Tuesday May 17th 2016 by THISDAY Newspapers Ltd

FG, Labour Meeting Deadlocked, to Continue Parley Today

Unions insist on new minimum wage, reconstitution of PPPRA board House in rowdy session, asks labour to shelve strike Oil rises to six months high Iyobosa Uwugiaren, Damilola Oyedele, Chineme Okafor, Paul Obi in Abuja and Ejiofor Alike in Lagos with agency report The meeting held last night between the federal

government and organised labour aimed at averting threats of a crippling nationwide strike by the Nigeria Labour

Congress (NLC) and Trade Union Congress (TUC) to protest the removal of the subsidy on petrol and the

consequential hike in the price of the commodity ended in a deadlock, as both sides remained unyielding but have

agreed to continue the meeting today at 3 pm. Sources who participated in the meeting said the unions

UBA Leads as CBN Forex Sales to Banks Drop to $131m… Page 6

informed the government team that they would only rescind their resolve to embark on the nationwide strike if it accepted their demands for a Continued on page 8

Tuesday 17 May, 2016 Vol 21. No 7691. Price: N250

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Obama Mulls Visit as US Okays Sale of 12 Attack Aircraft to Nigeria Proposal awaits congressional approval fight with Senator Leahy, others Senator Iroegbu with Agency Report As United States President Barack Obama tinkers with a trip to Nigeria in July, the US government has said it is

poised to sell up to 12 light attack aircraft to Nigeria. The decision on arms sales is coming less than two years after the US blocked the sale of American-made Cobra attack helicopters to

Nigeria from Israel because of human rights violations in the country’s prosecution of the war against Boko Haram. A report in the New York Times on Sunday said the sale was part of efforts to support

Nigeria’s fight against the Boko Haram terror group. But the pending sale of the Super Tucano attack warplanes — which would require congressional approval — is already coming

Dangote: I’m in Business Not Just to Make Money, But to Help Africa Africa’s richest man and the

President of Dangote Group, Alhaji Aliko Dangote, has stated that he’s not in business solely to make money, but is just as interested in developing Africa and humanity, hence his philanthropic works through his foundation. He equally said that labelling Nigeria corrupt based on past misdeeds undermines the efforts of President Muhammadu Buhari to rid the country of graft, and called on leaders of countries where stolen assets are hidden to assist in repatriating the stolen funds and support the federal government’s

anti-corruption drive. Dangote, who spoke in an interview on THISDAY’s sister cable news network, Arise News, also observed that the anti-corruption fight was so intense that he could be arrested if found wanting. According to him, “A lot of people just have an impression of Nigeria based on what they have heard from the media. This is very wrong. Nigeria might be ‘fantastically corrupt’ but that was in the past, not now. “There is a difference between was and is. President Buhari is doing his very best to rid Nigeria of corruption.

There are no limits. I am sure that if I am found wanting tomorrow, nobody is going to save me, everybody will face his own music. I think the president is doing well and he needs our support. “That is why the call for the return of stolen assets should be supported. If a corruption case is established everything should be done to return the assets to the owners. “If you remember the Abacha loot that people keep talking about, up till now we are still struggling to repatriate the funds since Continued on page 6

White House, State Dept brace for

Dangote

under criticism from human rights organisations that say President Muhammadu Buhari has not done enough to stop the abuses and corruption that flourished in the military under his predecessor,

Goodluck Jonathan. According to the New York Times, “Officials at the White House, the State Department and the Pentagon have been Continued on page 6

TUESDAY MAY 17, 2016 T H I S D AY

Simple banking

T H I S D AY TUESDAY MAY 17, 2016

TUESDAY MAY 17, 2016 T H I S D AY

T H I S D AY TUESDAY MAY 17, 2016

TUESDAY, may 17, 2016 • T H I S D AY

PAGE SIX

UBA Leads as CBN Forex Sales to Banks Drop to $131m Obinna Chima The Central Bank of Nigeria (CBN) last week sold a total of $130,755,294.59 to 14 commercial banks, four merchant banks and the Bank of Industry (BoI). The amount was however lower by $5,283,163.58, compared with the $136,038,458.17 the banking sector regulator allocated to the financial institutions in the preceding week. The amount is expected to reduce further going forward, following the new fuel price regime excluding the funding of importation of petroleum products from the official foreign exchange market. Returns on forex utilisation published by the financial institutions last week showed that for the first time since THISDAY started reporting their returns, United Bank for Africa (UBA), with $18,500,803.50 got the highest allocation from the

central bank. Forex returns published by the pan-African bank showed that it sold dollars to 224 customers last week. These were made up of individuals and corporates importing raw materials, industrial items and for the payment of school fees abroad. Of the 224 customers on its list, Dangote Sugar Refinery Plc was its biggest, as it bought $6 million for the importation of Brazilian cane raw sugar. Also, Stallion Motors Limited which bought $1,082,132; NFE Industries Limited - $1,454,269.80 and IATA - $1,500,000, were some of the other institutions that bought huge amount of dollars from the bank. Coming in second place was Stanbic IBTC which was allotted $17,859,696.51. Just like previous weeks, the publication by Stanbic IBTC showed huge amounts of forex purchased for capital exportation from

the equities, bonds and money markets. In all, 134 customers bought the greenback from the bank. FirstBank of Nigeria Limited was allocated $14,215,272.40 to occupy the third place. The bank, which returns on forex utilisation showed that it sold dollars to 651 customers, also revealed that Dangote Cement Plc purchased $2 million from the bank for the importation of machinery spare parts. Like the preceding week, Zenith Bank Plc retained the fourth place with a total allocation of $13,236,651.70. Its returns showed that it sold the greenback to 278 customers. Of this number, its biggest customer was Tiger Branded Consumer Goods Plc which purchased $1,285,774.87. Diamond Bank Plc with $11,489,227 occupied the fifth position, just as its publication showed that it sold the greenback to 177 customers. Its biggest

customer was A-Z Petroleum. Standard Chartered Bank got $10,730,263 to hold on to the sixth position. A total of 222 customers purchased the greenback from the bank. Also, Guaranty Trust Bank Plc (GTBank) was allocated $8,918,388 to occupy the seventh place. The CEO of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, told THISDAY at the weekend that the NSE was concerned about the volume of foreign portfolio investors' exit and the potential for capital flight from the market. “We are concerned, we are monitoring the situation, we are talking to investors – both domestic and foreign – we have ramped up our efforts in terms of government relations to report what we are seeing and to look for new ways and solutions that would continue to make our market attractive to all investors,” he explained.

RETURNS ON FOREX UTILISATION FOR MAY 9-13 RANKING 01 02 03 04 05 06 07 08 09 10 11 12 13 14 01 02 03 04

BANK

AMOUNT ($)

UBA Stanbic IBTC FirstBank Zenith Bank Diamond Bank Standard Chartered GTBank Access Bank FCMB Union Bank Keystone Bank Sterling Bank Wema Bank Ecobank MERCHANT BANKS Coronation FSDH FBN RMB Bank of Industry TOTAL

18,500,803.50 17,859,696.51 14,215,272.40 13,236,651.70 11,489,227 10,730,263 8,918,388 7,378,555.12 6,145,168.22 4,677,813.45 4,051,873.20 4,005,467.18 3,013,941.86 513,915.79 2,499,614.91 1,057,231.06 1,000,000 767,849.19 693,562.50 130,755,294.59

OBAMA MULLS VISIT AS US OKAYS SALE OF 12 ATTACK AIRCRAFT TO NIGERIA bracing for a fight with congressional Democrats, in particular Senator Patrick J. Leahy of Vermont, over the sale of the planes.” Senator Leahy is the sponsor of the Leahy Law passed by the US Congress barring the US government from selling American arms to countries’ militaries with a history of human rights abuses. Last year Buhari while in the US, criticised the law, which was used to block the sale of the Cobra helicopters by the Israelis to the Nigerian government in 2014. The proposed sale reflects the warming of the relationship between the Nigerian and American militaries, which had frayed under Jonathan. The Pentagon often bypassed Nigeria in the fight against Boko Haram, choosing to work directly with neighbouring Cameroun, Chad and Niger. In addition to citing corruption and sweeping

human rights abuses by Nigerian soldiers, American officials were hesitant to share intelligence with the Nigerian military, saying Boko Haram had infiltrated it. That accusation prompted indignation from Nigeria. But that was before Buhari, a former Nigerian Army major general, defeated Jonathan in an election last year. Since coming into power, Buhari has devoted himself to rooting out graft in Africa’s largest economy. He has fired a number of Nigerian military officers accused of corruption, and American military officials say they are now working closely with some of their counterparts in Nigeria, said the NY Times. The Obama administration is also considering sending dozens of Special Operations advisers to the front lines of Nigeria’s fight against Boko Haram, an insurgency that has killed thousands of civilians

in the country’s North-east as well as in Cameroun, Chad and Niger. Buhari has also pledged to investigate allegations of human rights abuses and has said he would not tolerate them. A move to sell the Super Tucano attack aircraft to Nigeria, first reported by Reuters, would continue the détente between the two militaries, administration officials said. The Super Tucano, a turboprop aircraft, is designed for light attack, counterinsurgency, close air support and reconnaissance missions. It could prove useful as the Nigerian military tries to clear Boko Haram out of the Sambisa Forest, which is believed to hold large numbers of the terrorists, as well as kidnapped girls and women. The administration has not made a formal decision to send a notification to Congress, but

a senior administration official said he expected one soon. President Obama is considering a trip to Nigeria in July. But already aides to Senator Leahy, the sponsor of a human rights law that prohibits the State Department and Pentagon from providing military assistance to foreign militaries with poor human rights records, have expressed concern. “We don’t have confidence in Nigeria’s ability to use them in a manner that complies with the laws of war and doesn’t end up disproportionately harming civilians, nor in the capability of the US government to monitor their use,” said Tim Rieser, a top Leahy aide. “The United States is committed to working with Nigeria and its neighbours against Boko Haram,” said David McKeeby, a spokesman for the State Department’s Bureau of Political-Military Affairs. “The Nigerian security

DANGOTE: I’M IN BUSINESS NOT JUST TO MAKE MONEY, BUT TO HELP AFRICA 1998. I personally believe that things have changed dramatically and everyone now knows that you can no longer do things and get away with them.” On the way out of the country’s foreign exchange crisis, he said the situation has to be managed, as Nigeria does not have enough reserves to support all the demand for forex as it did in the past. “The situation in Nigeria is what we have to manage, we have to manage the resources that we have because we do not have the foreign reserves to support all the import demands as it used to be. “I think the demand side is what we have to look at because a lot of things are being imported into the country. We cannot have a population of close to 200 million and is dependent on importation. “However, those days are gone forever. What we need to focus on are things that would add value to our economy

and put less demand on the foreign reserves. “What that means is that we need to diversify the Nigerian economy, which we are doing. There are a lot of things in the pipeline which nobody is talking about; people are only looking at the bad side of things, which I think is wrong. “But let me tell you what we are doing at Dangote Group: today we are building the single largest refinery in the world. The refinery has the capacity to produce about 650,000 barrels of crude oil per day (bpd), which is very crucial for Nigeria. “First of all, there will be consistent supply of product when that is built, as there will be no shutdown. Nigeria only consumes about 450,000bpd, which means we will have an extra 200,000bpd to export. “We also have a petrochemical plant which is for polypropylene production of about 1.3mmt, which means Nigeria will be the highest exporter of petrochemical

products which will improve our capacity. “We are also doing 3 million tonnes of urea and ammonia which are used for fertiliser. Most sub-Saharan African countries import their fertiliser needs but we plan to change that with what we are doing. “Again, we have two gas pipelines of about 250 kilometres each from the Niger Delta. Each would transport 1.5 billion standard cubic feet of gas per day (bscf/d). Both will give us 3bscf/d and that will generate 12,000MW of power and it will also be connected to the West African Gas Pipeline project. So we are doing a lot which is not being reported, “he said. On why he is in business, he said: “We are not in business just to make money, our aim is to develop Africa and to help humanity. That is why we are doing a lot of philanthropic work, which we started as far back as 1993. “The (Dangote) Foundation

was not established today, it was established a long time ago. When you look at our businesses, most of our investments are futuristic in nature where we want to take Nigeria and Africa to the next level.” Elaborating on his partnership with the Bill and Melinda Gates Foundation, Dangote added: “What we are doing with Bill Gates is routing immunisation, polio vaccination and primary healthcare, it is a partnership. “The other thing that we did recently is to look at nutrition because we have a lot of children with stunted growth in Nigeria. We are actually number three in the world in that regard. “To eradicate it, the Bill and Melinda Gates Foundation donated $50 million and the Dangote Foundation donated $50 million. This will enable us fight malnutrition in the next four to five years taking us to 2020. So we have been very successful in this regard.”

forces and regional forces from Cameroun, Chad and Niger have made important progress in pushing Boko Haram out of many towns and villages of northeast Nigeria and the broader Lake Chad basin region.” General Mark A. Milley, the US Army chief of staff, is attending a meeting of top African military officials, including from Nigeria, in Arusha, Tanzania, this week. Aboard his flight on Saturday, General Milley declined to comment on whether Nigeria’s human rights record had improved enough to warrant the sale, but said one of the reasons he was attending the meeting was to learn more about the African militaries with which the Pentagon is working. Consideration of selling the attack aircraft to Nigeria is a sharp turnabout from two years ago, when the United States blocked the sale of Americanmade Cobra attack helicopters to Nigeria from Israel, amid concerns about Nigeria’s protection of civilians when conducting military operations. That infuriated the Nigerian government led by Jonathan at the time, and Nigeria’s ambassador to the United States responded sharply, accusing Washington of hampering the effort against Boko Haram. “Let’s say we give certain kinds of equipment to the Nigerian military that is then used in a way that affects the human situation,” James F. Entwistle, the American ambassador to Nigeria, told reporters in October in explaining the decision to block the helicopter sale. “If I approve that, I’m responsible for that. We take that responsibility very seriously.” Under Jonathan, the Nigerian military was accused by human rights groups of detaining and killing thousands of innocent civilians in sweeps of Boko Haram, a practice that Amnesty International said was continuing. This year, the military rounded up several hundred men and boys in arrests that

Amnesty, in a report it released last week, called “arbitrary, the hazardous profiling based on sex and age of the individual rather than on evidence of crime”. The report said 149 people had died this year in detention in the military’s Giwa barracks in Maiduguri, a city that has been a staging ground for the fight against Boko Haram. Among the victims were 11 children under age 6, including four infants, Amnesty said. The prisoners most likely died of disease, starvation, dehydration or gunshot wounds, the report said. In a news release, the Nigerian military called the report “completely baseless, unfounded and source-less with the intent of denting the image of the Nigerian Armed Forces”. Sarah Margon, the Washington director at Human Rights Watch, disagreed. “Indications that the US is going to sell attack aircrafts to Nigeria is raising concern, given the absence of meaningful reform within Nigeria’s security sector,” Ms. Margon said. “The US must make clear that if the sale is to occur, critical steps, not just rhetorical commitments, on core human rights concerns must be an integral component for approving the sale.”

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PAGE EIGHT

Businessman, Kola Aluko, Sells His Bel-Air Mansion for $21.5m Kola Aluko, a businessman with interests in the oil and gas sector, has sold his BelAir, Los Angeles mansion, as Nigerian and European authorities investigate him for a series of money-laundering and fraud-related crimes, the Los Angeles Times has reported. Aluko sold the home last week for $21.5 million, taking a $3 million loss after purchasing the sprawling residence in 2012

for $24.5 million. Aluko, 46, sold the residence in an off-market transaction using a limited-liability company. Off-market sales in real estate refer to the sale of property without any form of public advertising. Aluko’s former home – a contemporary-style showplace in the 700 block of Sarbonne Road, Los Angeles – was designed by architect Paul

McClean and built in 2011. The property sits on more than an acre, has a gated entrance, a subterranean garage and a 132-square-foot infinity-edge swimming pool, among other features. For a long time, Aluko had been linked as a business associate of Nigeria’s former petroleum minister, Diezani Alison-Madueke, who is also currently under investigation by

Nigerian and British authorities for money laundering and embezzlement. Shortly after she became oil minister in 2010, AlisonMadueke awarded Atlantic Energy, co-founded by Aluko, the contract to fund the operational costs in four oil blocks held by the Nigerian Petroleum Development Company (NPDC), the exploration and production

arm of the Nigerian National Petroleum Corporation (NNPC). In return for providing funding to NPDC, Atlantic Energy was to lift the crude produced from the oil blocks, sell it, and thereafter pay NPDC its share of profits. But allegations have been rife that Atlantic Energy did not remit a huge chunk of the proceeds from the sale of the crude oil.

When the House convened, members for the PDP who were bent on scoring a political point against the administration and the ruling All Progressives Congress (APC), which championed the fuel price hike protests in 2012, began waving flags and singing “all we are saying, save Nigeria”. The disruption lasted for about 22 minutes, during which Speaker Yakubu Dogara; Majority Leader, Hon. Femi Gbajabiamila; Minority Leader, Hon. Leo Ogor; and Hon. Chief Whip, Hon. Alhassan Ado Doguwa, held a private meeting. Deputy Speaker, Hon. Yussuff Sulaimon Lasun, on the other hand, busied himself trying to placate the protesting members. Eventually, the House dissolved into an executive session after order was restored. THISDAY gathered that the lawmakers, in the closed-door session, which lasted for over an hour, agreed to play safe by neither backing nor opposing the removal, but to wait for unfolding developments. However, several lawmakers, THISDAY was informed, were said to have spoken on the need for the House to be bold and back the removal of fuel subsidy and call for the urgent implementation of palliative measures. It was on this basis that the House resolved to ask labour to shelve the strike pending the report of the ad hoc committee, which would be submitted next week. The lawmakers eventually constituted a 10-man committee to interface with the unions, civil society organisations and other stakeholders in the oil and gas industry. Chaired by Doguwa, the committee is expected to submit its report in five days. Dogara explained that the lawmakers would further deliberate and take a position on the removal of subsidy after the ad hoc committee submits its report. The committee was set up after the interactive session with Kachikwu, who disclosed that one of the immediate benefits of the subsidy removal was that state governments would find it easier to pay salaries. In his presentation to the lawmakers, Kachikwu disclosed that 65 licences would be issued for modular refineries as part of efforts to boost local refining. He dispelled reports of the non-engagement of the labour unions by the federal government before the announcement of the new regime for petrol imports and the hike in the price of the commodity. The minister also explained that the price band of N135 to N145 was necessary, as it

is the responsibility of the government to ensure that the pump price of petrol does not rise astronomically. “There is never a right time to do this. Where we are today is a time thrust on us, it is inevitable,” Kachikwu said, adding that there would be no huge price differentials at NNPC stations and independent marketers to avoid chaos.

Aluko

FG, LABOUR MEETING DEADLOCKED, TO CONTINUE PARLEY TODAY review of the minimum wage, improvement in the palliatives to cushion the effects of the fuel price hike on the citizenry, and reconstitution of the board of the Petroleum Products Pricing Regulatory Agency (PPPRA). A source said that though the government team acknowledged that their demands were genuine, they informed the union representatives that their insistence on a review of the minimum wage was ill-timed and could not be met due to the precipitous drop of government revenue brought on by low oil prices. He explained, however, that the government representatives promised that certain palliatives had been included in the 2016 budget to cater to the most needy in the society, but this was rejected by the labour unions who pressed ahead for their demand for a revision of the minimum wage despite repeated reminders that the federal and several states government were finding it next to impossible to meet the current wage bill of civil servants. The meeting which kicked off at about 6.30 pm had in attendance Mr. Ayuba Wabba, the factional President of NLC, Mr. Joe Ajaero, President of National Union of Petroleum and Natural Gas Workers (NUPENG), Mr. Igwe Achese, and President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr. Olabode Johnson. On the government side, the team was led by the Secretary to the Government of the Federation (SGF), Mr. Babachir Lawal; Minister of Labour and Employment, Senator Chris Ngige, President of the TUC, Mr. Bobboi Bala Kiagama, NLC General Secretary, Mr. Peter Ozo-Eson, and the acting General Secretary of Trade Union Congress, Mr. Simeso Amachree, among others. Also in attendance were the Edo State Governor, Mr. Adams Oshiomhole who was there to mediate between both sides, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, Minister of Budget and National Planning, Senator Udoma Udo Udoma, and the Special Assistant to the President on National Assembly, Sen. Ita Enang, among others Emerging from the meeting, which held in the SGF’s office till after 11 pm, Babachir informed journalists who had laid siege on the venue of the meeting that the “discussions were frank and honest”. He said they decided to adjourn to today to resume talks at 3 pm. Also commenting,

Oshiomhole, who was once a president of the NLC and had led many strikes against fuel price hikes, tried to impress it on the unions that they would need to be flexible. He said: You’ve organised strikes and those strikes have not helped in increasing wages. So it is time to make tough choices. The president is socially concerned but the fundamentals have changed.” On his part, Wabba said: “We discussed those issues, including the demands we made. Then government presented its position, but as you are aware, our organisations are very democratic so we need to go back and consult before our meeting tomorrow (today).” At a separate briefing, Achese said: To us, it’s not a surprise that government is considering deregulation, but our concern is: can we survive it? “The present minimum wage is not sustainable. Government should have the political will to put smiles on the faces of the people through palliatives; until that is done, we will continue to fight, because Nigerian workers must see the dividend of what they voted for. “However, whatever gains we realise from this deal, we will be able to invest it in building refineries.”

FG Defends Fuel Price Hike Prior to the meeting between the federal government and labour, the Minister of Information and Culture, Alhaji Lai Mohammed had requested for the understanding of Nigerians and appealed to the unions to sheathe their swords. Speaking to the press yesterday, the minister who was accompanied by the Group General Manager of the Nigerian National Petroleum Corporation (NNPC), Alhaji Garba Deen, said this was not the time for any action that would further worsen the nation’s economy. He said the situation that warranted the removal of subsidy on petrol was dire, saying it was a global crisis and that the policy was designed to permanently solve fuel shortages. “For instance, the United Arab Emirates, the third-biggest oil producer in OPEC, has become the first country in the oil-rich Persian Gulf to remove transport fuel subsidies. “In addition, the country has announced that with effect from August 1, 2016, fuel prices will be deregulated,” the minister stated. “Also, in response to fiscal pressure caused by the fall in crude oil prices, OPEC’s top

oil producer Saudi Arabia has announced a plan to raise fuel prices. You can now see that this is indeed a global problem,” Mohammed said. He added: “The truth is that the NNPC does not have the resources for, nor is it designed to meet this increase in supply. The result is the crippling fuel situation across the country. “Pushed to supply 90 per cent of the products required for domestic consumption, the NNPC has continued to utilise crude oil volumes outside the 445,000 barrels per day allocated to it, thereby creating major funding and remittance gaps into the Federation Account. “As I said earlier, there is no provision for subsidy in the 2016 budget. The erstwhile petrol price of N86.50 gives an estimated subsidy claim of N13.7 per litre, which translates to N16.4 billion monthly. There is neither funding nor appropriation to cover this.” The minister further explained that the renewed insurgency and pipeline vandalism in the Niger Delta region have also drastically reduced crude oil production to 1.65 million barrels per day, against 2.2 million barrels per day planned in the 2016 budget, saying that this had further reduced earnings to Federation Account. Describing the negative effects of the new policy as temporarily, Mohammed said that under the new price regime, the PPPRA and DPR would be further empowered to ensure a level playing field and strict compliance with market rules by all stakeholders and consumer protection He said the liberalisation of downstream oil sector would allow marketers and any Nigerian entity willing to supply petrol to source for their forex and import the commodity to ensure availability of products in all locations of the country. He also assured Nigerians that the federal government had included palliatives in the 2016 budget that will help to cushion the effect of the petrol price increase.

House in Rowdy Session The federal government also got support from the House of Representatives, which at its emergency session held yesterday on the new fuel price regime, called on the NLC to shelve its planned strike. But the resolution was reached after a protest led by members of the opposition Peoples Democratic Party (PDP) ahead of the admittance of Kachikwu to the lower chamber.

IPMAN Ready to Import Also weighing into the new policy on fuel imports, the Independent Petroleum Marketers Association of Nigeria (IPMAN) yesterday said it had entered into a mutually beneficial business arrangement with several foreign partners to import about 15 cargoes of petrol into Nigeria within the next couple of weeks. IPMAN said the arrangement would enable it access petroleum products from the partners, adding that it had secured their backing to keep fuel stations operated by its members supplied with petrol going forward. It however said the current opposition to the federal government’s removal of subsidy on petrol by the labour unions was serving as an impediment from realising this plan. “We have foreign partners who we will use to bring in products and we have an arrangement to bring in between 10 and 15 cargoes in the coming weeks,” said the General Secretary of IPMAN, Alhaji Danladi Pasali in a phone conversation with THISDAY in Abuja. Pasali was responding to a question on how his members hope to source for forex to fund its imports. “We are waiting for our papers. We have not got the papers released yet and we are waiting for that before we can go out because it is now an open market. “It is because of this distraction of labour, otherwise, we would have started within the week. Labour however has to understand that this is the best way to go. If they don’t want this, what then is their solution so we can continue to bring in products? We don’t have to deceive ourselves on this,” he added. IPMAN’s statement came as the Nigerian Association of Road Transport Owners (NARTO) also expressed support for the policy removing the subsidy on petrol. NARTO said they were backing the government’s decision on the grounds that it will lead to the availability of petrol at service stations

across the country. A statement signed by the national president of the association, Kassim Ibrahim Bataiya, said that they had consulted with all their national officers and zonal chairmen immediately after the policy was announced and a consensus was reached in support of it. Bataiya said the policy would also engender competition among marketers, as was the case with diesel that was deregulated in 2007.

Oil Rises to Six Months High Meanwhile, crude oil prices yesterday hit a six months high as outages in Nigeria and Venezuela reduced exports to the international market, which has suffered a glut in the last 23 months. Brent crude futures rose by $1.22 or 2.5 per cent to $49.05 per barrel, just a few cents short of reaching $50 a barrel during yesterday’s trading, while US WTI futures rose by $1.44 or three per cent to $47.65. Crude futures have rallied for most of the past two weeks from a combination of non-OPEC supply outages, declining US production and virtually frozen inflows of Canadian crude after wildfires in Alberta’s oil sands region. Nigeria’s oil output has fallen to its lowest in decades after several acts of sabotage by a new militant group, Niger Delta Avengers (NDA), resulted in a drop to 1.65 million barrels per day (mbpd) from 2.2mbpd. Reuters reported that in the Americas, US officials also warned they were increasingly concerned by the possibility of an economic and political meltdown in Venezuela amid low oil prices, where crude production has also been falling due to power shortages. The disruptions triggered a U-turn in the outlook for the oil market from Goldman Sachs, which had long warned of global storage hitting capacity and of another oil price crash to as low as $20 per barrel. “The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected,” Goldman said. “The market likely shifted into deficit in May ... driven by both sustained strong demand as well as sharply declining production,” the investment bank added. While Goldman sounded more positive on the market than it did before, it also cautioned that at around $50 a barrel, supply could flip back into a surplus in the first half of 2017 if exploration and production activity picked up later this year.

TUESDAY, MAY 17, 2016 • T H I S D AY

NEWS

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

Confusion Trails Arrest of N’Delta Militants by Military

Those apprehended are Chevron staff, says Ijaw community leader Tompolo alleges intimidation DHQ disagrees, says arrested suspects not oil company staff

Senator Iroegbu in Abuja and Emmanuel Addeh in Yenagoa There was confusion yesterday over the purported arrest of five suspected members of the Niger Delta Avengers (NDA) by the Nigerian military in connection with the destruction of several oil and gas platforms in the region. While the Defence Headquarters has confirmed the arrests, leaders of Gbaramatu, an Ijaw community in the Niger Delta, kicked against the rounding up of the persons, insisting that the “suspects’’ were Chevron contract workers on duty at the time. The five persons whose names were given as Samuel Emiko, Alfred Timede, Kelvin Mordi, Henry Arogboritse and Isaac Edemde, THISDAY was told, were on routine patrol of oil facilities along the Utunana flow station in Warri South West local government of Delta State, when they were picked up by the military. The quintet, it was learnt, were employed as surveillance guards under the Chevron’s Pipeline and Facilities Surveillance Programme (PFSP) which has been in operation for several years. The said PFSP was reportedly contracted to a firm which then employed the services of youths from the host communities of Ijaw and Itsekiri. While three of the workers now in custody of the military were said to be from Omadino, an Itsekiri village in Warri North, the rest two were said to have come from Kokodiagbene, an Ijaw community, hosts to Utunana Flow Station in Gbaramatu kingdom. When contacted yesterday, Chief Godspower Gbenekama, an Ijaw leader and Spokesman of the community noted that they were vehemently against the

intimidation and indiscriminate arrest of innocent persons. The community leader alleged that after the soldiers arrested the suspects with their speedboats bearing the inscription of PFFP and with a Chevron logo on it, they moved to Kokodiagbene and invaded buildings and tortured youths in a bid to force them to accept their membership of the militant group. He called for the immediate release of the workers , describing the action of the military as a ploy to intimidate the people of Gbaramatu. “Three of the workers are from Itsekiri (Omadino) while two are from Kokodiagbene, an Ijaw community. They were arrested on their routine check of oil facilities within Utunana flow station with a speedboat which had Chevron’s name boldly written on it. The boat they were caught in also belongs to Chevron. “They were employed under the Chevron’s Pipeline and Facilities Surveillance Programme (PFSP) through the Ijaw/ Itsekiri Regional Development Committee GMoU with host communities,” he said. He added that the security operatives were looking for a way to cover up their inadequacies, after they ‘goofed’ several times. He urged the authorities to ignore a popular businessman/ politician from the Itsekiri stock, whom he accused of inducing the military action because of his alleged differences with Mr Government Ekpemupolo, aka, Tompolo, who’s currently on the run after he was declared wanted by the federal government . Meanwhile, in a statement titled: ‘The Continuous Military Siege on Me and Gbaramatu Kingdom Unfortunate,’ yesterday, Tompolo lamented that his people were being punished for the crimes they were innocent of.

“I wish to humbly express my disappointment and displeasure with the federal government and the Nigerian Military on the continuous siege on me and Gbaramatu Communities under the guise of looking for members of the nascent Niger Delta Avengers. “It baffles me that the Nigerian military has refused to believe me that I am not part of the group and its activities as contained in several media statements. I am obviously a victim of circumstance in this matter because of my case with the Economic and Financial Crimes Commission (EFCC),’’ he said. Tompolo swore that he could not resort to the destruction of oil facilities because of “trumpedup charges’’ against him by the

EFCC. “If not for the common insinuation that the Nigerian Judiciary is on trial, why would my case with the EFCC become the greatest issue in Nigeria today, when there are so many important things to talk about?,’’ he queried. Like his kinsman, the ex-warlord also accused the Itsekiri businessman/politician of arm-twisting the authorities by the ‘unfounded claims’ that he was behind the Niger Delta Avengers group, when according to him, there is no single proof to back the claim. However, the Defence Headquarters has said it would be too early to name the suspected members and possible leaders of the new

militant group, NDA who were recently arrested by the Joint Task Force (JTF) in Warri, Delta State. The Director of Defence Information (DDI), Brig-Gen. Rabe Abubakar, in response to THISDAY inquiries, said that those behind the recent attacks at the oil facilities in the region would be unmasked at the appropriate time. Abubakar called for patience, saying that the issue at hand is of national interest that requires painstaking investigation. According to him, the shielding of the suspects’ identities would be crucial towards getting more information needed to apprehend the masterminds of the NDA.

He said: “The names will be supplied at an appropriate time. Please we advise that we should be patient with us. “We want to advise that this is not a matter that should be rushed as it is an issue that has to do with national interest, which require diligent investigation with a view to unravel more information.” In the same vein, the Commander of JTF Operation Pulo Shield, Maj-Gen. Alani Okunlola, has called for calm and understanding from members of the public. Okunlola, who responded to THISDAY inquiries about the recent operations, noted that “its still too early as investigation is ongoing.”

MEDIATORS

Edo State Governor, Adams Oshiomhole (left), and Minister of Labour and Employment, Dr. Chis Ngige, stepping out from a meeting with the Vice President, Professor Yemi Osinbajo, on the fuel price hike crisis at the Presidenttial Villa, Abuja.... yesterday GODWIN OMOIGUI

Higher Electricity Tariffs, Fuel Prices, Imports Push Inflation to 13.7% Average unofficial price of petrol increases to N162.82/litre James Emejo in Abuja The Consumer Price Index (CPI) which measures inflation rose further to 13.7 per cent in April compared to 12.8 per cent in March and 11.4 per cent in February, the National Bureau of Statistics (NBS) stated yesterday. It blamed the 0.9 per cent rise in the headline index on the lingering structural constraints which had continued to manifest in electricity rates and kerosene prices. The NBS said the impact of higher prices in petrol and vehicle spare parts contributed significantly to the core sub-index in April. “These items as well as other imported items continued to have ripple effects across many divisions that contribute to the core. The index increased by

13.4 per cent in March, roughly 1.2 per cent points from rates recorded in March,” it stated. According to the CPI figures for April, which was released yesterday by the statistical agency, higher rate of increase relative to March, was reflected in faster increases across all divisions which contributed to the index with the exception of restaurants, and hotels division which increased, though at a slower pace for the third consecutive month. The food index increased by 13.2 per cent in April, up by 0.4 per cent from rates recorded in March as all major food groups which contribute to the food sub- index increased at a faster pace driven by higher food prices in fish, bread and cereals, and vegetables groups, the NBS further noted.

It said increases in imported as well as domestically produced foods further resulted in a higher increase in the food sub-index in April. The “All items less farm produce” or core sub-index increased by 13.4 per cent in April or 1.2 per cent from 12.2 per cent recorded in March. On a month- on-month basis, the core sub-index increased at a slower pace for the second consecutive month in April, increasing by 1.7 per cent, 0.2 per cent lower from 1.9 per cent in March. According to the NBS: “In April, on a month-on-month basis, the highest price increases were recorded in the electricity, motor cars, fuels and lubricants for passenger transport (petrol), and liquid fuels (kerosene) groups. The average twelve

month annual rate of rise of the index was recorded at 9.6 per cent for the twelve- month period ending in April 2016, 0.5 per cent points higher from the twelve month rate of change recorded in March (9.1 per cent).” Meanwhile, the average monthly price paid by Nigerian households for a litre of petrol across the country increased to N162.82/litre in April compared to N135.69/litre in March, the NBS further stated. However, figures showed that on the monthly average, Nigerians have continued to purchase petrol above the official rate in the period under review. Reacting to the rise in the CPI, analysts at Lagos-based CSL Stockbrokers Limited, projected that in year-on-year terms, the inflationary pressure would remain in place for the

remainder of 2016. The firm in a report pointed out that the recent increase in fuel prices will also add to inflationary pressures via three channels. “Firstly, the transport component of the price basket (6.5 per cent) will see increases in line with fuel price hikes. Secondly, the input costs of businesses will rise and this will likely result in increases across a range of goods and services in the consumer price basket from food (50.7 per cent) to clothing and footwear (7.7 per cent). “Thirdly, the increase in demand for foreign exchange on the parallel market resulting from fuel importers sourcing their forex on this market will likely see depreciation of the parallel market, in our view,

adding to imported inflationary pressures. “Taking all of the above into account, we have made an upward revision to our yearend inflation forecast, which we now see coming in at 15.6 per cent year-on-year up from a previous estimate of 14.5 per cent,” CSL stated. On her part, the Managing Director/Chief Economist, Africa, Standard Chartered, Razia Khan, in a note yesterday, noted that going forward, the extent of pressure on the parallel market forex rate, as it tries to accommodate a higher level of forex demand would be important. According to her, given the less formal nature of the parallel market, its ability to attract sizeable forex inflows remains doubtful.

TUESDAY, MAY 17, 2016 • T H I S D AY

NEWS

PDP Resolves Crisis, to Proceed with Saturday’s Convention Party puts constitutional amendment on hold

Onyebuchi Ezigbo in Abuja The Peoples Democratic Party (PDP) has resolve to go ahead with its national convention as planned on Saturday. After weeks of turbulence which pitted the national leadership of the party and its governors against the Board of Trustees (BoT), the party yesterday resolved to set aside their differences in order to allow the national convention go on as scheduled on Saturday. However, as part of the conditions for a peace deal struck between the national leadership of the party and aggrieved members of the party’s BoT under the aegis of Concerned Stakeholders, the proposed amendments to the constitution is to be suspended. Surprisingly, the BoT meeting which witnessed a rowdy session, later ended on a peaceful note with all the combatants, including key actors in the concerned stakeholders’ group, agreeing to allow the convention to proceed and also accepted the plot for Sheriff to continue in office as the national chairman after the convention. Yesterday’s BoT meeting had personalities like the Deputy Senate President, Ike Ekwerenmadu, former Minister of Information, Prof. Jerry Gana, former Depity

Senate President, Ibrahim Mantu, Ojo Maduekwe, Senator Waleed Jibril, and former PDP national chairman, Vincent Ogbulafor were all at the meeting. While reading out the resolutions reached at the end of the BoT meeting, the newly elected Secretary of the board, Chief Ojo Maduekwe, said the leaders had to allow the superior consideration for unity to prevail. “Three decisions were agreed upon today, one is that in spite of the well-articulated proposals of many highly respected leaders and members that the convention should not go ahead as planned in order allow more time to resolve our differences, the consensus opinion, because we do not vote in the BoT because a divided BoT becomes a divided conscience. “By consensus, we decided to support the NWC and NEC’ s decisions that convention should hold on May 21. Secondly all the grievances which have been clearly and well-articulated by well-meaning leaders for the purpose of making the party stronger, not grievances pushed merely to smear the party or factionalize the party will be carefully looked into and in the process of political consideration, and engineering, we will see how to carry everyone along.

“We agreed to suspend amendments to the constitution. We resolved to ask the convention to rectify the motion to zone the presidential ticket to the north. When that happens the chairmanship will automatically be revert to the south in accordance with PDP zoning principle and tradition. “Finally, certain states where there were observed challenged during the congresses, which even the chairman and governors acknowledged, the party will look into what happened in those states and make amends. Although not expressly stated, the BoT appeared to have accept terms to allow the zoning arrangement which favoured incumbent national chairman to retain his position at the next convention.

When asked whether the BoT was able to extract a commitment from Sheriff that he would willing step down whenever the party formally zones its presidential ticket to the north, Maduekwe said: “I believe the collective wisdom and collective honour of the leadership of the party will ensure that commitments are honoured.” Maduekwe who sounded reconciliatory in his speech, said that he does not agree that the BoT is a mere rubber stamp, adding that it would be a tragedy to allow the PDP to go under the present circumstance “Let me say very clearly that it has been a very active moment for the party and one should not be in any doubt that the BoT is a door

mart rubber stamp, far be it. “So we have moved away from the brink and are ready to unite ourselves and we are happy to announce that all our discussions today centered on party unity. We have moved away from the brink and we are a stronger party ready now to be a reinvented PDP. Prof. Jerry Gana who was accused of incurring a debt of N500 million unbehalf of the party through a loan obtained from Sky Bank, used opportunity to explained that he and his committee on PDP campaign fund raising used the said amount to organise several dinners meant to raise money. He said was neither a signatory to the account of the party nor was he alone in the

committee as he has other national officers of the party, like the National Financial Secretary and Treasurer were in his team. According to Gana, it is the NWC that should be blamed for not honouring the terms of the loan to pay back the loan to the bank as stipulated. Earlier, the PDP BoT had gone into an election select of them to fill the vacant positions of chairman and secretary. At the end of it all, former Minister of the Foreign Affairs, Chief Ojo Maduekwe was elected as the new Secretary to the board, while Senator Waheed Jibril who had been acting chairman was endorsed as the substantive chairman of the body.

Passengers Face Flight Cancellation, Delays over Scarcity of Aviation Fuel Chinedu Eze Again, hundreds of passengers were stranded at various airports in the country yesterday when they could not board their flights as scheduled due to scarcity of aviation fuel. Since last weekend, the scarcity of the product became severe leading to cancellation of flights by some airlines and delays. Last Sunday, Arik flight billed for Abuja from the Sam Mbakwe Airport, Owerri was cancelled and passengers out of frustration became unruly and nearly manhandled the airline officials. The passengers were said to have obstructed another Arik flight from the airport to Lagos and at the end of the fracas, the airline still airlifted those billed for Abuja but later decided to go to Lagos. But spokesman of the airline, Banji Ola, said before the time for the flight, Arik sent messages to the passengers notifying them about the cancellation because of non-availability of aviation fuel, known as Jet A1. Also yesterday, Air Peace flight from Owerri to Abuja was delayed for about three hours because the airline could not source fuel for the flight but later Oando agreed to rescue the airline by feeding the aircraft with the product. For over four weeks airlines have experienced disruptions in their flights due to inadequate supply of Jet A1, which has adversely affected the airline, the passengers and the nation’s economy. THISDAY gathered from an

operator that the oil marketing companies now ration the product because it could not go round and only strive to maintain their contract with foreign airlines by making sure they supply products to them first. But since the scarcity started, most foreign carriers get their supply from outside the country and only top up when they land in Nigeria. This is to ensure that the scarcity did not disrupt their operations, but the local airlines need more of the product and feel the pang when the marketers could not meet their need. For example, Arik Air requires about 1.2 million litres of the product for its daily operations, which involved about 120 flights. Meanwhile, it has been estimated that domestic airlines may be losing over N500 million daily as the biting scarcity of aviation fuel forces airlines to cancel 50 per cent of their flights as the product is rationed by oil marketers. Inside source told THISDAY that domestic carriers generate about N2 billion daily as ticket sales and the scarcity has cut down about 25 per cent of their operation as cancelled flights, while about 50 per cent are delayed, while waiting for fuel delivery and the 25 per cent are largely early morning flights that leave as scheduled. THISDAY also learnt that the earlier would have been losing more than the aforementioned amount if not that there is general reduction of passenger demand because of the economic downturn.

FACTS BEHIND THE FIGURES

L-R: Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar N. Onyema; Chief Executive Officer , Seplat Petroleum Company Development, Mr. Austin Avuru; and Chief Financial Officer, Seplat, Mr. Roger Brown, at the presentation of facts behind the figures, subtitled ‘Blazing the Gas Trail’ by Seplat at the NSE in Lagos...yesterday

Ambode: Lagos Can Now Share from 13% Derivation $400 million committed to developing Aje oil field Gboyega Akinsanmi Lagos State Governor, Mr. Akinwunmi Ambode, yesterday said the state had officially joined the league of oil producing states in the country with the discovery of crude oil off Lagos coast by an indigenous oil firm, Yinka Folawiyo Petroleum Company Limited. By implication, the governor disclosed that the state would henceforth start benefiting from 13 percent derivation due to oil producing states in line with the provision of section 162(2) of the 1999 Constitution. He made the remark yesterday when the management of Yinka Folawiyo Petroleum Company Limited led by its Group Managing Director/Chief Executive, Mr. Tunde Folawiyo paid him visit at Lagos House, Ikeja. But the governor noted that Lagos “has become an oil producing state by the provision of

Section 162(2) of the Constitution. By virtue of this, Lagos will start to partake from 13 percent derivation that is due to oil producing states. “So, we officially declare Lagos State as an oil producing state. We notify the federal government by this action that we will be sharing out of 13 percent derivation. So all we need do is to apply and then we join.” Ambode said the discovery of Aje oil “has not only placed Lagos in the history books as the first state outside the Niger Delta to become an oil producing state, but has also opened up a new page for revenue generation in the state. “It also means that additional revenue will come to the state. We would have more resources to provide infrastructure for Lagos residents. This is what we want other investors and businessmen to emulate. “Beyond the issue of profit, you are actually creating impact on

people without them necessarily knowing that it is actually coming from a venture like this that you have embarked on,” he said. He said the resilience of the Yinka Folawiyo Petroleum Company has shown the possibilities and opportunities for investors and businessmen willing to commit their resources to boost local production. “I want to commend what you have done, it is a sign that you believe so much in Lagos State. I want to congratulate you, I want to showcase you as a very good example of a dogged entrepreneur, as someone who believes in Nigeria because that’s what you epitomise here. “The federal government has always said that we all need to look back inwards and start to do things for ourselves. Spending 25 years to be able to get to this stage and get something productive shows a lot about your belief, tenacity and doggedness.

“I want to recommend you to every other Nigerian investor that there is still greater hope for Nigeria and with the likes of you, I do not see any reason why any Nigerian needs to be afraid because you have just shown by this indigenous discovery that anything is possible in Nigeria.” At the meeting, Folawiyo disclosed that a whopping sum of $400 million was committed to developing its Aje field located in Block OML 113 offshore Lagos coast. He added that the current status of the oil well “has the capacity to produce at least 12,000 barrels per day, with a possibility to increase to 25,000 to 50,000 barrels per day in the nearest future. Folawiyo said the discovery of crude oil in Lagos that took over 25 years had gone a long way to show the possibilities achievable if governments continues to lend support to indigenous investors and companies.

T H I S D AY TUESDAY MAY 17, 2016

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T H I S D AY TUESDAY MAY 17, 2016

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T H I S D AY • TUESDAY, MAY 17, 2016

COMMENT

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

YET ANOTHER PRICE HIKE The petrol price hike is ill-timed, argues Prince Ifeanyi Onochie

“The two enemies of the people are criminals and government, so let us tie the second down with the chains of the constitution so the second will not become the legalised version of the first” – Thomas Jefferson

n Wednesday, May 11, 2016, the federal government announced a 67% increase in the pump price of petrol - from N86.50 per litre to N145.00 per litre, purportedly for the purposes of eliminating subsidies on the product and creating enough room for all-comers to import the product. Given the parlous and near comatose state of the Nigerian economy, the widespread nature of unemployment, suffering, disenchantment, deprivation and the consequent hunger-induced violent extremism, this particular increase is arguably the most insensitive, ill-timed, audacious and ill-advised in the history of petroleum products prices increase. Suddenly, as it suits the whims and caprices of government, the logic of reduced international crude oil price translating to reduced petroleum products prices in Nigeria no longer holds. Regrettably, this again shows how successive governments, at all tiers, treat Nigerians with contempt, in flagrant disregard of their electoral promises. Government is about improving welfare and providing social benefits for the people and not about profit. Nigerians are currently without electricity, potable water, primary healthcare and security. Nigeria is currently ranked 169 out of 189 nations surveyed on the ease of doing business index, as investors are wary of policy somersaults and inconsistencies. Nigerians were still patient and highly hopeful that their government, as promised, would take strategic steps to safeguard the interest of the suffering masses before it would contemplate deregulating the downstream petroleum sector in any form or manner. Government promised to ramp up local refining capacity and ultimately production; and increase the number of NNPC retail outlets and conclude its planned restructuring to make it more productive and efficient. To date, none of these was effected and not minding the fact that petrol impacts the pricing structure of every other commodity in Nigeria, government to the shock of Nigerians went ahead to unilaterally increase its pump price. Nigerians reserve the right to feel betrayed by the consistent failure of government to deal sincerely with them, and keep promises made. This trend must stop! The National Association of Seadogs, Pyrates Confraternity is very worried that with the price hike, the federal government may have abandoned Nigerians to their fate with respect to availability of petroleum products. Government cannot lay claim to deregulation since the market has not been allowed to determine the price of petroleum products. Would the government claim to have deregulated the downstream oil sector or removed oil subsidy and still bear the bridging cost of petroleum products across the country under the Petroleum Equalisation Fund (PEF)? Deregulation entails government ceasing to dictate prices, so the

NIGERIANS RESERVE THE RIGHT TO FEEL BETRAYED BY THE CONSISTENT FAILURE OF GOVERNMENT TO DEAL SINCERELY WITH THEM, AND KEEP PROMISES MADE

purported removal of subsidy while still fixing pump prices under any guise is hardly deregulation. We understand that increase in pump prices of petroleum products is not the same as deregulation, which as an economic concept, does not always translate to a price increase. It is, therefore insensitive of government to increase pump price of petrol while Nigerians are still struggling with the increase in electricity tariff; it is unconscionable to increase the pump price of petrol when the workers’ minimum wage remains the same; it is ill-advised to increase the pump price of petrol without effectively engaging the populace. Nigerians deserve better from their elected leaders and governments. It is equally worrisome that due to the reported paucity of foreign exchange, government may have abdicated by predicating its policy to make petroleum products available to Nigerians on the parallel ‘black’ market. In an oil producing nation like ours, we firmly believe that our energy and focus should be on revamping and improving our local refining capacity and production rather than on increasing importation of petroleum products. We however foresee hope should the government decide to retain the N86.50 per litre pump price at its NNPC Mega Station retail outlets as a palliative to the masses while this policy of mass importation by all-comers is experimented with. However, if government has directed the importers to the parallel ‘black’ market to source forex to import and sell at N145/litre, should government which sources its own forex from CBN now also ‘profiteer’? That will be an unfair and unacceptable trade practice that would surely disrupt the market and product supply in the immediate future. NAS believes that with prudent management, using crude oil countertrading or ‘swapping’, government would not only ensure steady supply of refined products in the interim but also minimise the predictable corruption that goes on between CBN executives, commercial banks and marketers associated with scarcity of forex. If the downstream oil sector must be deregulated, government must in addition to the aforementioned put the social safety net structures in place that would help it control and absorb the initial price shocks. Beyond this, it must learn to be open, transparent and sincere in communicating its policies to the people. Governance entails accountability, transparency and citizens’ participation. Government must understand that no policy succeeds without the buy-in of the citizens. A situation where it chooses to remain mute and acts unilaterally in policy formulation and implementation is at best disruptive. The goodwill and trust of the Nigerian public may be continually squandered by government if it persists in not acting in reciprocity by providing good governance. The social contract between a people and its government remains clear and must subsist. Finally, government needs to quickly review this policy and reassure Nigerians. It is the least it can afford at this time. Onochie is NAS Cap’n, National Association of Seadogs, Pyrates Confraternity

PLEASE BEAR WITH US

got to the Nnamdi Azikiwe International Airport, Abuja at 12:10pm for an Air Peace flight scheduled to take off at 1:30pm. Travelling out of this airport has become a nightmare and a tragi-comedy all rolled into one. Only that this is no drama interspersed with different scenes but real life absurdity at its best.

