) Meetings and voting rights. Etc. Acquisitions The SEC regulates acquisitions for both private and public unquoted companies.

The procedure for an acquisition involves the acquirer filing a letter of intent through a registered capital market operator. Some of the documents that accompany the letter of intent are: 1) Two (2) draft copies of Information Memorandum; 2) Extracts of board resolutions of the acquirer and the acquiree agreeing to the acquisition signed by the company secretary and a director. (where applicable); 3) The recent CAC certified true copy of the Memorandum and Articles of Association of the acquirer and the acquiree; 4) The certificates of incorporation of the acquirer and the acquiree, certified by the company secretary; 5) Extracts of shareholders’ resolution of the acquirer and the acquiree signed by a director and company secretary; 6) Summary of the claims and litigations of the company to be acquired; 7) A copy of “No Objection” letter from the relevant regulatory body (where applicable); 8) Copies of letters appointing the financial adviser(s); 9) CAC certified form showing particulars of directors and allotment of shares of the acquirer and the acquiree; 10) Notarised consent of directors of the acquirer and the acquiree.

The SEC Rules also make provision for the publication of the acquisition in two national newspapers.

Takeover The quantity/value of shares that is considered sufficient to confer control is usually fixed by law. By virtue of section 131(1) ISA, acquisition of between 30 and 50 % (or a lower or higher threshold as may be prescribed by SEC from time and to time) of the rights of the target company’s called up shares by individual or company qualifies as a takeover¬.

A takeover bid is dispatched to sharehold-

ers of the target company in order to acquire shares of any class, attain sufficient shares so that the target becomes a subsidiary or gains control over the company. A takeover bid cannot be made for a private limited liability company. Further, a bidder is required by virtue of Rule 445 (4) SEC Rules 2013 to publish its takeover bid in at least 2 (two) national daily newspapers.

This is to serve as a notification to the general public of its intention to offer a takeover bid for the target company. In addition, SEC rules also mandate a bidder to make an announcement on the floor of the stock exchange of their intention to make a takeover bid to the target company.

Sanctions The recent amendment to the SEC Rules provides for penalties for non-compliance with the provisions of section 118(1) of the ISA and Rule 423(1) with respect to seeking the approval of SEC prior to commencing any form of business combination in Nigeria.

In the case of a merger amongst companies with combined assets or turnover between N1, 000,000,000.00 and N5, 000,000,000.00, contravention of section 118(1) of the ISA and Rule 423(1) attracts a penalty of not less than N1, 500,000.00 and thereafter N5, 000.00 for every day of continuing default or nullification of the said transaction from the date of consummation of the transaction.

Mergers amongst companies with combined assets or turnover of N5, 000,000,000.00 and above shall be liable to a penalty of not less than N2, 000,000.00 and thereafter N5, 000.00 for every day of continuing default or nullification of the said transaction from the date of consummation of the transaction.

An acquisition in private / unlisted public companies with combined assets or turnover of N500, 000,000.00 and above shall be liable to a penalty of not less than N1, 000,000.00 and thereafter N5, 000.00 for every day of continuing default or nullification of the said transaction from the date of consummation of the transaction.

Conclusion The laws regulating mergers in Nigeria are extensive and as such parties contemplating transactions of this nature must ensure that the procedure followed is in compliance with the laws to avoid any sanctions.

Ola Alokolaro is a Partner at Advocaat Law Practice.

16/IMAGES

12.04.2016

Recently a special dinner was held in honour of Alhaji Sadiq Adamu on his appointment as an Executive Director & General Counsel of ExxonMobil companies in Nigeria.

Here are the personalities who graced the occasion.

L-R: Dr. Eyimofe Atake SAN, Alhaji Sadiq Adamu, Ms. Megha Joshi, Alhaji Mohammed Hayatu-Deen, Hajia Hauwa Adamu, Mrs. May Agbamuche-Mbu and Mr. George Etomi

Alhaji Sadiq Adamu and Hajia Hauwa Adamu

L-R: Alhaji Sadiq Adamu, Hajia Hauwa Adamu, Mrs Ifeoma Ajogwu and Professor Fabian Ajogwu SAN

L-R: Professor Fabian Ajogwu SAN, Alhaji Sadiq Adamu, Hajia Hauwa Adamu, Ms. Megha Joshi and Mrs. May Agbamuche-Mbu

L-R: Mr. Stephen Kola-Balogun, Mr. Charles Edosomwan SAN and Mr. Emmanuel Amade

L-R: Mr. Chami, Alhaji Sadiq Adamu, Hajia Hauwa Adamu and Mr. Sale Chami

L-R: Mr. Gbenga Oyebode MFR, Mrs. Kofo Dosekun and Alhaji Sadiq Adamu

Mrs. Mia and Mr. Charles Essien

L-R: Mr. Juwa Oteri, Mr. Eseoghene Idigbe and Chief Mike Ozekhome SAN

Mr. Uche Nwokedi SAN (left) and Mr. Juwa Oteri

L-R: Celebrant with family – Mrs. Shamsiya Sadiq-Mohammed (Daughter), little Mahad Al-Noor Sadiq (grandson) Capt. Sadiq Mohammed, (Son- Inlaw, Hajia Hauwa Adamu and Mr. Abdul Hakeem Sadiq-Adamu (Son)

L-R: Mr. Olumide Akpata, Capt. Sadiq Mohammed and Alhaji Sadiq Adamu

25

T H I S D AY • TUESDAY, APRIL 12, 2016

BUSINESSWORLD

ENERGY

Power Outages: Has the Federal Govt Surrendered to Vandals?

With the prolonged nationwide darkness and a recent statement credited to the president’s media aide, Mr. Femi Adesina imploring Nigerians to go and fight pipeline vandals, Ejiofor Alike posits that the government may be overwhelmed by the activities of vandals, who disrupt gas supply to power generating stations The sabotage of gas transportation lines by militants and restive communities has over the years, frustrated federal government’s efforts to address the huge electricity deficit in the country.

According to statistics by the Nigerian National Petroleum Corporation (NNPC), Nigeria produces about eight billion cubic feet of gas per day.

Of this figure, 1.9 billion cubic feet is supplied to the domestic market daily for power generation and other domestic uses.

With gas accounting for 81 per cent of electricity generation in the country, the constant attacks on major gas pipelines have disrupted gas supply to the power generating stations.

Among all the gas pipeline networks that are susceptible to attacks by vandals and oil thieves, the Trans Niger Pipeline (TNP) in the eastern Niger Delta and the Trans Forcados Pipeline (TFP), in the western Niger Delta are the worst hit.

For instance, between December 29, 2014 and February 9, 2015, six different attacks on these pipelines resulted to the loss of 150 million standard cubic feet per day of gas (MMScf/ d), an equivalent of 700 megawatts.

Indeed, when Forcados was closed down in the first week of January 2015 due to sabotage, power generation dropped by 1,500 megawatts as almost half of the country’s gas production was affected.

Forcados is Nigeria’s major artery, accounting for 40-50 percent of gas production in the country.

The current nationwide darkness has also been blamed on the recent bombing of the Forcados subsea pipeline.

The February 14, 2016 spill on Forcados subsea pipeline forced Shell to declare force majeure on February 21, with the country losing over 1,500 megawatts to the damage, which is yet to be repaired.

The country has since remained in darkness after the February 2, 2016 peak generation of 5,074 megawatts.

Forcados pipeline is a crude oil facility but once it is heavily impacted by sabotage or equipment failure, gas fields that supply gas to power stations are shut down because the liquid condensate they produce together with gas is normally evacuated through the pipeline.

Another major pipeline that has suffered constant attacks by oil thieves and vandals is the Escravos-Warri-Lagos Pipeline.

The pipeline is owned and operated by the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

Apart from being targeted by vandals, the Escravos pipeline has also been vandalised several times by the aggrieved elements in Gbaramatu and Ugborode communities in Warri South West Local Government Area, each time they have cause to protest against the NNPC or Chevron.

The first pipeline attack under this current administration before the latest Forcados incident had occurred when suspected ex-militants blew up a section of the pipeline in Warri South-West Local Government Area.

The attackers reportedly blew up the gas pipeline at three different points -Opudebubor, Okpelama and Kpokpo area, Chanomi Creek and Sahara, behind Chevron Nigeria Limited.

Shortly before the attack, Niger Delta exmilitant’s leader, Government Ekpemupolo, alias Tompolo, had raised the alarm that some persons were planning to bomb crude oil facilities in the Niger Delta and attribute the attacks to him.

He blamed those allegedly aggrieved with the re-election of Governor Henry Seriake-Dickson of Bayelsa State for the planned attack.

Refinery and Petrochemical Company, as well as gas feedstock to the West Africa Gas Pipeline Company (WAPCo); West African Portland Cement Plants at Shagamu and Ewekoro in Ogun State; PZ Industries at Ikorodu; and City Gate in lkeja, Lagos.

Minister of Power, Works and Housing, Mr. Babatunde Fashola When Escravos-Warri-Lagos pipeline is down, it impacts gas supply to power stations in Olorunsogo in Ogun State, Geregu in Kogi State, Omotosho in Ondo State and Egbin Power Station in Lagos State.

In fact, the 1,320 megawatt-capacity Egbin Power Station receives all its feedstock through the Escravos-Lagos pipeline system, which has a capacity of over 800 million standard cubic feet per day of gas (MMscfd).

Also the 434megwatt capacity Geregu 1 Power Station in Kogi State, and the Geregu NIPP Plant, which has the same installed capacity rely on Escravos pipeline for gas supply.

Others include Olorunsogo Power Plants 1 and 2 in Ogun State; and Omotosho Power Plants 1 and 2 in Ondo State.

From Itoki in Ogun State, the Escravos-LagosPipeline also feeds into the West African Gas Pipeline, which takes gas from Nigeria to Ghana, Togo and Benin Republic for power generation and other domestic uses.

The pipeline also supply crude oil to Warri

Government’s perceived helplessness Despite the damage inflicted on Nigeria’s oil and gas infrastructure, as well as the economic lives of the nation and her people by vandals, the federal government seems to have lacked effective strategies to tackle the menace of vandalism.

It is believed that both the government’s security forces and the private security guards deployed to check vandalism have either been overwhelmed by the activities of vandals or have been compromised as sabotage of gas infrastructure has remained a major impediment against sustainable power supply, despite the huge resources spent by the federal government to maintain the forces watching over these critical assets.

The federal government’s perceived helpless has been demonstrated by the pronouncements of key members of the government, who have resorted to appealing to the conscience of vandals.

For instance, a former Minister of Power, Professor Chinedu Nebo, who had vowed during his screening by the Senate to chase away the demons from the power sector, was on several occasions literally begging vandals to keep away from the country’s gas facilities when it dawned on him that former President Goodluck Jonathan’s administration would not hit its targeted 5,000MW of electricity by 2015 due to vandalism.

Also President Buhari’s Special Adviser on Media and Publicity, Mr. Femi Adesina was quoted in a recent Television interview imploring Nigerians to go and hold vandals responsible for the current drop in power supply.

“If you are crying that you are in darkness, go and fight vandals,” he was quoted as saying.

But apparently embarrassed by the poor power situation, the federal government had earlier through the Minister of Information and Culture, Mr. Lai Mohammed apologised to Nigerians for the epileptic power situation.

Mohammed had also blamed vandalism for partly being responsible for the power woes.

“The vandalism of the Forcados export pipelines forced oil companies to shut down, making it impossible for them to produce gas,” he added.

The government’s perceived helplessness is a disincentive to the private investors, who bought the power assets based on government’s guarantee to provide gas to power the generating plants.

A former Group Executive Director in charge of Gas and Power at the NNPC, Mr. David Ige told THISDAY that vandalism needed to be addressed.

According to him, gas pipeline vandalism is usually a manifestation of grievance with the community or militants.

Ige, who is the Chief Executive Officer of GasInvest Limited, added that crude oil vandalism could also be a consequence of grievance or outright criminal motive (theft), stressing that bespoke solutions must be developed for each.

He 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 400mmcf/d a few years ago, the domestic supply capacity is now close to 2,000mmcf/d. However much of this growth is not visible due to the vandalism mentioned above or due to other challenges in the power sector such as transmission,” he added.

To curb vandalism, Ige suggested social engagement in the Niger Delta, stressing that inclusion and empowerment is key.

He also advocated technology deployment for surveillance of infrastructure and rapid response (drones), as well as monitoring and classification of contractors for effective policing of contractors that may be colluding with vandals to destroy the assets.

26

T H I S D AY • TUESDAY, APRIL 12, 2016

BUSINESSWORLD

ENERGY

Oduntan: Some Nigerians are Paying Electricity Bills for Others Sunday Oduntan is the Director of Research and Advocacy for the Association of Nigerian Electricity Distributors, the umbrella body of the 11 Discos. In this interview with Chineme Okafor, he spoke on how the electricity distribution companies are performing.

The poor state of power supply is profound now, how are the Discos taking it?

Power supply has not been good of recent, but it is not the Discos’ fault. I apologise to Nigerians particularly those paying their bills and those who are willing to pay, because there are those that are not even paying at all and there are some that are not willing to pay.

But for those patriotic Nigerians, I apologise to them for being taken into this stress of not having power. I appeal to our people to be patient as we are all in it together. It is in the Discos’ interest to supply power and the more we supply the more money we will be able to collect from people anywhere.

The fact is that we have to take it that we are on a five-step journey, where we are today is just step two. However, by the time we get to the final step, it will be a total reformation of the power sector.

We will get to a point where one could choose his own power distributor just by a phone call. In England where I lived for 26 years, I lived in the South of England towards the coast and I was using Scottish power which is far from England. With just a phone call, you can change your service provider just like the telecommunications firms now, but that is a long way off.

Our challenges are primarily because the country is producing far less than a quarter of what it requires. With a country that has a population of over 160 million, and going by the rule of thumb for electricity provision all over the world, we need to generate 1000 megawatts (MW) per one million citizens.

This means Nigeria needs about 160,000MW to have 24 hours uninterrupted power supply across every nook and cranny of the country but that is a distant target so we have to go back to the reality. If we exclude those who generate power for themselves like some churches and other big companies - if they continue to generate for themselves and do not depend on the national grid and if some other big companies can also emulate that – for us to have uninterrupted power supply or at least guarantee 18 hours every day of power every day to those who are currently connected to the grid, we need 20,000MW. To attain this, we need a lot of money and investment. It is not cheap but it is attainable.

Does this suggest that President Buhari’s 10,000MW target in three years is unrealistic?

He mentioned 10,000MW by 2019 and I say, yes it is very attainable. In fact, we achieved 5,074MW several weeks ago.

But in terms of capacity to do more, we have some scattered assets all over the country, which if we put them together can give us another 5,000MW. In addition, for us to get to 20,000MW, we need to construct brand new plants to generate another 10,000MW which will cost about $12 billion and the good thing here is that government don’t have to put down the money.

Those funds can come through Foreign Direct Investments (FDI); the only problem is that for that to happen, we need to assure of our integrity and that Nigeria has changed, and that government can give the investors Sovereign Guarantee so that they can be sure that they will be able to recoup their investments. I believe that it is possible, I have no doubt that we will get there.

Can the Discos distribute what the president wants to be generated?

The Discos in this country are capable of taking the 10,000MW, and I think you have to direct that question to the TCN. I know that for a system that was neglected for 50 years, you cannot expect it to be alright immediately. TCN was given to Manitoba in

up and when dollar has gone down we are not going to reduce tariff.

Some Discos are doing their job and we have to praise them that in spite of all those challenges, they are making serious effort to meter customers. In Abuja, it is being done cluster by cluster but unfortunately the issue of meter is very emotional to people.

Everyone is entitled to meters and I apologise that it is taking so long. It is so because we met a missing gap of 5 million.

For more than 32 years, NEPA and PHCN just ignored the job of providing meters.

Some communities have also refused to be metered. There is a community in Akwa Ibom state, Ikot Abasi that refused to be metered by the Port Harcourt Disco. The Disco staff were beaten and their vehicle seized by the community when they went to meter them.

The same thing occurred in New Bussa in Niger state, the Disco went there and offered them meters, they refused and vandalised them, saying they don’t want meters. These are the kind of challenges that we face in the sector. It shows that there are some Nigerians that don’t like to pay for electricity bill.

Oduntan 2012 to manage because of the weak system.

They have being doing a lot of work and expanding the network, strengthening and refurbishing it. How much of it they have done or how far they have gone on it, I wouldn’t know. But I know that they are also aware that they are targeting the same thing.

For generation, I have no doubt that they are prepared to do that. For us as Discos, with our existing capacity in this country we will be able to do more than 10,000MW. We found that out of the $40 billion required to reach the 20,000MW generation target for 2020, the Discos require only $2.5 billion to fix the networks including the cables and pole.

What are your current most pressing challenges in the sector?

The Ministries, Departments and Agencies (MDAs) of government owe us about N60 billion. As at the end of December 2015, it was over N58 billion cutting across federal, state and local governments.

The Nigerian Military particularly are owing us more than any other group, especially the Army. I will also like to talk about beating up of our staff by the military; it is totally unacceptable and it has to stop. We are calling on the President who himself is a retired General of the Army and the Commander In Chief of the Armed Forces to call his boys to order.

There is this current case of the Army Brigade at Abeokuta, in Ogun state. The incident happened on the 6th of March between 10am and 12pm when one Major Musa led other soldiers and they went to an injection substation at Rounder in Abeokuta. They beat up the guy on duty, Mr. Salawu. They said they had no light and for that reason they went to the control room in the injection substation to harass him. Meanwhile they have had light for the eight hours prior to when they were switched off and they were switched off because there was need to do load shedding for other customers.

The army all over the country have turned themselves to oppressors and we will not let this incident go just like that. We have made attempts already. A letter has been sent to the Commander but no response has been gotten yet. The military should stop beating Disco staff or any civilian for that matter, we are not in the politics of electricity; we are all in

the business of electricity but some people have become very political especially when we talk about the issue of tariff.

There’s so much finger pointing in this sector, how can we get out of this?

I just want to let you know that out of our total generating capacity, we can only distribute what we are given Once there is vandalism and not enough gas to fire the power stations and there is no light, the Discos are called names but when we collect the bills, only 25 per cent of it belongs to us. 60 per cent goes to the generation companies who also pay for the gas supplied, 11 per cent goes to the Transmission Company of Nigeria (TCN) while 4 per cent goes to the other stakeholder including NERC, the regulator.

But of course, when there is low distribution there will be low collection and there will be no money to pay the gas suppliers. Everybody needs to play their role, once the chain is broken, the system suffers. For instance, if we have 5,000MW and people are not paying as we experienced recently when we had it, our losses increase. With higher supply, we expect that there should be an increase in our revenue having given more light but it is not so.

Those who are metered are now bypassing their meters; so many with prepaid meters are bypassing it and every such act affects all parties. For every one that bypasses his meters, it means they are using electricity free and it is affecting whoever else is on that transformer with them that is on estimated billing.

How are the Discos trending with their metering plans?

The current economic reality has made this task even more difficult. There are many factors that determine its success. The exchange rate is one of them as well as bank interest rate and others. What it means is that if before you could buy a dollar for N200 and you have N200,000 you will be able to buy $1,000 but today if you have N200,000 you can hardly buy up to $500 to $600. As the rate fluctuates, so does your purchasing power.

We have a new tariff now but the naira has gone worse against the international currencies like the dollar. However, we cannot increase tariff just because dollar has gone

Have the Discos all gotten their share of the CBN intervention fund?

People have being talking about the bailout, but there is none for the power sector. The CBN fund was an intervention loan given to Discos at 10 per cent interest rate payable over a 10 year period.

That was what they called bailout but it is a loan. On handover in 2013, they even promised to give the sector an initial fund of N50 billion for each of the first two years, but government never did that.

Was that promised N50 billion every year supposed to be a bailout?

No. Again the method we have used for the privatisation has been used in other countries like Kenya and Uganda in Africa and places like Chile and India. When you privatise using this model, you have to cushion the effect.

There was no cost reflective tariff as at November 1, 2013. What we got in. February this year was the tariff that was supposed to have been there since 2013.

The N50 billion was supposed to cushion the tariff shock if the tariff had gone up then as part of subsidising it for the consumers.

So, are you now asking government to subsidise power consumption?

We are not. The government knows the fact and that is the true position of things, but I know that the government does not have money, so we are not asking government for subsidy for now.

What we are asking is that we should have an enabling environment such that other foreign investors can come into the system and that can only happen if we have appropriate pricing.

What were the Discos expected to do with the CBN loan?

First of all, it is not all the Discos that have accessed it. I think about five or six so far have taken it. It is tied to CAPEX expenditure and other investments including the cost of bridging the gap for our payments for legacy debts.

All the Discos today are in deficit. No Disco is making profit because we are not getting 100 per cent of our bills. People are not paying their debts. We are not saying those debts are even coming to our pockets.

We need to get them so we can pay our creditors. The NBET stands between us and the Gencos. NBET is like our guarantor now.

27

T H I S D AY • TUESDAY, APRIL 12, 2016

BUSINESSWORLD

ENERGY

Lagos Communities Disown Petition against Integrated Oil’s Proposed Refinery Stories by Ejiofor Alike Sixteen communities, as well as the Osinowo royal family of Taqwa-Bey, Abagbo, Itamaro village and its environs in Amuwo-Odofin Local Government Area of Lagos State have dissociated themselves from a petition purportedly written on their behalf by one Onoriobe Raymond Gold, against the proposed Integrated Oil and Gas Refinery that will be sited on Tomaro Island of Apapa riverine area of the state.

In a letter addressed to the Chairman of Integrated Oil and Gas Limited, and signed by the 16 Baales of the various communities on the Osinowo island and the Osinowo family, the communities dissociated themselves from what they described as false representation of events on the island.

The communities also apologised to the company for the embarrassment caused by the petition.

The community leaders said they were aware of the plans of Integrated Oil for the island and had held several engagements with the company over the last two years. They also revealed that they held a meeting with the company last month, which the representatives of the Federal Ministry of Environment also attended as part of the initial preparation

for the Environmental Impact Assessment (EIA).

“Integrated Oil and Gas has always engaged with our communities through us, the Baales and we have always passed down the information to members of our communities on their plans for the island.

We know that these projects will bring developments like roads, borehole water and electricity to the island and provide jobs to our youth. It is clear that some people do not want progress to come to this island but instead would wish to blackmail Integrated Oil and Gas in the hope to make money for themselves, hence the wicked letter and publication by these fellows.