Before getting to the airport gate, you encounter fierce looking armed men that cause a lot of traffic trying to fish out the Boko Haram terrorists that want to bomb the airport by asking you to wind your glass windows down for inspection. There must be something these trained official spot by this technique that ordinary unarmed citizens cannot discover. Once you scale this first hurdle, you drive through the gate and snake through the traffic inside the airport environs itself which normally can take upwards of 40 to 45 minutes. The real tragi-comedy is yet to unfold. Now I had to collect my boarding pass from Air Peace which is in the first building on the right as you meander through the airport. Recently in the bid to forestall terrorists attack and prevent unscrupulous elements from causing mayhem at the airport, the airport authorities in their “wisdom” have provided only one entry and one corresponding exit door for the hundreds if not thousands of passengers travelling through the airport and the numerous ‘protocol’ personnel who also need to access the building. What is befuddling is the fact that there are at least five or more doors that are just permanently closed. So passengers line up under the scorching sun with the queue sometimes stretching farther and farther away from the building. Suitcases are screened through the entry door with only one screening machine that is designed for carry-on luggage and less weighty travel material. I am sweating profusely and lamenting to my friend about the

Eriye Onagoruwa decries the inefficiencies that have become our way of life sheer absurdity of this exercise. He turns to me and says jocularly “if it is not difficult, it is not Nigeria”. I reflected on this statement and realised how apt it was. Things in Nigeria are just designed to take you one step forward and 10 steps backward. To amuse us even further, there is a poster of suspected and wanted persons hanging on one of the shut doors. Oh, did I mention that the screening machine is on top of a table that is supported by a stone as legs? The screening machine itself is obsolete and worthy of a museum relic. Does it occur to these inane officials that a suicide bomber can actually detonate a bomb either by just coming casually to the front of the building or opening a suitcase laden with dynamites? Does it occur to these officials if there is a fire outbreak or any form of emergency resulting in a stampede the sheer number of fatalities as a result of only one exit door can be mind boggling? My turn, then I pass my suitcase through the screening machine and finally queue up at the Air Peace counter for my boarding pass. Feat achieved, I come out of the door and walk past the building designated for international departures to the last building on the right which is used for local departures. Yet another queue and more absurdity. At this stage, one look at the line and the hot sun, I knew that I could not survive another queue. I walked up to one of the airport officials and explained to him that I had been screened at the first building and already had my boarding pass. He explained to me that as this was the only place for boarding passengers, I had to also go join the queue and be screened again. I told him I was not going to do that as I did not understand the rationale. I explained again that I had gone through a rigorous round of screening at the other building and could not contemplate joining the queue. He responded again as if I was hard of hearing: “Madam, as this is the

only entrance for boarding passengers you have to queue up again because all the other people on the queue have also been screened.” I told him flatly that I would not join the queue, coupled with the fact that at this time I was now running late and it simply did not make any sense to me. I asked why even the simplest of things had to look so complex and difficult simply because we are in Nigeria. For goodness sake, our airport is not even ranked among one of the world’s busiest airports and all these outdated and unintelligent security processes will not tackle the real challenges. I am certain even Brussels in the wake of its recent terrorist attack on its airport would employ less insensible methods. Okay I digress. Back to the long queue and my conversation with the airport official. When he saw how resolute I was on my refusal to join the queue, he escorted me to the door in order to speak with his colleague to allow me inside. I still asked him why they could not buy more screening machines or at least open up more doors to ease the process. He replied almost sadly “please bear with us Madam. In fact help us talk to government. We are just doing our job”. At this point, I asked myself who is the government? Who should I report to? Is the government the Minister of Transportation? Is the government the President of the Federal Republic of Nigeria who would probably be too busy attending to external affairs out of the country or the Vice-President who has also asked that we be patient and bear with this government. Is the government FAAN? Is the government the army officials who dressed in Scottish ensemble to welcome our president some time back? Who do I need to complain to in order to provide a less stressful means of carrying out this screening process? You have to laugh at the fact that we are forever jostling for foreign investors and if our airports are the first indications of what to expect in the country, you ask yourself if any serious and reasonable investor wants to go through so much

discomfort, witness such mediocrity and inefficiency and still want to invest in the country. Doing business in Nigeria is a like being in a war zone on its own. Nigeria with its policies demonstrates a country that is permanently at war with its citizens. “Please bear with me”. A nauseating phrase that has steadily crept into our national lexicon. It is a phrase that is used for multidimensional types of inefficiencies that go on in Nigeria. We are asked to bear with the airline when you board the aircraft and cooling units are not working due to operational reasons and be patient as once the aircraft takes off, the cooling units will start working (sadly this was my experience with Air Peace on this flight). We are asked to bear with the petroleum scarcity being experienced in the country as it is the handiwork of unscrupulous elements diverting the “barely enough” products to other neighbouring countries. What we cannot fathom or explain is how easy it is for the idle young boys on the road to get fuel in jerry cans to sell to people. However the average Nigerian and not-so-average Nigerian is terribly frustrated. Recently, while speaking with a reporter, a visibly irate driver said in Yoruba “Gbogbo woôn ye ki o kan kú. Ani ara mi, plus awon Aare, gbogbo eniyan ni Nigeria ye ki o kan ku” (All Nigerians should just die. Even myself, plus the president, everyone in Nigeria should just die”.)He had been at the NNPC filling station for two days to get fuel but was unsuccessful. He tried another filling station and was still unlucky. Perhaps nothing quite captures the present state of the average Nigerian citizen like the image posted on social media of a skeleton relaxed on a couch and waiting for “change and things to get better”. “If it is not difficult, it is not Nigeria”. Said light-heartedly but so trite and perfectly encapsulates the daily struggles of living in Nigeria. eriye@outlook.com

T H I S D AY • TUESDAY, MAY 17, 2016

EDITORIAL THE ELECTION OF KHAN AS LONDON MAYOR The election of Sadiq Khan holds lessons for Nigeria

s one of the world’s leading cosmopolitan melting pots, London has further distinguished itself with its recent choice of mayor by electing Mr. Sadiq Khan, a Moslem labour politician to succeed the boisterous Boris Johnson. It was a bold message to people across the world that intolerance cannot be a solution to a challenge that is common to all of humanity. Ordinarily, in a pluralistic society and an established democracy with a strong tradition of libertarian thinking such as the United Kingdom, the faith a politician professes ought not to matter so much as his preparedness for the challenges of the office he seeks. But we live in a different clime with novel challenges. A certain preoccupation with faith has therefore become central to global security and national harmony in many places. Between the last decade of the 20th century and the present, religious fundamentalism, especially one that claims its root in Islam, has become the central security challenge of the global order. At different times, variants of terrorist IN GIVING KHAN THEIR networks like Al MANDATE, THE PEOPLE Queda, ISIS and Boko Haram have emerged OF LONDON HAVE to posit a counter order DEMONSTRATED THE founded on sectarian NEED FOR PEOPLE violence and fixations TO RISE ABOVE with senseless martyrNARROW SECTARIAN dom. Consequently, CONSIDERATIONS IN concern with terrorism THE DISCHARGE OF THE has become central to BURDEN OF SUPERIOR political thinking and CHOICE campaigns in major nations. Similarly, Moslems in several countries have been typecast, profiled and generally discriminated against by mostly conservative politicians with an unclear agenda. In the run up to London’s mayoral elections, Mr. Khan was himself the victim of this type of subtle blackmail by his conservative Tory opponents. Senior Tory politicians from Mr. Khan’s opponent, Mr. Zac

Letters to the Editor

Goldsmith to Prime Minister David Cameron variously suggested that he was uncomfortably close to Islamic fanatics to be trusted to lead London. Yet, available records indicated that while Mr. Khan, as a human rights lawyer, may have represented some clients whom he himself has described as “unsavoury characters”, at no time has he defended Islamic fundamentalists or been on the side of terrorists. On the contrary, he ran a very rationalistic and credible campaign. His unstinted humanism and liberal mindset eclipsed his choice of faith. He came to the stage with a genuine commitment to the common good of Londoners. Also, unlike his opponent whose father was a billionaire, he comes from a middle class background.

C 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

entral to the contest for the seat of Mayor of London were the issues that have blighted the city as a global centre of freedom and diversity. These include rising house prices, congestion, rising public transportation costs, pollution, and the growing reputation of London as the repository and playground of questionable plutocrats from all over the world. Concerns over these issues cut across the people of London irrespective of faith, class, nationality and party affiliation. Sadly, these problems festered while the loquacious former mayor, Boris Johnson, busied himself more with grandstanding on his advocacy of Brexit as well as his ambition to become the next prime minister. At the end, the people of London were intent on electing a mayor who would tackle these issues and problems. It was precisely these concerns and issues that Khan’s campaign focused on in the course of the race. His victory in the election was therefore a vindication first of his sincerity of purpose and the politics of pragmatic relevance which he and his Labour Party have played in recent times. Most importantly, in giving Khan their mandate, the people of London have demonstrated the need for people all over the world to rise above narrow sectarian considerations in the discharge of the burden of superior choice which democracy places on us all. It is a lesson that will serve us in Nigeria as we seek to deepen our democracy and advance the common good.

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.

AN OPEN LETTER TO ICPC CHAIRMAN

t is a matter of serious concern to Nigerians that a respected government institution such as Independent Corrupt Practices and other Related Offences Commission (ICPC) can be faulted, tainted and discredited by some state governors who were purportedly adjudged to have diverted the federal government bailout funds meant for workers’ salaries and yet little or nothing has been done about it. Thus, Nigerians will not only frown at it but also resist any attempt to sweep the issue under the carpet. It will be recalled that President Muhammadu Buhari had last year approved the sum of N338 billion for 27 states that were unable to pay salaries. Some of the states were unable to pay over 10 months’ salary arrears and pensions. To ensure prudency and transparency, the ICPC in collaboration with Nigeria Labour Congress (NLC) promised to monitor the exercise in order to avoid mismanagement cum diversion of the funds which may definitely lead to industrial unrest across those states. Interestingly, Nigerians immediately took this promise to heart because of the unbridled regard they have for ICPC and went to sleep. However, the report issued by the ICPC, which was signed by Mr Mustapha Hussain on behalf of the commissioner, public enlightenment, showed that some states were found to still be owing salaries and pensions, an indication that the funds may have been mismanaged. According to ICPC, out of 27 benefiting states, the

commission was able to monitor and cover just 23 states. For example, in a particular South-eastern state, the ICPC alleged that out of the N26.8 billion bailout received from the Central Bank of Nigeria, over N6 billion was immediately transferred into certain account of two commercial banks which are not in any way related to salaries and emoluments as well as N21 million which was also paid into an unspecified account by the same state. According to the report, another state in the North central which received over N12 billion that was specifically meant for the payment of the salaries and pensions too, mysteriously paid over N70 million into the account of the office of the deputy governor of the state in double lodgments. Another state in the Southwest which got over N34.8bn as bailout fund only disbursed a part of it and still owing workers’ salaries till date which undoubtedly have grounded industrial activities within the state. The list goes on, from the North-east to North-west. The truth became glaring when the Economic and Financial Crimes Commission (EFCC) arrested the principal secretary to one of the state governors and two others who were described by EFCC as the director of finance and treasurer respectively. On the contrary, some of the accused states have defended themselves thereby faulting the commission’s claim not only to be untrue but lacked credence and demands that the

commission substantiates the respective claims. Because of these discordant tunes, Nigerians now found themselves at a crossroads, not knowing who to believe anymore even when the truth is so glaring. It is in this vein that Nigerians demands that the ICPC under your watch publish the details of the whole investigation as well as prosecute any culprit found. This will foster clarity of purpose between workers and state government as well as provide a transparent process that will eliminate gaps that often lead to rumour-mongering so as to protect ICPC image. Furthermore, going by your records of transparent prosecution of past government functionaries who were found culpable of similar offences, Nigerians also expect that unbiased judgment should be meted to any state found wanting in bailout funds. If not, the fight against corruption will be seen by Nigerians as one-sided and also one that respects cadres cum personalities. In conclusion, we cannot play the ostrich in a situation as critical as this. Nigerians over the years had unbridled regard and respect for an agency such as ICPC and should not be allowed to be taken to the mud. Anything short of this will be tantamount to loss of confidence and distrust which may not be easily regained in the near future. Kenneth C. Eze, Convener, #PatroniseNaijaToGrowNaija

project

WEEKLY PULL-OUT

‘KADUNA STATE HAS HA FULL COMPLIED WITH FULLY THE JUDGMENT ON FINANCIAL AUT A AUTONOMY UTONOMY UTONOMY FOR THE JUDICIARY’

17.05.2016

Kaduna State Attorney-General and Commissioner for Justice, Mrs. Amina Dyeris-Sijuwade

2/DASHBOARD

17.05.2016

Ex-parte Orders of Injunction Do Not Last Ad Infinitum PAGE 3

The Judiciary Will Enjoy Equity in the Allocation of Resources Says Gov. Yahaya Bello PAGE 4

Lagos Vows to Deal with Omo Oniles PAGE 4

HURILAWS Seeks Amendment to Electoral Act PAGE 4

QUOTABLES

‘Lawyers should be Prepared to Serve even the Downtrodden with their Knowledge and Expertise’ PAGE 5 ‘Our goal is to improve cooperation and coordination that is an essential element in strengthening the capacity of anticorruption agencies in Nigeria by developing a deeper, evidence-based understanding of the agencies mandate, responsibilities, competencies, capacity and outputs embedded in respect for rule of law and integrity.’ – Attorney General and Minister for Justice Abubakar Malami SAN

COLUMNISTS MICHAEL JONATHAN NUMA The word “Canvass” in legal parlance means to discuss thoroughly, to advance an issue, to examine a question in details. This column will attempt to critically analyse trending legal issues across several jurisdictions bordering on topics making rounds at the material time, ranging from judicial decisions to policy statements guided political simulations and socio-economic matters to statutory interpretations by commentators within and outside the legal profession, proffering constructive criticism based on different well thought out perspectives. The writer, Michael obtained his LL.B (Hons) and LL.M (Hons) from Delta State University and Queen Mary University of London respectively. He is a member of the School of International Arbitration London, Member of the Chartered institute of Arbitration UK, Member of the Chartered Institute of Patent Attorneys U.K. He is the Managing Associate of Messrs Karina Tunyan (San) & Co in F.C.T, Abuja. He is an Intellectual Property and a Private international law practitioner.

Illegal Mining: The Devil and the Deep Blue Sea PAGE 7

Herdsmen, Land Use and the Human Rights Question PAGE 10

Defences against Hostile Takeovers PAGE 11

The Nigerian Power Sector Reforms: A Forlorn Foray into Darkness PAGE 12

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

Ex-parte Orders of Injunction Do Not Last Ad Infinitum

iven its preservatory nature, an ex-parte order of injunction, is not intended to be a temporary victory to be used against the adverse party indefinitely. Rather, it is to last for a short period pending the determination of a motion on notice. However, by virtue of the provisions of Order 26 Rule 11 and 12 of the Federal High Court (Civil Procedure Rules) 2009 (the â&#x20AC;&#x153;FHC Rulesâ&#x20AC;?), a person affected by an ex-parte order of injunction may within seven days, apply for the order to be discharged and upon such an application, the order shall not last for more than 14 days thereafter or 14 days after the application has been argued. In the instant appeal, the Supreme Court reemphasized this position of the law, when it held that the interim orders obtained by the Appellant, had lapsed by effluxion of time.

Facts On 12 December 2013, the Appellant commenced an action against the Respondents by way of a Writ of Summons along with other originating processes at the Federal High Court, Lagos (the â&#x20AC;&#x153;trial courtâ&#x20AC;?). Simultaneously with the issuance of the writ, the Appellant applied for ex-parte orders of interim injunction against the Respondents. The trial court granted the orders of interim injunction on 13 December 2013 and adjourned the hearing of the interlocutory injunction to 27 January 2014. On 18 December 2013, the Appellant filed another motion ex-parte seeking an order to correct errors on the face of the interim orders granted on 13 December 2013, and this motion was granted on 23 December 2013. Subsequently, on 27 December 2013, the 1st Respondent filed an application for an order to discharge/ set aside the interim orders made on 13 December 2013 and amended on 23 December 2013. The Appellant opposed this application on the ground that same was filed outside the 7 days period prescribed by the FHC Rules. On 21 January 2014, the 2nd and 3rd Respondents filed an application challenging the jurisdiction of the trial court. The 1st Respondent also filed an application challenging the jurisdiction of the trial court on 24 January 2014. Meanwhile, when the suit came up in court, on 27 January 2014, the trial court extended the life span of the interim orders, on the ground that the condition precedent for its discharge had not been met. Dissatisfied with the order of the trial court extending the lifespan of the interim orders, the 1st Respondent appealed to the Court of Appeal, Lagos (the â&#x20AC;&#x153;Court of Appealâ&#x20AC;?). In its judgment, the Court of Appeal allowed the appeal on the ground that the interim orders of injunction made on 13 December 2013 as amended had expired and that there was nothing to preserve. Dissatisfied with the decision of the Court of Appeal, the Appellant appealed to the Supreme Court, wherein, it formulated the following five issues for determination: (i) whether the failure of the 1st Respondent to assist the registrar of the trial court to compile a comprehensive record of appeal did not render its appeal at the Court of Appeal incompetent; (ii) whether the Court of Appeal was right in holding that the 1st Respondentâ&#x20AC;&#x2122;s appeal was not an abuse of court process; (iii) whether the Court of Appeal rightly construed the Supreme Court decisions of EBHODAGHE v OKOYE (2004) 18 NWLR (Pt. 905) 472 and NDIC v CBN (2002) (Pt. 766) 272 on the inherent powers of the Court to protect its authority and dignity, even when an application challenging its jurisdiction was pending; (iv) whether the Court of Appeal rightly held that the ex-parte orders of injunction made on 13 December 2013, had automatically expired even in the absence of a valid application for discharge; (v) whether the Court of Appeal rightly declined to uphold the Appellantâ&#x20AC;&#x2122;s Respondentâ&#x20AC;&#x2122;s Notice, seeking the validation of the trial courtâ&#x20AC;&#x2122;s judgment. The Respondents filed their respective briefs of argument and formulated separate issues for determination. The Supreme Court, however, adopted the Appellantâ&#x20AC;&#x2122;s issues for determination, for the resolution of the appeal. Meanwhile, the Respondents, with the exception of the 1st Respondent, incorporated notices of preliminary objection in their briefs of argument. The 2nd and 4th Respondentâ&#x20AC;&#x2122;s preliminary objection challenge the competence of the Appellantâ&#x20AC;&#x2122;s ground 19 and issue number 2 distilled therefrom. By the objection the 2nd and 4th Respondents contend that the issue of abuse of court process is a fresh issue before the Supreme Court which was not properly raised at the Court of Appeal, as the Appellant only raised it in its letter of 17 April 2014, after the appeal at the Court of appeal had been adjourned for judgment. They submitted that the failure of the Appellant to obtain the leave of court before raising the issue rendered same incompetent. On their part, by their preliminary objection the 3rd and 5th Respondents challenge the competence of the appeal on the ground that the appeal was of mixed law and fact and the Appellantâ&#x20AC;&#x2122;s failure to obtain leave before filing the appeal, rendered the appeal incompetent. The Supreme Court agreed with the 2nd and 4th Respondents and accordingly allowed the objection and struck out ground 19 and issue number 2 in the Notice of Appeal and Appellantâ&#x20AC;&#x2122;s brief respectively. However, the Supreme Court declined to sustain the preliminary objection of the 3rd and 5th Respondents, on the ground that a mere blanket submission that the Appellantâ&#x20AC;&#x2122;s grounds of appeal are of mixed law and fact, without a proper

N. S Ngwuta , JSC

In The Supreme Court of Nigeria Holden at Abuja On Friday the 29th Day of January, 2016 Before Their Lordships Nwali Sylvester Ngwuta Mary Ukaego Peterâ&#x2030; Odili Olukayode Ariwoola Musa Dattijo Muhammad John Inyang Okoro Justices, Supreme Court SC.200/2013 Between Brittaniaâ&#x2030; U Nigeria Limited .... Appellant And Ëž Ă?Ă&#x161;Ă&#x2013;Ă&#x2039;Ă&#x17E; Ă?Ă&#x17E;Ă&#x153;Ă&#x2122;Ă&#x2013;Ă?Ă&#x;Ă&#x2014; Ă?Ă Ă?Ă&#x2013;Ă&#x2122;Ă&#x161;Ă&#x2014;Ă?Ă&#x2DC;Ă&#x17E; Ă&#x2122;Ă&#x2014;Ă&#x161;Ă&#x2039;Ă&#x2DC;ĂŁ Ă&#x201C;Ă&#x2014;Ă&#x201C;Ă&#x17E;Ă?Ă&#x17D; Ëž Ă&#x2019;Ă?Ă Ă&#x153;Ă&#x2122;Ă&#x2DC; Ă&#x201C;Ă&#x2018;Ă?Ă&#x153;Ă&#x201C;Ă&#x2039; Ă&#x201C;Ă&#x2014;Ă&#x201C;Ă&#x17E;Ă?Ă&#x17D; Ëž Ă&#x2019;Ă?Ă Ă&#x153;Ă&#x2122;Ă&#x2DC; Ă&#x2DC;Ă?Ë&#x203A; Ëž Ă&#x2039;Ă&#x153;Ă&#x201C;Ă&#x152;Ă&#x2039;Ă? Ă?Ă?Ă&#x;Ă&#x153;Ă&#x201C;Ă&#x17E;Ă&#x201C;Ă?Ă? Ă&#x2122;Ă&#x153;Ă&#x161;Ë&#x203A; Ëž Ă&#x153;Ë&#x203A; Ă?Ă&#x153;Ă&#x2014;Ă&#x2039;Ă&#x2DC;Ă&#x17E; Ă&#x2039;Ă&#x17E;Ă?Ă&#x2013; Ë&#x203A;Ë&#x203A;Ë&#x203A;Ë&#x203A;Ë&#x203A;Ë&#x203A;Ë&#x203A;Ë&#x203A;Ë&#x203A;Ë&#x203A; Ă?Ă?Ă&#x161;Ă&#x2122;Ă&#x2DC;Ă&#x17D;Ă?Ă&#x2DC;Ă&#x17E;Ă? Judgment Delivered By Nwali Sylvester Ngwuta, JSC

demonstration of same, does not necessarily make it so. Arguing the main appeal, on issue number one, the Appellant submitted that, paragraph 6 (b) of the Court of Appeal Practice Direction imposes a duty on an appellant in certain interlocutory appeals to assist the registrar of the trial court to compile the record of appeal, in order to ensure the compilation of a comprehensive record of appeal. The Appellant contended that the 1st Respondentâ&#x20AC;&#x2122;s failure to provide the required assistance resulted in the compilation and transmission of an incompetent appeal, which did not contain all the relevant processes. The Appellant relied on the case of N.A.A. v OKORO (1995) 6 NWLR (Pt. 403) 510 at 533. On issue number three, the Appellant submitted that irrespective of a pending objection challenging the jurisdiction of a court, where a court is faced with threat to its dignity and authority, such court has the inherent power to forestall such threat before deciding the objection. The Appellant submitted that the dignity of the trial court was under threat when the 1st Respondent invited it to declare that the interim orders of 13 December 2013, as amended on 23 December 2013, had lapsed by reason only of a pending motion to discharge same and therefore, the trial court, necessarily, had to clarify the status of the interim orders, regardless of the pending challenge to its jurisdiction. The Appellant relied on EBHODAGHE v OKOYE (supra), and submitted that the Court of Appeal erred in law in holding that the factual circumstances in the case and the instant case were dissimilar. On issue number four, the Appellant referred to Order 26 Rules 11 and 12 of the FHC Rules and submitted that the Court of Appeal was in error when it held that the ex-parte orders of 13 December 2013 was subsumed into the amended order of 23 December 2013, adding that, by the principle of relating back, the amended order dates back to 13 December 2013, when the original order was made. On this premise, the Appellant argued that the 1st Respondentâ&#x20AC;&#x2122;s application to discharge the interim order was invalid, having been filed outside the time prescribed by Order 26 Rule 12 of the FHC Rules. The Appellant urged the Supreme Court to hold that the Court of Appeal erred in its decision that the 14 days life span of the ex-parte orders under Order 26 Rule 11 & 12 of the FHC Rules, automatically expired even in the absence of a valid application for discharge.

On issue number five, the Appellant, whilst relying on the case of BOB-MANUEL v BRIGGS (2003) 5 NWLR (Pt. 813) 323, submitted that the Court of Appeal erred in law by discountenancing the Appellantâ&#x20AC;&#x2122;s â&#x20AC;&#x2DC;Respondentâ&#x20AC;&#x2122;s noticeâ&#x20AC;&#x2122;, since the said â&#x20AC;&#x2DC;Respondentâ&#x20AC;&#x2122;s noticeâ&#x20AC;&#x2122; complied with the form contained in the Court of Appeal Rules. The Respondents canvassed similar arguments in response to the Appellantâ&#x20AC;&#x2122;s submissions. On issue number one, they urged the Supreme Court to strike out the Appellantâ&#x20AC;&#x2122;s argument on this issue by reason of its inconsistency with the position canvassed at the Court of Appeal. They contended that, whilst the issue at the Court of Appeal was whether the Appellant had transmitted a valid record of appeal, in the instant appeal, the Appellant contends that the 1st Respondent failed to assist the registrar to compile the record. They relied on the case of AJIDE v KELANI (1985) 3 NWLR (Pt. 12) 248. They submitted further that, the Appellantâ&#x20AC;&#x2122;s complaint of lack of assistance is not a basis for challenging the competence of the record of appeal, as the intent of Rule 6 (b) of the Practice Directions does not require the Appellant to type set the record of proceedings. They further argued that a record of appeal bears with it, a presumption of regularity, and that a party who complains about its incomprehensiveness, ought to formally impeach the record in accordance with the laid down procedure. They relied on the case of PEREMOLIZE NIGERIA LTD. v GLOBE MOTORS HOLDINGS LTD (2007) LPER 4840. On issue number three, the Respondents submitted that the trial court was in grave error when it conducted its proceedings of 27 January 2014, notwithstanding the pending challenge to its jurisdiction. They distinguished the case of EBHODAGHE v OKOYE (supra), relied upon by the Appellants and submitted that unlike the factual circumstance in the said case, the Respondents herein were not guilty of contempt and the fact that the objection on jurisdiction was not ripe for hearing cannot constitute a good ground to proceed with the proceedings, without resolving the question of jurisdiction first. On issue number four, the Respondents submitted that the 1st Respondent filed its application to discharge the interim orders within the seven days period prescribed by the FHC Rules, as the said period began to run from the date of the amended order and not that of the original order, as suggested by the Appellant. They additionally submitted, whilst relying on the case of ROTIMI v Mc GREGOR (1974) 11 SC 133, that following the amendment of the original interim order, same was subsumed in the amended order and that the doctrine of relating back did not apply in the circumstances. They submitted further that the interim orders had automatically expired, since the application for its discharge was not taken within 14 days as prescribed by Order 26 Rule 12 of the FHC Rules. On issue number five, the Respondents submitted that the Appellantâ&#x20AC;&#x2122;s â&#x20AC;&#x2DC;Respondentâ&#x20AC;&#x2122;s noticeâ&#x20AC;&#x2122; was incompetent because, by the said â&#x20AC;&#x2DC;Respondentâ&#x20AC;&#x2122;s Noticeâ&#x20AC;&#x2122;, the Appellant sought to vary/ affirm a decision that was against it and thereby sought to present a different case from that presented at the trial court. In resolving the foregoing issues, the Supreme Court, on issue number one, construed the provisions of Order 8 of the Court of Appeal Rules and paragraph 6 (b) of the Practice Direction and observed that whilst under Order 8 Rule 2, both the Appellant and Respondent have a joint duty to settle the record, under paragraph 6 (b) of the Practice Direction, (applicable to interlocutory appeals, where time is abridged), the Appellant has an added duty to aid the registrar in the compilation of the record, whether or not the Respondent is present. This, the Supreme Court held, does not translate to the Appellant taking over the actual production of the record from the trial courtâ&#x20AC;&#x2122;s record book. The Supreme Court held further that in the absence of such assistance, it is only the registrar and not the Appellant that can complain. Additionally, regarding the issue of the comprehensiveness of the record of appeal, the Supreme Court took the view that both the court and parties are bound by the record of appeal which is presumed to be correct until otherwise proven and that if the record was incomprehensive as alleged, the Court of Appeal would have demanded a better record. The Supreme Court held that in any event, the Applicant failed to challenge the record through the right procedure, which is by affidavit evidence. The Supreme Court relied on the case of ADMIN. GENERA CRS v CHUKWUOGOR NIG. LTD (2007) 6 NWLR (Pt. 1030) 398. On issue number three, the Supreme Court, although acknowledging that a court has the inherent powers to protect its dignity and authority even during the pendency of an application challenging its jurisdiction, held that the 1st Respondent was not in contempt of the trial court as alleged, and there was, therefore, no threat to the dignity of the trial court. The Supreme Court adopted the decisions of the Court of Appeal to the effect that the factual circumstances in the cases of EBHODAGHE v OKOYE (supra) and NDIC v. CBN (supra) did not apply to the instant case as contended by the Appellant and that the trial court ought not to have proceeded with its proceedings of 27 January 2014, during the pendency of the challenge to its jurisdiction. On issue number four, the Supreme Court observed that by the provisions of Order 26 Rules 11 and 12 (1) & (2) of the FHC

CONTINUED ON PAGE 14

4/NEWS

17.05.2016

Centred to the Left - the Chief Judge of Kogi State, Justice Nasiru Ajanah briefing the Governor, Alhaji Yahaya Bello to his right at the premises of the State High Court, Lokoja during the courtesy call by the Governor recently

NBA National Publicity Secretary, Mr. Gbolahan Gbadamosi and President, American Bar Association (ABA) Paulette Brown at the 2016 Equal Justice Conference organised by ABA in Chicago US

The Judiciary Will Enjoy Equity in the Lagos Vows to Deal Allocation of Resources Says Gov.Yahaya Bello with Omo Oniles Yekini Jimoh in Lokoja The Governor of Kogi State, Alhaji Yahaya Bello has asserted that the Judiciary under his tenure will enjoy equity in the allocation of resources. The Governor who paid a courtesy call to the Chief Judge of Kogi State, Justice Nasiru Ajanah at the State High Court said the Judiciary will be autonomous in managing its finances and he will never trespass on its Official duties. "Neither will I send or permit any person to do so on my behalf or the Government’s. Just recently, 21 sets of Local Government Caretaker Committees took the Oath of Office in Kogi State. "We granted them their autonomy and promised them freedom from interference. The Judiciary does not need such assurances from us. It is constitutionally given that it has all of these, and more, as of right. "What might be different now is the abundance of political will that this Administration has to respect, and give effect, to those principles. We shall expect nothing in return other than that the Kogi State Judiciary be judicial and judicious in its dealings with us" he stated. According to the governor, he will find it singularly pleasing to sit and exchange thoughts with the members of the Judicial Arm of the Kogi State Government.

"On behalf of the entire Executive Arm of Government I assure you of our highest esteem always. The job that you do, the intricacies of which lie beyond the understanding of many a man, demand no less. We are grateful for your service my Lords. "When one sits to interact with Judges and Magistrates and other categories of jurists, even on routine occasions such as this one, there is still that inner voice that urges caution. That voice says, ‘tread with caution! These people have the power to commit people for contempt, whether in or out of Court’. "One is therefore glad today that he is confronted by eminent and level-headed jurists, law-lords who are versed in their calling and wise in the ways of the world. One can then be candid without fear of forfeiting his liberty. I shall be candid.” "On an occasion such as this, no two principles will ring louder than Separation of Powers and Independence of the Judiciary. I will settle that dispute very summarily right now: my Administration will respect both principles to the letter" he promised. Earlier, the Chief Judge, Justice Nasiru Ajanah thanked the Governor for the courtesy visit adding that the judiciary will continue to work hand in hand with the executive. Justice Ajanah who took the

opportunity to discuss some issues that affect the judiciary with the Governor stated that he will be glad if the Governor could meet some of their needs. According to him, the Federal High Court in a decision handed down on the 13th January, 2014 had enjoined or commanded the obedience of the said section of the Constitution. "I shall make a copy of that judgment available to Your Excellency. "In the real sense of the word, there is no need to fear that an independent Judiciary will constitute any danger or threat to the Executive. The fact is that we are all engaged in the business of ensuring that there is law and order in the society and that the welfare of the people is paramount. "We are not in competition but play a complementary role to each other. So the Judiciary is not a threat to the other arms of government" he said. According to Justice Ajanah, all Judges of superior Courts of record are entitled to official cars as the National Judicial Council will not approve the appointment of any Judge unless the cars for those Judges have been purchased and made available for their inspection. "These cars are expected to be changed every four years. However, we have had a problem with the issue of official cars for Judges. Cars were last bought

for Judges in 2009. "The last administration attempted to buy vehicles for Judges but succeeded in only buying thirteen (13) out of the twenty-eight needed. There is therefore an outstanding fifteen to be purchased for the rest Judges and Kadis. "I must mention the case of a particular Kadi that was appointed about two years ago and the NJC graciously allowed the appointment because I gave them my word that a new vehicle is awaiting collection by the Judge. However, we have been unable to fulfil that pledge as the last administration reneged on buying a vehicle for the Kadi. "The other Judges and Kadis who are yet to get any new cars have been suffering as their vehicles have become rickety and some have knocked engines and due to paucity of funds we have not been able to fix their cars or buy new engines for them" he mentioned. He therefore appealed to the Governor to also consider buying vehicles for the Chief Registrars, the Deputy Chief Registrars, the Secretary of the Judicial Service Commission and 61 Magistrates. "These Magistrates are saddled with the responsibility of handling most of the criminal cases that come to Court. They are therefore exposed to criminal elements who might have an axe to grind with them" he posited.

HURILAWS Seeks Amendment to Electoral Act Akinwale Akintunde Human Rights Law Service (HURILAWS), the human rights unit of Olisa Agbakoba Legal has identified certain areas of the Electoral Act 2010 and the 1999 Constitution for amendment. According to the human rights group, the proposed amendments if implemented will help to facilitate transparent and credible future elections in Nigeria. HURILAWS Senior Legal Programme Officer, Mr. Collins Okeke disclosed this last Wednesday at a media briefing on "Judicial Application of 2015 Election Laws in Nigeria". Okeke stated that the proposed amendments were informed by the decisions of the Supreme Court on some election petitions especially regarding the use of the card reader for accreditation,

among other things. He explained that the Electoral Act needs to be amended to incorporate and recognise the use of card reader reports as part of admissible evidence in proof of electoral malpractices such as over-voting in election petition tribunals. Okeke further stated that his group reviewed the 2015 general elections to critically examine the challenges that underscored the election process, the key legal issues that arose from those challenges and how they were determined by the election petition Tribunals and appellate Courts. According to him, interesting judicial decisions in the governorship election petitions of Abia, Akwa Ibom and Rivers States were specifically analysed with a view to identifying the legal puzzle that the Supreme Court

sought to resolve. He mentioned that Section 134 of the Electoral Act needs to be amended and reconciled with Section 285 of the 1999 Constitution to provide an exception to the time limit for the hearing and determination of election petitions where there is a stay of proceedings and where a higher court orders fresh hearings. “The Electoral Act, especially Section 137, needs to be amended to afford locus standi to the electorate to bring election petitions. However, tribunals may also be empowered to consider and summarily dismiss in chambers frivolous petitions and petitions on issues already being canvassed in another petition or which should be more appropriately canvassed by a party to the election,” he added. Other proposed amendments, according to the HURILAWS

Senior Legal Programme Officer include “an amendment of the Electoral Act to allow for voters’ accreditation and actual voting to take place simultaneously,” that will save time and engender greater credibility and transparency. “While it may be admitted that the 2015 general election produced better outputs than previous elections in Nigeria, there remain critical issues that need to be urgently addressed towards strengthening the credibility of the electoral process and the validity of its outcomes. Changes must inevitably be allowed to address not only the rampant challenges and difficulties experienced on election days, but also the drawbacks of the pre- and post-election stages.”

CONTINUED ON PAGE 6

Akinwale Akintunde The Lagos State government has reiterated its commitment to deal with land grabbers, popularly known as omo oniles, causing unrest in the State. The Lagos Attorney-General and Commissioner for Justice Mr. Adeniji Kazeem disclosed this last Friday at the 2016 Annual Ministerial Press Briefing of his Ministry held at the Bagaude Kaito Press Centre, Alausa Secretariat as part of the activities commemorating one year in office of the administration of Governor Akinwunmi Ambode. Mr. Kazeem stated that the State Government has set up a task force on the prohibition of land grabbers, adding that the state would no longer tolerate the illegal activities of land grabbers, as anyone found using such land grabbers to disturb public peace and illegally dispose people of their property would be prosecuted in accordance with the relevant criminal laws. The AG noted that the need to protect investors and maintain Law and Order led to the setting up of this Body which by implication will encourage litigation to ventilate legal claims rather than resorting to violence. Speaking on the establishment of the Special Offences Court, the AG stated that the state inaugurated the Special Offences (Mobile) Courts to deal with growing cases of traffic and environmental abuses, with a view to bringing sanity and civility in the conduct of residents. According to him, the Mobile Court has prosecuted 1,107 traffic and environmental offenders arrested by the Lagos State Environmental Sanitation and Special Offences Unit (Task Force) since inception in February, 2016. Mr. Kazeem added that the operation of these Mobile Courts have reduced the commission of these offences. Giving other statistics, Mr. Kazeem emphasised that 2,073 offenders have been sentenced to community service for various offences in the last year. He said the offenders got non-custodial punishments such as cleaning public buildings and sweeping, among others. ‘In addition, it allows offenders to serve their sentences in the community and out of jail or prisons, and this was part of the strategies to decongest the prisons’, he noted. Mr. Kazeem added that the Community service is already having a positive impact on the issue of overcrowding in our courts

and prisons. “I am pleased to inform you that the programme has continued to wax stronger in demonstration of the fact that the criminal justice system does not need to incarcerate offenders in order to be effective’. “With the community service option available to judges and magistrates, convicted offenders do not need to be sent to prison for every minor infraction of the law.” In the area of Public Prosecution, Mr. Kazeem stated that in the last year, out of the 1,209 police investigation files sent to the Director of Public Prosecution’s office for legal advice, the unit completed work on 940. He said the rest were still being processed, as many required additional information or further investigation by the Police or other relevant agencies. “During the same period, the Directorate of Public Prosecutions engaged in the prosecution of 1,536 criminal cases in all courts. This figure includes the 1,375 cases which are currently being prosecuted at the Federal and the State High Courts as well as 122 and 38 respectively at the Court of Appeal and the Supreme Court’. Mr. Kazeem observed that the Office of the Public Defender, the agency saddled with responsibility of providing legal aid services to indigent citizens, handled over 5,322 matters on behalf of indigent Lagosians at no cost. These matters, according to him, cut across labour cases, civil matters, criminal cases, coroner’s inquests and fundamental rights cases. OPD also facilitated the collection of over N98m as compensation on behalf of complainants in the last year. Mr. Kazeem highlighted that the Directorate for Citizens’ Rights, responsible for championing the fundamental rights of Lagosians has successfully treated 1,965 Human Rights cases and also recovered the total sum of N16, 248,400.00 on behalf of numerous complainants. Speaking on the Citizen Mediation Center, Kazeem noted that 36,105 cases were received from the 14 Centres, and a total of N783, 310, 670 debt was recovered by the Centre on behalf of parties. The Lagos AG promised to ensure that every citizen of Lagos State has access to justice and also sustain the working partnership with stakeholders in the justice sector in order to ensure that Lagos State remains a haven of safety and security for every resident.

17.05.2016

The Art of Mediation: How to Listen Abimbola Adeluwoye

ith the recent strides in technology, we have developed ways and means of having alternative conversations that do not necessarily make use of spoken speech. We have excused visual conversations for virtual ones and have learnt to morph language to suit this need. Most of us have become very adept at typing on our devices simply because we spend a lot of time on them. Most of us have equally lost our ability to listen because it seems to be less and less of a requirement in this age. As Sound Expert, Julian Treasure said “We are slowly losing our listening”. The art of reading between the lines and the ability to pick up non-verbal cues are learnt through listening. Non – verbal cues are generally grouped under kinesics (eye contact, facial expression, body language); haptics (touch); and proxemics (personal space). We read these cues in everyday conversations without necessarily being aware of them. One of the major strengths of mediation is that it allows parties speak. Whether mediating an Oil Lease Dispute or a Divorce, parties are able to move away from legal rights to birth creative solutions by themselves through dialogue. The courts would strive to restore the wronged party as best as it can. But other equally important issues such as egos that

have been bruised, regard that has not been given, integrity that has been questioned, recognition that has been deprived, or apologies that have not been made, are sometimes beyond the mechanical nature of the law. Often we hear a party tell his Lawyer “It’s not even about the money. But how dare he question my integrity?” A party who understands that what the other party may truly want is an apology or an effort to right a perceived or actual wrong is almost home free. Mediation creates an outlet for understanding these wants which, arguably, are the real matters in dispute. But how do we hear this in Mediation when we don’t know how to listen, or worse still, we think we are listening but are not? How do you know when someone you are in conversation with is not paying attention? What is it that makes you feel something that is being said to you does not really match the impression you are getting? What is it that even gives you the impression in the first place? It has been said that “though the clearest form of expression is speech, up to 70% of all communication is non-verbal, that is, body language”. In essence, the true value of what I do is not in what I do, but what I do while doing it. I may appear to be listening and even convey the poses a la cocked head, steady gaze, nodding intermittently, and such other agreeable gestures that I may come up with. Meanwhile, the mind is miles away. As Diana Schilling wrote in Forbes Magazine “genuine listening has become a rare gift”. This (mimicking listening poses) shows that we know exactly what to do to show the

other party that they have our undivided attention. It is not the purpose of this article to exactly go through them again, but rather, to draw attention to the psychological ploys we need to avoid and indeed what the global environment and self has unconsciously influenced as listening. The first point to note, as mundane as it sounds, is that there is a difference between listening and hearing. Vision is one of the best things we do predictably. So is hearing. To quote research; “hearing is simply the act of perceiving sound by the ear. Listening however is something you consciously choose to do. Listening requires concentration so that your brain processes meaning from sound”. Hearing is automatic. We do it by rote. Listening on the other hand takes practice; it takes intention. People are often inclined to the views they take on things. The purpose of Mediation is to seek the other view and understand what is being said. We can only do this successfully by listening. Listening creates dialogue and dialogue oils Mediation. The second point to note is that listening is not waiting to talk. Sometimes we are so keyed into the adversarial mode that we use this time to gather intel for rebuttal and not to birth creative solutions which is what mediation is about. We do not listen to understand; we listen to reply. Especially when emotions are high. Parties need to understand that they are not necessarily disturbed by the things being said, but by the views they take on them. This is why it is expedient to take advantage of what mediation provides: An opportunity to step

back, listen and reevaluate opinions. Most misunderstandings in such disputes could be resolved by simply asking “What else could this mean?” No better organ convinces others of your sincerity and commitment in resolving a dispute than the ear. Listening remains the best means of persuasion. Now, either because of wandering thoughts or disinterest in what is being said, our minds constantly sieves what it considers worth listening to and ignores what it feels is not. It is perhaps the loudest noise (coming from the conversations in our heads) of what we want to say while pretending to listen to the other party speaking to us. This is referred to as “controlled impairment”; and many, many of us, fall prey to this at our own peril. You cannot selectively listen to what is being said in Mediation. It does not help the process. Mediation requires a temporary suspension of self. As easy as it sounds, it is very difficult for most to achieve. Parties tend to think that once they can surmise the gist of the matter, they can “switch off” till it’s time for them to speak; only that they end up confusing opinions for facts. It is a huge disservice to think and act this way; not just to the other party who requires the audience, but even to the party who acts so and it’s clearly not the for benefit of the process. As he who comes to equity must come with clean hands, he who comes to Mediation must come with listening ears. It is imperative for the alternative resolution we seek. Abimbola Adeluwoye is an Associate Member of the Chartered Institute of Arbitrators (CIArb).

Legal Personality of the Week John Oziegbe

‘Lawyers should be Prepared to Serve even the Downtrodden with their Knowledge and Expertise’ Born to a family of 7 in Iruekpen, Edo State Nigeria, I graduated from the Faculty of Law of Edo State University now Ambrose Ali University in 1996. I attended the Nigerian Law School in 1997 and graduated with a second class upper division. I was called to the Nigerian Bar and became a Barrister and Solicitor of the Supreme Court of Nigeria in 1998. Also in 1998, I did my mandatory youth service in Jos, Plateau State, with the Law Firm of Bankole Falade and Co, Barristers and Solicitors after which I had a stint with David Moore Solicitors and Ahonaurogho Ahonaurogho & Co in Lagos. I later joined Legal Resources Consortium (LRC), a non-governmental human rights organisation based in Lagos. I had a very robust experience at the Legal Resources Consortium in human rights promotion and protection working with government institutions in the justice sector and NGOs in Nigeria and abroad. I am a fellow of the Open Society Justice Initiative (OSJI) and hold a Master’s Degree in Human Rights Law from the Central European University, Budapest, Hungary. In 2006, I came back to Nigeria for my second year Fellowship programme with LRC and then left to join a group of professionals to set up Partnership for Justice (human rights organisation) and operators of the Mirabel Center in Lagos. Sometime in 2010 - 2013, I worked with the United Nations Development Programme (UNDP), South Sudan office as a Rule of Law Officer under the Access to Justice and Rule of Law Programme. In 2014, I joined the United Nations at a professional level as a Human Rights Officer and I am currently a Doctoral Candidate at the Euclid University. Prior to joining the United Nations, I had consulted for the Open Society Initiative for West Africa (OSIWA), on incorporating justice and rule of law in the SGDs. I have attended and also facilitated various trainings on human rights at the national and international level. I have also written and published many articles in different journals, bulletins and dailies bordering on human rights and development. Have you had any challenges in your

knowing when it was ripe for me to move on or leave LRC after putting almost 7years of service. You know sometimes when you stay too long in the dark, you think that is all the light you need. It takes courage to break out. I summoned up that courage in 2007, when I put in my resignation letter to join Partnership for Justice as a founding member. When I look back today, I took a wise decision.

John Oziegbe

career as a lawyer and if so what were the main challenges? There would always be challenges in any career. One main challenge I had was getting to know what I wanted to do as a lawyer. Law practice is such a huge profession and it is crucial to understand what you want to do with your certificate upon graduation. I had wanted to work with a corporate organisation when I left school, but the job was not just coming. Looking back, I have always had a flair for things relating to rights promotion and protection. My eyes were opened to the good a lawyer could do to better the society particularly for the down trodden when I did a little research on my graduate thesis titled, “Assault on the Rule of Law – the Nigerian Experience.” I still give credit to the Committee for the Defence of Human Rights (CDHR) for providing resource materials for that project. My dreams were fulfilled when I joined LRC in August 2000. Another career challenge was

What was your worst day as a lawyer? With the benefit of hindsight, it was the day at the Court of Appeal in Jos when I was left to make an appearance before all the Justices of the Court of Appeal, not knowing what was contained in the file I was handling. My principal left me in the court, to rush to the Federal High Court to attend to another urgent matter. He did not come back until the case was mentioned. It was like the world was coming down on me but I survived it. That was such a remarkable day I will never forget. What was your most memorable experience? During my years in LRC, I always represented the poor, advocating for their plight and making a case for the vulnerable. I was happy the day the court in one of my cases, granted unconditional release to a group of prisoners (20) who had spent between 5-12 years in prison without trial. I was fulfilled as a lawyer for standing up for them at a point they thought they were hopeless. Who has been most influential in your life? Aside from my late father and siblings who toiled to see me through school, career wise, I have been immensely influenced by the likes of Wale Fapohunda, Managing Partner Legal Resources Consortium and former Attorney General of Ekiti State. Same with Professor Chidi Odinlaku, the immediate past chair, of the Human Rights Commission. These gentlemen inspired me a lot in my career

and I am grateful to them. Above all, I thank my wife for her continuous support and God Almighty for the life HE has given me. Why did you become a lawyer? Growing up as a child, I had read about Rotimi Williams and Gani Fawehinmi of blessed memory. I remember back in the days at the Edo State University, my admiration for Gani made me join one of the student law chambers named after him. Moreover, I also had a passion to plead for the down trodden, that was the reason why I felt it useful to use the platform provided by LRC to advocate for protecting the rights of the helpless and less privileged in the society. The key to doing that was no other than being a lawyer. So I am very proud to be a lawyer. What would your advice be to anyone wanting a career in law? My advice to young and upcoming lawyers would be to encourage them to join the noble profession. It is not easy though but it is always worth every effort that is put into it. My advice is for them to come in with the strong desire to learn and better the society. Be prepared to serve even the down trodden with their knowledge and expertise. I did that for very many years earning peanuts but held on. The potential in the profession is amazing and only the smart minds would survive and do well. The opportunities are legion, and so many people who want to be lawyers are encouraged to tap in. The space left to be occupied is still quite large. If had not been a lawyer, what would you have chosen? I probably would have been a doctor. That would have been an opportunity for me to render selfless services to the people. Where do you see yourself in Ten years? I see myself growing in the UN system and serving in multilateral platforms in the fight for human rights promotion and protection at a global level. I think with God the best is yet to come.

17.05.2016

The Importance of Wealth Management Strategies in Preserving Family Business Wealth in Africa Bimpe Nkontchou

large part of Africa’s current economic upsurge is driven by family businesses. “If I can strengthen family businesses and increase their resilience, my work becomes part of ensuring that the current investment boom and the worldwide interest in the African continent will be

sustained.” Over half of global GDP is created by family businesses. The Rothschilds and Rockefellers of this world have successfully transferred their wealth across the ages, thanks to carefully devised strategies. In Africa, we have yet to see very few family businesses out there survive more than three generations. A family business is defined as any organisation in which members of a family hold controlling shares and which does not separate ownership from management. Most of Africa’s economies are relatively young and compared to the US or European economies, have seen few family businesses that stretch across centuries. Family businesses in Africa need clear planning and structured thinking in order to preserve their wealth. It is important that investments and assets are held in structures that enable transparent and realistic succession planning. Although Africa has up until recently been a continent associated with only war and poverty, the continent is undergoing a transformation as a fast growing emerging market. A growing number of African entrepreneurs are successfully creating and acquiring wealth through enterprise and hard work. According to a recent New World Wealth report, the number of people in Africa with assets worth US$ 1 million or more has grown by 145 per cent since 2000. An approximate 161,000 High Net Worth Individuals were living in Africa at the end of 2014, with combined wealth holdings of US$ 660 billion. Avoiding the Pitfalls of Wealth Transfer to the Next Generation The creator of wealth, the first-generation entrepreneur often has a hands-on approach and is in full control of the business. A pitfall for a person of such stature may be to communicate insufficiently about the family’s wealth, about how much or how little is earned. If an unaware second generation is not brought up in the same values that created the business in the first place, chances are they will spend more than they create and dilute the wealth. By the time the third generation steps up and if no formal structures have been

put in place, conflict, envy, and a wide range of opinions may scatter the wealth. Succession Planning in a Family Business For many families, succession planning is the proverbial “elephant in the room”. Despite recognising the importance of preparing the next generation to hold the reins of the family business or assets, the leaders of the family (also referred to as ‘patriarchs) often do not give succession planning the attention it deserves. The consequences of not focusing on succession planning, despite its importance, can be profound. This is even more pronounced in a family owned business, as a leadership void (after the passing of the patriarch) can lead to discord and can significantly undermine the growth or performance of the family business. Poorly planned succession is the biggest setback suffered by family owned business. We have seen this to be the case in Nigeria in the past four or five decades; the business conglomerates which had made their mark on the Nigerian business scene in the 70s, 80s and 90s (such as Chief MKO Abiola’s ‘Concord’ group of companies, Ekenedilichukwu transport, Ibru fisheries, Sir Mobolaji Bank-Anthony’s undertakers etc) and which were built from humble beginnings, are now defunct or moribund, through a lack of planning (on various fronts) for handing over the leadership and management to the next generation. For the astute founder/ entrepreneur, the goal should be the introduction of a family governance policy or structure with rules and limits clarified – and sanctions imposed on family members who violate agreements. The entrepreneur and his family need a clear, fixed, purposeful strategy that determines how the legacy is passed on. Who can work in the business or join the management, and why? What are family members’ roles and parameters? “If you are care-less about anything, chances are you lose it.” One of the reasons given, in the Nigerian context, for the failure of the patriarch to prepare an acceptable successor in the event of his or her exit is that to do so would be to acknowledge one’s mortality. Our cultural beliefs and values view the subject of making a Will or planning for what happens to the family assets in one’s ‘absence’ as taboo. Also, another cultural belief is that the first male child is automatically assumed to be the ‘heir apparent’ and the patriarch sees no reason to deliberate on that child’s competence or availability or to even contemplate that perhaps the eldest son may not be the right person to lead the business (and perhaps a younger or female child would do a better job if given the opportunity). Therefore, it is inevitable, if the family business is to survive the patriarch and hopefully fulfil his vision to leave a lasting legacy that the patriarch must act proactively by

crafting a succession plan. Such a plan must have the interest of the family business at heart, as the patriarch must be objective in choosing the best person to succeed him, as it will be to no one’s benefit if he chooses an incompetent family member, who runs the family business down. Since the laws of nature dictate that everyone will eventually die, the patriarch must be encouraged to put a succession plan in place, which could either be by making a Will, or by incorporating a succession plan into a family constitution or governance document, which all family members are obligated to adhere to. Succession Planning for Family Wealth As Africans, especially Nigerians, create increasing amounts of wealth from their business activities on the continent, they recognise their own environment as high risk and the need for wealth management strategies aimed at protecting surplus assets from political risk, inflation and foreign exchange fluctuations. Such strategies may include the need to have investment portfolios in other countries which are regarded as ‘safe havens’, to establish long term savings for that ‘rainy day’ or for retirement. Also, a sound wealth management strategy must include careful structuring of investments and assets (whether at home or abroad), to ensure smooth transfer to the next generation. Where the family assets are in several countries and of different types (e.g. real estate in various countries, stocks & shares, money market instruments, savings, life insurance policies, pension funds and even artwork), it is considered best practice to utilise corporate structures which will survive the death of the patriarch, to effectively transfer ownership to the next generation, whilst potentially allowing professional managers to assist with the growth and preservation of such assets. The use of corporate structures like companies, trusts and foundations registered in tax neutral jurisdictions (commonly referred to as ‘offshore’) has been heavily criticised as bearing the hallmark

of illicit wealth. Whilst this has proven to be true in some cases, from the startling revelations of the names of some world leaders, bank robbers and ‘shady’ business moguls, there are a lot of mass affluent people and respectable professionals, who are modestly wealthy and who have (on the advice of their lawyers, bankers and tax advisors) made legitimate use of offshore companies as part of their succession planning. The impact of the Panama papers on the wealth management and financial services sector, is the subject of a separate article, but suffice to say that the much needed policies of increased transparency and accountability championed by the OECD countries and also by the US (through the rigorous FATCA regime) started to clean up the industry in the past 10 years. Banks and company administrators are compelled to carry out due diligence and ‘know your client’ checks to ascertain the source of a client’s wealth, otherwise there will be hefty fines to pay. Whilst the legitimacy of the offshore structures is not in doubt (in spite of the ‘hue and cry’), there is a moral argument for restricting the use of such structures only to wealthy people who are not intent on using it for either tax evasion or for concealing criminal property. The entrepreneur who has worked hard to build his humble family business into an international conglomerate and who is tax compliant in every way, is entitled to use any legitimate structure to hold his wealth in the interest of sound succession planning and for the sake of being tax efficient where the law permits. Family leaders in Nigeria today, need to address the lack of succession planning and to adapt a family governance structure that would ensure that the next generation share a common vision to build a lasting legacy. Bimpe Nkontchou is Managing Principal at W8 Advisory, a London-based wealth management and succession planning advisory firm that focuses on wealth amongst African families.

Lawyer Seeks Buhari’s Intervention over His Client’s Continuous Harassment by Police Akinwale Akintunde A lawyer, Robert Emukpoeruo, has sought President Muhammadu Buhari's intervention following his client's alleged arrest and detention by the police after he reported a case of N100 million fraud. Emukpoeruo said his client, Mr. Uyiekpen Idugboe, a Director of Stephen Idugboe and Sons Co. Ltd, was arrested, detained and denied access to his lawyer at the police headquarters, Abuja, unless he disclosed the source of his evidence. He alleged that the police had refused to search the house or office of the main suspect in the matter, and had refused to carry on with the

investigation. Idugboe, he claimed, reported the fraud to the Intelligence Response Team (IRT) of the office of the Inspector-General of Police (IGP), Louis Edet House, Abuja. He stated that Idugboe told the police that the company's land measuring approximately 6, 637.073 square meters at Elf Road, Warri, Delta State was sold to a firm for N250,000,000. But that, "with intent to defraud," some Directors of the company falsely represented to other directors of the company that the property was sold for N150,000,000, "less the various agency and concocted fees which was removed from the sale price."

According to his client, the sum of over N100,000,000 was passed through various bank accounts to conceal it from the other Directors and shareholders. He added that the actual purchase price of N250m was concealed in the accounts of an estate surveyor and valuer. An unauthorised fresh Stephen Idugboe & Sons Co. Ltd account was then opened "into which N137,000,000 was paid to give the impression that this was the purchase price of the property." Emukpoeruo said the investigation of his client’s complaint was stopped by the police and he was detained "for over 48 hours" unless he revealed the source of the evidence of the fraud.

HURILAWS SEEKS AMENDMENT TO ELECTORAL ACT CONTINUED FROM PAGE 4 “The Electoral Act should be amended to streamline and strictly regulate the process of nomination of candidates during party primaries, including limiting the quantum of nomination fees payable by prospective candidates. This will reduce the spate of pre-election disputes/litigations, and curtail the undue monetisation of politics in Nigeria. “The Electoral Act and possibly the Constitution

should be amended to incorporate and recognise the use of the card reader during accreditation of voters, and for card reader reports to be recognised as part of admissible evidence in proof of electoral malpractices such as over-voting." Okeke also advised that previous judgments of the Court of Appeal and the Supreme Court on election matters should be made available to election

Tribunals members and Court of Appeal Justices to make for consistency in judicial pronouncements on electoral disputes. He also called on the Independent National Electoral Commission (INEC) to ensure that card readers deployed for elections were pre-tested, for effectiveness and user friendliness, including training its permanent and ad-hoc staff ahead of elections.

The police, he alleged, accused his client of hacking into a bank account to get the evidence of the fraud, even though "there was no statement whatsoever from the bank that it suffered any cyber attack or crime at all." "As the investigation of our client's complain was inexplicably stopped, Chris Okolo contacted the Intelligent Monitoring Unit of the Inspector General of Police in Abuja and lied that our client hacked into his account to get the evidence of the fraud and conspiracy in respect of the N100m." Strangely, the person handling Chris Okolo's petition is one Assistant Commissioner of Police ACP Mr. Ben Nebolisa Okolo of the Inspector General of Police's IMU in Abuja." "Our client, who reported a crime of over N100m, was released on bail of N200m each from two sureties, totalling N400m while the suspects against whom serious allegations of theft of over N100m were made sauntered in and out of the station in a Police Escort Vehicle." Emukpoeruo urged the president "to intervene in this matter to ensure the identification and punishment of the police officer(s) behind the shielding of suspects and the harassment of victims, so as to serve as a deterrent and deepen the fight against corruption."

17.05.2016

Illegal Mining: The Devil and the Deep Blue Sea Joe Edet

t is no secret that Nigeria is richly endowed with many mineral resources. There are about 44 different minerals spread across the nation. Cross River State alone has about 24 minerals namely Salt, limestone, coal, manganese, mica, ilmenite, gold, quartz, glassand, tourmaline, petroleum, natural gas, kaolin, mica, clay, spring water, talc, granite, galena, cassiterite, goethite, uranium, barites. Sadly, it was reported in November 2015 by a Senator that Nigeria lost 8 Trillion Naira in two years due to illegal mining and exportation of unprocessed gold. In developing countries like Nigeria, minerals are mostly extracted by artisanal, small scale and illegal miners. The activities of artisanal or informal miners are hardly or never regulated. They carry out their mining activities in a way that is not in compliance with the Nigerian Minerals and Metals Act and the regulatory and legal framework. Illegal mining might be on the rise because it attracts energetic young people due to its lure and promise of quick gains. Even more notable, due to the problem of dwindling economic returns from the exploration of oil, is the age-long menace of illegal bunkering which is in violation of the provisions of the Petroleum Act, Section 1 of which vests ownership and control of all Petroleum in the Federal Government. Also, Section 1 (1) of the Petroleum Production and Distribution Anti- Sabotage Act, provides that any person who wilfully does anything with intent to obstruct or prevent the production or distribution of petroleum products in any part of Nigeria, or wilfully does anything with intent to obstruct or prevent the procurement of petroleum products for distribution, shall if by doing that he, to a significant extent, causes or contributes to any interruption in the production or distribution of petroleum in any part of Nigeria, be guilty of the offence of sabotage under the Act. Also, Section 13 of the Petroleum Act makes it an offence to explore or prospect for or construct a refinery for petroleum without a license. Likewise section 4 prohibits the importation, storage, sale or distribution of Petroleum products without a licence from the Minister. Despite these provisions, it has been said that illegal bunkering is ‘Nigeria’s most profitable private business’ and that Nigeria loses billions of dollars each year to the practice. This is also referred to as oil theft and is reported to be carried out even with the help of certain government agencies and staff of oil companies. There is also the attendant consequence of Pipeline Vandalism. Factors that contribute to the menace of illegal mining include neglect of the industry, poor enforcement of our mining laws, unemployment, and the lure of abandoned mines among many other reasons. Even though the activities comprising illegal mining might happen in just a matter of days or hours even, their destructive effects can affect many generations through time. Some of the alarming effects of Illegal Mining include: Pollution from mining and related activities has a detrimental impact on the environment. For example, when illegal miners use liquid mercury to extract gold without the proper equipment. The mercury is released as effluents into rivers and contaminates the fishes which are eventually consumed by humans. This causes Mercury Poisoning which leads to infertility and heart problems. Another form of poisoning is Cyanide poisoning. In 2010, one of the worst cases of lethal levels of lead poisoning was discovered in Zamfara State and 43 villages were affected. Over 400 children died from the scourge due to unsafe and illegal mining for gold in the state. In some States of the federation, illegal sand and laterite mining has led to erosion, flooding and the consequent loss of property by residents in the State.

Illegal mining processes can also cause siltation which is the pollution of water by particulate terrestrial clastic material, with a particle size dominated by silt or clay. Siltation is most often caused by soil erosion or sediment spill. The activities of illegal miners has robbed the country of its wealth especially in the face of dwindling oil prices as they operate without recourse to cost, pay no taxes or royalties or in some cases pay the incorrect values, since there is no proper regulation of their activities. Environmental degradation is unavoidable as illegal mining operations cause an accumulation of chemicals and poisons, damage lands, especially arable ones, lead to the formation of gullies, cause deforestation, pollute water sources, delay the growth of the host communities and take away their sources of livelihood, especially as most Nigerians are farmers. Illegal miners use explosives and do not remediate their mining sites, thereby exposing the environment to dangerous chemicals. This is often in violation of Section 99 (2) of the Mining and Minerals Act, which prohibits the use of explosives in extracting sand, clay, laterite, e.t.c, Tin Miners often sink mine pits for exploiting tin and do not close them after the operation. Quarry companies are rarely involved in reclamation which is the process of creating new land or returning disturbed lands to an improved state. In Canada, reclamation is defined as ‘the process of reconverting disturbed land to its former or other productive uses’. In Oceania, it is frequently referred to as land rehabilitation. Conflicts often break out among communities or groups over ownership of the mined lands since the proper process of authorising ownership of the land was not followed. Miners are often killed due to poor operational facilities and working conditions and little or no safety precautions for mining explosives are observed. Communities are deprived of the development that should accrue to them because artisanal miners do not operate based on laid down rules and legislation. The Minerals and Mining Act mandates a Community Development Agreement approved by the Mines Environmental Compliance Department but this is denied the host communities. Mining Companies are supposed to provide jobs for Nigerians pursuant to the Local Content Act, but the jobs are taken by the foreigners and the local industries complying with the law are faced with stiff competition. Illegal Mining can cause unfair pricing advantage. Due to the crude methods used by illegal miners, the minerals extracted are inefficiently exploited and processed. An Environmental Impact assessment is supposed to be carried out on the land and also Mitigation plans put in place but these are never followed or adhered to by illegal miners. Labour laws are usually disregarded and there are the vexed cases of child labour and women miners. The aforementioned are the effects of illegal mining. Before discussing the solutions, it is pertinent to take a glimpse into the regime of ownership of Minerals in Nigeria. Section 1 of the Minerals and Mining Act 2007, vests ownership of Minerals in the Federal Government, and Section 2 prohibits exploration and exploitation without authority. Under the Act, the right to search for and exploit mineral resources is obtained through permits, licenses, mining leases and quarrying leases. The Act is administered at the state level by the Mineral Resources and Environmental Management Committee. S. 44 (3) and Item 39 of the Exclusive Legislative List of the Constitution of the Federal Republic of Nigeria vests exclusive control over Mines and Mineral resources on the Federal Government. It would also seem that they also have

Minister for Solid Minerals Development, Dr. Kayode Fayemi

the exclusive right to create offences relating to Minerals and Mining as Item 68 of the Exclusive Legislative List mentions their power extends to incidental matters which is defined to include offences in another part. This however does not mean that State Governments are powerless as regards the Mineral deposits mined in their states. There is a lot which they can do to curb illegal mining in their state. To start with, States are at the forefront of increasing agitation for the removal of the exploration and exploitation of natural and mineral resources from the Exclusive Legislative List to the Concurrent list by a constitutional amendment, to give them more power over the mining of minerals. The following steps are also recommended to curb the nefarious activities of illegal and artisanal miners. There have been calls for the government to recognise and formalise the activities of these miners, thus enabling them to come under legal and governmental supervision. That school of thought recommends that artisanal miners should be encouraged by providing them with incentives, access to facilities and programs to encourage safe mining processes and effective remediation of the environment, and giving them modern mining tools to reduce the pollution of the environment and hazards to their health. Artisanal miners should come together to form cooperatives which can also have government supervision and backing. It will be easier for them to pursue their interest collectively and lobby government to support them. A task force or mining police should be established to arrest persons engaged in illegal mining. This will also provide employment to our teeming youths. The government should begin to make it clear to traditional and community leaders that they will be held responsible for allowing illegal mining activities to go on unreported or undisturbed. On the other hand also, they can be trained to spot these activities and report them. Worthy of note is the fact that Section 19 of the Minerals and Mining Act 2007, established the State Mineral Resources and Environmental Management Committee, part of its functions is to advise the Local Governments on the implementation of programs for environmental protection. The Government can take steps to close down illegal mines, confiscate equipment and revoke the licenses of illegal miners and sanction them. Government can increase Physical and Electronic security, create intelligence channels to be more informed about secret mining activities and create a whistleblowing mechanism to enhance the flow of information. Government can collaborate with and train security and regulatory agencies, and communities and businesses to identify and report illegal miners, perform impromptu raids and strengthen checkpoints. Very importantly, the government should

provide alternative employment given the fact that unemployment is one of the leading causes of illegal mining. On a futuristic note, the government can borrow a life from the Indian Government, who are already employing the use of satellite data to stop illegal mining by using remote sensing satellites, and tracking the legal boundaries of mined areas. It has been suggested that Mineral Buying Centers be established at sites where mining activities happen. The federal Government should fix the rates of the minerals so that foreign mining companies buy from these local producers at the fixed price. A data gathering process should be put in place. Unscrupulous powerful people and crime syndicates sponsoring these activities should be fished out and sanctioned. Incentives should be given to investors in that area to enhance availability of capital to the miners. Government should promote research to enhance productivity and minimise hazards. These measures will go a long way in reducing, and eventually, stopping illegal mining in the state. In view of the above discussed suggestions, the following actions are suggested. Governments at all levels should organise regular training programs in partnership with technical experts to educate the regulatory authorities on evolving methods which are being used to steal the oil and also modern ways of apprehending the tankers in which the oil is being carted away. A Whistle-Blowing mechanism should be set up in all the wards of the state for people to report suspicious illegal mining activities to the head authorities anonymously and without fear of victimisation. A dial-up number or mail address could be established to that effect. Given the truth that illegal miners would not have such a field day without cooperation of their host communities, the Councillor of each Ward in the country, in collaboration with the traditional head and academic institutions, should be sensitised regularly on the evils of illegal mining and made to take responsibility for the goings-on in their community. The community as a collective body should take action against all illegal miners. A Monitoring Team should be constituted and empowered, in conjunction with the Oil Companies, the Neighbourhood watch, the Nigerian Security Civil Defence Corps and Individuals renowned in their community for their Integrity should be commissioned, to patrol and be on the alert for illegal mining activities and to seize the equipment and illegally obtained minerals from the perpetrators. Pipelines and Mines should be located or relocated very far from residential areas such that illegal miners or oil vandalizers are isolated, thus making it easier to apprehend them. In taking advantage of the possibilities of Satellite sensing and surveillance, the state government and its academic and technical institutions should partner with the National Space Research and Development Agency. A transparent system should be put in place such that all transactions in oil and other mineral resources are well documented and identified to make for easy identification of stolen oil and produce. A Partnership with the Central Bank of Nigeria and other Financial Institutions should be established to fund small scale miners to purchase modern implements and equipment. A Mining Development Bank should be established with the capacity to grant loans and facilities with zero interest rates to artisanal miners. In conclusion, illegal mining is not an insurmountable problem. It is hoped that with the recommendations advanced in this analysis, government can reposition itself to reap the benefits that abound in its Mineral resources. Joe Edet, a lawyer is the Special Adviser to the Governor of Cross River on Mineral Resources.

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17.05.2016

Mrs. Amina Dyeris-Sijuwade PHOTOS: Idris Egaji

‘Kaduna State has Fully Complied with the Judgment on Financial Autonomy for the Judiciary’ Kaduna State was a melting pot of different ethnic and religious groups until a few years ago, when religious fundamentalism gradually crept into the state. The Nasir el- Rufai administration is however determined to address this and other challenges to restore the state to its former prosperous and peaceful position. In realisation of this objective, the state’s Attorney-General and Commissioner for Justice, Mrs. Amina Dyeris-Sijuwade shared her vision and her plans to ensure that justice administration is given top priority with May Agbamuche-Mbu, Jude Igbanoi and Tobi Soniyi. She also gave insights on the state’s efforts to deal with issues such as prison congestion, security in the state and the recent Army-Shiite clash which required the setting up of an investigative commission.

ou are the Attorney General of a state with diverse ethnic and religious groups, this is no easy task. What is your agenda for the Kaduna State Ministry of Justice during your tenure? I have taken on the mantle of Attorney General of Kaduna State at a time when the Ministry of Justice is going through a lot of challenges. There is a dire need for restructuring the ministry to take care of critical areas like Commercial law which the State will need to serve the planned increased commercial activity and the

anticipated partnerships between government and the private sector. I also met staff that lacked motivation especially the State Counsel due to neglect in core areas like continuous professional development and staff welfare. I realised, upon assumption of office that there was the need to reequip and reposition the Ministry so as to enable it carry out its core functions. All these might seem quite basic, but they are key to making any meaningful progress. If the Ministry of Justice is well positioned it can then effectively play its role in ensuring that justice, equity and fairness are available to all irrespective of their ethnic, religious and tribal affiliation. Statistics from Justice for all (J4A) have shown that most people seeking formal

"AS REGARDS FINANCIAL AUTONOMY OF THE JUDICIARY, KADUNA STATE IS ONE OF THE STATES THAT HAS COMPLIED WITH THE COURT OF APPEAL DECISION WHICH ORDERED STATES TO GRANT FINANCIAL AUTONOMY TO THE JUDICIARY"

justice do so through the lower courts. In Kaduna State in 2009/2010 lower courts handled 70,786 cases, while higher courts handled 4,076 cases. In spite of higher relative caseloads, lower courts have suffered from a lack of investment for many years. Lower courts are unable to provide the quality of service that users have a right to expect. How does your administration intend to reform the courts in the state? One sure way to make justice accessible to all is to bring the Courts closer to the people. This informs why there are more Magistrate Courts than High Courts in the State. A bulk of the cases that come up fall within the jurisdiction of the lower Courts. This is

17.05.2016 "WE HAVE ALSO CONDUCTED A VERY RIGOROUS DECONGESTION PROGRAM THROUGH WHICH WE HAVE RELEASED 153 INMATES ACCUSED OF MINOR OFFENCES IN THE LAST 6 MONTHS" why the lower courts are overstretched. The solution is to create more courts to relieve the overburdened Courts which this Administration in collaboration with the Judiciary has been working on. For example additional Magistrate Courts have been created in areas like Rigasa, Rigachukun, Lere and Zaria City and four new Customary Courts in Kagarko, Doka, and Giwa. There have been complaints by some state chapters of the Judicial Staff Union of Nigeria (JUSUN) that most governors are yet to comply with the judgment of the court granting financial autonomy to the judiciary. To what extent has Kaduna State complied with the judgment? As regards financial autonomy of the Judiciary, Kaduna State is one of the States that has complied with the Court of Appeal decision which ordered States to grant financial autonomy to the Judiciary. This administration has facilitated the ongoing infrastructural facelift that is ongoing in the Courts. Also when this administration came into power, there was an indefinite industrial action by JUSUN which lasted for four Months. It was this administration that waded into the matter which resulted in the suspension of the strike by the Judicial Staff. In addition, this administration was able to pay the Judiciary Staff, four years backlog of their leave grant which the past administration failed to pay. It is a well-known fact that Nigerian prisons have a disproportional amount of “Awaiting Trial Inmates”. The National Human Rights Commission (NHRC) has reported that 70 per cent of inmates in prisons across the country have not been tried. As the chief law officer of the state, what are your plans for prison reform? On the issue of prisoners awaiting trial, it is a general misconception that the fault lies with the Ministry of Justice. The prosecution of an accused person does not solely rest on the shoulders of the Ministry of Justice but on the Police and the Judiciary as well. On assumption of office, one of my concerns was to clear the backlog of cases awaiting trial due to delays in the handling of case diaries. I was able to streamline the process and enhance the synergy with the Police. This has drastically cut down the time span within which advice is given and charges preferred by 60 %. State Counsel now know that there is a deadline for proffering legal advice. The Police have been cooperating in ensuring that case diaries are transmitted to the Ministry of Justice on time. I have introduced a case management system with the assistance of Justice for All, a DFID program which allows the Ministry to keep track of its cases and their life span. We have also conducted a very rigorous decongestion program through which we have released 153 inmates accused of minor offences in the last 6 months. An important program regarding prison reforms is the introduction of a skill acquisition programme in all Kaduna State prisons. The skills to be transferred will cover ICT, Carpentry, and Tailoring, hairdressing, Barbing to name a few. This will enhance the reformatory capacity as opposed to prisons just being a facility for incarceration. In fact, for our 2016 decongestion exercise, participation in these programs will be one of the conditions for consideration for the prerogative of mercy and the grant of notice of discontinuance. Last year there was an attempt to introduce a law prohibiting street trading and begging in Kaduna this was met with protests from people with disabilities in Kaduna and other activists. However, this law has been successfully passed by the Kaduna state House of Assembly. Could you explain the rationale behind this law? What is the state doing to make justice accessible to more people in the state especially the less privileged? The protests were as a result of a misunderstanding of the motives behind this

COVER/9 administration’s intent. I believe it is a case of putting the cart before the horse. We noticed that our streets were filled with beggars most of whom were from the neighbouring States where Street begging had been banned. These beggars also constituted a security risk. The Government did not just pass the law without considering the plight of the disabled and the indigent. The Ministry of Women Affairs is committed to the issue of rehabilitation/ skill acquisition centers to cater for this segment of the society. However I guess at that time the protesters just needed reassurance of this. Recently, there has been an increase in the incidences of violence and insecurity in Kaduna State. The Army Shiite clash last December controversially left an undetermined number of casualties. Beyond the security committee meetings which the state Executive hold monthly, what other measures has the state taken to ensure the safety of lives and properties? The misconception needs to be clarified. Unfortunately we had incidents involving some high profile persons which understandably got some press attention. However, our response was swift which was shown by the numerous arrests made. The well-coordinated and sustained operations have continued to keep Kaduna peaceful. Even the frequency of our weekly security meetings shows this administration’s commitment to ensuring peace and security for it residents. A Judicial Commission of Inquiry was set up to investigate the clash between the Army and the Shiite Islamic movement in Kaduna State. Could you enlighten us on the composition and agenda of the commission? The composition of the Commission include Justice Mohammed Lawal Garba, the presiding Justice of the Port Harcourt Division of the Court of Appeal, Professor Salihu Shehu, a lecturer at the Bayero University, Kano; Professor Umar Labdo, a lecturer at the Northwest University, Kano; Mallam Salihu Abubakar, a former director of the National Agricultural Extension and Research Liaison Services (NAERLS), Ahmadu Bello University, Zaria; and Professor Auwalu Yadudu, a Professor of Law and former special adviser on legal matters to the government of the late Head of State, Gen. Sani Abacha;

and Mr. Afakirya Gadzama, a commissioner. Others are Mr. Gadzama, a former DirectorGeneral of the Department of State Services; Brig-Gen. Aminun-Kano Maude (rtd); Dr. Jibrin Ibrahim; Mrs. Khadijah Hawaja Gambo; Mr. Bilya Bala, Editor-in-Chief of the People’s Daily newspapers; Maj-Gen Alexander Anjili Mshelbwala ( rtd); and Mrs. Desire Deseye Nsirim, a retired Commissioner of Police. The Director of the Centre for Islamic Legal Studies, Institute of Administration, Zaria, Dr. Bala Babaji, is the secretary to the commission. The Agenda of the Commission is to unravel the real cause of the violence so as to avert its reoccurrence in the near future. What progress has been made in the investigation of the sad and horrific incident of the Army-Shiite clash? As regards the progress made so far by the commission, I must say a lot has been achieved since it commenced sitting. However, since the Government of Kaduna state is also involved I cannot say much as the matter is subjudice. The Bill to regulate religious activities in Kaduna State has been the subject of much debate among members of the legal profession. Some legal experts believe that the law stands in the face of sections 38 and 39 of the Constitution which guarantee the fundamental rights to expression, freedom of conscience, thought and religion? How do you think these concerns can be addressed in the Bill? One thing a lot of people are unaware of

"WE NOTICED THAT OUR STREETS WERE FILLED WITH BEGGARS MOST OF WHOM WERE FROM THE NEIGHBOURING STATES WHERE STREET BEGGING HAD BEEN BANNED. THESE BEGGARS ALSO CONSTITUTED A SECURITY RISK"

is that this Religious Preaching Law came into existence in 1984. Perhaps one of the problems bedeviling the entire Northern region is religious/ sectarian crises and Kaduna State is not exempted as we have had our own share of the crises. This Bill was enacted during the Military regime to control hate speech by individuals who do this under the guise of religious preaching. I completely agree that section 38 and 39 of the 1999 Constitution provides for freedom of Religion, conscience and thought and Freedom of expression respectively. However Section 45 of the same 1999 Constitution states that nothing invalidates any law provided that the law is enacted to protect the public peace, public Health, public order or public morality. This law is made for the greater good of our dear State. I agree that there are areas that need to be looked into and this is why we have continuously engaged stakeholders. This is exactly what should obtain in an open and inclusive democratic legislative process That is why we are inviting stakeholders to enlighten them on the law. The controversy of the National Assembly’s withdrawal of the Gender Parity and Prohibition of Violence against Women Bill but where does Kaduna as a State lie in the debate? Does Kaduna State have plans to enact a law that will promote equal opportunity for women? Gender Discrimination especially against women is an issue we as a nation are coming to terms with. As a legal concept lawyers debate what the Nigerian context of discrimination is in the light of culture and custom. Gender equality and prohibition of violence is a national problem and steps are being taken to deal with it both at the National and State level. In Kaduna State, we have a draft bill. However, the State is setting up a structure where the Bill will be subjected to public and stakeholder scrutiny so as to ensure all are carried along. One of the critical challenges facing states is how to survive in the face of dwindling allocations from the Federal Government caused largely by the fall in oil prices and accruing government revenue. What alternatives are the State considering to boost its internally generated revenue capacity? Kaduna State happens to be one of the few States that has been able to address the problem of dwindling resources. This has been as a result of our prudent and pragmatic approach to the handling of state finances. We were the first to introduce Treasury Single Account (TSA) that helped us block leakages and saved us a lot of money. We are just concluding the third phase of the verification exercise which has exposed over 16,000 ghost workers and has significantly reduced our salary wage bill. We prioritise the passage of all revenue laws to position us for improved fiscal management. The new Kaduna Internal Revenue Service has been working tirelessly to improve the collection of taxes from individuals, businesses that either had not honoured their tax obligation for years or who paid monies into a very porous basket. These measures are in addition to vicious cuts in expenditure across board. By all comparisons the standards of formal education in Nigeria have waned from the early periods pre and post independence. The legal profession has not been spared this gradual decline, which in turn affects quality of young lawyers in the sector. What steps do you believe governments like your state’s can take to improve the standard of education in now and in the future? States do not participate in the regulation of legal education in the country. However, the Kaduna State Government is considering raising the bar for qualifications in order to enjoy State sponsored Scholarship to the Law School. Kaduna solid minerals array is especially lucrative with plentiful reserves of gold and iron ore. Notably Governor Nasir el-Rufai of your state audaciously observed that there is more gold in the state than South Africa. Going on to the issue of actually tapping into available resources, does the Kaduna State government have a policy plan for how to exploit the solid minerals within the state? The Ministry of environment and the Kaduna State mining company are currently working on a roadmap for the aggressive exploitation and development of Kaduna State’s abundant mineral resources. I expect that this will be made public within the next couple of months.

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17.05.2016

Herdsmen, Land Use and the Human Rights Question Victoria Ohaeri

ulani herdsmen; herdsmen; hoodlums; intruders from Chad and neighbouring countries or whatever appellation ascribed to their murderous activities, these names emit fumes of terror, anguish and fear. The fear they evoke is well founded: what started out as recurrent violent clashes between nomadic herdsmen and their host farming communities in Kaduna, Plateau, Kaduna, Nasarawa, Adamawa, Benue and more recently, Enugu and Abia States, has now assumed genocidal dimensions. The clashes are largely rooted in violent disputes over land spaces needed for grazing and cattle-rearing. Farmers complain that the indiscriminate grazing on their farmlands by the herdsmen cause massive destruction to their crops, vegetation and traditional livelihoods, just as the faecal matter from the cattle contaminate water and food sources. Hardly any week passes without reports of herdsmen sacking and slaying entire communities and their inhabitants when they are denied access to grazing areas the host communities regard as farmlands. Hundreds have been reportedly killed, and tens of thousands displaced, but yet, the marauding herdsmen have neither been apprehended nor brought to justice. The National Grazing Routes and Reserve Bill 2016 to the rescue Currently undergoing parliamentary deliberation is a proposed legislation – National Grazing Routes and Reserve Bill 2016 – that aims to bring the incessant herders-farmers clashes, to an end, through the establishment of grazing routes and reserves across the country. The proposal for the establishment of grazing routes has stirred ethnic tensions, especially in the Southern part of the country, where the Bill continues to rouse suspicion. Creating special grazing routes is widely-perceived as an attempt to grab land from farming communities and hand it over to the nomadic herdsmen to graze their cattle, with not a few, vowing to resist any move by the Federal Government, to endorse by legislation, the creation of such routes. A cursory look at the contentious 35-claused Bill shows that a Commission is to be established as a corporate body, with well-defined governance structures and systems (Part I). As enumerated in Part II of the Bill, the functions of the Commission include the establishment, management, maintenance and control of cattle routes, farm camps and grazing reserves in different parts of the country, prescribing persons who may use the grazing reserve, number and type of stocks that may be permitted therein. The Commission also has the power to grant grazing permits; demarcate or advise on the boundaries of the grazing route and reserves; prescribe fees for the usage of the routes and reserves; regulate conditions of entry; impose penalties for breach of its regulations, and prosecute those in breach. Part IV details the procedure for acquiring Grazing Routes and Reserves and it includes: • A physical/geographical analysis of the land use to ascertain the best locations within the States for such routes or reserves. • That the 36 State Governors cooperate with the Commission to accomplish this objective. The Bill requires Governors to transfer identified land to the Commission for use as grazing land. The Governor shall then issue an Order stipulating the limits of the land acquired and the interest transferred. • The bill provided for notices to be issued and or served on the affected citizens, • Clause 21 of the Bill mandates the Commission to pay “the compensation necessary” to persons and communities whose interest in the land are affected by the transfer. The Nigerian 1999 Constitution and the Nigeria’s land use policy – the Land Use Act of 1978 – provide a prism through which the competing economic interests of the nomadic Fulani herdsmen and farming settlements can

be explored. Along these lines, any attempt at the exploration of solutions to the herdsmenfarmers menace must answer these four germane questions: 1. Is the Grazing Bill compatible with the Land Use Act? 2. Does the Grazing Bill satisfy the public interest requirement for the compulsory acquisition of land under the Land Use Act? 3. What are the implications of the Grazing Bill on constitutionally-protected rights, especially the right to non-discrimination? 4. Are land owners whose lands are expropriated by the Commission availed of effective legal remedies? The Grazing Bill is incompatible with the Land Use Act Several provisions in the Grazing Bill are tension triggers. The first tension trigger is the evident contradiction between the Land Use Act (LUA) and the Grazing Bill. LUA is the principal land policy that governs the administration of land in Nigeria. Section 1(1) of the Land Use Act vests the entire landmass in the territory of each state of the federation in the State Governor. Transferring parts of the governor’s powers to the Commission, without constitutional approval, represents a usurpation of statutory authority, with strong potential to aggravate social tension, and upset state-federal collaborations. Secondly, the power conferred on the Commission to identify suitable land for grazing, and the requirement for state governors to transfer the identified land to the Commission, veiledly subordinates State governors to the Commission - another constitutional aberration. This also means that affected landowners and communities have practically no say in the making of land takeover determinations. Thirdly, the Commission’s power to “identify land” is inherently prone to abuse, and will potentially provoke social unrest especially where the choicest arable land are identified and set aside for special use by “foreigners’. The Grazing Bill fails to satisfy the public interest requirement Section 28 of the Land Use Act empowers the governor to revoke a right of occupancy for overriding public interest. The pertinent question is whether the establishment of a grazing reserve or grazing routes for nomadic herdsmen is in the overriding interest of the public or for purposes beneficial to the public.

To consider what amounts to public purpose, we look no further than in section 51 of the interpretation section particularly paragraph (1) (f) of the LUA where public purposes was interpreted to include - for obtaining control over land required for or in connection with economic, industrial or agricultural development (emphasis mine). Since the Land Use Act recognises agriculture as falling within the public use category under which land can be compulsorily acquired, this connotes that cattle-rearing which is the stock-in-trade of nomadic herdsmen can be described as an agricultural activity. However, for two main reasons, the test of public interest collapses when the nature and benefit of the agricultural activity proposed under the Grazing Bill is further scrutinised. First, the activity in question is for the benefit of a particular group who have been identified with a particular economic activity. Secondly, the activity seeks a federal fiat to displace hundreds of thousands from their ancestral homes for an economic activity that is structured in a manner that may not be beneficial to them and also destructive to their means of livelihood. A long list of judicial authorities have clarified what overriding public interest means. Shedding light on the nature of public interest, the Supreme Court in LAWSON v AJIBULU [(1991) 6 NWLR (pt 195) 44] held that the Governor’s power of revocation for overriding public interest does not cover any revocation of an individual’s interest in land and granting same to another for a private purpose. Since the purpose of revocation is for public good and not for the benefit of an individual, any such revocation for the interest of an individual is null and void and of no effect. The court stated: “But I conceive that the acquisition must primarily be made to fulfill the legitimate ends of government and not directly or indirectly for the sole and personal benefit of any individual or group of persons with certain vested interests which either by accident or design tally with the purpose government (emphasis) is empowered by law to compulsorily acquire other people’s land.” From the decision above, it is trite law that although a revocation made in compliance with the relevant provision of the Act is valid, it may be declared void by the court if the acquisition was not made to fulfill the legitimate ends of government, but simply to transfer the acquired land to an individual or group of persons with certain vested interests which either by accident

or design are similar to the purpose for which the state may acquire other people’s property. By implication, it would definitely not be in the interest of the “general public” for farmers to be displaced from their farming and fishing activities to pave the way for the establishment of grazing routes or grazing reserves that will benefit a few. Implication on constitutionally-protected rights According to section 42(1) of the Constitution, a citizen of Nigeria of a particular community, ethnic group (emphasis), place of origin, sex, religion or political opinion shall not, by reason only that he is such a person:-(a) be subjected either expressly by, or in the practical application of, any law in force in Nigeria or any executive or administrative action of the government, to disabilities or restrictions to which citizens of Nigeria of other communities, ethnic groups, places of origin, sex, religious or political opinions are not made subject; or (b) be accorded either expressly by, or in the practical application of, any law in force in Nigeria or any such executive or administrative action, any privilege or advantage (emphasis), that is not accorded to citizens of Nigeria of other communities ,ethnic groups, places of origin, sex, religious or political opinions. The above provisions of the Nigerian constitution lend credence to the widespread sentiments against the enactment or application any law, or the taking of any administrative or executive action that may favour a particular community or group. In light of the above, the question that comes to mind is whether the desire of the Federal Government to create grazing reserves or routes for migratory herdsmen of a particular ethnic group (known for cattle breeding), not just within their immediate particular locality, but around the country, does not constitute discriminatory behavior. Related to this is whether such apparent discrimination qualifies as an official state policy favouring and promoting the economic interest of the nomadic herdsmen of the Fulani ethnic group to the detriment of other ethnic groups thereby offending the provisions of the Constitution of Nigeria. Insufficiency of legal remedies in the Grazing Bill Across different tribes and ethnic groups in Nigeria, land is collectively-owned, and as

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17.05.2016

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Defences against Hostile Takeovers Uzo Ekwegh

competitor. There is also the argument that the White Knight is sentimental and detached from the concepts of corporate value and shareholder-wealth creation, bearing in mind that such a third party is likely to offer to purchase the shares at a sum less than that offered by the acquirer. For this approach to be effective the target company has to identify and approach a willing third party timeously, which may pose some difficulty.

hostile takeover is one of the many methods of implementing corporate restructuring. The other more popular methods are mergers, acquisitions, and takeovers. A takeover bid involves an unsolicited offer by one company (the acquirer) to purchase the shares of another company (the target company) in order to assume control of the latter. Where the target company is against the takeover bid and rejects the unsolicited offer, the acquirer has the option of purchasing shares of the target company by approaching individual shareholders directly to the point of attaining the prescribed threshold shareholding that guarantees control of the target company (i.e. a hostile takeover). When faced with a hostile takeover, the predictable reaction from the management of the target company is to attack the bid by giving reasons why such a restructuring would be disadvantageous to the life of the company. This article seeks to highlight some of the defensive strategies open to a target company. Staggered Board It is usual for a company to appoint a shareholder to its board of directors, based on his shareholding in the company. Hence, the acquirer may seek to gain access to the board by purchasing enough shares to qualify as a director in the target company. The importance of gaining access to the board in respect of a takeover bid is the opportunity it gives the acquirer to lobby the other board members in favour of the bid. The Staggered Board approach ensures that the acquirer would have to wait a while to get a seat on the board of the target company. The acquirer would recognise such delay as an additional transaction cost. The hope for target companies is that the Staggered Board system will be an effective deterrent to hostile takeovers. A Staggered Board operates as a system for the rotation of directors. Section 259 (1) of CAMA provides that the rotation of directors is subject to the provisions of the Articles of Association

(Articles) of the company. To operate a staggered board system, the Articles may state that the members of the company are divided into groups, with members of each group eligible for appointment to the board on a rotational basis, which creates the aforementioned delay. A critique of this strategy is that it may only be effective as delaying tactics. The suggestion is that the staggered board approach may be more effective as an ingredient complementing other adopted measures, as opposed to a sole defence against a hostile takeover.

meeting. In order not to circumvent the provisions of CAMA, the target company may insert the poison pill clause into the Articles or Shareholders’ Agreement by stating that a takeover bid shall trigger an extraordinary general meeting where they can duly pass the resolution to increase the company’s share capital. Seeing, as the board activates the poison pill clause it becomes important to protect the board from infiltration by the acquirer. It is therefore advisable to adopt the hybrid of the staggered board and the poison pill as a formidable defence to a hostile takeover.

Poison Pill The Poison Pill comes in a number of forms. One of such forms involves the dilution of the shares of the target company, accomplished through the issuance of new shares to existing shareholders at a price below the market value. In other words, the poison pill clause activates a rights issue in which the acquirer cannot participate. Hence, it prevents the acquirer from attaining the targeted ownership threshold. This version of the poison pill is termed the “flip in” poison pill. Generally, the poison pill clause is inserted into the Articles or Shareholders’ Agreement and is triggered by a takeover bid. It is noteworthy that Section 100 of CAMA mandates that the decision to increase a company’s share capital be taken at a general

White Knight The White Knight defence involves the engagement of a friendly third party to ward off interest from the acquirer. The target company approaches a third party to purchase a substantial amount of its shares such that it makes it impossible for the acquirer to execute its takeover bid. In essence, this approach advocates a merger or an acquisition as a defence to a hostile takeover. Although this approach has been criticised for still resulting in corporate restructuring, it seems to be an effective defence, since the acquisition by the friendly third party wards off the actual hostile takeover and the accompanying concerns. This approach is arguably best suited for a failing firm, seeking to avoid being taken over by a

HERDSMEN, LAND USE AND THE HUMAN RIGHTS QUESTION such, not easily transferable because landholders merely hold it in trust for generations unborn. Because of the transgenerational and cultural value attached to land, compensation alone may be insufficient to placate individuals or communities that are likely to be displaced from their ancestral homes to make way for the grazing routes. The bill contains no holistic resettlement plan for such communities that may be uninterested in monetary compensation. Furthermore, revocation of a right of occupancy or government’s compulsory acquisition of land is often aggravated by an obsolete compensation regime that is calculated on the basis of an arbitrary valuation of structural or economic crop improvements on the land. When paid at all, the payment of compensation has always been untimely, and no serious effort is made to address or assuage the feelings of indigenous communities or landholders who have underlying profound cultural, social-political values and spiritual attachments to land holdings. Rising social tensions What particularly makes the grazing bill a hard-sell is that it is being introduced at a time the social tension the herdsmen activities have generated is still high, and the scars still fresh in the memories of grieving families and communities. The gory images of slit throats, amputated

Crown Jewel The Crown Jewel defence involves the target company disposing of its most prized asset in a bid to make it less attractive to the acquirer. Some observers have asserted that Blackberry Inc. implemented the crown jewel defence amid rumours of an impending takeover, when it made its blackberry messenger application (its crown jewel) available for sale to other competitors within the market. This move has been credited in certain quarters for averting the rumoured takeover. However, there is a concern that the acquirer may still be interested in the takeover, based on the impact of the revenue received from the sale of its crown jewel on the cash reserves of the target company. It is therefore pertinent to note that this defence is to be applied where it is clear that the acquirer’s real target is the ownership of the crown jewel. Interestingly, a combination of the crown jewel and the white knight defences may be a more potent strategy than either strategy on its own. This combination would involve the target company offering its crown jewel to a friendly third party, with an agreement to repurchase it at an agreed price when the takeover threat recedes. Conclusion While corporate restructuring remains an effective tool for the maximisation of shareholders’ wealth and the improvement of a company’s operations, it is important to ensure that companies are given the option to repel unsolicited advances. To this end, the foregoing has attempted to highlight a number of defensive mechanisms that a target company may implement to fend off hostile bids. Uzo Ekwegh is an Associate at the law firm of Austen-Peters & Co

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hands, stabbed chests and bloodied faces of innocent Nigerians butchered in their homes and the tales of terror in communities where herdsmen graze their cattle have become too frequent to the point of dimming any assurance that the grazing bill will remedy this ugly trend. More so, hurriedly introducing a grazing bill designed to take over communal lands, without thoroughly and conclusively investigating the killings, and without punishing perpetrators of the dastardly acts, fuels the growing perception that the herdsmen’s notorious activities tacitly enjoy governmental support. This trust deficit is one single major element that will work against the safe implementation of the bill, even if it is passed into law. What is the way forward? 1. While not deprecating cattle-rearing as a viable economic enterprise with huge potential for revenue generation like farming, it must be emphasised that farming - in the sense of the cultivation of food crops and cash crops -which are the economic live-wire of many of the settled communities must not be destroyed, to make way for the grazing routes. 2. To make the grazing reserve bill more acceptable, the government must embark on confidence-building measures, targeted at the likely host farming communities. One way

to build confidence is by setting up a victim support fund to compensate for the human and material losses to persons and communities that have suffered from the deadly attacks of the violent nomadic herdsmen. Going ahead to pass the Grazing Bill into law without any form of reparation is likely to be met with hostility and resistance. Reparation will go a long way in alleviating the sufferings of the people and communities who are at the receiving end of the violence, and bring it, some sort of closure. 3. The setting up of a multi stakeholder committee to streamline the provision of the bill is also necessary to plug identified gaps, reduce the tension and attendant suspicion that have beset the current bill. This will give all the participant groups a sense of belonging. 4. The setting up of an elaborate specialised dispute resolution mechanism that would be proactive in resolving farmers and nomadic settlers’ differences will greatly obviate the desire of the parties to resort to violent self-help to settle their grievances. 5. Instead of opting for outright acquisition of the proposed land for grazing, the proposed grazing commission should rather negotiate for long leases, where the communities still retain the reversionary interests in the acquired land. This approach will placate opposition to the bill, imbuing locals with confidence that they

are not being permanently deprived of their lands. This means that they still retain their freehold titles to the customary lands, and can bequeath them to future generation as issues involving land are very sacred, especially in the Southern part of the country where the landmass is not as massive as in the northern part of the country. Finally, civilised societies - like America, Australia, Canada, South Africa - have since moved away from randomised grazing to the ranching system where the herds of cattle are kept within well-defined boundaries with perimeter fencing to prevent the cattle from straying into the farms of the host communities and which also makes it difficult for rustlers to rustle cows. Another advantage is that it would not require a very wide expanse of land like the grazing routes that may end up not being properly defined or charted. It is suggested here that this arrangement is best workable by public-private partnerships, whereby ranches are set up and the host farming communities are given the opportunity to cultivate livestock or cattle feeds for the benefit of the herdsmen, thereby creating mutually-beneficial relationships. Victoria Ohaeri is the Executive Director of Spaces for Change, a Youth-Development and Policy Advocacy Organisation based in Lagos.

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17.05.2016

The Nigerian Power Sector Reforms: A Forlorn Foray into Darkness Onjefu Adoga

he Nigerian Power Sector Reform Has Come Its Full Circle. Like Copernicus’s Law of Planetary Orbit, it has come full circle in its distorted trajectory. We are back to the hay days of NEPA (Never Expect Power Always). The current conundrum of epileptic and shambolic delivery of electricity to Nigeria’s consumers inadvertently raises new paradigms for total re-evaluation and re-appraisal of the reforms. The silence of the Nigerian power sector reforms drafters, technocrats and drivers is more shocking. That is “…World Bank technocrats…”, former Ministers of Power, past DGs of BPE, past members of Presidential Committees on power sector reforms, past NERC Commissioners, directors of the Power Holding Company of Nigeria etc. Failure has no father. Left to bear the full brunt and consequences of the power sector policy failures are innocuous consumers, manufacturers, power dependent businesses etc. The litanies of policy distortions are as endemic as they are collateral, demanding new practical solutions. How did Nigeria gatecrash into this policy loop? Let us firstly re-evaluate the context and span of the power sector reforms. Historic Over View of Power Sector Reforms in Nigeria “…Electric power generation in Nigeria began in 1896 as a direct consequence of British occupation and colonisation. In 1929, the first Nigerian Electricity Supply Company was established (NESCO). Electricity Corporation of Nigeria (ECN) was established in 1951 as successor to NESCO. The Nigerian Dams Authority (NDA) was established in 1962 to develop the hydro power potentials of the country. In 1972, ECN and NDA were merged to form the National Electric Power Authority (NEPA). The Federal Ministry of Power and NEPA were responsible for all the policy regulation, investments, regulation and operation in the power sector. NEPA was the sole regulator and operator of all electricity facilities in Nigeria for over three decades and was responsible for power generation, transmission and distribution, all before the Obasanjo led FGN finally deregulated and privatised the power sector from 2005…” The present set of power sector reforms commenced in 2005 with the enactment of the Electric Sector Power Reform Act 2005 and establishment of the Nigerian Electricity Reform Commission as the new regulator in the power sector. This policy reforms was spear-headed by the then D.G. of the BPE, Mallam Nasir El-Rufai and master minded politically by then President Obasanjo. We can all agree that BPE, at this stage, did a successful deregulation of the power sector by creating a regulator for the industry and making NEPA an operator in the industry. NERC’s initial Board was inaugurated in 2007 with Ransome Uwa as Chairman. One of the core functions of NERC was to unbundle the entire Nigerian power sector and create successor companies to Power Holding Company of Nigeria (NEPA). The cardinal thrust of the Nigerian policy, legal and regulatory reforms was to break the monopoly of NEPA, improve poor service delivery of electricity to consumers, encourage both local and foreign private participation, involve private capital and management in the power sector, unbundle the sector into generation, transmission and distribution sections by formation of successor companies, address consumer rights, improve productivity, access to electricity, efficiency, affordability, reliability, quality, enhance services, freeing up the Federal Government for sector regulation and long term planning. Eventually 18 successors companies to Power Holding Company of Nigeria were created by the Federal Government of Nigeria with 11 Discos, 6 Gencos and one transmission company of Nigeria. The core investors for the eleven Discos took Abuja, Benin, Eko, Ikeja, Ibadan, Jos, Kano, Port Harcourt, Yola, Enugu and Kaduna. Gencos took over Egbin, Geregu, Kainji, Ughelli, Shiroro, Afam and Sapele. Added to these six Gencos

were two extra power plants funded by private equity with Chinese investors namely Olorunso and Omotosho power plants. Additionally, ten NIPP power plants were to be added to these Gencos namely Alaoji, Benin, Calaber, Egbeme, Gbaramu, Geregu, Ogorode, Olorunsogo and Omotosho. According to Atedo Peterside as the Chairman, BPE Technical Committee of Privatisation in his press briefing on 22 September 2013 reported in Vanguard Newspapers of next day, the expected installed capacity of all six Gencos is 6, 976 MW. The number 6, 517, 988 were required for new meters totaling the sum of N150Billion. The 11 Discos were projected to earn an annual N60Billion for the next 5 years. The final stretch of the privatisation process was the creation of the Presidential Action Committee on Power (PACP), Presidential Task Force on Power (PTFP), the launching of Nigerian Power Roadmap in 2013, the transfer of stranded assets of liquidated PHCN to NELMCO, establishment of NEMSA as the technical regulator for the industry, the liquidation of PHCN and appointment of a Liquidator, the sale of the 18 successor companies of PHCN to Gencos and Discos, creation of a management contract for TCN. Current Myriad of Problems Depending on your perspective, the myriad of problems facing the Nigerian power sector are as complex as they are numerous. From the perspective of consumers, it is low generation of power, unavailability of power itself, militancy, vandalism, metering and billing, increased tariffs, insufficient meters etc. For regulators, it is the inchoate creation of new electricity markets, proper regulation of Gencos and Discos, lack of competition laws, capacity building in the industry, lack of sufficient experts in the industry, policy nomenclatures etc. For Gencos, Discos and TCN, it is low volume of power generation, lack of gas to power stations, vandalism of gas pipelines, militancy, low or poor capacity building, low quality staff, lack of industry knowledge and experience, poor finance, non provision of meters, lack of automation for monitoring purposes, singularity of power source, poor consumer database, non payment of electricity bills by Government agencies and consumers, obsolete equipments, lack of foreign participation etc. For TCN, it is the overloaded national grid, limited transmission capacity and obsolete equipment etc. Nigerian Power Conundrum In the last few weeks, the Nigerian press has been festooned with resonating and audacious headlines. The most prominent will be: “…Power grid collapses, generation drops from 2, 243mw to zero mw-Daily Trust 1/04/16 Page 3…” “… Nationwide darkness worsens… This Day 5/04/16 Headlines…” Daily Trust of 24/03/16 page 17 “…NERC scores electricity companies Discos and Gencos low…” This Day of 30/03/16 states “… MDAS, Military, State and Local Governments owe Discos N58Billion…” This Day 24/02/16 Page 12 states “…TUC says Discos profiting from fraud and wants sale of power plants reversed…” Daily Trust of 26/03/16 Page 41 “…Power plummets from 5, 000 to 1, 500 as consumers reject tariff hike as Senate and Labour Unions reject tariff increase…” In the Guardian of 3/03/16 Page 3 “…Power operators seek $40Billion sovereign guarantee to foreign investors to provide 20, 000 mw of electricity…” This Day 5/04/16 Page 23 “…major gas problems are project delivery and vandalism, International Oil Companies can assist in supply of gas instead of flaring…” This Day of 8/04/16 reads: “... Power sector lost N7.7. Billion to workers strikes in two years-Fashola...” Same This Day reads: “…Delta State Government signs MOU with U.S firm to build 500 mw power plant….” This Day of 11/04/16 reads “...Concerns mounts over non reconstitution of NERC Board…” Daily Trust of 12/04/16 Page 17 reads “…Electricity firms, consumers groan as grid records 161 collapses since 2009…” “…Fashola orders NERC to stop CAPMI metering scheme…” This Day of 26/04/16 Page 23. “…99% of electricity (3, 132mw) lost in one day…Osinbanjo. Punch Newspapers of 26/04/16…” Perhaps the most effective and subtle headline which necessitated the publication of this article

Government has bamboozled its citizens with increased power generation. But actually, we have only witnessed peak power generation capacity of 4, 000mw every other year. There must be a massive power generation revolution. Starting with embedded power plants, small and low range generation plants, multiple sources of power starting with building massive hydro plants, wind, solar, coal plants etc. The Three Gorges Dam in China produces 22, 500mw of electricity, only next to the largest hydro dam in the world, the Itaipu Hydro Dam in Brazil and Paraguay. Another source will be added State Government IPP generation. If every state adds 500mw to the national grid by IPPS as Cross River and Delta states are doing, it means we will have 18, 000mw in one or two years. Nigeria is not ready for nuclear power generation since we cannot handle simple gas power plants. Minister of Power, Works and Housing, Babatunde Fashola SAN

has been Kayode Komolofe’s back page article in This Day of 6th April 2016 which read “…When Silence Is Not Golden…” The article questioned Nigerian consultants for failing to highlight the inefficacy of the privatisation process as a panacea to the Nigerian power sector reforms. Answer: Nigerian consultants have been vocal even if impoverished, neglected and subjugated for World Bank technocrats. We are rightly eulogised abroad but neglected at home. We won’t bear the brunt of failed Government policies alone. The fear of our all powerful FGN is the beginning of wisdom. No consultant wants to be blacklisted or accused of insubordination. Back to the issue on the front burner, an objective evaluation and prognosis of the Nigerian power sector reforms. Local power privatisation problems have been well categorised into non-availability of power itself, low generation, increased tariff with no correspondent increase in power supply, a distorted electricity market and inability to create a new functional power market, poor gas supply and vandalism of gas pipelines, estimated billing by Discos, insufficient meters etc. For regulators, it is the creation of new electricity markets, lack of proper regulation of Gencos and Discos, lack of competition, lack of capacity building in the industry, lack of sufficient technical experts in the industry, increased tariffs, the introduction of policy nomenclatures such as multi-year tariffs and bulk traders (terms confusing to ordinary consumers) etc. On the international best practice scenarios, comparative shortfalls from the Nigerian power sector reforms are: the adoption of the core investor model as against equity or share transfer model, payment of money-consideration as the ultimate determinant of choice of buyers as against technical knowledge and expertise, absence of post privatisation regulation, cumbersome Government bureaucracy, lack of capacity of buying firms and ancillary sectors in the value chain, overlapping electoral circles and non-continuation of power policies, absence of technical expertise, lack of inclusiveness of all stakeholders, lack of consumer rights advocacy, lack of duplicity of power generation sources, market monopoly, lack of competition laws, financial constraints, non-involvement of foreign capital and expertise, distorted regulatory and policy frameworks, corruption, lack of transparency, inefficient and incompetent sector players, poor judicial enforcements for breach of performance contracts or sanctity of transfer contracts, lack of impact studies or pilot schemes, insufficient labour and staff welfares schemes, lack of quality or standards requirements etc...” For more information read Pierrick Judeaux at HYPERLINK "http://www.devex.com" www. devex.com titled“...Overcoming hurdles between power master plants and power plants in Sub Saharan Africa…” Recommended Solutions As insurmountable as the cumbersome Nigerian power sector challenges appear, all challenging problems can actually be solved with simplicity, honesty and proper planning if all stakeholders decisively engage and resolve these challenges. Increase Power Generation For the last 20 years, every living Nigerian

Decentralise Federal Power Structures At an Aelex law firm Annual Lecture some years ago titled “….How Ghana Kept the Lights on…” The Ghanaian Minister for Power recalled how Ghana then enveloped by darkness, secured a loan of $300million from the World Bank and built two power stations, one on the Upper Volta River, the other on the lower Volta River. All of sudden, the entire nation of Ghana was lit up and eventually celebrated a year of non-power outage. This simplicity and transparency can be duplicated in Nigeria. With the Billions of Dollars sunk into the power sector in Nigeria, where is the transparency, honesty and simplicity. The FGN is the major player and participator in a sector that must be built on communal inclusiveness, local communities and industry engagement. Building 10mw IPPS per local Government can work magic in the electricity sector. Diversification of the Power Sector The current National Assembly must spearhead new power sector reforms in Nigeria. The Electric Sector Power Reform Act 2005 must be re-evaluated and reviewed with new thresholds and service delivery standards. We can start with diversification of the power sector. China, “…the world’s largest producer and consumer of power produces most of its 1505 Gigawatts of electricity from diversified sources such as coal, thermal power, natural gas, hydropower, wind power, solar power, nuclear power…” India produces over 12, 000mw from wind energy alone. The power sector reforms ought to have been based on hydro, gas and coal plant foundations. New policies must be initiated to attract renewable energy and technical expertise for hydro power, coal, solar power and wind energy power plants. The Mambilla hydro power station must be completed now, with a projected capacity of 3, 200mw. Gas dependant power plants are efficient if you supply gas. But with no gas, they are comatose. There are several options available, power joint ventures, public-private partnerships, foreign direct investments, new strategic power policies into renewable energies such as solar energy, wind and coal power plants. South Africa recently completed a $14Billion renewable energy project and added 3, 500 mw to its power capacity. Guinea is building the new Kaleta and Souapiti Dams with installed capacity of about 800mw, set to double its electricity capacity. Rwanda is currently building the largest solar plant in East Africa. We cannot afford nuclear power plants as we cannot comply with the safety requirements. Creation and Stabilisation of a New Electricity Market Before the power sector reforms, NEPA had been structurally aligned to then market economies of state capitalism. “…The provision of power was essentially state service and not based on a business structures. Hence NEPA and PHCN operated as vertically integrated monopolies operating with generation, transmission and distribution components, all of which the Federal Government owned and operated….” See the Nation Newspapers of 22nd March 2009. The Power Sector reforms failed to neither create a new electricity market nor successfully transit the state modeled service market into a free market economy. Hence the laws of demand and supply have not been able to

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17.05.2016

THE LIGHTER SIDE/13

LEGAL HUMOUR

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

Dear Counsel, I am an avid reader of your weekly column. Please, I write to seek legal advice from you. I wrote a book in tribute to an important personality and all efforts to see the person for the past two years has proved abortive and I want to go ahead and publish the book. Please advise. Are there any legal implication? The content of the book is complimentary about the person. I look forward to hearing from you. Thanks, yours sincerely, E. A., Lagos. Dear E.A., Thanks for your interest in THISDAY LAWYER. I would strongly advice that you do not publish the book without the express consent of the subject matter of the book. No matter how well intentioned your aim of publish-

ing the book might be, it is absolutely necessary for the person you are writing about to know what you are writing about him. He might not want certain information about him in the public domain. Most importantly, there are inevitable pecuniary interests which must be clarified. It is a book that will be sold; therefore the consent of the person you are writing about must be obtained expressly. Finally, his privacy must be guaranteed. How did you obtain the information about the person you are writing about, even if it is positive? It would amount to an invasion of his privacy if you go ahead to write about certain aspects of his life without his knowledge and approval. You are therefore advised to intensify efforts to locate him and get his express consent. Talk to people who might know him, send messages on social media indicating your intention to meet him. Given this age of information technology, it should not be too difficult to reach him.