We want the world to know that the person or persons do not represent the communities on Osinowo Island and should therefore be disregarded,” the communities explained.

The letter, which was obtained by THISDAY, was signed by Baale of Agala 1, Chief Isa Okeshina; Baale of Agala 2, Chief Akesode; Baale of Ikate, Chief Ikate; Baale of Ifako, Chief James Ebenezer; Baale of Kwakoji, Chief Benerd Wetto; Baale of Tomaro, Chief Sulaimon; Baale of Akopanawa, Chief Usanowhe; Baale of Sabokoji, Chief Anthony and Baale of Shiku, Chief Shewanu Isiku.

Other signatories include Baale of Irede, Chief Femi Alade; Baale of Ganve, Chief Samuel Ganveh; Baale of Araromi, Chief Adepetu; Baale of Agbogbedo, Chief Wesu Oseni; Baale of Ituagan, Chief Ikuesan; Baale of Igase, Chief Samuel and Baale of Igbo Alejo, Chief Adeiyi Aderibole.

THISDAY also gathered that on receipt of the petition, the Federal Ministry of Environment convened an open forum

in Lagos where the petition was read with representatives of the Federal Ministry of Environment, Lagos State Ministry of Environment, Lagos State Ministry of Waterfront, Lagos State Ministry of Local Government and Chieftaincy Affairs, Amuwo-Odofin Local Government Area, Department of Petroleum Resources (DPR), and all community development associations (CDAs) present.

At the forum, the petition

was read and the communities refuted all the points raised by the petitioner, insisting that they were untrue.

Based on the position of the communities, the stakeholders passed a resolution that: “that the community supports the Tomaro Island Refinery Project; that the communities dissociate themselves from the petition written by Raymond Gold and articulated by Augustina Armstrong Ogbonna; that the EIA process had started as

far back as December 2015 and currently ongoing; that physical development of the project is yet to commence; that the communities insist that Raymond Gold apologises to all relevant regulatory bodies and also Integrated Oil and Gas Limited for the embarrassment that he has caused all concerned.”

The communities also held a press conference where they refuted the allegations contained in the petition.

Niger Delta Group Urges Buhari TOUR OF BATN FACTORY L-R: Area Operations Director, British American Tobacco Nigeria (BATN), Charles Kyalo; Comptroller General Nigeria Customs Service to Disregard Planned Protest (NCS), Col. Hammed Ibrahim Ali (rtd); Managing Director, BATN, Chris McAllister; Deputy Comptroller General in charge of excise (NCS), Mrs Grace Adeyemo; Area Finance Director, BATN, Anthony Copty; and Area Head, Legal and External Affairs, West and Central Africa, against Kachikwu BATN, Freddy Messanvi; during the Comptroller General of Customs’ visit to the BATN Factory in Ibadan ...recently An oil monitoring group, the Niger Delta Indigenous Movement for Radical Change (NDIMRC) has urged President Muhammadu Buhari to disregard the planned protest against the current fuel scarcity by Occupy Nigeria, saying it was a veiled protest by the group to force the Minister of State for Petroleum Resources, Dr Ibe Emmanuel Kachikwu out of office.

A group, Occupy Nigeria, had said it would mobilise Nigerians for a peaceful protest in Port Harcourt, Rivers State, on Thursday, April 14, 2016 over the failure of the federal government to address the perennial fuel scarcity in the country.

The co-facilitator of the group, Mr. Livingstone Wechie, reportedly added that another protest would be organised against the current supply of poor electricity amid increased tariff and incessant/ fraudulent bank charges on poor Nigerians.

But in a swift reaction, NDIMRC in a statement signed by its President, Nelly Emma, Secretary, John Sailor and Public Relations Officer (PRO), Stanley Mukoro, said the protest against fuel scarcity was targeted at the minister to force him out of office over problems he did not create.

“Dr Kachikwu is busy right now trying to ensure that we overcome the lingering fuel crisis in the country and yet somebody is calling for protest to instigate the President to

sack him because of problems he did not cause. We should allow the Minister to remain focused on his national assignment.

These unnecessary distractions from some disgruntled politicians and stakeholders in the oil and gas industry are not healthy in our present situation in the country,” the group said.

The group said the recent call for protest was uncalled for and unacceptable, adding that all hands must be on deck to end this fuel crisis.

“Our President is too familiar with the tricks and selfish motivated interests of disgruntled politicians and sponsors of such protests and therefore the call for protest must be ignored,” the group added.

NDIMRC described as tissue of lies, all the allegations against the minister on the fuel crisis and insisted that none of the factors that escalated the crisis was under the control of the minister.

“We are amazed that the minister is even being accused of using a private jet at the expense of the state and using consultants to run the NNPC and had embarked on changes in NNPC without carrying the staff along.

It should be noted that the Minister was the Vice Chairman of ExxonMobil before his appointment and now he is the Minister of State for Petroleum Resources and same time the Group Managing Director of the NNPC.”

BG Technical Inaugurates First Pipeline Pigging Products Factory in W’Africa BG Technical Limited, 100 per cent indigenous firm has completed and inaugurated first pipeline, pigs and accessories factory in Nigeria and West Africa.

The inauguration of the factory located in Owerri, Imo State, was performed at the weekend by the Acting Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Mr. Patrick Daziba and the Group General Manager of the National Petroleum and Investment Management Services (NAPIMS), represented

by Mr. James Jock.

The factory is expected to generate foreign exchange for Nigeria and help to provide quality products for the maintenance of pipeline so as to prolong life span and reduce cases of pipeline rupture as well as leakages.

The Executive Secretary of NCDMB, represented by the Director of Monitoring and Evaluation Mr. Tunde Adelana disclosed that the multibillion Naira factory was another evidence and validation that the efforts of the board was paying off in real terms in the oil and gas industry.

This, he said is another attestation to the fact that

Nigerians can develop the required industry capability once the enabling environment is in place.

“The opening of the factory is indeed worthy of celebration. Looking back at the years of pre-NOGICD Act, investors like B.G Technical would probably not be able to compete in the area of pigging services due to the preponderance of foreign goods and services,” he noted. “ I would like to encourage other companies across sector to always strive to develop their capacities and capabilities-human and structural-as the focus of local content development is not to compromise quality but to ensure that work done by local companies can compete with that of their counterparts in any part of the world,” he added.In his speech, Jock, said NNPC had the mandate to utilise local resources in the execution of projects in the upstream sector in line with the NOGIC Act. “ My commitment from NAPIMS is that we are going to support B.G Technical so that the investment made to domesticate technology and create jobs in-country would not go down the drain,” he said.

Ikeja Electric Warns against Cash Payment to Staff The Ikeja Electric has cautioned customers against making cash payments to its staff and unveiled new multiple payment channels to enable customers make convenient and seamless payments and purchase of tokens.

The company’s Head of Corporate Communications, Mr. Felix Ofulue, said in a statement that the company’s linesmen, engineers and technicians were not commissioned to receive cash payments of any kind.

“Basically, our Linesmen should not collect reconnection fees, neither are our Energy Sales Representatives (ESR’s) permitted to receive bill payments on behalf of customers.

We have therefore embarked on an aggressive “Name & Shame” campaign where parties who engage in this fraudulent act will face prosecution as dictated by the laws of the land,” he said.

Ofulue, who labelled staff and ex-staff who engaged in this illegal act as saboteurs, further urged all customers to resist efforts by any staff to extract monies from them illegally and also report them to the management.

He explained that the new payment options were designed to offer all customers security, greater convenience and choice, and also intended to make the payment process more efficient.

“We are committed to providing our customers with the greatest level of customer service and introducing these multiple secure and convenient payment channels is yet another aspect of our service offering,” he said.

Ofulue explained that with the expansion of the payment channels, the company is addressing the challenges of all category of customers as post-paid customer accounts are credited promptly, avoiding unplanned service interruptions while prepaid customer are provided with more convenient vending channels.

He, however, reminded customers to ensure they collect their receipts as it is the only proof of payment.

He warned that customers who continued to make illegal payments to staff were not only doing so at their own risk, but were also sabotaging the efforts of Ikeja Electric to improve service delivery across her network.

While reacting to the issue of unauthorised technicians and electricians posing as the company’s linesmen, the company spokesman advised customers to ascertain the true identity of staff who call on them on behalf of Ikeja Electric by requesting to see their identity cards.

28

T H I S D AY • TUESDAY, APRIL 12, 2016

BUSINESSWORLD

INDUSTRY

Nigeria’s Economy Bleeds, Manufacturers Hit Hard as Q1 Ends Crusoe Osagie looks at the extremely harsh operating environment in the first quarter of 2016 and how it impeded output There is palpable social and economic tension blowing across the nation.

Municipal power supply is almost non-existent, petrol scarcity intense, purchasing power at an all-time low, the country is on the brink of a total shutdown.

Nigeria’s real Gross Domestic Product (GDP) growth rate fell to 2.11 per cent in the fourth quarter compared to 2.84 per cent recorded in the third quarter of 2015. Meanwhile, the conditions that characterised economic slowdown in the fourth quarter of 2015, namely, uncertainty around economic policies, adverse external environment, security challenges in some parts of the country affecting production and distribution of agricultural produce, low electricity supply, fuel shortages, and the foreign exchange crisis, persisted in the first quarter of 2016.

Prices Soar According to the National Bureau of Statistics (NBS), Nigerian consumer price index (CPI) increased to 11.4 per cent in February, 2016, the highest in three years. This represented about 1.8 per cent rise over the 9.6 per cent inflation in January. The increase was attributed to the increases across major segments, which make up the headline index (for instance, the Food sub-index increased by 11.3 per cent, up by 0.71 percentage points from rates recorded in January). Meanwhile, the foreign exchange crisis remains the largest risk to the inflation outlook. This is a huge cause for concern to industry players as patronage, turnover and profit margins outlooks become weaker. The unusual combination of slowing growth and rising inflation present a difficult policy challenge.

Naira on Free Fall The average naira exchange rate remained stable at the inter-bank segment of the foreign exchange market with a daily average of N196.99/US$ between January 25 and March 14, 2016. So far, the value of the naira has depreciated by 17.2 per cent at the CBN window from N165 to the dollar (which it was at the end of December 2014), to the current rate of N196.9. However, the parallel market is still under pressure for the last couple of months even as the depreciation remained huge with the value of naira weakening by almost 100 per cent at an average of N320/$ to date.

The recent sharp depreciation of the naira exchange rate in the parallel market is a cause for concern. It is a trend that should not be allowed to continue and all necessary steps need to be taken (and urgently too) to stem the slide and volatility. It is as much of an issue to consumers as it is to producers and other stakeholders that create value in the economy. It calls for an urgent review of the current foreign exchange policy.

Interest Rate The Lagos Chamber of Commerce and Industry (LCCI), in a report last week stated that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) resolved, among other issues, to raise the Monetary Policy Rate (MPR) to 12 per cent from 11 per cent. It also increased bank’s Cash Reserve Ratio (CRR) to 22.5 per cent from 20 per cent. The upward review signalled a reversal to monetary tightening.

Among other implications for business and economy, the increase in the Monetary Policy Rate (MPR) from 11 per cent to 12 per cent; and review of CRR from 20 per cent to 22.5 per cent stand to trigger upward trend in the lending rates and hence, borrowing and overall costs in the economy. This could also result in the channelling of available funds into financial instruments to the detriment of real sector.

Capital Inflow Over the past three years, the flow of investment into the country has been declining. According to the NBS, in the last three years, Nigeria has

Textile plant recorded a total decline of $11.68bn (N2.3tn) in investment inflow with total investment inflow of $51.7bn (N10.18tn). The report revealed that all the three major components of investment such as foreign direct investment, portfolio investment and other investments all recorded declines within the three-year period. This drop especially in 2015 is not unconnected with the tough economic environment resulting from the lower global oil price and prevailing foreign exchange policies.

The LCCI prescribed that in order to reverse this trend and increase capital inflows into the country, the government needs to step up efforts to enhance capital flows into the economy by relaxing existing foreign exchange policies to facilitate inflows from export proceeds, diaspora remittances, and foreign investment.

Manufacturers Downsizing Operators in the manufacturing sector are all

For example, Guinness Nigeria Plc in response to the prevailing economic challenges in the country will be embarking on a round of staff rationalisation, which will see a significant number of employees declared redundant and disengaged from the company

seeking ways to lower their cost and the first area often looked at is the payroll.

For example, Guinness Nigeria Plc in response to the prevailing economic challenges in the country will be embarking on a round of staff rationalisation, which will see a significant number of employees declared redundant and disengaged from the company.

THISDAY investigation revealed that not less than 100 employees from all segments of the business will have their employments terminated as the company grapples with the unrelenting foreign exchange crisis and tries to keep pace with competition.

Confirming possible job cut, the Corporate Services Director of the beer and beverage makers, Mr. Sesan Sobowale, noted that the restructuring, which the company is embarking upon will look at all the cost components of the business, including head counting and ultimately result in some job losses.

He, however, noted that it had not been determined yet the extent and the number of persons that would be affected by the exercise.

Sobowale, who said that the company would be release an official statement on the issue today, stated: “ We are reviewing the organisational structure of the business and looking at all the cost components in order to cut cost in view of the prevailing economic condition the country and the foreign exchange challenge.

“Purchasing power in the country is low, we are not willing to raise prices and people are drinking cheaper brands. So there will be head counting and we do not know yet how many people will be affected.

145 Textile Companies Shutdown The Minister of State for Industry, Trade and Investment, Mrs. Aisha Abubakar, last week expressed worry 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.

She expressed the regret that an industry, which had been the highest employer of labour after the government had suddenly become a shadow of its own, engaging only “very few people.” However, 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 Cotton Textile and Garment (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.”

The Chairperson of the CTG 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.

29

T H I S D AY • TUESDAY, APRIL 12, 2016

BUSINESSWORLD

INDUSTRY

New Roadmap Will Revive Agriculture, Says Ogbeh Stories by Crusoe Osagie The Minister of Agriculture and Rural Development, Chief Audu Ogbeh, has assured Nigerians that the implementation of the new Agricultural Roadmap as conceptualised by the ministry would revive and transform the agricultural sector.

The minister made the pledge while declaring the National Agricultural Show open at the Abuja –Keffi Show ground, Nassarawa State.

Ogbeh said the roadmap would help revolutionise agriculture in Nigeria by engaging all the key stakeholders, particularly state governments, the organised private sector, Investors, women, youth farmers’ as-

sociations in the agricultural production and agro-export value chain.

He stated that the goal of the present administration was to build an agribusiness economy capable of meeting Nigeria’s domestic food security requirements and generating exports to broaden the national revenue base.

He said the administration would support sustainable income and job growth potentials through wealth creation, promotion of entrepreneurial activities, youth employment and enhance national productivity.

Ogbeh said: ”No Nation can truly boast of being sovereign if she cannot feed her citizens on a sustainable basis”.

He emphasised the need to

put in place adequate measures for ensuring sustainable food security bearing in mind the anticipated population growth of 450 million people in 2050.

The minister explained that the present administration would pursue the development of agro exports in areas it had competitive edge in the past, mentioning Cocoa, Palm produce, Groundnuts, Cashew, Yam flour as such areas.

According to him, there would be improvement in the use of fertilizers for higher crop yields, saying, “ Fertilizers would be put into appropriate use in each state of the Federation to avoid soil damage.”

Ogbeh said agriculture

would be promoted as an all year round activity since farmers can no longer continue to rely on rain-fed agriculture because of the changing climatic conditions but assured that the over 200 under utilised dams in the country would be put to effective use.

The minister maintained that government would achieve self-sufficiency in egg production by promoting more investments in the livestock sector, establish one extension centre in all the 774 Local Government Areas.

He added that selfsufficiency in grains like rice, sorghum, maize, millet, as well as milk and meat would also be achieved within the next 36 months.

He expressed optimism that the Sustainable Development Goals (SDGs), which intends to end poverty and hunger (Goals 1&2) and other complementary agenda such as Agenda 2063 of the African Union for sustainable development would be achieved if the Agricultural Roadmap is well implemented.

Earlier, the Chairman, Board of Trustees of the National Agricultural Foundation of Nigeria (NAFN), Senator Adamu Abdulahi, said the objective of the agricultural show was to sensitise the people on the importance of agriculture.

Adamu maintained that agriculture and solid minerals are the future of Nigeria and charged the youths to take

the lead in agriculture for their own sake and that of the country.

The representative of the Food and Agriculture Organisation (FAO) in Nigeria, Dr. Louise Setshwaelo at the event called for concrete and robust actions to make agriculture more attractive to the younger generation, by ensuring efficiency and profitability of agriculture as an industry.

Setshwaelo said FAO would continue to partner with and support government efforts to open the door to new opportunities towards the achievement of National goals and Sustainable Development Goals.

Orji Empowers Abia Farmers to Adopt Organic Fertilizer Usage Emmanuel Ugwu, in Umuahia Farmers in Abia state at the weekend embraced the novel idea of using organic fertilizer for farming, in order to enhanced food production.

The new technique was introduced by Senator Theodore Orji through his empowerment programme.

The organic fertilizer, according, which is applied in liquid form, according to experts, is environmentally friendly and enhances food production three times more than the conventional inorganic fertilizer that farmers have been using over the years.

Abia is the second state after Ebonyi to embrace the use of organic fertilizer by farmers.

Over 100 farmers, who would pioneer the use of organic fertilizer during this year’s cropping season received the farm input, including sprayers during the maiden distribution of empowerment items of the Senator representing Abia central held in Umuahia.

Orji, who is the vice chairman of the Senate committee on agriculture, said that he was committed to attracting those things that would benefit his constituents, adding that it was his desire to bring any innovation that would ensure adequate food production in the state and enhance the economic well being of the people. He noted that by equipping farmers with the means to enhance their output, it would also impact positively on their economic wellbeing as they would have enough to eat with their families and also enough to sell to make money.

He enjoined the pioneer recipients of the organic fertilizers to give him feed back on the impact of the organic fertilizer on crop yield, adding that more farmers would be involved in the next phase of the programme. He advised the beneficiaries of his empowerment programme to make good use of the various

items given to them in order to achieve the purpose of the empowerment programme.

Aside from the farm inputs, other empowerment items were also distributed to beneficiaries drawn from the six local governments that make up Abia Central senatorial district.

They included 20 units of 2.9Kva generators, 21 grinding machines, 20 sewing machines, 14 motor cycles, 8 tricycles, 2 buses and 15 wheel chairs for the physically challenged.

Speakers at the event, which attracted chieftains of the ruling Peoples Democratic Party (PDP), said that the empowerment programme was not a surprise to them given that Orji engaged in similar projects when he was governor.

Governor Okezie Ikpeazu, who was represented by the state commissioner for industries, Chief Henry Ikoh, said that Orji has always been good to his people and has proved within a short period that he would give Abia Central quality representation in the National Assembly.

“This empowerment programme would generate food security and economic advancement in Abia state,” he said, adding that as “a pillar of democracy” in Abia Senator Orji has ensured that he left a legacy of equity, justice and fairness in power sharing in Abia state.Deputy national c hairman of PDP, South East, Col Austin Akobundu (rtd), who spoke on behalf of Ikwuano/Umuahia component of Abia Central, said that Orji has kept faith with his electoral promises, adding that his footprints are visible in every local government in the area.

Speaking on behalf of Umunneato component of Abia Central, Chief Allen Nwachukwu, who is also the state deputy chairman of PDP, said the people of Ngwa would remain supportive and eternally grateful to Senator Orji for ending their long years of struggle to produce a governor.

WE ARE OPEN FOR BUSINESS

L-R: General Manager, Retail Shop & Franchise, Tolulope Tope-Awofeko; Ogun State Deputy Governor, Mrs. Yetunde Onanuga with Regional Operations Director, Lagos Region, Oladokun Oye, during the unveiling of Airtel Express Shop at Park Place Mall, Admiralty Way, Lekki, Lagos…recently

Sokoto Moves to Boost Rice, Local Meter Manufacturers Back Wheat Farming FG’s Initiative Mohammed Aminu in Sokoto Sokoto state government is to give priority to the production of rice, wheat and tomatoe to boost the economy of the state, the Chairman of the State Comittee for the Revitalisation of Agriculture, Alhaji Chiso Dattijo has said.

He stated this during a meeting with members of the state chapter of the All Farmers Association of Nigeria (AFAN) in Sokoto at the weekend.

According to him, the move became necessary in view of the drastic fall in the price of oil in the international market.

He said the move was aimed at boosting food security and enhancing the well being of farmers in the state.

To this end, Dattijo urged the Association to come up with a data base of their activities to enable the state government assist them in terms of

processing and storage of their commodities.

Dattijo, who was a former deputy governor in the state, said the state government would provide adequate fertiliser, seedlings and extention workers to the farmers this year.

“The Present administration has accorded priority to agriculture and will provide the required inputs to farmers to ensure a bumper harvest this year,”he said.

In a remark, the state Chairman of AFAN, Alhaji Murtala Gagadu Minanata, said Sokoto was among the top producers of rice, tomatoe, onion and watermelon in the country.

He solicited the state government’s support and assistance towards improving farming activities in the state.

Minanata also, expressed satisfaction with the recent move embarked by the state government to revamp agriculture in the state.

Electricity Meters Manufacturers Association of Nigeria (EMMAN), the umbrella body for local meter manufacturers, has supported the federal government’s initiative on metering scheme for Nigerians and expressed commitment to the successful of its implementation.

EMMAN pledged its support in communiqué issued at the end of a strategic meeting between its members and ZIKLAGSIS Networks Limited (ZNL) in Abuja recently.

According to the Executive Secretary, EMMAN, Mr. Muideen Ibrahim, who made the communiqué available, local meter manufacturers have resolved to ensure that their various factories work in full capacity to deliver on the metering needs.

The group noted that the manufacturers are confident that the metering project would bring about economic revolution and development as it

would create job opportunities for the teeming unemployed Nigerians as well as enhance transfer of technology to the country. According to the EMMAN the quality of meters manufactured its members are of international standards that can compete favourably with any brand from any part of the world, adding they are tropicalised for the Nigerian environment to withstand the extreme weather condition such as temperature and humidity.

One of the major decisions taken at the meeting was that the local manufacturers would produce at least 25,000 meters monthly for a start and with a plan increase production gradually to meet the metering need and for ease of deployment.

Ibrahim disclosed that EMMAN and ZNL have requested the federal government a twomonth lead-time from the day the contract is awarded and commitment made.