THE NIGERIAN POWER SECTOR REFORMS: A FORLORN FORAY INTO DARKNESS function in this distorted new power market. The solution would have been to keep matters simple. Separate the most strategic power players into three market players, consumer, provider and regulator, then create a buffer period of a minimum of 5 years for capacity building, increased power generation, improved quality, proper pricing, replacement of equipment, collated a database of all genuine consumers, automation and affixing of all new meters, then finally invite the private sector to participate in the new power market. Involvement of Foreign Capital and Technical Knowledge The entire privatisation of power plants was concluded in Nigerian with little or small foreign direct investment and technical knowledge. The acclaimed telecoms revolution in Nigeria was made largely possible by the involvement and participation of MTN. They brought in foreign capital, technical knowledge, assisted in creation and stability of a telecoms market etc. Why can’t Nigeria involve foreign technical knowledge and capital in Nigeria’s power privatisation? Why can’t we engage American, Canadian and Chinese power companies such as General Electrics, Pepco, Pacific Gas and Electric, American Electric Power, Ontario Power Generation, Manitoba Hydro etc. The United States recently launched the Power Africa Road map and Electrify Africa Act intended to deliver 30, 000mw of additional capacity and 60 Million new connections. Nigeria must tap into this opportunity and increase its power generation capacity. The Electrify Africa Act is reinforced by the AFDB new deal for Africa which co-ordinates all existing power donors and scale up AFDB funds. Post Privatization Regulation The incoming Board of NERC will have to reinforce post privatisation regulation of all Discos and Gencos to ensure they deliver maximum efficiency standards in the electricity sector. All Discos and Gencos who fall short of this standards and quality requirements should be stripped of their ownership and control of their power plant and ownership transferred to new operators. Capacity Building in the Power Sector The FGN must still subsidise power, at least for now. Discos and Gencos are yet to fully exhaust local financing sources as IPOS, bond markets, private equity financing etc. Restructuring all Discos and Gencos can start with sound corporate governance structures ensuring maximum efficiency at lowest operational cost. Staff training and recruitment must to be re-evaluated. Former staff of NEPA and PHCN can be reabsorbed into the private power companies. Labour Unions must be empowered and given inclusiveness rights over staff welfare. Proper training and staff orientation will surely result in increased power supply. We must also increase advocacy in consumer rights activism ensuring more Nigerians buy meters, pay their electricity bills etc.

• Question: What's the similarity between a lawyer and a dentist? Answer: Both do filing and extraction. • Andrew: Do you believe in free speech? Friend: Why, of course! Andrew: Good! Mind if I use your telephone. • Policeman: The signs all say, "Speed limit, 15 miles an hour." Motorist: But officer, how could I read them when I was going over 50? • Custom Inspector: What have you to declare? Traveler: I declare I'm glad to get back home. • Johnny: I am on my way to visit my out laws. Friend: You mean your in-laws, don't you? Johnny: No. Outlaws. They're a bunch of bandits. • Judge: The charges against you are that you ran over this man, and also speeding. Motorist: Yes, your Honour - I was hurrying to get over him. • Judge: The last time I saw you, I told you that I didn't want to see you here again! Prisoner: That's what I tried to tell these policemen, your Honour, but they wouldn't believe me.

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Proper Regulation and Supervision of Discos and Gencos The current Minister of Power is overwhelmed by the enormous responsibility of combining three powerful Ministries. Solution, separate all three Ministries and tackle Power Ministry alone with an electricity engineer expert with a minimum of a PHD in electrical engineering as Minister. As we speak, the Board of NERC remains unconstituted in defiance of the ESPRA Act 2005, four months after the expiration of the tenure of the previous Board. The FGN should immediately re-constitute the Board of NERC to enhance the proper regulation and supervision of the electricity sector. The new NERC Board must immediately impose optimum standards and quality delivery of services on the power sector. Human Capital Development in the Power Sector NERC once had a scholarship for post graduate training in the University energy curriculum. Whatever happened to this scholarship program? The best Nigerian engineering and electrical experts are not been engaged by the Nigerian electricity sector. Why can’t experts like Professor Bart Nnaji be re-absorbed into the power sector? All previous technical engineers of NEPA and PHCN whom Billions of Naira was spent on for training can be reabsorbed into Discos, Gencos and TCN etc. Transmission/Operational Issues Nigeria must build new power transmission lines. 20 years ago, Abuja virtually had no transmission lines. But over 20 years, transmission lines and poles were laid underground and light can now be moved around Abuja. Our transmission lines are old and outdated. Gradual replacement can be initiated. But funding remains pivotal. The FGN will have to seek for soft loans from International financial agencies and donors and gradually begin to construct new transmission lines among major cities in Nigeria. Provision of Gas “…Nigeria is the 4th largest producer of LNG gas with a reserve of 185 Billion cubic feet but flares half annually…. says Managing Director of NLNG in This Day of 26th April 2016…” Whatever happened to the Nigerian Gas master plan? A major defect in the Nigerian Power Sector Reforms is the consolidation of gas powered plants in the highly volatile Niger Delta region. A Majority of these gas plants were built without any communal inclusiveness or consultation. Why not re-distribute these gas plants across the geographical spread of Nigeria and find alternatives to gas pipeline supply. A former head of the NNPC Gas Division did proffer several solutions in This Day 5th April 2016 page 23 where he re-stated that “…major gas problems are project delivery and vandalism, International Oil Companies can assist in supply of gas instead of flaring…” Why can’t the FGN issue gas delivery policies to all IOCS requesting for supply of agreed volume of gas supply to all power plants.

Tackling Corruption in the Power Sector Systematic corruption has been the cankerworm that has eroded service delivery in the power sector for the last two decades. Year in, year out, power expenses are budgeted for in the national budget, only to disappear and to be re-budgeted for the next year. Massive corruption is responsible for the non replacement of power equipments in the last 16 years. As at today, nobody knows the exact financial cost of power investments in Nigeria in the last 16 years. At a time, $16Billion went down the drain into power sector reforms. The Permanent Secretary of the Ministry of Power, Godknows Igali, had stated that the FGN has spent N2.7 Trillion on power sector ($13. 2 Billion) plus an extra $8.2 Billion on NIPPS from 1999-2015, totaling $21B. Add another $5Billion for the rural electrification project and $1B here and there for ancillary power projects. For certain, at least $30Billion has been sunk into the power sector though industry experts have estimated the total spending in the last 16 years to be in the region of $50Billion. Then what happened to the proceeds from the sale of power PHCN power plants and the sale of all 10 NIPP plants etc. Where did all these monies go to? Our power sector technocrats in the last 16 years certainly have auditing and accountability questions to answer. The power sector, like the oil and gas sector, needs a comprehensive audit and review of all its financial activities in the last 16 years. Metering For proper metering, Discos must take a proper and comprehensive collation of all power consumers in their jurisdictions before issuing new meters under direct purchases or CAPMI systems. The bulk of Nigerian electricity consumers don’t pay for power due to either over population, illegal connections, urban and rural isolation etc. Discos need to take out time to re-number and re-classify all electricity consumers in Nigeria for the purpose of issuing new meters. Stakeholders’ Conference All the above reforms must be kicked started with a National Stakeholders’ conference which can be coordinated by the Ministry of Power and NERC. To be invited are all stakeholders on the power value chain in Nigeria namely all industry consumers, manufacturers, Gencos, Discos, TCN, regulators such as NERC, NEMSA, NELMCO, etc. At this conference, Government will hear all parties out and immediately put in a place an effective mechanism to tackle all issues in the power sector. Conclusion The implementation of the above recommendations, to the best of my knowledge will certainly and surely improve the quantity and quality of power supply to Nigerian businesses and homes. Onjefu Adoga Esq. is the Principal Partner of Brooke Chambers.

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17.05.2016

THE CANVASS MICHAEL NUMA

michaelnuma@thecanvasscolumn.com

The Rise of Arbitration in the Financial Services Industry

he financial service industry traditionally favours litigation before national courts ahead of international arbitration. Arbitration practitioners often consider bankers as being ungrateful for not showing more gratitude to the many advantages that arbitration offers…. Conversely, bankers reproach arbitrators for not understanding the basics of a banker’s business. The distinct attitude of the financial sector towards arbitration continues to the present day. In 2013 our survey at the School of International arbitration found out that while 53% of respondents in the energy sector, and the 68% in the construction sector, preferred arbitration as a means of resolving international disputes, in the financial service sector 82% preferred to resolve international disputes through litigation. London and New York are preferred options in most prorogation agreements (i.e choice of court agreements) and generally had the negotiating power to secure the acceptance of its preference. The reasons for this policy is not far fetched. Firstly, the courts in England and New York have long had a reputation for providing a high degree of legal certainty, in particular by enforcing written agreements in accordance with their terms, while doing so in a commercially sensible fashion. The quality of Judges which by implication impacts on the quality of judgments has generally been high standard. Since the financial institutions tend to wield substantial influence over their contractual terms, this results in a robust and creditor-friendly judicial culture. By contract, financial institution tends to feel that arbitration is less likely to deliver a predictable outcome. A typical example, in party appointed arbitrations, some uncertainty is introduced by one member being appointed by the debtor or strong dissenting view held by any of the members. Another reason for the preference for national courts by financial institutions is the appreciation of summary judgment procedure which is afforded by the rules of most national courts especially in the two cities under reference. In Nigeria, a large number of the states have incorporated in their Civil procedure rules tailored after the English CPR either the undefended list procedure or summary judgment procedure, which are all for liquidated money demand claims. This is particularly valued when it is a liquidated money demand. On the flipside, the right under most major arbitration laws for a party to have a fair hearing makes default judgment in arbitration impossible and summary judgment procedure seemingly impossible. It is true therefore that the availability of summary judgment can enable debt to be recovered more quickly through litigation than arbitration. However, the advantages sometimes can be overstated. Post-crisis finance litigation suggests that it is not so difficult for a recalcitrant debtor to resist an application for summary judgment. A plausible jurisdictional

objection or uncertainty in the sum is enough for the trial judge to transfer the matter to the general cause list and order pleadings which leads to a full blown trial which is often protracted for years, even when the financial institution regard the matter as a simple debt claim. Discoveries, interrogatories and other pre-trial proceedings will compound the process. Equally, just as accelerated decision-making in litigation can be hard to achieve, so too there are ways to accelerate decision making in arbitration. For example, a parties’ ability to adopt arbitral procedure to suit their needs can enable decisions to be resolved on quite short timetables in certain cases- often more quickly than would be possible in national courts. For instance, some clearing system rules provides for fast-track arbitration scheme to resolve disputes, reflecting the facts that time is necessarily of essence in this context. Another notable advantage of National Courts in the eyes of financial institutions is that they have generally appreciated the greater certainty available in litigation that applies the doctrine of precedent. A court decision can provide public guidance to the market on the interpretation of standard documentation such as the ISDA master agreement. A leading case on a particular issue can therefore eliminate, or at least reduce, the risks arising from that issue henceforth. For as long as banks favour precedent rather than fearing it, this is likely to represent an advantage of litigation over arbitration. Howbeit, these advantages of litigation over arbitration stated above, which is largely dependent on the jurisdiction with an advance legal system, the rise of arbitration in the financial industry is quite remarkable. The figure given above from our SIA Queen Mary Survey in 2013 has some way to go before it challenges the widespread preferences for litigation in the financial services industry. Nevertheless, the question of how much arbitration is preferred is distinct from the question of how widely it is used. While empirical data about a confidential

EX-PARTE ORDERS OF INJUNCTION DO NOT LAST AD INFINITUM Rules, a person affected by an ex-parte order of injunction may within seven days apply for the order to be discharged and that such order shall not last for more than 14 days, either after an application to discharge the order has been filed or after the application has been argued. Thereafter, the Supreme Court considered the effect of the amendment to the interim order of 13 December 2013, and held that, by the amended order of 27 December 2013, the original order of 13 December 2013 had ceased to exist. The Supreme Court took the view that although an amendment generally takes effect from the date of the document sought to be amended, in the instant case, an application of the doctrine of relating back, will lead to absurdity as same will

process is inevitably hard to find, there is a broad consensus that arbitration is used more by the financial service industry than it used to be. What appears to be happening is that, while banks would generally prefer to provide in their dispute resolution clause for litigation if that is a sensible choice, they are opting for arbitration out of a pragmatic recognition of its benefits in certain circumstances. Amongst the numerous advantages of arbitration few factors are regarded as relevant by financial institutions to a choice of arbitration. The most important, is the greater ease with which, generally speaking, arbitral awards can be enforced across borders than court judgments. The search for yield has led to an increasing question arises more acutely as to whether a judgment of the financial institutions preferred court world be enforced. A global convention for the enforcement of judgments has to date, proven impossible to conclude. In its absence, there are only various partial regimes to enable a court judgment of one country to be enforced in another. There is an effective regime for enforcement of judgment in the EU under Brussels Recast 1215/2012 and another regime by which English Judgments can be enforced in some countries of the commonwealth and vice versa. There are a number of bilateral treaties for the reciprocal enforcement of judgments. Under those regimes, enforcement of court judgments across borders depends on the vagaries of the local law of the place of enforcement (lex loci). In most jurisdictions, a judgment creditor will be required to commence fresh proceedings to recover the judgment sum already adjudged which is not without its procedural objections or even have a full rehearing on the merit. A typical example is the ACCESS BANK v AKINGBOLA (2014) 3 CLRN page 124-146, wherein, the applicant after obtaining a judgment in the English court sought to enforce same in Nigeria under the reciprocal Enforcement of Judgment Act and Rules of 1958. This attempt was vehemently resisted and eventually lead to a setting aside of the order for leave to enforce by Candide-Johnson

J of the Lagos State High Court on jurisdictional grounds. Even between EU countries and in the United States with a clear policy of reciprocity, it is not easy to enforce a court order of one in the other. The comparative advantage of enforcement in arbitration arises because it benefits from the global regime for the cross – border enforcement of arbitral awards under the New York Convention of 1958. Essentially, the New York Convention imposes an obligation on the courts of contracting states to recognize and enforce arbitral awards upon presentation of the arbitral award and the underlying arbitration agreement, subject only to specific and limited grounds for refusal, which do not include a review of the merits. There are now about 151 contracting states to the New York Convention. More fundamentally, most contracting states have domesticated the provisions into their National Legislation such as the ACA in Nigeria. Though the practice of enforcement of an award can of course be trickier than the theory afore-stated. Nevertheless, the New York Convention regime still compares favourably with the restricted means available for enforcing court judgments abroad. While the relative ease of enforcement is the leading reason for the growing use of arbitration in financial transactions, a further reason is that, while many counterparties to financial institutions remains comfortable with litigation in London or New York as a neutral alternative to litigation in their home jurisdictions, some counterparties in other parts of the world are increasingly resisting a requirement to litigate in these cities. Large corporations in the international circles considers it as disputes resolution in their lenders home turf being the acclaimed financial capitals of the world. Accordingly, arbitration is sometimes chosen as a neutral alternative to the leading commercial courts preferred by banks and the local courts of the borrowers. From the financial institution perspective arbitration is preferable as a second choice to litigation in local court. Beyond these general factors behind the growing use of arbitration, certain corners of the financial services industry may have particular reason for preferring arbitration. Thus, the confidentiality that can be achieved in arbitration is an important reason for its use in private wealth industry, while some securities exchange provides for arbitration in their membership rules as it enables a bespoke, and often fast-track, dispute resolution scheme to be established. A further factor has been the greater involvement of state entities and international organizations in the financial markets. Such entities typically resist submitting to the jurisdiction of foreign courts and prefer therefore to arbitrate disputes. The result of these various factors has been a substantial growth in the use of arbitration by the financial sector, in some parts of the world, notably Asia, but increasingly so in Africa, arbitration has become arguably the market standard for (by way of example) syndicated loans and derivative transactions. ……. To be continued.

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imply that, the 1st Respondent had seven days from 13 December 2013 to apply to discharge an order, the contents of which, did not come into being before 23 December 2013. On the premises of the above reasoning, the Supreme Court held that the 1st Respondent’s application to discharge the interim orders was filed within time. Additionally, the Supreme Court referred to the trial court’s proceedings of 27 January 2014, in which the lifespan of the interim orders were extended, and held that as at the date of the said proceedings, the interim orders of injunction made on 13 December 2013 and amended on 23 December 2013, had both expired by effluxion of time, pursuant to Order 26 Rule

12 (1) & (2) of the FHC Rules. Furthermore, the Supreme Court held that even if the interim orders had not expired, the trial court erred in law in extending the life span of the order in the face of a pending challenge to its jurisdiction. The Supreme Court relied on the case of PENNOK LTD v HOTEL PRESIDENTIAL LTD (1982) 12 SC 1. The Supreme Court declined to determine issue number five, on the basis that same was rendered otiose in view of its determination of issue number four. Thereafter, the Supreme Court, having resolved all the issues raised in favour of the Respondents, dismissed the appeal. Representation: For the Appellant: Ricky Tarfa SAN with him,

A. J. Owonikoko SAN; J. O. Odubela, A. Malgwi, M. Bamidele, O. Keshinro (Ms) and O. U. Asuquo. For the 1st Respondent: D.D. Dodo SAN with him, Etigwe Uwa SAN; Nasir A. Dangiri, Audu Anuga, Paulyn Abhulimen, A. F. Jumbo, Kauna Pemzim, A. A. Dodo, L.I. Ataghor, S.A. Eigege, Gimka Ezeoke, Nancy Chika Obi, Munachiso Michael, Adewale Adegboyega, Oluwaseyi Okupe, Afoma Chiegboka. For the 2nd and 4th Respondent: Uche Nwokedi SAN with Asimuyi Ayodeji For the 3rd and 5th Respondent: A. Z. Enwewe Reported by Tochukwu J. Anaenugwu, Aluko & Oyebode, Lagos

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Pure Economic Loss Arising from a Bank’s Negligent Mis-Statements Made to a Non-Customer Olumide K. Obayemi

ne of the legal issues discernible from Honourable Peter O. Affen’s January 25th, 2016 Judgment in FELIX ORBIH v FIRST BANK OF NIGERIA PLC & 4 ORS, Suit No. FCT/HC/CV/3675/2013 (“ORBIH v FBN”) was the scope and limit of a Bank’s liability arising from negligent misstatements made by a Bank to a non-customer, especially within the legal parameters laid down in HEDLEY BYRNE & CO LTD v HELLER & PARTNERS LTD [1964] AC 465 and CORNISH v MIDLAND BANK PLC [1985] 3 All ER 513. In Hedley Byrne, the plaintiffs, an advertising firm, extended credit for a third party (Easipower) on the basis of a creditworthiness reference provided by the defendants (Heller & Partners Ltd—Easipower's bank). The reference was an innocent but negligent misrepresentation. Easipower went out of business and the plaintiff sought damages for pure economic loss from Heller & Partners. The issue was whether the duty of care applied to statements that caused pure economic loss. The lower courts found that the pure economic loss could not be recovered as the defendants did not owe the plaintiff a duty of care. The House of Lords found that a duty of care was owed. However, the defendants had used an effective disclaimer of liability, so the losses were not recoverable. The Hedley Byrne rule stated that a duty of care is owed if there is a special relationship between the claimant and defendant. A special relationship arises if there is an assumption of responsibility by the defendant (if the defendant knows the claimant is relying on their special skill) and the claimant reasonably relies on the defendant's statement. Coming back to ORBIH v FBN, in 2012, Diamond Bank Plc (Diamond) was awarded a construction contract by Trade Block. One Dr. Ofeimum then brokered a meeting between Diamond and Dr. Felix Orbih (Orbih) where Orbih was promised consultancy fees for “putting the deal together,” pursuant to which he signed a letter of consent to mortgage his property, even though Orbih did not sign a legal mortgage at any time. Further, Diamond secured a loan from First Bank of Nigeria Plc (FBN), while using Orbih’s property as collateral. Although, Orbih was not the borrower, FBN gave several undertakings to Orbih Also, in a separate Memorandum of Understanding (MOU) between Orbih and Diamond, Diamond’s sole owner, Dr. Ademola Akinola agreed to deposit his own (Akinola’s) property title deeds to be used to offset the loan should Diamond default on the principal loan to FBN. Orbih had relied on FBN’s stated 'conditions precedent to drawdown' as terms that must be fulfilled before the customer would be allowed to disburse the loan proceeds. Yet, to Orbih’s detriment, FBN did not observe these important terms. During the trial it was revealed that FBN (as the Lender) did not observe the conditions of the loan that were meant to protect the 3rd Party who had provided the collateral. FBN’s witness, Mrs. Morounkayo Matilukuro, testified that under the standard banking practice, prior to releasing funds to borrowers (such as Diamond) FBN usually insisted/requested for: • loan utilisation and bill of quantities in order to avoid diversion of funds to other endeavours; • the above documents must be in place before funds could be disbursed to the borrower, and • negligence [on the part of the bank] would only arise if funds disbursed into the borrower’s account are allowed to be moved without ensuring that these two documents were in place. However, Diamond (the borrower in Orbih vs FBN)'s statement of account (Exhibit P5) showed that the loan proceeds were disbursed to Diamond January 27th, 2012, with N27,750,000.00 being transferred from (Diamond) the borrower’s account that same day. Negligently, FBN also allowed additional sums of N5m and N500,000 to be transferred also on January 27, 2012 from Diamond’s account without any request for fund utilisation or bill of quantities to convince FBN that the funds would be utilised for the project. FBN

agreed under oath that, ordinarily, the beneficiary of any payment should be reflected in the statement of account so that there would be no doubt as to the destination of the payment, but that may not be the case in special circumstances, adding that it depends on the person posting the payment. The facts adduced at the trial also showed that the beneficiary of the sum of N27,750,000.00 transferred on January 27, 2012 was never stated in any statement of account, and …rather, what is written in the column where the beneficiary’s name ought to be is “NEFT Amount: Diamond City Estate Ltd”. At the trial FBN’s main witness equally conceded that she was aware of the risk of diversion of funds when the Bank carried out a credit appraisal of this transaction; and that no prudent banker ought to disburse moneys to a customer it knows was very likely to divert funds meant for a project. When pressed to confirm that FBN proceeded to grant the facility despite being aware that Diamond was likely to divert funds meant for the project, FBN’s witness stated that "Yes, we granted the loan to the 2nd Defendant"; and that they did not disclose to the Plaintiff that there was a risk of diversion of funds by the 2nd Defendant throughout the period the Plaintiff interacted with the Bank. Further, FBN’s witness agreed that • the 'conditions precedent to drawdown' were terms that must be fulfilled before the customer would be allowed to access the facility; • the "CBN CRMS and CRC/CRS" are written credit bureau reports conducted on customers borrowing money from any bank through the Central Bank of Nigeria which were duly generated; and • that Orbih complained of non-compliance with the stipulated conditions However, FBN could not confirm whether the credit bureau reports were tendered in evidence in the proceedings, even though FBN conceded that these credit bureau reports were crucial in demonstrating a customer's creditworthiness and that it would be reckless for FBN to have extended credit to any customer in the absence of these credit bureau reports. FBN’s witness also conceded that a person dealing with FBN (in this case, Orbih) would be right to reasonably believe that FBN would take every precaution to ensure that its customers (in this case, Diamond and Dr Akinola) were creditworthy before extending credit facility to them. Other crucial factors showing FBN’s negligence were: • the loan offer to Diamond was to have lapsed and the facility not disbursed if any of the conditions precedent was not complied with; and • FBN was equally under an obligation to ensure compliance with the conditions subsequent to utilisation of funds which come to play after disbursement and are essentially the same as the conditions precedent to drawdown. The learned trial judge properly identified the main issue in the case, i.e., “the question is whether there is an enforceable legal mortgage over the Plaintiff's property.” However, for the purpose of negligent misrepresentation that is the subject of this paper, it was clear that Orbih, upon being introduced by Dr. Ofeimun (5th Defendant) to the 2nd, 3rd and 4th Defendants and accepting in principle to use his property at No. 17 Negro Crescent, Maitama, Abuja as collateral for the credit facility but before signing the MOU, Orbih visited FBN's Zuba branch on January 4th, 2012 and met with John Kuram (Relationship Manager) and Morounkayo Matilukuro (Business Manager) who confirmed to him the existence of a contract between Trade Block Ltd and Diamond City Estates Ltd and assured him that Orbih would incur minimal risk as there were stringent conditions precedent to drawdown and conditions subsequent to utilisation of funds and could proceed to assist Diamond with a third party legal mortgage to secure the proposed facility; and that being satisfied with the assurances and/or representations made to him by these FBN officials—a credible institution, Orbih proceeded to execute the MOU wherein he agreed to use his property to secure the facility granted to Diamond but subject to the execution of a deed of tripartite legal mortgage in favour of First Bank of Nigeria PLC. Thus, the fact that the proceeds of the facility were disbursed directly to Diamond and Akinola without compliance with the conditions precedent to drawdown and conditions subsequent to

Customers in a banking hall

utilisation of funds frustrated the repayment of the facility; and that were it not for the deliberate misrepresentation of FBN’s officials, Orbih would never have agreed to use his property where he lives with his family as collateral for the transaction for any amount of money, no matter how attractive. Based on the above negligent acts of FBN, the learned trial Judge (Hon Affen) held thus: However, it occurs to me that the business of banking does not consist in merely granting loans/overdrafts or other credit facilities to customers and recovering them through foreclosure and sale of property pledged or mortgaged as collateral without more. No. Rather, banking entails taking such needful precautionary steps as the nature of the transaction requires in order to ensure that customers to whom credit facilities are extended repay the facilities as agreed. I should think that such steps will necessarily include (but not limited to) ensuring that conditions precedent to drawdown and conditions subsequent to utilisation of funds as contained in the letter of offer duly accepted by the customers are scrupulously observed and complied with, especially in situations (such as the present) where the collateral for the facility is furnished by a third party. Hon. Affen went on to hold that a Bank ought not to negligently induce a party: A banker must refrain from making material misrepresentations which he knows or ought reasonably to have known will induce a third party to act as guarantor or pledge his property as security for a credit facility granted to another; or from doing anything to frustrate the repayment of the facility by its customers who are the primary obligors, such as allowing disbursed funds to be moved by the customer in complete disregard of control mechanisms put in place to prevent diversion of funds merely because there exists a third party collateral that could be foreclosed and sold to recover the facility and accrued interest. I take the considered view that where an official(s) of a bank (such as the 1st Defendant) makes material misrepresentations relating to the terms and conditions of a loan transaction between the bank and its customer to a third party (such as the Plaintiff) and/or omits to disclose material facts which induced that third party to act as a guarantor or surety and/or to pledge his property as collateral, the bank owes a duty of care to that third party [see CORNISH v MIDLAND BANK PLC (1985) 3 ALL ER 513], and is bound to exercise reasonable care and due diligence in the discharge of its part of the bargain by ensuring that the terms and conditions upon which the facility was granted [in this case, the conditions precedent to drawdown and conditions subsequent to utilisation of funds] are scrupulously observed and complied with. Therefore, Affen held that where a Bank has negligently misrepresented facts to a party, such a bank would lack the capacity to contractually enforce any right accruing from such misrepresentation: It is a rule of first principles that a party seeking to enforce a contract must not be in breach of his own obligations under the same contract, and I reckon that the right of a bank (such as the 1st Defendant) to move against

property pledged as security will arise if, and only if, the bank has discharged its part of the bargain. But where the bank acts negligently and/or treats the terms and conditions of a credit facility with utter contempt or reckless abandon and thereby renders repayment by the customer (as primary obligor) impossible, the bank is not at liberty to move against the security put forward by a third party. Hon. Affen’s ruling is “on all fours” with CORNISH v MIDLAND BANK PLC [1985] 3 All ER 513, where the plaintiff agreed to guarantee her husband's loan application, by signing a second mortgage on her house. The bank clerk, employed by the defendant, advised the plaintiff of the implications of signing the mortgage. However, the clerk inadequately explained the document and failed to highlight that signing meant the plaintiff was liable for all her husband's past, present and future borrowings. Shortly after the mortgage was signed the marriage broke up. Despite being aware of the marriage breakdown the defendant made further loans to the husband. When the mortgage was redeemed the plaintiff was left with very little money from the sale of the house. It was held that a duty of care was owed as the bank clerk had taken it upon himself to advise the plaintiff, it was reasonably foreseeable that she would rely on the advice and he should have made sure it was complete and correct. However, in CAPARO INDUSTRIES v DICKMAN [1990] 2 AC 605, the English House of Lords took a different position. There, the plaintiff bought shares in a company, Fidelity, in order to make a successful takeover bid. The plaintiff relied on Fidelity's accounts prepared by the defendant auditors. The accounts showed that Fidelity were making a profit but in fact the company was making a loss. The plaintiff made a loss as they bought the shares for an excessively high price. The House of Lords found that the defendants did not owe a duty of care to the plaintiff because the necessary special relationship could not be established. A defendant will have assumed a responsibility towards the plaintiff and a special relationship established if the following four stage test is satisfied: • The adviser knew the purpose for which the advice was required. • The adviser knew that the advice would be communicated to the advisee, either specifically or as a member of an ascertainable class. • The adviser knew that the advisee was likely to act on the advice without further independent inquiry. • The advice was acted on by the advisee to his detriment. The courts have tended to narrowly construe the requirement that the adviser knew the purpose for which the advice was required. Yet, under the CAPARO INDUSTRIES v DICKMAN rules, the reasoning of Justice Affen in ORBIH v FBN is still supported that FBN is liable for damages occasioned to Dr. Orbih via FBN’s negligence. In conclusion, it must be pointed out that the most common defence to a claim to recover damages for pure economic loss caused by a negligent statement is that a valid disclaimer exists. This defence was relied upon in Hedley Byrne. However, there are now statutory limitations on defendants attempting to exclude liability for negligence. Dr. Olumide K. Obayemi is with Lagos State University.

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17.05.2016

T H I S D AY • TUESDAY, MAY 17, 2016

POLITICS

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

EXECUTIVE BRIEFING

Fuel Price Hike: FG’s Hard Sell Policy After announcing the decision to deregulate the petroleum sector and the resultant hike in price of petrol, which many consider as inflicting more pains on the people, one major task before the federal government now is how to make the citizenry understand the gains of the policy, Shola Oyeyipo writes

hen the Minister of State for Petroleum, Dr. Ibe Kachikwu, announced the ‘guided deregulation’ policy in the petroleum sector on Wednesday, May 11, 2016, the thinking of the federal government was to increase and stabilise the supply of petroleum product, create level playing field for any Nigerian entities to import the product subject to existing quality specifications and other guidelines issued by regulatory agencies and ultimately reduce the price of fuel. However, marketers will be allowed to import the product on the basis of the forex they procured from secondary sources and that was what brought about the N145 new price for petrol. The reason is simply because the marketers are unable to get the needed forex to import the product from the primary sources. Previous increases in the price of petroleum product in Nigeria have always been met with stiff resistance by the people because of direct impact it has on livelihood. Hence, while some see the gains of the policy and are supporting it, the labour body and other civil society groups are already spitting fire and brimstone, vowing to shut down the country if the government does not revert to the N86.50 initial price. Minutes after the announcement, the NLC General Secretary, Dr. Peter Ozo-Eson, described the increase as “insensitive.” He said NLC will resist it. The NLC position is that the decision is cruel at about 80 per cent increase and the fact that it is tied to the black market exchange rate was unacceptable. Therefore, the NLC has given government a-four day ultimatum to reverse its decision or face the wrath of workers. Their Trade Union Congress of Nigeria (TUC) counterpart, in a communique signed by the President, Comrade Bobboi Bala Kaigama and Ag Secretary-General, Comrade Simeso Amachree, has also given the federal government five days ultimatum, which expires tomorrow, to abolish the new petrol price regime and revert to old pump price. The TUC has vowed to interface with the NLC and its civil society allies to plan

As labour poses for showdown, checks have shown that the average Nigerians is still waiting to know how the policy positively affects them. Not many are aware of the import of the new price regime on them, except that it brings hardship. The people need to be told that as in the case of mobile phones, with the policy, time will come that competition is expected to drastically push the price of petrol down

Kachikwu…executing a contentious policy

massive protests against what it also called “insensitive” fuel price hike. The National Association of Nigerian Students (NANS) was even more aggressive in its approach to the issue as it threatened to go violent with the federal government over the announcement. They vowed to shut down strategic government agencies in the oil sector, in particular, the Nigerian National Petroleum Corporation (NNPC), Petroleum Products Pricing Regulatory Agency (PPPRA) and Department of Petroleum Resources (DPR). National Assembly member representing Kogi West senatorial district, Senator Dino Melaye, joined the league of critics of the policy. Though he is of the All Progressives Congress (APC), he sent a passionate appeal to the National Chairman of his party, the Chief Odigie Oyegun, to ask the President Buhari-led federal government to reverse the pump price. “If after seven days from Monday, there is no reversal, I will mobilise Nigerians from all walks of life for the mother of all protest,” he wrote on his Facebook Page last Thursday. This is not what we promised Nigerians. The time is not right and the negative effects will be unbearable. A word is enough for the wise,” Melaye said. Former National Secretary, Labour Party (LP) and Executive Director, Egalitarian Mission for Africa (EMA) Mr. Kayode Ajulo declared this period as mourning period for Nigerians, stressing that: “Increasing fuel price at this critical time in our fiscal history smacks of crass insensitivity and absolute disregard for the wellbeing of our people.” He said at a time like this Nigerians must rise as one and refuse to be hoodwinked into penury and extinction. The Ekiti State Governor, Dr. Ayodele Fayose said President Buhari and the ruling APC were playing Nigerians Advanced Fee Fraud (419) over the removal of fuel subsidy and increment of pump price from N86.50 to N145 per litre. He described the action as “wickedness taken too far.” He asked: “Was the federal government paying up to N58.50 as subsidy on one litre

of petrol before now?” He therefore enjoined Nigerians, especially the labour movement to resist what he called “wicked act of President Buhari and his party.” The Executive Secretary, Nigeria National Summit Group (NNSG), Mr. Tony Uranta also condemned the price increase when he said that the increase runs contrary to all acceptable tenets of human existence, noting that “It is unfathomable that a government that came in with promises to make life better for the people has now worsened the alleged woes. According to him, “Nigerians are over burdened by the current economic situation and adding the increase in fuel pump price may cripple the nation, especially small businesses that are the bedrock of any nation’s economy.” Like others, he called on all Nigerians to come out en-masse against the decision and that the NLC must be very careful in its dialogue with the government on the issue. So, as things stand, the federal government faces a rather stiff opposition with labour and other Nigerians, hence the urgent need to enlighten Nigerians about why it took the decision many consider as injurious to well-being. Though the Minister of Information and Culture, Alhaji Lai Mohammed has been rallying support for the policy, but the inauguration of the Advertiser Association of Nigeria (ADVAN) Marketers Conference in Lagos last Friday, May 13, 2016, presented him with yet another opportunity to enjoin Nigerians to allow the policy stay. He said it was designed to put an end to the problems in the petroleum sector. “Many have been asking why this (petrol price hike) would happen at this time and what triggered the decision concerning the new framework for petrol products supply, distribution and pricing. I can tell you that that decision is inevitable, if we are to end the crippling fuel scarcity that has enveloped the country, ensure the availability of the products and end the suffering that our people have been subjected to. “The unavailability of forex and the inability

to open letter of credit have forced marketers to stop product importation and imposed over 90 per cent supply on the NNPC since October 2015, in contrast to the past where NNPC supplies 48 per cent of the national requirement The truth is that the NNPC does not have the resources for, nor is it designed to meet this increase in supply. The result is the crippling fuel situation across the country. Pushed to supply 90 per cent of the products required for domestic consumption, the NNPC has continued to utilise crude oil volumes outside the 445,000 barrels/day allocated to it, thereby creating major funding and remittance gaps into the Federation Account,” he explained. He also reiterated that contrary to widespread interpretation of what happened as the removal of subsidy, “There is no provision for subsidy in the 2016 Appropriation.” He said the erstwhile petrol price of N86.50 gives an estimate subsidy claim of N13.7 per litre which translates to N16.4 billion monthly but that there is neither funding nor appropriation to cover this. He said: “Unless immediate action is taken to liberalise the petroleum supply and distribution, the queues will persist, diversion will worsen and the current prices will spiral out of control,” but that “Under the new price regime, the PPPRA and DPR will be further empowered to ensure a level playing ground and strict compliance with market rules by all stakeholders and consumer protection.” In summary, according to him, the new pricing regime will solve the recurrent fuel scarcity by ensuring product availability across the country, reduces hoarding, smuggling and diversion of products substantially, stabilises price, ensures market stability and improve fuel supply situation through private sector participation and also create labour market stability, which will potentially create additional 200,000 jobs through new investments in refineries and retails and prevents potential loss of 400,000 jobs in existing investments. Vice President, Prof. Yemi Osinbajo, in a short article by him after observing the issues generated by the debate, noted that “The most important issue of course is how to shield the poor from the worst effects of the policy.” He hinted that President Buhari is “probably one of the most convinced pro-subsidy advocates,” but shedding light on the policy, Osinbajo said: “First, the real issue is not a removal of subsidy. At $40 a barrel there isn’t much of a subsidy to remove. “What happened is as follows: our local consumption of fuel is almost entirely imported. The NNPC exchanges crude from its joint venture share to provide about 50 per cent of local fuel consumption. The remaining 50 per cent is imported by major and independent marketers. These marketers up until three months ago sourced their foreign exchange from the Central Bank of Nigeria (CBN) at the official rate. “However, since late last year, independent marketers have brought in little or no fuel because they have been unable to get foreign exchange from the CBN. The CBN simply did not have enough. In April, oil earnings dipped to $550 million. The amount required for fuel importation alone is about $225million! Meanwhile, NNPC tried to cover the 50 per cent shortfall by dedicating more export crude for domestic consumption. “Besides the short term depletion of the Federation Account, which is where the federal NOTE: Interested readers should continue in the online edition on www.thisdaylive.com

T H I S D AY • TUESDAY, MAY 17, 2016

UPDATE&TRENDING

EFCC Bears Its Fang Again on Adegboruwa As part of its intimidation and harassment of lawyers in the country, the Economic and Financial Crimes Commission last week bore its fangs this time, on a human rights lawyer, Ebun-Olu Adegboruwa,overwhat atbest isdescribedas‘spuriousallegation,’writesDavidson Iriekpen

n what many have seen as clampdown on lawyers in the country, especially those defending suspects alleged to have committed various offences, the Economic and Financial Crimes Commission (EFCC) last week arrested and arraigned a human rights lawyer, Ebun-Olu Adegboruwa, before a Federal High Court in Lagos on a one-count charge bordering on a lease of a forfeited in Lagos property. Adegboruwa is a Lagos-based lawyer, who has handled and won many cases for a lot of less-privileged people free of charge. He abhors corruptions and had on many occasions challenged both federal and Lagos State governments on some questionable contracts and obnoxious policies in courts and won. Recently, he was briefed by a Niger Delta militant, Government Ekpemupolo aka Tompolo and Azibaola Robert, a cousin to former President Goodluck Jonathan, to represent them in court. Tompolo was recently declared wanted by the anti-graft commission over allegations of corruption and Robert has been detained by the commission over a contract that was awarded to him by the last administration for which he has been refused bail despite a court order. The EFCC said Adegboruwa acted illegally by leasing out the said property situated at House 105, NICON Town Estate, Lekki-Lagos, to one Shelf Drilling Nigeria Limited at the sum of N61, 631, 944.65, because it is a subject of an interim forfeiture order by a Lagos State High Court. It further alleged that the lawyer obtained money under false pretense by knowingly renting out the forfeited property without due authorisation. The payment was said to have been credited to his bank account, from where he disbursed the funds to others, including churches. But the fiery lawyer, who knows where his problems are coming from, denied the allegations, saying his arrest and prosecution are linked to his brief by Tompolo and Robert. In a statement signed and released by his law firm, Kogun Chambers, Adegboruwa said he has no fraud case to answer, rather he said he was being ‘persecuted’ for his hard stance against the President Muhammadu Buhari administration. According to the firm, the fact was that the property in dispute was owned by one Mr. Jonathan Udeagbala. He said the transaction took place long before the Buhari administration came into existence. He added that before his arrest, he had been receiving unofficial complaints and threats from the anti-graft commission about his opposition to the Buhari administration. “But the threats became more rampant upon his brief in the case of Tompolo and especially, Mr. Azibaola Robert, cousin to former President Jonathan. “On May 4, 2016, our firm appeared in Tompolo’s case at the Federal High Court, Lagos and May 4, 2016, our firm filed a suit in court, for the release of Jonathan’s cousin. On May 5, 2016, EFCC filed a case against Adegboruwa. So, there is no fraud case against Adegboruwa. He is being persecuted for speaking against the Buhari regime. “There is no way a criminal case can be maintained against Adegboruwa as the criminal case upon which the case is based has been dismissed. He did not collect money for any property but acted as a mediator for settlement and he acted upon the lawful instructions of his client.” Explaining the facts of the transaction on the alleged forfeited property the firm said: “In or around May 2013, our law firm was approached by one Mrs. Sylvia Udeagbala, to represent her husband in a criminal case. In our first appearance in court, it transpired that the complainant in the case, Chief Leonard Okafor and the defendant, Mr. Jonathan Udeagbala, were from the same town. It was thus decided to settle the case amicably out of court, and the court and the prosecutor were so informed. “Udeagbala owns a five-bedroom duplex in Nicon Town Estate in the Lekki area of Lagos.

Magu…is EFCC truly hounds lawyers?

He had a business agreement with Okafor, for telecommunications. The business didn’t go as planned, so Okafor demanded a refund of his investments, which caused Udeagbala to issue several cheques, which were alleged to have bounced, hence a criminal charge was filed against him in court, in Charge No. LCD/129/2012. “Upon the intervention of our law firm, several peace meetings were held with the complainant in the case, Okafor, and it was agreed that Udeagbala’s house in Nicon Town should be sold or leased to offset the money outstand-

He had been receiving unofficial complaints and threats from the anti-graft commission about his opposition to the Buhari administration. But the threats became more rampant upon his brief in the case of Tompolo and especially, Mr. Azibaola Robert, cousin to former President Jonathan. On May 4, 2016, our firm appeared in Tompolo’s case at the Federal High Court, Lagos and May 4, 2016, our firm filed a suit in court, for the release of Jonathan’s cousin. On May 5, 2016, EFCC filed a case against Adegboruwa

Adegboruwa…alleges persecution

ing in favour of Okafor. Mrs. Udeagbala then secured a tenant, Shelf Drilling Company Ltd, for a five year long lease of about N11million per annum. “This was disclosed to Okafor and it was agreed by the parties that the proceed of the lease be used to offset part of the money being claimed by Okafor, as follows: Okafor – N35million; Mr. Udeagbala – N12million; renovation of the house by the contractor chosen by the tenant – N8million; fee paid to the agent – N2.5million and legal fee paid to our office – N2.5million. “The above sums were by agreement of all the parties duly disbursed, with documentary evidence of collection. When EFCC got to know that the said property had been let out to Shelf Drilling for five years at the rate of N10million per annum, they told Shelf Drilling that the earlier money paid had been forfeited. “EFCC then asked Shelf Drilling to pay N12million per annum. A sum of N24million has so far been collected by EFCC. In fact, we are informed that as at yesterday, May 10, 2016, EFCC served the tenant another invoice for rent for 2016. Part of the terms of settlement was that Okafor will withdraw his petition and criminal complaint to the EFCC which he did through a letter of withdrawal written by his lawyers Atuegwu Egwuatu and Associates dated August 19, 2013, and which was received by the EFCC on September 17, 2013. “Consequent upon the withdrawal, the criminal charge was dismissed by the High Court on December 17, 2015, in a wellconsidered ruling delivered by Justice D.O. Oluwayemi and the EFCC is aware of this. At all material times, our law firm was not aware of any interim order of attachment obtained by the EFCC on the property. With the ruling of Justice Oluwayemi which has dismissed the main criminal charge, there can be no subsisting order of attachment as something cannot be placed on nothing and be expected to stand.” For those following the case, there is no doubt that this is a clear case of persecution. Recall that recently, the Chairman of the EFCC, Ibrahim Magu, had stunned the nation with a declaration that senior lawyers in the country were hampering the fight against corruption. The EFCC boss who was apparently incensed by what he alleged was damning evidence against a senior lawyer, Mr. Ricky Tarfa, spoke in general terms during a visit to his office by a coalition of civil society groups, as part of their sensitisation programme against corruption accused the top lawyers of assisting corrupt

elements who had looted the nation’s treasury to fight the EFCC and escape punishment for their economic crimes. He said: “One of the big challenges we have in the effective prosecution of the war on corruption is that of very senior lawyers who Nigeria has been very kind to: They who went to good schools here, when Nigeria was good, many of them, on government scholarship; they who Nigeria had given so much opportunity. When we have corruption cases, cases of people who have stolen food from the mouths of our children; when we have cases of people who have stolen money meant to build hospitals and buy drugs; when we have cases of people who have stolen all the money meant to buy guns for our soldiers to fight Boko Haram, when we have all these cases of wicked people who have stolen Nigeria’s money, they run to these same senior lawyers, give them part of the stolen money and mobilise them to fight us, to delay us in court and to deny Nigerians of justice. These are the people who do not want justice for the common man.” No sooner were these comments made, the commission arrested and arraigned another senior lawyer, Dr. Joseph Nwobike (SAN) who is also the counsel to the former Director General of the Nigeria Maritime Administration and Safety Agency (NIMASA), Patrick Ziakede Akpobolokemi, who is equally standing trial for massive corruption. Before then, the anti-commission had invited and quizzed five senior lawyers, J. B. Daudu (SAN), Damian D. Dodo (SAN), E.C. Ukala (SAN); Godwin Obla (SAN) and Roland Ewubare involved in the negotiation of the plea bargain with the companies fingered in the Halliburton bribery scandal. It didn’t take long for Nigerians to know that what the lawyers did was to recover millions of funds for the country and collect their legal fees of 10 per cent which is the usual practice. Investigations revealed that a leading law firm in the United States that was first hired by the federal government to act on its behalf, had proposed the return of 33 per cent as fees as is the standard practice in the US for contingency litigation matters. THISDAY gathered that it was when the Nigerian government turned down the fees of the US firm that it settled for the Nigerian lawyers.