30

T H I S D AY • TUESDAY, APRIL 12, 2016

BUSINESSWORLD Ecobank to Drive Efficiency, Financial Inclusion with Technology The Managing Director, Ecobank Nigeria, Charles Kie, has disclosed that the bank will adopt top of the range banking technology to push its market penetration strategy to become one of the top three Nigerian banks in the next three years.

Kie, who assumed leadership of Ecobank Nigeria in January, said rather than build new branches, the bank would continue to deploy its state of the art technology including social media, analytics, and cloud, among others to reach every segment of the Nigerian population.

Kie maintained in a statement from the bank that the best means to achieve penetration of financial services is not by branch network but robust technology through alternative channels.

According to the Ecobank Managing Director, the bank has no plans to embark on branch expansion or merger and acquisition to achieve financial inclusion in Nigeria.

He added:“One topic that is dear to my heart is financial inclusion.

The number of our branches that will be dedicated to separate activities will be defined, agreed on, duly approved and then we will roll out a strategy to touch the population that today requires such services.

For instance microfinance as a means to have access to financial services will

be provided by dedicated branches, obviously for that and others, technology will be the main driver.

“Social media, analytics, and cloud are items that today drive what we do when it comes to operational efficiency and inclusion.

And as a bank, these are the elements that we will embed into our technology strategy to precisely achieve that financial inclusion.”

Kieemphasised that the bank would also give top priority to staff training and development to enhance customer service, stating that, it was in line with the vision of the Bank to chun out the best manpower not only in Nigeria but in the whole of Africa.

He added: “My view is that to achieve excellence in customer service, the teams have to be hired, trained, and framed to achieve the level of customer service that we want.

And therefore it can only become part of the DNA of the organisation; which is what we want to focus on to make sure that the people we attract, train, and retain are in fact molded to fully embrace the culture we want to build when it comes to customer service.”

He submitted that with the new strategies in place, the bank will be the preferred and respected bank in the new few years.

Chamsmobile, Skye Bank Introduce e-gift payment A VISA e-Gift payment card has been launched by ChamsMobile, a licensed mobile money operator in Nigeria, and Skye Bank Plc. It is an online VISA card, which ChamsMobileKegow subscribers can send by mobile phone. The e-Gift card follows the successful introduction of Kegow’s virtual VISA card in August 2015, the first of its kind in the Nigerian market.

The e-Gift card works exactly the same way, but is mainly for sending monetised gifts to family, friends, business associates etc., in order to eliminate the stress and worry of what to buy for them on special occasions. It is an entirely digital payment card for online and mobile use, locally and internationally and is unique in that recipients get a full picture of the Virtual eGift Card on their mobile screen, PC, or tablet.

Speaking about the new product, Head, Echannels, Skye Bank Plc, Mr. Mr.AkinwaleOjo, was quoted in a statement from the bank as saying the bank was excited to offer the card, after partnering with ChamsMobile.

The Deputy Managing Director of Chamsmobile, Mr. Gavin Young, expressed great enthusiasm for partnering with Skye Bank and Visa after identifying the consumer need for such a unique product.

According to him, the new product would bring a multitude of opportunities and benefits to Nigerians, describing the VISA eGift Card as an extremely diverse product that can be sent to recipients on so many occasions, like birthdays, weddings, graduation, baby showers, religious occasions, get well, housewarming, retirement, a simple ‘thank you’, and more.”

“The eGift Card is ideal for someone looking to send a last-minute gift with immediate delivery, or wants to schedule the eGift Card to be sent on a specific day or future date, such as birthdays, along with a personalised message.

“The eGift Card is also linked to a broad range of financial services giving the recipient many options for using the card. These include: purchasing goods and services online wherever Visa cards can be used, both locally and internationally, buying airtime, transferring funds to bank accounts, etc.”

“Users actually get to see all the essential features of a physical card, but in its ‘virtual form’; card number, expiry date and CVV number.

This, for many consumers and businesses, is enough to replace the need for a physical plastic card linked to a traditional bank account,” he added.

NEWS

Niger to Continue with Contributory Pension Scheme LaleyeDipo in Minna The Niger State House of Assembly has refused to withdraw the state from Contributory Pension Scheme (CPS) despite clamour by organisedlabour in the state.

The state house of assembly has also passed the 2016 budget presented before it

by Governor Abubakar Sani Bello last December.

The Assembly, which received the report of its committee on labour, finance local government and judiciary instead of asking the government to withdraw from the

CPS decided that workers who had been in employment before the introduction of the policy in 2006 be exempted from the scheme while those employed in 2006 and beyond should remain in the scheme.

The chairman of the committee, Madaki Malik Bosso, who submitted the report to the assembly which was subsequently passed by the committee of the wholerecommended that the areas of the bill where ‘repeal’ was recommended should be replaced with ‘amendment’.

This was even after the committee in its report

conceded to the fact that the CPS ‘is domesticated in only six of the 36 states of the federation showing clearly its unacceptability’.

The assembly also noted a lot of discrepancies from the various reports submitted to its committee on the contributions by workers saying that while the Pension Funds Administrators (PFAs) claimed that over N22.625billion was contributed between the period, the scheme started and last year the pension Board said N35.8billion was collected.

The house discovered also

that majority of workers in the local government areas of the state, were neither registered with nor did they have any retirement savings accounts with any Pension Fund Administrator.

However the house, which directed that the amended bill be sent to Governor Bello for his assent did not recommend punishment or recovery of any lost fund.

In another development, the assembly has passed the 2016 appropriation bill submitted to it by the governor last December jerking the figure up by about N10billion.

WOOING INVESTORS

R-L: Kebbi State Governor, Atiku Bagudu; Executive Director, Nigerian Export Import Bank (NEXIM), Bashir Wali and acting Managing Director, Bank of Industry (BOI), Mr. Waheed Olagunju, during the 2016 Kadinvest Summit, in Kaduna……recently

Dana Air Partners Diamond Bank onLounge Services Dana Air is partnering with Diamond Bank to provide lounge services for its business class passengers, thereby fasttracking boarding.

The airline said with this innovation, it has assured its business class passengers that there is no better way to relax before their flight with Dana, than with the array of benefits that the Diamond Lounge offers with an available standby Automated Teller Machine (ATM) to ceaselessly provide service to customers.

The Diamond Lounge is such a place set up to make passengers feel comfortable, get their mind off stress of the past and live in the moment so as to prepare for the challenge ahead.

“The lounge is open to guests from Monday to Saturday 7am to 7pm and on sanitation days from 11am to 6pm, the lounge is also open on Sundays from 8am to 6pm.

It is reserved for only Dana Air’s Business Class passengers and Gold card members of the airline’s Frequent Flyer program.

Passengers of the airline can enjoy these benefits by either flying Dana Air Business Class or register for the airline’s frequent flyer program, Dana Miles, fly and accrue 9000 miles

to become a Gold Card holder or a member. To become a Gold card holder or member, when passengers book and fly Dana’s Business flexible they get 875 miles, Business saver 750 miles which means for theem to become a Gold member and benefit from the lounge, they need to fly the business flexible like 11 times and business saver 13 times,” spokesman of the airline, Kingsley Ezenwa said.

He explained that the Diamond Lounge offers a lot of services for the comfort of the passengers before a flight, adding that it provides a relaxing ambiance with a serene atmosphere.

“The Lounge has free Wi-Fi service, for those who love to stay connected to friends and family and those who have work to do online. The lounge also provides refreshments from cookies and tea, coffee, drinks or water and then for those interested in news and latest happenings as well as entertainment, the lounge provides Dstv channels, magazine for reading and for cash issues, there is an Automated Teller Machine (ATM) with mint notes, diamond bank inquiries and details can be sorted out from the lounge and many more,” he also said.

Home Appliances Giant, Bosch Enters Nigeria Market Raheem Akingbolu Global home appliances giant, Bosch, has partnered a Nigeria company, Pedini Nigeria Limited, to compete and give consumers choices in the market.

Speaking at the inauguration of the Bosch Centre in Lagos recently, the Chief Operational Officer of the company worldwide, Dr. Michael Schoellhorn, said Nigeria’s population and growth prospect is among other attractions that propelled investment of Bosch in the Nigerian market.

Bosch Home Appliances is part of BSH Home Appliances Corporation, a wholly-owned subsidiary of BSH Hausgeräte GmbH, based in Munich, Germany and it’s Europe’s largest producer of household appliances and a world leader in its field.

With the partnership a Nigeria leader in luxury kitchen equipment, BSH Home Appliances has thus opened a 200-square-metre showroom.

Schoellhorn said he has no doubt that the Nigerian market would benefit immensely from the quality of products and services Bosch is bringing to

the table.

“We are expecting a lot in Africa and indeed Nigeria considering the size of the population and the potentials it has for growth.

We have no doubt that the Nigerian market would benefit immensely from the quality of products and services we are bringing to the table,” he said.

Also, the Head, Africa Region of Bosch, Mr. NovertKlien, who was also at the well-attended ceremony, said Nigerian consumers, would find their array of quality home and kitchen products very useful and hard to resist.

The Chief Executive Officer of Pedini Nigeria Limited, Mr. ChieduNwokolo, said many of the products they were bringing into the market are targeted at addressing the day to day challenges faced by many Nigerians especially with appliances used in kitchens.

“At Pedini, we decided to partner with Bosch in solving some of the problems encountered by many Nigerians in the kitchen because they are the most reliable brand in the entire continent in terms of durability, quality and technology.

31

T H I S D AY • TUESDAY, APRIL 12, 2016

BUSINESSWORLD

NEWS

South-East, South-South Professionals’ Forum to Drive Regional, Economic Devt A non-governmental body of intellectuals and professionals, South-East, South-South Professionals of Nigeria (SESSPN’s) forum scheduled to hold on April 28 and 29, 2016, in Port Harcourt, is expected to drive regional and economic growth in the country.

The Chairman Planning Committee of the forum, Mr. Sam Ohuabunwa, explained that the time has finally come to redirect the economic development trajectory of the South-East and South –South away from its present sorry state back to its original pre-oil era focus and dynamism.

He pointed out that the regions with its abundance of latent human capital potential, could aptly be described as one of the several economic enclaves from which the African continent could hope to develop into a global economic player.

The past chairman of the Nigeria Economic Summit Group (NESG), during a press conference added that the quest for sustainable economic development has become imperative for every developing country of the world, stressing that entrepreneurship and innovation are now acknowledged globally as antidotes to the challenges of unemployment and poverty.

He said, to reverse this deplorable trend and restore the fortunes of the country, the 2nd regional forum on these

geo-political zones would focus on fine-tuning and updating the regions’ 20 year development blueprint developed by the organsiation which its official unveiling is expected to hold June 2016 and also promote the massive investment in human capital development via entrepreneurship and innovation as stimulants and sustainers of economic transformation.

“The theme: “A new roadmap for regional integration and economic Development of the South-east and South-South a 20 year Development Agenda (DASESS 2035)”, will instigate the transformation of South-east and South-South zones into a global investment destination by attracting investors, identify areas of comparative and competitive advantages of the regions and plan optimal exploitation in a synergistic manner,” he said.

He said the forum will also complement the efforts of government at all levels and other private sector organisation towards engineering growth and success especially in the Small and Medium Enterprises (SME) sector in and around the region, spear-headed by its citizens in collaboration with interested multinational organisations. He noted that the forum will go a long way in laying new foundation for growth and rapid development, facilitate effective communica-

tion, refinement of policies, access to entrepreneurial financing as well as lead to increased entrepreneurial drive among young people.

“It will also create a forum for networking and building strategic alliances which will help strengthen businesses in the region,” he added.

According to him, the forum will also help to determine how to harness the abundant human and material resources of the regions through collaborative

efforts and help prepare the zones for a post-oil Nigeria by re-enacting the agricultural and manufacturing revolution of the 1960s.

SON Blames Quack Professionals for Collapsed Building To investigate building materials Crusoe Osagie The Standards Organisation of Nigeria (SON) has stated that the building materials used in the construction of the five storey building, which collapsed in Lekki will be thoroughly investigated, also warning that if the building materials used are found wanting, the suppliers will be severely dealt with by the law.

The Director, Inspectorate and Compliance, SON, Mr. Bede Obayi, explained that the building built on a reclaimed land and less than 50 metres away from the sea was built by non professionals, which he said did not take into consideration the necessary requirements before embarking on the structure.

According to him, “We have noticed that just behind the collapsed building, there are reclaiming efforts being made to reclaim lands from the sea which is not up to

50 metres away from the collapsed building and when you reclaim a structure from such a site, it has to undergo a lot of preparation before you put up structures, there must Environmental Impact Analysis (EIA) on the site and the site also has to be possessed and retained for sometime before embarking on such construction.”

Obayi during an inspection exercise to gather relevant samples for testing to determine the remote cause of the collapse, also discovered buildings around the collapsed building filled with cracks showing that the buildings were not built by the right professionals. ”It is going to be a complete investigation of the kind of professionals that are handling this. Around the collapsed building are structures with cracks where the Lagos State government has marked it to be removed

and sealed. If you want to build you should look for professionals and do not come here to sacrifice quality to make money. We have not condemned any product here as substandard, we will condemn any product when it had undergone conformity test ,” he stressed “Some people who are quacks in the profession, are here playing with innocent lives because these people who lost their lives here, we cannot get them back. The land on which the building was built was reclaimed from the sea, so we will be doing the analysis of the water, soil , sand, blocks and the steel bars and all these analysis will give the agency and other relevant regulatory agencies to step and decisions to take ,” he added.

He recalled that SON had earlier issued a marching order to some steel companies, maintaining that with the

latest development, the agency will step up its enforcement exercise to ensure compliance “Our investigation continues and I have told you that the rods have identification marks. So anybody found guilty must be properly disciplined and penalised and SON will determine what type of measure we are going to take on discovery of the non compliance,” he said.

Furthermore, he said: “If you use the best building materials in the world to construct a building by a quack, you are not going to get a positive result. So we are saying wrong people were used in the construction of this building.

The right things were not done and we have always said that professionals must be used to get the job done. What pains SON is that people are paying with their lives and that is the agony of what is happening here.”

TECH+ Conference & Expo is a place where new technology comes to life, new products are launched and innovation converges.

EXHIBIT AT #TECHPLUS2016 Africa’s Largest Tech Gathering Theme: A connected World Date: 22-23 July 2016 Venue: Eko Hotels & Suites VI, Lagos

REGISTER NOW

FEATURES 10,000+ Attendees

Gaming

50+ Speakers

Hackathon

80+ Sessions

Startup Zone

Startup Zone

Kid’s World

www.techplus.com.ng info@techplus.com.ng +234 703 359 4090

E E C i O C

32

T H I S D AY • TUESDAY, APRIL 12, 2016

PROPERTY & ENVIRONMENT Scarce Forex: Time to Focus on Nigerian Manufacturers of Building Materials The scarcity of foreign exchange is causing untold misery in the country, particularly among those who import building materials. A major reason for their desolation is the difficulty in getting forex to replace sold items. This has led to an increase in the prices of building materials, a situation that is compelling builders to look inwards by using higher percentages of materials manufactured in Nigeria. Besides, it is important for Nigerians to buy goods produced in the country, writes Bennett Oghifo

T

he principle in the construction industry is that project owners look for alternative materials that can fit and equally perform the function of a particular material that is not available instead of slowing down construction time and, to beat inflation.

Promoters of projects in Nigeria usually find it convenient to order ship loads of building materials from Europe and China. They argue that these materials are manufactured to their specification within a short time and that this makes installation easy and fast.

Regardless, since the slowdown in the economy and the difficulty in procuring forex for some outlawed items, they are beginning to look inwards. They are making visits to building materials’ manufacturers in the country to see if they can cut similar deals and, more importantly, get similar quality since these companies may be using the same machinery for production.

The fear now is what happens to the importers if the Nigerian alternatives take hold; since the local alternatives may be the preferred brands in future. But this is no concern for the local manufacturers who are bent on cashing in on the forex drought to up their game and dominate the market. Their pricing is stable and competitive, considering the fact that they use a lot of local content that are often exported to where they are made into finished products and then shipped back to Nigeria.However, there are other materials that are yet to be manufactured locally and these form the little percentage of products that must be imported.

A building roofed with material manufactured in Nigeria Local materials…

Nigeria has, apart from steel products, all other building materials required in the construction of any building. These include blocks, concrete, roofing materials, ceiling, electrical wires and cables, wood works, tiles, and interior design systems for finishing.

The sad aspect of it all is that these local manufacturers are struggling to keep up because of the mindset of the average Nigerian for imported goods, regardless of where it is from and regardless of its quality. This is the same reason some people are accused of manufacturing products in Nigeria, take them across the border, and bring them back as imported or that they manufacture them here and use foreign labels to give the false impression that these products were imported.

All things considered, it is difficult for the local manufacturers to compete in a terrain where the cost of production is very high with spiral effect on cost of locally manufactured goods.

But with the forex issue more Nigerians are beginning to look inwards and, as it is said locally, they are “boycotting the boycottables”.

Regardless, products manufactured in the country are sturdy and made to fit the nation’s environment. It is a natural law for people to build with the materials in their landscape and eat what is in their environment.

So, it is time for Nigerians to use the nation’s products because they are good and because the process will create jobs for the people.

Builders, property developers and government contractors must look inwards by patronising local manufacturers of building materials in order to reduce pressure on scarce forex and create employment opportunities for the real estate sector- from manufacturers of products to vendors and dealers to technicians who install these products. Patronising local manufacturers will reduce the fondness of Nigerians to depend on imported materials that can and are being produced in the country.

Roofing materials…

There are very good roofing materials manufactured in Nigeria and these are researched and built to withstand the nation’s rain and sunshine, as well as designed to hold the dry harmattan weather.

There are various companies in the country that manufacture roofing materials such as aluminium long span sheets and other cement-based products that Nigerians, regrettably, still import.

Besides, there are allegations that those who import these products bring in substandard ones that are lesser in grams unlike those manufactured in Nigeria. The Aluminium roofing sheets Manufacturers’ Association made

this point and others in their protest to SON recently. These substandard roofing materials are sold cheaply, making it difficult for local manufacturers to compete.

Also, Nigerite, a company that has been in Nigeria since 1959, producing building solutions, including roofing, ceiling and claddings should be taken seriously. They have been able to compete because their products are good and they have international connections which ensure good quality control.

Specifically, Nigerite Limited was incorporated in Nigeria on April 29, 1959 as a joint venture between Etex Group of Belgium and Odua Investment Company Limited of Nigeria. At over 56years, the company, consummated as a fibre cement roofing and ceiling company, is today the largest organisation in West Africa, engaged in the manufacturing, marketing and installation of fibre cement, roofing and ceiling sheets compressed sandcrete roofing tile (Crowntile French and Crowntile mission), Kalsi building boards, Alurr-shingles premium roofing tiles, Siniat-plasterboard, light gauge steel truss systems, dry wall integrated building solutions, among others.

The company’s roofing and ceiling brands are also exported to ECOWAS countries, such as Ghana, Republic of Benin and Togo, according to the Marketing Communications/Research

Manager of Nigerite, Mr. Victor Jolaoso. The company has a variety of products that make Nigerite a complete building solutions company.

Also in the products portfolio of Nigerite, are Fibre Cement roofing and ceiling sheets made from polyvinyl Fibre (a derivative of crude oil), cement and cellulose only; compressed sandcrete roofing tiles; and Drywall integrated building solutions, among others.

On the company’s range of products, Jolaoso said, “Nigerite has been involved in the production and manufacturing of many quality products through research and innovation adding that the new Kalsi and Solo extra are the outcome of the innovative thinking as a complete building solutions company.”

Nigerite is not selling Kalsi as a product but as a building solution, which is the reason it comes with other items like the galvanised steel and cement board.

Wire and cables…

Nigerians may not be aware that the Standard Organisation of Nigeria (SON) has certified that wires and cables manufactured in the country are better than those from foreign countries because they are produced to fit the nation’s environment and electricity system. They are believed to hold when other wires and cables burst into flames.

Njie to Discuss Affordable Housing at FIABCI’s Event

A

reputable building and Chief Executive Officer of Taf Africa, Mr. Mustapha Njie will discuss ‘Affordable Housing’ at a cocktail of Fiabci Nigeria.

Taf Africa Homes is one of the

leading property development companies on the continent. The Group’s track record over the years has won it numerous accolades both nationally and internationally.

The event will hold on April 15 during the conference of the Nigerian Institution of Estate

Surveyors and Valuers (NIESV), which began yesterday. Fiabci Nigeria recently joined the campaign for affordable housing and endorsed the slogan: ‘The City We Need is Affordable.’

The occasion will afford Real Estate Professionals to network and discuss opportunities

available to find solutions on affordable housing.

“Our goal is to find various ways to reduce, as quickly as possible, the current imbalance between the low supply and huge demand for moderately-priced housing units,” said Gbenga Ismail.

33

T H I S D AY • TUESDAY, APRIL 12, 2016

PROPERTY & ENVIRONMENT

‘Hotel Presidential Project Still on Course’ Bennett Oghifo The redevelopment of the prestigious Hotel Presidential, Enugu has not stopped, regardless of some unforeseen challenges, the promoters have said.

Following extensive negotiations, a Joint Venture Agreement was executed in 2013 between Hotel Presidential Ltd (owned

by Enugu State Government) and E-Hospitality Services Ltd for the renovation and management of Hotel Presidential Enugu.

On account of the agreement, a special purpose vehicle, Primeview Hotels Ltd was

incorporated to facilitate the transaction.

As per the Joint Venture Agreement, 80 per cent of the equity stake in Primeview was allotted to E-Hospitality Services while 20 per cent was allotted to Hotel Presidential Limited. Primeview was to fund the renovation and thereafter manage the Hotel for a 35year period. The title of the Property has been duly vested in Primeview Hotels Ltd for the duration of the concession period, the parties said in a statement, recently.

Primeview said it is poised to embark on the next phase of its Work plan and is cur-

rently engaging with the Enugu State Government to resolve a number of unforeseen issues, which have arisen.

On the challenges, the statement said, “The company, sometime last year, became aware of a lawsuit filed by a party which allegedly had a previous interest in Hotel Presidential. The said party issuing Enugu State Government, among others, for alleged wrongful termination of a Lease Agreement in which the state government purportedly granted it a lease hold interest in Hotel Presidential. Prime view has been joined as a defendant in

the suit and our lawyers are currently handling the matter.

Discussions are ongoing with the State Government and other relevant stakeholders with a view to resolving the issues thrown up by the lawsuit.