NOTE: Interested readers should continue in the online edition on www.thisdaylive.com

T H I S D AY • TUESDAY, MAY 3, 2016

POLITICS&ISSUES

Edebiri Stands Strong in Edo Race Segun James writes that as the race to succeed Governor Adams Oshiomhole of Edo State gathers momentum, if performance is the yardstick to measure an aspirant’s capabilities and chances, then Chief Solomon Iyobosa Edebiri is in good standing

he race for the Edo State governorship ticket of the Peoples Democratic Party (PDP) has hot up, even as it has boiled down to a two horse race between Chief Solomon Iyobosa Edebiri, a businessman who wants to change the political landscape of the state away from ‘business as usual’ and Pastor Osagie Ize-Iyamu, a professional politician who has been in the corridor of power in the state since the advent of the fourth republic. Although there are four aspirants in the race, the other two, Mathew Iduiyadeyekemwen, a former Majority Leader in the state House of Assembly and also a former commissioner representing Edo State on the board of the Niger Delta Development Commissioner (NDDC) and Osa Onaiwu, a former Director General of the Governors’ Forum, have been given little chance of making impact in the party’s primaries which comes up soon. Since the coming of the forth republic in 1999, Edo State has had the misfortune of a string of failed leadership. Beginning with Chief Lucky Igbinedion, who spent eight disastrous years in Dennis Osadebay Government House; his government was so rudderless that his father, Chief Gabriel Igbinedion while campaigning for a second term for his son when told Lucky was a failure and a disaster, was quoted to have told the people that when a child failed a class, he must be allowed to repeat the class. Hence his son should be allowed a second term. Surprisingly, he was returned and his disastrous leadership continued to detriment of the people of the state. Prof. Osumbor followed Igbinedion as governor. He had hardly made any impact when he was removed from office by the court, which found the way and manner he became governor faulty. Edebiri…highly optimistic

The PDP in the state has learnt from the mistakes of the past where competence was not the yardstick for political leadership but man-know-man. We have suffered 20 years of which we experienced more strike actions in the last four years; more strike actions from the academic staff and more students embarking on protests in the universities. We have suffered more. If you look at these, sum it up, it says there is need for redemption in Edo and that is why I’m coming. I’m coming to redeem the people of Edo State. And I think the time is now. Otherwise, it might be too late

Osumbor was immediately followed by the outgoing governor, former labour leader and showman extraordinary, Governor Adams Oshiomhole, who with some of his projects was soon being praised as the best thing to have happened to the state since the time of Governor Sam Ogbemudia. Oshiomhole was applauded by the people and the media celebrated him for at least embarking on some projects after the disastrous years of Igbinedion. The people were simply happy with him. But just like most governors in the country who have nothing to lose once they gain a second term ticket, Oshiomhole went to sleep. He is just waking up now that the election of his successor is just by the corner. Oshiomhole wants to play the godfather role he has spent eight years campaigning against by imposing a successor on the people. These are the thought of Chief Solomon Edebiri as he puts himself forward to contest the governorship position in Edo state under the PDP. For Edebiri, governance should not be seen from the point of view of “any qualified person should be the governor,” even if that person does not have the ability. To him, government should entail competence, proven record of capability and service for the general good of the people. To him, electing another incompetent person whose only job in the last 17 years is to be at the corridor of power in the state and has being part and parcel of the failed governments in the state will be regrettable. He also insists that governance is a serious business; hence the only way forward for Edo State to have meaningful progress in the nearest future is to have a reliable governor – someone with proven record, especially in business. “Government business must be done business-like,” he stressed. Edebiri is the Chief Executive of Typha Cenia Nigeria Limited, a big player in the service sector of the Nigerian oil industry and President, Nigerian Institute of Welding (NIW). Confronted on why he wants to be the next governor of the state, the businessman said

“I am on a mission to rescue a state that has been on a constant decline for the past 20 years and to redeem the people of Edo State from abject poverty. I am on a mission to rescue Edo State people from joblessness, insecurity, from their lost pride in sports, social security, employment and health. The infrastructure in the state has been on constant decline. The people need revival; we need redemption, the people need to be redeemed and that is the mission. “If you look back at previous governments, after the Ogbemudia administration of 1983, which lasted just three months, you will agree with me that successive governments have failed Edo people. This failure got worse during the first eight years of the fourth republic in Edo State and our woes were further worsened by the administration of Osunbor. With no relief in sight, we have suffered 20 years of administrative inefficiency and zero leadership. “During those 20 years, our children have been taken into prostitution overseas; during those 20 years, our youths have been forced to go to Europe to do all sorts of dirty jobs because of joblessness in the state. The population of Nigerians in Europe is more of Edo people. For over 20 years, we always had to import food into Edo State instead of exporting food. And now, what do we have? At the sporting level; no more Bendel United, no more Bendel Insurance. It was a sharp decline. We have suffered 20 years where virtually all our roads have turned to death traps; where gradually our industries are being killed and not one was being revived and no new ones were being built,” he lamented. He stressed that these days that there are dwindling federal allocations, what the state needs is a leader with vision and business acumen to reposition the state for growth rather than a governor who will go cap in hand every month for a handout from the federal government in the name of federal allocation. Edebiri insisted that the PDP in the state has learnt from the mistakes of the past where competence was

not the yardstick for political leadership but man-know-man. “We have suffered 20 years of which we experienced more strike actions in the last four years; more strike actions from the academic staff more students embarking on protests in the universities. We have suffered more. If you look at these and sum it up, it says there is need for redemption in Edo and that is why I’m coming. I’m coming to redeem the people of Edo State. And I think the time is now. Otherwise, it might be too late. “The people of Edo State need a government they can rely on, they need a government they can call their own, they need a governor on whose shoulders they can lean, a government that will be responsive to their needs, a government that will answer them when they ask questions and a government that will deliver the dividends of democracy. Not just the dividends, they need a government that gives true dividends of democracy. “You can see the craving for change by the people. You can see that the people are eager. The people need change. Not the kind of change that is being touted by the All Progressives Congress (APC) which has impoverished the people more in the last one year but a robust revival of industries, sports and infrastructures. I will see to that. I must confess if a free and fair election is allowed in Edo State today, the APC will have no chance.” On good natured and competent Nigerians, especially Edo citizens who have not been opportune to serve the country or who have not been allowed to get to power and exhibit what they can do, Edebiri stressed that the wave of change blowing across the country will now make this happen. “We know them. We know they exist. Some of them have gathered into one political party or the other. We will seek them out and these are the groups we can collaborate with. We can come together and say yes: ‘It is time to redeem this state from the hands of the usurpers’ because everybody there now has usurped power and is using it for selfish ends. “The time has come to say enough is enough. And the people of Edo can no longer continue to stay in darkness and remain in perpetual fear, slavery, terror, siege with their mouths padlocked and as if they can no longer speak. No! That is not the true meaning of democracy. Democracy says you will have freedom to move, speak, associate, worship and also to benefit from the dividends of democracy; that is what our democracy says and what we will offer. “Objective progressive-minded people that can come together to fashion the way forward for the state and people, this is what we dream for the state. People who are selfish, greedy; people who place themselves above the citizenry, people who think that they can take all the wealth of the nation today and forget that they have children that will grow up tomorrow; people who walk through a road and cut a log across the road so that others would not pass; people who cross a bridge and blow it up after them; those are the elements we have in abundance and in government now. These are not the people we want to work with. “I can tell you that the next dispensation will be determined by the works of the candidate, by issues and not the party, determined by the personality behind the issues that is presenting solutions. The people will seek to use those people that have not been reckoned with to deliver the true dividends of democracy to the state. “So, incumbency which Oshiomhole wants to use to impose a candidate on the people to cover his dirty tracks (there are 18 aspirants jostling for the ticket of the APC) will not work. Incumbency is not a force for us to be afraid of. We are planning many actions as to how we can stop the use of government facilities to campaign by the incumbent governor, we are not afraid of that.”

T H I S D AY • TUESDAY, MAY 10 2016

OPINION

Agenda 2063: Uncertain Future for African Youths

With the 2009 African Youth Charter not achieving its desired objectives and the 2013 African Union Agenda 2063 for youths also tolling the same path, Odimegwu Onwumere writes on the urgent need for African leaders to work harder in helping youths achieve their goals, rather than dim their futures

frica has a variety of youth employment challenges and the youths are discouraged than unemployed, connoisseurs have said. They are at worse discouraged through working poverty, therefore sending uneasiness suggesting that there may be no “New Africa” by 2063 if urgent measures are not taken. “Working poverty and unemployment rates are strongly negatively correlated in Africa, suggesting that many young people prefer unemployment over working poverty and will choose unemployment in the hope of finding a better job when they can afford it,” the African Economic Outlook, a youth partnership forum, testified. There are situations that characterise the youths that include poor education, cultism, civil unrest, banditry, and others. On July 2, 2006, the African Union Heads of States and Governments saw the need to apprehend the situations affecting the youths and they held a meeting in Banjul, Gambia. The outcome of the meeting was the endorsement of the African Youth Charter (AYC), which entered into force on August 8, 2009. The plan for the youths in that charter was titled “The Youth Decade Plan of Action”, which target was to be realised between 2009 and 2018. But that roadmap created for the effective popularisation, ratification and implementation of the AYC, has yielded little or no result, as the youths on the continent of Africa are still underrepresented in 2016. Failing the youths, Agenda 2063 was formed at the OUA/AU 50th Anniversary Celebration held in Addis Ababa, Ethiopia, in May 2013. The failure of the leaders in not making the youths achieve their socio-pol-eco goals has culminated to youths on the continent being used by politicians for shoddy deals, kept in ignorance and poverty in a continent ranked to be in the fold of the world’s consumers, where households spend half of their earnings on nonfood things. “Young people under 25 represent three-fifths of sub-Saharan Africa’s unemployed population, and 72 percent of the youth population lives on less than $2 a day. To help their families, 30 per cent of children between the ages of five and 14 are forced to work, which robs them of the educational opportunities that could break their families’ cycles of intergenerational poverty,” the World Bank reported. In 2000, it was visible that $5,000 or above were made by many households on the continent as income, but they finished them on consumption without creating effective local contents for local and international demand in order to increase on domestic growth. The sarcasm is that the youths are not fanatically trained to handle the future, but situations in Africa have foisted on them that they must work to help themselves and their families. They engage in ugly dealings to keep body and soul together, while hoping to get better job avenues that are often rare to come by. “By 2030 there will be roughly 24.6 million people entering the job market in sub-Sahara Africa annually. This growth represents two-thirds of the world’s entire workforce, which means job creation will be a necessity for sub-Saharan economies to benefit,” said the source. Skill Gap There is an impression that the youths in Africa are termed as those not in needs of job in the labour market and will not contribute to the work force. But an informant informed that the high rates of hindrance to engage the youth boils down to removing them from the labour

2060,” said the report. An assessment is that youth population is rife in sub-Saharan Africa, making it the highest in the world. Invariably, this population does not have the training, skills and economic will power to arrest the future. “The figures instead are largely the result of specific economic and political contexts. Lack of investment in infrastructure and subsidy for sectors with potential for creating jobs for example, have created deep structural issues. In many cases, these issues predate the youth bulge,” Amare affixed. Among the stakeholders who have raised their voices to carve a niche for the continent to learn and relearn from the past and face the future with resources accruing from Africa and in Africa, the Agenda 2063 is believed to be on the court of the youths to handle. Nevertheless, the youths are not seen by their leaders, who are mainly aged, to have significant economic roles to play in the Africa’s development. This mindset has made Africa not to realise the potency of the Private Sector as the engine of economic growth; and the youths would excel in this sector.

Dr. Chris Ngige, Minister of Labour and Creativity…what hope for Nigerian youths?

markets that they go through in Africa. “25 per cent of African youths are still illiterate and despite a rise in primary school enrolment from 60 per cent in 2000 to 77 per cent in 2011, the issue of low skills levels in the workforce will continue to be a problem,” the African Development Bank frowned. In 2014, Tighisti Amare who’s the manager of an Africa programmes at Chatham House, said,

The concern for the youths on the continent of Africa is how to cope with the nonstop rise in population when there are no job opportunities. While the world fears that the youth population in sub-Sahara Africa alone is the highest in the world, Nigeria is anticipated to outnumber the population of the United States by about 30 million people by 2050

“Levels of education in Africa are comparatively low creating a considerable skills gap among youth at working age.” It is a confirmation that the different countries on the continent hardly factor the youths into general and development planning, making the youths not to be united. But these countries have in one way or the other blamed the rise in youth population as the cause of unemployment on the continent. Amare had rebuffed that notion in a civic presentation, saying that it could be the lackadaisical approach of the continent that has resulted to the negligence of the youths and certainly, not the swelling in population of the youths that has created dearth of employment opportunities. “The correlation however is not always direct, nor that simple. First, the youth bulge has not created an even unemployment rate throughout the continent. Secondly, it is not the numbers of young people that has created unemployment, but structural issues specific to individual countries,” Amare said. Population The concern for the youths on the continent of Africa is how to cope with the nonstop rise in population when there are no job opportunities. While the world fears that the youth population in sub-Sahara Africa alone is the highest in the world, Nigeria is anticipated to outnumber the population of the United States by about 30 million people by 2050. The World Bank estimated in an account of 2015 that in the sub-Sahara Africa, there have been 186 million to 856 million people from 1950-2010. Going by the analysis of about 11 million people a year, “by 2060, the population of sub-Sahara Africa could be as large as 2.7 billion people.” There is trepidation that Nigeria, Ethiopia, Tanzania, DRC, Niger, Zambia, and Uganda will contribute millions of people to the world along with China and India. These countries will have the largest populations in the world. “Compare this demographic shift to Europe’s projection of a declining population – from 738 million people in 2010 to 702 million in

Government at all Levels It was learnt that governments all over Africa refuse to subsidise some sectors, thereby making such sectors to struggle beyond expectation and most times close shops when they could not pay their workers’ wages. This has affected the youths the most. An example is South Africa where the mining sector, which is said to have an estimate of 400 thousand people in its employ, had series of retrenchment due to the struggle to meet up with the wages of workers. The same was the fate of the agricultural sector. The negligence of the youths has formed a stance that the next 50 years, what will become of the youths protuberance in the continent is fearsome, because many youths do not have jobs. And how to coordinate activities capable for future challenge in Africa among the youths is yet uncertain. Job and employment opportunities are farfetched for youths in Africa. Many youths are born into poverty and they are yet to change that mindset, because there is hardly any institution geared towards involving entrepreneurial skills from the kindergarten. Some who have developed the entrepreneurial skills have problems of funding and the right mentorship to excel: Problems that the governments at all levels are not looking into assiduously. The disquiet is what will become of the youths by 2040 when experts have said that the continent’s work force will be projected to 1.1billion from the roughly 500 million it is. While the sub-Sahara Africa is said to be the height of youth population in the world, South Africa has been pointed out as a country with the highest levels of youth unemployment in the region. Voices have been raised that almost 50 per cent of the youths in South Africa are unemployed. The World Bank once saw Rwanda as one of the lowest youth unemployment rates in the world. The revenues of the countries have not been really managed well upon the economic boom that most countries had experienced. Unlike in the 70s, Africa has GDP rising in telecommunications, banking, retailing, construction, oil, grain, raw materials, minerals, roads, buildings, water systems, similar projects and others. Odimegwu Onwumere, a public analyst wrote from Port Harcourt, Rivers State NOTE: Interested readers should continue in the online edition on www.thisdaylive.com

TUESDAY, MAY 17, 2016 â&#x20AC;˘ T H I S D AY

FEATURES

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

Women's Groups, Activists Draw Battle Line over Gender Bill The sudden death of the Gender and Equal Opportunities Bill at the National Assembly may actually not be the end of the bill, as rights activists and women's groups are strategising on representing the bill, writes Adedayo Akinwale

Senators in plenary

he ripples generated by the sudden death of the Gender and Equal Opportunities Bill are far from being over, this is because women groups, rights activists and other Civil Society Organisations (CSOs) have drawn the battle line and have decided to see this to a logical conclusion. They are currently strategising on how to represent the bill to the National Assembly. The Nigerian women who were baffled and at the same time expressed disappointment about the way and manner issues concerning women in the country have always been treated; have already embark on series of consultations, sensitisation, and even lobbying as they plan to represent the bill to the Senate. The gender bill met stiff resistance from the Senate during the second reading on the15th of March, 2016 through a voice votes, and was eventually thrown out for reasons best known to them. The set

back, notwithstanding, these women groups and rights activists believed that further information on the bill will help address the misconceptions of some key sections in the bill. It is believed that the debate on the bill further represents the nation's diversity as multi-ethnic, multi-religious and a multicultural nation. By and large, the point advocated for and against the bill expressed the lacunas between our culture and existing laws and our perception of gender equality, limitations of women development of our nation. During the second reading of the bill at the floor of the Senate, Senators argued that the section of the bill which gives a widow automatic right to take custody of her children on the death of her husband and the right of a widow to an equitable share of her husband's inheritance and to continue to live in her husband's house are inconsistent with the customary law of some communities and in conflict with the

constitution which recognises customary law. The senators also argued that the received English laws provide that where any law is inconsistent with local laws, the local laws shall prevail. They further argued that the provision of the bill on the modification of socio-cultural practices is directly in conflict with the Nigerian constitution, because the constitution is very clear, on customs and practices of all Nigerians, especially in relation to their religious rights as guaranteed. Lastly, the Senators argued that granting women freedom will give rise to a situation of derogatory notion of weakness known in the Northern part of Nigeria as 'Mijin Hajiya'. However, in its argument to counter against that of the Senate, the National Coalition on Affirmative Action (NCAA), said that the provisions of the bill are not in conflict with Nigeria's 1999 Constitution provisions as amended, including a section, which prohibits sex discrimination and Section

The Nigerian women who were baffled and at the same time expressed disappointment about the way and manner issues concerning women in the country have always been treated; have already embark on series of consultations, sensitisation, and even lobbying as they plan to represent the bill to the Senate

â&#x20AC;˘ T H I S D AY TUESDAY, MAY 17, 2016

FEATURES We can't continue to have a country where women and girls are not safe, and continue to be violated every day. Now, mothers are even afraid to send their daughters to school because of the fear that they are going to be abused. We cannot continue this way; all of us should be concerned

Senate President, Senator Bukola Saraki

21, which upholds the preservation of cultures that enhance human dignity and are consistent with freedom, equality and justice. Accordingly, the bill reinforces the complimentary and not competitive relations between men and women to be achieved through equal opportunities, mutual respect and common benefits to both. It argued further that the bill will not take away family headship from men, adding that the bill enjoins shared roles and responsibilities for family life. To the coalition, equality refers principally to equal opportunities to access, contribute and seek redress. Highlighting specific issues as regards the bill, the group said Section 21(a) of the 1999 Constitution as amended which gives directives on Nigerian cultures, provides that the State shall protect and promote the Nigerian cultures which enhance human dignity and are consistent with the fundamental objectives in Chapter 11. These include the ideals of rights, obligations and opportunities before the law for every citizen; as well as recognition of the sanctity of human person and enhancement of human dignity. Therefore, to give effect to Section 21, the High Court laws and Customary Court laws of many States of the federation empower the courts to uphold only cultures and customs that are not repugnant to natural justice, equity and good conscience. This is in line with the constitutional provisions on the preservation of cultures that enhance human dignity, and are consistent with freedom, equity and justice. It explained that the bill has and does not introduce any contention; rather it upholds the right of female surviving relatives of a deceased person to an equitable share of the properties left behind. Speaking recently in Abuja during the 7th annual leadership lecture and graduation ceremony of the Centre for Leadership, Strategy and Development Study (Cebtre LSD), former First Lady of Ekiti State, and the wife of the Minister of solid Minerals, Mrs. Bisi Fayemi, said that Nigerian women have the rights to address their issues through legislation. She said though she was not actually surprised that the bill was thrown out by the Senate during the second reading due to the way issues concerning women in the country have so far been treated, but however maintained that if truly the country wants to develop and achieve all the goals and aspirations to build an inclusive society, then the demands of women cannot continue to be ignored. "We can't continue to have a country where women and girls are not safe, and continue to be violated every day. Now, mothers are even afraid to send their daughters to school because of the fear that they are going to be abused. We cannot continue

Senator Biodun Olujimi...sponsor of Gender Equality Bill

this way; all of us should be concerned. The principle around equality bill is that Nigerian women have a right to have their issues addressed and have all the concerns that we have been raising addressed through legislation and implemented accordingly. "When politicians need the vote of women, when they need women to clap for them, campaign for them to vote for them, to stand long hours in the hot sun, to register to vote and actually do the voting, they do not know then that we have traditions and religions that are supposed to give men more power than women. "Now that they are in those positions, women don't matter anymore, this bill is going to be passed by the grace of God and we hope that our senators this time around are going to give it a due hearing and do the needful. I want to call on Nigerian women to send a representative to the Senate any time that the bill will be discussed. Nigerians need to know that that bill is presented on behalf of half of the population and that is a lot," she said. Former Independent National Electoral Commission Resident Electoral Commissioner (REC), in Cross Rivers and Edo States, Barr. Mike Igini, said the country for a long time had excluded women as a very important

segment of the society by not valuing their potential in our development efforts. He said if truly social developments are derivable social goals that we must attained, either in education, health, politics, economy, it means that we need leaders regardless of gender. "The only pain that some of us have is that why do we still have to struggle to persuade society to recognise the fact that the earlier decisions about our lives were made and taken under women, from the time we were born up to the time we are adult? So, the question is why is it that we trust women to give birth to a child, to take care of that child, all those decisions would be taken at those vulnerable stages but, when it comes to the level of adulthood these same people cannot be trusted, cannot be seen as an integral part of the development process," he lamented. Meanwhile, the Human Rights Writers Association of Nigeria (HURIWA) also described the decision to reject the bill by the senators, most of whom it said have their children and family members schooling and residing abroad in civilised societies, as "unwise and irrational". "This unmitigated scandal has shown majority of the senators for what they truly

are- unrepentant dubious male chauvinists and persons who don't wish that Nigeria should assume her rightful place as a civilized member of the global town hall. Without equivocation the Senate must and should be absolutely condemned for rejecting a proposed bill aimed at eliminating all forms of discrimination against women." "We as a country that is a member of the United Nations Human Rights Council and a signatory of major human rights and equality conventions, treaties and international laws have depicted our political leadership as backward with this bogus and unsustainable reasons offered at the hallowed chamber of the National Assembly by elected representatives for turning down a good bill, that if transformed into an enforceable law is capable of catapulting Nigeria to the respectable height as a human rights compliant political entity." On his part, the Executive Director of the Centre, Dr. Otive Igbuzor said there is a necessity for the bill to be passed. "I want to use this opportunity to appeal to our legislators that we are living in the 21st century, we are not living in the 14th century. Gender Equality Bill is not only imperative, but a necessity, it is imperative if we want to develop as a country."

IMAGES

R-L: President, Academy for Entrepreneurial Studies of Nigeria, Ausbeth Ajagu; President, LCCI, Mrs. Nike Akande and Rear Admiral Kenneth Bati-John, representing, Chief of Naval Staff, during the 7th AES Annual National conference, at NIIA, Lagos.......weekend KOLA OLASUPO

L-R: CEO, AXA Mansard Insurance, Mrs. Yetunde Ilori; Chairman, Mr. Victor Osibodu and the Company Secretary, Mrs. Omowunmi Adewusi, during the company’s 24th Annual General Meeting (AGM), at Oriental Hotel Lagos….. Friday SUNDAY ADIGUN

L-R: Chairman, Trade Promotion Board, LCCI, Mr. Sola Oyetayo; Director of Commerce, Lagos State Ministry of Commerce, Industry and Cooperatives, Mr. Hakeem Adeniji; President, LCCI, Dr. Nike Akande; Deputy President, Mr. Babatunde Runwase and the Director General, Mr. Muda Yusuf, during the presentation of the 2016 Lagos International Trade Fair Prospectus, in Lagos….recently

L-R: Ondo State Governor, Dr. Olusegun Mimiko; Member, House of Representatives, Remo Federal Constituency, Hon. Oladipupo Adebutu and the former Governor of Rivers State, Mr. Celestine Omehia, during the South West Zonal Congress of the Peoples Democratic Party, in Akure, Ondo State…Saturday

T H I S D AY • TUESDAY, MAY 17, 2016

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

L-R: Acting Managing Director, Bank of Industry (BOI), Waheed Olagunju; Chairman Board of Directors, Jaiz Bank Plc, Alhaji Umar Abdul Muktallab and the Corporate Services Executive, MTN Nigeria, Ms. Amina Oyagbola, during the katsina state economic and investment summit 2016, in Katsina State....recently

L-R: Winners of ARM Run for Future, Men Category, Second Position, Issa Alhmed; First Position, Edetanlen Moses; Managing Director, ARM Pensions (PFA) Limited, Mr. Wale Odutola; Female Category, First Position, Olamide Oluwaseun; and Second Postion, Aderonke Mary Olumidi, during the prize presentation ceremony of ARM run for the future, in Lagos…..recently ETOP UKUTT

L-R; Business Director, Vine Advisory Partner Limited, Mr. Ajibola Adams; CEO, Mrs. Bola Allison; Secretary to the State Government, Ebonyi State, Prof. Bernard Odoh and the Projects Manager, Vine Advisory Partner Limited, Ms. Bimpe Adesiyan, during the presentation of partnership agreement between Ebonyi state government and Vine advisory partners for the deployment of communications Infrastructures, monitoring and regulatory initiative

L-R: Lagos State Commissioner for Tourism, Arts and Culture, Folorunso Folarin-Coker; Special Adviser, Hon. Adebimpe Akinsola, and the Permanent Secretary, Jamiu Adewale Ashimi, during the ministry annual ministerial briefing, at Alausa Ikeja….recently KOLA OLASUPO

T H I S D AY • TUESDAY, MAY 17, 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

M A Y 6.9949 7.2368 8.0819

1 3 ,

6 MONTH 9 MONTH

2 0 1 6

9.2061 9.5872 10.5042

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

Quick Takes Oil Producers to Freeze Output

Kuwait’s deputy foreign minister Khaled Jarallah said oil exporting countries must freeze production and the market could not support a production increase from Iran, state news agency KUNA reported on Saturday. “There is no choice but to freeze production,” KUNA quoted Jarallah as telling Japanese news agency Jiji press while he and acting oil minister Anas al-Saleh attend a Kuwait-Japan business seminar in Tokyo. Asked about Iranian production policy, Jarallah said, “Iran should learn from the market ... the market does not give an opportunity to increase production.” OPEC members and other oil exporters failed in a meeting in the Qatari capital Doha on April 17 to reach an agreement on freezing their output to rebalance the global oil market. Iran, seeking to regain market share after international sanctions on Tehran were lifted last year, had refused to join the supply freeze initiative and the deal fell apart after Saudi Arabia insisted Tehran take part.

US Rigs Drop to 2009 Lows

RENDERING ACCOUNT

L-R:Managing Director, Nigerian Breweries PLC, Mr. Nicolaas Vervelde; Chairman, Nigerian Breweries PLC, Chief Kola Jamodu and Company Secretary/Legal Adviser, Uabol Agbebaku, at the company’s annual general meeting held in Lagos…recently

Marketers Source Foreign Exchange at N360 Per Dollar for Importation New policy may fuel round- tripping by banks Stories by Ejiofor Alike Barely three days after the federal government released the new policy on fuel imports, thus ending the era of providing foreign exchange at the official rate of N197 per dollar for the oil marketing companies for the importation of petrol, the parallel market rate has jumped up, prompting marketers to buy dollars at N360 at the weekend, THISDAY has learnt. THISDAY gathered from some of the marketers that the development may potentially encourage round-tripping

ENERGY among the banks that may obtain foreign exchange from the Central Bank of Nigeria (CBN) at the official rate and sell to marketers at higher price, especially as the apex bank has stopped providing Forex to the marketers, with the new price regime. Marketers, who spoke offthe-record to THISDAY, stated that shortly before the removal of subsidy, they had sourced forex at N320 per dollar at the parallel market, but it went up to N345 immediately after the announcement and further up

to N360 at the weekend. “We booked a cargo on Friday and we started the transaction with N320 per dollar before the announcement. It went up to N345 after the announcement and before we concluded it on Friday, it was N360,” said one of the marketers. Another marketer told THISDAY that the high cost of forex at the parallel market may encourage some banks to engage in round-tripping by selling to marketers at the parallel market rate after sourcing from the apex bank at the official rate.

“Some banks will make use of the opportunity of the fact that the government is no longer providing forex to the marketers,” he added. However, THISDAY gathered that the CBN’s practice was to direct the banks it allocated forex on whom the forex should be given. In removing the petrol subsidy, the federal government had hinged the decision on its inability to provide forex for the importers of petrol at official and increased the pump price of petrol to N145 based Continued on page 24

NNPC to Begin Production of Jet A1 Fuel in Kaduna, PH Refineries As part of efforts to improve the supply of Jet A1fuel in the aviation sector, the Chief Executive Officer of the Federal Airports Authority of Nigeria (FAAN) Mr. Saleh Dunoma, has expressed the federal government’s readiness to begin the production of Jet A1 fuel in Port Harcourt and Kaduna refineries operated by the Nigerian National Petroleum Corporation (NNPC). Dunoma said the decision to begin the production of Jet A1 fuel locally was reached at a joint meeting between the Minister for State for Petroleum, Dr. Ibe Kachikwu, and his counterpart in Aviation, Sen.

ENERGY Hadi Sirika. According to him, the meeting was convened as part of the renewed commitment at repositioning the sector in the area of aviation fuel supply. Dunoma made this revelation in Lagos at a recent one-day stakeholder forum on aviation fuel with the theme; ‘Jet Fuel Supply to Airlines: Short Term Measures for Managing Supply Disruptions and Long term solutions for the Enhancement of Supply Chain from Marine Terminals to Airports in Nigeria.’ The forum was put together

jointly by CITA Aviation Fuelling Company Limited and International Air Transport Association (IATA). He added that one of the decisions reached at the meeting was that the minister of petroleum would ensure there is enough quantity of aviation fuel imported into the country, stressing that efforts are being put in place to ensure the sector realises the vision as soon as possible. Dunoma further revealed that the meeting further discussed on how to ensure that the sector maintain the required quality, adding that the federal government targets to improve

the mode of transportation of the aviation fuel from the depot to the airport. “We need to consider the use of new pipelines for transportation of fuel alongside the ones existing. The reason is to confirm the integrity of those existing pipelines in order to put them back into use. We will also have to look at the possibility of introducing more pipelines in order to make sure that the product is transported safely to the airport. The discussion was held two weeks ago and we need to go back to carry out Continued on page 24

US oil drillers cut rigs for an eighth week in a row to the lowest level since October 2009, oil services company Baker Hughes Inc said Friday, even with futures at six-month highs as some energy firms focus on completing wells rather than drilling new ones. Drillers cut 10 oil rigs in the week to May 13, bringing the total rig count down to 318, Baker Hughes said in its closely followed report. The number of US oil rigs currently operating compares with the 660 rigs operating in the same week a year ago. In 2015, drillers cut on average 18 oil rigs per week for a total of 963 for the year, the biggest annual decline since at least 1988 amid the biggest rout in crude prices in a generation. Energy firms have sharply reduced oil and gas drilling since the collapse in crude markets began in mid-2014 as U.S. crude futures fell from over $107 a barrel to hit a near 13-year low at around $26 in February. But with U.S. crude futures reaching a six-month high around $47 a barrel earlier this week, some analysts forecast rig counts will stop declining soon and rise later this year as prices increase in coming months. [O/R] U.S. crude futures were fetching nearly $48 for the balance of 2016 and over $49 for calendar 2017. U.S. financial services firm Cowen & Co expects oil and natural gas land rigs to bottom near current levels between 375 and 400 before increasing in the fourth quarter. Land rigs have not gained in the Baker Hughes survey since August and fell further this week, by seven to 384, according to the latest report.

Kenya Creates 17 Oil Blocks

Kenya has created an extra 17 new oil exploration blocks, bringing its total to 63 and aims to auction them in a licensing round in 2017, Kenyan newspapers quoted Ministry of Energy and Petroleum saying on Saturday. British explorer Tullow Oil and partner Africa Oil first struck oil in Lokichar in northwest Kenya in 2012. The recoverable reserves are an estimated 750 million barrels of crude. Since the discovery, interest from explorers seeking blocks in Kenya increased. Privately-owned Standard Newspaper quoted the Energy and Petroleum ministry as saying it aimed to hold an auction for the new blocks in 2017. “We constituted all the blocks and the country now has 63 blocks .... We now have 17 blocks to license,” the Standard quoted Martin Heya, the ministry’s commissioner for Petroleum Energy, as saying. Africa Oil and Tullow were 50-50 partners in blocks 10 BB and 13T where Kenya’s the discoveries were made. Africa Oil has since sold a 25 percent stake in those blocks to A.P. Moller-Maersk.

“We did not create any pollution for which the NDDC Act was set up”

Managing Director/Chief Executive Officer, Nigeria LNG Limited, Mr. Babs Omotowa

T H I S D AY • TUESDAY, MAY 17, 2016

BUSINESSWORLD MARKETERS SOURCE FOREIGN EXCHANGE AT N360 PER DOLLAR FOR IMPORTATION

on a parallel market rate of N285. However, investigation revealed that some Bureau De Change operators were selling at N361 on Friday, while marketers sourced at N360, fueling concern on the sustainability of the N145 pump price. A spokesman of the Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Lanre Oladele said at the weekend said the mandate of the agency did not include determining the exchange rate for the marketers. “Statutorily, PPPRA is mandated to, among others, determine the pricing policy of petroleum products; regulate the supply and distribution; as well as maintain constant surveillance over all key indices relevant to pricing policy, while periodically approving benchmark prices for all petroleum products,” he said. NNPC TO BEGIN PRODUCTION OF JET A1 FUEL IN KADUNA, PH REFINERIES

studies to ensure that these refineries start producing Jet A1. A lot of efforts have been put in place by the Airport Authority to bring this dream to reality,” he added In his welcome address, the Managing Director of CITA, Mr.Thomas Ogungbangbe, said the aviation industry was at a crossroad because of the short term measures for managing supply disruptions and long term solutions for the enhancement of supply chain from marine terminals to airports in Nigeria. He added that the issue is a serious concern that requires genuine commitment in the industry to address the perennial problems associated with the value chains, from product sourcing to the wing of the aircraft in the tarmac. Ogungbangbe stated that the forum was an opportunity for stakeholders to partner and formulate ideas to effectively surmount the challenge, in order to facilitate a safe aviation industry that would guarantee safety in the air transport.

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

NLC: Absence of PPPRA Board Makes Fuel Price Hike Illegal Stories by Chineme Okafor in Abuja The Nigeria Labour Congress (NLC) has said the federal government’s removal of subsidy on petrol consumption and subsequent announcement last week of new pump price was illegal and inconsistent with an existing law of the country that should legitimise such. Rising from an emergency meeting that included its other partners, the Trade Union Congress of Nigeria (TUC) and civil society organisations, the union said the absence of a constituted board for the Petroleum Products Pricing Regulatory Agency (PPPRA) has made the government’s action illegal. Section 2 of the PPPRA Act No. 8 of 2003 states that ‘there shall be a governing board responsible for the running of the agency’. The board according to the Act shall include members drawn from across stakeholders such as the Nigerian Chamber of Commerce, Industry, Mining and Agriculture (NACCIMA); Manufacturers Association of Nigeria (MAN); NLC; major oil Marketers; independent oil marketers; Petroleum and Natural Gas Senior Staff Association (PANGASSAN); transport unions and Nigerian media amongst others. The Act also said that PPPRA with its board shall as part of its responsibilities, determine the pricing policy of petroleum products in the country as well as regulate the supply and distribution of petroleum products, while moderate volatility in petroleum products prices and ensure reasonable returns to operators.

But NLC said in this regard that the government did not follow the stipulated processes before announcing its recent decision. It said the PPPRA has no board and such decision would not stand. It also explained that it was not part of the process where the option was considered and a decision reached. “Organised labour wondered what has informed government’s sudden and dangerous policy summersault and its desperate attempt to convince the public that labour

was part of the decision that led to this price increase. “In view of the fact that the board of the PPPRA, which is statutorily vested with powers to recommend prices, has not been reconstituted, the price variation announced by any officer of the agency or outside the agency is not only ultra vires and illegal, it is a criminal imposition on the citizenry,” said NLC in the communique. it further said: “The price hike from N86:50 to N145, representing 67.63 per cent increase is the height of insen-

sitivity and impunity as there was no previous consultation with stake holders, especially the organised labour, or any justification for this reckless decision other than the fact that government believes it is accountable to no one.” NLC alleged the government was backing oil marketers to make profit at the expense of Nigerians, saying: “Government is unable to justify this price increase other than the puerile explanation that marketers need to recover their costs, without a thought for

the aggregate or larger national interest including the need for local refining and creation of jobs.” It also threw a jibe at the government for allegedly disrespecting court rulings on its hike of electricity tariff in the country. “The government has remained incalcitrant in spite of a subsisting court injunction on the issue of the criminal increase in electricity tariff even in the face of ever-worsening power supply situation,” it said.

STOCK TAKING

L-R: Managing Director, Champion Breweries Plc, Mr. Sharm Kulkarni; Chairman, Dr. Elijah Akpan; and the Company Secretary/Legal Adviser, Mr. Tosan Atle Aiboni, at the company’s 40th annual general meeting in … Lagos recently

Fashola: FG Can’t Provide N3bn Solar Power Eko Disco, USAID to Sign MoU on Technical Assistance Subsidy The Minister of Power, Works and Housing, Mr. Babatunde Fashola has said the federal government will not be able to provide funds to subsidise solar power projects and consumption in Nigeria. Fashola who met with about 14 solar power promoters in the country in a renewed effort to clear extant challenges holding down investment in and use of solar power in the country, explained that about N3 billion that had been calculated as the possible monthly fund the government would have to pay if it wants to subsidise solar power consumption in the country was unsustainable The minister told the solar power promoters that irrespective of government’s appreciation of their unique challenges, it was not considering paying out that huge sum monthly for consumption of power generated from their solar plants. He rather advised them to consider securing bulk electricity consumers whom they can sell their outputs to

at prices that would guarantee them their bottom lines. Rising from the lengthy meeting at the corporate headquarters of defunct Power Holding Company of Nigeria (PHCN), the minister also told journalists that the government had decided to look closely into the potentials of solar power usage, hence, the meeting, adding however, that it was careful not to incur such commitment. The minister explained that the vendor have ongoing projects in various parts of the country, which are held back from achieving financial closure due to such challenges like tariff and tax rates. He noted that the essence of the meeting was to find ways to solve some of the challenges identified by the vendor. “Solar is one of the options for incremental power in line with our road map for the sector from incremental, to steady to uninterrupted power. So, we are working our talk and we are looking at every place we can to get energy. “People have often said why

can’t they have solar power, the reason is that solar power also comes at a cost. At today market prices in Nigeria it is a little more expensive than gas power,” he said. According to him: “And those are the issues, how can we bring down the price because if we don’t bring down the price, it means that government will have to continue to subsidise power with the propensity for inefficiency that subsidy carry with them. “We want to bring to market at its most competitive price and hopefully a little bit affordable to people.” “The only problem now is the price and the liquidity issues. What we see in our books is that at this price it means that government will be paying about N3 billion every month to subsidise power and we cannot carry that kind of subsidy. “Ultimately, the point is that the burden to government of massive subsidy of about N3 billion or more in a month is not passed on to us,” said Fashola.

Ejiofor Alike As part of its drive towards attainment of optimal service delivery and customer satisfaction, Eko Electricity Distribution Company will soon sign memorandum of understanding with the United States Agency for International Development (USAID). The MoU is for technical assistance from USAID under the US Government-funded Power Africa Transactions and Reforms Program (PATRP) Inc. The PATRP which is designed to bring more electricity to Sub-Saharan Africa through utilization of transaction-centred approach, is a five-year USAID technical assistance project being implemented by Tetra Tech Inc. Under the MoU to be signed, the technical assistance will cover provision of management support to address losses, strengthen management controls and enhance the required performance turnaround. The assistance will also help demonstrate loss-reduction strategies as well as other improvements that will serve as

demonstrative effect for other distribution companies in the country. Speaking at the inaugural meeting between EKEDC and Tetra Tech Inc. in Lagos, the President of Tetra Tech Inc., Mr. Dean White said Tetra Tech. has a rich background of experience of partnering and managing power utilities in Africa and as such, he looked forward to a successful partnership with EKEDC. Also speaking at the occasion, the Chairman, Board of Directors of Eko Electricity Distribution Company said the company would continue to do everything possible to bring about the desired turnaround in the power situation of the country especially in the Company’s licence area. He said he was confident that the partnership with USAID through Tetra Tech Inc. was a step in the right direction which would in the end, yield positive result to the satisfaction of all stakeholders. Momoh then assured that all conditions and responsibilities required from EKEDC for the partnership to work would be met.

T H I S D AY • TUESDAY, MAY 17, 2016

BUSINESSWORLD

ENERGY

Reaping the Benefits of Partial Deregulation After trillions of naira was frittered away on petrol subsidies, Ejiofor Alike reports that the new federal government policy on fuel imports is belated but laudable After much pandering to political interests, rather than overall economic interest of the country, the federal government, through the Petroleum Products Pricing Regulatory Agency (PPPRA) has finally done the needful by ushering in a regime of partial deregulation of the downstream sector. Though this is the best thing that has happened to the Nigerian economy and the downstream sector of the oil and gas industry in two decades, it is a however a decision that should have been taken years back for Nigeria to reap the full benefits and avoid the avoidable wastes of yesterday. The market has been clamouring for full deregulation for a number of years to free it from bureaucratic bottleneck, economic losses, non-capacity utilisation and perennial crisis engendered by government’s restriction of the volume of business in the sector through the subsidy regime. However, before this present administration succumbed to the market dynamics, trillions of naira had been frittered away by successive administrations, sustaining the fuel subsidy regime. Efforts by the successive administrations to remove subsidy were successfully resisted by labour unions and other political interest that played to the gallery and refused to buy-in. The first bold attempt to remove subsidy was made by the former administration of President Goodluck Jonathan, which increased the price from N65 to around N140 per litre. However, in their characteristic uninformed position, the organised labour and other civil society coalitions mobilised many Nigerians into a one-week street protests and mass action that shut down the entire social and economic activities of the country, forcing the government to re-adjust the price to N97 per litre. Avoidable wastes in subsidy Though the enthronement of a regime of partial deregulation is laudable, it is belated, given the enormous resources the country had wasted in payment of subsidy especially when crude oil price was around $100-$147 per barrel. For instance, in 2011, the federal government had budgeted N286 billion for subsidy payment but the rising crude oil price and the corruption that plagued the management of subsidy regime swelled the subsidy bill to close to two trillion naira in that fiscal year. Also with the international oil price averaging $111.67 per barrel in 2012 and the Nigerian market price for petrol at N141 per litre, the difference between this expected open market price (EOMP) and the subsidised price of N97 per litre was so huge and over one trillion naira was paid as subsidy claims and other associated expenditure, above the budgeted N888.1 billion. After series of controversial probes, and failed attempt by the government to remove it in January 2012, the government was forced to revise the 2012 budget, setting aside N656.3 billion for the payment of subsidy in that year and additional budget of N231.8 billion as outstanding for 2011, bringing the total budget to N888.1 billion. In 2013, the government set aside N971.1 billion for the payment of subsidy and retained the same figure in the 2015 budget, according to the first Medium Term Expenditure Framework (MTEF) and fiscal strategy presented in September 2014. The astronomical rise in crude oil price to $115 per barrel in June 2014 swelled the subsidy claims to unsustainable levels. Even though the initial subsidy projection was reduced by half with the falling crude oil price, which necessitated the revision of the budget benchmark, the government still huge claims as exchange rate differentials under the corruption-ridden subsidy scheme in 2015. For instance, while N1 trillion was paid in 2015, about N16.5 billion was paid between January and April 2016 and these payments would have been avoided if partial deregulation had been implemented years back. So, the PPPRA’s decision to partially deregulate is long over-due, especially given the challenges

New fuel policy to eliminate queues in Filling Stations in the forex market. Imperatives for new regime The new regime of partial deregulation became necessary as unavailability of foreign exchange and inability to open letter of credit had forced marketers to stop product importation and imposed over 90 per cent supply obligation on NNPC since October 2015 in contrast to the past where NNPC accounted for 48 per cent of the national requirement. NNPC lacks the resources for providing 90 per cent of national demand as the corporation was not designed to meet this increase in supply, which resulted in acute fuel scarcity across the country. NNPC continued to utilise crude oil volumes outside the 445,000 barrels/day thereby creating major funding and remittance gaps into the Federation Account There is no provision for subsidy in 2016 appropriation and thus, no budget for the N16.4 billion bills incurred on subsidy monthly. Renewed insurgency and pipeline vandalism in the Niger Delta has drastically reduced national crude oil production to 1.65 million barrels per day as at today against 2.2 million barrels per day planned in the 2016 budget, further reducing income to FAAC and also affecting crude volumes for petrol conversion and impacting government’s forex earnings. Resultant fuel scarcity has created an abnormal increase in price resulting in Nigerians paying averages of N150 – N300 per litre as prevalent hoarding, smuggling and diversion of products has reduced volumes made available to consumers. In the absence of available forex lines or crude volumes to continue massive importation, it became evident that unless supply and distribution are liberalised, the long queues will persist, diversion will worsen and the current prices will spiral out beyond the reach of the masses. Enhancing private refineries Though the removal of subsidy is late in coming, it is better late than never as it will set the downstream sector on track towards, thus boosting the economic fabric of Nigeria. Nigeria is Africa’s top crude oil producer but the largest importer of petroleum products due to the weak local refining capacity occasioned by the collapse of the refineries and the unwillingness of investors in private refineries because of the inefficient and ineffective subsidy regime.

Successive administrations issued private refinery licenses to investors but these investors did not commit funds because of government’s decision to subsidise the cost of petrol. Only Africa’s richest man and President of Dangote Group, Alhaji Aliko Dangote and the Chairman of Integrated Oil and Gas Limited, Capt. Emmanuel Ihenacho took the bull by the horns by committing to the establishment of private refineries in a regime of subsidy. The recent withdrawal of subsidy will incentivise other investors to invest in private refineries, thus creating employment opportunities, saving the foreign exchange used in importation of refined products, boosting Nigerian economy and earning foreign exchange for Nigeria but making the country a net exporter of products. Boosting capacity Subsidy regime was characterised by nonutilisation of capacity by the marketers and depot owners, thus limiting expansion, employment generation and value creation. With subsidy regime, the marketers were given import ceiling through quarterly allocation of import permits, which specified the given volume of product each marketer would bring into the country in a given quarter. The measure adversely limited the capacity of the marketers as they were not allowed to import to their full storage and financial capacity but within the limit that could be accommodated by government in subsidy payment. For instance, marketers and depot owners that invested heavily in storage capacity and could import up to 300,000 metric tonnes each in a quarter, were given between 30,000MT and N90,000MT import permit each in a quarter. This obviously led to empty tanks in all the private depots, thereby adversely affecting their capacity to expand and boost the Nigerian economy. The subsidy removal will therefore give the marketers the latitude to source for limitless funding and import to their full capacity, thereby enhancing more expansion and engendering healthy competition by the operators for the benefits of Nigerians and the Nigerian economy. The competitiveness of the operating environment will no doubt bring down the pump price of the product as each operator struggles to deliver the best service at a competitive price. 200,000 new jobs underway Justifying the new regime, the federal government has argued that that the new price regime will

create additional 200,000 jobs in the country, according to a bulletin issued by the Ministry of Petroleum Resources at the weekend. According to the bulletin, the new price template would potentially create jobs through the envisaged new investments in refineries and the retail of crude oil products. However, given the huge potential in capacity expansion that will be engendered by the new pricing framework, PPPRA’s new pricing regime has the capacity to create limitless jobs in the industry and the economy. The new pricing template would also prevent potential loss of nearly 400,000 jobs in existing investments in the sector, which had been under threat in recent years due to the increasing challenges that faced the operators under the subsidy regime. In the long run, the new regime will eliminate the recurrent fuel scarcity crisis by ensuring the availability of the products at all locations of the country. It will also ensure the total elimination of hoarding, smuggling and diversion of the product while also stabilising price at the actual product price. To ensure that marketers do not take advantage of the partial deregulation to shortchange consumers, the government, through the PPPRA, would monitor the new price to ensure that citizens get a fair value for the products they purchase. The new price will also enable marketers to source their foreign exchange independent of the Central Bank of Nigeria and ensure adequate product supply in all locations of the country. Having saved the money spent in the payment of subsidy, the government, by removing subsidy, will reallocate the funds on its statutory functions of boosting power generation, security, provision of education and health. Also having eliminated subsidy payments, funds will now be available for the full payment of monthly Federal Accounts Allocation (FAAC) Committee. It will also provide additional funds for other palliatives and help in stabilising the economy by creating access to development loans. Apart from permanently eliminating subsidy payments, which gulped N1 trillion in 2015 and N16.5 billion between January and April 2016, the new regime will guarantee 100 per cent FAAC payment on allocated 445,000 barrels per day for the refineries and potential additional revenue stream which can be tailored towards palliatives.

T H I S D AY • TUESDAY, MAY 17, 2016

BUSINESSWORLD

ENERGY

Jadesimi: Nigeria’s Oil and Gas Industry Requires $20bn Private Investments Yearly The Managing Director of Lagos Deep Offshore Logistics Base (LADOL), Dr. Amy Jadesimi, who was a lead speaker during the panel session organised by the Petroleum Technology Association of Nigeria at the Offshore Technology Conference in Houston, Texas, spoke to journalists in Lagos on the crippling monopoly in oil and gas logistics and other challenges facing the industry. Ejiofor Alike presents the excerpts: What are the specific policies and enabling laws needed to encourage further investments or do you think that the existing laws are adequate to spur investments in oil and gas logistics? We were fortunate that senior members of the National Assembly participated in the conference sessions organised by PETAN. The honourable and distinguished members made it clear that they were 100 per cent ready to support the changes needed to make Nigeria the premier investment destination in West Africa. We have some good laws already on the books, which need to be fully enforced, such as the Local Content Act, which we were pleased to learn is even now being strengthened through an amendment by our law makers. We all have to ensure that we support real local content; that is investment by Nigerians in building facilities and providing services that add value. Real local content is easy to spot because it lowers costs and creates jobs. The idea that local content increases costs is false and that perception was only created due to rent seeking, monopolistic and agency contracting models that distorted our industry and short changed Nigerians. What is important now is that we make the most we can out of this short window of opportunity we are currently in and focus on making the changes in behaviour and tendering practices that will yield immediate positive results. Also, we cannot allow foreign companies to dominate the local market under the guise of providing services through indigenous companies who are in reality just commission agents. We need the full support of our government as our regulator and law maker to help create a level playing and maintain the strict rule of law, as this will provide fertile ground on which private sector investments can grow. Nigeria’s future has never been brighter; so let’s hold hands, sit down and get down to work How can you assess the participation of National Assembly members at the Nigerian Content panel session of PETAN at the recent OTC in the United States? The discussion during the Nigerian Content panel session of PETAN during OTC was very frank and open. We discussed the hurdles facing the industry and the huge opportunities that will be realised once these hurdles are overcome – which we know is only a matter of time. Indigenous private sector companies, some of whom have now made heavy investment in the industry, and the government have a lot of work to do together. This workshop was part of this work and it showed the readiness on all sides for all stakeholders to work closely together. Going forward, the industry requires huge private investments, at least $20 billion per year of investment is needed just to maintain the status quo and an additional $15 to 20 billion is needed to grow the market. This means Nigeria has to become more competitive, Nigeria has to become the hub and premier investment destination for the oil and gas sector in West Africa. Altogether the industry is targeting production levels of 3 million barrels of oil and 10 million scf of gas per day. Fortunately, the fundamentals of the Nigeria petroleum sector are very strong, with many acreages being self-funding, when they are in production and they have strong operational and cost controls in place. With this huge market potential and strong fundamentals Nigeria should naturally be the most attractive oil and gas investment

Jadesimi destination in the world. Currently local governance and global macroeconomic factors are in Nigeria’s favour; from an investment perspective – President Buhari’s administration is respected throughout the world and the low oil price means asset prices are attractive to international investors, creating a perfect window of opportunity at precisely the right moment in the life of our industry.

Cost reduction is another vital area that must be addressed; obviously maintaining an expensive foreigncontrolled monopoly over the provision of oil and gas logistics will literally kill our chances of growing the market and attracting new investors

The time has definitely come for public and private stakeholders to work together and quickly overcome the issues that might derail our otherwise bright future. These issues are well known and easily identifiable – which means that if we want to fix them we can do so immediately. Such issues include the long tender cycle; we commend the Honourable Minister of State for Petroleum Resources and the Group Managing Director of NNPC, Dr. Emmanuel Ibe Kachikwu, for taking significant strides towards reforming the sector, including his announcement that the tender cycle will be reduced to 6 months. However, six months is still longer than our neighbouring countries and to reassure investors that six months is achievable we would like to see concrete and detailed plans on how it will be achieved. Cost reduction is another vital area that must be addressed, obviously maintaining an expensive foreign controlled monopoly over the provision of oil and gas logistics will literally kill our chances of growing the market and attracting new investors. In 2007 NNPC and NAPIMS insisted that all logistics had to be done from Onne at prices that were the most expensive in the world. As a direct result of this, Nigeria lost billions in investment to neighbouring countries and exploration ground to a halt. Now, in this new era of real local content, with many facilities operating across the country, and with the immediate need to attract tens of billions in private investment we are urging. All stakeholders to come together and focus on collaborating to grow the market – which will naturally create more

work and good returns for all participants, both old and new. What is the role of LADOL in this investment drive? LADOL is playing a prominent role in the entire value chain but particularly in the areas of cost reduction and job creation. Operators that carry out their services at LADOL have halved their offshore drilling and production costs, sending a message to the global market that Nigeria is an attractive location from which to support your offshore blocks. Cutting costs also makes investment decisions for future exploration and production in Nigeria easier and quicker. For Nigerians wanting to participate in the sector for the first time, our low cost solutions make their business plans viable and our word class facilities make it possible for them to compete on a global scale. We also expect that our example will encourage investment in other new facilities. To achieve our market ambitions we need several more facilities and service providers in Nigeria, we need to create clusters of service providers, engineering companies and fabricators all over the country, just as they have in Norway, Aberdeen, Houston and Louisiana. LADOL’s ship building yard was built in just less than one year, so any new investors can use that as a benchmark, proving how easy it is to build new capacity in Nigeria, making that a viable option for all future projects. LADOL is still developing and building but our future success depends on other investors and facilities also coming up – so that we have the capacity across the nation to make Nigeria West Africa’s hub.