“We have also learnt that some internal process issues have been raised regarding our project and discussions to resolve them are also ongoing. We have received firm assurances from the Enugu State Government that these issues would be favourably resolved and pose no threat to the sanctity of our transaction.

The company has expended substantial resources on the

project thus far and we remain fully committed to delivering a world-class hotel facility in Enugu and look forward to working with the State Government as a partner in achieving this objective.

The development adviser of the property, they said has been duly vested in Primeview Hotels Ltd for the duration of the concession period.

The company has since mobilised to site and achieved the following milestones: regularisation of statutory documents of Hotel Presidential Limited; conduct of feasibility and business Study; Engagement of world class

Professional Consultants; Project Manager; Development Adviser; Architect; Structural Engineer; Mechanical and Electrical Engineer; Quantity Surveyors; Conduct of Hydrological Survey; Conduct of Topographical Survey; conduct of Structural Integrity Test on Building; conduct of Environmental Impact Assessment (EIA); structural Engineer Mechanical and Electrical Engineer; Quantity Surveyors.

The company said they has done complete strip out of pipes, wires, among others in the entire building and complete water proofing and refurbishment of roof.

How to Replicate El-rufai’s Zeal in FCT Administration Akinsola Alonge It was Charles de Gaulle that said, “Men are great only if they are determined to be so”.

It is apparent that the FCT has not been so lucky in having ministers determined to be great and reproduce (at least if they cannot surpass) the achievements of Mallam Nasir El-Rufai regarding the administration of the city affairs. The following questions you hear these days are troubling and shameful: Who is the FCT Minister?

Why is Abuja becoming dirty and disorganised? The level of mediocrity and impunity that has overtaken this beloved city since 2007 is unprecedented and saddening. For Architects and allied professionals like I am, reckless distortion of the FCT Masterplan, organisation and administration is disheartening.

It is a fact that the best administration or measure that mitigated the spiralling decay in the FCT was the Obasanjo/El-Rufai partnership between 2003 and 2007.

The partnership confronted the corruption, impunity and recklessness that they had met entrenched in the system. They adopted a “no-nonsense” and “no friend-of-the-status-quo” approach to achieve results.

Mallam El-Rufai developed and perfected a system that was on its way to making Abuja a truly Modern Capital City like Johannesburg and AbuDhabi and left with outstanding success. Unfortunately, every other administration has been peopled by politicians who are after their pockets rather than effective administration of the FCT. Great Hope and Expectation Since most of us (including this writer) voted for Buhari, we had and still have great hope that it is possible to re-enact the spirit of Mallam Nasir El-Rufai as regards the FCT administration.

So let us give the present FCT Minister, Mallam Muhammed Bello the benefit of the doubt.

Though, I must say that lots of Nigerians are disappointed that no visible plan of action has been seen yet. It is expected that Mr. President would form a powerful partnership with the Minister just as President Obasanjo did with Mallam Nasir El-Rufai. I have great liking for PMB and utmost confidence in his ability to bring change to the FCT and

Nigeria. The FCTA ought to be chaired by Mr. President as Governor as provided by law while the Minister should serve as the Minister of State just as he is doing with the Petroleum Ministry.

The hardest thing to do in Nigeria is to be different and take pride in perfection. It is said that Mallam Muhammed Bello abhors corruption and is a stickler for details. Though not too late to act, it was expected that within a few weeks of being sworn in, he would start dismantling most of the shameful legacies of the immediate past FCT administration that took pride in allocating green areas, sewer/waterways and open spaces to government officials, religious organisations and other patrons.

Degeneration and Impunity Our beloved Capital City Territory has degenerated to the extent that Mr. President will need to declare an Emergency for the re-birth and renewal of the FCT in its entirety from the septic corruption in the Federal Capital Development Authority (FCDA) where officials make it difficult for registered professionals to thrive as evident in the development of non-fancied, non-iconic buildings in the city, to the allocation of visible green areas to Mosques/Churches (this is a present danger that the APC-led government should immediately avert before it becomes a dragon that cannot be contained). For instance, it is in the public domain that the former administration allocated a plot of land to a popular church in Apo which was later discovered not to be originally designed for a religious institution and has become a contentious issue now.

Another impunity is in the allocation of green areas to selected individuals for the development of an Event Centre and a Mosque for Wuye District Muslim Community adjacent to the FCT Wuye District Office.

Another gloomy example is the allocation of a corridor between Federal Ministry of Finance and the Yobe State House along Ralph Shodeinde Street in the Central Business District to a Car dealer where cars are now being sold, thus constituting a security risk to this important Federal Government Ministry at this time when we should be more security-conscious.

We must not allow these acts of impunity to continue

L-R: Managing Director, Allott Consulting Ltd., Attahiru Bala Usman; Environmental Officer, Federal Ministry of Environment, Umar Bichi; Resident Engineer, Ports & Terminal Multiservices Ltd ( PTML), Natale Testa; Assist Director, Federal Ministry of Environment, Mrs. E. Gomwalk; and General Manager, PTML, Babatunde Keshiro, during the environmental compliance monitoring exercise carried out at PTML’s facilities at Tin Can Island Port, Lagos… recently

unchecked. We must also not be tempted to think these issues can be covered up in the course of reviewing the city’s masterplan.

Neither should we act as if it is none of our business to poke our snout into the administration of the city, because such will be like a self-threatening suicidal time bomb targeting the development of a modern planned city.

Questionable Land Allocation Allocation of plots to influential politicians, military personnel, civil servants, etc., for gardens is now the practice, where permanent structures are erected as event centres, restaurants, car-sales depots, etc. Even the existing spaces allocated for gardens are not properly maintained. For instance, the Asika Ukpabi Gardens in Wuse Zone 5 has degenerated so far that it has become a den of thieves and an eyesore to the public. This garden was commissioned by the then President Obasanjo/El-Rufai.

One will feel terribly disappointed that it had to take Senator Dino Melayo and his colleagues from the Senate to alert the FCT Minister on the abuse of the green areas in Maitama along the Nnamdi Azikiwe Expressway/IBB Boulevard, opposite the Aguiyi Ironsi Barracks. Of recent, a

director in the FCT was openly embarrassed on a national TV as being part of the beneficiaries of the impunity and lawlessness that has characterised this projected modern city, for erecting his personal house on that same green area.

Meanwhile, green spaces that have survived the indiscriminate conversion into personal uses and retain their status as gardens are not properly maintained.

As the Dutch journalist living in Nigeria, Mr. Femke Van Zeiji stated, “mediocrity has overtaken corruption to wreck Nigeria”. It is noteworthy that it is solely the duty of the FCT Minister to ensure that this City becomes the pride of Africa it was envisaged to be at inception.

He should be ready to work hard at (achieving) this without waiting for the interference of members of the national legislature or prompting of members of the public.

Necessary Action and Suggestions The FCT Minister should please dismantle all the structures of mediocrity put in place by the immediate past FCT administration in administering this city, so that he can achieve the expected results. It is really worrisome that the Central Business District of Sandton in Johannesburg was created

in the mid-70s almost at the same time as FCT Abuja. Can you compare the status of that beautiful district of Sandton with our beloved Central Area, Maitama or the almighty Asokoro District? No! One of my simple professional suggestions is that the original masterplan and the approved revisions as approved by the President/ Ministers should be massreproduced and made available to the general public. This step will curb arbitrariness and cronyism in the FCT. This will help the public, especially professionals to be on guard against potential abuses and become reflex whistle blowers against the mafia in the system.

There is need to also dismantle and re-organise the development control, AGIS and other agencies of the FCT. There should be a seamless system of approval for land and design approvals in the FCT in collaboration with Architects, Town Planners (NIA, NSE, NITP, etc) involving BPP in generating consulting firms to form a body for design approval and development control. We can learn from the city of Addis-Ababa in Ethiopia. We can also create and re-invigorate monitoring and enforcement teams in conjunction with professional

bodies to checkmate illegal structures, below par excellent designs output for the city and satellite towns. These bodies should be time-bound and rotated.

Additional Suggestions Concerted efforts need to be made to complete major districts around the precinct of developed areas and zones like Durumi, Wuye, Mpape, Life Camp, Kado and Lugbe district that shame us a nation. We need to open up the satellite towns by putting in place first-class facilities and using international standard class contractors.

There is need to create an Abuja disciplinary or orientation body like KAI in Lagos but must be PPP-driven in order to prevent it from being moribund within a short period. The body will educate and keep reminding Abuja residents on cleanliness, courtesy on road usage, work against illegal/uncivilised behaviour like posting of posters on bridges, trading on the road/under bridges, walking on flyover embankments, crossing highways by pedestrians like rabbits being preyed upon, illegal taxi stops and other vices.

Alonge is a Chartered Architect

34

T H I S D AY • TUESDAY, APRIL 12, 2016

PROPERTY NEWS

‘Plant a Tree to Mark April 22 Signing of Paris Agreement’ In New York, on April 22, Governments will sign the new Paris Climate Change Agreement en route to it coming into force as millions of people around the globe mark annual Earth Day, or International Mother Earth Day. “Earth Day’s theme this year is focused on trees with the aim of mobilizing nearly eight billion plantings, or one for every man, woman and child alive by 2020—together we can maybe do it sooner!”

The link between the Paris Agreement and trees is clear— forests will be key allies for combating climate change and meeting the long term goal of restoring the ecological balance of planet Earth by the second half of the century.

Trees and forests are also crucial for assisting efforts to meet the new Sustainable Development Goals given their role is absorbing carbon, cleaning and cooling the air; acting as natural water pumps to sustain river flows; stabilising soils; recycling nutrients for agriculture and supporting habitats for wildlife to name just a few of their gifts to humanity.

“So let’s get planting now, in the run up to April 22 and beyond.

Our asks are simple, we want to create a buzz around the signing of the Paris Agreement; let governments know that everyone is right behind them while making a very practical difference on the ground in terms of a healthier, less risky world.

“We are asking everyone to do one or all of three things: plant a tree for the Paris Agreement signing and maybe attach a little plaque; hug a tree for the Paris Agreement signing; sketch or photograph your favorite tree for the Paris Agreement signing; then post images and texts about your good work on Facebook, Twitter or any other social media network using the hashtags #ParisAgreement and #Trees4Earth, along with #EarthDay2016 if there is space.

“Go the Earth Day web site and register your event and learn about more cool things you can do.

“And tell governments, local authority leaders, business leaders, friends and family why you have done it and get them on board—you could even use the hashtags #ParisAgreement #Means4Me when writing to them. Forests Key to Success of Paris Agreement.”

Christiana Figueres, UNFCCC

Propertybank, Trustbond Mortgage Launch Rent Actuation for Home Seekers PropertyBank, a leading real estate marketing brand, has launched an innovative rent product solution, “Rent Actuation” specially created for home seekers who cannot afford their rent at the moment.

This innovation is packaged under a working agreement between PropertyBank and TrustBond Mortgage Bank Plc., which offers 80 per cent to rent a house at any location in Lagos and Abuja.

PropertyBank is an online real estate marketing platform with a arrays of properties covering residential, commercial, industrial properties, warehouses, and plots of land. Rent seekers who are currently unable to afford their choice of properties can now live in their choice houses by contacting PropertyBank for options of houses selectable from the platform while TrustBond Mortgage Bank Plc. will provide funding.

Under the product, the subscriber will contribute 10 per cent minimum equity contribution with no collateral. One year rent is repayable within 6 to 9 months while two years rent is repayable within 12 to 18 months. The disbursement of funds is subject to meeting terms and conditions of TrustBond Mortgage Bank Plc. According to a senior official of PropertyBank, “Trust Bond’ is our mortgage banker with a National mortgage banking license with offices in Lagos and Abuja. Their presence in these cities gives residents the opportunity to access rent loan for properties provided

by PropertyBank.”

PropertyBank, owned by Property Vault Limited offers an online tool that guides homebuyers through the process of

owning a home, and renting an apartment. The platform owners have weeded out fraudulent acts as they intend to finalize the offer, negotiates with the listing agent and coordinates closing.

“With www.propertybankng. com you can search for your perfect home to buy or rent by area, price and property type; call, chat or mail our agents for further information, clarity and enquiries as well as schedule visit time to see desired properties,” According to the Chief Executive Officer, Property Vault Limited, Mr. Andy Morkah, “the goal of the Rent Actuation plan is to empower consumers with the most thorough information in the market and bring them in direct contact with the agents.

“At PropertyBank, we help you find your perfect property.

Our listings aim at providing you with as much information as possible and an in-depth insight on each property. Our Agents are well equipped and they have the direct mandate for each property straight from the owners, bringing greater efficiency to the Nigerian real estate market. Searching for properties and full acquisition have been made easier, transactions can now be concluded in a maximum of 48hours.”

Mr. Morkah explained that the online brokerage firm has signed-on properties from developers and direct brief agents within Lagos and Abuja and have generated more than 7,000 properties in the portal.

“Our competitive edge is our in-depth service delivery, as well as our team of seasoned professionals united by a firm resolve to deliver decent housing to Nigerians,” he said.

Executive Secretary, said: “Planting, hugging or sketching a tree to mark the signing of the Paris Agreement and to celebrate Earth Day is an expression of solidarity, love and hope”.

“The Paris Agreement, if fully implemented, offers a prospect of a far better world for billions of people. Conserving, restoring and extending the Earth’s natural or nature-based infrastructure including forests will be a big part of its long term success and long term

goal,” she added.

Ms. Figueres, who will be in New York for the Paris Agreement signing, launched the campaign by hugging a Poro tree in her native Costa Rica.

Kathleen Rogers, President of the Earth Day Network, said on the occasion of the launch: “Trees and forests are the most vital weapon we have against climate change. We must reduce the amount of carbon we pump into the

air each and every day, but forests are the natural filter that will absorb and cleanse our air of the carbon already present. In order for the Paris climate Agreement to work as intended, individuals and nations need to get planting and help us in our effort to get 7.8 billion trees in the ground

by Earth Day 2020. Without these natural carbon sinks allied to cleaner energy, smarter ways of doing business and a clear commitment to solve

the difficulties of the poor, the Agreement risks becoming so much hot air.”

The UNFCCC secretariat will plant a tree in May in the gardens around its offices in Bonn, Germany with a special plaque marking the Paris Agreement and Earth Day in the presence of delegates from countries world-wide attending the May climate conference in advance of the 22nd Conference of the Parties to be held in Morocco in November.

R-L: Chairman, TrustBond Mortgage Bank Plc., Mr. Etigwe Uwa; Managing Director, Mr. Adeniyi Akinlusi; and Company Secretary, Mark Okoye during the 6th AGM of the bank in Lagos…recently

Building Collapse, Concern for Safety in Lagos Kayode Fowode Building construction is a high Risk activity that must be effectively controlled by building owners and effectively regulated by the Government. The construction industry remains a dangerous business, accounting as one of the major causes of fatalities in Lagos State.

Over the years, Lagosians have witnessed consistent building collapse, leading to fatalities, litigations, regulatory actions, pains, injuries, delayed schedules, bad reputations and loss of properties, etc.

Recently, a five-storey building still under construction at Horizon 1, Lekki Gardens, Ikate, Lagos collapsed killing 34 people, according to the National Emergency Management Agency.

This of course is a reminder of the six-story building (guest house) collapsed belonging to the Synagogue Church of All Nations (SCOAN) at the Ejigbo area of Lagos on September 12, 2014, in which 116 persons, mostly South Africans, lost their lives.

As expected, there has been various reactions by the Lagos State Government to these incidents. We would recall that the government had set up a Coroner’s Inquest to investigate the reasons for the SCOAN building-collapse and on August 7, 2015 as stated in the National Mirror Newspaper Online, dated 2015, Magistrate Oyetade Komolafe, the Coroner, indicted SCOAN and the engineers and recommended them for investigation and prosecution for criminal negligence. However, it was later

disclosed by Premium Times that Habib Aruna, the chief press secretary to Governor Akinwunmi Ambode released a statement on Thursday, July 16, that the T.B. Joshua owned church will only be prosecuted for failure to obtain requisite permit before converting the originally two-storey building, to a six-storey structure. Also, in a swift reaction to the Lekki garden building collapse, the Lagos State governor, Akinwunmi Ambode, dismissed Adeigbe Olushola, the General Manager of the Lagos State Building Control Agency, and also fired Adeoye Adeyemi, the Head of Inspection and Quality Control in the Agency; and Dosunmu Gbadebo, the Zonal District Officer in the Agency while Sherifat Akinde, the Zonal Head of Eti-Osa West of LASBCA, was compulsorily retired from the Civil Service. It was disclosed that the affected officers were dismissed having been indicted of negligence in a statement issued by Olabowale Ademola, the Head of Service, which according to the governor, is an act of misconduct under the Public Service Rule 040401. It is of utmost importance that persons in position of authority within the parastatals in charge of building control discharged their duties professionally and ensures only building with appropriate permits are constructed and/or renovated and where a breached in duty by a government officer has been identified, appropriate disciplinary actions must be taken as shown by Governor Akinwunmi Ambode. Nonetheless, we must also be aware that issuing of authorised

building permit and sacking of officials due to negligence is not sufficient to guarantee reduction in building collapse in Lagos State. While it is important that compliance with building permits should be enforced and driven by regulators, however, we must now begin to look into a sustainable strategy by enacting a proactive construction specific health and safety legislation in addition to building regulation. Lagos Sate government must now shift from solely traditional compliance to building permit to a more robust and sustainable construction health and safety management supported by construction health and safety regulations.

The regulations should identify all duty holders within a building construction project and clearly stipulates individual legal duties raging from the building owners to the designers, contractors, subcontractors and other persons involved on the project. Hence, everyone takes responsibilities for the safe construction of the building construction whilst the building owner is accountable to the government on the safety of the structure.

The law should apply to the whole construction process on all construction projects, from concept to completion whilst the responsibility of each duty holder is clearly stated under these regulations to ensure projects are carried out in a way that secures health and safety.

A good reference would be the Construction Design and Management (CDM) Regulations 2015 in the UK which clearly states the duty holders

on construction project and placed legal obligations on them to ensure that construction is carried out safely in United Kingdom. For example the regulation places a duty on commercial clients (Owners of the building construction project) to make suitable arrangements for managing a project, including making sure other duty holders are appointed as appropriate and that sufficient time and resources are allocated onto the project. These duties also extend to making sure relevant information is prepared and provided by the commercial client to other duty holders such as principal designer and principal contractor whose duties are not limited to ensuring adequate welfare facilities are provided for the project.

The Regulations aim to make sure the building construction project is safe to build, use and maintain and offers good value.

This regulations does not nullify the UK Building Regulations but rather emphasised the importance of safety in construction.

As any builder knows, projects start well before ground is broken. Therefore, safety should be part of the building process right from the very start. In working toward establishing a safer workplace and promoting building safety, government building regulatory officers must now work closely with building owners, designers, contractors and project planners to determine the most effective risk management strategies before a project begins and while it’s being built.

Fowode is a Chartered Health and Safety Practitioner

35

T H I S D AY • TUESDAY, APRIL 12, 2016

PROPERTY NEWS

‘Cross River Super Highway will Hurt Community, Environment’ Bennett Oghifo The Super Highway being built by the Cross River State Government will hurt both the environment and the communities in the area, the Heinrich Böll Foundation has said. A statement by the Foundation, signed by Chibueze Ebii, Communications Manager, Nigeria Office, presented a fact sheet which states that “the Government of Cross River is planning to build a six-lane wide super highway that will lead from the - yet to be built - deep sea port in Calabar all the way to Benue state, passing through Ikom and Ankampa towns in Cross River State.

“As announced by the Cross River State Government, the super highway, which is 260km long, will have a 10km rightof-way on both sides of the highway, meaning that a total of 20km wide land corridor along the superhighway route falls under the land being revoked

by the state Government. This means that all 185+ communities within the affected land corridor are subject to displacement and loss of access to their land.”

According to the fact sheet released by HBS Nigeria, Cross River State is host to the largest remaining rain forests in Nigeria, which provides livelihood for over 600,000 indigenous people living within and around the forests. It is home to highly threatened animal species including the Cross River gorilla, Nigeria – Cameroon chimpanzees, drill monkeys and many more.

The Ekuri Forest, one of the forest reserves in the State, lies entirely within the 20km area, where land has being revoked by the Cross River government.

Watersheds in the Ekuri Forest supply water to over 200,000 people in the region. The United Nations REDD+ programme have provided over 2 million dollars to the state Government to protect the forest as an

important global carbon sink.

Although bulldozers have entered the Ekuri-Eyeyeng, Etara and Okuni areas; clearing and felling trees, yet (until mid March 2016) there has being no publication of any Environmental Impact Assessment as mandated by the Nigerian constitution before the commencement of such a project.

According to environmentalists and scientists, the already existing highways from Calabar to Benue State, if refurbished, could fulfill development needs without loss of any forests, and at a much lower cost.

The existing highways have an established system of feeder

roads, linking communities to the trade route. The proposed super highway would likely cause the construction of its own network of feeder roads, and thus cut a grid of smaller roads into what is left of the rainforest. This slicing up of intact ecosystems would severely affect animal migration, and the gross loss of habitat would further threaten their survival. Sustainable human use of non-timber forest products in many areas would be eliminated and Nigeria would lose its REDD+ status.

However, the Federal Government recently asked the Cross River State Government to stop the on-going construction

of the Calabar- Okwotung/ Obudu/Yara dual carriage super highway until the processing of the road’s environmental impact assessment is done.

The government’s position is contained in a statement signed by the Permanent Secretary, Federal Ministry of Environment titled, ‘ReComplaints/Concerns Raised By Stakeholders over the Proposed Calabar- Okwotung/Obudu/ Yara Dual Carriage Super Highway by the Cross River State Government.

The Federal Ministry of Environment, the government said “issued an Interim Environmental Impact Assessment Approval for the ground

breaking, which enabled Mr. President to do the flag-off of the project. This approval does not convey project commencement of implementation.

“In response to the commencement of work at the proposed site, and in line with Environmental regulations, notice was given for stoppage of work.

“The Ministry wishes to advise the Cross River State government to abide by Environmental regulations and EIA processes. The Project’s host communities and other stakeholders are enjoined to continue peaceful dialogue as we resolve the outstanding issues.”

Major Milestones Reached in Renewable Energy Investments Coal and gas-fired electricity generation last year drew less than half the record investment made in solar, wind and other renewables capacity.

This is one of several important firsts for green energy announced recently in a UN-backed report.