T H I S D AY • TUESDAY, MAY 17, 2016

BUSINESSWORLD

INDUSTRY

New Petrol Regime Gets Private Sector Endorsement Crusoe Osagie provides insight into the overwhelming support of the private sector for petrol imports Last week, Nigerians who are already in dire straits from the effects of a seriously deflated economy and shrunk purchasing power, were again buffeted by the announcement of nearly a hundred per cent increase in the pump price of the most used fuel, petrol. Announcing the decision to increase the pump price of petrol last Wednesday, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said government reviewed the current fuel scarcity, supply difficulties in the country, and the exorbitant prices paid by Nigerians for the product, which ranges on average from N150 to N250 per litre currently. He noted that the main reason for the current problem was the inability of importers of petroleum products to source foreign exchange at the official rate due to the massive decline of foreign exchange earnings resulting from low oil prices. “As a result, private marketers have been unable to meet their approximate 50 per cent portion of total national supply of petrol. “It has now become obvious that the only option and course of action now open to the government is to take the following decisions: “In order to increase and stabilise the supply of the product, any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by the regulatory agencies. “All oil marketers will be allowed to import petrol on the basis of forex procured from secondary sources and accordingly, the PPPRA (Petroleum Products Pricing Regulatory Agency) template will reflect this in the pricing of the product. “Pursuant to this, PPPRA has informed me that it will be announcing a new price band effective today, 11th May, 2016 and that the new price for petrol will not be above N145 per litre. “We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices, as we have experienced with diesel. “In addition, this will also lead to increased product availability and encourage investments in refineries and other parts of the downstream sector. While this declaration drew the wrath of the organised labour, who immediately began to hold meetings and strategise on how to resist the policy, their counterparts in the private sector rose in defence of government and openly hailed the decision of the federal government. NACCIMA Hails Decision The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) in its reaction, commended the decision to finally take “the bold step to remove subsidy on petrol.” The President of the Chamber, Chief Bassey Edem, stated that the step was an attestation to the political will of the present government to put an end to the incessant fuel scarcity being experienced in the country, while reducing the pressure on foreign reserve as a result of huge demand for petrol import. “However, it is pertinent to note that deregulation with the influence of government in pricing is not good for the economy. Therefore we counsel that government should allow market forces to determine price instead of fixing a ceiling of N145 per litre. “Accordingly, we counsel that the Department of Petroleum Resources (DPR) and the Petroleum Product Pricing Regulatory Agency (PPPRA) be restructured and merged into one regulatory body for better monitoring and efficient service provision,” he said. LCCI Says Its Inevitable Also, the Director-General, LCCI, Mr. Muda Yusuf, said the decision by the federal government to liberalise the petroleum downstream sector was inevitable given the acute resource constraints that the country was faced with. Yusuf, in a statement, also pointed out that over-regulation of the sector and the subsidy

Kachikwu regime had put enormous pressure on government finances and on the country’s foreign reserves. According to him, it was evident that the policy was not sustainable, stressing that the review was in the long-term interest of the economy and the people. “Petroleum subsidy management has been characterised by serious transparency issues for several decades. There are two components of the subsidy phenomenon. “The first is the actual subsidy, which is the differential between the pump price and the landing and other costs of fuel. “The second (and more disturbing component) is the blatant corruption inherent in the fuel subsidy regime. “For several years, the Nigerian economy suffered severe bleeding from this phenomenon; with subsidy payments in the one trillion naira threshold, and even more. “In an economy with a huge deficit in economic and social infrastructure, it was simply scandalous. It is in the overall interest of the economy and citizens for it to be discontinued,” the LCCI boss said. He maintained that one of the critical

Actually, we have been advocating the deregulation of the product for some time now, so it is a step in the right direction

Jacobs elements of the oil and gas sector reform, particularly the downstream sector, was the complete deregulation of the sector. He added: “This will create a number of advantages for the economy. It will free resources for investment in critical infrastructure such as power, roads, the railway projects, and in the health and education sectors.” MAN Backs FG MAN, in its reaction, also threw its weight behind the federal government’s new petrol import policy. President of MAN, Dr. Frank Udemba Jacobs, told THISDAY that it was a correct decision to deregulate the price of petrol, because most members of his association had been paying well above the official price for months. “I think it is a good decision to deregulate. Actually we have been advocating the deregulation of the product for some time now, so it is a step in the right direction. “In the short term, prices will go up, but if the government can hold the price at a maximum of N145 per litre, it will be of benefit to manufacturers because most of our members especially outside Lagos and Abuja have been paying over N160 per litre of petrol. “If you look at diesel which was deregulated a long time ago, you will see that the product has since stabilised at a lower price. The same thing will happen with petrol. “The forces of demand and supply will eventually lead to fair and stable pricing,” he said. While some market watchers were disappointed with the OPS for supporting a decision that will inevitably increase the suffering of Nigerians, others said the cost inconveniences will only be felt in the near term. Apart from the opportunity for investment in local refining which appropriate pricing of the product presents, the private sector leaders also reason that the worst effects that can result from the increase in the price of petrol have already been felt and absorbed by Nigerians. The belief is that although on paper the price of a litre of petrol has been N86.50 not

up to 30 per cent of Nigerians got the fuel at that rate. Opinion Polls Result An opinion poll released by a public perception statistics firm, NOIPolls, recently, showed that a vast majority of Nigerians, about 85 per cent bought petrol in April above the official pump price of 86.50 and at an average pump price of 176 per litre. The poll also stated that the North-east and South-east geopolitical regions of the country recorded the highest average prices of N199 and N194 per litre respectively. The poll was undertaken to measure the challenges Nigerians have had to go through to get petrol in the last couple of months that petrol scarcity has persisted. It said in addition that among the 85 per cent of the citizen who bought petrol above the approved pump price of 86.50, almost six in 10, about 59 per cent of the respondents in its polls bought the product between 150 and 250 per litre. A statement from the polls agency said 50 per cent of its respondents in the exercise bought petrol from stations owned by independent marketer, while 24 per cent bought from major marketers’ filling stations, and 14 per cent from black marketers, leaving only 12 per cent who said they bought from stations operated by Nigerian National Petroleum Corporation (NNPC). The poll also revealed that 73 per cent of respondents use petrol to power their generating sets, thus highlighting the use of petrol to meet energy demands resulting from poor power supply. Similarly, 58 per cent of its respondents use petrol to power their cars and 28 per cent use petrol to power tricycles and motorcycles popularly known as Keke and Okada. According to the statement, the poll highlighted the mixed opinions expressed by Nigerians on the issue of petrol subsidy, with 48 per cent saying they support subsidy removal, while 52 per cent say they do not support the removal.

T H I S D AY • TUESDAY, MAY 17, 2016

BUSINESSWORLD FrieslandCampina WAMCO Moves to Boost Local Content Beyond 30% Stories by Crusoa Osagie The Managing Director of FrieslandCampina WAMCO Nigeria Plc, Mr. Rahul Colaco, at the weekend, announced the company’s commitment to raising the percentage of local dairy raw materials contribution to its products above the current 30 per cent. Colaco who spoke to journalists after the company’s 43rd annual general meeting in Lagos, stressed that more effort is being channeled towards enhancing the company’s initiative called the Dairy Development Programme (DDP) which engages local farmers to produce and supply raw milk to the company. According to him, “To further increase its local content and support the federal government’s initiative to grow the agriculture sector, FrieslandCampina WAMCO Nigeria Plc commenced the DDP in August 2010. This is gradually developing into a full national programme as the company is dedicated to make the DDP a success by ensuring the transfer of technology know-how on milk production for Nigerian farmers.” He said through DDP, the company’s investment in local diary sector by sharing knowledge and expertise, will contribute to improving the quality and quantity of

raw milk, the social position of farmers, increase selfsufficiency and food security of the nation. He added that the company will maintain its number one position as the nation’s leading milk manufacturing company by investing in its people, capacity expansion projects and by being an excellent corporate citizen. However, he stated that the company’s annual turnover was N120.72 billion in the year under review, saying that the company’s commercial and financial performance remained satisfactory in spite of the harsh business environment. He said the company’s turnover had decreased by 4.5 per cent from N126.44 billion in 2014 to N120.72 billion in 2015, maintaining that Profit Before Tax (PBT) however increased by 13.3 per cent from N16.50 billion to N18.60 billion as a result of the significant reduction in the cost of sales despite increased operating and finance costs. He pointed out that the Board of Directors has proposed a total dividend payout of 100 per cent of the company’s PAT for the previous year, which is equivalent to N13.73 per cent from N0.50 share, adding that an interim dividend of N3.96 per N0.50 share was paid in November 2015 and app final dividend of N9.77 per N0.50 share was approved by shareholders.

INDUSTRY

FG to Launch Online Platform to Boost Made-inNigeria Goods Worried about the low level of patronage given to madein-Nigeria goods and services as a result of lack of trust in quality, price and durability, the Federal Ministry of of Industry, Trade and Investment (FMITI) has announced plans to launch an online ecommerce platform, buyNaija , to showcase, promote, quality and certified made-in-Nigeria goods and services to the world. The Chairman, Project Management Team, FMITI, Mr. William Otabil, explained that the platform which is first of its kind is going to be a portal strictly to sell made-in-Nigeria goods and services. The initiative, which will be launched in six weeks’ time is in partnership with the Manufacturers Association of Nigeria (MAN) to ensure

that only goods and services that are certified get on the platform. According to him, “This is why we are signing this Memorandum of Understanding (MoU) from bottom-up. Products that will be bought from the portal are all genuinely certified, of good quality, not smuggled, not counterfeited products and proudly made-in-Nigeria. ” Otabil, in an MoU signing ceremony to seal the partnership with manufacturers, said the platform will serve as a one-stop portal where over 1 billion Internet shoppers, 340 million ECOWAS markets and close to 200 million Nigerians can access anywhere in the world to get quality goods and services. “This is a very huge market and we want to make sure that goods and services that

are made-in-Nigeria can reach anybody in the world and are sure of the quality at affordable prices. This a big opening for Nigerian made goods and services,” he added. In his words: “We are looking at retail and wholesale while also targeting procurement offices in all the tiers of government. It is a one-stop referral for procurement entities looking for top quality products and services” According to him, one of the challenges of local patronage is that procurement offices claim that they do not know where to find made-in-Nigeria goods, saying this is why they violate the existing procurement laws. “Part of the MoU we have signed is featuring a task force that will have members of the press to monitor, evaluate and

report on violation of the existing local patronage laws by the procurement agencies. Buying made-in-Nigeria is a serious business because the lives of our people depend on it. This government is committed to looking inwards, so I believe all Nigerians will join hand together to buy that which we produce. This portal is a one-stop unique place where you find made-in-Nigeria goods and services and you are sure of their quality,” he stressed. He noted that the portal has seen companies registering, pointing out that products that do not have NAFDAC numbers will be assisted along with MAN members to ensure that some of the challenges hindering micro enterprise development are addressed.

NASCO Makes Giant Stride, Gets 18 Products ETLS Certified NASCO Group of companies recently made a giant stride as it secured the ECOWAS Trade Liberalisation Scheme (ETLS) authorisation to export 18 of its products to all West African countries. The Chairman and Chief Executive Officer (CEO) of NASCO Group, Dr. Attia Nasreddin, who was elated, disclosed this during an interactive session with journalists at the weekend, added that it was a landmark in the history of the organisation, stressing that the approval covered all the 18 products, which the company applied for, which signified a 100 per cent success. He said the products, which the authorisation secured include food and house hold items, including all the flavours of NASCO cornflakes, NASCO biscuits, NASCO detergents and all brands of dish and hand wash. Outlining the benefits of the ETLS authorisation, Nasreddin said this will give NASCO increase in market access, which means that all the registered products would be traded duty and quota free with expanded promotion of economic integration within the West African sub-region. This, he added, will also lead to anticipated increases in profitability margins, for participating entities and products. Nasreddin also said that exports through the scheme

would enable exporters to access loans and grants from the Federal Government and other multilateral agencies, and these are spelt out from time to time by the Central Bank of Nigeria (CBN) and other quasi financial institutions. He added that qualified and certified entities would enjoy participation in international trade fairs within the subregion at government expense through the Nigerian Export Promotions Council (NEPC) while exporters would key into and benefit from reimbursements under the soon-to-be revived Export Expansion Grants (EEG) scheme of NEPC. Marketing Consultant and Public Advisor of the group, Mr. Haroun Audu, while outlining what ETLS was all about, said that the ECOWAS Trade Liberalization Scheme first came into existence in 1979 with agricultural products and artisan handicrafts products covered at the initial state. He said that by 1990, the scheme was expanded to include industrial good, which created the need for rules defining the notion of ECOWAS ‘originating products’ and ‘rules of origin’. Rules of origin, he said stipulates that for any product to be traded duty and quota free within the sub-region, it must among other criteria be wholly produced within the sub-region.

ENDORSEMENT

L-R: Human Resources Director, Lexcel Group, Mr. Wale Dosunmu; Nollywood Actor, Emeka Ossai; Nollywood Actor, Ik Ogboanna; Acting Managing Director, Grand Oak Ltd, Aare Fatai Odesile; Group Executive Director, Lexcel Group and Head, Drinks Business, Mr. Adekunle Rosiji (second right) and Managing Director, Emma Ogbata & son, Mr. Emmanuel Ogbata during the re-launch of Lord’s Dry Gin at the Company’s Distributors Conference held at Golden Tulip Hotel Festac, Lagos ...recently

Chemstar Harps on Health and Safety for Higher Productivity Manufacturer of Finecoat and Shield Paints, Chemstar Paints Industry Nigeria Limited, has emphasised the need for a healthy workforce and a conducive environment for workers to achieve increased productivity. The company in a statement, expressed deep concerns over the health and safety of workers, as well as work environment in the country, saying that good work environment conditions are critical to keep workers fit to achieve organisational goals. The Deputy Managing Director (DMD), Mr. Adedayo Paseda, who disclosed this at this year’s edition of the annual week-long Health and Safety Week, organised by the company, said any industry that wants to overcome the challenge facing the industry, should address the welfare of its workers in terms of their health and safety. With the theme: “Healthy Lifestyle: Key to Personal Productivity,” he said the four-day programme was being organised

yearly to equip the over 1,000 workers with health tips on healthy living and protecting their environment both at work and their homes. Activities for the four-day programme were sensitisation rally, health talks and free medical checks, health/ environmental sensitization, fire preventive lecture and drilling, in which medical experts and professionals as well as officials of the Lagos State Fire Service were on hand to give talks, conduct medical checks on the workers and drilled them on practical demonstration to use fire- fighting equipment to put out fire. “The need for the programme cannot not be over emphasised since the awareness about health and safety issues around us has been on the increase due to rapid industrialisation and the challenges posed in the lives of the workers and the operations of the company,” Paseda said. Given the operational demands of the company, which accorded the welfare

of the workers a top priority, he added: “For us to do anything well, there is the need for adequate health and safety information and this is what the week is going to bring together medical experts and fire service professionals to provide us the right information about our safety and health.” During the event, medical checks were conducted on the workers on blood level, sugar level, diabetes, hypertension, blood group and genotype, among others to ascertain their health condition and to prevent any form of health hazard. On her part, the Head of Administration and Human Resources, Mrs. Toyin Robert, said the essence of the programme was to slow down health-related hazard and for the workers to cultivate the spirit of safety and health. While describing the outcome of the medical checks on workers, she said the turn-out was overwhelming, adding that they had already keyed into the company’s vision of quality health, safety and

environmental protection. To ensure a healthy and safe environment, Robert explained that there is a safety committee set up by the company, which inspects the drainages and ensures that the water is treated before releasing it to the drainages in the community. According to her, the health and safety week was instituted by the 21-year-old paints company, to create the platform for the right knowledge about safety and healthy living. Apart from the annual week, the environment-conscious company, Robert organises pep-talks on health and safety every week and in-house training as well as counselling on environmental safety. To ensure safe fire environment in line with the recommendations of the trainer from Lagos State Fire Service, Mrs. Esther Johnson, a Fire Superintendent I, the company expressed its readiness to identify some workers who will be constituted and trained as the company’s Fire Marshalls.

T H I S D AY • TUESDAY, MAY 17, 2016

BUSINESSWORLD

NEWS

Benin Disco to Conclude New Billing System in June Ejiofor Alike The Benin Electricity Distribution Company (BEDC) has completed the migration of its customers to a new billing system that will be concluded next month, as part of the company’s efforts to provide better billing information. In a statement made available to THISDAY at the weekend, the company said the new billing format had commenced for customers in Edo “effective March 2016,” for all Maximum Demand (MD) customers and all other categories of customers.

“In order to provide better billing information to customers, BEDC has commenced migration to a new billing system named Electricity Billing Management System (EBMS) Effective March 2016, the new billing format commenced for all Maximu Demand (MD) customers and all other categories of customer in Edo. Customers in Delta, Ondo and Ekiti will be moved to the new billing format effective April 2016,” the company said. Sensitising the customers on the new billing system, the BEDC said reading of custom-

ers’ meter is expected to be done monthly or at least once in three months. But whenever a reading is not done in any month, an adjustment will be used with the subsequent reading, the company said. Also, where a customer’s meter is found to be obsolete or incorrect, the meter reading will be suspended and direct/ estimated billing will be utilised prior to the replacement of the meter. Such suspension will be notified to the customer via a letter. “All customers under estimated billing will have

their estimation done based on NERC approved cluster billing average methodology. Where bypass is noticed during meter reading and/or billing period, the read information may be suspended and customer billed appropriately on Direct/Estimated using NERC cluster billing methodology,” the company added. BEDC’s billing system had earlier received accolades from customers, including civil society activist, Rev. Olu Martins. Martins had at forum, explained to residents of

communities in Egor area of Benin, Edo state, that the reason why they are experiencing power outages arising from inadequate supply, was that BEDC is facing challenges due to inability of Generating Companies (GenCos) to generate more electricity for domestic and industrial needs. Martins, who made the assertion during a town hall meeting held in Ugbowo, said there was a great challenge of power in Nigeria with less than 5,000 megawatts to a population of 170 million, stressing that the current energy output of

1,500 was a reflection of the perennial energy crisis that was yet to be addressed. He explained that the power sector had been starved with investment since 1984 whereas the country has increased in population and infrastructure. The Civil Society activist added that current operators of BEDC spent huge amount to purchase the company and “it is only natural for them like businessman to get their returns on investment and equally make profit, hence they are to give services only to those who will pay for it”.

NAEE: Naira Will Stand Pressure from Dollar on New Fuel Price Chineme Okafor in Abuja The Nigerian Association for Energy Economics (NAEE) has dispelled fears over possible collapse of the naira by the US dollar on account of the government’s recent policy on petrol consumption. NAEE said at a press briefing in Abuja that the development would not lead to further crash or loss of value by the naira against the dollar. It insisted that oil marketers who will need foreign exchange to fund their fuel importation have multiple options to sources for them and not the Bureau De Change (BDC) as envisaged.

The association’s position was also buttressed by the Petroleum Products and Pricing Regulatory Agency (PPPRA) which stated that oil marketers could use the interbank exchange rates in their imports. NAEE’s President, Prof. Wumi Iledare, explained that while some macro-economic shock is to be expected from the subsidy removal, it would however not result to a drastic slide of the naira against the dollar because the oil marketers would look to other forex sources. He explained that there are dedicated markets where such huge demand for forex can be sourced by oil marketers.

Iledare also said the huge capital demand of oil business was such that offshore forex sources were readily available to close out transactions like fuel importation. “You can expect some macro-economic shock. I do not expect that the place where the marketers will be getting forex is where furniture importers will have to go. It depends on the volume of forex you need that will give you power to negotiate. “The price we pay for a dollar is not necessarily uniform across the sectors, even without going through the government it’s still possible for marketers to source the dollar independent of

the bureau de change. That is why the minister wasn’t using forex rate obtainable in the bureau de change to calculate the price of petrol imports because there are other alternative sources for this type of market,” said Iledara. He also noted that business savvy oil marketers can even secure forex at a cheaper rate if they can convince those who deal in forex of their ability to repay them with a premium. He maintained that offshore traders know that there is no better place to invest than Africa right now, adding: “all we need to work is the rule of law, the governance structure and empowered institutions, as this will enable the market take

care of itself.” Iledara further explained: “When I talk about parallel market I’m not talking about bureau de change, I’m looking at alternative sources of forex that do not necessary have to be resident in Nigeria. “Why then would they go and import petrol if they don’t have alternative ways to pay? For example, if Shell or Total is interested in getting forex for petrol import do you think they will go to the bureau de change? All of these things will play out easily if the rule of law is allowed to govern the process.” He further asked the government to completely deregulate the downstream sector of the petroleum industry to attract investments,

adding that setting a price cap of N145 per litre for petrol was wrong. Iledare said a complete deregulation that allowed market forces to determine the price of the product should have been adopted instead of what the government announced. He also acknowledged that Nigerians would face some rises in price of goods and services, but noted that such increases would only be for the short term. “The issue of petroleum products pricing and petrol subsidy removal have been of national interest, given the nature of the product in question.

T H I S D AY • TUESDAY, MAY 17, 2016

PROPERTY & ENVIRONMENT SON: Nigeria Loses Lives, Property to Substandard Steel Pipes The nation can no longer lose precious lives and property to the wiles of dubious manufactures of substandard steel pipes in the country, says the acting Director General of the Standards Organisation of Nigeria (SON), Dr. Paul Angya. He has warned manufacturers that violators of set standards would be prosecuted, reports Bennett Oghifo

L-R: Director Operations, Standards Organisation of Nigeria, Mr Felix Nyado, Director, Compliance Directorate, Bede Obayi, acting Director General, Standards Organisation of Nigeria, Dr Paul Angya, Director, metrology, Obiora Manafa, Director, Products Certification Directorate, Mr Bayo Adegun; and Director Laboratory, Mrs M. Owoyele at the SON and Steel Pipes Manufacturers forum in Lagos...recently

igeria has a set of standards, NIS 324:1997 and NIS198: 1984, prescribed for building materials used in the construction industry but, as in most sectors, the problem has always been poor or lack of enforcement of these standards. The Standards Organisation of Nigeria (SON) is certain that the prevalence of substandard steel pipes manufactured in the country accounts for the high number of avoidable construction site accidents that often lead to needless deaths and lose of valuable property. Angya, who addressed a consultative forum between his organisation and Steel Pipes stakeholders in Lagos, recently, said the country was currently losing lives and properties to the activities of some dubious steel manufacturers producing sub-standard steel in the country. These manufacturers ignore applicable industrial standards, he stated, saying some of these companies were even manufacturing according to the specifications given to them by particular clients. The usual practice… The SON director general noticed that these companies find it convenient to manufacture low quality pipes to cut corners and make huge profits to the detriment of those who eventually become victims of their substandard products. He said, “When our inspectorate and compliance team visited some steel pipes companies recently, it was rather amazing that some of them were not even aware of the applicable industrial standards, some of the companies were even manufacturing according to the specifications given to them by particular clients.

“We equally were astonished that some of the companies are yet to key into the SON’s Mandatory Conformity Assessment Programme (MANCAP) for local manufacturers even as there is no evidence of SON’s Conformity Assessment Programme (SONCAP) certification for their raw materials importation. “The situation cannot be tolerated in an organized economy. We have discovered the level of pipes in circulation without any identification marks for traceability of the pipes to particular manufacturers in line with the requirement of NIS 324:1997 and NIS198: 1984, non-compliant gauges, early corrosion as well as short length.” Consequence of violation… The Standards Organisation of Nigeria (SON) has thus issued a 90-day ultimatum to manufacturers of steel pipes in the country to sanitise the industry and comply with global standards for manufacturing of steel pipes in the country or face the wrath of law. Angya said companies found manufacturing sub-standard steel pipes would not only be shut down but also that the owners would be arrested and prosecuted. He said, “We therefore called this meeting to enable all hollow pipes manufacturing companies to know the right things to do and carry them out. As it is our style, immediate enforcement begins after this forum while we give a guided grace period of 90 days for those who want to tidy up their non-conforming operations before we carry out wholesome raiding, seizure and evacuation of all substandard pipes in warehouses and firms as well as prosecution of offenders.” According to Angya, “SON is poised to deal

with companies, manufacturers and dealers who have been cutting corners. If you are trying to dodge regulation and regulatory agencies that means you are not doing the right thing. “You and your company are circumventing the system; therefore you are one of those that do not want local industries to grow. We are determined to reduce the level of substandard products in circulation to the barest minimum; you are therefore offered this opportunity to embark on immediate house cleaning and serve your customers well.” The change mantra of Federal Government, he said had no boundaries, and advised the steel pipes manufacturers to key into the change process positively or face the consequences of non-compliance. Use of steel pipes… Steel Casing Pipe, also known as encasement pipe, is most commonly used in underground construction to protect utility lines of various types from getting damaged. Such damage might occur due to the elements of nature or human activity. Steel casing pipe is used in different types of horizontal underground boring, where the pipe is jacked into an augered hole in segments and then connected together by welding or by threaded and coupled ends, or other proprietary pipe connectors such as the interference-fit Permalok® interlocking push-on joint. The steel casing pipe can also be set up and welded into a “ribbon” and then directionally pulled through a previously drilled hole under highways, railroads, lakes and rivers. Steel casing pipe protects one or many of various types of utilities such as water mains,

gas pipes, electrical power cables, fiber optic cables, etc. The utility lines that are run through the steel casing pipe are most commonly mounted and spaced within the steel casing pipe by using “casing spacers” that are made of various materials, including stainless steel or carbon steel and the more economical plastic versions. The ends of a steel casing pipe “run” are normally sealed with “casing end seals”, which can be of the “pull-on” or “wrap-around” rubber varieties. Steel casing pipe is also used in the construction of deep foundations. Specification… Steel casing pipe generally has no specific specifications, other than the need for the material to be extremely straight and round. In some areas A.S.T.M. specifications may be required by project engineers. The specification most commonly called for is A.S.T.M. 139 Grade B. This specification gives parameters for minimum yield and tensile strength of the steel pipe being used for casing, and tolerances of straightness and concentricity. Steel casing pipe is often specified as ASTM A-252 which is a structural grade material that does not require hydrostatic testing and the inspection requirements are not stringent and it usually costs less than other grades such as A-53, A-139 or API 5L. Used natural gas line pipe is also used as casing on many projects because it is often reclaimed in very good condition and can offer a significant cost savings when compared to new steel pipe. Used pipe is most likely to not have any testing data associated with it and is generally used when the only required specification is a given diameter and wall thickness of steel casing pipe.

T H I S D AY • TUESDAY, MAY 17, 2016

PROPERTY & ENVIRONMENT

BIFM Nigeria set to Launch Ajayi: Real Estate is Strong Economic Driver FM Business Confidence Fadekemi Ajakaiye USD, amounting to 2.7 times company, he said “These are policies for the private sector, the world’s GDP. “Statistics in well conceived and well built which is better suited to run Monitor Property developers have been Nigeria also shows that the real units of diverse designs, with such enterprise. In his words

BIFM, a professional body for facilities management (FM), has launched its Facilities Management Business Confidence Monitor (BCM) Nigeria, in partnership with Business Day and led by the Institute’s Nigeria community group. The research aims to gain a full picture of FM sector confidence by canvassing the views of the sector’s senior decision makers as well as the teams delivering those services. It will ask for opinion on current business performance, the business outlook for the coming months, and individual career prospects of people working within facilities services organisations, large or small, at all levels and encompassing all roles. Speaking on the BCM, Chair of BIFM Nigeria, Wale Odufalu said, “Information is key to making strategic decisions, with timely and relevant information, uncertainty is reduced and organisations can make more informed decisions. Unfortunately the lack of industry data is one of the challenges faced in the FM industry in Nigeria. BIFM Nigeria believe the BCM will provide valuable insight and value to FM professionals, and the business community, on the business outlook for the next 12 months as it garners opinion from industry players at different levels from both the client side as well as the supply side of FM.” Peter Brogan, BIFM Research and Information Manager added, “On completion, the BCM will be able to show how confident organisations are, about the prospects of the FM industry in Nigeria over the year ahead; and how the existing performance of facilities

management professionals are rated within the market. This is a very exciting project for us.” Odufalu said, “BIFM’s community group in Nigeria was set up to support the growing FM industry and an increased number of FM professionals from across the country. With BIFM supporting a Business Confidence Monitor in Nigeria it demonstrates the respect of the existing FM market as well as the potential growth opportunities for the sector. “We are also delighted to have the support of the leading business publication in the country, Business Day. Its informative editorials, news and reports have commented on various areas of the economy such as construction, infrastructure, maritime, agriculture, oil and gas, to mention a few. It is therefore a great delight to see this respected media partner coming on board to work with the facilities management sector in Nigeria.” The British Institute of Facilities Management (BIFM) is the professional body for facilities management. Founded in 1993, it promotes excellence in facilities management for the benefit of practitioners, the economy and society. Supporting and representing over 16,500 members around the world, both individual FM professionals and organisations, and thousands more through qualifications and training. The BIFM Nigeria Committee are committed to supporting fellow FM professionals based in Nigeria by, for example, sharing knowledge and resources, facilitating events for industry professionals to network and learn and to contribute to promoting standards and best practice in the FM sector.

advised to always treat the real estate sector as a major asset class, store of wealth and strong economic driver, and should be overpowering in every operators’ consideration. Mr. Adetokunbo Ajayi, the Chief Executive Officer of Propertygate Development & Investment Plc, a frontline real estate development company, who gave the advice, said the need to ensure quality real estate products and services cannot be over emphasised. He admitted that operators in the sector were facing capacity challenges, funding constraints, harsh operating environment and pressure to deliver on bottom line, but insisted that there was need to focus on the status of real estate as economic enhancer. He said according to recent global real estate report, the value of global property at year end 2015 was put at 217 trillion

estate sector has grown over the years, making significant contributions to national GDP. The importance of real estate in addition to the above is further seen in its provision of platforms for our homes, businesses and places of leisure among others, thus impacting our built environment, and ultimately our living.” Addressing guests at a project completion parley, Ajayi said quality has remained a corner piece of Propertygate’s value delivery to its teeming customers. He disclosed that acquisition of real estate is typically the biggest investment made by individuals, and may represent significant portion of corporate assets. “We therefore view quality delivery as a non-negotiable part of our products and services”; he said. Commenting on the clusters of residential houses recently completed by the

adequate regards for standards, beauty and living. The joy of development is seeing a conceived idea comes to birth, with the pains of elongated development period, cost volatility and other challenges forgotten”. The company believes the units, which are value for money to investors, will in a modest way add to housing supply. Commenting on the Federal Government’s decision to partner the various state governments to build at least 250 houses in each state, the Propertygate boss said the government’s zeal to ensure housing for the citizenry is commendable. He however cautioned against the pitfalls of governments returning to direct housing construction. He advised that government should concentrate on providing the enabling environment in terms of infrastructure and

“All attention should not be devoted to increasing housing stock without addressing critical issue of overall living quality. It is regrettable that basic enforcement of traffic and environmental rules has made living in our cities rather hellish. What will be the point when our land mass is populated by houses, but liveability becomes a major concern. People do not just want to have a place to lay their heads, but in addition want to live in comfort and convenience”. He said our base level today, where majority of our people are still preoccupied with basic survival may tempt our decision makers to focus solely on shelter. We should however remember that this is 21st century, an increasingly globalised world, with highly mobile investments and workforce.

Global PFI Announces Board Changes

Catembe Court, Crown Estate, Lekki Penninsula, Lagos, built by Propertygate Development & Investment Plc.

Fadekemi Ajakaiye

Least Developed Countries to be Represented at Climate Talks

The Chairman of the Board of Directors of Global Property & Facilities Management International Ltd, Engr. Ibikunle Ogunbayo, is delighted to welcome, Mr. Olu Onakoya, first Nigerian Chairman/MD of Mobil Oil Nigeria, and Alhaji Suleman Abubakar, Chairman Imani Group, a major Real Estate Development company in Abuja, to the company. They are joining the company at time where the economic climate of the country is envisaged to provide the organisation with unprecedented growth and opportunity. They will complement the already rich and wide industry experience and expertise of the current board to support the strategic direction of the company to becoming the best IFM company in Africa by 2020. Mr. Onakoya has vast experience in the real estate industry, not limited to the confines of the oil and gas industry. He was project manager Mobil Nigeria when

the Mobil house was built and the first Facilities Manager of the building before rising to become the Chairman/MD of Mobil Oil Nigeria. In his remarks, “I am delighted to join this very experienced board to support one of the best facilities management company in Nigeria, I have been an outside observer of the company for some time, I look forward to working with the dynamic management team to take the company to the peak of the industry in Nigeria and Africa.” Alhaji Suleman Abubakar, as a property developer has worked with some facilities management companies and believes Global PFI is well positioned to be at the top of the industry. Hear him, “as a developer, the best is only what the market is asking for, Global PFI is known for quality and exceptional service delivery having been at the fore front of the industry as the pioneer’’. I am delighted to join the board and look forward to contributing to making the company the best.

The Chair of the Least Developed Countries group, Tosi Mpanu-Mpanu, will be in Bonn for the next international climate meeting from yesterday, May16-26. The Bonn meeting follows the adoption of a new global agreement on climate change in Paris in December, 2015. Parties will now begin negotiating how they will reach the goals set down in Paris. In the lead up to this important meeting, Tosi Mpanu-Mpanu said: “Reaching global agreement in Paris does not mean we can become complacent. We have drawn the blueprint and we must now begin construction of the rules and procedures that will bring the next phase of our global climate regime to life. A record-breaking 175 Parties united in New York on April 22 to sign the Paris Agreement, demonstrating that we have the political momentum to achieve this. “Building off current political momentum, the LDCs will

continue to push for early entry into force of the Paris Agreement, so that the world can benefit as soon as possible from its implementation. “Even if current pledges are fulfilled, the world is on a path to over 3 degrees C of warming, well above the global goal of 1.5 degrees set in Paris; and that is without considering that developing countries need support to the tune of $4tn to meet these pledges.” On the issue of climate finance, Tosi Mpanu Mpanu said: “The least developed countries are the least responsible for climate change, with developed countries bearing both the historic responsibility and the capacity to respond. Public finance to support developing countries needs to rise to meet the challenge that lies before us.” On the importance of adaption, Tosi Mpanu-Mpanu stated: “The earth’s oceans are rising, disease is spreading, our land is no longer producing the

food we need to survive. The world must adapt to meet the unavoidable impacts of climate change head on, or face the consequences.” Tosi Mpanu-Mpanu also emphasised the necessity of pre-2020 action: “We cannot sit idly waiting for the Paris Agreement to commence, the window of opportunity to act on climate change is closing. We must harness the power of fresh global cooperation to strengthen pre-2020 action.” From 16-26 May 2016, international negotiators will convene in Bonn, Germany, for a meeting which comes at a critical point in global climate change negotiations. The Bonn conference is the first meeting of Parties to the UNFCCC since the historic adoption by 195 countries of the Paris Agreement on climate change in December, 2015. The Paris climate change conference was a significant political achievement and seen as a turning point in global efforts to address climate

change. Political momentum was further strengthened on 22 April 2016, with 175 Parties signing the Paris Agreement in New York in preparation for the treaty entering into force. The Bonn conference is the next important step in this process as the new implementation phase of the Paris outcome begins. May 2016 will be the first session of the Ad Hoc Working Group on the Paris Agreement (APA). The APA’s mandate is to prepare draft decisions relating to aspects of the Paris Agreement requiring further elaboration, to be presented before the first meeting of the Parties to the Paris Agreement once the treaty enters into force. The focus at Bonn will be on starting the process of negotiating the development of the UNFCCC’s ‘rule book’ in light of the Paris outcome, so that the words countries agreed to in Paris are translated into the real actions that will address climate change.

TUESDAY MAY 17, 2016 T H I S D AY

T H I S D AY TUESDAY MAY 17, 2016

TUESDAY MAY 17, 2016 T H I S D AY

LIBERALISATION OF DOWNSTREAM SECTOR:

THE MOST COURAGEOUS DECISION BY BUHARI This might not sound good to the uninformed readers. But I wish to state unequivocally that the last week historic liberalisation of the downstream sector by President Mohammadu Buhari is the most courageous decision taken in the oil and gas, a sector that has become a breeding ground of corruption. The President could not have done otherwise if he truly wants the administration to make reasonable impacts on the economy and the living standard of Nigerians. Sooner than we expect, both investors and ordinary citizens will start reaping the gains of this courageous move. It would be recalled that ex-President Olusegun Obasanjo took a similar step to reposition diesel market. This is the reason Nigeria has since forgotten what it means to experience scarcity of diesel. Interestingly, shortage of diesel used to be the most excruciating pain consumers had to bear for decades. With the deregulation, diesel is not only now available but the resultant competition has also forced down the price. The price, which was close to N200 at the onset of the deregulation, has slowly climbed down to less than N130 at some filling stations. Such are the gains of doing away with market imperfections. We should also remember that upon assumption of office, late President Umaru Musa Yar’Adua wrestled with the stench – corruption – in the sector. He did come out openly to inform Nigerians that the sector paraded the worst cabal in Nigeria’s socio-economic environment. Then, he immediately liberalised kerosene with a promise to do same to petroleum motor spirit. But the cold hand of death snatched him before the promise could be realised. It could also be recalled that ex-President Goodluck Jonathan, in 2012, made a similar bold step to tackle the monster called fuel subsidy. But the move failed because promoters of the reform succumbed to intimidation. The government could not survive the stampede and blackmail the Nigerian Labour Congress (NLC), its affiliates and other trade unions staged.

should not be distracted by the imminent blackmail by the organised labour. Any attempt by the government to buy into intimidation by corruption and its antics in the important sector will spell doom for the economy and the future generations of this great country. Notwithstanding the gains of market liberalisation as we have witnessed and seen in other climes, it has been reported that labour is threatening to shut down the economy again if the President does not withdraw the decision and revert to the status quo. In whose interest is labour threatening the government? Obviously, not in Nigerians’ interest. Perhaps, it is for their selfish interest and that of their corrupt paymasters. Now that the President has pushed corruption in oil and gas from its high tower, the cankerworm is holding up precariously with a tip of its finger. The President must know, by now, that the battle will be fierce and that what he needs to be crowned is a little more courage. At the end, Nigerians will celebrate him for this noble but daring decision. Permit me to use the cliché, the mafias and the rot in the oil and gas sector have grown over the years and have taken the country hostage. They dictated the tune of successive administrations. The same system can manipulate anything, including the foreign exchange market, to make government feels that it has taken a wrong decision. But for how long can they hold up to their evil intrigues? Definitely, not forever! Now, what should we do? At a meeting of Vanguard for Sustainable Palliatives in the Petroleum Sector held in Lagos, at the weekend, we came up with key resolutions government could employ to complement the policy and similar initiatives in the oil and gas sector. We believe government should focus on the following actions to consolidate the success it has recorded in the industry:

Barely a year after, Nigerians were shocked to hear from the then governor of the Central Bank Nigeria (CBN), Sanusi Lamido Sanusi, that a whopping sum of $20 billion could not be accounted for in just two years. Where was the organised labour when other Nigerians rose to demand explanation on the whereabouts of the money?

1. Set up a Taskforce to monitor possible forex manipulation. The team should focus attention on every stage forex transaction zeroing on the beneficiaries. The team should also be able to monitor transaction dealers directly from pre-shipment to post shipment.

That was a point in our history when we needed the voice of the labour leaders more than ever. There was a deafening silence from the NLC and its allies at a time Nigerians needed them most. Could they have been part of the scam, unknown to us?

This job should not be left for the CBN alone. There are still the likes of Dora Akwunyilis and Attahiru Jegas in all facets of life in Nigeria who can carry out such tasks.

The missing money, the attendant blackmail and the suspicious quiet showed the enormous potential of subsidy to wreck evil! Twenty billion dollar could have built a modern rail from Lagos to Calabar or Calabar to Kano. But the government missed that glorious moment to give our children something to be proud of like the Asian leaders are currently doing. Yet, the amount was not enough to move labour to action. When the 2016 budget was padded by corrupt elements, what did labour do about it? Where they on vacation? Of course, we are not saying labour should not agitate; it is fine, as that is in what is obtainable in many countries. But here is people’s weapon being used for the wrong reason. In fact, it appears the whole essence of labour struggle in Nigeria is centred on pecuniary reasons. Perhaps, that is why there is always battle for its leadership position. Now that we are at the making of another historic reform in the PMS, President Buhari must not forget that the administration cannot get away with this notable reform without a fight. This is because corruption is one of the most difficult threats to fight owing to the enormous strength it has accumulated over the years. It is everywhere, and it can fight back from anywhere! For instance, corruption has the capacity to turn labour against the government over a policy, which even the blind and deaf ought to applaud. This is one reason Nigerians

2. The NNPC should intensify supply in the short-run so that the cabal will not be given room to frustrate the policy. It is our belief that prices will recede after the initial panic. We have seen that happened in diesel market. 3.

Government should monitor every dollar that comes in or goes out of Nigeria.

4. The CBN, either officially or unofficially, should increase the sale of dollars to petroleum product importers at an exchange rate that is not above N300/$. We believe marketers can still make profit at this rate. 5. Government should use state apparatus to stop the resurgence of insurgence in Niger Delta to stabilise oil production. 6. Government should not hesitate to seek help, locally and internationally, to curtail the fall of the naira, which we believe is being manipulated by round trippers who will soon be out of business. 7. Government should promote policies that could boost local production capacity and diversify sources of foreign earnings. 8. Government should not give in to distraction as this is a major weapon in the hands of those that are determined to frustrate this administration and prevent it from succeeding. Well-meaning Nigerians should come up with ideas on how to save the country. This is the only way we can build a Nigeria of our dream.

OLAWUNMI OLARENWAJU

Writing on behalf Vanguard for Sustainable Palliatives in Petroleum Sector

T H I S D AY TUESDAY MAY 17, 2016

‘Iron and Steel In Nigeria;

Prospects, Partnerships and Progression’ by Stanbic IBTC Bank Leveraging on its international expertise and experience, Stanbic IBTC Bank recently organised an executive business session in Lagos themed ‘Iron and Steel in Nigeria’ to focus renewed attention on the mining industry and encourage fresh investments in the sector. The event was attended by corporate clients of the bank, local and international mining industry stakeholders, regulators, and iron & steel experts. It also had the Honourable Minister of Solid Minerals, Dr Kayode Fayemi as Special Guest.

Dr. Kayode Fayemi (Honourable Minister of Solid Minerals)

From L-R: Sola David-Borha (Chief Executive Officer, Stanbic IBTC Holdings Plc), Dr. Kayode Fayemi (Honourable Minister of Solid Minerals), Raj Gupta (Chairman, African Industries Group), Yinka Sanni (Chief Executive Officer, Stanbic IBTC Bank Plc.)

Sola David-Borha (Chief Executive Officer, Stanbic IBTC Holdings Plc)

From L-R: Engr. Abdulahi Also (Director, Steel and Nonferrous Department, Ministry of Solid Mineral), Robert Tung (Director, Western Metal Products Company Ltd- WEMPCO), RP Singh (Group Director and Advisor, African Industries), Sohann Bagler (MD, AARTI Steel From L-R: James May (Steel expert, Steel-Insight) Haruna Jalo-Waziri (ED, Nigeria Stock Exchange), Dr Abiodun Abe (MD, BUA Steel), Raj Gupta (Chairman, African Industries Group), Yinka Mubarak (Bank of Industry), Engr. Olujie (Standard Organisation of Nigeria), Yinka Sanni (Chief Executive Officer, Stanbic IBTC Bank Plc)

From L- R: Sohann Bagler (MD, AARTI Steel), Engr. Abbey, (Project Director, Iron and Steel, BUA group), Lawrence Tung (WEMCO group)

Stanbic IBTC Bank Stanbic IBTC Bank PLC

RC: 125097

TUESDAY MAY 17, 2016 T H I S D AY

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TUESDAY MAY 17, 2016 • T H I S D AY

INTERNATIONAL

email:foreigndesk@thisdaylive.com

Kenyan Police Fire Tear Gas at Stonethrowing Protesters Police fired tear gas and water cannon at stone-throwing crowds protesting in central Nairobi against an election oversight body that they say is biased and should be scrapped, a Reuters witness reported. Officers armed with batons confronted hundreds of protesters outside the offices of the Independent Electoral and Boundaries Commission (IEBC), the third clash over the issue in less than a month. Kenya does not hold its next presidential and parliamentary polls until August 2017, but politicians are already trying to galvanise their supporters in a nation where violence erupted after the 2007 vote and the opposition disputed the 2013 result.

The opposition CORD coalition, led by Raila Odinga who lost the 2013 vote and unsuccessfully challenged the result in court, has accused the IEBC of bias and said its members should quit. IEBC officials have dismissed the charge and say they will stay. “For free and fair election, IEBC must go,” read a banner held aloft by one demonstrator on Monday. As numbers grew, police fired tear gas and water cannon from trucks parked nearby at protesters. A Reuters witness saw one protester carrying a bag of stones, while others threw them at police ranks. Police struck some protesters with batons. Last week, police fired

tear gas and water cannon at hundreds of protesters, some of whom threw stones. Police also used tear gas to disperse a protest last month. President Uhuru Kenyatta, who is expected to seek re-election next year for a second and final term, has urged opponents not to take to the streets. Despite the 2013 legal challenge, that vote proceeded smoothly and Odinga accepted the court ruling in a nation where ethnic loyalties usually trump policy among voters. After the disputed 2007 vote, about 1,200 were killed in ethnic fighting. Western diplomats have urged the authorities to work carefully with citizens to ensure peaceful elections in 2017.

Thousands of Afghan Hazaras Join Power Line Protest in Kabul Thousands of demonstrators from Afghanistan’s Hazara minority marched in protest through Kabul yesterday, accusing President Ashraf Ghani’s government of cutting them out of a multi-million dollar power transmission line project. Protesters demanded that the planned route for the 500 kV transmission line linking Turkmenistan with Kabul be changed to pass through two provinces with large Hazara populations, an option the government says would cost millions of dollars and delay the badly needed project by years. It says the current plan ensures that the two provinces of Bamyan and Wardak will get ample electricity even if the main transmission line does not pass through them directly. The line, intended to provide power to 10 provinces, is part of a wider TUTAP project backed by the Asian Development Bank linking the energy-rich Central

Asia republics of Turkmenistan, Uzbekistan and Tajikistan with Afghanistan and Pakistan. Despite fears of violence, the demonstration passed largely peacefully, with only isolated reports of trouble and Ghani thanked the protesters. A commission to review the plan will report within 10 days. However, the demonstration underscored the political tension facing the administration as it fights the Taliban-led insurgency and tries to get the shattered economy to its feet. The protest followed a rally in November against the murder by militants of a group of Hazara that became the biggest antigovernment demonstration in Kabul for years. Authorities, fearing a repeat of last year’s violence, when demonstrators tried to scale the walls of the presidential palace, blocked streets into the main government area with stacked-up shipping containers.

The mainly Shi’ite Hazaras have long faced persecution but they are politically well organised and thousands gathered in a square away from the city centre chanting “TUTAP is our right!” but they dispersed peacefully. Only about 30 percent of Afghanistan is connected to electricity and modernising the creaking power system, which is subject to frequent blackouts, has been a top priority. Under current plans, due to be implemented by 2018, the line would pass from a converter station in the northern town of Pul-e-Khumri through the mountainous Salang pass to Kabul. Demonstrators want an earlier version of the plan that would see a longer route from Pul-e-Khumri through Bamyan and Wardak, to the west of Kabul. The government says that switching the route would delay the project by as much as three years, leaving millions without secure electricity.

Brazil’s Interim Leader Rejects Minister’s Threat to Prosecutors Brazil’s interim president, Michel Temer, said yesterday that he would continue a tradition of nominating a prosecutor general who is recommended by a group of the candidate’s peers, calming fears the position’s autonomy would be compromised. Justice Minister Alexandre de Moraes, sworn in last week as part of Temer’s new government, told the Folha de S.Paulo newspaper in an interview published Monday that the prosecutor general of Brazil could be selected at will by a president. That would reverse a tradition of Brazilian presidents nominating the candidate who

received the most votes in an internal election conducted by federal prosecutors themselves. Temer, however, told Globo TV through a press officer that he would maintain the tradition of nominating the candidate chosen by the corps of prosecutors, who have driven several high-profile graft investigations in recent years. Requests for comment to the offices of Temer and Moraes were not returned. The term of Brazil’s current public prosecutor, Rodrigo Janot, does not end until September 2017. He has aggressively pursued a massive investigation into a kickback scheme at state-run

oil company Petrobras. The scandal has ensnared several top politicians from both the Workers Party of suspended President Dilma Rousseff, who is facing impeachment proceedings for breaking budgetary laws, as well as Temer’s Brazilian Democratic Movement Party. Janot recently requested that the Supreme Court allow him to investigate Rousseff for allegedly obstructing the Petrobras investigation. She denies any wrongdoing. Temer is not facing an investigation, but he has been cited by a state witness as taking part in illegal ethanol deals.

NIGERIAN ELECTRICITY REGULATORY COMMISSION NOTICE OF THE FIRST BI-ANNUAL REVIEW OF THE 2015 TARIFF ORDERS FOR THE DETERMINATION OF CHARGES AND TARIFFS FOR ELECTRICITY G E N E R AT I O N , T R A N S M I S S I O N A N D DISTRIBUTION

n exercise of the powers conferred upon it by section 76(6) of the Electric Power Sector Reform Act 2005 and all other powers enabling it in that behalf, the Nigerian Electricity Regulatory Commission adopted the Multi Year Tariff Order (MYTO) methodology for electricity pricing in Nigeria, which sets out the basis and pricing principles and procedures for affecting minor and major reviews. The MYTO provides 15-Year tariff path for the electricity industry, with minor reviews bi-annually in the light of changes in a limited number of parameters (specifically inflation, US Dollar exchange rate to Naira, natural gas price and available generation capacity) and major reviews every 5 years, when all other inputs are reviewed with stakeholders. Pursuant to Section 7 of the MYTO 2 Generation Order and Sections 17 of the MYTO 2015 Transmission and Distribution Orders, the Commission has commenced the process of bi-annual minor review of the tariff. The process involves the collection of data from National Bureau of Statistics, Central Bank of Nigeria and the System Operations Division of Transmission Company of Nigeria as well as the public. In carrying out the minor review NERC will adopt the following process: Step1. Notice in Newspaper: Publication of intention to carry out a minor review on MYTO 2015 in two national Newspapers (21 days). Step2. Review of public response to notice of intention: The Commission will collate and analyze the responses to the publication (5 days). Step3. Gather data from Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and System Operations Division (SO) of Transmission Company of Nigeria (TCN): Letters to be written to CBN and NBS to obtain the foreign exchange th and inflation rates current as of 30 April 2016. The System Operator is to inform the Commission on the average available generation capacity for the last six (6) months. Step4. Key stakeholders consultation i.e. Engagement with Senate Committee and House Committee on Power, Ministry of Power, customer groups and organised labour. Step5. Public consultation and update of the financial model: Engagement of stakeholders in a discussion on their various inputs and suggestions (13 days). Step6. Consideration by Commission of adjusted tariff: If the changes in exchange rate, rate of inflation and generation capacity results in excess of 5% increase or decrease in average tariff the Commission will consider and decide whether to increase or reduce applicable tariffs. Otherwise, no action is taken (6 days). Step7. Release notice of the reviewed wholesale contract price, TUOS charge and retail tariffs: Publish the results of the Commission's review on the Commissions website and in two (2) national Newspapers. The decisions stated in the review (to increase or decrease or keep tariffs at previous levels will take effect from 1st July 2016 (21 days). For full details of the MYTO Methodology and MYTO 2015 Tariff Orders please visit our website: www.nercng.org. The public, stakeholders and any affected parties are hereby invited to send their comments or representatives to: The Acting Chairman/CEO The Nigerian Electricity Regulatory Commission Adamawa Plaza Plot 1009, First Avenue, Off Shehu Shagari Way Central Business District P.M.B. 136, Garki Abuja, F.C.T. Or By e-mail: comments@nercng.org For further information, please contact: Chinedum Ukabiala Email: cukabiala@nercng.org Phone: 08106807154 OR Abdulkadir Shettima Email: ashettima@nercng.org Phone: 08106807140

TUESDAY MAY 17, 2016 T H I S D AY

JOB OPPORTUNITIES Position: Brand Adviser Location: Abuja Have you designed and implemented successful marketing campaigns? Do you wish to take your career to the next level by applying brand and marketing skills to achieve social change? If you do, then we have the right job for you. We seek to hire an experienced marketing communications expert to join our team as a Brand Adviser. This is a senior role that requires a highly innovative and creative person with a strong drive to design and supervise implementation of a multi-channel brand promotion strategy. Job Purpose

Minimum education and experience required Post-Graduate degree in a relevant business, project management or development field. Minimum of 5 years' experience working in a communications, marketing or knowledge management role in business or development Experience of developing and managing delivery of strategic objectives Experienced in analysis and distillation of evidence Familiarity with online communications tools including Content Management Systems and social media Commitment to gender equality and social justice] Experience of working in a multi-cultural environment is essential, in Africa/Nigeria an advantage

The Brand Advisor, will be responsible for driving the brand promotion component of the programme's For detailed Job Description and Application, follow the link: communication strategy. The role will ensure a marketing and advertising agency effectively execute a http://www.thepalladiumgroup.com/jobs large brand promotion campaign. This position will ensure high quality and timely delivery of innovative and exciting marketing products promoting gender equality. Before you start the application process, please have ready your detailed CV and a tailored cover letter, which responds directly to the job description, highlighting relevant skills and experience making you Key responsibilities most suitable person for the position. Only shortlisted applicants will be contacted for interview. 1. Management of Brand Promotions and Marketing Responsible for development of the media brief to marketing agencies outlining V4C's ask Closing date for all applications: Friday 27th May 2016 Develop contract ToRs and budget mark For more information about V4C, please visit www.v4c-nigeria.com Lead on negotiating and agreeing on budget, ensuring value for money Lead on agreeing delivery terms and processes to ensure quality of products Responsible for ensuring products are delivered to a high quality and on time Position: Communications Officer Provide weekly/monthly updates on delivery and predict where timelines may shift] Location: Abuja Responsible for supervising development and production of Creatives Lead on tracking and monitoring spend forecast against deliverables Are you creative? Do you have a passion to drive change in the status of young girls in Nigeria? Do you have what it takes to be part of an exciting and challenging social marketing campaign? If you do, then 2. Plan and execute campaign events with ambassadors and champions we have the right opportunity for you. Identify innovative ways of promoting brand through specific issue-based campaign events. Work with brand agency and civil society partners to support brand ambassadors to design and We are recruiting for a Communications Officer who will be an integral member of our communications

Support State Coordinator to liaise with partner executive directors on strategic issues.

Promote movement building for Gender Equality at State level

Actively promote synergy across all V4C partners within the state, making linkages and keeping

each informed of events Provide feedback to V4C on state specific opportunities, risks and current trends to ensure targeting

has highest impact Co - facilitate regular meetings across partners to inspire greater movement building within the state Support the State Coordinator to keep partners up to date with V4C planning and strategic thinking

around movement building and social norms marketing 3. Monitoring and reporting Provide technical support to partners in generating good quality monthly reports that draw out the realities and experiences of young women and men Ensure output monitoring and tracking tools are kept up to date by partners, and shared on time 4.

Support planning and execution of campaign events;

Support the state coordinator to participate in planning for high profile/risk events at state level to

ensure V4C principles, brand guidelines and risk analysis are followed Provide administrative support to campaign events when required Ensure strong communication between partners and V4C during campaign or event planning and

execution 5. Administrative support Logistical support to meetings/workshops including but not limited to identification of venues,

invitations and managing finances Draft meeting/workshop outlines and invitations Responsible for taking minutes and action points from meetings/workshops Ensure V4C procurement policies are strictly adhered to Manage office equipment, ensuring maintenance and repairs Support State Coordinator to develop budgets and retire finances effectively Maintain inventory of all V4C assets and collaterals in the state Act as key point of liaison with service providers; hotel and car hire

implement innovative campaigns on campus by ensuring work plans are developed and costed, implementation is executed timely and reporting is up to date Responsible for coordination between civil society partners and brand agency in supporting brand ambassadors Lead with ensuring strategic community level champions are identified and engaged to promote and publicise the brand and message Support the Communications Lead in the development of key campaign messages and themes by advising on insights generated from brand exposure analysis Responsible for appropriateness and consistency of messages across different campaign activities Ensuring timely availability of relevant campaign materials

team. The role will play a key role in supporting our various media and communications interventions to deliver high quality products that relate to our target audiences Job Purpose

Identifying and recommending innovative communications approaches according to changing

Tracking the consistency of message inputs into all communications by keeping a message Are you an excellent facilitator? Are you a person that is not only committed to gender equality but able to

The Communications Officer will support the delivery and implementation of a highly innovative communication strategy that utilizes marketing communications to promote gender equality and women The Technical Support Coordinator will represent V4C when delegated by the State Coordinator empowerment. The role will work closely with the communications lead and technical advisers to ensure strategies are effectively delivered based on trends and media habits of the core target Minimum education and experience required audiences across Northern and Southern Nigeria. Graduate degree in social sciences or equivalent Minimum of 4 years' experience in international development Key responsibilities Experience in project administration and management 1. Identify and advise on effective channels through which to promote key V4C Messages on GEWE, Excellent writing skills with proven report writing experience including: 3. Coordination and synergy of brand across programme outputs Strong interpersonal skills and networking Building and sustaining close and innovative partnerships with key media organisations across Provide technical support to all programme areas to ensure the use brand guidelines are Commitment to gender equality and social justice participating states. Experience of working in a multi-cultural environment is essential consistently implemented Maintaining a comprehensive and up-to-date database of media allies. Experience of project management - desirable Responsible for ensuring consistency of brand value and messaging across the programme Supporting periodic trainings of journalist and media producers to develop their understanding of and partners issues relating to GEWE and promote key V4C themes. For detailed Job Description and Application, follow the link: Lead in ensuring other communications products are in line with the brand guidelines Review periodic data from media research agencies and provide feedback to the V4C http://www.thepalladiumgroup.com/jobs Responsible for effective synergy between brand promotion with mass media and digital outputs of Communications Team on the reach and popularity of Media organisations to inform the selection the program of preferred media channels through which to air V4C content. Before you start the application process, please have ready your detailed CV and a tailored cover letter, 4. Strategic Partnerships 2. Plan and execute campaign events with V4C Campus and Community Brand Ambassadors which responds directly to the job description, highlighting relevant skills and experience making you Identify and ensure partnerships with relevant platforms, brands and persons to maximize (working closely with the Output 1 and 3 Technical Officers) This will include most suitable person for the position. Please be specific in your supporting letter which state you are brand visibility Develop an integrated strategy for community level brand ambassadors] applying for. Priority will be given to those based in the selected state and who speak the local language. Ensure periodic appearance in events with potential for publicity Lead the identification and training of Brand ambassadors Achieve annual targets set for partnerships that will ensure leverage Develop and manage work plans for brand ambassadors Only shortlisted applicants will be contacted for interview. Ensure brand ambassadors activities are in-line with relevant themes 5. Audience insights and Monitoring Closing date for all applications: Friday 3rd June 2016 Conduct quarterly brand exposure survey to gauge effectiveness of brand promotions this entails 3. Ensure consistent, high quality media outputs, including supporting the Communications lead in: working with research agency to agree on methodology, processes, data collection and reporting Meeting with communications partners to share strategies and plans. For more information about V4C, please visit www.v4c-nigeria.com Lead periodic audience insights research to ascertain trends Support the technical advisers to ensure media outputs are creative, innovative and in line with Analysing research data and programme reports to inform programmatic direction and best practice in media production by reviewing radio and TV scripts, concepts and creative briefs Position: Technical Support Officer - Key Influencers decision-making. from the lens of the primary target audience to ensure relevance Location: Abuja, Nigeria Ensuring V4C mass media outputs are aired in line with agreed protocols and agreements. Reviewing research and media reports to inform programmatic direction and decision-making. priority areas. Ensure tailor made promotions for northern and southern audiences based on their socio environment context

calendar that tracks message sequence and timing

Ensure that Communication outputs are responding to prevailing environment realities, including: Keeping close communication with primary audience to understand trends in the different states, and advise on relating such trends to communication interventions Minimum Education and Experience Work closely with state coordinators to identify and regularly update key influencers matrix A graduate degree in communications, marketing or social sciences Analysing research data and programme reports and advise to inform programmatic direction and 5 to 7 years' experience working in the field of either Marketing Communications, Behavior decision-making. Change Communications or Advertising Identifying and recommending innovative communications approaches according to changing Excellent understanding of the social cultural dynamics of Nigeria. priority areas across the different states? Experience selling ideas and products Understanding of young people in Northern and southern Nigeria 5. Monitoring and supervision of media outputs Good understanding of the Media and Communications Industry in Nigeria. Provide oversight to radio monitoring by ensuring listener panel reports are timely and Understanding/willingness to develop an understanding of gender dynamics and what works to documented promote gender equality Maintain tracking records of outdoor advertising frequency and duration Review media plans and schedules for all media channels and ensure time belts are relevant and For detailed Job Description and Application, follow the link: appropriate to target audience http://www.thepalladiumgroup.com/jobs Are there any other roles in terms of monitoring/tracking where you require support? Before you start the application process, please have ready your detailed CV and a tailored cover 6. Events/Partnerships and promotions letter, which responds directly to the job description, highlighting relevant skills and experience Develop and update a calendar of relevant events which can be leveraged to maximize brand and making you most suitable person for the position. Only shortlisted applicants will be contacted for message exposure interview. Participate at relevant events to promote and establish relationships with potential partners Closing date for all applications: Friday 3rd June 2016 Support the communications lead to ensure update and implementation of an advocacy/PR strategy to leverage for message and brand exposure For more information about V4C, please visit www.v4c-nigeria.com Minimum Education and Experience A graduate degree in communications, marketing or social sciences 3 to 6 years' experience working in the field of either Marketing Communications, Behavior Position: Communication Adviser - Knowledge and Learning Change Communications or Advertising Location: Abuja, Nigeria Excellent understanding of the social cultural dynamics of Nigeria, specifically northern Nigeria Are you an effective communications or marketing specialist with experience in designing and delivering Understanding of social change programming, particularly gender equality issues. strategic and innovative ways to help organisations make their mark? Knowledge of young women's life style, specifically young women in northern Nigerian Good understanding of the Media and Communications Industry in Nigeria. Are you brimming with ideas and creativity as well the confidence to know what works for a range of Understanding/willingness to develop an understanding of gender dynamics and what works to different audiences? Do you have a good track record in the successful delivery of communication or promote gender equality marketing campaigns? Then we have the job for you! English fluency (oral and written) Essential, Hausa language fluency Desired We are looking for experienced applicants with a good understanding of knowledge management for the For detailed Job Description and Application, follow the link: role of Communications Advisor - knowledge and learning; to help capture V4C's knowledge and http://www.thepalladiumgroup.com/jobs learning and to share this in a variety of ways with our donor and other partners. The preferred candidate must have experience of managing strategic communications and/or knowledge management for other Before you start the application process, please have ready your detailed CV and a tailored cover letter, organisations. Impeccable writing skills and an eye for great design are a must. Applicants from the which responds directly to the job description, highlighting relevant skills and experience making you private sector, as well as development programmes are encouraged to apply. most suitable person for the position. Only shortlisted applicants will be contacted for interview. Purpose Closing date for all applications: Friday 3rd June 2016 This role is responsible for ensuring effective and timely delivery of the Programme's strategy for For more information about V4C, please visit www.v4c-nigeria.com capturing and communicating knowledge and learning to a range of external audiences. Overall responsibilities 1. Capturing knowledge and learning: Working with V4C partners, stakeholders and beneficiaries to generate and record stories of how V4C initiatives have affected their lives and / or work Working with the V4C team to ensure that they are reflecting on their own learning and these are being captured and communicated on an ongoing basis. Working with V4C partners to capture their learning and communicate their results. 2. Storing knowledge and learning: Working with software programmers to ensure the development of a functional intranet which will serve as a repository for all V4C resources Ensuring that the information management systems that support internal knowledge generation and learning are maintained and updated regularly. Ensuring that all V4C reports and documents adhere to the V4C quality assurance standards before uploading, storage and dissemination 3. Communicating knowledge and learning: Identifying and managing innovative packaging and marketing techniques to share stories of

change to stakeholders for uptake in other settings Designing and organising events for V4C staff, partners and stakeholders to interact and share

and learn lessons from each other. Developing briefs and other knowledge products as identified. Producing progress reports and other reports as required. Regularly updating and maintaining the V4C website with content relating to the progress of the

programme.

facilitate meaningful conversations to help explore individuals own perceptions and realities and challenge their own deeply held beliefs? If yes, then V4C needs you on our team.

Position: Technical Support officer Location: Kano, Kaduna, Lagos or Enugu Nigeria

Fathers, husbands, brothers, young men, religious and traditional leaders are all crucial allies in the movement for greater gender equality. V4C is looking for a candidate with skills in active listening, e?ective questioning and facilitating group discussions. He needs to be emotionally intelligent and able to manage his own feelings and those of the group he is taking through the learning process. Applicants with extensive experience of personal transformation facilitation processes such as Stepping Stones, STAR, REFLECT or similar are encouraged to apply. Role Purpose The purpose of the V4C Technical Support Officer is to provide assistance to the Output lead in achieving the overall goal of mobilizing and expanding the pool of religious, traditional leaders; men and boys who are speaking out positively against gender discrimination. Key responsibilities; 1. Engaging Men & Boys Networks: Lead in identification and facilitation of men's networks promoting gender equality Responsible for mentoring and monitoring network effectiveness Promote and supporting activism within the networks Sharing V4C strategies and approaches to movement building and social norms marketing, as

relevant to networks Inspiring linkages across networks to maximise momentum for change

Work with Religious & Traditional Leaders:

Identify and facilitate conversations amongst key Religious and Traditional leaders Responsible for mentoring and monitoring Religious and Traditional Leaders in promoting

gender equality, particularly in Northern Nigeria Participate in activities and events led by religious and Traditional leaders, monitoring

messaging and impact Promote linkages and shared actions between religious and Traditional Leaders.

2. Monitoring and Evidencing:

Responsible for gathering individual stories of change in relation to men's networks, religious

and traditional leaders Ensure tracking of actions taken by key influencers are up to date at state level and reported on time and to quality 4.

Mentor Partners support to men's networks, religious and traditional leaders

Review monthly partners monthly plans and reports, providing regular feedback Provide mentoring support to partner organisations, building their capacity to facilitate

challenging conversations with key influencers Review and feedback on monitoring reports to ensure quality of tracking of actions and

reporting. 5.

Delegated and any other tasks or activities as determined by the Key Influencer lead

Represent the output lead in meetings and events in his absence or when requested Support monitoring of media personality's actions/activities and reporting Support with the output budget planning and review Assist with additional activities as requested by the output lead Offer innovative or creative ideas that can contribute to the outputs and the general success of

Are you passionate about gender equality? Do you want to be part of an exciting movement for young people that believes women and men should be given the opportunity to achieve their ambition in life? the V4C programme We are looking for someone that understands the trends, aspirations and challenges of young people today and can communicate effectively with them. Minimum education and experience required Degree in social sciences or equivalent years of experience in development field. The Technical Support officer will support the V4C State Coordinator, programmatically and Minimum of 5 years' experience applying transformational facilitation techniques administratively in working with young people, Civil Society Organisations and media partners. The role Minimum of 5 years in the development sector is central to building a state movement for change in gender equality. So, if you are you an excellent Experience of developing and managing delivery of strategic objectives writer, a great analytical thinker, interested in the political landscape, proactive with loads of energy and Experienced in reporting, analysis and distillation of evidence enthusiasm then we have the job for you! Commitment to gender equality and social justice Experience of working in a multi-cultural environment is essential, in Africa/Nigeria an advantage Key responsibilities For detailed Job Description and Application, follow the link: 1. Support State Coordinators to monitor V4C partner activities within the state including but not http://www.thepalladiumgroup.com/jobs limited to; Before you start the application process, please have ready your detailed CV and a tailored cover Attend safe space sessions to review quality of facilitation and tools Feedback insights and learnings from safe space participants to wider V4C communications and letter, which responds directly to the job description, highlighting relevant skills and experience making you most suitable person for the position. Only shortlisted applicants will be contacted for strategies Regularly visit the online Safe Space site to keep up to date and promote with young people in the interview. state Closing date for all applications: Friday 3rd June 2016 Participate in activities run by religious leaders, to represent V4C and monitor quality of input For more information about V4C, please visit www.v4c-nigeria.com Participate in legislative activities promoting the Violence Against Persons Prohibition Act and the Gender Equal Opportunities Act within the State

TUESDAY, MAY 17, 2016 • T H I S D AY

NEWSXTRA

Delta Community Sends SOS to FG over Avengers’ Attacks, JTF’s Harassment IYC: Redistribute oil blocks or attacks will continue

Sylvester Idowu in Warri and Emmanuel Addeh in Yenagoa The people of Kokodiagbene, an oil rich community in Gbaramatu Kingdom in Warri South West Local Government

Area of Delta State are now living in fear over the invasion of the riverside community at the weekend by soldiers from the Joint Task Force (JTF) searching for members of the militant group, Niger Delta Avengers

Obasanjo Advises FG against Reviving NNSL, Blames Its Demise on Corruption Chika Amanze-Nwachuku Former President, Chief Olusegun Obasanjo yesterday blamed the demise of the defunct Nigerian National Shipping Line (NNSL) on the lack of professionalism and high level corruption at the time. He also advised the federal government against resuscitating it. Obasanjo gave the advice in Lagos in his address as Chairman of a two-day stakeholders’ conference on the maritime industry. He said: ``NNSL had been liquidated, they tried Nigeria Unity Line, it collapsed. ``Nineteen brand new ships were specially built for Nigeria, we did not take delivery of some of them until I left office in 1979. ``When I came back in 1999, NNSL had been liquidated with all the 19 ships gone as well as the five ships in existence. ``Two of the ships were missing for almost two years and it was discovered that one military man was using them all over the world and no accountability.” The former president urged the present administration to

“think out of the box and come up with what should be done to grow the maritime industry. ``Until NIMASA became a source of where people steal money, nobody knew too much about it. “Before we tried to privatise Nigerian Ports Authority (NPA), I went to Singapore where you get your container within one hour of arriving in the port. ``If we cannot perform like Singapore, we have to do better than what we are doing now,” Obasanjo said. The Minister of Transportation, Mr Rotimi Amaechi,saidthefederal government was ready to create an enabling environment to steer the maritime industry to its rightfully position. Amaechi said government would provide safe and secure environment for both foreign and indigenous investors to reap returns on their investment without compromising the nation’s economic benefits. ``The strength of our country lies in over 170 million human capacity, formidable regional market for the numerous agriculture, mining and maritime resources which would attract global patronage.

(NDA). They have sent a save-our-soul (SOS) message to the federal government, stating that they were living in fear over the deadly activities of the militant group and intimidation as well as harassment from the military. THISDAY checks revealed that the facilities mainly attacked by the militants were located in the community as it is hosts to the Jones Creek and Otunana flow stations operated by the international oil firms, among others. The Chairman of the community, Mr. Sheriff Mulade, who spoke with journalists in Warri yesterday condemned the invasion of the community, alleging that while men were beaten up, women were harassed by the JTF’s team. According to him, the oil rich community had always been peaceful and that it had never supported militancy even in the heat of the arms struggle prior to the amnesty programme. Mulade alleged that information at their disposal suggested that the JTF was

led to the community by two masked men from Koko, an Itsekiri enclave in Warri North Local Government Area of the state, warning that the military should not try to rekindle the Warri inter-ethnic conflagration as the wound of the carnage was still fresh in their memories. The community leader, who is an environmental advocate, also spoke about the devastation of the environment by the destruction of pipelines by militants which has resulted in massive spills, oil condemning the militants for relapsing into arms struggle. He called on the militant group to have a re-think, warning that it cannot continue to use Niger Delta communities and kingdoms as a war front to the detriment of the environment, image and people of the region, adding that dialogue was the only viable means to address disagreement. “We condemn strongly the invasion of Kokodiagbene last Saturday by the JTF. Some people were beaten up, while others were harassed. This is

uncalled for. And at the end of the day, nothing incriminating was found in the community. They entered people’s houses by force, destroyed their properties and yet no single arm was recovered. We advise the military to always do its homework thoroughly before invading any community. Meanwhile, the umbrella body of all youths of Ijaw descent, the Ijaw Youth Council (IYC) worldwide yesterday in Yenagoa, Bayelsa State capital, warned that unless the ownership structure of oil blocks in the region was rearranged to ensure fairness, attacks on oil pfacilities would continue. President of the IYC, Udengs Eradiri, who spoke as part of activities to mark this year’s Isaac Boro Day, told journalists at the Ijaw House in Yenagoa that the ‘unfair’ distribution of oil wells was a major cause of the instability in the region. The Ijaw youths had earlier ordered the shutting down of shops in the state capital as a mark of honour for the late Boro. “One of the most salient issues that if not addressed

will lead to more crises is the issue of the oil blocks. President Muhammadu Buhari was a one-time Petroleum Minister and Head of State in this country. ‘’Let’s do an assessment of that time. It was during his time that they criminally shared our oil blocks. “Oil blocks were shared to one group. Look at it, either the person (owner of oil block) was a former military president or relative of the military president or his in-law.” The Niger Delta Avengers (NDA), the new face of militancy in the region had last week Thursday listed some oil blocks allegedly owned by former Vice President, Alhaji Atiku Abubakar; Minister of Defence, General Theophilus Danjuma; ex-Minister of Petroleum, Alhaji Riwalnu Lukman, among others. The new militant group in the region had among others, issued them a two-week ultimatum to shut down operations at the oil blocks and evacuate the workers from the locations or have them blown up.

FG to Appoint Transition Adviser for Establishment of National Carrier The Minister of State, Aviation, Mr Hadi Sirika, has said that the federal government will soon appoint the Transition Adviser that will develop the process for the establishment of a new national carrier. Sirika, while addressing Aviation Stakeholders Forum in Abuja yesterday, said the government would establish a national carrier that would be private sector driven. He said the government would also establish Maintenance, Repair and Overhaul (MRO) facility in the country, adding that the national carrier would serve as the base for such MRO. The minister, according to the News Agency of Nigeria (NAN), added that the government would create an enabling environment for the setting up of a world class MRO facility that would attract clientele from all over the world, especially Africa. According to him, the MRO will further be encouraged to start the manufacturing of airplane spare parts with intent to go into manufacturing for long term. He said Nigeria had the capacity to become a hub in the African

region, pointing out that if Ethiopia and Brazil could manufacture airplane parts, Nigeria could do it effectively. Sirika said the government was also determined to address the challenges of the aviation sector through the establishment of Aerospace University that would specifically produce the needed workforce for better efficiency. He also said that the government would also establish an aviation leasing company to solve the problem of access to capital and high cost of funds. According to him, the company will also address the high debt profile of some airlines, inadequate number of aircraft and high interest rate. “Aviation being international, a lot of transactions are done in foreign currency, aircraft acquisition, purchasing of spare parts, maintenance and training are all done in foreign currency. “Domestic carriers sell their tickets in naira but buy their parts in foreign currencyandthatiswhyweareworking towards making waiver on spare part importation permanent.

JUSTICE WITHOUT FEAR OR FAVOUR

Sokoto State Governor, Aminu Waziri Tambuwal (right), congratulating the newly-appointed state Acting Chief Judge, Justice Bello Abass, after his swearing-in in Sokoto...yesterday

Umar Backs FG’s Petrol Deregulation Policy Ugo Aliogo

The Chairman of the Movement for Unity and Progress (MUP), Colonel Abubakar Dangiwa Umar, has hailed the decision by the federal government to deregulate the petrol arm of the down stream oil and gas sector. He, however, remarked that government would inevitably have to go the whole hug by embarking on full deregulation with no form of price fixing whatsoever. “We believe total deregulation, meaning without any price fixing, may well be inevitable, but we fully support this needful policy.”

Umar noted that the Nigerian National Petroleum Corporation (NNPC) might be ill-equipped to drive the success of the programme due an abject lack of capacity to meet the astronomical rise in demand for fuel products occasioned by “serial failure of past administrations to expand and maintain the decaying downstream oil infrastructure. “The remarkable tendency of Nigerian public officials to mismanage public enterprises which creates all sorts of system malfunctions and failures. These could be seen in the dismal failure to maintain the refineries, oil pipelines, storage facilities,

distribution system and subsidy regimes. “The humongous amount of public funds that have been deployed in the sustenance of this wasteful system with dubious benefits to the general public, which leaves government with no alternative than to direct its meagre resources in the provision of other more beneficial and essential social services like education and health.” He stated further that offering subsidy on petrol cannot be the only assistance government can render citizens. Adding “Our stand does not in any way seek to deny

the right of others to disagree. “We actually understand and respect the rights of those equally well meaning Nigerians who have already made public their dissension. We however expect them to justify their disagreement by providing better options supported by facts and figures, failing which we remain resolute in supporting governments’ decision. “We also have a duty to appeal to them not to derail a beneficial and well intentioned policy out of a desire to work cheap popularity, while creating more economic hardship for the very people they need to protect.”

TUESDAY, MAY 17, 2016 • T H I S D AY

NEWSXTRA

FG to Begin Payment of Debts Owed Road Contractors in Days Companies to go back to site, reabsorb thousands of sacked workers

Chineme Okafor in Abuja In a matter of days, the federal government will begin the payment of outstanding debts owed road contractors for road projects they were engaged to do but have not been paid for, the Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said. Fashola disclosed this yesterday in Abuja that his ministries would begin to get some of the funds allocated to them in the 2016 budget within days, and will be able to pay the debts gradually. He also explained that when the debts are paid, workers who were laid off by the construction companies would be called to work as soon as possible. The minister stated this when he met with about 20 of the construction firms in his office. Some of the firms at the meeting were Julius Berger Nigeria Plc, Arab Contractors, Dantata and Sawoe, Reynolds

Construction, Stallini, RCC, Gitto and Setraco among others. “In a matter of days, hopefully, we will get some funds to disburse to you. What we hope to achieve is to hear what the problems are from you, and when you expect to finish the work,” said Fashola. He explained that in disbursing the funds to the contractors, the government has also told them to go back to their respective sites with thousands workers to complete their projects. A report in November 2015 by the House of Representatives Committee on Works had indicated that the government owes road contractors as much as N300 billion. Fashola, however, said: “We are where we are; we are starting at a time the rains are about to start. One of the things I hope to achieve in this meeting is to meet as many of you as we can. I am new here, and part of building a new team is what informed this meeting.

“Getting to know all of you, the constraints and challenges you meet at your sites are also part of the reasons for this meeting. I have been to some roads especially in the North Central and I will continue to do that across all your sites. “I need you to also provide for us information about the number of people you expect to employ in your various sites when you are paid because what we are likely to

The Minister of State for Aviation Mr. Hadi Sirika, yesterday threatened to shut down flight operations into and out of the Nnamdi Azikiwe International Airport (NAIA), Abuja, due to dilapidated infrastructure that could compromise safety. He said the several potholes on the runway almost made him to close the airport, urging that the airport would be closed down until the necessary things are put in place. He did not however say when the closure would be carried out. The minister who made the disclosure in a meeting with stakeholders in the industry in Abuja, showed clips of the dilapidated infrastructure at the airport, said the focus of his administration is to ensure total safety and security. On the concessioning of the airports, he said arrangement had been concluded to concession the Lagos, Kano, Abuja and Port Harcourt in the first instance, adding that government does

not have the wherewithdal to continue to run the airports. He said: “I have had a tough time explaining and debating at the Federal Executive Council (FEC) meeting and on the streets to make a case for aviation. I have discovered that we simply do not have the money. He said government will bring it to an attractive level that will be self-sustaining for the private investors that are buying into it, adding that it is a good market for investors and therefore government should concession them to make money out of them. “We need to get those investors that know that Nigeria is about 170 million and that they can create a hub of the country and they can put their in it.” he said. Sirika said following government’s approval, a transaction adviser will soon be set up for the establishment of a national carrier, adding that it will also be private sector driven. He said: “This will be private sector driven and we shall establish this to take advantage of the Bilateral Air and Service

Alex EnumahinAbuja The federal government yesterday reduced the number of charges filed against a former Governor of Abia State, Chief Orji Uzor Kalu, his company, Slok Nigeria Limited, and business associate, Jones Udeogo, from 107 to 32 counts. They were alleged to have diverted about N5.6billion belonging to the state.

Agreement that the country has. “We have to engage the transaction adviser very soon and government will give us approval to appoint transaction advisers that will drive this because we have made attempt before and it failed about this time it will not fail as we need to get it right because the market and the political will is there. The minister admitted that local investors would now be encouraged to operate Maintenance Repair and Overhaul (MRO) so as to prevent capital flight when the national carrier commences operations. According to him there will a total overhaul of all the agencies in the ministry, adding that the Federal Airport Authority of Nigeria (FAAN), for efficiency because of its over blown structure. On Aviation Security AVESEC, he said: “We want to recreate and put that segment with Nigerian transportation security and administration and has to take a formal shape as done abroad, they will be made to carry armed with sniffer dogs and well trained.”

Cash Crunch Cripples Scheduled Take-off of NYSC Orientation Omololu Ogunmade in Abuja The Director-General of National Youth Service Corps (NYSC), Brigadier-General Sule Kazaure, yesterday disclosed that inadequate fund might cripple the mobilisation of batch ‘A’ stream 2 of corps members scheduled to proceed on orientation on Friday. Kazaure who made the disclosure during an interactive session with the Senate Committee on Sports and Youth Development in the National Assembly, said the agency had written a series of letters to the Minister of Finance and President Muhammadu Buhari over the matter without obtaining any favourable response.

He listed other problems facing the scheme apart from funding to include security of corps members and subventions, disclosing that the budget of agency was slashed by 40 per cent. He expressed displeasure that despite a number of letters sent to the minister for the release of funds for the take-off of the exercise, no interest had been shown. He said the implication of the indifference would be the suspension of the next orientation programme for prospective corps members until fund is available. Kazaure’s submission that there was no response to various NYSC’s letters of request for

value chain, so we hope that when we disburse this money, it will go to where it has to go.” The minister also asked the contractors to show more commitment to their jobs, adding that he will not take any act of misbehaviour with their job schedules. “I also appeal that you show compassion to your workers, and build with the standard that you will build for your country

in terms of quality road. If it is not good for your country, it cannot be good for us here. “I will make the point about safety again because some of the things I have seen at some work sites are below the standards that are allowed in your countries. Please just assume that you are doing this in your countries so that we can be friends because I am not going to accept those things,” he added.

... Reduces Charges against Kalu to 32

Minister Threatens to Shut Abuja Airport Dele Ogbodo in Abuja

achieve here as we go on this year is to complete as many roads as possible as our money can allow. “Where you cannot complete, I will like you to make some level of progress so that between now and December, Nigerians would at least feel the impact in their movement. We have very simple objectives which is to return the economy to growth, to create jobs especially with construction and its ancillary

money was also corroborated by NYSC’s Director of Finance, Mr. Adeleke Ademola. Kazaure said: “We are presently at a loss in NYSC now as there is no money for us to mobilise thousands of prospective corps members in the Batch A stream 2 to camp this Friday as earlier planned despite efforts made by us to get things done in that direction several weeks ago. “The problem staring us in the face arose from the N13billion shortfall we had in the 2016 budget estimates upon which the agency made strong request for its provision during budget defence about three months ago.”

This is not the first time charges against the governors have been amended. At various times, EFCC amended the charges to 112 and 96 counts. The offences bordered on stealing, corruption and money laundering. The Economic and Financial Crimes Commission (EFCC) had in 2007 initially filed 107 counts against Kalu, Slok and 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 At yesterday’s proceedings before Justice Anwuli Chikere of the Federal High Court in Abuja,

the defendants’ re-arraigment was stalled following a pending appeal involving the 3rd defendant, Slok Nigeria Limited at the Supreme Court. The 3rd defendant’s counsel, Chief Solomon Akuma (SAN), yesterday drew the court’s attention to the subsisting appeal at the apex court and urged the court to adjourn the suit to allow parties sort out the appeal. However, the prosecuting counsel, Mr. Oluwaleke Atolagbe, citing section 306 of the Administration of Criminal Justice Act (ACJA) 2015, which he said prohibited stay of proceedings in a criminal matter at the trial court.

Atolagbe opposed the application for adjournment sought by the 3rd defendant. He argued further that the appeal in question was similar to the two previous appeals involving the Kalu and Udoego, which the Supreme Court had decided on March 18, 2016, dismissing the defendants’ objection to the charges preferred against them and directing them to submit themselves for trial. Counsel for Kalu, Chief Awa Kalu (SAN), and the lawyer representing Udeogo did not oppose the request for adjournment.

T H I S D AY • TUESDAY, MAY 17, 2015

FUEL PRICE HIKE …

Senator: Oil Subsidy Not Beneficial to Masses but Drain on Economy Our Correspondents The Senator representing Katsina South senatorial district, Abu Ibrahim, yesterday urged Nigerians to endure the current hike in the pump price of petrol for a while, arguing that oil subsidy had only been beneficial to the rich and not to the masses. Ibrahim told journalists in National Assembly that despite the payment of over N1 billion as oil subsidy every month, fuel was only sold at official price in Abuja, Port Harcourt and Lagos. According to him, oil subsidy had been a drain on the nation’s treasury, noting that most available fuel was diverted by oil marketers while ordinary citizens groaned under the pain of fuel scarcity. Ibrahim further said President Muhammadu Buhari could be trusted with the savings from oil subsidy removal because of his pedigree as a honest Nigerian whom he said would deploy the money to build infrastructure. He said: “Oil subsidy has not been beneficial to the masses. Instead, over N1 billion being paid as subsidy every month had been stolen and mismanaged. This government met an empty treasury. “Second, subsidy has become a drain on the economy of this country and inspite of of all this, subsidy did not solve the problem. The price of fuel was still high and there was scarcity. I know that in many places, except in Lagos, Abuja and Port Harcourt, there was nowhere you could buy fuel at the pump price of N86.5. Yet most of the fuel that was available was diverted and ordinary Nigerians were denied its availability. “Third, many people objected to the removal of oil subsidy simply because past governments were dubious in the management of subsidy but now, we have a government that cannot tamper with Nigerian money. It will use the subsidy money to develop other aspects of economy and social life. “We have seen clergy men, religious leaders, traditional rulers who said it is the right thing to do and not to continue to postpone the evil days again. Certainly, Buhari will use money to develop infrastructure and develop and improve lives of the citizens,” he said.

Civil Society Groups in Edo Protest Fuel Price Hike Civil society and non-governmental organisations in Edo State made up of Edo Civil Society Organisations, Coalition to Save Nigeria (CSN) which comprises several other groups, yesterday protested the recent increase in the pump price of petrol. While the CSN addressed journalists at the Edo State secretariat of the Nigeria Union of Journalists (NUJ), Edo Civil Society Organisations staged a peaceful march around the Kings’ Square, blaming organised labour for the current crisis. The leader ECSO, Omobude Agho, said it was because labour compromised in 2012 that the federal government again increased the price of petrol in 2016. He said civil society would support organised labour only on insistence that pump price be returned to N86.50k. According to him: “We shall sustain the struggle for N86.50 per litre of petrol as against the N145, until what Nigerians want is achieved. The NLC must be transparent and take decision in the interest of Nigerians else the people of Nigeria will mobilise against the organised labour, if they compromise with the federal government like in the case of 2012.” The CSN, led by Dr. Philip Ugbodaga in a statement signed in Benin City, said the federal government is “fantastically” wrong in taking the decision, reaffirming their rejection of the increase and endorsing NLC/ TUC planned mass/strike action. “We love President Muhammadu Buhari, but reject his anti-people and Pro-IMF policies. This government has capitulated to IMF conditionalities and surreptitiously devalued the Nigerian Naira through the back door as the black market has become the government preferred. Official transaction channel while the CBN is now the alternative or parallel market. “While the government and its ardent apologists call on us to make sacrifices for a better tomorrow, there is hardly any attempt to democratise the sacrifice that Nigeria so urgently need. While the poor still live

GEARING UP FOR A FIGHT

L-R: President, NUTGTWN, Comrade John Adaji; General Secretary, NUTGTWN and Chairperson, Industrial sub-Sahara Africa, Mr. Issa Aremu; and Chairman, Nigeria Labour Congress (NLC), Kaduna State, Comrade Adamu Ango, at a press conference on the recent fuel price hike in Kaduna... yesterday IDRIS EGAJI. in penury, our leaders at every level of government continue their ostentatious living.” CSN stated. Coalition To Save Nigeria (CSN) was in the forefront of the anti-subsidy removal protest in 2012, and has vowed to again mobilize its members to resist what it termed as “unpopular and punitive action of government. The CSN is made up of Foundation for Social Justice and Social Change, Academic Staff Union of Universities (ASUU), UNIBEN, Edo Youth Congress, Registered Voters Association of Nigeria (REVAN) and Conference for Non-Governmental Organisations (CONGOS). Others include, Talakawa Parliament, Nigeria People’s Coalition (NPC), Edo Youth for Good Governance, Foundation of Africa Youths (FAY), Freelancers, Orhionmwon Youth Congress, Kukuruku Youth Renaissance Network, Youth Empowerment Advocacy and Crime Intelligence Network.

Traders Tell Members Not to Join NLC Strike The National Harmonised Traders Union has called its members across the country to open their trading activities by distancing themselves from the proposed strike. Speaking with journalists in Kano yesterday, the National Chairman of the union, Alhaji Abdulaziz Bature, stated that they had taken a unanimous position not to join the purported NLC planned strike scheduled for tomorrow. He said their reasons for opting out of planned labour strike actions was borne out of the fact that the NLC had failed to provide sufficient reasons for their action. The chairman revealed: “Going into industrial action at this material time will never be the answer to our predicaments. “NLC is always playing politics with the interest of the common man because most of their agitation is not for the collective interest of the people.”

Lagos Donates 50 Buses to Cushion Effect of Fuel Price Hike The Lagos State Government yesterday donated 50 new high-capacity bus rapid transit (BRT) vehicles to Primero Transport Services Limited to cushion effect of new pump price of petrol on its residents. The firm’s Managing Director, Mr. Fola Tinubu, disclosed this at a news conference he addressed at its head office, Ikorodu alongside other top officials, ruling out likelihood of increasing fares due to rising inflation rate. At the conference, Tinubu said the state government under the administration of Governor Akinwunmi Ambode had donated 50 new BRT buses to Primero Transport Services Limited at the instance of prevailing economic challenges in the country. He added that the decision of the state government would substantially reduce the effect

of hike in fuel price on Lagos residents, hoping that more people in Ikorodu and its environs would patronise BRT. The managing director explained that with what the Ambode administration had done, more commuters “will leave their cars at home and use BRT,” which he said, would go a long way in reducing traffic congestions to the road users and waiting time at various terminals. He explained that the multiplier effect of this kind of intervention provided by the present administration “will lead to creation of more job opportunities for drivers, fleet officers, inspectors, mechanics, ticketers for smooth running and operations of the business.” However, the managing director ruled out the likelihood of increasing fares along the Ikorodu-CMS corridor, noting that there was no reason to increase fares with what the buses the governor had donated. Tinubu also disclosed the plan of the company to expand to other parts of the state, though Lagos Metropolitan Area Transport Authority (LAMATA) and the state government had not granted approval. He reeled out the achievement of the company since its takeoff in November, noting that more than 1,500 persons “have been employed. With the 50 new buses from the state government, the company would employ more people.” He added that the company provided services “to 300,000 commuters daily, though the target was 400,000. The firm has not been able to attain the feat due to reconstruction of the BRT lanes from Ojota to CMS. Currently, the managing director put the travel time on the corridor at 45 minutes, noting that plan was underway “to ensure that no commuter waits at bus stations more 15 minutes. But presently no commuter waits at bus stations more than 30 minutes.”

Gbonigi Urges Labour to Shelve Strike

As the organised labour is warming up to confront the federal government over the new pump price of petrol, an elder statesman and Chairman of the Yoruba Unity Forum (YUF), Bishop Bolanle Gbonigi, at the weekend appealed to the organised labour in the county to shelve their planned industrial action. Gbonigi, the retired Bishop of the Akure Diocese of the Anglican Communion, urged labour to be patient with the current administration noting that the recent removal of oil subsidy was a right step taken by the government to rescue the country from its current economic challenges. The clergyman spoke in Akure, the Ondo State capital, while speaking at a public presentation of two books written by a journalist and staff of the Federal Radio Corporation of Nigeria, Mr. Oye Agunbibiade.

The octogenarian the urged Nigerians to support the President Muhammadu Buhari administration over the removal of fuel subsidy. “The oil subsidy removal was long overdue and Nigerians should commend the present administration for having a courage to take the bold step,” he said. However, the cleric advised the federal government to come out clean over the policy and explain to Nigerians whether the deregulation policy was total or partial and all other issues relating to the policy. He said by engaging in thorough sensitisation of the masses on the issue, the government would be able to sincerely educate Nigerians why the subsidy should be removed at this time. While calling on the labour to embrace dialogue with the government, the octogenarian clergyman said oil subsidy removal would lead to better reforms in the oil and gas sector. The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) have scheduled to commence a nationwide strike to protest the increment in the price of petrol.

In Brief

Rivers Governor, Wike at the State House

President Muhammadu Buhari yesterday met briefly with Rivers State Governor, Nyesom Wike, at the Presidential Villa, at Abuja. The governor arrived the State House around 2 p.m. and spent about 20 minutes at the president’s office area. At the end of the meeting, he declined to speak with State House correspondents as he quickly walked past journalists who sought to know the purpose of his visit to the Villa.

Former NLC President, Pascal Bafyau is Dead The former President of the Nigeria Labour Congress (NLC), Mr. Pascal Bafyau, is dead. He died last Tuesday night in Abuja at the age of 65 years. He hailed from Adamawa State. Mr. Tayo Haastrup, the Public Relations Officer of the National Hospital, Abuja, confirmed to the News Agency of Nigeria (NAN) that Bafyau’s remains were deposited at the hospital morgue in the early hours of Wednesday. Bafyau, after heading the NLC, which he left in 1994, went into politics and became a member of the defunct Social Democratic Party (SDP). Until his death, Bafyau was a member of the Peoples Democratic Party (PDP).

Night Cattle Grazing Banned in Enugu

In a bid to avert bloody clashes between herdsmen and local farmers, the Enugu State Government has banned grazing and rearing of cattle at night. Also banned are the carrying of firearms or any form of weapons by the herdsmen as well as the movement of cattle from one location to another at night in the state. The state Governor, Ifeanyi Ugwuanyi, announced the ban during a meeting he held with leaders of Fulani/Shuwa Arab herdsmen in the state. Another far reaching decision taken during the crucial meeting yesterday was the setting up of a peace committee made up of representatives of the various interest groups from the Fulani/Shuwa Arab community in the state, government representatives and security agencies. During the meeting convened by the governor which was also attended by leaders of some communities affected by the menace of the herdsmen in the state, it was also decided that compensation would be paid by herdsmen whose cattle destroy farm crops while the communities will pay for any cattle killed by their members. The governor had convened the meeting in furtherance of ongoing efforts of the state government to find a lasting solution to the lingering clashes between Fulani herdsmen and their host communities, especially in the wake of the recent Nimbo killings.

T H I S D AY • TUESDAY,MAY 17, 2016

BUSINESS/MONEYGUIDE

Zenith Bank, French Firm Sign $100m Pact to Boost Power Obinna Chima Zenith Bank Plc and the French Development Agency (Agence Francaise de Development (AFD), operator of France’s bilateral development finance mechanism have signed a $100 million power sector credit facility to boost new investments in the capital expenditures of distribution companies (DISCOS). The signing of the facility which took place in the inner chambers of the Aso Rock Villa in the shadow of the security summit was witnessed by the visiting French President Francois Hollande and President, General Muhammadu Buhari. The facility will be a reprieve for the electricity distribution companies (DISCOs) that are currently weighed down by debt

burden with historic debtors made of mainly government establishments, including the military and security agencies alone accounting for over N93 billion. Leading the team of the bank’s top executives to the bilateral session where the pact was sealed was Chairman of Zenith Bank Plc, Mr. Jim Ovia, while Mrs. Laurence Breton-Moyet, Chief Operating Officer and Member of the Executive Board from the AFD Headquarters in Paris, led the agency’s team. Under the loan arrangement, a maximum of $50 million can be on-lent to any single borrower at single digit interest rate for a tenor of between seven and 12 years, with a moratorium of 2 – 3 and half years, depending on the project’s cash flow. The facility, according to a statement is aimed at reinforcing,

rehabilitating and modernizing the existing distribution networks with the sole target of stabilising the grid. The loan arrangement also provides for technical assistance and other advisory services, both to the benefiting DISCO and the partnership bank. Zenith Bank Plc has remained, not only a leading financier of investments aimed at developing the power/energy sector in the country, but also a key player in many other sectors of the economy including; oil and gas, agriculture, manufacturing, communication, transportation, real estate and construction, among others. In the financial year ended December 31, 2015, Zenith Bank reported a profit after tax (PAT) of N105.66bn - the highest in the Nigeria banking industry for the year; with total assets at over N4trn.

Minister Commends Etisalat’s Commitment to SMEs Nume Ekeghe Minister of State for Industry, Trade and Investment, Hajiya Aisha Abubakar has commended Etisalat Nigeria for its commitment to the growth and development of small and medium scale enterprises (SMEs) in Nigeria. The Minister said this recently at the inauguration of the 2016 edition of Market Access Forum, organised by the Enterprise Development Centre (EDC) of the Pan Atlantic University in partnership with Etisalat Nigeria in Abuja. Abubakar described the forum as a platform that had inspired many aspiring entrepreneurs, and provided a credible platform for learning and collaboration amongst MSMEs in Nigeria. She added: the time to support SMEs in Nigeria could not have been more auspicious than now that the federal government is consciously making efforts to

diversify from an oil economy. Certainly, this is a good omen for small and growing businesses, which constitute over 95 per cent of the Nigerian economy.” Also, the Director, Enterprise Segment, Etisalat Nigeria, Eric Uwaoma, who was represented by Bidemi Ladipo, reiterated Etisalat’s commitment to the growth of SMEs in Nigeria by continuously offering start-ups opportunities that can make them increase their capacity. “We have supported Market Access Forum for about four years, and we will continue to offer our support. Etisalat supports initiatives like Market Access because we think it is important to show small and growing businesses how they can attain healthy growth the same way Etisalat attained its record growth. That is why we have supported initiatives like Market Access where entrepreneurs can network, and learn the secrets to run their businesses efficiently,” he said.

According to him, many entrepreneurs in Nigeria do not understand how to run a business properly. “As part of our intervention to help solve the challenges, Etisalat has been involved in different initiatives; one of them is Market Access which we have taken to different parts of the country. “The second initiative is the EasyBusiness Millionaires Hunt, an initiative that gives SMEs, who subscribe to Etisalat EasyBusiness package the opportunity to apply for a business grant. Through this initiative Etisalat has trained 100 entrepreneurs and given businesses over N40 million in grants.” The Director, Enterprise Development Centre, Pan Atlantic University, Mr. Peter Bamkole said the fundamental goal of Market Access Forum was to facilitate market access for Small and Growing Business (SGBs) by keying them into the value chain of large organisations.

Ovia

MARKET INDICATORS MONEY AND CREDIT STATISTICS 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

the scheme was born out of the bank’s efforts to develop innovative services to help its customers create, preserve and transfer wealth. “The essence is to enhance the ability of families to save by reducing money spent on family related transactions. In addition, ‘BankMyFamily’ will also help facilitate savings culture and encourage younger ones to imbibe banking habits,” he was quoted to have said in a statement.Families enrolled on the ‘BankMyFamily’ scheme enjoy a host of benefits includ-

ing: easy transfer of funds within the family at no cost with the bank’s e-products; access to the bank’s bouquet of retail loans to fund lifestyle needs; attractive interest rate; opportunity for target savings towards a child’s school fees or needs and access to participate in the bank’s seasonal promos. The benefits also include: access to financial literacy and parenting tips; customized notepads for kiddies and teens; access to education loans; access to financial literacy tips for children.

ETI Appoints Manekia Group Executive The Ecobank Transnational Incorporated (ETI) yesterday announced the appointment of Mr. Amin Manekia as Group Executive of its Corporate and Investment Banking business. Manekia steps into the position vacated in late 2015 by Mr. Charles Kié, who moved to become Managing Director of Ecobank Nigeria. The appointment takes effect

from 4 July 2016. He will report directly to the Ecobank Group CEO and be responsible for the following business lines: Corporate Banking Group; Transaction Service Group; Investment Banking Group; Fixed Income, Currencies & Commodities (Treasury); and Securities, Wealth and Asset Management. A national of Pakistan, Manekia

joined Ecobank with 28 years of international corporate banking experience. It includes an excellent grounding in transaction banking, commercial banking, credit risk and general management. His career spans various business and regional leadership roles across different parts of the world, notably the United States, Eastern Europe, Africa and the Middle East.

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

Heritage Bank Introduces ‘BankMyFamily’ Heritage Bank Limited has moved to boost disposable income for families by introducing a banking scheme called ‘BankMyFamily’. Designed to reduce the cost and risks associated with running family expenses, while enhancing efficiency and savings, ‘BankMyFamily’, is a scheme that offers families a bouquet of Heritage Bank products, comprising HB Plus, HB SaveSmart and HB Bud. The Managing Director/ Chief Executive, Heritage Bank, Mr. Ifie Sekibo said that

(MILLION NAIRA)

FEBRUARY 2016

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

120.47

Stanbic IBTC Ethical

1.10

1.13

Stanbic IBTC GIF

142.90

143.38

UBA Balanced Fund

1.2563

1.2493

UBA Bond Fund

1.3443

UBA Equity Fund

0.8205

0.8074

UBA Money Market Fund

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 MONDAY, 15 MAY 2016 -The price of OPEC basket of thirteen crudes stood at $43.31 a barrel on Thursday, compared with $41.40 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

T H I S D AY • TUESDAY, may 17, 2016

Nigeria’s top 50 stocks based on market fundamentals

16-May-16 13-May-16

% Change

Capitalisation

EPS

P/E

P/S

Div. Yld

Price/ Book Value

01 Dangote Cement Plc

167.10

165.00

1.27%

2,847,468,787,375.50

10.64

15.51

5.72

4.85%

4.36

02 Nigerian Brew. Plc.

123.00

117.95

4.28%

975,279,409,224.00

5.37

21.97

3.38

3.05%

5.49

03 Nestle Nigeria Plc.

722.00

0.00%

572,297,813,944.00

29.95

24.11

3.78

4.02%

15.06

04 Guaranty Trust Bank Plc.

19.20

18.73

2.51%

565,078,641,100.80

3.38

5.54

2.40

9.45%

1.33

05 Zenith Bank Plc

15.03

14.70

2.24%

471,889,301,603.58

3.37

4.37

1.07

12.24%

0.78

06 Lafarge Africa Plc.

74.00

71.20

3.93%

337,062,733,940.00

5.93

12.01

1.21

4.21%

1.84

225.00

0.00%

293,058,248,175.00

4.45

50.58

2.35

1.53%

6.33

14.56

15.06

-3.32%

267,169,465,690.40

1.39

10.81

0.54

4.12%

0.74

350.00

0.00%

193,658,609,550.00

23.48

14.90

1.71

4.55%

0.69

99.75

95.00

5.00%

150,212,346,753.00

0.78

122.06

2.87

0.00%

3.20

11 United Bank for Africa Plc

3.97

3.63

9.37%

144,029,719,498.34

1.64

2.21

0.42

16.53%

0.40

12 Stanbic IBTC Holdings Plc

14.24

14.48

-1.66%

142,400,000,000.00

2.04

7.11

1.23

0.69%

1.29

3.73

3.70

0.81%

133,889,442,114.16

0.42

8.77

0.26

4.05%

0.23

34.35

36.00

-4.58%

129,956,226,187.50

0.32

114.23

2.30

0.14%

17.02

5.21

4.83

7.87%

119,220,007,510.68

2.28

2.12

0.41

11.39%

0.38

16 7-Up Bottling Comp. Plc.