Global Trends in Renewable Energy Investment 2016, the 10th edition of the UN Environment Programme’s (UNEP’s) annual publication, launched today by the Frankfurt SchoolUNEP Collaborating Centre for Climate & Sustainable Energy Finance and Bloomberg New Energy Finance (BNEF), says the annual global investment in new renewables capacity, at $266 billion, was more than double the estimated $130 billion invested in coal and gas power stations in 2015.

All investments in renewables, including early-stage technology and research and development as well as spending on new capacity, totalled $286 billion in 2015, some 3 per cent higher than the previous record in 2011. Since 2004, the world has invested $2.3 trillion in renewable energy (unadjusted for inflation).

(All figures for renewables in this release include wind, solar, biomass and waste-to-energy, biofuels, geothermal, marine and small hydro, but exclude large hydro-electric projects of more than 50 megawatts).

Just as significantly, developing world investments in renewables topped those of developed nations for the first time in 2015.

Helped by further falls in generating costs per megawatthour, particularly in solar photovoltaics, renewables excluding large hydro made up 54 per cent of added gigawatt capacity of all technologies last year. It marks the first time new installed renewables have topped the capacity added from all conventional technologies.

The 134 gigawatts (GW) of renewable power added

worldwide in 2015 compares to 106GW in 2014 and 87GW in 2013.

Were it not for renewables excluding large hydro, annual global CO2 emissions would have been an estimated 1.5 gigatonnes higher in 2015.

UNEP Executive Director Achim Steiner said, “Renewables are becoming ever more central to our low-carbon lifestyles, and the record-setting investments in 2015 are further proof of this trend. Importantly, for the first time in 2015, renewables in investments were higher in developing countries than developed.”

“Access to clean, modern energy is of enormous value for all societies, but especially so in regions where reliable energy can offer profound improvements in quality of life, economic development and environmental sustainability.

Continued and increased investment in renewables is not only good for people and planet, but will be a key element in achieving international targets on climate change and sustainable development. ” “By adopting the Sustainable Development Goals last year, the world pledged to end poverty, promote sustainable development, and to ensure healthier lives and access to affordable, sustainable, clean energy for all. Continued and increased investment in renewables will be a significant part of delivering on that promise.”

Michael Liebreich, Chairman of the Advisory Board at BNEF, said: “Global investment in renewables capacity hit a new record in 2015, far outpacing that in fossil fuel generating capacity despite falling oil, gas and coal prices. It has broadened out to a wider and wider array of developing countries, helped by sharply reduced costs and by the benefits of local power production over reliance on imported commodities.”

L-R: The Moderator, Alero Edu; General Manager, Independent Power Projects, Lanre Opakunle; CEO, Cement, Lafarge Africa Plc, Adepeju Adebajo; and Director, Ready Mix Operations, Lafarge Africa Plc, during the Lafarge Build Safe, Live Safe media engagement in Lagos… recently

World Wildlife Day: Act now to Save African Elephants African elephants will become extinct if nothing is done, according to statistics released by experts at this year’s World Wildlife Day. March 3 marks World Wildlife Day – an event established by the United Nations in December 2013 in honour of the adoption of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

This year’s theme focuses on the African and Asian elephant, a species that typifies criminality against wild animals.

The figures speak for themselves: some 25,000 to 30,000 elephants are killed every year in Africa. In the period from 2010 to 2012 alone, 100,000 elephants were killed. In other words, more elephants are dying on the continent than are being born – the gestation period for an elephant is 20 to 22 months.

And if nothing is done, there will be no more elephants in Africa in just a few decades at most, according to many experts. East Africa, Kenya and Tanzania have marked the strongest decline in this species.

In Tanzania, their population fell by 63% in five years, according to official figures released in 2015. Last year, more than 20% of the elephants in central Mali were killed, according to the UN and NGOs.

Savannah elephants and forest elephants: Africa contains two subspecies of elephant: the savanna elephant (Loxodonta africana africana), the biggest land animal in the world, and the forest elephant (Loxodonta africana cyclotis), which has a different size, and differently shaped tusks, skull, and skeleton. Nowadays, forest elephants are concentrated in the dense tropical forests of Central and West Africa – and they are becoming increasingly rare and isolated. Savanna elephants live in Southern and Eastern Africa. Botswana has the highest population, and this species is also found in South Africa, Tanzania, Zimbabwe, Kenya and Zambia.

There were 470,000 elephants living in the wild in 2013, according to figures presented at the Kasana Conference held in March 2015 in Botswana. There were 1.2 million in 1980. And 20 million at the beginning of the twentieth century. Illegal ivory trade fuelled by Asian demand… The international ivory trade is at the heart of this criminality that is ravaging the populations of African elephants. It has been banned since 1989, but the prohibition was partially lifted in 1997 and it generates huge revenues and intensive poaching.

OPIC Advises Prospective Buyers of Land to Conduct Checks Estate practitioners, industrialists and other prospective buyers of landed properties in Ogun State have been advised to always conduct proper checks before committing funds and developing the property.

The Special Adviser/Managing Director, Ogun State Investment Corporation (OPIC), Mr. Babajide Odusolu gave the advice while on an inspection of OPIC Estate, Agbara/Igbesa where massive encroachment were discovered at the boundaries of OPIC’s Estate.

Odusolu said only proper title checks could promote safe, secure, genuine land purchase and building approvals. The Managing Director ordered OPIC surveyors and managers to regularly conduct inspection patrols and keep surveillance of OPIC lands. He enjoined staff to be on the alert to promptly prevent encroachment.

In line with this directive, OPIC Management had worked out an efficient supervisory method that would ensure effective security of OPIC investments and opportunities, and also to streamline sales of OPIC land application forms to members of the public to guard against abuse, illegal allocation and encroachments of diverse nature.

OPIC is thus undertaking

ratification exercise on punitive terms alone, he said. “Anyone who genuinely proves to have unwittingly purchased land from illegal land grabbers would be required to ratify such, paying a penal rate of 25% premium on OPIC’s prevailing rates.”

In addition, OPIC is introducing a registry for building material suppliers on its Estates to have proper monitoring.

On the development of illegal structures at OPIC’s Agbara Estate, Odusolu directed the enforcement team of the organisation to embark on a full scale demolition exercise of all structures illegally built on lands in OPIC Estate, Agbara/ Igbesa. The team had previously marked for demolition, structures built on such illegally acquired lands and others flouting the Corporation’s allocation and planning regulations.

The Managing Director gave this order during an official tour of OPIC Estate, Agbara/ Igbesa where he inspected area 1 (Jubilee Park/residential area), Areas 2 and 3, and the Agbara – Ijanikin Lagoon link.

He condemned the activities of illegal occupants/private estates, block making industries and illegal trailer parks, which are considered as serious sources of revenue leakages and economic sabotage in the State.

36

TUESDAY APRIL 12, 2016 T H I S D AY

37

TUESDAY APRIL 12, 2016 • T H I S D AY

INTERNATIONAL

email:foreigndesk@thisdaylive.com

Libyan Aftermath ‘Worst Mistake’ of My Presidency, Says Obama The United States President, Barack Obama, has said failing to prepare for the aftermath of the ousting of Libyan leader Col Muammar Gaddafi was the worst mistake of his presidency.

Obama was answering a series of questions on the highs and lows of his time in office on Fox News. He said, however, that intervening in Libya had been “the right thing to do”. The US and other countries carried out strikes designed to protect civilians during the 2011 uprising.

But after the former Libyan leader was killed, Libya plunged into chaos with militias taking over and two rival parliaments and governments forming.

So-called Islamic State (IS) gained a foothold, and Libya became a major departure point for migrants trying to reach Europe.

A UN-backed national unity government arrived in the capital Tripoli earlier

this month but is waiting to take charge. The leader of the faction ruling western Libya has threatened to prosecute any of his ministers who cooperate with the UN-backed administration, contradicting an earlier announcement the ministers would stand down.

It is not the first time President Obama has expressed regret over Libya. He told the Atlantic magazine last month the operation went as well as he had hoped, but Libya was now “a mess”. In that interview, he also criticised France and the UK, in particular saying British Prime Minister David Cameron became “distracted” after the intervention.

It was a rare rebuke for a close ally and one which BBC correspondents at the time said angered Downing Street.

President Obama told Fox that his biggest accomplishment in office was “saving the economy from the great depression”.

He said the best day of

his presidency was when he passed the healthcare reforms. The worst, he said,

confirm that.”

The head of Mossack Fonseca has denied any wrongdoing, and said his firm has fallen victim to “an international campaign against privacy”. Suddeutsche Zeitung has said it received a cache of 11.5 million leaked documents from the law firm’s database.

The documents cover a period over almost 40 years, from 1977 until last December, and purport to show that some companies domiciled in tax havens were being used for suspected money laundering, arms and drug deals and tax evasion.

“We don’t know if this source got access lawfully or unlawfully, we just don’t know,” Krach said, but he said the provenance of the information was less important than the credibility of the documents and the public interest.

“The decisive question is first of all: is the information that came to us from the source credible? That is the most important point.

And the second point is:

A car bomb at local government headquarters in Mogadishu killed five people and wounded five, an official said, in an attack claimed

by Somali Islamist group al Shabaab.

Al Shabaab has frequently attacked government targets, hotels and restaurants in the capital since being pushed

performance.

“Overall, growth is projected to pick up in 2017-2018 to 4.5 percent,”the World Bank said in a statement. It said a projected uptick in economic activity next year would be driven by economic powerhouses South Africa, Nigeria and Angola as commodity prices stabilise.

Nigeria and Angola are the continent’s top two crude oil exporters whose economies

gun control laws was the biggest frustration of his presidency.

out by African Union peacekeeping forces in 2011 and rebasing in the country’s south.

“We are behind the governor HQ attack,”Abdiasis Abu Musab, the group’s military operations spokesman, said.

On Saturday, another bomb killed three and wounded five in Mogadishu.

A police spokesman said that in Monday’s attack a suicide bomber rammed a car packed with explosives into the entrance of the headquarters.

But mayoral spokesman Abdifatah Omar blamed a car parked at the rear of the heavily fortified compound.

“So far we have confirmed five civilians died and five

others were injured,” he said.

The blast, which other reports suggested may have been detonated remotely, destroyed part of a guardroom.

“We heard a huge bang and then (saw) huge clouds of smoke over us. We are safe,”one female worker inside the compound, who identified herself as Nasra, told Reuters.

Scuffles Continue at Greek-Macedonian Border Scuffles continued yesterday between migrants and Greek police after dozens tried to push a train carriage along rail tracks leading to Macedonia. The minor trouble came a day after dozens of migrants and refugees were injured in clashes with Macedonian police which the Greek prime minister deplored as“a disgrace

is it relevant so that we publish?”

He said the Sueddeutsche had cross-checked thousands of documents against information it had previously received.

This quashed any doubt that the Panama Papers might not be genuine.

“To the question, ‘Are these documents genuine?’

Yes they are genuine,” Krach said, adding that some of the information was not of public interest but much was. “And those are the cases about which we have partially reported.”

Asked how he would react if it turned out the source had come across the data by hacking into Mossack Fonseca, Krach said this was a hypothetical question but pointed to the case of Edward Snowden, the former U.S. spy agency contractor who leaked top secret information.

“Nonetheless, I think it is completely indisputable that it was valid, correct and even necessary to publish this data,” he said of the Snowden case.

World Bank Lowers 2016 Growth Projection for Africa The World Bank yesterday lowered its 2016 sub-Saharan African growth forecast to 3.3 percent from a previous forecast of 4.4 percent in October, citing plunging global commodity prices. The bank said the commodity price rout, particularly for oil which fell 67 percent from June 2014 to December 2015, as well as weak global growth were behind the region’s lacklustre

discussed his legacy in a BBC interview last year, saying his failure to pass tighter

Five Killed in Mogadishu Car Bombing

Panama Papers Published in the Public Interest, Says Editor The editor of the German newspaper that broke the Panama Papers story has said that he did not know exactly where his team’s source got the information but defended his decision to publish on the basis of the public interest.

Wolfgang Krach, co-editorin-chief of the Sueddeutsche Zeitung, said a source who introduced themselves as “John Doe” contacted the paper a year ago and with an offer of encrypted internal documents from Panamanian law firm Mossack Fonseca.

Sueddeutsche, realising the sheer number of documents to be scrutinised, began working with a consortium of other media organisations before publishing the Panama Papers story that has shone a light on the financial schemes of the world’s elite.

“We don’t know how this source came upon the information,” Krach told Reuters by telephone from his office in Munich. “Mossack Fonseca say themselves ‘we were hacked’ - I don’t know if that is the case. I can’t

was responding to the mass shooting at Sandy Hook elementary school. Mr Obama

have suffered as a result of sharply lower crude prices, while South Africa was also hit by lower platinum, iron ore and coal prices.

“There were some bright spots where growth continued to be robust such as in Cote d’Ivoire, which saw a favourable policy environment and rising investment, as well as oil importers such as Kenya, Rwanda and Tanzania,” the World Bank said.

for European civilization”.

More than 10,000 migrants and refugees have been stranded at the Greek border outpost of Idomeni since February after a cascade of border shutdowns across the Balkans closed off their route to central and western Europe.

During Monday’s scuffles, men stood on top the train carriage shouting and waving the Greek and German flags in protest. Others walked up to the border and waved olive branches at Macedonian soldiers who stood guard on the other

side of the razor wire fence.

The tension was short lived and bore no resemblance to Sunday when dozens of migrants and refugees were wounded after Macedonian police fired tear gas and rubber bullets at crowds on the Greek side of the border.

Medical charity Medicins Sans Frontieres (MSF) said that of around 300 people it treated on Sunday more than 30, including children, had injuries caused by rubber bullets. Macedonian authorities would only confirm they had used tear gas and accused Greek police of not

intervening to stop the protesters.

Speaking to reporters on Monday, Greek Prime Minister Alexis Tsipras denounced the use of “chemicals, of tear gas, of rubber bullets against people who clearly were not armed, were not a serious threat.

“This constitutes a big disgrace for European civilization and for countries who want to become a part of European civilization,”he said. Macedonia has been a candidate for accession to the European Union since 2005.

38

TUESDAY APRIL 12, 2016 • T H I S D AY

NEWSEXTRA

Tompolo Wants Court to Stop His Trial Challenges the legality of Administration of Criminal Justice Act Davidson Iriekpen The embattled former Niger Delta militant leader, Government Ekpemupolo (alias Tompolo), has filed a fresh suit before the Federal High Court in Lagos to stop his trial, contending that the law on which he was charged is unconstitutional.

Consequently, Tompolo, through his lawyer, Ebun-Olu Adegboruwa, is asking the court to nullify Sections 221 and 306 from the Administration of Criminal Justice Act, 2015 to the extent of their inconsistencies with the constitution.

Justice Ibrahim Buba had on January 14, 2016, issued a warrant for the arrest of Tompolo.

But on January 27, 2016, Tompolo filed an application before the court to set aside the said warrant of arrest.

On February 8, 2016, the said application was argued and dismissed by the court.

Tompolo thereafter filed an appeal against the ruling at the Court of Appeal on February 18, 2016.

His appeal was entered at the Court of Appeal on March 3, 2016, following which his team of lawyers filed his brief of argument in the said appeal, awaiting the response of the Economic and Financial Crimes

Commission (EFCC).

However, in a fresh suit, filed against the Federal Government of Nigeria, the Attorney-General of the Federation, EFCC, the Inspector-General of Police, the Chief of Army Staff, the Chief of Naval Staff and the Chief of Air Staff, Tompolo is contending that sections 221 and 306 of the Administration of Criminal Justice Act are invalid and unconstitutional.

He argued that these sections are unconstitutional so far as they seek to prevent the court from exercising its jurisdiction to entertain any objection to a criminal charge and application for a stay of proceedings pending appeal.

The ex-militant is thus asking the court to stop his further trial until the determination of these issues.

Section 221 Administration of Criminal Justice Act, states that “objections shall not be taken or entertained during proceedings or trial on the grounds of an imperfect or erroneous charge, while Section 306 states that “an application for stay of proceedings in respect of a criminal matter before a court shall not be entertained.”

In the new case filed, suit No. FHC/L/CS/499/2016, Tompolo, among others, is seeking the

following reliefs, a “declaration that section 221 of the Administration of Criminal Justice Act, 2015, is to the extent that it seeks to be an absolute bar to any objection to a criminal charge or information, already filed, especially charge No.FHC/L/553C/2015 – Federal Republic of Nigeria vs Government Ekpemupolo (Alias Tompolo) and Nine Others and Charge No. FHC/ L/31C/2016 – Federal Republic of Nigeria vs Ekpemupolo Chief Government Oweize and 12 others., or to be filed against the applicant,

constitutes a flagrant violation of the applicant’s fundamental right to fair hearing as guaranteed under Sections 36(1), (4) & (6) as well as the inherent powers of a court of law under Section 6(6)(a)(b) of the Constitution of the Federal Republic of Nigeria, 1999 and Article VII of the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act, Laws of the Federation of Nigeria, 2004 and is therefore illegal, unconstitutional, null and void.

“A declaration that section 306

of the Administration of Criminal Justice Act, 2015 is to the extent that it seeks to be an absolute bar to an application for a stay of proceedings pending appeal to a higher court, in relation to a criminal charge or information, already filed, especially Charge No.FHC/L/553C/2015 – Federal Republic of Nigeria v Government Ekpemupolo (Alias Tompolo) & Nine Others, Charge No. FHC/L/31C/2016 – Federal Republic of Nigeria vs Ekpemupolo Chief Government Oweize and 12 others, or to be filed against

the applicant, constitutes a flagrant violation of the applicant’s fundamental right to fair hearing as guaranteed under Sections 36(1), (4) and (6) ) as well as the inherent powers of a court of law under Section 6(6)(a)(b) of the Constitution of the Federal Republic of Nigeria, 1999 and Article VII of the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act, Laws of the Federation of Nigeria, 2004 and is therefore illegal, unconstitutional, null and void.”

Ikpeazu, Okorocha Allege Kidnappers Killed Fulani Herdsmen Emmanuel Ugwu inUmuahia

As controversy continues to swirl around the alleged killing of five Fulani herdsmen, the Governors of Abia and Imo States yesterday confirmed that the criminal act was committed by kidnappers who operate on the border between the two states.

Governor Okezie Ikpeazu of Abia State and his Imo State counterpart, Chief Rochas Okorocha, made the disclosure while addressing journalists at the end of a joint security council meeting held at Government House in Umuahia, Abia State The meeting, which was attended by heads of security agencies from both states, including the Commander of 14 Brigade Ohafia, Brigadier-General Lawrence Fejokwu, new Zone 9 AIG, Yerima Fyarah and the Chairman, South-east Council of Traditional Rulers, Eze Eberechi Dick, deliberated on the security situation in the two states.

The Department of State Services (DSS) had earlier accused the Indigenous People of Biafra (IPOB) of being responsible for the death of the herdsmen, a claim which the separatist organisation had vehemently denied and now lent credence to by the two governors.

Ikpeazu, who was the first to speak after the security council meeting that lasted two hours behind closed door, said the spate of kidnappings going on across the border of the sister states was worrisome, adding that it was during such criminal activities that the herdsmen met their unfortunate end.

“We condemn the spate of kidnappings here, especially in relation to the five Fulani herdsmen kidnapped and murdered by criminals,” he said.

The Abia State governor said the joint security meeting was necessitated by the need to fashion out effective strategy to

curb criminal activities in the two states, adding that “the time had come when criminals would not be allowed to launch attacks in Imo and run to Abia or vice versa.

He said security agencies in both states had been directed to destroy the forest at the border where the kidnappers use as their base.

Corroborating his Abia counterpart views, Okorocha said he came to Abia with his team to see how both state governments could flush out the men of the underworld that have been terrorizing the people.

He stated that the killing of the herdsmen had no ethnic colouration because “it was not a direct attack on any ethnic group” but rather the consequences of the “criminal activity we’ve been battling”. The Imo governor said that aside from the corpses of the five herdsmen discovered in the shallow grave two bodies of Igbo people were also in the grave.

“Our borders are weak,” he declared, adding the two states have declared a joint security operation, which “we intend to extend to Enugu and Rivers States” by involving the governors of those states that also share borders with Imo and Abia.

Okorocha said he had agreed with Ikpeazu that the houses of confirmed kidnappers would be demolished and their properties recovered as part of measures to put kidnappers out of business.

He said the “evil forest” where the kidnappers use as their operational base must be dismantled urgently, warning that “this is how evil forest story starts; that’s how Sambisa started.”

In all this the full story surrounding the alleged killing has remained hazy as those who should know have not disclosed the date when the herdsmen went missing and when the shallow grave containing their bodies was found out.

DONE DEAL

R-L: Chairman Troyka Holding, Mr. Biodun Shobanjo; Nobel laureate, Prof. Wole Soyinka: and his wife, Mrs. Soyinka, during the celebration of the signing of partnership agreement betweenTroyka Holding and Publicis Groupe at the Metropolitan Club, Victoria Island in Lagos... weekend

Witness: Jonathan Gave Metuh Approval to Launder His and PDP’s Images Alex Enumah in Abuja A defence witness has said former President, Dr. Goodluck Jonathan, personally gave approval and made request of a corporate account from Olisa Metuh, spokesperson of the Peoples Democratic Party (PDP), to enable him handle issues relating to image laundering and publicity of both the president and his party, the PDP. The witness, a journalist with the New Telegraph and a Public Relations Consultant, Ike Abonyi, made the disclosure during examination by the lead counsel to the first defendant at the resumed hearing of corruption and money laundering charges brought against Metuh by the federal government.

Metuh is being tried on a sevencount charge of criminal breach of trust, corruption and money laundering involving $2million cash transaction as well as for allegedly receiving N400million from the Office of the National Security Adviser (DNSA) last Friday.

He pleaded not guilty to the charges, claiming that funds from the former NSA were meant for publicity and image laundering of the PDP and President Jonathan.

When the case was called for hearing yesterday after it was adjourned last week for the defence to open up its case, the

lead counsel, O Ikpeazu, called on Abonyi who told the court that his relationship with Metuh, dates back to when he (Abonyi), was Media Adviser to the then National Chairman of the PDP, Okwesilize Nwodo, added that Metuh was then Vice Chairman of the PDP in the South-east.

He however stated that he was invited by the PDP spokesman in 2014 tohelphimhandlingissuesrelating to publicity and image laundering of the party, as according to Metuh, the party’ image was in a bad shape.

“Towards the 2014 general election, Metuh approached me, and then I was Deputy Managing Editor of New Telegraph, and requested that he would need my full services, this time. That he would like me to come into the party as a consultant to help him improve the image of the party which he said then was in a bad shape. And by virtue of his position, all eyes were on him to come up with services that would shore up the image of the party at the forthcoming election,” he said.

The witness further disclosed that they then engaged the services of a private PR firm, CNC Connect, which had worked with them when Nwodo was chairman of the PDP. He added that he initially protested against the engagement of the firm due to its high fees, but

Metuh prevailed on him, noting that the services of CNC Connect were of high quality and the party needed nothing but the best at that stage.

Abonyi said: “When I mentioned the area of funding, he reminded me that the general election was coming.

He told me it was a thing of the past because the leader of the party which is the president then has no other choice but to fund the department.”

The witness further added that Metuh told him he has been given an assignment by the president to come up with a strategy that would help the party win the forthcoming elections, adding that other people have been given the same assignment as such they should do their best to be chosen.

He disclosed that after their presentation at the presidential villa, the president requested for comments from other members of the team and after their comments, Jonathan jokingly said the group was too hard on him as virtually all who spoke from among them made it clear that his image was bad and he himself was not helping matters with the way he was acting.

“At this point, his media adviser, Ruben Abati, who saw our presentation as an indictment on him, told the president that the position was not as bad as they portrayed it but, the president overruled him.

“After the presentation, the president

asked for more comments from those sitting with him and most of the speakers said they were impressed by what they saw in our presentation.

“I recalled vividly the comment of formergovernorofAnambraStatewho urged the president to do something urgently about the image of the party before the campaign, if not, it would be difficult for it to win the general election going by the public perception of the government at that time.

“The president then said since it appears to be the consensus of the people sitting with him, Metuh and that and his team did a better job, he would advise that all the others work would have to work with Metuh’s team, because he wants the consultant to provide direction.

“At that point, he told Metuh, you have done a good job and asked him to send a corporate account to him for immediate mobilisation,” the witness said.

He went further to say that one afternoon, Metuh, told them that the work would soon start as the president called him to say some money had been paid for work to commence.

Following the examination and cross-examination by both the first defendant and the prosecution counsel, trial judge, Justice Okon Abang adjourned till April 20th 2016 for further examination and cross examination of the witness.

TUESDAY APRIL 12, 2016 • T H I S D AY

39

NEWSEXTRA

ASUU Accuses Buhari, APC of Running a Change Govt without Transformation Cries out over haphazard payment of salaries Says it will not lose sleep over VCs’ sack Paul Obi in Abuja The Academic Staff Union of Universities (ASUU) yesterday took a swipe at the administration of President Muhammadu Buhari and his party, the All Progressives Congress (APC) over the depreciating level of the economy and the ensuing suffering of the masses, accusing the president and the party of running a change government that is devoid of transformation.

Speaking with journalists in Abuja on the state of the nation, ASUU President, Dr Nasir Isa, explained that the symptoms of the prevailing economic crisis has become obvious with its attendant consequences and overall burden on Nigerians.

Isa said: “There is no doubt that Nigerians are suffering. There exists a socio-economic crisis in Nigeria. We are all aware of the manifestations of the crisis which our country faces. There are many symptoms of the crisis: rising level of poverty; increasing rate of unemployment; heightened expectation leading to heightened frustration among Nigerians due to the failure to realise an improved living standard.”

He argued that government’s inability to squarely tackle the present economic hardship has had a ripple effect on the daily lives of the masses, stressing that, “food prices are higher and access to health facilities has not improved; live and property remain insecure.

In short, Nigerian people are still suffering,” Isa stated.

The ASUU president further maintained that so far, since the inception of the administration, “the disappointment of Nigerians

stems from the fact that we have a government whose leadership promised change but which is not practising transformation (deep, fundamental change).

“Democracy in Nigeria is still seen superficially as what leaders do for the people rather than government by the people.

Democracy is essentially popular participation in governance and popular sovereignty. Yet, there is in existence a long term national development plan agreed upon in 2008 (Nigeria’s Vision 20: 2020).

This has been abandoned in favour of IMF/World Bank imposed and enforced Medium Term Expenditure Framework (MTEFF) and Fiscal Strategy Paper (FSP),” ASUU said.

The body accused the government of pursuing an economic and political ideology that is more embedded in propaganda.

“Some of these ideologies are explicitly stated while others are implicit. Sometimes, those who have implicit ideologies claim to have no ideology at all,” they stressed.

The union also decried the haphazard payment of salaries to its members. According to ASUU Convener, Finance and Investment, Dr. Muhammed Usman, since December 2015, ASUU members have continued to face untold hardship due to the distorted nature of salary payment by government.

Usman cited University of Ibadan and other first generation universities facing the brunt of haphazard payment of their salaries.

On the Panama papers scandals where the Senate President, Bukola

Mark: We Must Reposition PDP Says no more imposition of candidates Ahead of the Peoples Democratic Party (PDP) congresses and convention, the immediate past Senate President, Senator David Mark, has canvassed strongly for the repositioning of the party if it must return to power in the next general election.

Mark according to a statement signed by his Media Assistant, Paul Mumeh, told party faithful at a stakeholders’ meeting held in his country home, Otukpo, Benue State yesterday that the PDP had electoral misfortunes in the last general election because of imposition of candidates against the wishes of the people.

According to him, “We must come to terms with the reality that the PDP lost the last general election because of over bearing tendencies of some leaders who imposed candidates on the people.

“It is inevitable that we must change from the old ways and allow the will of the people prevail.

Unfolding events clearly show that the PDP is the party for the people but we must not take them for granted by forcing unpopular candidates on the people.

“The coast is clear that the PDP has the road map for peace, unity and development

of Nigeria. Nigerians now know the difference.”

He therefore counselled that the popular candidates must be put forward to drive the ship of the party ahead of the next general election.

He stressed that the PDP has bright chances of returning to power if all party faithful agree to work together in one accord.

To achieve that, the former senate president stated that people must learn to subject their individual or personal interest for the larger interests of the people.

That way, he believes that victory would be assured, processes rancour free, cheaper and more credible.

In their separate remarks, the state Chairman of the PDP, Dr. Emmanuel Agbo; former Minister of Interior, Abba Moro and elder statesman, General Geofrey Ejiga (rtd) corroborated the views of Mark to as a matter of necessity, reposition the party for good.

The trio were of the opinion that the continued non performance of the rulingAll Progressives Congress (APC) was giving the PDP a clean bill of health to return to power but must avoid the pitfall of imposition of candidates for elections.

Saraki, former Senate President, David Mark, Alhaji Dantata and Gen. T.Y. Danjuma (rtd) were mentioned, ASUU stated that the right thing to do was to investigate the matter and if anybody is culpable, such person should be jailed.

“What is the normal thing done to tax evaders? Isa asked.

“If you catch somebody evading tax, you know what to do. In other countries, if you are caught evading tax, you pay all the taxes that you failed to pay, there are other financial punishments. Apart from that, you also go to jail. No matter how powerful you are, there is no exception. If anybody is involved, I think the right thing should be done,” he said.

ASUU also condemned in strong terms, the on-going fuel crisis, stating that it has created a deep gulf between the government

and the people, “the current fuel crisis has adverse consequences on the socio-economic life of the nation; it has increased the cost of food, transportation, electric power as well as general cost of living.

It has created political cost.

“It has also widened the distance between the government and the people, and created distrust between the people and the government. It has caused general social tension in the land. Government is slow in implementing the policies it pronounced in 2015,” ASUU president added.

Further, ASUU lambasted the government over its failed attempt to reposition the power sector, stating that after some years, “the DISCOS have failed to deliver on their promise of free distribution of pre-paid meters. And despite massive protests of workers and

other patriotic Nigerians, the DISCOS are forcing the hiked electricity tariff regimes down the throat of the citizens.”

On the sacked vice-chancellors, ASUU said the VCs were in the first place appointed wrongly, therefore, the body “will not lose sleep over the sack of the VCs.” It maintained that ASUU had earlier warned against their appointments, but government ignored their pleas, to the detriment of extant laws governing universities.

ASUU also warned against the erosion of universities’ autonomy, stating that recent government pronouncements with regards to the university system was not in the interest of the academia; neither does it exist within the rules of university autonomy.”

The ASUU also opposed the move by President Buhari to

borrow the sum of $2 billion from the Chinese government to finance various infrastructural projects.

The president, who arrived Beijing, the Chinese capital yesterday, is expected to facilitate the granting of the loan to Nigeria, with focus on key strategic and developmental projects of the administration.

But speaking against the loan, the ASUU president said it was unwarranted, and argued that Nigeria already had resources to cater for such needs.

He said: “Monies can be collected; taxes and all the stolen money that we are recouping; when we put everything together, and do the right thing, I assure we will get more than $2 billion from there. So why do you need to go and borrow when you have enough to address your problem?”

Isa asked.

SEEKING COLLABORATION

Sokoto State Governor, Alhaji Aminu Waziri Tambuwal (standing behind), witnessing the signing of an agreement between the state government and the Henan Province of China in China...yesterday

Kalu’s Trial for Money Laundering, Other Offences to Begin May 16 Tobi Soniyi in Abuja A Federal High Court in Abuja has fixed May 16 for the re-arraignment of a former Governor of Abia State, Mr. Orji Uzor Kalu, and his co-accused for charges bordering on alleged diversion of N5.6billion belonging to the state.

The Supreme Court had on March 18, 2016, dismissed Kalu’s objection to the charges preferred against them and directed them to submit themselves for trial. The court ordered them to go and face their trial.

The Economic and Financial Crimes Commission (EFCC) had in 2007 filed a 96-count charge including money laundering, against Kalu, his company, Slok Nigeria Limited, and Jones Udeogo.

Kalu and his co-defendants were accused of diverting the state’s fund while he was governor of Abia State between 1999 and 2007.

However, on February 11, 2008, EFCC amended the charges and

increased the charges to 112 counts.

They challenged the competence of the charges before the trial court but the objection was dismissed.

Another appeal to the Supreme Court was also dismissed. A final appeal to the Supreme Court was dismissed.

Their objection to the charges were dismissed on March 18 by the Supreme Court.

Kalu and Udeogo, who were represented by different lawyers, were present in court yesterday when the case was mentioned.

The prosecutor, Mr. Oluwaleke Atolagbe, yesterday handed a copy of the Supreme Court judgment to the trial judge, Justice Anwuri Chikere. He asked for time to enable him take necessary steps before the re-arraignment Atolagbe said: “This matter is slated for mention. On March 18, 2016, the Supreme Court dismissed the appeals by the defendant.

“I will urge my lord to adjourn the case to afford the prosecution some time to take some steps. We

will need about two weeks. We seek an adjournment for the defendants to take their plea.”

Counsel for Kalu, Chief Awa Kalu (SAN), and the lawyer representing Udeogo and Slok Nigeria Limited, Chief Solomon Akume (SAN), did not oppose the request for adjournment.

The judge then fixed May 16 for re-arraignment.

A five-man panel of the Supreme Court had on March 18 dismissed the defendants’ appeals challenging the competence of the charges preferred against them In the lead judgments prepared by JusticeSuleimanGaladimawithrespectto the two appeals (by Kalu and Udeogo), the apex court upheld the concurrent decisions of the Federal High Court, Abuja and the Abuja Division of the Court of Appeal, which had both earlier dismissed the accused persons’ objection to their trial.

Justice Galadima, whose judgment with respect to Kalu’s appeal was read by Justice Sylvester Ngwuta, said: “The appellant had

approached the Federal High Court, Abuja to quash the charges made against him by the EFCC. “The court dismissed the case. We went to the Court of Appeal, Abuja Division. He lost and approached this court.

“Having considered all issues raised and arguments by parties, I come to the conclusion that I cannot, but help in dismissing this appeal for lacking in merit. It is dismissed.

“I affirm the decision of the court bellow, which rightly affirmed the decision of the Federal High Court, that it was not bound by the ex-parte order of the Abia State High Court as to vitiate the charges preferred against the appellant.

“The learned Chief Judge of the Federal High Court should assign the case to another judge for expeditious trial.”

Other members of the panel, comprising the Chief Justice of Nigeria, Justice Mahmud Mohammed; Justices Bode RhodesVivour, Sylvester Nwgwuta and Datijo Mohammed.

TUESDAY APRIL 12, 2016 • T H I S D AY

40

CRIME&PUNISHMENT

#PanamaPaper Reveals T.B. Joshua’s Shell Company in Offshore Tax Haven Temitope Joshua is arguably the most influential preacher in Africa.

The founder of the Synagogue Church of All Nation (SCOAN) attracts huge numbers of people from across Africa and beyond, many of them seeking faith healing from ailments and exorcism from demonic possession.

On September 12, 2014, a guesthouse within his church collapsed, killing 116 people, most of them South Africans, who travelled to the Lagos headquarters of the church for pilgrimage.

The cleric has also endeared

his Christian ministry to many political leaders on the African continent who throng his church, with some of them openly testifying that he correctly predicted the outcomes of the elections that brought them to power.

One of the African leaders who believed in Joshua’s prophesy was former Ghanaian president, John Atta-Mills. After his inauguration in 2009, the first visit made by Atta-Mills, a Professor of Law, was to the Synagogue, as Joshua’s church is commonly called.

Atta-Mills died in office on

Igbo Traders Protest Killing of Colleagues in Bayelsa Emmanuel Addeh inYenagoa Several Igbo traders in Yenagoa, the Bayelsa State capital yesterday took their protest to the police headquarters, in the state capital, complaining that their safety was no longer guaranteed by authorities in the state.

The demonstration, which took the aggrieved traders through major streets, took place after a third Igbo businessman was killed by suspected assassins in less than a month.

Yesterday’s protest was induced by the murder of another businessman, identified as Martins Agodo, by unknown gunmen at his Yenagoa residence in the early hours of yesterday.

The armed gang reportedly broke into the house of the decease, who owns a popular boutique called Omars Fashion Plaza at the Ompadec area of the Yenagoa-Mbiama Road, killing him instantly.

His house located on Punch Road, was particularly targeted and burgled after the marauders demanded money from their victim, who told them he had no money in the house.

He reportedly told his assailants that there was no cash at home because shops in the capital city were shut down for about four days in honour of the late Governor of the state, Chief Diepreye Alamieyeseigha, who was buried on Saturday.

After ransacking his house, the gunmen were said to have shot and killed him in cold blood in

the presence of his young wife, whom he just married.

Chief Chinedu Arthur-Ugwa, President, Ohaneze Youth Council (OYC), who led the protest, lamented that Agodo was killed a few days after gunmen suspected to be assassins murdered another successful Igbo businessman, Ugochukwu, popularly called Ugo Best.

It was learnt that Ugochukwu was killed along the Azikoro village on his way home after business of that day while his corpse was discovered the next day at the Azikoro cemetery with his hands and legs tied together. ‘’The Igbos are no longer safe in Bayelsa. We are being killed by gunmen. One was killed at Azikoro, the other one was killed at Tombia and today another one who just got married was killed in cold blood.

“We are not happy and we have closed down our business to come to the police headquarters that we are not safe. If you cannot guarantee our safety, we will relocate our business and families out of the state,’’ the leader said.

The Commissioner of Police, Mr. Peter Ogunyawo, in his response, told the crowd that death was inevitable and a ‘debt everyone must pay’.

“Whatever has happened is unfortunate. No violence is targeted at any tribe. Crime happens everywhere.

Rather than complain, you need to tell us once there’s a feeling that a crime is about to happen. Our patrol team doesn’t sleep.

DPO Beats Female Traffic Officer in Ogun Sheriff Balogun in Abeokuta The Ikenne Divisional Police Officer, Mr. Patrick Onwu, yesterday beat up a female traffic officer, Inspector Anifat Bello, for stopping his private vehicle at Nigerian National Petroleum Corporation (NNPC) junction in Abeokuta.

The senior police officer who was on mufti, was said to be travelling into Abeokuta from Sagamu when he was stopped

by Bello who was at her duty post at the NNPC junction.

It was gathered that the police officer drove into a nearby filling station, parked and changed into a police uniform before beaten

the inspector up.

While contacting the State Public Relations Officer, DSP Muyiwa Adejobi on the incident, he said the CP was unhappy about it, saying that the CP had directed that the matter be thoroughly investigated.

He said: “The woman traffic officer has reported the matter to the CP and he has directed that the matter be thoroughly investigated. The CP was not happy when the woman came with a swollen face,” adding that “if the allegation is true, am very sure the CP will know what to do on the issue.”

Igbo traders protest killing of colleagues in Bayelsa

July 24, 2012. It remained unclear whether Pastor Joshua saw his death coming.

The pastor’s television station, Emmanuel TV, is believed to be one of the most viewed on the continent.

Apart from evangelism, Joshua is not known to be involved in any other business.

However, according to Premium Times, Files on the massive leaked data of a Panamanian law firm, Mossack Fonseca, has now shown that Joshua and his wife, Evelyn, own Chillon Consultancy Limited, a company incorporated on June 20, 2006 at the British Virgin Island

(BVI).

Both owners own one ordinary share each, although the company, with registration number 1033675, is authorised to issue a maximum “50,000 no par value Shares of a single class.”

It remains unclear what businesses Joshua transacted with the shell company which has no physical presence in Tortola, the largest and most inhabited island at the British Virgin Island.

Chillon Consultancy Limited uses the office address of its registered agent, Mossack Fonseca (Akara Bldg., 24 De Castro Street, Wickhams Cay 1, Road Town,

Tortola) as its contact information in the British Virgin Island.

Joshua is the second Nigerian mega preacher shown to set up offshore companies in tax havens.

An April 2013 investigation had exposed Chris Oyakhilome, founder and leader of Christ Embassy, as incorporating Gmobile Nigeria Limited, an offshore firm in 2007, at the British Virgin Island.

Although other individuals were listed as shareholders and directors, that investigation was able to determine that the pastor’s teenage daughters – Sharon and Charlyn – were the real beneficial owners of the company.

Like many mega preachers in the country, Joshua is reported to live in opulence.

Last September, an online news website claimed the televangelist bought a Gulfstream G550 aircraft in April 2015.

According to website the jet, registered as “Synagogue of Nations,” was purchased using the Bank of Utah trustee as front.

A Gulfstream G550 is sold for as much a $45 million and could take up to $3 million dollars in yearly maintenance cost.

Every attempt to get Joshua to comment on the allegations proved abortive

GOD WILL COMFORT YOU

Ondo State Governor, Dr. Olusegun Mimiko (second left); Chief of Staff to the governor, Dr. Kola Ademujimi (left); with wife of the late Oodua People’s Congress (OPC) Leader killed by Fulani herdsmen , Mrs. Ige and her children, during the governor’s visit to the family of the deceased, in Akure...yesterday

Lagos to Prosecute 28 Defaulters for Tax Evasion Gboyega Akinsanmi The Lagos State Rapid Tax Prosecution Unit has begun the prosecution of recalcitrant tax payers in the state.

The state Attorney-General and Commissioner for Justice, Mr. Adeniji Kazeem, who disclosed this yesterday, said The Rapid Tax Prosecution Unit had filed all the necessary information at the state High Court for the arraignment of 28 tax defaulters referred by the state Internal Revenue Service (LIRS) and prosecution has begun in earnest.

He said their offences ranges from failure to furnish and file tax return to failure to pay personal tax to the state.

The Lagos AG said these offences violate the Personal Income Tax Act 2004 as amended and the state Revenue Administration law.

“Under the Personal Income Tax Act, a taxable person is statutorily required to file a return of income for the preceding year within 90 days from the commencement of every year of assessment (March 31st being the deadline),

while every employer of labour is required to file all emoluments paid to its employees for the preceding year, not later than January 31 each year.

“Therefore, any taxable person or corporate organisation, who fails to file their tax returns with LIRS by the stipulated date, is in breach of the provisions of the law, which is a criminal offence that is punishable under the tax laws.”

Kazeem said.

He said the Lagos State Government established the Rapid Tax Prosecution Unit to aid the LIRS in its drive to collect taxes, and warned members of the public to cooperate with tax officers as obstruction of these tax officers in their lawful duty can and will lead to prosecution.

Kazeem said the enforcement of the tax laws became necessary because a large number of Lagosians have not paid their taxes.

He said tax evaders and offenders, upon prosecution, may be fined or imprisoned or made to face both as provided in the Personal Income Tax Act.

Cynthia Osokogu: Defendants Failure to File Written Address Stalls Trial Akinwale Akintunde Justice Olabisi Akinlade of the Lagos State High Court in Igbosere yesterday lambasted the defence counsel in the trial of suspects who allegedly murdered Cynthis Osokogu for the delay tactics approach being adopted to frustrate the case.

The judge who did not hide her displeasure, lambasted the counsel for giving unreasonable excuses to delay the trial.

The trial of four defendants who were arraigned for the alleged murder of Osukogu, a postgraduate student of Nasarawa State University, was adjourned till yesterday for the adoption of the final written addresses by the lawyers involved but when the case was called, the court was disappointed as lawyers sought for more time.

The trial in the past, had suffered series of setbacks due to the foot dragging of the defendants in filing their written address since last year.

The defendants in the case are Okwumo Nwabufor, Olisaeloka Ezike , Orji Osita and Nonso Ejike, they are standing trial on a two count charge of conspiracy and murder.

They are accused by the Lagos State Government of murdering Cynthia, a friend they claimed to have met on the social media platform, Facebook, on July, 22, 2012 at Cosmilla Hotel, Lake View Estate, Festac Town, Lagos.

Out of the four defendants, only the first and second defendants were represented by their counsel yesterday.

Last year in August, the judge had threatened to send the fourth defendant, Nonso Ezike back to prison for deliberately stalling the case.

However, based on the development, Justice Akinlade adjourned the matter to June 8, for the adoption of their written addresses by all parties in the matter.

TUESDAY APRIL 12, 2016 • T H I S D AY

41

NEWSEXTRA

Edo Govt Charges Fulani Herdsmen, Farmers to Maintain Peace Nigeria heading towards precipice, says Mimiko Adibe Emenyonu in Benin City and James Sowole inAkure Following the clash between Fulani herdsmen and local farmers which left one person dead last week in Edo State, the state government has urged both warring parties to maintain peace.

This came as Ondo State Governor, Dr. Olusegun Mimiko, yesterday raised the alarm that Nigeria was heading towards precipice unless urgent steps are taken to check the trend.

The government warned the group to allow peace reign or face the wrath of the law, as it would neither ban grazing nor farming.