145.00

0.00%

92,885,602,635.00

11.12

13.04

1.19

1.52%

3.87

17 P Z Cussons Nigeria Plc.

22.95

23.00

-0.22%

91,122,448,182.75

1.10

20.96

1.26

5.65%

2.17

18 Dangote Sugar Refinery Plc

6.00

6.05

-0.83%

72,000,000,000.00

0.96

6.29

0.72

8.26%

1.25

19 Oando Plc

5.82

5.29

10.02%

70,041,481,963.08

0.50

10.58

0.11

14.18%

0.40

20.00

0.00%

65,884,985,600.00

0.64

31.29

3.56

1.25%

5.47

175.00

0.00%

63,104,170,850.00

13.51

12.95

0.98

4.11%

4.11

23.00

23.50

-2.13%

60,357,455,301.00

1.84

12.76

0.19

8.51%

0.60

175.00

170.00

2.94%

59,416,321,475.00

11.92

14.26

0.28

8.24%

3.55

43.50

43.00

1.16%

57,420,000,000.00

1.85

23.26

0.42

3.49%

2.34

25 Transnational Corporation Of Nigeria Plc

1.28

1.29

-0.78%

49,562,876,704.00

0.05

24.59

1.23

0.00%

0.57

26 Sterling Bank Plc.

1.67

1.75

-4.57%

48,079,998,270.42

0.36

4.90

0.46

5.14%

0.53

07 Forte Oil Plc. 08 Ecobank Transnational Incorporated 09 Seplat Petroleum Dev. Co. Ltd. 10 Guinness Nig Plc

13 FBN Holdings Plc 14 Unilever Nigeria Plc. 15 Access Bank Plc.

20 International Breweries Plc. 21 Mobil Oil Nig Plc. 22 Flour Mills Nig. Plc. 23 Total Nigeria Plc. 24 Julius Berger Nig. Plc.

27 Diamond Bank Plc

2.01

2.02

-0.50%

46,552,381,825.68

0.24

8.27

0.22

0.00%

0.22

19.55

0.00%

37,552,898,765.85

2.70

7.24

0.51

5.12%

0.51

1.29

0.00%

37,377,488,159.67

0.48

2.69

0.25

12.40%

0.20

30 Presco Plc

35.02

0.00%

35,020,000,000.00

3.28

10.68

3.08

0.29%

1.56

31 Cadbury Nigeria Plc.

17.24

0.00%

32,380,203,169.60

3.21

5.38

0.96

7.54%

3.13

0.75

0.76

-1.32%

29,616,279,909.75

0.06

12.60

0.64

0.00%

0.64

33 Cap Plc

40.00

38.50

3.90%

28,000,000,000.00

2.49

15.49

3.82

2.99%

17.73

34 Okomu Oil Palm Plc.

29.11

0.00%

27,768,320,100.00

2.76

10.55

2.85

0.34%

2.30

35 Glaxo Smithkline Consumer Nig. Plc.

22.42

0.00%

26,811,550,860.96

0.81

27.78

0.88

1.34%

2.03

36 FCMB Group Plc.

1.28

1.29

-0.78%

25,347,469,765.12

0.24

5.37

0.17

7.75%

0.16

37 Mansard Insurance Plc

2.29

2.19

4.57%

24,045,000,000.00

0.16

13.83

1.39

2.28%

1.32

38 National Salt Co. Nig. Plc

8.40

8.10

3.70%

22,255,282,375.20

0.79

10.19

1.33

6.79%

3.03

39 Custodian And Allied Insurance Plc

3.70

0.00%

21,762,897,521.50

0.71

5.18

0.73

3.78%

0.83

40 Skye Bank Plc

1.20

0.00%

16,656,361,692.00

0.85

1.40

0.12

25.00%

0.12

41 Honeywell Flour Mill Plc

1.66

1.70

-2.35%

13,164,128,112.28

0.14

12.03

0.27

9.41%

0.63

42 Continental Reinsurance Plc

1.09

1.06

2.83%

11,306,291,300.08

0.21

5.13

0.56

11.32%

0.71

43 Cement Co. Of North.Nig. Plc

7.86

7.39

6.36%

9,877,487,240.76

0.96

7.73

0.71

1.35%

0.92

44 Unity Bank Plc

0.80

0.77

3.90%

9,351,470,353.60

0.54

1.42

0.14

0.00%

0.10

45 UACN Property Development Co. Limited

4.00

4.20

-4.76%

6,874,999,980.00

1.81

2.32

0.64

16.67%

0.22

46 Nigerian Aviation Handling Company Plc

4.15

4.13

0.48%

6,740,507,812.50

0.33

12.47

0.79

4.84%

1.10

47 Wapic Insurance Plc

0.50

0.00%

6,691,369,124.00

0.10

5.16

0.94

6.00%

0.45

48 Resort Savings & Loans Plc

0.50

0.00%

5,664,866,202.00

4.68

0.11

0.02

0.00%

1.89

49 AIICO Insurance Plc.

0.81

0.85

-4.71%

5,613,465,628.80

0.28

3.08

0.18

5.88%

0.61

50 Fidson Healthcare Plc

2.25

0.00%

3,375,000,000.00

0.50

4.53

0.41

2.22%

0.53

28 U A C N Plc. 29 Fidelity Bank Plc

32 Wema Bank Plc.

TOTAL

8,562,351,813,547.56

TOTAL MARKET CAP

9,228,696,673,950.03

% OF MARKET CAP Annotation - MA* = Simple Moving Average

92.78%

Table 1 Market Statistics Mkt Indicators NSE All Share Index NSE Market Cap (N'Trillion) Thisday BGL 50 Index Thisday BGL 50 Market Cap (N'Trillion)

Open Close Change % 13-May-16 16-May-16 26,441.03 9.10

26,818.77 9.23

1.43% 1.43%

108.66 8.46

109.97 8.56

1.21% 1.21%

Table 3 Top 5 Gainers Stock

Open Close Change % 13-May-16 16-May-16

Oando Plc United Bank for Africa Plc Access Bank Plc. Cement Co. Of North.Nig. Plc Guinness Nig Plc

5.29 3.63 4.83 7.39 95.00

5.82 3.97 5.21 7.86 99.75

10.02% 9.37% 7.87% 6.36% 5.00%

Table 4 Top 5 Losers Stock

Open Close Change % 13-May-16 16-May-16

UACN Property Development Co. Limited AIICO Insurance Plc. Unilever Nigeria Plc. Sterling Bank Plc. Ecobank Transnational Incorporated

4.20

4.00

-4.76%

0.85 36.00 1.75 15.06

0.81 34.35 1.67 14.56

-4.71% -4.58% -4.57% -3.32%

Trading week begins bullish as ASI gains 1.43% Market pulse on the Nigerian Stock Exchange (NSE) today – Monday, May 16, 2016 ended on a positive note as the market closed green due to investors’ renewed optimism and confidence which led to increase in market activities. This was further highlighted by positive performances from all NSE Sub sectors; Banking, Insurance, Consumer Goods and Oil & Gas. Trading activities decreased in volume as 320.99 million shares worth N2.11 billion in 4,524 deals exchanged hands today. This is a decrease from the 567.59 million shares worth N3.58 billion in 5,523 deals carried out on Friday. Topping in volume terms was Access Bank Plc, UBA Plc and Transnational Corporation Of Nigeria Plc, while Zenith Bank Plc and GTB Plc ended trading as the most active stocks in value terms. The All Share Index (NSEASI) closed positive with a 1.43% (+377.74) increase to 26,818.77 from 26,441.03 the previous trading day. Market Capitalization appreciated in tandem to N9.23 trillion from N9.10 trillion of prior trading day. Similarly, the Thisday BGL 50 Index followed suit with an increase of 1.21% to close at 109.97 from 108.66 the previous trading day, while its market capitalization stood at N8.46 trillion from N8.27 trillion of the previous trading day. A total number of 27 stocks gained on the bourse today while 24stocks declined, leaving 44 stocks unchanged. Oando Plc emerged the toast of investors as it topped the Thisday BGL 50 Index gainers’ list with a gain of 10.02% to close at N5.82 per share. It was followed by United Bank for Africa Plc with a gain of 9.37% to close at N3.97 per share. Others on the gainers list include; Access Bank Plc, CCNN Plc and Guinness Nigeria Plc, while on the decliners’ list; UPDC Plc led with a loss of 4.76% to close at N4.00 per share. It was followed by AIICO Insurance Plc with a loss of 4.71% to close at N0.81 per share. Others on the losers list include; Unilever Nigeria Plc, Sterling Bank Plc and Ecobank Transnational Incorporated.

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

T H I S D AY • TUESDAY,MAY 17, 2016

MARKET NEWS

Profit Dips Again for Seplat, as Firm Records N4.5bn Loss in Q1 Goddy Egene and Eromosele Abiodun The Chief Executive Officer of Seplat Petroleum Development Company Plc, Mr. Austin Avuru has said the lower oil prices and downtime of third party operated infrastructure were responsible for the profit decline reported for 2015 financial year and a loss of N4.48 billion in the first quarter (Q1) of 2016.

up year-on-year, the significantly lower oil price realisation and downtime of third party operated infrastructure adversely impacted revenue, more than offsetting the increased contribution of the gas business.” According to him, in 2015 the company delivered on what was in its control, posting best-inclass reserves and production growth and taking our gas business across a transformational

Seplat’s profit after tax declined by 67 per cent in 2015 to N12.993 billion, from N40.481 billion in 2014. It posted a loss after tax of N4.48 billion for the Q1 of 2016, as against a PAT of N4.87 billion in 2014. Addressing stockbrokers and management of the Nigerian Stock Exchange (NSE) yesterday at the company’s “Facts behind the figures” presentation, Avuru said: “Although production was

threshold with further expansion still to come. He explained that the company acted quickly and decisively in response to the weak oil price environment, adjusting its work programme and cost structures. “Against a bleak industry backdrop, we remained profitable with a strong balance sheet underpinning us. Having started the year strongly, our 2016 full year production expectation has

been impacted by the current shut-in of the Forcados terminal. However, we are much better positioned to withstand such interruptions than in prior years,” he said. Avuru disclosed that the company’s gas business takes on additional importance by providing a continuous revenue stream that is de-linked from the oil price. “Our enlarged portfolio of-

fers us the scope for greater diversification. I would like to re-emphasise that our strong focus remains on protecting the business and managing value through effective cost reductions, optimising operations, deleveraging and strengthening the balance sheet. This will strategically position the company to take advantage of opportunities that will inevitably follow this current downturn,” he said.

DAILY STOCK MARKET REPORT T H E

N I G E R I A N

S T O C K

E X C H A N G E

Prices for Securities Traded as of 16/05/2016

Printed 16/05/2016 14:53:19.019

PRICES FOR PREMIUM BOARD SECURITIES

Price List (Equities)

FINANCIAL SERVICES S/N

BANKING

ZENITH INTERNATIONAL BANK PLC

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

471,889.30

15.03

2.24

293

16,519,643

293

16,519,643

BANKING S/N

OTHER FINANCIAL INSTITUTIONS

MARKET CAP(Nm)

PRICE

%CHANGE

133,889.44

3.73

0.81

TRADES

VOLUME

375

23,726,947

OTHER FINANCIAL INSTITUTIONS

375

23,726,947

FINANCIAL SERVICES

668

40,246,590

FBN HOLDINGS PLC

INDUSTRIAL GOODS S/N

BUILDING MATERIALS

DANGOTE CEMENT PLC

BUILDING MATERIALS INDUSTRIAL GOODS

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

2,847,468.79

167.10

1.27

370,655

703

40,617,245

PREMIUM BOARD TOTALS PRICES FOR MAIN BOARD SECURITIES

Price List (Equities)

CROP PRODUCTION

%CHANGE

TRADES

VOLUME

98,923

S/N

METALS

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

143

ALUMINIUM EXTRUSION IND. PLC.

144

ALUMINIUM MANUFACTURING COMPANY PLC

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

2,000.00

1.00

11,315,328

125

11,414,251

DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC.

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

2,779.65

1.05

52,141

JOHN HOLT PLC.

0.79

3.95

750,047

TRANSNATIONAL CORPORATION OF NIGERIA PLC

52,041.02

1.28

-0.78

149

34,756,182

U A C N PLC.

35,632.03

18.55

240,026

307.43

210

35,798,396

210

35,798,396

DIVERSIFIED INDUSTRIES CONGLOMERATES CONSTRUCTION/REAL ESTATE S/N

BUILDING CONSTRUCTION

S/N

BUILDING STRUCTURE/COMPLETION/OTHER

COSTAIN (W A) PLC.

G CAPPA PLC

PRICE

%CHANGE

INFRASTRUCTURE/HEAVY CONSTRUCTION

JULIUS BERGER NIG. PLC.

MARKET CAP(Nm)

PRICE

%CHANGE

ROADS NIG PLC. REAL ESTATE DEVELOPMENT

UACN PROPERTY DEVELOPMENT CO. LIMITED REAL ESTATE INVESTMENT TRUSTS (REITS)

UPDC REAL ESTATE INVESTMENT TRUST

VOLUME

57,420.00

43.50

1.16

1,902,946

165.00

6.60

4,948

1,907,894

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

6,875.00

4.00

-4.76

371,393

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

26,682.70

10.00

688

2,358,507

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

MARKET CAP(Nm) 23,097.01

PRICE

%CHANGE

2.95

TRADES 5

VOLUME 10,644

29,700

1,496,018

NIGERIAN BREW. PLC.

975,279.41

123.00

4.28

139

857,647

213

2,394,009

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

92,885.60

145.00

4,579

TRADES

VOLUME

BEVERAGES--BREWERS/DISTILLERS

BEVERAGES--NON-ALCOHOLIC MARKET CAP(Nm)

PRICE

%CHANGE

DANGOTE SUGAR REFINERY PLC

72,000.00

6.00

-0.83

938,000

FLOUR MILLS NIG. PLC.

60,357.46

23.00

-2.13

609,122

HONEYWELL FLOUR MILL PLC

13,164.13

1.66

-2.35

3,456,627

NASCON ALLIED INDUSTRIES PLC

22,255.28

8.40

3.70

1,236,369

TIGER BRANDED CONSUMER GOODS PLC

29,850.00

5.97

-0.33

1,381,719

UNION DICON SALT PLC.

3,608.07

13.20

2.40

212,200

MARKET CAP(Nm)

FOOD PRODUCTS

268

7,834,037

PRICE

%CHANGE

TRADES

VOLUME

32,380.20

17.24

106,060

572,297.81

722.00

50,719

111

156,779

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

FOOD PRODUCTS--DIVERSIFIED S/N

HOUSEHOLD DURABLES

VITAFOAM NIG PLC.

4,815.72

4.90

-9.59

HOUSEHOLD DURABLES PERSONAL/HOUSEHOLD PRODUCTS

P Z CUSSONS NIGERIA PLC.

UNILEVER NIGERIA PLC.

64,636

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

91,122.45

22.95

-0.22

179,992

129,956.23

34.35

-4.58

PERSONAL/HOUSEHOLD PRODUCTS CONSUMER GOODS

343,336

523,328

673

10,977,368

FINANCIAL SERVICES BANKING

ACCESS BANK PLC.

DIAMOND BANK PLC

ECOBANK TRANSNATIONAL INCORPORATED

FIDELITY BANK PLC

GUARANTY TRUST BANK PLC.

SKYE BANK PLC

STERLING BANK PLC.

UNION BANK NIG.PLC.

UNITED BANK FOR AFRICA PLC

UNITY BANK PLC

WEMA BANK PLC.

MARKET CAP(Nm)

%CHANGE

TRADES

150,714.73

5.21

7.87

366

48,608,852

46,552.38

2.01

-0.50

11,046,217

267,169.47

14.56

-3.32

708,149

37,377.49

1.29

0.78

119

29,832,667

565,078.64

19.20

2.51

341

21,009,209

16,656.36

PRICE

1.20

0.83

48,080.00

1.67

-4.57

82,646.74

4.88

-2.20

1,818,586

3.97

9.37

456

40,981,265

9,351.47

0.80

3.90

28,930.85

0.75

-1.32

2,095,150 174,269,523

2,741,974 VOLUME

TRADES

VOLUME

557.20

7.37

0 1

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

MARKET CAP(Nm)

PRICE

%CHANGE

3,131.35

0.50

MARKET CAP(Nm)

PRICE

%CHANGE

70,041.48

5.82

10.02

6,864,317

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

14,579.93

21.01

10.23

845,612

3,951.56

3.03

9.24

107

3,832,798

293,058.25

225.00

S/N

SUPPORT AND LOGISTICS

178

CAVERTON OFFSHORE SUPPORT GRP PLC

PRICES FOR ASEM SECURITIES CONSTRUCTION/REAL ESTATE S/N PROPERTY MANAGEMENT

180

MCNICHOLS PLC

S/N

PERSONAL/HOUSEHOLD PRODUCTS

S/N

MORTGAGE CARRIERS, BROKERS AND SERVICES

209,724

1,772,775

HEALTHCARE

1,772,775

TRADES

VOLUME

TRADES

VOLUME

0 VOLUME

ICT

MARKET CAP(Nm)

PRICE

%CHANGE

COMPUTERS AND PERIPHERALS MARKET CAP(Nm)

PRICE

%CHANGE

TRADES 0

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

1,130.76

10.47

3,000

ELECTRONIC COMMUNICATIONS SERVICES

IT SERVICES

3,000

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES 0

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

2,446.80

0.50

PROCESSING SYSTEMS

ICT

2.33

-4.90

5.05

4.99

VOLUME

1,083,716

96,000

1,179,716 VOLUME

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES 0

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

655.73

0.85

11,111

2,109.59

4.89

1,000

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES 0

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

TRADES

VOLUME

%CHANGE

12,111 VOLUME

108,299 368,092

476,391 VOLUME

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

5,528.34

1.65

9.27

13 13

190,911 190,911

2,087,721

3,820

280,377,932

Price List (Equities) MARKET CAP(Nm)

PRICE

%CHANGE

MARKET CAP(Nm)

PRICE

%CHANGE

415.80

1.40

1 1

3,608

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

3,608

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

3,608

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

S/N

ELECTRONIC AND ELECTRICAL PRODUCTS

MARKET CAP(Nm)

PRICE

%CHANGE

ELECTRONIC AND ELECTRICAL PRODUCTS

INDUSTRIAL GOODS

TRADES

VOLUME

OIL AND GAS S/N

PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS

S/N

FOOD/DRUG RETAILERS AND WHOLESALERS

MARKET CAP(Nm)

PRICE

%CHANGE

FOOD/DRUG RETAILERS AND WHOLESALERS

TRADES

VOLUME

EQUITIES TOTALS

PRICES FOR ETP SECURITIES

3,608

4,524

320,998,785

VOLUME

Price List (ETP) PRICE

%CHANGE

TRADES

LOTUS HALAL EQUITY ETF

533.82

8.61

2.26

NEWGOLD EXCHANGE TRADED FUND (ETF)

367.50

2,450.00

0.20

200

STANBIC IBTC ETF 30

824.18

72.00

VETIVA BANKING ETF

97.99

2.68

1.52

VETIVA CONSUMER GOODS ETF

77.36

6.66

1.68

VETIVA GRIFFIN 30 ETF

1,867.97

12.42

1.31

VETIVA INDUSTRIAL ETF

84.47

19.28

5.01

225

TRADES

VOLUME

S/N

COMPANY

MARKET CAP(Nm)

ETP TOTALS

443,944

%CHANGE

4,843.60 38,382.04

0 0

TRADES

15,447,438

PRICE

%CHANGE

102

MARKET CAP(Nm)

PRICE

INDUSTRIAL GOODS

ASEM TOTALS

COMPUTER BASED SYSTEMS

MARKET CAP(Nm)

0 0

SERVICES

2,700

228,592

0.50

VOLUME

PHARMACEUTICALS

VOLUME

4.95

15 1,605.81

TRADES

S/N

2,449,436

1.00

228,392

PHARMACEUTICALS

1.06

200

HEALTHCARE

VOLUME

8.47

TRADES

1.28

%CHANGE

3.99

254.49

-3.68

PRICE

2,352.09

%CHANGE

MARKET CAP(Nm)

0 MARKET CAP(Nm)

MORTGAGE CARRIERS, BROKERS AND SERVICES

3.70

TRADES

HEALTHCARE

2.88

%CHANGE

FINANCIAL SERVICES

PRICE

PERSONAL/HOUSEHOLD PRODUCTS

5,760.00

VOLUME

0 VOLUME

MARKET CAP(Nm)

CONSUMER GOODS

21,762.90

VOLUME

FINANCIAL SERVICES

MARKET CAP(Nm)

TRADES

0 VOLUME

FOOD PRODUCTS

%CHANGE

0 TRADES

VOLUME

PRICE

TRADES

%CHANGE

VOLUME

FOOD PRODUCTS

MARKET CAP(Nm)

%CHANGE

TRADES

S/N

TRADES

VOLUME

PRICE PRICE

OIL AND GAS

TRADES

MARKET CAP(Nm) MARKET CAP(Nm)

CONSUMER GOODS

SERVICES

%CHANGE

1,783 1,783 12,030,972

VOLUME

261,951

PRICE

7 7 432

261,951

MARKET CAP(Nm)

VOLUME

201,192,913

350.00

TRADES

2,000

197,205.60

CONSTRUCTION/REAL ESTATE

3,876,228

2,116,162

%CHANGE

13,062

PROPERTY MANAGEMENT

2,769,475

VOLUME

PRICE

SUPPORT AND LOGISTICS

22,785,211

TRADES

MARKET CAP(Nm)

SERVICES

TRADES

249

5,097,171

MAIN BOARD TOTALS

-3.39

318

%CHANGE

113,752

1.18

-0.51

198,277

PRICE

-1.66

2.94

0.48

2,698.23

-0.78

-9.74

4.15

MARKET CAP(Nm)

1.28

36.53 175.00

1.95

708,065

1.94

93,670

175.00

9,278.21

63,104.17

PRICE

14.24

VOLUME

59,416.32

6,740.51

25,347.47

VOLUME

1,236.30

0.50

11,640.00

67,701 67,701

TRADES

MARKET CAP(Nm)

TRANSPORT-RELATED SERVICES

6,691.37

142,400.00

AIRLINE SERVICES AND LOGISTICS PLC

4,167

%CHANGE

NIGERIAN AVIATION HANDLING COMPANY PLC

S/N

36,100

PRICE

0 0

%CHANGE

175

490,000

MARKET CAP(Nm)

0 0

176

1,569.55

VOLUME

3,000

INDUSTRIAL GOODS

DN MEYER PLC.

194 TRADES

9.84

TRANSPORT-RELATED SERVICES

1,038.80

128

PRICE

SPECIALTY

NEIMETH INTERNATIONAL PHARMACEUTICALS PLC

CEMENT CO. OF NORTH.NIG. PLC

SPECIALTY

MAY & BAKER NIGERIA PLC.

127

ROAD TRANSPORTATION

95,707

CAP PLC

S/N

126

S/N

0.50

BERGER PAINTS PLC

VOLUME

2,164.37

PRINTING/PUBLISHING

0.50

22.42

ASHAKA CEM PLC

TRADES

MARKET CAP(Nm)

ROAD TRANSPORTATION

0.50

26,811.55

BUILDING MATERIALS

UNIVERSITY PRESS PLC.

3,869.74

10,000

125

LEARN AFRICA PLC

171

2,759.15

1,013,400

124

PRINTING/PUBLISHING

169

376,950

S/N

MASS TELECOMMUNICATION INNOVATIONS NIGERIA PLC TELECOMMUNICATIONS SERVICES

MEDIA/ENTERTAINMENT

2.53

122

MEDIA/ENTERTAINMENT

0.81

PROCESSING SYSTEMS

S/N

4,277.21

2.25

TELECOMMUNICATIONS SERVICES

TRANSCORP HOTELS PLC

7,433

PHARMACEUTICALS

S/N

IKEJA HOTEL PLC

166

55,000

0.50

NCR (NIGERIA) PLC.

164

20,000

366.17

118

3.76

HOTELS/LODGING

3,375.00

ELECTRONIC COMMUNICATIONS SERVICES

HOTELS/LODGING

MEDICAL SUPPLIES

IT SERVICES

S/N

HEALTHCARE PROVIDERS

S/N

TANTALIZERS PLC

HEALTHCARE

COMPUTERS AND PERIPHERALS

162

FINANCIAL SERVICES

COMPUTER BASED SYSTEMS

1,565.08

HOSPITALITY

OTHER FINANCIAL INSTITUTIONS

111

%CHANGE

COURIER/FREIGHT/DELIVERY

0.51

MORTGAGE CARRIERS, BROKERS AND SERVICES

110

TRANS-NATIONWIDE EXPRESS PLC.

0.50

MICRO-FINANCE BANKS

GLAXO SMITHKLINE CONSUMER NIG. PLC.

RED STAR EXPRESS PLC

161

0.50

INSURANCE CARRIERS, BROKERS AND SERVICES

109

COURIER/FREIGHT/DELIVERY

160

1,753.04

WAPIC INSURANCE PLC

FIDSON HEALTHCARE PLC

S/N

3,070.00

EVANS MEDICAL PLC.

PRICE

AUTOMOBILE/AUTO PART RETAILERS

7,000.00

8,000.00

108

AUTOMOBILE/AUTO PART RETAILERS

348,474

UNIVERSAL INSURANCE COMPANY PLC

107

S/N

429,290

PRESTIGE ASSURANCE CO. PLC.

PHARMACEUTICALS

APPAREL RETAILERS

VOLUME

NIGER INSURANCE CO. PLC.

S/N

ADVERTISING

1,400,749

MEDICAL SUPPLIES

S/N

HEALTHCARE PROVIDERS

S/N

UNITED CAPITAL PLC

MARKET CAP(Nm)

ADVERTISING

N.E.M INSURANCE CO (NIG) PLC.

STANBIC IBTC HOLDINGS PLC

%CHANGE

APPAREL RETAILERS

TRADES

FCMB GROUP PLC.

6,645,900

34 1,675

SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD

2.83

LAW UNION AND ROCK INS. PLC.

1,217,475

156

4.57

GUINEA INSURANCE PLC.

103

PRICE

68,000

SERVICES

-4.71

EQUITY ASSURANCE PLC.

102

MARKET CAP(Nm)

EXPLORATION AND PRODUCTION

%CHANGE

CUSTODIAN AND ALLIED PLC

68,000 VOLUME

OIL AND GAS

1.09

AFRICA PRUDENTIAL REGISTRARS PLC

10,306,053

EXPLORATION AND PRODUCTION

2.29

OTHER FINANCIAL INSTITUTIONS

S/N

0.81

11,306.29

PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS

PRICE

CONTINENTAL REINSURANCE PLC

OANDO PLC

5,613.47

AXAMANSARD INSURANCE PLC

MORTGAGE CARRIERS, BROKERS AND SERVICES

148

24,045.00

AIICO INSURANCE PLC.

NPF MICROFINANCE BANK PLC

INTEGRATED OIL AND GAS SERVICES

MARKET CAP(Nm)

MICRO-FINANCE BANKS

108

VOLUME

144,029.72

BANKING INSURANCE CARRIERS, BROKERS AND SERVICES

S/N

TOTAL NIGERIA PLC.

TRADES

NESTLE NIGERIA PLC.

JAPAUL OIL & MARITIME SERVICES PLC

MRS OIL NIGERIA PLC.

%CHANGE

5.00

CADBURY NIGERIA PLC.

2 TRADES

VOLUME

ENERGY EQUIPMENT AND SERVICES

147

MOBIL OIL NIG PLC.

78,532

PRICE

0.85

FOOD PRODUCTS--DIVERSIFIED

%CHANGE

TRADES

S/N

155

2 MARKET CAP(Nm)

99.75

1.58 PRICE

ENERGY EQUIPMENT AND SERVICES

154

2,000 76,532

231.34

1,391.44 MARKET CAP(Nm)

153

1 1

150,212.35

S/N

VOLUME

FORTE OIL PLC.

-4.98

GUINNESS NIG PLC

FOOD PRODUCTS

TRADES

152

0.50

GOLDEN GUINEA BREW. PLC.

S/N

104,500 2,673,974

NATURAL RESOURCES

ETERNA PLC.

CHAMPION BREW. PLC.

BEVERAGES--NON-ALCOHOLIC

1,243,814

OIL AND GAS

151

7-UP BOTTLING COMP. PLC.

VOLUME

PAPER/FOREST PRODUCTS

TRADES

S/N

150

AUTOMOBILES/AUTO PARTS BEVERAGES--BREWERS/DISTILLERS

%CHANGE

107

192

PAPER/FOREST PRODUCTS

CONSUMER GOODS

S/N

PRICE

MINING SERVICES

REAL ESTATE INVESTMENT TRUSTS (REITS)

AUTOMOBILES/AUTO PARTS

MINING SERVICES

PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS CONOIL PLC

13.74

CONSTRUCTION/REAL ESTATE S/N

S/N

542.19

REAL ESTATE DEVELOPMENT S/N

MARKET CAP(Nm)

METALS

VOLUME

1,717.50

INFRASTRUCTURE/HEAVY CONSTRUCTION S/N

CHEMICALS

TRADES

BUILDING STRUCTURE/COMPLETION/OTHER S/N

INTEGRATED OIL AND GAS SERVICES MARKET CAP(Nm)

BUILDING CONSTRUCTION

S/N

B.O.C. GASES PLC.

25,186

S/N

142

73,737

S/N

CHEMICALS

S/N

TOOLS AND MACHINERY

S/N

AGRICULTURE

S/N

PACKAGING/CONTAINERS

35.02

LIVESTOCK/ANIMAL SPECIALTIES

S/N

CUTIX PLC.

S/N

29.01

CONGLOMERATES

136

35,020.00

LIVESTOCK FEEDS PLC.

3.93

2.06 10.39

ELECTRONIC AND ELECTRICAL PRODUCTS

27,672.93

LIVESTOCK/ANIMAL SPECIALTIES

74.00

824.00 1,277.97

PACKAGING/CONTAINERS

PRESCO PLC

S/N

ELECTRONIC AND ELECTRICAL PRODUCTS

OKOMU OIL PALM PLC.

S/N

FISHING/HUNTING/TRAPPING

337,062.73

INDUSTRIAL GOODS PRICE

FISHING/HUNTING/TRAPPING

S/N

PREMIER PAINTS PLC.

S/N

PORTLAND PAINTS & PRODUCTS NIGERIA PLC

134

NATURAL RESOURCES MARKET CAP(Nm)

CROP PRODUCTION

LAFARGE AFRICA PLC.

133

TOOLS AND MACHINERY

AGRICULTURE S/N

131

BUILDING MATERIALS

MARKET CAP(Nm)

PRICE

%CHANGE

TRADES

VOLUME

42,728.77

19.08

-1.70

248,774

2,318.59

8.00

-1.36

82,636

28,000.00

40.00

3.90

363,415

9,877.49

7.86

6.36

628,245

227.50

0.70

2,500

PRICES FOR DEBT SECURITIES S/N

COMPANY

BONDS TOTALS

Price List (BONDS) MARKET CAP(Nm)

PRICE

%CHANGE

T H I S D AY TUESDAY MAY 17, 2016

TUESDAY MAY 17, 2016 T H I S D AY

LEGAL PRACTITIONERS’ PRIVILEGES COMMITTEE SUPREME COURT OF NIGERIA THREE ARMS COMPLEX, CENTRAL BUSINESS DISTRICT P.M.B. 308, ABUJA Tel: 09-2344762

PUBLIC NOTICE/PRESS RELEASE We, the Legal Practitioners’ Privileges Committee hereby give formal notice of the names of candidates that have been cleared to proceed to the next stage of the Legal Practitioners’ Privileges Committee appointment exercise, after the first and second filtration process conducted by the Committee, preparatory to the conferment of the award of the rank of Senior Advocate of Nigeria for the year 2016. 2. The names of qualified candidates read as follows: i. JOHN OLUSEGUN ODUBELA, ESQ. ii. CHIEF OLUBOWALE TAIWO, ESQ. iii. RICHARD AYODELE AKINTUNDE, ESQ. iv. CHIESONU IGBOJAMUIKE OKPOKO, ESQ. v. CHIEF IKENNA VICTOR EGBUNA, ESQ. vi. ADEYEMI KAMALDEEN AJIBADE, ESQ. vii. FRED KOKUMO AGBAJE, ESQ. viii. SYLVESTER EMENIKE ELEMA, ESQ. ix. PROF. WAHAB OLASUPO EGBEWOLE, ESQ. x. ANDREW CHUKWUEMEKA IGBOEKWE, ESQ. xi. ABDULHAKEEM UTHMAN MUSTAPHA, ESQ. xii. OLASENI ABIODUN ADIO, ESQ. xiii. CHIEF KALU IKWUONWU UMEH, ESQ. xiv. ADEWALE SUNDAY ADESOKAN, ESQ. xv. GBOYEGA SANMI OYEWOLE, ESQ. xvi. EDWARD GYANG PWAJOK, ESQ. xvii. WOLE SEUN AGUNBIADE, ESQ. xviii. ADEYINKA PATRICK OLUMIDE-FUSIKA, ESQ. xix. OLANIYI OLOPADE MARUPH, ESQ. xx. OLATUBOSUN OLA OLANIPEKUN, ESQ. xxi. OYETOLA OSHOBI, ESQ. xxii. EKEMEJERO OHWOVORIOLE, ESQ. xxiii. EMEKA PETER OKPOKO, ESQ. xxiv. OYESOJI GBOLAHAN OYELEKE, ESQ. xxv. AKEEM ADEDEJI AGBAJE, ESQ. xxvi. OLUSOLA OLADIMEJI OJUTALAYO, ESQ. xxvii. CHIBUIKE ADINDU NWANNE NWOKEUKWU, ESQ. xxviii. JOHN MOFOLORUNSHO MUSTAPHA MAJIYAGBE, ESQ.

xxix. ELISHA YAKUBU KURAH, ESQ. xxx. NNAMONSO UDO EKANEM, ESQ. xxxi. ADEKOLA ADEYEYE OLAWOYE, ESQ. xxxii. JAMES ONYEANWUNA NJEZE IKEYI, ESQ. xxxiii. DR. VALERIE-JANETTE AZINGE, ESQ. xxxiv. CHIEF OLUSEGUN TAKINTAYO AKINBIYI, ESQ. xxxv. WILCOX ACHACE ABERETON, ESQ. xxxvi. MBA EKPEZU UKWENI, ESQ. xxxvii. ADEWUNMI ADEDEJI OGUNSANYA, ESQ. xxxviii. MICHAEL FOLORUNSO LANA, ESQ. xxxix. MICHAEL ABAYOMI BISADE-ALIYU, ESQ. xl. OLASHENI IBIWOYE, ESQ. xli. DANIEL CHUKWUDI ENWELUM, ESQ. xlii. METALUBI OJO ADEBAYO, ESQ. xliii. OLUSEGUN OYEDIDRAN FOWOWE, ESQ. xliv. CHIEF OLUSOLA ALEX OKE, ESQ. xlv. CHIEF ABDUL OLAJIDE AJANA, ESQ. xlvi. BERT CHUKWUNETA IGWILO, ESQ. xlvii. OLAYODE OLUMIDE DELANO, ESQ. xlviii. EDMOND CHINONYE OBIAGWU, ESQ. xlix. KEHINDE OLAMIDE OGUNWUMIJU, ESQ. l. FESTUS EGWAREWA KEYAMO, ESQ. 3. The General Public is at liberty to comment on the integrity, reputation and competence of any of the above candidates. 4. However, any complaint(s) presented to the Legal Practitioners’ Privileges Committee must be accompanied with a verifying affidavit/document deposed to before a Court of Record in Nigeria, which must reach the undersigned on or before the 2nd of June, 2016. 5. Furthermore, in compliance to the above, twenty copies of such comments or complaints must be submitted at the Secretariat of the Legal Practitioners’ Privileges Committee on or before the prescribed date.

Ahmed Gambo Saleh Chief Registrar of Supreme Court/ Secretary, Legal Practitioners’ Privileges Committee

T H I S D AY • TUESDAY, MAY 17, 2016

TUESDAYSPORTS

Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com

U-20 NATIONS CUP QUALIFIER

Doctor Places Osimhen on Painkillers Olawale Ajimotokan in Abuja Nigeria Under-20 medical team has continued to sweat on the fitness of Victor Osimhen who had been placed on painkillers ahead of this weekend’s Africa U20 Cup of Nations qualifying encounter against Burundi in Bujumbura. The Wolfsburg striker gave team officials sobering concerns, when he injured his shoulder when the Flying Eagles engaged the Olympic team in a friendly match in Abuja last Friday. Though the Under-20 team doctor promptly tended to the shoulder joint injury, the fitness of the striker has continued to bother Coach Emmanuel Amuneke as Nigeria bids to defend the African title in Zambia

next year. Flying Eagles camp sources disclosed last night that the medical team has placed Osimhen on a regime of painkillers to mitigate the pains to the affected shoulder and ensure that he features in the match against the East African side. The player, who holds the FIFA U-17 World Cup goal record, is very instrumental to Amuneke’s tactics which makes him the links-man in a three -prong attacking formation made up of Funsho Bamgboye and Samuel Chukwueze. The team which holds the African record of seven wins in U20 championships, will travel to Bujumbura tomorrow for the first of the two- legged encounters.

MFM Dispatches Tornadoes in Rescheduled Clash Nigeria Professional Football League (NPFL) newcomers, MFM FC, continued their fine run at home as they ran out 2-0 winners over Niger Tornadoes yesterday. The match was earlier billed to take place on Sunday at the Agege Stadium in Lagos but was called off due to heavy rainfall and a waterlogged pitch. MFM Head Coach, Fidelis Ilechukwu, named a start-list without the pair of Ifeanyi Ifeanyi and Musa Newman, who dropped to the bench which meant former Heartland man, Isah Akor led the line with Stephen Odey and Sikiru Olatunbosun playing off him. In the other dugout, Coach Abdullahi Biffo, lined up his best performers in recent match-weeks in Ismaila Gata, Bolaji Adeyemo, Gabriel Wassa, Samuel Tswanya and Wilfred Ammeh. The opening exchanges were cagey as both sides opted to take pops from range. Attempts by Tswanya and Odey from range were always not going to trouble the goalkeepers in the first quarter of the hour. Akor also tried to shoot from distance but missed target. Twenty-six minutes into the contest, the first goal was scored out of nothing as Tornadoes defender Abiodun Adebayo turned the ball into his net with a flick that left his goalkeeping teammate, Omoregie Nobas, with no chance. At the other end, as much as Gata tried to influence things for Tornadoes, he was always confronted by the organised backline of Austine Opara, Bashiru Monsuru, Abisoye Olawale and Kenneth Elom. On one of such rare occasions just before the break, Gata looked to attempt to force the issue but the MFM defence mopped well. Two minutes into added time of the first half, Odey doubled

MFM’s lead with the last kick of the first 45 minutes. Biffo, in the restart, sent on Usman Bashir and Bala Saidu, and it was the former, who produced a near-scoring opportunity when his effort only turned out to be a sidenetting. MFM has now won seven matches in the Nigerian topflight this season, and has managed four successive clean sheets at home. It climbed to eight place with 26 points. Tornadoes are in 16th place with 20 points and are yet to win a point on the road.

Osimhen… doctors are working round the clock to get him fit for the trip to Bujumbura

NPFL… NPFL… NPFL…

Plateau Utd FC Sacks Baraje from Technical Adviser Post Seriki Adinoyi in Jos The management of Plateau United Football Club of Jos yesterday asked its Technical Adviser, Zakary Baraje, ‘to step aside.’ A statement yesterday in Jos signed by the Media Officer of the club, Mr Albert Dakup, noted that the decision became

necessary in view of the dwindling performance of the team. It added that as “as an ambitious team determined to make a good impression in the NPFL, the recent performance of the team is unacceptable “. “The club observed a communication gap between the technical adviser and his assistants and even the players

which is affecting the success of the team.” The management also lamented that despite the free hand given to the technical adviser, he has not been able to justify the huge confidence reposed on him “by turning the fortunes of the team around to compete favorably with its counterparts in the top flight. ” According to the statement,

former captain of the team, Victor Wickadason, who only returned to the main team recently after several years in the feeder team is to take over as head of the technical crew. “Wickadason is to be assisted by Audu Isa Pele, Moris Longmiap and Tunde Adedara as goal keeper trainer,” the statement concluded.

Iheanacho Sad over Mikel’s Brother Disowns Suit Pellegrini’s Exit from Etihad against Ifeanyi Ubah Heartland Goalkeeper, Ebele Obi has dissociated himself from the purported lawsuit filed against FC IfeanyiUbah Proprietor, Dr Ifeanyi Patrick Obi, instituted by the Nigerian Association of Nigerian Footballers (NANF). The Anambra-born goalkeeper who is elder brother of Nigeria and Chelsea midfielder, John Mikel Obi, said yesterday that he and his family had decided to move on from the ugly incident that happened last month when Heartland played the Nnewi-based club-side in a Nigeria Professional Football League game. “Inasmuch as I detest the actions of Ifeanyi Ubah and the thugs he sent to beat me up, I and my family have decided to painfully move on. “It was a sad episode in my life but after a family meeting, I was advised by my family not to press charges,” observed

the Heartland first choice safe hands. Ebele said he was excited to be back after his suspension and promises to give the Naze Millionaires the best of his services in the remaining matches of the NPFL season. Meanwhile, the General Manager of Heartland FC, Mr Oscar Okeke has congratulated the team on its feat in Kano, charging the players to take other teams seriously like they did against the top teams in the league “The boys put up a spirited fight in Kano and Umuahia but they seemed to take others for granted. “If my boys prosecute other games with the seriousness exhibited against Enyimba, Kano Pillars and MFM FC, then we will be among the Top Five teams of the NPFL 2015/2016 season,” concludes the Heartland chief.

Manchester City striker Kelechi Iheanacho has said that he is “not happy” to see manager Manuel Pellegrini leave the club this summer. Pellegrini took charge of his final game in charge of City on Sunday, a 1-1 draw against Swansea City which all but assured a top-four finish. Pep Guardiola will officially take up the reins on July 1 and is expected to oversee an overhaul of the current squad, with a handful of players set to be shown the door. Iheanacho, 19, will be safe from the cull having demonstrated his promise with 14 goals in his maiden campaign, but he insisted that he will miss working with Pellegrini, who took him on City’s pre-season tours in 2014 and 2015 and handed him a prominent role in the squad this season. “I am not quite happy that he is going, but this is the football world and anything happens,” he told reporters. “I just wish him

good luck wherever he goes, and will be praying for him and hope to see in future. “He is a special manager for me and has done great things in my life – he brought me into the first team, introducing me to work with the squad right from pre-season last year. “I am happy for him, for everything he achieved with this team, and happy that he made me a part of it. I won’t forget him, no matter where he goes. “He is popular with the players – he makes people happy when they work with him because he likes to play football.” Iheanacho only received his British work permit last February, bringing an end to a tumultuous period in his fledgling career. He had been stationed in Barcelona and the United States by City as they worked on finalising his paperwork, meaning that although he first played for the club in the summer of 2014, he had to wait over a year for his

competitive debut. But even after finally seizing his chance in the first-team, the Nigerian is hopeful of getting even better next season. “I have been playing and scoring goals this season, so it has been a huge difference to what happened to me last season. “But next season I hope to be much better, and score more goals to help the team succeed in all the competitions.” Meanwhile, his father, James is optimistic that the Super Eagles forward will still shine at the club under incoming manager Pep Guardiola. There have been some concerns whether Kelechi will get the same opportunities under Guardiola as he got under Manuel Pellegrini this season, but his father told AfricanFootball.com his boy will feature prominently for the former Barcelona boss. “Kelechi will definitely play under Guardiola and I am sure of that,” James Iheanacho said.

Tuesday May 17, 2016

UT H

& RE A S O

Price: N250

MISSILE ANED to Legacy Debtors

“Our position is that this indebtedness is killing us; it is seriously impacting negatively on the entire value chain in the power sector equation. Don’t forget that only 25 per cent of this debt actually belongs to Discos, the rest are for other companies in the value chain – generating companies, the bulk trader, gas suppliers, etc. So if you don’t pay and you accumulate debt, what you are looking at is a possible total collapse of the entire power sector.” The Association of Nigerian Electricity Distributors (ANED) protesting the huge unpaid electricity bills by legacy debtors.

BENMURRAYBRUCE MAKING COMMON SENSE

ben.murraybruce@thisdaylive.com

Taming a Fantastically Corrupt Fuel Subsidy Regime

ust last week, the British Prime Minister David Cameron was caught in a Freudian slip calling Nigeria a ‘fantastically corrupt’ nation when he thought cameras where not watching and listening. I disagree with Prime Minister Cameron. There is corruption in Nigeria just like in many nations. To single Nigeria out when recent events show that other nations are equally guilty is a tad hypocritical. The Panama Papers for one disprove Prime Minister Cameron’s comments. Ironically, his own father is mentioned in those records. The Panama Papers exposed the depth of corruption that goes on in many nations, Nigeria included, but Nigeria is making efforts to tackle corruption and it is most frustrating when Western nations provide safe haven to those individuals who stash proceeds of corruption in their banks. I quite agree with President Muhammadu Buhari when he challenged the British Government to return looted funds back to Nigeria. It is not enough to condemn Nigeria. If looters of public funds are corrupt then the receivers of looted funds are also corrupt and quite clearly, the UK is a receiver of looted funds. Now in the midst of this debate about who is or is not fantastically

Buhari corrupt, the federal government has increased the price of petrol. I actually believe that the Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, took the right decision for our economy. But I believe that the federal government should have taken steps to cushion the effect of this policy on

the masses before increasing the price of petrol. Now even before the increase in fuel price, the cost of staple foods like tomato, rice and oil had increased astronomically. How does the federal government expect citizens to cope with this new development? Before the Goodluck Jonathan administration increased the price of petrol in 2012, they first increased the minimum wage and the monthly allowance of members of the National Youth Service Corps (NYSC). I appeal to President Buhari to consider the immense suffering in Nigeria and increase the minimum wage to help Nigerian workers cope with the increased fuel price. It is either President Buhari increases the minimum wage to help the Nigerian masses cope with increased fuel price or the federal government must restructure our tax policies so that minimum wage earners pay no income tax. We must remember that not so long ago, the National Electricity Regulatory Commission (NERC) increased electricity tariffs nationwide. How many increases can the masses take without breaking their backs? President Buhari, as a father to the nation, must think about the sufferings of his people and have compassion on the Nigerian masses. Give them a break. Remember they also gave

you a break in 2015 by voting for you as their president. But then again, we must remember that what the federal government has done is not really the removal of subsidy. What they have done is simply to increase the price of petrol. They have not deregulated because if there is deregulation there would not be a cap on the price of petrol, but now they have capped the price of the product at N145 per litre. What this means in essence is that the price is likely to go up depending on whether crude oil rises or falls in the international market. So for instance, if crude oil rises from the current $42 to above $60 and the federal government and the oil majors are no longer able to sell petrol profitably at N145 per litre then they would have no choice but to increase the price of the product or the government will have to pay the difference, which will mean the return of subsidy. So, how can Nigeria permanently solve this problem? On the 23rd of July last year, I published the piece below, which addresses in detail how the federal government can solve this problem once and for all. Please let us all reconsider my idea, which I offer freely and without strings for love for my country Nigeria.

Tame Fuel Subsidy or it Will Tame Nigeria

f the whole idea of fuel subsidy is to pass on benefits to the poor, then we must all agree that it is not working. The benefits are going to importers of fuel, oil majors and upper and middle class Nigerians who can afford to live in the most urbanised areas of Nigeria which are the only places where fuel is still sold at the official rate. Our people in the North-east and the Niger Delta have been buying petrol at black market prices for decades. Of what use is fuel subsidy to them? Is this not part of the reason why they sometimes feel alienated from Nigeria? In the most recent data released by the International Monetary Fund (IMF), the Democratic Republic of Congo is rated the poorest nation in the world with a per capita income of less than $400. But the truth is that if you isolate the North-east of Nigeria from the rest of Nigeria and you compare their per capita income to that of the Congo DRC, it will be clear that the North-east of Nigeria is the poorest part of planet earth. Yet, this poorest part of Nigeria is not really benefitting from what is meant to benefit them. And they are not alone. In the Niger Delta where I am from, particularly in Bayelsa which is my state, I have never bought fuel at the official rate. Fuel in the North-east and the Niger Delta goes for N300 per litre while fuel in Ikoyi in Lagos sells for N87! Now tell me, who are we subsidising? The rich or the poor? You campaign in poetry but govern in prose. The time for poetry is gone. Now is a time for prose and the federal government must be creative enough to come up with ideas for passing on the benefits that the fuel subsidy is supposed to pass on to the poor but is not. The federal government must also search out ideas on how Nigeria can generate more non

oil income. As a patriotic duty, I will offer a few ideas on how I think Nigeria can make the best use of her resources instead of spending it on an inefficient and corrupt subsidy that does not get to its intended recipients. In my opinion, the federal government should stop subsidising fuel and instead subsidise public transportation. Now, how would this work? The federal government must gather all the providers of mass transport, be it the National Union of Road Transport Workers (NURTW) or any of its affiliates and register all of them in a central database. Next, the federal government must find out what the unit cost of transporting an individual passenger costs. Then the federal government should sign an agreement that it would pay the increased cost of a unit of transport that would ensue when fuel subsidy is abolished and the oil market is deregulated. To ensure fidelity and prevent fraud, each individual provider (be it a bus, a boat or any other transport type that uses premium motor spirit) must covenant to buy their fuel exclusively from Nigerian National Petroleum Corporation (NNPC) petrol stations (or a petrol station chain that can be monitored by the federal government) and also agree to have a fuel monitor installed into their vehicles. The monitor will report the amount of petrol consumed by each unit of transportation and at the end of the month, the federal government, through the Petroleum Products Pricing Regulatory Agency (PPPRA) would reimburse the provider the excess money paid for fuel as a result of the deregulation and the lifting of the subsidy on premium motor spirit. In this manner, the federal government will be able to deregulate the downstream sector of the oil and gas industry while at the same time

providing relief for the poorest Nigerians from the effect of an increase in the price of fuel. Moreover, the federal government can spend a fraction of the trillions of naira we are currently spending on fuel subsidy annually on social services that will have a direct impact on the well being of the poorest of the poor and boost out Human Development Index. For instance, Nigeria can reduce infant and maternal mortality rates, by initiating a Women, Infants and Children (WIC) Intervention Programme in all the states of the federation. The programme could be an initiative of the federal government through the Ministry of Health and would involve giving free pre and ante natal supplements to pregnant and nursing mothers and one infant per family up to the age of five. In addition to receiving these vitamin supplements, each recipient should be given a crate of eggs each week and at least one tin of evaporated milk per day on a weekly, biweekly or monthly basis. Doing so would have a direct impact on the health of the most vulnerable subsection of our population, women, infants and children up to the age of five. Desperate times call for desperate remedies and in case we have not noticed, these are desperate times. Oil is fast losing its value. A world without oil is a reality. Nigeria must start thinking of other ways of growing her economy that does not depend on oil. If we really want to build our economy, we may want to take a cue from what India and China did. The economies of both countries have been built up to be amongst the world’s leading economies largely through the efforts of their Diaspora citizens who returned home after having established themselves in Europe and the Americas.

In the 80s, Nigeria suffered from a massive brain drain when our most educated intellectuals left the country for greener pastures after conditions in the nation’s Ivory Towers proved too oppressive for them. We can use a fraction of what we are spending on the fuel subsidy to facilitate a brain gain. All over the world, Nigerians in the Diaspora are having children who are enrolled in some of the best schools world wide. Many of these universities have internship programmes that allow students intern anywhere in the world. I propose that the federal government should seize the initiative and initiate a bring-back-thebrain scheme whereby the Federal Government of Nigeria through her MDAs (perhaps the Ministry of Education, the National Universities Commission, NUC, or the Industrial Training Fund, ITF) actively solicits for children of Nigerians in the Diaspora to return to Nigeria to do their internship. This initiative may be promoted by roadshows in the major cities of the world, via Nigerian tribal or ethnic organisations in the Diaspora. Our embassies could be mandated to dedicate some staff to tour universities in their host countries in order to sell this idea to the students directly. The federal government may encourage those wishing to participate by offering to pay their return tickets and instruct that all MDAs that participate in the scheme should pay the accommodation costs of these students during their internship. The expected result of this scheme is a net inflow of skilled labour into Nigeria to drive our developmental effort. •Senator Murray Bruce is the senator representing Bayelsa East in the National Assembly and is Chairman of the Silverbird Group NOTE: The rest of this article continues in the online edition of THISDAY: www.thisdaylive.com

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