Speaking during a stakeholders’ meeting to find lasting solution to the lingering crisis between Fulani herdsmen and farmers in the state, the state Governor, Adams Oshiomhole, said if not properly managed, the crisis “could escalate beyond what we can manage quietly.”

He vowed that government would prosecute any rapist, kidnapper, rustler who steals people’s cows, adding that listening to all the stakeholders, including royal fathers, farmers, Fulani herdsmen among others, “everybody agreed that rape, robbery, destruction of farms, rustling of cattle are not acceptable.

Bayelsa Poll: Tribunal Grants Sylva’s Application to Inspect Materials Tobi Soniyi in Abuja The Bayelsa State Governorship Election Tribunal sitting in Abuja yesterday granted the request of the former Governor of the state and the All Progressives Congress (APC) candidate, Chief Timipre Sylva, to inspect some materials used for the December 5, 2015 and January 9, 2016 governorship election held in the state.

The tribunal however refused the request of the petitioners for the inspection of some listed items including the final and interim reports on Kogi State governorship election; summary of total voter register; video/audio record relating to the governorship election; election observers’ report and duplicate or receipt issued by the Independent National Electoral Commission (INEC) for verification of documents.

But in a swift reaction, Governor Seriake Dickson said the request granted Sylva to inspect election materials would not change the fact that he was not wanted by the people of the state.

In a statement by his Media Aide, Francis Agbo, the governor stated “PDP is very confident of

victory at the tribunal because Governor Henry Seriake Dickson won the December 5, 2015 and January 9, 2016 polls with valid votes, with a wide margin in the full glare of the world.

“Sylva is in the tribunal to gasp for political oxygen and to use it to raise funds from unsuspecting APC chieftains for survival. Sylva cannot win because his petition is watery and lacking content and since you can not build something on nothing, there are no grounds for pronouncing him governor.

“Whereas APC is not on ground in Bayelsa, Sylva is a political reject and can not become governor through the back-door as boasted by the APC because he knows he lost the election and the tribunal can not make him governor from the blues.”

In his application to inspect the materials, the petitioner, had through his counsel, Chief Sabastine Hon (SAN) specifically sought an order of the tribunal to compel the chairman INEC to allow him inspect election materials used for the polls.

Among the 37 materials sought to be inspected are the ballot papers used and thumb printed.

Lawmaker Decries Killing of Amuwo Odofin Constituents Sunday Okobi A member representing AmuwoOdofin federal constituency in the House of Representatives, Hon. Oghene Egoh, has condemned the killing of two constituency members who were alleged to be petrol black marketers by the personnel of the Nigeria Civil Security Defence Corps (NSCDC) recently.

Egoh in a statement made available to THISDAY at the weekend, said the individuals killed by stray bullets in an attempt to get fuel at the fuel station, “were neither armed nor declared wanted by the police. The officers had an option to arrest the deceased instead of using force or firearms.”

The lawmaker also noted that one of the victims, known as Ikechukwu, was shot three times for a trying to buy fuel for

his livelihood.

“They never committed any crime,” he said, stressing that the act was callous, criminal and unacceptable to his people, and therefore called on the authorities of Nigeria Police Force and the NSCDC to take necessary actions to ensure that the perpetrators are made to face the consequences of their action.

Egoh added: “As the representative of Amuwo Odofin in the House of Representatives, I will not allow my people to be murdered in cold blood. I hope this will act as a deterrent to other erring officers who abuse commoners unjustly.

“This will also cause civil defence management to properly train their men in use of fire arms. My people will not die in vain as government must pay compensation.”

“In every conflict, there must be an oppressor. Somebody might be blamed, but every conflict can be resolved if all the parties approach the solution with honest intentions, and whatever agreement is reached, we will try to implement it faithfully.

That way, there will peace. There will be no war without a quarrel, but what matters is the capacity to resolve the quarrel and continue to live in peace.”

Meanwhile, disturbed by the incessant invasion of farmlands by Fulani herdsmen with its resultant effects on the socio-economic lives of the people, Mimiko has raised the alarm that Nigeria is heading towards precipice unless urgent steps are taken to check the trend.

The governor alerted Nigerians

on the situation during an interview with journalists after he held a meeting with members of the state branch of Oodua Peoples Congress (OPC) in his office, Akure.

The meeting was against the backdrop of the alleged killing of the OPC Coordinator in Akure North Local Government Area, Ayodele Ige, by herdsmen who invaded the farm of the former Secretary to the Government of the Federation (SGF), Chief Olu Falae.

The deceased was one of the OPC members hired by Falae to guard against constant grazing on his farm, which had led to destruction of his crops severally.

While appealing to OPC members who said they would

have engaged in reprisal but for the intervention of Falae and the governor, Mimiko, said government had put in place a lot of firefighting efforts in the last 48 hours to ensure that there was no retaliatory attack from the group.

“There’s no question about the fact that this is becoming a monster of sort. I’ve had cause to express my views on this and I think we all ignore this menace as a nation. I can see us moving towards a precipice and we must do something about the situation, it’s getting dangerous and the audacity is very disturbing.

“Apart from the challenges this act poses to food security, there’s hardly a farmer in the state who has not had different encounters

with these herdsmen.

“It is sad that people are being killed over their own property, and this is a very big challenge for me. I think the way out is for the federal government to collaborate with some states governments in the North to set up big ranches with dams and other facilities, even schools for these herdsmen. If we don’t do this, it will get to a stage that people will begin to defend themselves,” Mimiko said The governor, who said the matter should not be politicised in whatever manner, hinted that all stakeholders must come together and decide on how to find a lasting solution to the menace threatening the peace of the nation.

GOVERNMENTAL HARMONY

Cross River State Governor, Prof. Ben Ayade (middle), in a warm embrace with the Chief Judge of the state, Justice Okoi Ikpi Itam, shortly after the swearing in of three judges in Calabar...yesterday. With them is the Speaker of the House of Assembly, Hon. John Lebo

Recruitment: Police Told to Adhere Strictly to Federal Character Principles Makes case for Bayelsa, Ebonyi, North-east states Paul Obi in Abuja As the police commence the recruitment exercise of 10,000 personnel, the presidency yesterday urged the security agency to adhere strictly to the provisions of the federal character principles.

The Acting Executive Chairman of the Federal Character Commission (FCC), an agency under the presidency, Dr Shettima Bukar Abba, charged the Nigerian Police Force to ensure strict application of principle of federal character of fairness, equity and justice in the on-going police recruitment exercise.

He gave the charge when the Chairman Police Service Commission (PSC), former Inspector General of Police, Mike Okiro (rtd) and other members of the commission visited the FCC headquarters to discuss the modalities for the recruitment

of 10,000 police officers into the work force as directed by President Muhammadu Buhari.

According to Abba, “The principle of federal character should be considered in the recruitment exercise without compromising merit,” this he said, “will go a long way in making the exercise transparent and meeting the yearnings and aspirations of Nigerians.”

He explained that “adhering to basic standards will make the process easy and credible” and ensure that all sections of the country are represented in the force.

The acting Chairman also tasked the commission to specifically take note of states like Bayelsa, Ebonyi in the south and some states in the North-east geo-political zone, which were not adequately represented in the current analyses of the nominal roll of the police force.

The commission linked the lopsidedness in the police nominal roll especially in the north-east zone due to insurgency in the area which forced many officers to abandon their jobs while several others were killed by the terrorists.

Also, the FCC noted that there were cases of lopsidedness in recruitment in Ministries of Defence, Foreign Affairs and other related agencies.

Abba further enjoined the PSCto ensure fairness, equity and justice during the recruitment exercise and have the assurance that the federal character commission would perform its constitutional role by ensuring proper monitoring and the enforcement of the principle of federal character during the exercise.

Speaking, Okiro assured the commission that all the 774 local governments in Nigeria would be represented in the exercise and assured of equity in conducting

the exercise.

He further stated that all the states that have been grossly underrepresented in the police force nominal roll over the years, would be considered, while correction would be made using the on-going recruitment.

Okiro reiterated that it would no longer be business usual, as government has put in place a mechanism, to strictly scrutinise applicants on issues such as age, certificates, local government identification and criminal records.

Okiro added that “though there will be proper spread of all categories of vacancy declared no single unqualified person will be employed in the exercise” he added.

He further stated that the commission may compare applicants’ information with other data like BVN, National Identity Card and other relevant information.

n e e d r e n s c

42

T H I S D AY • TUESDAY, APRIL 12, 2016

BUSINESS/MONEYGUIDE

Emefiele: Agriculture Can’t Survive on High Lending Rates James Emejo in Abuja The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele yesterday maintained that the agricultural sector would not survive on high commercial interest rates from banks and called for recommendations on how to better harness its enormous opportunities to diversify the Nigerian economy for sustainable growth.

He said the sector required single-digit lending rates and long-term loans to be properly repositioned to stimulate the economy amid the present fiscal crisis caused by the faking price oil.

Speaking in Abuja at the opening of the Nigerian AgriFinance Conference, themed: “Catalysing the Diversification of the Nigeria Economy through Effective Agricultural Finance”, he said despite the Maputo declaration of 2003, which requested that African Governments should commit at least 10 per cent of their annual budget to the agricultural sector, the country had not met even half of the allocation to the sector.

Represented by CBN Deputy Governor, Corporate Services, Mr. Adebayo Adelabu, the central bank governor said the sector was larger than manufacturing and oil sectors combined, creating over 70 per cent of informal sector jobs in rural agriculture.

He said to complement efforts by the fiscal authorities to curb food importation, the CBN followed up with a policy directive in June 2015, by excluding 41 items, including some agriculturebased commodities, as “Not Valid for Forex” to help conserve foreign reserves.

He said the theme of this year’s conference supported the current national priority of attaining selfsufficiency in food production, stimulating non-oil exports and diversifying the economic base of the country.

Emefiele said: “With an annual food imports bill of over N630 billion (decreased from N1.3trillion), unemployment rate of 9.9 per cent, and poverty, economic diversification is no longer optional but a necessity to reposition our economy to attain inclusive growth and global competitiveness.”

According to him, the exclusion “Effectively barred importers of these items from accessing the official foreign exchange window.

This is expected to discourage importation and stimulate domestic production through increased investment. Towards this end Government set self-sufficiency targets for some of these commodities.

It is 2016, 2018 and 2019 for tomato paste, rice, and wheat, respectively.”

He added: “These attempts at stimulating local production of agricultural commodities were to complement existing credit delivery initiatives to boost productivity through value chain approach.

“In this respect, you will agree that agriculture and agro-based industries remains most fundamental to these diversification efforts as a major contributor to the gross domestic product (GDP) in the country. Governments in other climes have also recognised the importance of the sector by providing incentives for its growth.”

He said having spearheaded several initiatives including the Nigeria Incentive based Risk

Sharing System for Agricultural Lending (NIRSAL), and Anchor Borrowers’ Programme (ABP) among others, the apex bank will “continue to institute proagricultural sector policies to totally reduce our food import bills, create jobs and diversify the economy. I wish you all fruitful deliberations.”

Also speaking at the occasion, the Chief Executive, Union Bank of Nigeria Plc, Mr. Emeka Emuwa said berated the sector contribution to export earning which is valued at less than 10 per cent.

According to him, “In Nigeria, the sector employs over 50per cent of the country’s labour force but contributes less than 10per cent to export earnings.

Today, Nigeria finds herself with a 43per cent decrease in oil revenue from N486.4 billion in January 2015 to N370.4 billion in January 2016.

“This has resulted in a shortage in foreign currency, reflected in declining reserves from $32.4 billion in January 2015 to $27.8 billion as at March 2016. Disparities between the official exchange rate (N197/$) and the parallel market rate (N320/$), reduced availability of forex to support manufacturing and increasing food prices, reflected in rising inflation from 8.2 per cent in January 2015 to 11.4 per cent as at February 2016.

Furthermore, he said: “One of the key challenges facing the Agricultural sector today is the lack of effective agricultural finance. The Central Bank of Nigeria and the Nigerian banking industry have made significant progress in addressing this recording 36% growth in loans to the agriculture sector to about N48.4 billion.”

FG Resuscitates Sunti Sugar Company with N26bn Laleye Dipo in Minna The Sunti Sugar Company in Mokwa town of Niger state, which has been comatose for over two decades has received a bailout fund of N26 billion from the federal government.

The Governor of Central Bank of Nigeria, Mr. Godwin Emefiele, who announced this while on an inspection visit to the Sugar Company along with Niger state, Governor Alhaji Abubakar Sani Bello, said the federal government’s gesture was to assist the resuscitation drive of the company.

Emefiele said that the amount given to the company would

be repaid with a single digit interest rate of seven per cent.

“This project marks the success story of President Muhammadu Buhari’s focus and his aggressiveness towards ensuring that we diversify our country from oil economy into a non-oil driven economy. A project like this is an indication that Nigeria is working.

“It may look a little painful but at this time when there is scarcity of foreign exchange, this is the kind of project we will continue to give support to,” Emefiele said.

Emefiele declared that the “CBN is ready to give support both in terms of naira funding

and also in providing foreign exchange for the importation of equipment and other machinery to investors and industrialists who are committed toward the economic growth and development of this country.”

Also, the Niger state Governor urged the people of the state to protect the installations.

“As investors are coming into the state now, host communities must be prepared to cooperate with them, protect the factories.

The agro-allied factories will not only provide jobs for our youth, they will empower and enhance our farmers as the factories are ready to buy up all the farm produce,” he added.

Wema Bank Eyes Acquisitions, Plans to Raise Debt Wema Bank Plc is aiming to buy a mid-sized commercial lender to build scale and will seek shareholder approval next month to enter acquisition talks, its chief financial officer (CFO) said on Monday.

“Wema Bank is keeping a close eye on various offers for sale in the market,” CFO Tunde Mabawonku told Reuters.

The Asset Management Corporation of Nigeria (AMCON) is seeking prospective investors to buy Keystone Bank, the last of Nigeria’s nationalised

banks yet to be sold, while rival lender Unity Bank has sought shareholder approval to start merger talks to shore up its capital base.

Other opportunities could be thrown up by the central bank’s June deadline for three commercial banks to recapitalise after they failed to hit a minimum capital adequacy rate of 10 per cent.

Mabawonku said that midtier lender Wema, which won regulatory approval last year to switch from regional to national

bank, has suspended plans to issue foreign currency bonds because of currency risk and will instead stick to local bonds.

The bank will seek shareholders’ approval to issue bonds or preference shares this year and aims to raise N20 billion ($100 million) in the first tranche of a N50 billion bond programme.

“We are in the process of completing documentation and we hope to file with the Securities and Exchange Commission (SEC) in a couple of days,” Mabawonku said.

Emefiele

MARKET INDICATORS MONEY AND CREDIT STATISTICS

(MILLION NAIRA)

FEBRUARY 2016 Broad Money (M2)

20,489,166.72

-- Narrow Money (M1)

9,095,578.34

---- Currency Outside Banks

1,377,483.11

---- Demand Deposits

7,682,095.23

-- Quasi Money

11,429,588.38

Net Foreign Assets (NFA)

5,471,351.78

Net Domestic Assets(NDA)

15,017,814.94 22,414,322.75

-- Net Domestic Credit (NDC) ---- Credit to Government (Net)

3,424,029.62

---- Memo: Credit to Govt. (Net) less FMA

4,807,604.55

---- Memo: Fed. and Mirror Accounts (FMA)

1,383,574.93

---- Credit to Private Sector (CPS)

18,990,293.13

--Other Assets Net

7,396,507.81

Reserve Money (Base Money)

5,095,380.23

--Currency in Circulation

1,711,623.51

--Banks Reserves

3,383,756.72 • 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, 8 APRIL 2016 The price of OPEC basket of thirteen crudes stood at $36.01 a barrel on Friday, compared with $34.71 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 12, 2016

Nigeria’s top 50 stocks based on market fundamentals

11-Apr-16

8-Apr-16

% Change

Capitalisation

EPS

P/E

P/S

Div. Yld

Price/ Book Value

01 Dangote Cement Plc

160.90

169.00

-4.79%

2,741,817,641,464.50

10.64

15.98

5.89

4.71%

4.49

02 Nigerian Brew. Plc.

105.00

109.90

-4.46%

832,555,593,240.00

5.37

20.30

3.13

3.30%

5.07

03 Nestle Nigeria Plc.

675.00

675.00

0.00%

535,042,970,100.00

29.95

22.54

3.54

4.30%

14.08

14.00

14.30

-2.10%

412,036,509,136.00

3.38

4.18

1.81

12.53%

1.01

293.23

293.23

0.00%

381,926,533,832.69

4.45

65.92

3.06

1.18%

8.25

06 Lafarge Africa Plc.

75.00

75.00

0.00%

341,617,635,750.00

5.93

12.65

1.28

4.00%

1.94

07 Zenith Bank Plc

10.50

10.96

-4.20%

329,663,184,753.00

3.37

3.27

0.80

16.36%

0.58

08 Ecobank Transnational Incorporated

14.07

14.80

-4.93%

258,178,185,595.05

1.39

10.88

0.54

4.09%

0.74

09 Seplat Petroleum Dev. Co. Ltd.

310.30

310.30

0.00%

171,692,190,123.90

23.48

13.17

1.51

5.15%

0.61

10 Guinness Nig Plc

100.00

100.00

0.00%

150,588,818,800.00

0.78

128.49

3.02

0.00%

3.37

13.00

13.19

-1.44%

130,000,000,000.00

2.04

6.60

1.14

0.74%

1.20

12 FBN Holdings Plc

3.30

3.34

-1.20%

118,454,466,213.60

2.16

1.62

0.31

28.57%

0.22

13 United Bank for Africa Plc

3.08

3.24

-4.94%

111,740,941,071.76

1.64

1.95

0.37

18.75%

0.35

29.00

29.00

0.00%

109,715,591,250.00

0.32

92.02

1.85

0.17%

13.71

15 7-Up Bottling Comp. Plc.

147.00

147.00

0.00%

94,166,783,361.00

11.12

13.21

1.21

1.50%

3.92

16 P Z Cussons Nigeria Plc.

23.50

23.50

0.00%

93,306,210,557.50

1.10

21.42

1.29

5.53%

2.22

3.90

4.00

-2.50%

89,243,383,741.20

2.28

1.78

0.56

13.58%

0.32

18 International Breweries Plc.

20.00

20.00

0.00%

65,884,985,600.00

0.64

31.29

3.56

1.25%

5.47

19 Dangote Sugar Refinery Plc

5.30

5.35

-0.93%

63,600,000,000.00

0.96

5.51

0.63

9.43%

1.09

161.99

161.99

0.00%

58,412,826,491.38

13.51

11.99

0.91

4.44%

3.80

21 Julius Berger Nig. Plc.

43.00

43.00

0.00%

56,760,000,000.00

1.85

23.26

0.42

3.49%

2.34

22 Flour Mills Nig. Plc.

21.43

20.50

4.54%

56,237,402,917.41

1.84

10.62

0.16

10.23%

0.50

160.50

160.50

0.00%

54,493,254,838.50

11.92

13.22

0.26

8.88%

3.29

24 Oando Plc

4.06

4.05

0.25%

48,860,552,709.64

0.50

8.14

0.09

18.43%

0.31

25 Sterling Bank Plc.

1.60

1.60

0.00%

46,064,669,001.60

0.36

4.48

0.42

5.63%

0.48

26 Transnational Corporation Of Nigeria Plc

1.04

1.08

-3.70%

40,269,837,322.00

0.05

20.39

1.02

0.00%

0.47

04 Guaranty Trust Bank Plc. 05 Forte Oil Plc.

11 Stanbic IBTC Holdings Plc

14 Unilever Nigeria Plc.

17 Access Bank Plc.

20 Mobil Oil Nig Plc.

23 Total Nigeria Plc.

27 Fidelity Bank Plc

1.32

1.38

-4.35%

38,246,732,070.36

0.48

2.81

0.27

11.85%

0.21

28 U A C N Plc.

19.40

19.40

0.00%

37,264,769,107.80

2.70

7.58

0.54

4.89%

0.53

29 Presco Plc

34.60

34.60

0.00%

34,600,000,000.00

3.28

10.55

3.05

0.29%

1.54

1.30

1.30

0.00%

30,108,505,658.40

0.92

1.42

0.16

23.08%

0.13

31 Glaxo Smithkline Consumer Nig. Plc.

24.97

24.97

0.00%

29,861,035,905.36

0.81

30.94

0.97

1.20%

2.26

32 Okomu Oil Palm Plc.

31.25

31.25

0.00%

29,809,687,500.00

2.76

10.79

2.92

0.34%

2.35

0.73

0.74

-1.35%

28,826,512,445.49

0.06

12.27

0.62

0.00%

0.62

34 Cadbury Nigeria Plc.

14.77

14.77

0.00%

27,741,044,130.80

3.21

4.61

0.82

8.80%

2.68

35 Cap Plc

38.50

38.50

0.00%

26,950,000,000.00

2.49

15.49

3.82

2.99%

17.73

36 Custodian And Allied Insurance Plc

4.15

4.05

2.47%

24,409,736,409.25

0.71

5.73

0.81

4.89%

0.92

37 Mansard Insurance Plc

1.95

1.86

4.84%

20,475,000,000.00

0.16

12.00

1.20

2.63%

1.15

38 National Salt Co. Nig. Plc

7.65

7.30

4.79%

20,268,203,591.70

0.79

9.00

1.17

7.69%

2.67

39 FCMB Group Plc.

0.95

0.98

-3.06%

18,812,575,216.30

0.24

4.08

0.13

10.20%

0.12

40 Skye Bank Plc

0.98

0.94

4.26%

13,602,695,381.80

0.85

1.12

0.10

31.25%

0.09

41 Honeywell Flour Mill Plc

1.35

1.41

-4.26%

10,705,766,838.30

0.14

9.98

0.23

11.35%

0.52

42 Continental Reinsurance Plc

0.99

0.95

4.21%

10,269,016,868.88

0.16

5.65

0.59

11.11%

0.62

43 Cement Co. Of North.Nig. Plc

7.03

7.03

0.00%

8,834,444,694.98

0.96

7.36

0.68

1.42%

0.87

44 Unity Bank Plc

0.69

0.66

4.55%

8,065,643,179.98

0.54

1.27

0.13

0.00%

0.09

45 UACN Property Development Co. Limited

4.17

4.17

0.00%

7,167,187,479.15

1.81

2.31

0.64

16.79%

0.22

46 Wapic Insurance Plc

0.50

0.50

0.00%

6,691,369,124.00

0.10

5.16

0.94

6.00%

0.45

47 Nigerian Aviation Handling Company Plc

3.89

3.89

0.00%

6,318,210,937.50

0.33

11.75

0.74

5.14%

1.04

48 Resort Savings & Loans Plc

0.50

0.50

0.00%

5,664,866,202.00

4.68

0.11

0.02

0.00%

1.89

49 AIICO Insurance Plc.

0.76

0.76

0.00%

5,266,955,404.80

0.28

2.89

0.17

6.25%

0.57

50 Fidson Healthcare Plc

2.12

2.34

-9.40%

3,180,000,000.00

0.50

4.72

0.43

2.14%

0.56

30 Diamond Bank Plc

33 Wema Bank Plc.

TOTAL

7,845,470,126,017.58

TOTAL MARKET CAP

8,712,382,529,955.97

% OF MARKET CAP Annotation - MA* = Simple Moving Average

90.05%

Table 1 Market Statistics Mkt Indicators

Open 8-Apr-16

NSE All Share Index NSE Market Cap (N'Trillion)

25,328.07 8.71

24,649.39 8.48

-2.68% -2.68%

103.64 8.07

100.76 7.85

-2.78% -2.78%

Thisday BGL 50 Index Thisday BGL 50 Market Cap (N'Trillion)

Close 11-Apr-16

Change %

Table 3 Top 5 Gainers Stock

Open 8-Apr-16

Mansard Insurance Plc National Salt Co. Nig. Plc Unity Bank Plc Flour Mills Nig. Plc. Skye Bank Plc

1.86 7.30 0.66 20.50 0.94

Close Change % 11-Apr-16 1.95 7.65 0.69 21.43 0.98

4.84% 4.79% 4.55% 4.54% 4.26%

Table 4 Top 5 Losers Stock

Open 8-Apr-16

Fidson Healthcare Plc United Bank for Africa Plc Ecobank Transnational Incorporated Dangote Cement Plc Nigerian Brew. Plc.

Close Change % 11-Apr-16

2.34 3.24 14.80

2.12 3.08 14.07

-9.40% -4.94% -4.93%

169.00 109.90

160.90 105.00

-4.79% -4.46%

Reversal of fortune as market loses by 0.52% Market pulse on the Nigerian Stock Exchange (NSE) today- Monday March 14th, 2016, was bearish due intense sell pressure and profit taking. This was further highlighted by negative performance from NSE Sub sectors; Insurance and Consumer Goods (Save Banking and Oil & Gas).

Trading activities increased in volume as 310.65 million shares worth N2.06 billion in 3,010 deals exchanged hands today. This is an increase from the 214.95 million shares worth N1.35 billion in 3,327 deals carried out on Wednesday. Topping in volume terms was Zenith Bank Plc, United Bank for Africa Plc and FCMB Group Plc, while Guaranty Trust Bank Plc and Zenith Bank Plc ended trading as the most active stocks in value terms.

The All Share Index (NSEASI) closed negative with a 0.52% (-134.82) decrease to 25,853.58 from 25,988.40 the previous trading day. Market Capitalization depreciated in tandem to N8.89 trillion from N8.94 trillion of prior trading day. The Thisday BGL 50 Index followed suit with 0.67% decrease to close at 105.49 from 106.20 the previous trading day, while its market capitalization stood at N8.21 trillion from N8.27 trillion of the previous trading day.

A total number of 16 stocks gained on the bourse today while 23 stocks declined, leaving 65 stocks unchanged. UACN Plc emerged the toast of investors as it topped the Thisday BGL 50 Index gainers’ list with a gain of 4.96% to close at N20.95 per share. It was followed NASCON Plc with a gain of 4.93% to close at N7.87 per share. Others on the gainers list include: FCMB Group Plc, Zenith Bank Plc and Dangote Sugar Refinery Plc while on the decliners’ list; Honeywell Flour Mill Plc led with a loss of 5.00% to close at N1.71 per share. It was followed by 7-Up Bottling Comp. Plc with a loss of 5.00% to close at N153.43 per share. Others on the losers list include; Sterling Bank Plc. Unity Bank Plc and Flour Mills Nig. 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 12, 2016

MARKET NEWS

United Capital Grows Profit by 61% to N1.4bn in Q1 Goddy Egene and Eromosele Abiodun United Capital Plc has announced a profit before tax of N1.422 billion for the first quarter ended March 31, 2016, showing an increase of 61 per cent above the N707 million recorded in the corresponding period of 2015.

According to the unaudited results made available by the

Nigerian Stock Exchange (NSE) yesterday, United Capital, which surprised investors with a 39 per cent growth in PAT for 2015 financial year, recorded gross earnings of N1.857 billion in Q1 of 2016, compared with N1.307 billion in 2015.

Net operating income stood at N1.761 billion, up by 49 per cent from N1.182 billion in 2015.

Total expenses was reduced by

11 per cent from N512 million to N453 million. As a result profit before tax improved by 59 per cent from N892 million to N1.422 billion, while PAT witnessed a fast growth of 61 per cent to be at N1.137 billion as against N707 million in 2015.

Market analysts commended the results, saying is a consolidation on the company’s 2015 full year performance. The shares of

the company rose 4.3 per cent or 4.3 per cent to close higher at N1.48.

United Capital had recorded earnings of N6.15 billion in 2015, up from N4.68 billion in 2014, representing a 32 per cent over 2014 performance. PBT grew to N3.26 billion from N2.31 billion, which is an increase of 41 per cent. PAT also grew by 39 per cent in 2015, closing at N2.57

billion, up from N1.85 billion in 2014.

Commenting on the full year results, Group Chief Executive Officer, Mrs. Oluwatoyin Sanni had said the performance in a year characterised by adverse macro-economic factors, was driven by the group’s growing market share, efficient execution of key mandates and effective cost management driven by

STOCK MARKET REPORT T H E

N I G E R I A N

STO C K

E XC H A N G E

improvements in operations and IT capabilities, thereby ensuring that we optimised value and retained a significant proportion of earnings.

“We continue to pursue our clear and consistent strategy, which has delivered a strong performance for shareholders, and we remain positive about our future opportunities within the Nigerian and African market.

T H I S D AY TUESDAY APRIL 12, 2016

45

46

T H I S D AY • TUESDAY APRIL 12, 2016

TUESDAYSPORTS

Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com

Pinnick’s Loyalists in Control at NFF Police ban journalists, visitors from the Glass House Crisis, a big shame, says Oneya

Duro Ikhazuagbe and Olawale Ajimotokan in Abuja Chris Giwa avoided the premises of the Nigeria Football Federation (NFF) yesterday as key staff of the football federation loyal to Amaju Pinnick ensured free flow of routine office activities.

A Jos High Court order granted by Justice Musa Kurya had last Friday annulled the election held in Warri on September 30, 2014 won by Pinnick.

The court also granted a relief sought by the plaintiff pending the determination of the main suit that Giwa should be recognised as the validly elected candidate by the congress at the Annual General Assembly (AGA) held at Chida Hotel, Abuja on August 26, 2014.

Pinnick however swiftly appealed the ruling and equally sought stay of execution, for status quo to remain, until the substantive suit is determined.

But in a move to show the desperation of the Giwa group to carry out the court order, it on Saturday announced the sacking of all NFF contract officials, while also a new management was purportedly put in place at the NFF. None of the appointed officials functioned in the new capacity as status quo was maintained with Dr Mohammed Sanusi incharge as general secretary while both Bola Oyeyode and Ademola Olajire functioned in their capacity as acting director of competition and assistant director of communications respectively.

NFF personnel who were heavily protected by police and men of Department of State Security (DSS) turned up for duty, apparently to ensure no chances were

taken ahead of today’s Africa Women’s Championship qualifying match between the Super Falcons and Senegal in Abuja.

The security men cordoned off the premises and did not allow journalists assess the NFF secretariat. The policemen said they were acting on orders from the above.

At the height of the football crisis in 2004, the NFF offices were razed by a fire which caused severe damage to the second floor while several trophies and other memorabilia were also burnt by the fire.

Meanwhile, a former NFF President, General Dominic Oneya (rtd) has flayed the current crisis rocking football administration in the country.

Speaking yesterday on the matter, Oneya who is a member of the CAF Organising Committee for the African Nations Championship (CHAN) described the current situation as “shameful” and “patently unbefitting of a strong football nation like Nigeria that has high global reckoning.”

He said: “I feel very sad, even uncomfortable, that this is happening in Nigeria at this time. Certainly, FIFA and CAF would not be happy with us, and may go for strong sanctions against our country.

“This is a period that every stakeholder should focus hard on the qualification series for the 2018 FIFA World Cup, with our country having missed out on the 2017 Africa Cup of Nations competition.

We also have the Olympics football tournament and some women tournaments coming up.

“This is not the time for distractions. I want to specially appeal to Chris Giwa to sheathe his sword and allow peace to reign.

We will gain nothing other than a FIFA suspension from

these activities. I regard him as a big stakeholder because he has been investing in the game. But in football, there are

mechanisms for dispute resolution.

“FIFA, CAF and NFF have it in their different Statutes that you don’t take football matters to

announced that the encounter would be concluded the following morning.

When played resumed yesterday, Ndifreke, the national U-23 star and younger brother of Godwin who also scored against Lobi last season, made the game safe for the Warriors in the 49th minute when he connected Anthony Okemmiri’s right wing cross with a diving header which left Lobi’s goalkeeper, Okemute Odah helpless. Both sides effected the maximum substitutions but no more goals were scored.

Abia Warriors, the only unbeaten side in the league this season, now occupy the second position on the log with 20 points and also have a match in hand against Warri Wolves.

back to FIFA, and onwards to CAS. That is the proper way to go,” the former governor of Kano and Benue states concluded.

NFF secretariat in Abuja...yesterday

…FIFA Monitoring Situation in Nigeria World football governing body, FIFA, has written the Nigeria Football Federation (NFF) to acknowledge that it is aware of the development as regards the Jos High Court ruling of last Friday.

Acting Secretary General of FIFA, Markus Kattner, said yesterday in an email to the NFF President, Amaju Pinnick, that according to articles 13 and 17 of the FIFA Statutes, all member

associations have to manage their affairs independently and with no influence from third parties.

“In addition and according to article 68 of the FIFA Statutes, recourse to ordinary courts of law is prohibited unless specifically provided for in the FIFA Regulations.

“Further-more, it is the duty of each member association to ensure that these provisions are

Masters: Willet Ends England’s 20-year Major Wait

NPFL: Effiong Brothers Lift Abia Warriors to Second Spot The Effiong brothers, Godwin and Ndifreke, scored in each half yesterday at the Umuahia Township Stadium to help Abia Warriors FC beat visiting Lobi Stars of Makurdi 2-0 to go second on the log of the Nigerian Professional Football League (NPFL) The week 11 encounter, which was suspended by the referees 24 hours earlier because of a heavy downpour which had rendered the pitch unplayable, was only 12 minutes old the previous day when Godwin nodded Abia Warriors in front.

The heavens then opened up and after 35 minutes of play the centre referee from Lagos State Omowaiye Segun after due consultations with the match commissioner and other officials,

ordinary courts. It is there, clearly spelt out. If Giwa is dissatisfied with the verdicts he received earlier, he can still take the case

Jordan Spieth (left) assisting Danny Willet to wear the Green Jacket yesterday after his victory at the 2016 US Masters Danny Willett became the first Englishman to win a major in 20 years since Sir Nick Faldo.

The 28- year- old native of Yorkshire rose on the back of a back-nine meltdown by American Jordan Spieth to win the year’s first major by three strokes after grossing the score of five-under 283.

He played a bogey free final round of 67 to win his first Masters in second attempt.

But the manner he did it is akin to the way Faldo broke the heart of Australian Greg Norman, who allowed a six-shot lead to evaporate on the final day of the 1996 event.

Willett is a slightly built, averagelooking bloke with a wispy mustache who is impressively accomplished on the European Tour-four victories and a world ranking inside the top 10 comebut likely was unrecognizable before the week to all but the most ardent American golf fan.

Spieth, 22, led the Masters for a record seven consecutive rounds, and when he was five strokes up with nine holes to play he couldn’t possibly have fathomed that a couple of hours later he would be slipping the green jacket onto another man.

implemented by its members and possibly take sanctions against those which fail to respect these obligations,”observed the statement from Zurich.

In the light of the above, FIFA warned that the decision of the Jos High Court, if implemented, would likely be considered as an interference in the internal affairs of the NFF and the case would be brought to the highest authorities of

FIFA for consideration of sanctions, including the suspension of the NFF. Kattner recalled that the plaintiff in the same Jos High Court case already filed an appeal in relation to the same matter with the highest judicial sport authorities, the Court of Arbitration for Sport (CAS), and the said appeal was dismissed on May 18, 2015.

Kiptoo, Njeru Top List of Okpekpe Race Elite Cast Kenyan duo of Edwin Kiprop Kiptoo and Polline Wanjiku Njeru top the cast of gold level running men and women elite athletes who will be competing for the $15,000 top prize on offer at the IAAF bronze label fourth Okpekpe International 10km Road Race next month in Okpekpe in Edo State.

Kiptoo who ran 1:01:21 to place ninth at last month’s IAAF/ Cardiff University World Half Marathon Championships in Wales will lead into Okpekpe three other men who are gold level elite runners while Njeru will also head the cast of three other women who are also of gold level rating.

“We also have other elite athletes who are of silver level running confirmed for the race,” said Spokesman for the race, Dare Esan.

“The IAAF requirements for the Okpekpe race is that we should have elite athletes who are of bronze level ratings because of its bronze label status but we want to elevate the status of the event to silver next year hence the need to

go beyond the requirements for a bronze label race,” he said and listed some of the other gold level running athletes confirmed for the race.

“We have Morris Munene Gachaga from Kenya who ran a gold level 27:27.0 time in Casablanca, Morocco just recently as well as the duo of Ethiopia’s Alemu Hungegnaw and another Kenyan, Simon Cheprot who is on the waiting list to replace fellow country man Teshome Mekonen who pulled out because of injury.’

“For the women, we have such top-class athletes as Pascalia Chepk.

Kipkoech from Kenya, Maryane W. Wanjiru also from Kenya and Ethiopia’s Buzunesh G. Gudeta confirmed for the race.

“There is also Edith Celimo from Kenya who is third on the 2016 IAAF top list of performers with 31:07 achieved early this month in Brunssum, a town in the province of Limburg in the Netherlands.”

CHAMPIONS LEAGUE Real Madrid v Wolfsburg Man City v PSG

T H I S D AY TUESDAY APRIL 12, 2016

47

TR

Tuesday April 12, 2016

UT H

& RE A S O

N

Price: N150

MISSILE SOKAPU to el-Rufai

“We were both amazed and concerned at the religious ratio of 70 per cent Muslims to 30 per cent Christians that he gave on national TV. This is because, based on the 2006 census, there was no question asking Nigerians their religious leaning. So it came as a shock that Governor el-Rufai could carelessly and recklessly give the ratio of the two major religions in the state without any empirical evidence.” – The Southern Kaduna Peoples Union (SOKAPU) challenging Kaduna State Governor Nasir el-Rufai to produce empirical evidence to authenticate his claim that Muslims constitute 70 per cent of the population of the state.

eniola.bello@thisdaylive.com

@eniolaseni 08055001956

How We All, Depleted the Foreign Reserves

I

t was a chance encounter. But then a disagreement on the Buhari administration handling of the economy, or rather its (mis) management of the forex regime, developed into an interesting conversation on the Nigeria situation. The sparring partners? One is a businessman whose firm has extensive interest in civil engineering, construction and medical supplies, and who has been described as the man who hijacked a former governor in a Southwest state from his godfather. And the other is a senior journalist with a social conscience.

For the purpose of this article, let’s call the one Tee, and the other Kay. Tee: My Comrade, do you support this administration’s refusal to devalue the Naira?

Kay: Of course, I fully support the foreign exchange regime in place. There’s no reason why the government should succumb to the blackmail of those who want the Naira devalued.

Tee: Oh! I shouldn’t forget you’re a socialist. I hope you’d allow me to show that you are mistaken. The best thing for the economy right now is the devaluation of the Naira. As you very well know, we run an import dependent economy. The only export product from which we receive foreign exchange is crude oil, the price of which has crashed to less than $40 per barrel. When crude oil price was over $100 per barrel during the immediate past administration, President Goodluck Jonathan increased the minimum wage. Today, however, most state governments are having difficulties paying salaries. Companies are laying-off workers. Factories are closing down. With job losses worsening the unemployment situation, crime would only increase. Critical investors, because of the inflexible exchange rate regime, have bailed out of the country.

The result? The CBN (Central Bank of Nigeria) is the primary source of foreign exchange. And because of the depletion of the foreign reserves, the CBN is unable to meet demand, and has therefore been forced to ration. The economy, which was growing 6-7% some three to four years ago, is shrinking as growth is no more than 2%. And the situation will only get worse.

The government needs to grow this economy. And in the circumstance in which we have found ourselves, Naira devaluation is the surest route to growing the economy. With devaluation,

CBN Governor, Godwin Emefiele

government will earn more on the Dollars from crude oil sales. The states would have the required revenue to pay salaries and meet their obligations to businesses.

Workers would be empowered to spend.

Companies would have the necessary resources to revive their operations, carry out expansion and employ new hands. Investors, knowing that with cheap Naira they are bound to make money, would naturally return to the country. And the logic of business greed is that, for every one dollar profit, an investor would most likely bring in $10 with the hope of making more profit.

The CBN would therefore no more be the primary source of foreign exchange.

The country’s reserves would rebound.

In any case, Nigeria should not concern itself with the Dollar. It is not our currency.

We have no control over it in any shape or form. Even our singular export – crude oil – we have no control over the processes of its exploration, production and sales. We accept what our partners, the multinational oil companies, say they have produced and sold because we do not have the knowledge and expertise to carry out the exploration and production on our own.

We have no way of even knowing when we are short-changed. So why peg the Naira against the Dollar or against any currency for that matter? Why not allow our currency find its level within market fundamentals, permitting only minimal regulation in the country’s best interest?

Kay: Interesting stuff! Brilliantly articulated! Listening to you reminded me of Dr. Victor Odozi, one time Deputy Governor of the Central Bank of the Nigeria when the Babangida administration introduced SAP (Structural Adjustment

Programme) in the mid 80’s. You also reminded me of the economic wizards in the Obasanjo administration when they sold us privatisation and deregulation. You do remember that the Naira was once stronger than the Dollar. However, since the 80’s, there has been an incremental devaluation of the Naira. Odozi predicted in 1986 that with devaluation, the forex market would be just like other market having free sellers and buyers. At that, the exchange rate was less than one dollar to N10. Today, at one dollar to N200, the story remains the same. At every point, the argument has always been the same – growth, job creation, etc. In the first 16 years of this democratic dispensation, three different presidents of the PDP (Peoples Democratic Party) administration had packaged the same thing in different formats, but the country has only witnessed likely jobless growth. We might as well try something different.

Tee: It wouldn’t be fair to say there has been no growth. There has been growth, 6-7% for more than a decade under the PDP. Kay: Mere statistics. We didn’t see the impact of the much celebrated growth in the human condition.

Tee: The problem is us, you and me.

We’ve allowed our country to become a dumping ground for every product under the sun. We import rice and chicken and clothes. When I was growing up in the 60’s and 70’s, rice used to be only on our Sunday menu. Uncle Ben’s rice that was imported at the time was only affordable by the very rich. Today we consume rice imported from many countries in Asia.

That is our foreign reserve. Look at the clothes we, all, are wearing. They are imported. Our shoes and wrist watches are imported. Our cars are imported. We so love champagne that we are said to be one of the highest consumers of the product globally. We eat our foreign reserve as rice and chicken, drink it as choice wine, wear it as clothes and shoes, drive it as cars, and fly in it as private jets. We cannot continue to live recklessly and not pay the price one way or another.

Kay: We have been unable to feed and clothe ourselves because of the very policy you are espousing. It is the periodic devaluation of the Naira over time that has made it cheaper to import than to produce here. That was the reason all the thriving textile factories of the 70’s and

80’s in Kaduna and Kano had to close down. That was the reason the Peugeot Automobile of Nigeria and Volkswagen Nigeria could not continue to assemble their brands in the country. That is the reason most Nigerian money men in Corporate Nigeria are no more than traders and rent seekers.

Tee: The issue you’ve raised has nothing to do with Naira devaluation. It is a problem of law and order. If there’s a restriction or prohibition on the importation of rice and chicken, how do these products find their way into the country? It is a question of law and order. How do banned textile materials and furniture equipment flood the Nigerian market? It is an issue of law and order. It is not enough to attribute to smuggling, the ready availability of banned products in the country. Rice and chicken and textile materials and furniture are not smuggled using a man’s wallet or a woman’s handbag. They are smuggled in with heavy duty trucks. Which serious country allows its territory to be turned into a dumping ground for all manner of goods in the name of smuggling? How many Customs officers have been arrested, prosecuted and convicted for aiding or conniving with smugglers? Why do men and officers of Customs bribe their way to be posted to border posts?

Law and order is perhaps the country’s biggest problem. When politicians and government officials have lined up in their garages between 10 to 20 SUVs, the cost of which is clearly above their legitimate income, it is an issue of law and order.

When those elected to serve us, after four or eight years in office, buy properties in London and Washington DC and Cape Town and Dubai, in addition to their mansions in Lagos and Abuja and their country homes, it is an issue of law and order. Were all those properties measured against their tax assessment forms and necessary questions asked, they would think twice before embarking on such primitive acquisitions. Why should the resources of the country be deployed to subsidize the rich?

At the end of the animated debate, Tee could not persuade Kay to buy into the Naira devaluation formula. Both, however, agreed on one thing – there is an urgent need to give law and order a fresh approach. For me, I return to the original question, should the Naira be devalued or not, dear reader?

Printed and Published in Lagos by THISDAY Newspapers Limited. Lagos: 35 Creek Road, Apapa, Lagos. Abuja: Plot 1, Sector Centre B, Jabi Business District, Solomon Lar Way, Jabi North East, Abuja .

All Correspondence to POBox 54749, Ikoyi, Lagos. EMAIL: editor@thisdaylive.com, info@thisdaylive.com. TELEPHONE Lagos: 0802 2924721-2, 08022924485. Abuja: Tel: 08155555292, 08155555929 24/7 ADVERTISING HOT LINES: 0811 181 3086, 0811 181 3087, 0811 181 3088, 0811 181 3089, 0811 181 3090. ENQUIRIES & BOOKING: adsbooking@thisdaylive.com